Abbott India Ltd:Annual Report 2023-24 Analysis

Abbott India Ltd: A Comprehensive Overview #

About the Company #

Year of Establishment and Founding History #

Abbott India Limited has a long and rich history, tracing its roots back to:

• Original Incorporation: Founded in 1944 as Boots Pure Drug Company (India) Ltd.
• Acquisition by Abbott: Acquired by Abbott Laboratories in 1988.
• Name Change: Renamed Abbott India Limited in 1991.

Headquarters Location and Global Presence #

• Headquarters: Mumbai, India
• Global Presence: Abbott Laboratories, the parent company, has a presence in over 160 countries worldwide. Abbott India caters primarily to the Indian market but benefits from the global research, development, and manufacturing capabilities of the broader Abbott network.

Company Vision and Mission #

• Vision: To help people live their best lives through the power of health.
• Mission: Not explicitly defined for Abbott India, but it aligns with the global Abbott mission: To create breakthrough products – in diagnostics, medical devices, nutrition and branded generic pharmaceuticals – that help people live healthier, fuller lives.

Key Milestones in Their Growth Journey #

• 1944: Established as Boots Pure Drug Company (India) Ltd.
• 1988: Acquired by Abbott Laboratories.
• 1991: Renamed Abbott India Limited.
• Continued expansion: Abbott India has consistently expanded its product portfolio and market reach within India, focusing on key therapeutic areas.

Stock Exchange Listing Details and Market Capitalization #

• Stock Exchange: Listed on the Bombay Stock Exchange (BSE: 500488) and the National Stock Exchange (NSE: ABBOTINDIA)
• Market Capitalization: Fluctuates based on market conditions. Check current financial websites for the latest data.

Recent Financial Performance Highlights #

• To get recent financial performance highlights, refer to the latest annual reports, quarterly earnings reports, and financial news sources.

Management Team and Leadership Structure #

• Refer to the official Abbott India website for current information on the management team and leadership structure.

Notable Awards or Recognitions #

• Abbott India has likely received various industry awards and recognitions over the years. Check their official website and press releases for a comprehensive list.

Their Products #

Complete Product Portfolio with Categories #

Abbott India operates in a diverse range of therapeutic areas. Key product categories include:

• Pharmaceuticals:
  • Women’s Health
  • Gastroenterology
  • Metabolic Disorders
  • Cardiovascular Diseases
  • Central Nervous System
  • Pain Management
  • Vaccines
• Nutritional Products:
  • Pediatric Nutrition
  • Adult Nutrition
  • Sports Nutrition
• Diagnostics: (Offered through Abbott Laboratories, may not be directly manufactured by Abbott India)
• Medical Devices: (Offered through Abbott Laboratories, may not be directly manufactured by Abbott India)

Flagship or Signature Product Lines #

• Cremaffin: A popular laxative.
• Thyronorm: A medication for thyroid disorders.
• Duphalac: A medication used to treat constipation.
• Ensure: A nutritional supplement.

Manufacturing Facilities and Production Capacity #

Abbott India has manufacturing facilities in India. Details of production capacity are generally not publicly available.

Quality Certifications and Standards #

Abbott India adheres to stringent quality control measures and holds relevant certifications, including:

• Good Manufacturing Practices (GMP)
• ISO certifications (likely, but specific details require verification from their official website).

Any Unique Selling Propositions or Technological Advantages #

• Abbott benefits from its parent company’s global R&D network, providing access to innovative technologies and formulations.
• A strong focus on patient-centric solutions and addressing unmet medical needs in India.

Recent Product Launches or R&D Initiatives #

• Consult official press releases and annual reports for information on the most recent product launches and R&D activities.

Primary Customers #

Target Industries and Sectors #

• Healthcare: Hospitals, clinics, pharmacies, and individual patients.

Geographic Markets (Domestic vs. International) #

• Abbott India primarily focuses on the Indian domestic market.

Major Client Segments #

• Patients suffering from conditions within their therapeutic areas of focus.
• Healthcare professionals (doctors, pharmacists, nurses).
• Hospitals and clinics.

Distribution Network and Sales Channels #

• Extensive distribution network across India, including wholesalers, distributors, and pharmacies.
• Direct sales force targeting healthcare professionals.

Major Competitors #

Direct Competitors in India and Globally #

• Indian Competitors: Sun Pharmaceutical, Dr. Reddy’s Laboratories, Cipla, Lupin, Zydus Lifesciences.
• Global Competitors: Novartis, Pfizer, Johnson & Johnson, Sanofi.

