Abbott India Ltd. — Annual Report 2021

May 18, 2021

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Abbott India Limited Registered Office: Tel: (91-22) 5046 1000/2000 Godrej BKC, Plot C-68,”G”Block, 3, Corporate Park, Fax : (91-22) 5016 9400 15-16th Floor, Bandra-Kurla Complex, Sion Trombay Road, E-mail : webmasterindia@abbott.com Near MCA Club, Bandra (E), Mumbai - 400 071.India Website : www.abbott.co.in Mumbai - 400 051. India CIN: L24239MH1944PLC007330

BSE Limited Corporate Relationship Department Phiroze Jeejeebhoy Towers Dalal Street Mumbai 400 001

May 18, 2021

Scrip Code: 500488

Dear Sirs,

Sub: Audited Financial Results for the quarter and year ended March 31, 2021 under Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

Pursuant to Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby enclose a copy of the Audited Financial Results of the Company for the quarter and year ended on March 31, 2021 along with Statement of Assets and Liabilities as on that date and Statement of Cash Flow, as approved by the Board of Directors at its Meeting held today i.e. May 18, 2021, along with the Auditor’s Report issued by S R B C & CO LLP, Statutory Auditors of the Company.

Further, pursuant to Regulation 33(3)(d) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby declare that, S R B C & CO LLP, Statutory Auditors have issued the Audit Report with unmodified opinion for the year ended March 31, 2021.

The Meeting of the Board of Directors of the Company commenced at 12.00 Noon and concluded at 2.30 p.m.

This is for your information and records.

Thank you.

Yours faithfully,

Abbott India Limited

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Krupa Anandpara Company Secretary Membership No.: ACS 16536

Encl: a/a

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1. STATEMENT OF AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2021

(Rs. in Crores except earnings per share)

Particulars 1 Income (a) Revenue from operations (b) Other income Total Income 2 Expenses (a) Cost of materials consumed (b) Purchases of stock-in-trade (c) Changes in inventories of finished goods, stock-in- trade and work-in-progress (d) Employee benefits expense (e) Finance costs (f) Depreciation and amortisation expense (g) Other expenses Total Expenses 3 Profit before tax (1-2) 4 Tax expenses (a) Current tax expense (b) Tax adjustment for earlier years (c) Deferred tax expense/(credit) Total Tax Expenses 5 Profit for the period (3-4) 6 Other Comprehensive Income Items that will not be reclassified subsequently to Profit or Loss Income tax on above Total Other Comprehensive Income, net of tax 7 Total Comprehensive Income for the period, net of tax (5+6) 8 Paid-up Equity Share Capital (Face Value of Rs.10 per Equity Share) 9 Other Equity 10 Earnings per equity share - Basic/Diluted (of Rs.10/- each) (not annualised) (5/8)

March 31, December 31, March 31, March 31, March 31, 2021 2020 2020 2021 2020 Audited Unaudited Audited Audited Audited Refer Note 3 Refer Note 3 1,095.54 1,095.37 961.20 4,310.02 4,093.14 16.20 15.01 28.13 80.90 114.39 1,111.74 1,110.38 989.33 4,390.92 4,207.53 106.56 100.61 139.27 454.32 451.76 541.52 459.80 486.25 2,040.60 1,802.63 (41.92) 39.29 (69.92) (104.00) 61.24 121.24 119.64 116.31 492.65 476.11 4.74 4.31 2.82 18.28 8.53 15.11 14.64 14.81 58.13 59.61 162.61 134.21 150.86 504.99 544.95 909.86 872.50 840.40 3,464.97 3,404.83 201.88 237.88 148.93 925.95 802.70 52.05 62.20 36.76 242.76 208.04 (3.71) - - (3.71) 0.25 1.07 (1.46) 1.20 (3.79) 1.48 49.41 60.74 37.96 235.26 209.77 152.47 177.14 110.97 690.69 592.93 9.64 (2.66) (2.98) 1.67 (5.41) (2.43) 0.67 0.75 (0.42) 0.45 7.21 (1.99) (2.23) 1.25 (4.96) 159.68 175.15 108.74 691.94 587.97 21.25 21.25 21.25 21.25 21.25 - - - 2,580.91 2,410.45 71.75 83.36 52.22 325.04 279.04 Quarter ended Year ended

