Abbott India Ltd
Directors Reports
AND MANAGEMENT DISCUSSION AND ANALYSIS
TO THE MEMBERS
Your Directors have pleasure in presenting their Seventy- ninth Report and the Audited
Financial Statements of the Company for the financial year 2022-23.
FINANCIAL HIGHLIGHTS
Requirements) Regulations, 2015, as amended from time to time (“SEBI Listing
Regulations”) is available on the Company's website at https://www.abbott.co.in/investor-
relations.html. The said Policy lays down various factors which are considered by the
Board while recommending the dividend for the year.
(RS. in Crores)
Particulars |
For the year ended March 31, 2023 |
For the year ended March 31,2022 |
Revenue from Operations |
5,348.73 |
4,913.32 |
Other Income |
154.15 |
83.16 |
Total Income |
5,502.88 |
4,996.48 |
Profit Before Tax |
1,273.82 |
1,079.73 |
Profit After Tax |
949.41 |
798.70 |
Retained Earnings and Other Comprehensive Income (OCI) |
|
|
Balance brought forward |
2,151.57 |
2,014.18 |
Profit After Tax |
949.41 |
798.70 |
OCI arising from remeasurement of employee benefits |
3.62 |
2.92 |
Dividend - FY 2021-22 |
(584.36) |
- |
Dividend - FY 2020-21 |
- |
(584.36) |
Transfer to Reserves |
(94.94) |
(79.87) |
Balance carried forward |
2,425.30 |
2,151.57 |
DIVIDEND
Your Directors have recommended a final dividend of ? 180/- and special dividend of ?
145/- per share for the year ended March 31, 2023 on 2,12,49,302 fully paid-up Equity
Shares of ? 10/- each for approval of the shareholders at the forthcoming Annual General
Meeting. The said dividend, if declared will absorb a sum of? 690.60 Crores.
In terms of the provisions of the Income-tax Act, 1961, dividends paid or distributed
by the Company shall be taxable in the hands ofthe shareholders. Your Company shall,
accordingly, make the payment of the proposed dividend for the year ended March 31,2023
after deduction of tax at source.
DIVIDEND DISTRIBUTION POLICY
Dividend Distribution Policy adopted by the Company in terms of requirements under the
Securities and Exchange Board of India (Listing Obligations and Disclosure
MATERIAL CHANGES AFFECTING THE COMPANY
There have been no material changes and commitments affecting the financial position of
the Company between the end of the financial year and date of this report. There has been
no change in the nature of business of the Company.
MANAGEMENT DISCUSSION AND ANALYSIS ECONOMIC OUTLOOK
In the last decade, India has been one of the fastest growing economies, and the GDP is
expected to grow at 6.4% in 2023-24 as reported by Asian Development Bank. The
acceleration in GDP growth can be attributed to multiple reasons, including favorable
demographics, strong investment capital flows and technological efficiency and
productivity gains.
INDUSTRY REVIEW
As per the India Brand Equity Foundation, the Indian pharmaceutical industry is
currently ranked third in pharmaceutical production by volume after evolving over time
into a thriving industry growing at a CAGR of 9.43% for the past nine years. Generic
drugs, over-the-counter medications, bulk drugs, vaccines, contract research and
manufacturing, biosimilars and biologies are some of the major segments of the Indian
pharma industry. India also has the greatest number of pharmaceutical manufacturing
facilities that are in compliance with the US Food and Drug Administration (USFDA) and has
500 Active Pharmaceutical Ingredient (API) producers that contribute to around 8% of the
worldwide API market. The domestic pharmaceutical industry includes a network of
approximately 3,000 drug companies and 10,500 manufacturing units.
Indian drugs are exported to more than 200 countries in the world. As per the India
Brand Equity Foundation, India is the largest provider of generic drugs globally and is
known for its affordable vaccines and generic medications. Indian pharmaceutical sector
supplies over 50% of global demand for various vaccines, 40% of generic demand in the US
and 25% of all medicine in the UK.
As the world's pharmacy, India's pharmaceutical exports have increased by 138%, rising
from ? 37,987.68 Crores in 2013-14 to ? 90,324.23 Crores in 2021-22.
As per IQVIA, India's domestic pharmaceuticals market (IPM) is estimated at ? 2,21,922
Crores in 2023 with growth of 9.5% vs growth of 6.6% in 2022. Branded generics dominated
the domestic prescription pharmaceutical market, accounting for around 80% of sales by
value as per IQVIA. While there are continuous efforts to raise the regulatory bar, a
company's reputation and brands are still widely regarded as indicators of quality. The
market is expected to grow at a CAGR of 8.8% between 2022-2027 reaching ? 3,08,329 Crores
by 2027, driven by economic growth, increasing penetration of health insurance and
increased private sector investment.
OPPORTUNITIES AND CHALLENGES
Factors which impact Industry and Company include:
• Co-marketing Agreements : Promotional tie-ups between foreign companies and
local partners are an established feature of the market, but co-marketing deals for new
drugs have been increasingly introduced over the last few years. For multinationals, these
agreements enable more widespread detailing of key brands, while for local manufacturers,
which have seen lesser access to new drugs, these agreements offer opportunities to
broaden existing portfolios. Partnerships between Indian companies and MNCs are expected
to continue to grow due to benefits provided to both parties, as well as the opportunity
to make relevant patient impact.
• E-pharmacy and Pharmacy Chains : The retail pharmacy sector is estimated to
comprise of at least 6,00,000 licensed outlets. Most are small, independent businesses,
but pharmacy chains and e-pharmacies are a growing force. Pharmacy chains have expanded
aggressively with MedPlus at 3,000+ stores and Apollo at 4,000 stores. In 2022, the market
for online pharmacies was worth ? 25.50 billion. It is anticipated to expand at a compound
annual growth rate (CAGR) of 22.20% from 2022 to 2027. This will increase access to
organized pharmacies across the country and consequently drive increased demand and
healthy competition.
• Ayushman Bharat : The central government's health insurance scheme, Ayushman
Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), is expected to drive increased public
health insurance coverage. In January 2023, as per Economic Survey 2022-23, the scheme
covered 22 crore beneficiaries with the provision of hospital care to an annual value of
5,00,000 per family. There are over 1.54 lakh Health and Wellness Centers (HWCs) across
India, with over 135 crores footfall at
these HWCs. Further, the HWCs have also enabled over 87 crore screenings of
non-communicable diseases. More than 31 crore health accounts have been created under the
Ayushman Bharat Digital Mission, and over 7.5 crore health records have been linked. While
coverage under the scheme itself is limited to hospital inpatient care, it will allow a
growing number of patients to gain access to healthcare, increasing rates of diagnosis and
raising disease awareness. This will further benefit private clinics and the retail
pharmacy sector.
• Price Controls and Regulations : As per India Brand Equity Foundation, the
National Pharmaceutical Pricing Authority (NPPA) had brought as many as 384 formulations
under price control in 2022 and has now additionally fixed the ceiling price of 93
essential formulations including pain killers and drugs used to treat cancer, rheumatoid
arthritis, heart disease, bacterial infections, pneumonia, tuberculosis, thyroid, epilepsy
and urinary tract infections. Additional downward pressure could come from Trade Margin
Rationalization to more non-scheduled drugs used for the long-term treatment of chronic
conditions.