Competitive Advantages and Disadvantages #

• Advantages: Strong brand reputation, access to Abbott’s global R&D, diverse product portfolio, established distribution network.
• Disadvantages: Intense competition in the Indian pharmaceutical market, pricing pressures, regulatory challenges.

How They Differentiate From Competitors #

• Focus on quality and innovation, leveraging Abbott’s global expertise.
• Strong brand recognition and trust among healthcare professionals and patients.
• A diversified product portfolio catering to various therapeutic areas.

Future Outlook #

Expansion Plans or Growth Strategy #

• Focus on expanding its presence in key therapeutic areas.
• Leveraging digital technologies to improve patient access and engagement.
• Exploring opportunities for strategic partnerships and acquisitions.

Sustainability Initiatives or ESG Commitments #

• Abbott, as a global company, emphasizes sustainability. Information on Abbott India’s specific ESG initiatives will be available on their company website or in company publications.

Industry Trends Affecting Their Business #

• Increasing healthcare expenditure in India.
• Growing prevalence of chronic diseases.
• Rising demand for generic and branded generic pharmaceuticals.
• Digitalization of healthcare.

Long-Term Vision and Strategic Goals #

• To be a leading healthcare company in India, committed to improving the health and well-being of the Indian population.
• Focus on innovation, quality, and patient-centric solutions.

Financial Performance Analysis #

3-Year Trend Analysis of Key Financial Metrics #

• Revenue from Operations: Increased from ₹5,348.73 crores in FY 2022-23 to ₹5,848.91 crores in FY 2023-24. CAGR between 2015 and 2024 is 9.7%.
• Profit Before Tax (PBT): Increased from ₹1,273.82 crores in FY 2022-23 to ₹1,617.75 crores in FY 2023-24.
• PAT margin: Increased from 17.8% (2023) to 20.5% (2024).
• Profit After Tax (PAT): Increased from ₹949.41 crores in FY 2022-23 to ₹1,201.22 crores in FY 2023-24.
• EBITDA: Increased from ₹1,360 crores in FY 2022-23 to ₹1,701 crores in FY 2023-24. CAGR between 2015 and 2024 is 16.8%.
• Earnings Per Share (EPS): Increased from ₹446.78 in FY 2022-23 to ₹565.28 in FY 2023-24.
• Dividend Per Share: Increased from ₹180.00 (with a special dividend of 145.00) in FY 2022-23 to ₹410 in FY 2023-24.
• Return on Net Worth: Increased from 31.6% in FY 2022-23 to 34.9% in FY 2023-24.
• Debtors Turnover (Days): Decreased from 20.6 days in FY 2022-23 to 19.9 days in FY 2023-24.
• Inventory Turnover (Days): Decreased from 82.0 days in FY 2022-23 to 71.9 days in FY 2023-24.
• Book Value per share 10-year CAGR: 14.7%

Business Segment Performance #

All figures are growth compared to the previous financial year

• Gastroenterology (GI): Growth of 10%, driven by brands like Udiliv, Duphalac, Cremaffin Plus, and Creon.
• Women’s Health: Growth of 1.8%, affected by competition from generics, but with continued focus on omnichannel campaigns.
• Metabolics: Growth of 12%, primarily driven by the success of Thyronorm.
• Central Nervous System (CNS): Growth of 9.2%, led by Vertin.
• Vaccines: Growth of 2.6%, with a focus on improving pediatric vaccination rates, particularly for influenza.
• Multi-Specialty: Growth of 11.8%, with contributions from Zolfresh, Arachitol, Brufen, and Duvadilan.

Major Strategic Initiatives #

• Therapy shaping: Focused efforts to accelerate growth of existing brands and future launches through in-depth market analysis.
• Beyond-the-pill patient support: Expansion of patient support programs, such as for menopause, to improve therapy adoption and adherence.
• Multi-channel doctor engagement: Expansion of reach within the medical community through physical and digital touchpoints.
• Portfolio depth increase: Commitment to launching new products and capitalizing on the loss of exclusivity of key brands.
• Launch of 8 new products during FY 2023-24 across different therapeutic areas.
• STEM Education: Programs to empower over 4,600 children

Risk Landscape #

• The Indian pharmaceutical industry operates in a highly regulated environment with stricter rules for clinical trials and new drug development.
• Growing competition from generic medicines, dependence on imports for APIs, and supply chain disruptions are identified as challenges.
• Enforcement of UCPMP 2024 requires adherence to ethical marketing practices.