2. STATEMENT OF ASSETS AND LIABILITIES

(All amounts in Rs. Crores)

Particulars ASSETS Non-current Assets Property, plant and equipment Capital work-in-progress Intangible assets Right-of-use assets Financial assets Loans Other financial assets Deferred tax assets (net) Other non-current assets Total Non-current Assets Current Assets Inventories Financial assets Trade receivables Cash and cash equivalents Bank balances other than cash and cash equivalents Loans Other financial assets Current tax assets (net) Other current assets Total Current Assets TOTAL ASSETS EQUITY AND LIABILITIES Equity Equity share capital Other equity Total Equity Non-current Liabilities Financial Liabilities Lease liabilities Provisions Total Non-current Liabilities Current Liabilities Financial liabilities Lease liabilities Trade payables Due to micro and small enterprises Due to others Other financial liabilities Other current liabilities Provisions Current tax liabilities (net) Total Current Liabilities TOTAL EQUITY AND LIABILITIES Controls

As at As at March 31, 2021 March 31, 2020 Audited Audited 103.65 100.22 0.66 1.64 1.17 0.90 145.96 168.71 14.35 16.78 32.27 36.26 17.81 14.44 6.06 3.25 321.93 342.20 717.59 527.17 250.21 317.91 218.27 145.14 2,190.77 2,052.24 4.95 6.14 52.76 72.38 31.11 26.87 52.86 56.80 3,518.52 3,204.65 3,840.45 3,546.85 21.25 21.25 2,580.91 2,410.45 2,602.16 2,431.70 117.68 139.20 89.75 84.84 207.43 224.04 34.90 35.68 34.26 18.32 728.41 639.45 56.86 50.78 45.00 31.79 115.96 107.45 15.47 7.64 1,030.86 891.11 3,840.45 3,546.85 0.00 0.00

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3. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED MARCH 31, 2021
(All amounts in Rs. Crores)
For the year ended For the year ended
Particulars March 31, 2021 March 31, 2020
Audited Audited
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax 925.95 802.70
Adjustments to reconcile profit before tax to net cash flows :
Depreciation and amortisation expense 58.13 59.61
Unrealised exchange (gain)/loss (net) (3.64) 2.33
Loss on sale/write off of Property, plant and equipment (net) 0.25 0.56
Gain on early termination of leases (0.03) (0.04)
Interest income (79.72) (113.15)
Finance costs 18.28 8.53
Allowance for credit impaired debts 2.80 0.39
Allowance/(write back) for credit impaired advances and deposits 0.09 0.62
Provision for likely sales returns, date expiry and damaged products (net) 19.08 15.16
Share based compensation expense 9.75 8.77
Operating Profit before working capital changes 950.94 785.48
Working capital changes :
(Increase)/ Decrease in Trade receivables 64.78 (41.96)
(Increase)/ Decrease in Inventories (190.42) 79.62
(Increase)/ Decrease in other current and non-current assets 11.93 46.36
Increase/ (Decrease) in Trade payables 108.94 (8.51)
Increase/ (Decrease) in current and non-current liabilities and Provisions 16.03 (5.69)
Cash generated from operations : 962.20 855.30
Income tax paid (including TDS) (net) (235.46) (229.17)
Net cash flows from operating activities (A) 726.74 626.13
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Property, plant and equipment (including capital work-in-progress,
capital creditors and capital advances) (23.31) (15.74)
Proceeds from sale of Property, plant and equipment 0.13 0.17
Investment in fixed deposits maturing beyond 3 months (net) (135.12) (505.97)
Interest received on deposits (interest income) 86.48 120.33
Net cash flows used in investing activities (B) (71.82) (401.21)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid (531.23) (138.12)
-
Dividend distribution tax paid (28.39)
Payment of lease liabilities (50.05) (50.05)
Interest paid, other than on lease liabilities (0.51) (0.23)
Net cash flows used in financing activities (C) (581.79) (216.79)
Net increase/(decrease) in cash and cash equivalents (A+B+C) 73.13 8.13
Cash and cash equivalents at the beginning of the year 145.14 137.01
Cash and cash equivalents at the end of the year 218.27 145.14
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NOTES :

• 1 The above financial results have been reviewed by the Audit Committee and thereafter approved by the Board of Directors at their meetings held on May 18, 2021.