• OTC Drug Regulations : The OTC sector in India has been growing at a healthy
rate driven by increased access to information and an evolving, and more informed
consumer. The Drugs Technical Advisory Board (DTAB) approved a new OTC regulation policy
in January 2022 to create an explicit OTC category and remove ambiguity from the current
OTC definition. Post acceptance of the proposed amendment to the Drugs and Cosmetics Act,
up to 100 drugs currently dispensed under a prescription can be shifted to the OTC
category.
• Uniform Code of Pharmaceuticals Marketing Practices (UCPMP) : UCPMP, while
currently voluntary, could b ecome mandatory in the future. A mandatory code would require
ethical marketing practices to be followed by all Companies. Given that the Company has a
strong compliance process in place, it would be well positioned under a strict enforcement
of UCPMP.
REVIEW OF OPERATIONS
The Company has consistently grown above market* in the last several years with a clear
focus on providing scientific, trusted products, backed by expert clinical support. The
Company's position has been enhanced through consistent scientific engagement with
doctors, increasing geographic penetration, strong customer insights, innovative products
and a comprehensive pill plus service approach.
Abbott India Limited
Particulars |
|
2022 |
|
Debtors Turnover (Days) |
20.6 |
20.0 |
3.0% |
Inventory Turnover (Days) |
82.0 |
96.6 |
(15.1)% |
Interest Coverage Ratio* |
80.7 |
57.5 |
40.3% |
Current Ratio |
2.5 |
3.2 |
(21.9%) |
Debt Equity Ratio |
0.1 |
0.1 |
- |
Operating Profit Margin (%) |
24.1 |
22.3 |
8.1% |
Net Profit Margin (%) |
17.8 |
16.3 |
9.2% |
Return on Net Worth (%) |
31.6 |
29.5 |
7.3% |
interest Coverage Ratio has increased because of accounting impact of Ind AS
116-Leases.
There is no significant change except Interest coverage ratio (i.e., change of 25% or
more as compared to the immediately previous financial year) in the Key Financial Ratios.
Detailed explanation of Ratios:
(i) Debtors Turnover (Days)
The above ratio is used to quantify a Company's effectiveness in collecting its
receivables or money owed by customers. The ratio shows how well a Company uses and
manages the credit it extends to customers. It is calculated by dividing Revenue from
Operations by average trade receivables.
(ii) Inventory Turnover (Days)
Inventory Turnover is the number of times a Company sells and replaces its inventory
during a period. It is calculated by dividing Cost of goods sold by average inventory.
(iii) Interest Coverage Ratio
The Interest Coverage Ratio measures how many times a Company can cover its current
interest payment with its available earnings. It is calculated by dividing Earnings Before
Interest and Taxes by finance cost.
(iv) Current Ratio
The Current Ratio is a liquidity ratio that measures a Company's ability to pay
short-term obligations or those due within one year. It is calculated by dividing the
current assets by current liabilities.
(v) Debt Equity Ratio
The Debt Equity Ratio is used to evaluate a Company's financial leverage. It is a
measure of the degree to which a Company is financing its operations through debt versus
wholly owned funds. It is calculated by dividing a Company's total lease liabilities by
its Shareholder's equity.
(vi) Operating Profit Margin (%)
Operating Profit Margin is a profitability or performance ratio used to calculate the
percentage of profit a Company produces from its operations. It is calculated by dividing
the Earnings Before Interest and Taxes by Revenue from Operations.
(vii) Net Profit Margin (%)
The Net Profit Margin is equal to how much net income or profit is generated as a
percentage of revenue. It is calculated by dividing the profit for the year by Revenue
from Operations.
(viii) Return on Net Worth (%)
Return on Net Worth is a measure of profitability of a Company expressed in percentage.
It is calculated by dividing profit after tax for the year by average capital employed
during the year.
Business Performance
The Company operates in a single reportable business segment
i.e., “Pharmaceuticals”. The Company provides products and solutions across
various therapeutic areas such as Women's Health, Gastroenterology, Central Nervous
System, Metabolics, Multi-Specialty and Vaccines.
Performance for the year under review in these therapeutic areas is highlighted below:
• Women's Health : This year, the Women's Health portfolio showed degrowth of
8.4%, mainly due to increased competition from generics in dydrogesterone market. The
Company continued to enhance the connect with healthcare professionals through omnichannel
campaigns and initiatives driving advocacy, while strengthening Duphaston's positioning in
the management of miscarriages and infertility.
Further, shaping the treatment landscape for menopause in India will be another key
priority area for the Company and we will continue to build Femoston in this therapeutic
area over the next few years. We launched the following new products to build on our
Financial performance
Revenue from Operations: Revenue from Operations for the year ended March 31, 2023,
is ? 5,348.73 Crores in comparison to ? 4,913.32 Crores last year, recording a growth of
8.9%.
Profit Before Tax : Profit Before Tax for the year ended March 31,2023, is ?
1,273.82 crores, which grew by 18.0% over the previous year.
Key Financial Ratios:
Women's health portfolio during the year i.e., Femoston Mini (post-menopausal
symptoms), Solfe extra tablet (iron deficiency anemia) and Cetropro vial (IVF).
• Gastroenterology (GI): The Gastroenterology portfolio showed a robust growth
of 10.5% and consolidated its market share in the segment. GI brands continued to be the
key growth driver for the Company. Strong acceleration in 2022-23 was driven by the top
brands in this segment, i.e., Udiliv(cholestatic chronic liver disease), Duphalac
(constipation), Cremaffin Plus (constipation) and Creon (pancreatic exocrine
insufficiency). These brands maintained their leadership position and market dominance
with increased geographic presence, differentiated medico marketing programs and targeted
micro market interventions. Other brands like Ganaton (gastrointestinal dysmotility) and
Librax (irritable bowel syndrome), continued to outperform the market*. Our commitment to
focus on new launches and build the existing top brands yielded substantial results
accelerated portfolio growth.
During the year, Cortirowa OD (ulcerative colitis), Digeraft XT (gastroesophageal
reflux), Digeraft Plus (gastroesophageal reflux) and Cremagel-L (anal fissures) were
launched. Digeraft (anti reflux antacid) continued to be one of our best performing new
products in 2022-23. Several beyond the pills offerings have also been significantly
scaled up with the introduction of newer services such as EGG (Electrogastrogram) for
enhancing dysmotility diagnosis in India. The Company plans to stay invested in extending
better diagnosis support to patients in core therapy areas.
The Company will continue to identify need gaps in core therapy areas to maintain
therapy leadership, launch new products to augment portfolio offerings, and support
consumers with comprehensive and differentiated service offerings, to further accelerate
mid-sized brands and enable disruptive growth of new product launches. The focus will
remain on integrating and building a strong, sustainable and profitable hybrid promotional
model for consumer facing legacy brands like Cremaffin and Digene by strengthening
targeted consumerization and ethical promotional initiatives in the laxatives and antacids
category.