ESG Initiatives and Metrics #

• Environmental Stewardship: Efforts to minimize environmental footprint are aligned with global sustainability targets for 2030.
• Zero Waste to Landfill: Goa Plant retained its certification.
• Waste Management: Approximately 65% of non-hazardous waste at the Goa plant was repurposed, 35% recycled. 99% of hazardous waste was safely disposed through co-processing. ~1,200 metric tons of plastic waste were collected and processed.
• Energy Conservation: Goa plant produced 285,764 kWh of power from solar panels, reducing carbon emissions by 198 metric tons. A 1% reduction in energy consumption was achieved.
• Water Conservation: Treated effluent is repurposed, saving 16,098 kiloliters of water annually.
• Social Initiatives: Upgraded 127 PHCs to Health and Wellness Centers across 10 states, impacting over 140,000 patients. Supported over 4,600+ children from underserved communities with STEM education and health awareness.
• Governance: Emphasizes responsible corporate governance, strict compliance, and ethical conduct, supported by a strong governance structure and risk management framework.

Management Outlook #

• The pharmaceutical industry is projected to maintain its growth rate.
• Aims to continue growing volumes and market share in 2024-25.
• Key drivers for future growth will be therapy shaping, beyond-the-pill patient support, multi-channel doctor engagement, and increasing portfolio depth.
• Continued focus on launching new products and expanding into allied therapy areas.

Detailed Analysis #

Risk Assessment of Abbott India Limited #

Strategic Risks #

• Severity: High
• Likelihood: Medium
• Trend: Increasing
• Mitigation Strategies:
  • Diversified product portfolio across multiple therapeutic areas.
  • Continuous investment in building brands and shaping therapies.
  • Focus on unmet needs through new product development.
  • Expansion in neighboring countries.
  • Building partnerships with distributors, institutions, and healthcare professionals.
• Control Effectiveness: Partially Effective
• Potential Financial Impact: Significant. Loss of market share could lead to reduced revenue and profitability.

Operational Risks #

• Severity: Medium
• Likelihood: Medium
• Trend: Stable
• Mitigation Strategies:
  • High-quality manufacturing with stringent standards.
  • Widespread and effective distribution network.
  • Experienced sales and marketing team with digital engagement tools.
  • Robust internal control framework and documented standard operating procedures.
  • EHS programs for safety.
• Control Effectiveness: Effective
• Potential Financial Impact: Moderate. Disruptions can lead to increased costs and potential loss of sales.

Financial Risks #

• Severity: Low to Medium
• Likelihood: Low
• Trend: Stable
• Mitigation Strategies:
  • Enterprise Risk Management (ERM) process to address risks.
  • Risk management practices integrated into business operations.
  • Strong internal control framework to safeguard assets.
  • Compliance Committee, Whistle-Blower mechanism.
• Control Effectiveness: Strong
• Potential Financial Impact:
  • Debtors Turnover (Days): (3.4%).
  • Interest Coverage Ratio: 62.2% (Increase)
  • Operating Profit Margin: 15.8% (Increase)
  • Net Profit Margin: 15.2% (Increase)
  • Return on Net Worth: 10.4% (Increase)

Compliance/Regulatory Risks #

• Severity: High
• Likelihood: Medium
• Trend: Increasing
• Mitigation Strategies:
  • The Company has strong compliance processes in place.
  • The Company has a Vigil Mechanism/ Whistle-Blower Policy, the ‘Abbott India Limited-Procedure for Internal Investigations’.
  • Continuous monitoring of regulatory changes.
  • Engagement with trade associations, academic institutions, healthcare experts, and government bodies.
• Control Effectiveness: Partially Effective
• Potential Financial Impact: The Company had an instance of exceeding foreign investment sectoral cap, requiring compounding application to RBI.

Emerging Risks #

• Severity: Medium to High
• Likelihood: Medium
• Trend: Increasing
• Mitigation Strategies:
  • The Company will keep using data and digital tech to better diagnosis, treatment, and personalized care.
• Control Effectiveness: Not mentioned.
• Potential Financial Impact: Not directly quantifiable from provided information.

