Philips India Limited Unlisted Shares

Annual Report Summary

Impact with Care - Philips India Limited Annual Report 2023-24 Summary

Financial Highlights (FY 2023-24):

• Sales: Total sales reached ₹59,374 million, with Health Systems contributing 48%, Innovation Services 38%, and Personal Health 13%. Others contribute 1%.
• Profit Before Tax: Increased to ₹3,269 million, a 1.9% growth compared to the previous year.
• Net Worth: Total net worth increased to ₹14,896 million.
• Capital Expenditure: Substantially increased to ₹6,201 million, allocated towards expanding HIC capacity, establishing a new PIC facility, and upgrading IT equipment.
• Retained Earnings: Increased by ₹2,553 million, reaching a total of ₹14,321 million.
• Cash Balance: Increased to ₹2,728 million.

Notice of Annual General Meeting (AGM):

• The 94th Annual General Meeting will be held on Friday, September 27, 2024, at 11:30 A.M. via Video Conference (VC) / Other Audio Visual Means (OAVM).
• Key agenda items include: Adopting the financial statements, approving the appointment of Mr. Dev Kumar Tripathy as a director and as a Whole-time Director, appointing Mr. Angarai Dorairajan Aditya Ratnam and Mr. Harish Chawla as Directors, appointing Mr. Bharath Ram Raman Sesha as a Director and as Managing Director, and approving the remuneration of cost auditors.

Board of Directors & Key Personnel Changes:

• Appointments:
  • Mr. Bharath Ram Raman Sesha to Managing Director effective September 1, 2024.
  • Mr. Dev Kumar Tripathy as Whole-time Director and Chief Financial Officer.
  • Mr. Angarai Dorairajan Aditya Ratnam and Mr. Harish Chawla as Directors.
• Resignations:
  • Mr. Daniel Mazon and Mr. Sudeep Agrawal from the position of Whole-time Director and Chief Financial Officer.
  • Ms. Pooja Bedi resigned from the position of Whole-time Director and Company Secretary.
  • Mr. S.M. Datta as Independent Director
• Composition:
  • A.D.A. Ratnam is the Non-Executive Independent Director-Chairman
  • Geetu Gidwani Verma is the Non-Executive Independent Director
  • Dev Kumar Tripathy is the Whole - Time Director and Chief Financial Officer
  • Harish Chawla is the Whole - Time Director
  • Bharath Ram Raman Sesha is the Managing Director effective from September 1, 2024

Business Performance:

• Health Systems: Delivered strong performance despite global economic headwinds. Focus on sales, distribution, contract manufacturing, and R&D for Philips Group in India. Launch of new MRI and Spectral CT technologies.

• Personal Health: Faced a challenging environment with intense competition. Launched new products like Philips Nourish Care hair straightener. Leveraged digital marketing and celebrity endorsements to build brand relevance.

• Philips Innovation Campus (PIC): Established in 1996 in Bengaluru, serves as a software research and development organization for Royal Philips. Hosts over 4400 professionals. Focuses on AI-based solutions, smartphone data analytics, and digital health solutions. Sales amounted to ₹22,700 million. Material Changes and Commitments:

• The company's application for equity share capital reduction remains pending in NCLT.

• A demand notice from EPFO was received; the Company filed a writ petition with the Karnataka High Court challenging this. The court has ordered a stay on the said demand.

Corporate Social Responsibility (CSR):

• Philips India focuses on healthcare and related issues, particularly for women, children, and adolescents.
• CSR programs aim to improve healthcare access for disadvantaged communities through multi-year projects and awareness campaigns.
• Collaborates with NGOs such as Smile Foundation and PCOS Society of India.
• CSR amount spent for the Financial Year Rs. 53,351,453

Other Key Points:

• The report includes details on board meetings, audit committee, CSR committee, stakeholders' relationship committee, and nomination and remuneration committee activities.
• Internal control systems are considered adequate.
• The Board of Directors confirms compliance with all applicable laws and regulations.
• Focus on workforce transformation, cultural evolution, and employee empowerment.
• Details provided on remote e-voting procedures for the Annual General Meeting.
• Company is committed to continue the program to prevent sexual harassment of women.