• Central Nervous System (CNS) : The largest therapy area for the CNS business
is vertigo, which grew by 4.1% over the previous year with Vertin delivering a market
beating growth*. This has been made possible with the differentiated initiatives and
campaigns, consistent therapy shaping initiatives, and successful product life cycle
management.
• Metabolics : The Metabolics portfolio achieved strong double-digit growth of
14.5% driven by the success of Abbott's flagship brand Thyronorm. Thyronorm grew faster
than the represented market* and has maintained its market dominance*. The brand is driven
by digital interventions to enhance scientific engagement, therapy shaping initiatives in
collaboration with reputed bodies like Association of Physicians of India, Indian Medical
Association and the Indian Thyroid Society. Multi-channel awareness campaigns continue to
be an important lever aiming to provide credible information around thyroid disorders and
resulting symptoms. During the year, Thyronorm 200 meg (hypothyroidism) and India's first
Liothyronine (T3) molecule-Linorma T3 (hypothyroidism) were launched. Additionally,
Combinorm grew faster than the market* and continues to establish the usage of
pre-probiotics in the treatment of bacterial vaginosis.
• Multi-Specialty : Under Multi-Specialty, the Company offers products for
insomnia, vitamin D, pre-term labor and pain management. This business has grown 4.7% in
2022-23 and is consistently growing higher than represented market*. Zolfresh (insomnia),
Arachitol portfolio (vitamin D), Brufen (analgesics) and Duvadilan (preterm labor) are the
key contributors to this business. Differentiated public awareness initiatives helped in
creating awareness through experts. Scientific therapy initiatives in collaboration with
India's leading scientific bodies, were launched during the year. Going ahead, the focus
will be to establish our base brands and build them into mega brands for the company. We
also want to strengthen our new products pipeline to offer an even more comprehensive
portfolio to covered specialties. During the year, Brufen P (pain and fever) was launched
under this business.
• Vaccines : The key brands in the vaccines portfolio are Influvac
(influenza), Enteroshield (typhoid), Havshield (hepatitis A), Rotasure (rotavirus
diarrhea), and JE Shield SD (Japanese encephalitis). Vaccine business grew by 5.5% during
the year. We led robust medico-marketing and awareness plans to improve the pediatric
vaccination numbers, especially for Influenza vaccination. We also launched several mother
education initiatives under our Influenza flagship program and initiated several
educational activities under our influenza flagship program. In partnership with US-India
Strategic Partnership Forum (USISPF), Federation of Obstetric and Gynecological Societies
of India (FOGSI), Indian Chest Society (ICS), guidelines for adult vaccinations
for critical patients were drafted and launched. The Company is working with National
Technical Advisory Group on Immunization (NTAGI) to further build guidelines on influenza
vaccinations for adults in high-risk groups. There are focused efforts though print and
social media, along with campaigns on radio and parental platforms to create awareness.
‘In-Home- Vaccination' and the ‘Influvac microsite' were launched specifically
for healthcare professionals for better services and to improve vaccine compliance. We
will continue to expand the market for both pediatric and adult populations through newer
patient services and product launches to strengthen the portfolio.
MEDICAL RESEARCH AND KNOWLEDGE SHARING INITIATIVES
Evidence-based medicine is gaining importance in empowering Healthcare Professionals
(HCPs) to ensure better patient care. Research studies undertaken by the Company, ranging
from real-world evidence-based studies (observational or epidemiological) to registration
studies, have been instrumental in defining and driving organizational strategies and
creating high-quality scientific evidence, thus aiding the optimization of healthcare.
During the year, the Company completed 6 clinical studies and executed 8 new clinical
studies and published 18 articles in major indexed journals. All the studies were
conducted in compliance with Good Clinical Practice (GCP) and regulatory requirements.
OUTLOOK
The pharmaceuticals industry is expected to grow at 9.5% in 2023. This continued
economic growth, along with reduced Covid-19 impact, is expected to drive the market
growth of non-Covid-19 therapies. We have also witnessed a global behavioral shift towards
preventative care and remaining healthy, which is also expected to drive market growth in
India. For Abbott, this market growth would present opportunities to provide relevant
products and solutions to our customers.
In 2023, the Company we aim to and continue gaining share in the Indian pharmaceutical
market. Some the key drivers that will help us deliver on our ambition are :
• Therapy shaping to accelerate pillar brands :
Focused efforts are being made to accelerate growth of current brands and future
launches with clearly defined strategies, developed through in-depth analysis ofmarket
trends along with our capabilities and strengths. Shaping of key therapies is critical to
drive leadership and ensure consistent market beating growth.
• Beyond-the-pill patient support : Engaging patients directly for education,
counselling or compliance support is crucial today due to their increased awareness. The
Company has been at the forefront of patient support programs and has continued expansion
with new programs. For example, we've worked around menopause to help women improve their
quality of life. Our existing programs have shown success in ensuring therapy adoption and
adherence and we plan to explore targeted partnerships with other industry players and
start-ups to expand the same.
• Multi-channel doctor engagement : A key focus of the Company is engaging
with doctors through multiple physical and digital touchpoints. This is likely to help
reach a larger base of doctors. We are also constantly revamping our knowledge platforms
to be able to provide more relevant information to doctors.
• Increase portfolio depth : We continue to focus on new launches to ensure
presence in strategic therapeutic areas and leverage loss of exclusivity of critical
brands. We have built a robust plan for our new product pipeline across therapies.
RISKS ANDCONCERNS
The Indian pharmaceutical industry operates under a highly regulated environment.
Tighter norms for clinical trials as well as for development of new drugs and treatment
may impact the industry growth, but are beneficial in the long run. Growing competition
from generic medicines, dependence on imports for Active Pharma Ingredients (API), supply
chain disruption due to geopolitical incidents, pose challenges to the industry and the
Company. The Company remains at the forefront of these challenges and continue to develop
new products at an affordable price point to meet evolving patient needs.
INTERNAL CONTROL SYSTEM AND ITS ADEQUACY
The Company has an internal control mechanism commensurate with its size and nature of
business.
These systems provide a reasonable assurance on achievement of its operational,
compliance and reporting objectives, including safeguarding the Company's assets,
prevention and detection of frauds, accuracy and completeness of accounting records and
ensuring compliance with corporate policies.
This mechanism is sound in design and the framework is continuously evaluated for
effectiveness and adequacy. The mechanism operates through well-documented standard
operating procedures, policies and process guidelines and segregation of duties. Periodic
analysis and reviews are
conducted by the senior management to assess its efficiency. Also, the same is
discussed with auditors on a regular basis. Change in control structure is carried out to
meet business needs along with control effectiveness.
The Internal auditplanis finalized based on current perception of internal control risk
and compliance requirement in consultation with the operating divisions. The Internal
Auditors, as a part of their audits, review the design of key processes to assess the
adequacy of controls and propose remedial measures, wherever required.
The Internal Audit Reports issued by the Internal Auditors are discussed with the
Senior Management and presented to the Audit Committee on a quarterly basis. An
independent and empowered Audit Committee reviews the significant observations and
assesses the adequacy of the actions proposed while monitoring their implementation. The
Internal Auditors conduct a quarterly follow up for implementation/remediation of all
audit recommendations and the status report is presented to the Audit Committee on a
regular basis.
