Philips India Limited Unlisted Shares

Annual Report Summary

The document is the Annual Report for Philips India Limited for the year 2022-23. It outlines the company's financial performance, strategic initiatives, and corporate governance practices. The report emphasizes "Making Care Accessible & Affordable" as its key mission.

Financial Highlights (2022-23):

• Sales: Increased to ₹56,682 million from ₹54,290 million in the previous year.
  • Health Systems contributed 47% of sales.
  • Innovation Services contributed 38%.
  • Personal Health contributed 14%.
  • Other activities contributed 1%.
• Profit Before Tax: Decreased to ₹3,208 million from ₹3,642 million in the previous year.
• Net Worth: ₹22,775 million
• Interim Dividend: ₹222 per share was declared. No final dividend was recommended.
• Retained Earnings: Showed a decline, mainly due to the interim dividend payout.
• Cash in Hand: At year end was ₹2,118 million.

Key Areas of Business Performance:

• Health Systems: A modest performance considering global economic headwinds and a high single-digit degrowth in the addressable market.
• Personal Health: Marginal growth of 7.5% despite economic volatility and competitive pressures. New product ranges were launched, focusing on consumer centricity and digital engagement.
• Innovation Campus (PIC-B), Bengaluru: Played a critical role in developing cutting-edge technologies, software solutions, and patient-centric healthcare solutions and also is emerging as a Digital Solutions partner for the Businesses, Markets & customers.

Strategic Objectives & Initiatives:

• Building a sustainable business for long-term value creation, focusing on agility, leveraging brands and product expertise, and driving market development.
• Emphasis on "Make in India" initiatives and innovation through Bangalore (PIC) and Pune (HIC) centers.
• Digital transformation to maintain competitive edge.
• Focus on continuous improvement of products, services, and operational efficiency.

Corporate Governance & Compliance:

• The Board of Directors consists of a mix of executive and non-executive independent directors, including S.M. Datta (Chairman), Daniel Mazon (Vice Chairman and Managing Director), Pooja Bedi (Whole-Time Director & Company Secretary), and Sudeep Agrawal (Whole-Time Director and Chief Financial Officer).
• The report details the constitution and meetings of various board committees, including the Audit Committee, Corporate Social Responsibility Committee, Stakeholders' Relationship Committee, and Nomination and Remuneration Committee.
• The Company affirms compliance with Secretarial Standards and the Prevention, Prohibition and Redressal against Sexual Harassment of Women Employees at Workplace Policy.
• Details regarding the upcoming Annual General Meeting (AGM), including e-voting procedures, are provided.
• Internal financial controls are deemed adequate and operating effectively.
• The Company has appointed Dr. Asim Kumar Chattopadhyay as the Scrutinizer for the AGM through VC/OAVM.
• Auditors M/s S.R. Batliboi & Co. LLP were re-appointed.
• Internal review and benchmarking on processes, policies, infrastructural changes, required to provide “reasonable accommodation” to Persons with Disabilities (PwD)

Human Resources & Employee Relations:

• Focus on workforce development, inclusive environment, and empowering employees.
• Emphasis on strategic workforce planning, talent development, and leadership programs.
• Commitment to diversity and inclusion, including initiatives for women and the LGBTQ+ community.

Corporate Social Responsibility (CSR):

• CSR focus on healthcare and related issues, specifically maternal, child, and adolescent health.
• Collaborations with NGOs like Smile Foundation and PCOS Society of India.
• The company’s CSR policy is accessible via its website.

Financial Statement Details:

• Balance Sheet, Statement of Profit and Loss, Statement of Changes in Equity, and Cash Flow Statement are included.
• Detailed notes on accounting policies, key estimates, financial instruments, and segment information are provided.
• Information on related party transactions, remuneration of key personnel, and contingencies is disclosed.

Key Financial Ratios (FY 2022-23):

• Current Ratio: 1.40
• Return on Equity: 14.81%
• Net Capital Turnover Ratio: 9.14
• Net Profit Ratio: 4.53%
• Return on Capital Employed: 23.99%
• Return on Investment: 6.86%