Abbott India Limited: Strategic and Management Analysis #

Long-Term Strategic Goals and Progress #

• Abbott India aims for sustainable, market-beating growth, focusing on volume-driven expansion and increasing market share.
• The Company prioritizes therapy shaping to accelerate its existing brands and future product launches.
• Building a comprehensive patient support system and increasing portfolio depth are areas of concern.
• Upgrading Primary Healthcare Centers (PHCs) to Health and Wellness Centers (HWCs) demonstrates a commitment to improving healthcare access in underserved communities.

Competitive Advantages and Market Positioning #

• Abbott India holds a leadership position in multiple therapeutic areas, with 7 brands in the Top 100 and 11 brands in the Top 300 of the Indian Pharmaceutical Market (IPM).
• 12 brands rank first in their Respective Participated Markets (RPMs).
• The Company has shown consistent above-market growth, outperforming the IPM.
• A diversified product portfolio across various therapeutic areas (Gastroenterology, Women’s Health, Metabolics, Central Nervous System, Vaccines, Multi-Specialty) provides a competitive edge.
• A widespread and effective distribution network, reaching numerous stockists and retailers, enhances market penetration.

Innovation Initiatives and R&D Effectiveness #

• The Company launched 8 new products during FY 2023-24, indicating a focus on innovation.
• There is a continuous assessment of customer needs to identify gaps and unmet needs.
• ‘Beyond-the-pill’ offerings, such as patient education, disease management programs, and health clinics, are significantly scaled up.
• R&D expenditure for FY 2023-24 was ‘1.22 Crores (0.02% of the total turnover).
• 14 clinical studies were conducted and 14 articles were published in major indexed journals, demonstrating a commitment to evidence-based medicine.

Management’s Track Record in Execution #

• Revenue growth of 9.4% and Net Profit growth of 26.5% over the prior year showcase strong financial performance.
• Consistent surpassing of industry growth benchmarks demonstrates effective execution of business strategies.
• Successful launch of new products and scaling up of ‘beyond-the-pill’ offerings indicate strong operational capabilities.
• Investments in training and capability-building initiatives for the sales force reflect a focus on future-ready talent.

Capital Allocation Strategy #

• The Board recommended a final dividend of ’ 410 per share for FY 2023-24, demonstrating a shareholder-friendly approach.
• Return on Average Capital Employed was 34.9% for FY 2023-24
• The Board is prioritizing long-term prosperity.

Organizational Changes and Their Impact #

• Vivek V Kamath resigned as Managing Director, and Swati Dalal was appointed as the new Managing Director, effective April 1, 2024.
• Sridhar Kadangode was appointed as Chief Financial Officer effective July 1, 2023.
• Sangeeta Shetty was appointed as Company Secretary and Compliance Officer effective September 14, 2023.
• Establishment of Employee Resource Groups (ERGs) focusing on PRIDE and disABILITY reflects a commitment to diversity and inclusion.
• Launch of the Abbott disABILITY Network in India.

ESG Analysis: Abbott India Limited #

Environmental Metrics and Targets #

• Energy Conservation: In FY 2023-24, the Goa plant generated 285,764 kWh of power from solar PV panels, reducing carbon emissions by 198 metric tons. Energy-saving measures achieved a 1% reduction in energy consumption (180 kWh per day) without additional CAPEX.
• Water Conservation: Repurposing of rejected water from the Reverse Osmosis (RO) process saves 16,098 kiloliters of water annually.
• Waste Management: 65% of non-hazardous waste at the Goa plant was repurposed, and 35% was recycled. 99.3% of hazardous waste was disposed of through co-processing in cement factories, 0.3% was recycled,0.7% incinerated without energy recovery. Approximately 1,200 metric tons of plastic waste were collected and processed. The Goa plant is certified as “Zero Waste to Landfill”.
• CO2 Emission: CO2 Emission total at Goa Plant was 4.691 MT

Social Responsibility Programs #

• Healthcare Access: Upgraded 127 Primary Healthcare Centers (PHCs) to Health and Wellness Centers (HWCs) across 10 states, in collaboration with Americares India Foundation.
• STEM Education: Supported over 4,600+ children from under-resourced communities in Mumbai with STEM labs and health education, in partnership with Smile Foundation.
• NCD Management: Partnered with the Self-Employed Women’s Association (SEWA) to provide NCD prevention, diagnosis, and treatment in 43 districts, impacting over 140,000 patients.
• Health Awareness Programs: Provided increased healthcare access and disease awareness through health experts.