The Company has implemented both preventive and detection controls. Appropriate
corrective actions taken to reduce the risks include the following:
• The Abbott Code of Business Conduct requires annual certification by all
employees;
• The Compliance Committee is formed with representatives from all the operating
groups;
• Senior Management has oversight of the compliance programs;
• The Business Compliance Cell is assigned the responsibility of training,
monitoring and ensuring employees' compliance with the Company's policies and procedures;
• The Company has a Whistle-Blower mechanism in place;
• Internal Investigation reports are presented before the Audit Committee on a
quarterly basis;
• Business divisions have periodic meetings with the Director-Office of Ethics and
Compliance, to monitor and discuss compliance with various business processes.
For the year ended March 31, 2023, the Management has assessed the adequacy and
effectiveness of internal controls over financial reporting and basis the assessment,
believes that the processes are working efficiently and effectively. The Statutory
Auditors have confirmed adequacy of the internal controls over financial reporting and its
operating effectiveness.
DIRECTORS
During the year, the Board of Directors, basis the recommendation of the Nomination and
Remuneration Committee, has approved the re-appointment of Ms Shalini Kamath (DIN :
06993314), as an Independent Director of the Company for a period of 5 (five) years
effective October 29,
2022, not liable to retire by rotation. This was approved by the Shareholders through
Postal Ballot on November 12, 2022.
Mr Rajiv Sonalker will retire as Whole-time Director effective June 30,2023. The Board
places on record appreciation for his contribution during his tenure.
The Board, upon recommendation of the Nomination and Remuneration Committee at its
Meeting held on May 19,
2023, approved the appointment of Mr Mahadeo Karnik (DIN : 02606595) as Additional
Director on the Board of the Company effective July 1, 2023 subject to approval of the
Shareholders at the forthcoming Annual General Meeting.
In accordance with Section 152 of the Companies Act, 2013, Mr Kaiyomarz Marfatia (DIN :
03449627) and Ms Sabina Ewing (DIN : 09201770) retire by rotation at the ensuing Annual
General Meeting and being eligible, offer themselves for re-appointment.
Declaration of Independence
The Company has received declarations from all the Independent Directors confirming
that they meet with the criteria of independence prescribed under sub-section (6) of
Section 149 of the Companies Act, 2013 (“the Act”) and the SEBI Listing
Regulations. All the Independent Directors have registered themselves in the Independent
Director's Database managed by the Indian Institute of Corporate Affairs.
Number of Board Meetings
Five Board Meetings were held during the year 2022-23 on May 17, 2022; August 10, 2022;
November 14, 2022; February 10, 2023 and March 17, 2023. The intervening gap between the
Meetings was within the period prescribed under the Act, Rules framed thereunder read with
the Secretarial Standards issued by the Institute of Company Secretaries of India on
Meetings of the Board of Directors.
Policy on Nomination and Appointment of Direetors/Criteria for appointment of Senior
Management and Remuneration Policy
The Company has adopted the Policy on Nomination and Appointment of Direetors/Criteria
for appointment of Senior Management and Remuneration Policy as per the provisions of
Section 178(3) of the Act and the Rules framed thereunder. The said Policies are available
on the Company's website at https://www.abbott.eo.in/investor-relations.html.
Nomination Policy acts as a guideline for determining qualifications, positive
attributes, independence of Directors and matters related to the appointment and removal
of Directors and Senior Management.
The Policy lays down:
i. criteria, terms and conditions with regard to identifying suitable candidates who
are qualified to become Directors and Senior Management;
ii. appointment mechanism for Managing Director/ Executive and Non-Executive
Directors/Independent Directors/Key Managerial Personnel and Senior Management;
iii. tenure of Managing Director/Executive Directors/ Independent Directors;
iv. their removal process and succession planning.
Remuneration Policy lays down the Company's philosophy and criteria as well as manner
of determining the remuneration of Managing Director, Executive/ Non-Executive Directors,
Independent Directors, Senior Management, Key Managerial Personnel and other employees.
Performance Evaluation of the Board, Board Committees and Directors
The Company has adopted the Board Evaluation Framework and Policy based on
recommendation of the Nomination and Remuneration Committee, which sets a mechanism and
criteria for evaluation of the Board, Board Committees and Directors, including
Independent Directors. The same is available at https://www.abbott.co.in/investor-relations.
html.
Every year, Directors evaluate the effectiveness of the Board and its Committees in
performing its governance and oversight responsibilities. Directors assess the performance
of their peers, as well as the full Board of Directors and each of the Committees on which
they serve through online questionnaire.
Online Evaluations solicit feedback on various parameters described below:
For Board: Structure and composition of the Board, frequency and number of meetings,
devotion of time for important business matters-financials, monitoring internal controls/
code of conduct/insider trading policy/risk management framework and emerging
risks/governance and compliance issues, adequate access to information for effective
decisionmaking, strategic guidance to management through regular interactions and
cohesiveness in the overall working that facilitates open discussion.
For Committees : Structure and composition of the Committees, adequacy of charter and
working procedure, frequency of meetings, if the Committee is functioning as per the
charter and if the Committee recommendations contribute effectively to the Board
decision-making.
For Directors : skill set, knowledge, attendance, effective participation at
Board/Committee meetings, their contribution at the meetings, leveraging on his/her
experience to provide the necessary insights/guidance on Board discussions and display of
candor in expressing views even when they are in divergence with the rest of the Board,
etc.
Review and discussions:
• Results are presented in the form of anonymized reports;
• The Nomination and Remuneration Committee reviews peer and Board Reports;
• Reports are then shared with the Board for review and discussions.
Feedback incorporation:
• Basis the feedback, enhancement opportunities are identified and implemented as
appropriate;
• The Chair of the Nomination and Remuneration Committee discusses peer evaluation
results with individual directors as needed.
During the year 2022-23, evaluation of the Board, Committees and Directors was
conducted as per the process described above. Also, the Independent Directors conducted
separate assessment of the Board, Non-Independent Directors and the Chairman basis the
feedback from the other Board Members.
KEY MANAGERIAL PERSONNEL
Mr Vivek V Kamath, Managing Director, Mr Rajiv Sonalker, Chief Financial Officer and Ms
Krupa Anandpara, Company Secretary, are the Key Managerial Personnel of the Company as on
March 31,2023.
Mr Rajiv Sonalker will retire as Chief Financial Officer of the Company effective June
30, 2023. The Board upon recommendations of the Audit and Nomination and Remuneration
Committees, approved the appointment of Mr Sridhar Kadangode as Chief Financial Officer of
the Company effective July 1,2023.
Ms Krupa Anandpara has resigned and will cease as Company Secretary and Compliance
Officer of the Company effective June 30,2023.
AUDIT COMMITTEE
The Audit Committee comprises of Ms Anisha Motwani (Chairperson), Mr Munir Shaikh, Mr
Sudarshan Jain and Ms Shalini Kamath. Role of the Committee is provided in the Corporate
Governance Report, forming part of this Report. The recommendations made by the Audit
Committee during the year were accepted by the Board.
