Philips India Limited Unlisted Shares

Annual Report Summary

The Philips India Limited Annual Report for 2020-21 details the company’s financial performance, strategic decisions, and corporate governance matters. The report emphasizes making care accessible and affordable.

Financial Performance:

• Sales: Showed steady growth from ₹36,723 million in 2016-17 to ₹48,070 million in 2020-21.
• Profit Before Tax: Increased from ₹3,252 million in 2016-17, peaking in 2017-18 at ₹2,667 million, then showing modest variations to ₹2,531 million in 2020-21.
• Net Worth: Displayed consistent growth from ₹20,025 million in March 2017 to ₹23,950 million in March 2021.
• Current Assets: Increased steadily from ₹12,105 million in March 2017 to ₹22,851 million in March 2021.
• Activities Contribution to Sales (Apr 2020 - Mar 2021): Health Systems contributed 40.5%, Innovation Services 30.7%, and Personal Health 28%. Others accounted for 0.8%.
• The Directors recommend a dividend payment of ₹3 per share for the financial year ended March 31, 2021, absorbing ₹173 million.

Corporate Governance & Operational Matters:

• Board of Directors: Includes S.M. Datta (Chairman), Daniel Mazon (Vice Chairman and Managing Director), Pooja Bedi (Whole-Time Director and Company Secretary), Sudeep Agrawal (Whole-Time Director and CFO), and Geetu Gidwani Verma (Non-Executive Independent Director).
• Annual General Meeting (AGM): The 91st AGM will be held on Friday, September 24, 2021, via video conferencing. Members can vote electronically. Proxy appointments are not available for this AGM.
• Re-appointments/Appointments: Sudeep Agrawal is retiring by rotation and offers himself for reappointment. Re-appointment of S.R. Batliboi & Co. LLP as Statutory Auditors is proposed. Ms. Geetu Gidwani Verma is proposed for reappointment as a Non-Executive Independent Director. Ms. Pooja Bedi's appointment as a Director and Whole-Time Director is up for shareholder approval.
• Remuneration Revisions: Revisions in remuneration for Mr. Daniel Mazon and Mr. Sudeep Agrawal are proposed, subject to shareholder approval.
• Cost Auditors: Remuneration for cost auditors M/s. R. Nanabhoy & Company is up for approval.

COVID-19 Pandemic Response:

• The company established task forces, provided support to customers, implemented stringent safety measures for field service engineers, and offered updated clinical guidance.
• Employee health and wellbeing were prioritized, with home office setup reimbursement, flexible work guidelines, broadband reimbursement, and COVID-19 homecare/hospitalization expense coverage.

Business Performance & Strategic Initiatives:

• Health Systems business showed strong performance driven by Image Guided Therapy and Connected Care. The Health Systems Equipment Market Share increased by 1.9% (Quarter one of 2020-21).
• Personal Health business experienced transformation, delivering 16% growth despite challenges.
• Philips Innovation Campus, Bengaluru (PIC-B), remains a key software research and development organization, focusing on AI, machine learning, and cloud-based solutions. It is shifting to become an E2E Digital Solutions partner.
• The Domestic Appliances (DA) business is being separated, with a proposed plan to transfer the business to Philips Domestic Appliances India Limited (approved by the Board and shareholders). It will stand transferred to and vested with Philips Domestic Appliances India Limited with effect from the appointed date i.e. July 1, 2021.

Corporate Social Responsibility (CSR):

• CSR focus is on healthcare and related development issues, particularly maternal & child health and mental health.
• The company worked with various NGO partners.
• ₹36.59 million was spent on CSR projects, with ₹19.40 million transferred to the Unspent CSR Account.

Financial Disclosures & Compliance:

• Provides extensive notes on standalone and consolidated financial statements, including details on property, plant, and equipment; investments; financial instruments; equity; and liabilities.
• Includes details on compliance with accounting standards, director responsibility, and auditor reports.
• Reports on a fraud involving employees and vendors, and the actions taken to investigate and recover losses. The Hon'ble Court has rejected the anticipatory bail applications of all the accused persons.
• States that your Directors have approved the appointment and remuneration of a firm of cost accountants to conduct a Cost Audit for the year ending March 31, 2022.

Other Key Points:

• Internal control systems and their adequacy are continuously monitored.
• The company is focused on developing its workforce, shaping an inclusive environment, and empowering its people.
• The Company has a diverse team in Talent Acquisition with capabilities like Talent Intelligence, Talent Research and Recruitment Marketing which helps it to have a robust hiring and On-boarding process and ensures that it hires great talent who fit well in the organization.

In conclusion, Philips India Limited demonstrated resilience and growth in 2020-21, balancing business objectives with social responsibility and adapting to the challenges presented by the pandemic.