• 2 The financial results have been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS) as amended prescribed under Section 133 of the Companies Act, 2013 read with relevant rules thereunder and in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and SEBI Circular dated July 5, 2016.

• 3 The figures for the quarter ended March 31, 2021 and quarter ended March 31, 2020 as reported in these financial results are the balancing figures between the audited figures in respect of the full financial year and the published year to date figures up to the third quarter of the relevant financial year which were only reviewed and not subjected to audit.

• 4 The Code on Social Security, 2020 (“the Code”) has been published in the Official Gazette in September 29, 2020. The final Rules and effective date are yet to be notified. The Company is assessing the impact of the Code and the rules thereunder and will give appropriate impact of the same in its financial statements, post notification of the same.

• 5 The Board of Directors of the Company have recommended a final dividend of Rs. 120 per equity share of Rs.10 each and special dividend of Rs.155 per equity share of Rs. 10 each for the year ended March 31, 2021 (March 31, 2020 : final dividend of Rs.107 and special dividend of Rs.143), subject to approval of the shareholders at the ensuing Annual General Meeting.

• 6 The Company has only one segment which is 'Pharmaceuticals'. Therefore, disclosure relating to segments is not applicable and accordingly not made. 7 Figures for the previous periods have been regrouped/reclassified wherever considered necessary.

For and on behalf of the Board of Directors of Abbott India Limited ANIL Digitally signed by ANIL JOSEPH JOSEPH Date: 2021.05.18 14:26:46 +05'30' ANIL JOSEPH Place : Mumbai Managing Director Date : May 18, 2021 DIN : 08753233

12th Floor, The Ruby 29 Senapati Bapat Marg Dadar (West) Mumbai - 400 028, India Tel: +91 22 6819 8000

Chartered Accountants

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Independent Auditor’s Report on the Quarterly and Year to Date Audited Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

To The Board of Directors of Abbott India Limited

Report on the audit of the Financial Results

Opinion

We have audited the accompanying statement of quarterly and year to date financial results of Abbott India Limited (the “Company”) for the quarter and year ended March 31, 2021 (“Statement”), attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the “Listing Regulations”).

In our opinion and to the best of our information and according to the explanations given to us, the Statement:

• i. is presented in accordance with the requirements of the Listing Regulations in this regard; and

• ii. gives a true and fair view in conformity with the applicable accounting standards and other accounting principles generally accepted in India, of the net profit and other comprehensive income and other financial information of the Company for the quarter and year ended March 31, 2021.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013, as amended (“the Act”). Our responsibilities under those Standards are further described in the “Auditor’s Responsibilities for the Audit of the Financial Results” section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our opinion.

Management’s Responsibilities for the Financial Results

The Statement has been prepared on the basis of the annual financial statements. The Board of Directors of the Company is responsible for the preparation and presentation of the Statement that gives a true and fair view of the net profit and other comprehensive income of the Company and other financial information in accordance with the applicable accounting standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

S R B C & CO LLP, a Limited Liability Partnership with LLP Identity No. AAB-4318 Regd. Office : 22, Camac Street, Block ‘B’, 3rd Floor, Kolkata-700 016

Chartered Accountants

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In preparing the Statement, the Board of Directors is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Results

Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Statement.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.

• Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the Statement, including the disclosures, and whether the Statement represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Chartered Accountants

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Other Matter

The Statement includes the results for the quarter ended March 31, 2021 being the balancing figures between the audited figures in respect of the full financial year ended March 31, 2021 and the published unaudited year-to-date figures up to the third quarter of the current financial year, which were subjected to limited review by us, as required under the Listing Regulations.

For S R B C & CO LLP Chartered Accountants ICAI Firm Registration Number: 324982E/E300003 RAVI Digitally signed by RAVI BANSAL BANSAL Date: 2021.05.18 13:31:35 +05'30' per Ravi Bansal Partner Membership No.: 49365 UDIN: 21049365AAAABE4479

Place: Mumbai Date: May 18, 2021