VIGIL MECHANISM/WHISTLE-BLOWER POLICY
The Company has in place Vigil Mechanism/Whistle-Blower Policy called “Abbott
India Limited-Procedure for Internal Investigations”. It lays down a mechanism for
reporting and investigation of all unethical behavior, alleged or potential violations of
laws, regulations or Abbott Code of Business Conduct, policies, procedures or other
standards.
A report indicating the number of cases reported, investigations conducted including
the status update is presented before the Audit Committee, on a quarterly basis.
The said Policy is available on the website of the Company at https://www.abbott.co.in/investor-relations.
html. Employees have numerous ways to voice their concerns and are encouraged to
report the same internally for resolution.
The said Policy provides for adequate safeguards against retaliation and access to the
Chairperson of the Audit Committee.
Any concerns/grievances can be communicated through various sources as provided under
the said Policy or via toll free number 0008001001058 or online at https://speakup.
abbott.com.
DIRECTORS'RESPONSIBILITY STATEMENT
Pursuant to Section 134(5) of the Act, your Directors state that:
a) in the preparation of the Annual Accounts for the year ended March 31, 2023, the
applicable accounting standards have been followed and there are no material departures
from the same;
b) they have selected such accounting policies and applied them consistently and made
judgments and estimates that are reasonable and prudent so as to give a true and fair view
of the state of affairs of the Company as at March 31, 2023 and of the Profits of the
Company for that year;
c) they have taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Act, for safeguarding the
assets of the Company and for preventing and detecting fraud and other irregularities;
d) they have prepared the Annual Accounts of the Company on a going concern basis;
e) they have laid down adequate internal financial controls to be followed by the
Company and that such internal financial controls are adequate and operating effectively;
f) they have devised proper systems to ensure compliance with the provisions of all
applicable laws and that such systems are adequate and operating effectively.
RELATED PARTY TRANSACTIONS
Policy on dealing with Related Party Transactions and Materiality
The Company has in place the Policy on dealing with Related Party Transactions and
Materiality in terms of requirements of the Act and the SEBI Listing Regulations. The said
Policy is available on the Company's website at https://www.abbott.
co.in/investor-relations.html.
As per the said Policy, all Related Parties Transactions are pre-approved by the
Independent Directors, Audit Committee and Board, as and when required as per the
requirements under the Act and SEBI Listing Regulations. The details of actual
transactions are reviewed by the Audit Committee on a quarterly/annual basis. Material
transactions, if any, with the Related Parties are pre-approved by the shareholders.
Details of Related Party Transactions
The Company enters into the business transactions with various Abbott affiliate
Companies (“Related Parties”) in the normal course of business and on arm's
length basis.
All the transactions with the Related Parties entered into during the financial year
2022-23 were pre-approved by the Independent Directors and Audit Committee. Actual
Transactions are placed before the Audit Committee on a quarterly basis. Material Related
Party Transactions are approved by the Shareholders, as and when required. The details of
the same are provided in Note 38 to the Financial Statements.
Pursuant to Regulation 23(9) of the SEBI Listing Regulations, the Company has filed
half yearly reports on Related Party Transactions with the BSE Limited.
INVESTOR EDUCATION AND PROTECTION FUND (IEPF)
Pursuant to the Section 124 and other applicable provisions of the Act, read with the
Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund)
Rules, 2016 (“the IEPF Rules”), all dividends which remain unpaid or unclaimed
for a period of seven years, are required to be
transferred by the Company to the IEPF, established by the Government of India.
Further, according to the IEPF Rules, the shares on which dividend has not been paid or
claimed by the shareholders for seven consecutive years or more shall also be transferred
to the demat account of the IEPF Authority.
In accordance with the said requirements, during the year, the unpaid dividend and
shares were transferred to IEPF. The details of the same are provided in the Corporate
Governance Report.
CORPORATE SOCIAL RESPONSIBILITY
Corporate Social Responsibility (CSR) Policy
The CSR Policy is available on the Company's website at https://www.abbott.co.in/investor-relations.html.
CSR Programs/Activities undertaken during the financial year 2022-23
The Company spent an amount of? 19.36 Crores on various CSR programs during the
financial year 2022-23. The Annual Report of the CSR activities undertaken by the Company
is annexed as “Annexure I” and forms part of this Report.
RISKMANAGEMENT
The Company has formulated a “Risk Management Policy” which includes:
• Risk identification framework (including Environment, Sustainability and
Governance related risks [ESG]);
• Risk mitigation measures;
• Business Continuity Plan (BCP).
The framework above covers financial, operational, HR, reputational, sectoral,
cybersecurity, ESG and any other risk determined by the Risk Management Committee (RMC).
1. Objective
Risk Management Policy is directed to enable Management to effectively deal with
uncertainty and associated risk and opportunity, enhancing the capacity to build value.
Broadly, the Policy Framework encompasses:
• Aligning risk appetite and strategy considering the risk appetite in evaluating
strategic alternatives, setting related objectives and developing mechanisms to manage
related risks;
• Enhancing risk response decisions and select among alternative risk
responses-risk avoidance, reduction, sharing and acceptance;
• Reducing operational surprises and losses by identifying potential events and
resultant responses, thus reducing surprises and associated costs or losses;
• Identifying and managing multiple and crossenterprise risks;
• Seizing opportunities by considering a full range of potential events and thus
identify and proactively realize opportunities;
• Improving deployment of capital through robust risk information to effectively
assess overall capital needs and enhance capital allocation.
These capabilities inherent in this Framework help in achieving the performance and
profitability targets and prevent loss of resources.
This Risk Management Framework is directed to help ensure effective reporting and
compliance with laws and regulations, avoid damage to the Company's reputation and
associated consequences.
Risk Management Framework enables the Company to avoid pitfalls and surprises along the
way.
. Roles and Responsibilities
• Board of Directors
The Board provides oversight about Risk Management and is responsible for approving
Risk Management Framework. The Board has constituted Risk Management Committee with
defined roles and responsibilities.
• Audit Committee
Audit Committee conducts evaluation of Risk Management systems and such other functions
as may be assigned by the Board from time to time.
• Risk Management Committee
Key roles and responsibilities are outlined below:
i. Monitoring and implementing Risk Management Plans;
ii. Ensures that the adequacy of the Company's Risk Management Framework is being
assessed and that action is taken if it is inadequate;
iii. Reports Risk Management activities and information, including top risks and
mitigation, to the Audit Committee and Board;
iv. Understands the significant or high risks affecting Company and ensures that
processes to mitigate them are effective;
v. Reviewing and amending Risk Management Framework from time to time;
vi. Such other functions as may be delegated by the Board from time to time.
• Risk Management Core Team
The Risk Management Team oversees the process by which business division/function
management identifies and assesses risks and determines appropriate responses. It
addresses organizational risks and sets performance measure goals and key risk indicators
for those risks. It takes care of the following:
i. Design, develop and periodically update the Risk Management framework and procedure;
ii. Ensure appropriateness of risk culture and understanding across the Company at all
levels;
iii. Plan and organise risk management programs;
iv. Ensure adherence to Risk Management policies and procedures within Abbott;
v. Facilitate validators in preparation and execution of control validation plan;
vi. Conduct adequate awareness;
vii. The Core Team along with the concerned Division/Function heads identifies risks
faced/ perceived by the Company and mitigation plans. The core team further evaluates
whether the mitigation measures have helped bringing down the scale and magnitude of risk,
from time to time.