Governance Structure and Effectiveness #

• Board Composition: The Board has 9 directors: 1 Executive, 5 Non-Executive, and 3 Independent. The Board has 4 female directors.
• Board Committees: The Board operates with defined committees: Audit, Nomination and Remuneration, Stakeholders Relationship, Corporate Social Responsibility, and Risk Management.
• Risk Management: The company has an enterprise risk management process that includes risk identification, mitigation, and a Business Continuity Plan.
• Internal Control Framework: There are documented standard operating procedures, policies, and guidelines, regularly assessed for effectiveness.
• Ethics and Compliance The company has code of business conduct that require annual certification by all employees.

Sustainability Investments and ROI #

• CSR Expenditure: Spent ₹ 24.08 Crores on CSR programs in FY 2023-24, exceeding the 2% of average net profit requirement (₹ 21.84 Crores). The excess amount spent for the financial year, that can be available for set off is ₹ 2.86 crores.
• Energy Conservation: Invested in solar PV panel system.
• Environmental Projects: No specific financial ROI data is provided for environmental projects, only outputs (e.g., KWH of power generated, metric tons of CO2 emissions reduced).

Regulatory Compliance and Future Preparations #

• UCPMP Compliance: The Company is well-positioned to meet the requirements of the Uniform Code for Pharmaceutical Marketing Practices (UCPMP) 2024.
• Plastic Waste Management: Adheres to Plastic Waste Management Rules, with agreements for post-consumer plastic packaging waste collection and processing.
• Secretarial Audit Report: The Report observed that the name of the Company continues to appear in the breach list displayed on the website of the Depositories and BSE Limited for having foreign investment in excess of prescribed sectoral cap.
• Cost Audit Report: The Cost Audit Report for FY 2022-23 was filed with the Ministry of Corporate Affairs before the due date.
• Secretarial Standard The board declares that the company has complied with the applicable Secretarial Standards.
• POSH Compliance: The Company states compliance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, with 3 complaints received and closed during the year.

Future Projections and Guidance #

Management Guidance and Assumptions #

• Management consistently demonstrates above-market growth in the Indian Pharmaceutical Market (IPM).
• Management’s strategy is focused on providing scientific, trusted products with expert clinical support.
• Management assumes the ability to leverage customer insights, expand geographically, and offer a comprehensive “pill plus service” approach.
• The strategy uses digital to improve engagement.

Market Growth Forecasts #

• The Indian Pharmaceutical Market (IPM) grew by 7.6% in FY 2023-24, reaching an estimated ₹2,16,092 Crores (IQVIA data).
• The pharmaceutical industry is projected to maintain its growth rate in the foreseeable future.

Planned Strategic Initiatives #

• Therapy Shaping: Accelerate growth of existing pillar brands and future product launches through in-depth market analysis.
• Beyond-the-Pill Patient Support: Expand patient engagement programs for education, counseling, and compliance, especially in areas like menopause. Collaborations with industry players and startups are planned.
• Multi-Channel Doctor Engagement: Expand reach within the medical community through physical and digital touchpoints. Enhance knowledge platforms for doctors.
• Increase Portfolio Depth: Launch new products in strategic therapeutic areas and capitalize on the loss of exclusivity of critical brands. A robust new product pipeline is in development.
• Geographic Expansion: Focus on Tier 2 and Tier 3 market penetration.
• Focus on consumerization through digital, social, offline, and omnichannel campaigns.

Efficiency Improvement Targets #

• Goa Plant: Achieved a 1% reduction in energy consumption (equivalent to 180 kWh per day) without additional CAPEX investments.
• Manufacturing: Introduced Overall Equipment Efficiency (OEE) in granulation, compression, and packaging, leading to a 25% reduction in changeover time, line clearance time, documentation, and testing.

Potential Challenges and Opportunities #

• Challenges:
  • Growing competition from generic medicines.
  • Dependence on imports for Active Pharmaceutical Ingredients (APIs).
  • Supply chain disruptions.
  • Stricter regulations for clinical trials and new drug development.
  • Foreign investment is in excess of the permitted cap.
• Opportunities:
  • Union Budget’s emphasis on pharmaceutical research and innovation through Centers of Excellence.
  • Growth of co-marketing agreements between foreign companies and local partners.
  • Emergence of e-pharmacy and pharmacy chains, projected to increase e-commerce penetration to 11% by FY 2024-25.
  • Proposed new OTC product distribution policy by the Union Government.
  • Ayushman Bharat Digital Mission (ABDM) to create a connected healthcare ecosystem.
  • Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) to expand healthcare access.
  • Enforcement of Uniform Code for Pharmaceutical Marketing Practices (UCPMP).
  • Growing consumer trend towards preventative care and maintaining health.