STATUTORY AUDITORS
S R B C & CO LLP, Chartered Accountants (ICAI Firm Registration No. :
324982E/E300003), were appointed as the Statutory Auditors at the Seventy-fifth Annual
General Meeting of the Company held on August 22, 2019, for a period of five years i.e.,
from financial year 2019-20 to financial year 2023-24, to hold office till the conclusion
of the Eightieth Annual General Meeting of the Company.
AUDITORS'REPORT
The Auditors' Report for the financial year 2022-23 does not contain any adverse
remarks, qualifications or reservations or disclaimers, which require
explanations/comments by the Board.
COST AUDITORS
M/s Kishore Bhatia & Associates, Cost Accountants (Registration No. 00294), are the
Cost Auditors of the Company for the financial year 2022-23.
M/s Kishore Bhatia & Associates are appointed as Cost Auditors of the Company for
the financial year 2023-24 at a remuneration of ? 0.08 Crores plus taxes as applicable and
reimbursement of out-of-pocket expenses. The said remuneration to the Cost Auditors shall
be subject to ratification by the Members at the ensuing Annual General Meeting.
COST AUDIT REPORT
As per the provisions of Section 148(1) of the Companies Act, 2013, the Company has
maintained the cost records, as specified by the Central Government.
Cost Audit Report along with the Compliance Report for the financial year 2021-22,
issued by M/s Kishore Bhatia & Associates, Cost Auditors, was filed with the Ministry
of Corporate Affairs on August 25, 2022 (due date of filing was
September 8, 2022).
INTERNAL AUDITORS
M/s KPMG, Chartered Accountants, (ICAI Firm Registration No. BA62445) are the Internal
Auditors of the Company. Internal Audit Report, their significant observations and follow
up actions taken by the Management is reviewed by the Audit Committee on a quarterly
basis.
SECRETARIAL AUDITOR
Ms Neena Bhatia, Practising Company S ecr etary (Memb ership No. FCS 9492 and
Certificate of Practice No. 2661) is the Secretarial Auditor of the Company for the
financial year 2022-23.
SECRETARIAL AUDIT REPORT
The Secretarial Audit Report issued by Ms Neena Bhatia, Practising Company Secretary
for the financial year ended March 31, 2023, does not contain any adverse remark,
qualifications, reservations or declaimer except the observation that the name of the
Company is appearing in the breach list displayed on the website of the BSE Limited for
having foreign investment in excess of prescribed sectoral cap.
In this connection, the Company had received post-facto approval from the Department of
Pharmaceuticals permitting the increase in foreign shareholding in excess of 75.11% from
October 19, 2012 to January 14, 2021, which was subject A C to compounding
with the Reserve Bank of India for the contravention of applicable rules under the Foreign
Exchange Management Act, 2000.
The Company has filed the compounding application with the Reserve Bank of India and
taking adequate steps in this regard.
The Secretarial Audit Report is annexed as “Annexure II” and forms part of
this Report.
REPORTING OF FRAUD BY AUDITORS
During the year under review, the Statutory Auditors, Cost Auditors, Internal Auditors
and Secretarial Auditor have not reported any instances of frauds committed in the Company
by its Officers or Employees to the Audit Committee under Section 143(12) of the Act.
HUMAN RESOURCES
Abbott is an innovative and great place to work, that cares about and values its
employees. The purpose and mission is to provide employees with the opportunity to change
people's lives for the better, while living their own best lives personally and
professionally. As they drive growth for the Company, the Company provides a supportive,
inclusive culture and programs that help ensure their continued development and encourage
them to build a successful career. The Company offers a variety of benefits and
development opportunities that allow employees to build thriving workplace relationships
and careers, along with financial security for themselves and their families.
The Company has 3,700 employees as on March 31, 2023. They are the pillars of the
Company's growth and success. Employee well-being is a key priority and the Company is
committed to protecting it.
The Company offers career development programs for employees from all levels of the
organization to build a diverse, innovative workforce of the future. This is done with a
particular focus on diversity, equity and inclusion.
All efforts resulted in Abbott being recognized amongst the ‘Top 10 Best Companies
To Work For in India,' by Business Today-one of the leading business magazines.
Talent Strategy
A strong talent strategy has been developed to help attract and retain the right talent
and emerge as the employer of choice in the Indian Healthcare Industry. The Company
believes in motivating and engaging employees through shared goals, capability building
initiatives, career growth opportunities and providing an environment of transparency,
accountability and positive reinforcement.
Training and Capability building initiatives
L. Training and Development Resources
The Abbott Global Training Site provides variety of materials and resources to meet the
development and functional training needs of employees including role- based trainings,
in-person trainings, eLearning (online training) and articles, accessible on real-time
basis calendarized and localized programs are additionally designed basis need
identification. The Learning and Development team caters to customized training requests
from business in parallel to the open enrollments. E-Learning and virtual learning play an
integral role in learning offerings and provides employees the flexibility they need. The
Career Connect Platform helps employees to engage in new experiences, discover innovative
ways to connect with colleagues globally and take advantage of personalized resources to
create a high-impact development plan. Employees also have opportunities to work on
Learning Gigs-an innovative concept facilitating voluntary project-based learnings with
teams across any country within Abbott.
2. Leadership Pipeline Building Programs
Talent Management Reviews : These programs focus on the development of key personnel
who are part of the succession pipeline at various levels. They focus on building skills
and capabilities required for the next level roles.
Transition Programs : These training programs are very specific to the employees who
are getting into their new roles. As an employee transitions from being an individual
contributor to a manager, this program provides the necessary support in navigating the
complexity of being a manager.
The program focuses on building people manager leadership competencies and comes with
three levels:
• Individual Contributor to People Manager;
• Manager to Director;
• Director to General Manager.
Key talent programs like In-Stride and Future Leaders Development Program aim at
developing future leaders and accelerate their readiness into critical roles. The 12-month
development journey consists of crossfunctional mentoring, classroom trainings, digital
learning, leadership and business simulations, campus immersion at top class academic
institutes and exposure to senior leaders to review development progress.
3. Executive Coaching and Mentoring
Executive coaching and mentoring are used as development interventions for senior
leaders. They are based on the needs identified for senior leaders and a 6-12 months'
engagement with an external senior coach is established. The goals are set up and agreed
to by the coachee, coach and the manager. Success is measured by the achievement of
milestones and development goals achieved by the coachee.
4. Mentoring Programs
Leaders like the vice presidents, general managers, senior directors and functional
leaders actively engage in mentoring talent across the organization. Mentoring develops
employees to drive new, cross functional expertise and perspectives. Mentors are
identified and a panel is created with expertise in a variety of areas of development to
address the needs of our talent with respect to business and professional growth. The
mentor-mentee pairs and groups are assigned based on need, expertise and personal
attributes. Tools and guidelines to maximize learning are provided.
3. Leading with Impact-Integrated Managerial Capability Program
The Company helps managers accelerate their development and transition into senior
leadership roles through skill building, experiences, and learnings from current leaders.
The “Leading With Impact” program was offered to all people managers in the
Company in 2021 to help them effectively lead people and the group underwent refresher
programs on the same in 2022. The 12-week module consisting of online learning and
simulations, on the job experiences, discussion with peers on the learnings, coaching from
certified global coaches and pre and post program leadership effectiveness surveys,
outlined modules such as See, Hear, Speak, Coach and Develop and is considered to be
highly effective. Leading with Impact efforts are sustained through various initiatives
like Pop Up quiz on Intranet portal, quarterly mailers related to employee life cycle
processes, leader panel sessions, etc.
Diversity, Equity and Inclusion (DE&I):
Diversity is fundamental at Abbott-in people, mindsets and business models. It's core
to fulfilling the purpose and is embedded in values and is driven across leadership
levels. Diversity is built into Abbott's worldview, workplaces and customer bases. The
Company strives to create and provide
the work environment where every employee feels welcome and able to bring their whole
self to work. This means integrating diversity, equity and inclusion in all areas of
business and building teams reflective of the communities the Company serves.
Some key focus areas to help bring the Diversity, Equity and Inclusion vision at Abbott
to life include:
• Equal Employment Opportunities s The Company's Equal Employment Opportunity
Policy reinforces the commitment in ensuring that workplace is free from discrimination
and employment is based solely on merit during external hiring and internal job movements.
Opportunities are provided without discrimination on the basis of race, sex/gender,
religion/caste/ creed, social or ethnic origin, color, age, differently abled (including
physical medical conditions), sexual orientation, domestic partnership status, gender
identity or expression, marital status, ancestry, genetic information or any other reason
prohibited by laws in the country.
• Capability and Mindset : Initiatives to continue building managerial
capability to leverage diverse ideas and talent and build high performing, inclusive teams
are pivotal.
• Forums and Networks : Provide opportunities for employees to engage with and
learn from different communities creating robust, extensive employee networks and resource
groups.
All of these is reinforced by continuous communication and awareness to ensure we build
sensitization and advocacy for an inclusive workplace.
There are various interventions for DE&I undertaken and promoted during the year:
• Women Leaders of Abbott (WLA) : WLA takes a proactive role in connecting
women within the organization and offers dynamic programs and initiatives to enhance
leadership experiences and career development of women. It acts as a platform for
attracting, retaining and advancing women in the organization, thereby becoming an
Employer of Choice for Women.
• Working Mothers of Abbott (WMA) : WMA is an
employee resource group launched in Abbott India in 2022 to provide working mothers an
avenue to connect, support, share and learn from each other as they strongly navigate
expectations of balancing work and motherhood.
• Happy Feet-Joy of Motherhood : Happy Feet is a program designed to
support and provide a conducive work environment for our women employees as they step into
the phase of motherhood. The document is shared with women employees who are expecting and
also provide details of preparing for maternity leave and provide support before, during
and after pregnancy.
• ASCENT-Abbott Second Careers Engagement Program : This program aims to
strengthen our diversity commitment by providing second career opportunity to veterans and
women returning from career breaks. ASCENT aims at empowering these professionals with
relevant opportunities and providing the required support and flexibility to ensure a
seamless transition.
• Unconscious Bias Training for all Managers: Building individual awareness
of unconscious bias and their understanding of its impact at work.
• Wo-Mentoring Program : One of our key focus is the development of our key
women talent and creating women leaders across levels. Our Wo-Mentoring program provides
an accelerated development experience through a mentoring opportunity for identified key
women talent over a nine-month mentoring program. The Wo-mentoring program which started
in our head office, now extends to manufacturing and sales employees. We have mentored 200
women employees so far and of these 40% have had a role rotation, promotions and
transfers.
• Empower: As a part of this initiative, women employees receive exposure to
best-in-class expert workshops/ curated session as well as content that includes theme
specific webinars, videos, articles and podcasts to sharpen and enhance their leadership
skills like networking, building personal brands, resilience mindset, etc.
• Avenue : Avenue is an offering designed to support women during any
relocation requirement due to a change in personal circumstances.
• Early Career Network : This employee resource group set up in India has been
launched with the purpose to help our early career professionals explore the mammoth
organization that Abbott is, engage and network with leaders and diverse talent across the
organization. The aim is to help these individuals evolve as professionals resulting in
long and meaningful careers with Abbott.
• Abbott Disability Network : To be a best-in-class network supporting people
of all abilities within Abbott. We empower people with disabilities to reach their fullest
career potential. We create a culture of understanding, awareness, advancement and
advocacy for individuals with disabilities through education, training, outreach,
volunteer events and collaboration.
Prevention of Sexual Harassment (POSH) at Workplace
The Company has an Internal Complaints Committee (ICC) in place as required under the
Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
Appropriate training under POSH is imparted to employees regularly. This training also
forms part of the new Employee Orientation program.
During the year 2022-23, all the employees have undergone and completed the aforesaid
mandatory training program.
1 complaint was received by the Company/ICC during the year, under the aforesaid Act
and the same was appropriately closed.
HEALTH, SAFETY AND ENVIRONMENT
The Company is committed to the protection of human health, safety and the environment.
This commitment forms the basis for our EHS management systems and governance. Attainment
of our long-range targets to reduce worker injuries and the environmental impacts of our
business across our value chain is a priority. Meeting our targets, along with our EHS
objectives, is the continuation of a long legacy of responsible business practices at
Abbott that reflect our core values: Pioneering, Achieving, Caring and Enduring.
Health and Safety:
During the year, Goa plant received the prestigious Abbott Global EHS Excellence award
for upgrading occupational health and fire protection facilities at site.
Site Safety Committee is formed at the plant having representation from both
supervisory and non-supervisory staff. Committee meets at regular frequency to discuss and
resolve EHS issues.
On-job, Classroom and Online EHS trainings are regularly arranged for employees.
Training topics cover applicable EHS regulations, Abbott's EHS technical standards,
firefighting, hazardous chemical and waste handling, Slip/Trip/Fall, Machine Guarding,
Material Handling and emergency preparedness.
State of art centralized dust collection system is provided in the manufacturing
facility which removes the dust generated during the process thus preventing employees
from dust exposure. The dust which is also explosive in nature is vented out effectively
with this dust collection unit as this system by design has features to protect the
equipment and area around in event of explosion. Thus, ensuing safety of personnel and
workplace in event of dust explosion.
Automatic sprinkler system is installed in raw material, packing material and finished
goods store, thus providing 100% sprinkler coverage to entire warehouse which is the most
expensive block at site. In event of fire the sprinklers will automatically get activated,
extinguish the fire and also to prevent the spread of fire in adjacent areas, thus
providing protection even during non-working hour. Total 25% of sites built up area has
coverage of automatic sprinklers system.
Hazardous Area Classification (HAC) study was carried out for Plants where the chemical
Flash Point (FP) is less than 65? C as per IS5572/2009 (Class A and B liquids). Hence all
plants/areas where any chemical stored/handled has a FP less than 65? C will be
considered for this Hazardous Area Classification Study. Chemicals handled above their
flash point were also included, as they are considered as flammable at elevated
temperatures above their flash point.