Audit and Compliance Analysis #

Auditor’s Opinion and Qualifications #

• S R B C & CO LLP, Chartered Accountants, issued an unmodified opinion on the financial statements, stating they give a true and fair view in conformity with generally accepted accounting principles in India.

Key Accounting Policies and Changes #

• The financial statements are prepared on a historical cost basis, except for certain financial assets and liabilities measured at fair value.
• The company has adopted the ‘Procedure for Internal Investigations as a part of the Whistle-Blower Policy’ for reporting violations of the Abbott Code of Business Conduct.
• Revenue from the sale of products is recognized when control of the goods transfers to the customer, generally upon delivery.
• Provisions for sales returns are estimated based on historical experience, market conditions, and specific contractual terms.
• Inventories are valued at the lower of cost (determined on a FIFO basis) and net realizable value.
• Property, plant, and equipment are depreciated using the straight-line method over their estimated useful lives.
• The Company uses its incremental borrowing rate to measure lease liabilities.
• The going concern basis of accounting is used unless management intends to liquidate the company or cease operations.
• R&D expenditures is 0.02% of total revenue.

Internal Control Effectiveness #

• Management assessed the internal controls over financial reporting and believes they are working efficiently and effectively.
• Statutory auditors confirmed the adequacy of the internal controls over financial reporting and their operating effectiveness.
• The Company has an internal audit function performed by KPMG Assurance and Consulting Services LLP, and reports are presented to the Audit Committee quarterly.
• The Company’s accounting software records audit trails with limited exceptions for privileged/ administrative access and a daily back-up for data is available.
• The Company implemented a comprehensive induction program called ‘EMERGE, a three-tier certification program has been introduced.

Regulatory Compliance Status #

• The Company has complied with the provisions of the Companies Act, 2013, SEBI Listing Regulations, and Secretarial Standards.
• The Company appeared in the breach list displayed on the websites of Depositories and BSE Limited for having foreign investment in excess of the sectoral cap. The Company has received post-facto approval, and compounding of the offence with the Reserve Bank of India (RBI) is under further government examination.
• The Company claims compliance with the Uniform Code for Pharmaceutical Marketing Practices (UCPMP).
• The Company complied with applicable environmental laws, regulations, and industry standards. Zero waste to Landfill Goa Plant retains its certification.
• The Company has adhered to the requirements of Plastic Waste Management Rules.
• The company complied with the provisions under The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013, during the year under review.

Legal Proceedings and Their Potential Impact #

• A tax penalty of ’ 1.69 Crores was levied by GST Tax authorities for the period from July 2017 to March 2020. The Company has appealed the decision.
• Customs authorities levied Customs Duty and imposed penalties and a redemption fine, totaling to ’ 75.2 Crores. The Company has appealed the decision.
• Contingent liabilities exist for various tax claims not acknowledged as debts.
• 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.

Related Party Transactions #

• All related party transactions during FY 2023-24 were pre-approved by the Independent Directors and Audit Committee and were at arm’s length.
• Material related party transactions, if any, are approved by the shareholders.
• Purchases from related parties were 14.02% of total purchases.
• Sales to related parties were 1.63% of total sales.
• The Company’s Holding Company is Abbott Capital India Limited, UK, and the Ultimate Holding Company is Abbott Laboratories, USA.

Subsequent Events #

• The Board recommended a final dividend of ’ 410 per share, subject to shareholder approval.
• Appointment of Ms Alison Davies (DIN : 10658884) as Director, liable to retire by rotation, subject to the approval of shareholders.

Analysis of Accounting Quality #

• The use of historical cost basis accounting, with exceptions for fair value measurements of certain financial instruments, indicates a standard approach.
• Estimates and judgments are used in determining provisions for sales returns, and allowance for credit impaired debts, indicating a degree of subjectivity.
• The consistent application of accounting policies suggests reliability.

Regulatory Risk Assessment #

• The primary regulatory risk arises from the pending compounding with the RBI regarding excess foreign shareholding.
• Ongoing legal and tax disputes represent a moderate risk, as the Company is contesting claims and has sought advice from the professional counsel.
• The high level of compliance with corporate governance and disclosure requirements indicates a proactive approach to regulatory risk management.