Special focus is maintained on critical safe work initiatives like contractor safety,
hand safety, hot work and working on heights.
Mass awareness programs such as celebration of National Safety Week and Abbott EHS week
were conducted to help build a sustainable EHS culture.
For EHS cultural enhancement, we are running Behavior Based Safety-BBS program which
includes observation and correction of unsafe acts. There also exists system for reporting
of unsafe conditions and near miss. Such initiatives have greatly helped improve positive
EHS culture.
Road Safety:
Various Road Safety programs were conducted for field employees during the year:
• 100% of the sales employees completed the online defensive riding refresher
training module;
• 611 new sales employees were trained virtually on defensive riding skills and
behaviors and COVID-19 Safety guidelines and behaviors, within 60 days of joining;
• 639 new sales employees were provided with 2 helmets (one for self and one for
the pillion rider) as a part of the joining kit;
• A new online defensive driving refresher training module will be rolled-out to
all field employee. This module covers all the new risks that a driver faces post
COVID-19.
To further enhance employee engagement on road safety and defensive riding, a series of
initiatives like quizzes and creative competitions were rolled-out with good participation
from employees.
Environment:
A responsibility towards the environment is part of Abbott's mandate. We continuously
endeavor to minimize the use of renewable resources and cut down on carbon emission.
In all our initiatives, a holistic approach is adopted and efforts are made to curtail
adverse environmental impact, if any. The Goa plant continued to implement multiple
energy, water conservation and emission reduction projects.
The Company has a state-of-the-art effluent treatment plant with parameters of treated
effluent well within the limit set by the local State Pollution Control Board. The
rainwater harvesting project continues to save water by reducing the intake of purchased
water.
In 2022-23 the effluent treatment plant was upgraded to next level by installing
primary clarifier to remove solid particles and oil/grease. This will further improve the
quality of treated water.
Multidisc screw press was introduced for sludge drying which is latest technology
available in market. This helps in removing water from sludge at much faster rate and
consumes 75% less power.
The transparent roofing sheet over sludge drying beds will prevent the ingress of
rainwater during monsoon and also facilitates the sun drying of sludge. Hence efficient
drying will reduce the total quantity of sludge generated which is disposed off as
hazardous waste.
Furthermore, gas emissions from the boiler and generator stacks as well as the ambient
air quality are monitored regularly and they are well within the limits set by the State
Pollution Control Board. Vermi-composting unit is in place to convert canteen food waste
into organic manure, which is used in the lawns and in the plantation inside the Goa
factory premises.
Out of total non-hazardous waste generated at site, 60% of the waste is used for the
beneficial purpose without undergoing any recycling process. Remaining 40% of waste is
sent for recycling.
Out of total hazardous waste generated at site, 0.7% of the waste is incinerated
without energy recovery, 0.3% is sent for recycling (used oil and e-waste). Rest 99 % of
hazardous waste is disposed off through co-processing (in cement industries).
During the year, World Environment Day was celebrated as EHS mass awareness program.
Goa plant is certified as Zero Waste to Landfill facility which means no waste is
disposed off through landfill.
Plastic Waste Management:
The Company is adhering to the requirements of Plastic Waste Management Rules as laid
down by the Ministry of Environment, Forests and Climate change.
As a responsible organization, we collected and reprocessed 100% of plastic packaging.
We entered into agreement with waste management agency for this purpose and collected and
processed 2,000 MT plastic packaging waste, from the states and union territories of India
where we operate.
CONSERVATION OF ENERGY, TECHNOLOGY
ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The required information under the provisions of Section 134(3)(m) of the Act read with
Rule 8 of the Companies (Accounts) Rules, 2014 in respect of Conservation of Energy,
Technology Absorption, Foreign Exchange Earnings and Outgo, etc. are annexed as
“Annexure III” and forms part of this Report.
ANNUAL RETURN
The Annual Return of the Company as on March 31, 2023 has been placed on the website of
the Company at https://www. abbott.co.in/investor-relations.html.
DISCLOSURE UNDER SECTION 197(12) OF THE COMPANIES ACT, 2013 AND OTHER DISCLOSURES AS
PER RULE SOFTHE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL)
RULES,2014
Disclosures required in accordance with the provisions of Section 197(12) of the Act,
read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 is annexed as “Annexure IV” and forms part of this
Report. However, as per the provisions of Sections 134 and 136 of the Companies Act, 2013,
the Report and Financial Statements are being sent to the Members and others entitled
thereto, excluding the Statement containing
Particulars of Employees, which is available for inspection by the Members up to the
date of ensuing Annual General Meeting. Any Member interested in obtaining a copy of such
Statement may write to the Company Secretary at investorrelations.india@abbott.com.
BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT
Business Responsibility and Sustainability Report as required under Regulation 34 of
the SEBI Listing Regulations forms part of this Report.
CORPORATE GOVERNANCE REPORT
Corporate Governance Report and Certificate from the Statutory Auditors of the Company
on compliance of the conditions of Corporate Governance pursuant to the requirements of
the SEBI Listing Regulations, form part of this Report.
COMPLIANCE WITH SECRETARIAL STANDARDS
The Board of Directors affirms that the Company has complied with the applicable
Secretarial Standards issued by the Institute of Company Secretaries of India (SSI and
SS2) respectively relating to Meetings of Board, its Committees and General Meetings.
DISCLOSURES OF ORDERS PASSED BY REGULATORS OR COURTS OR TRIBUNAL
No orders have been passed by any Regulator or Court or Tribunal which can have impact
on the going concern status and the Company's operations in future.
The Company had received post-facto approval from the Department of Pharmaceuticals
permitting the increase in foreign shareholding in excess of 75.11% from October 19,2012
to January 14, 2021, which was subject to compounding with the Reserve Bank of India for
the contravention of applicable rules under the Foreign Exchange Management Act, 2000. The
Company has filed the compounding application with the Reserve Bank of India and taking
adequate steps in this regard.
INDUSTRIAL RELATIONS
The Company has overall cordial industrial relations. The Company continues to receive
strong support from distributors, suppliers, vendors, stockists and other partners.
FIXED DEPOSITS
No fixed deposits were accepted during the year.
PARTICULARS OF LOANS, INVESTMENTS AND GUARANTEES
The Company has not granted any loan or provided any guarantees to or invested in
securities of any other body corporate during the year.
GENERAL
No disclosure or reporting is required in respect of the following items as there were
no transactions relating to these items during the year under review:
1. Issue of equity shares with differential rights as to dividend, voting or otherwise.
2. Issue of shares (including sweat equity shares) to employees of the Company under
any scheme.
3. The Company does not have any joint venture or subsidiaries.
4. There are no applications made or any proceeding pending against the Company under
Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the financial year.
5. There are no instances of one-time settlement during the financial year.
ACKNOWLEDGEMENT
Your Board expresses gratitude towards all the employees, business partners,
institutions, banks and the Members, for their continued trust and support to the Company.
|
|
For and on behalf of the Board |
Mumbai |
Vivek V Kamath |
Sudarshan Jain |
May 19,2023 |
Managing Director |
Director |
|
DIN: 06606777 |
DIN : 00927487 |
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