Auditor Report of Abbott India Ltd.

Mar 31, 2025

5. We have determined the matter described below to be the key audit matter to be communicated in our report.

Key audit matters

How our audit addressed the key audit matter

Provision for non-saleable return (Refer Note 2.3(l) and 2.3(m) to the accompanying financial statements for material accounting policy information on provision for sales return and Note 17 and 22 for related disclosure) The revenue of the Company consists primarily of sale of products through various distributions channel who further sells products in the market. Due to the nature of its business, the Company gives right of return to its customers in respect of goods expiring while being in supply chain before reaching end consumers. The amounts pertaining to such sales return are estimated at the time of sale and deducted from revenue and recorded as provisions for sales returns.

Our audit procedures relating to provision for non-saleable returns included but were not limited to the following procedures: • Obtained an understanding of management’s process and evaluated the design and tested the operating effectiveness of the key controls in relation to provision for non-saleable returns; • Assessed the appropriateness of the Company’s revenue recognition accounting policy including those related to sales return in accordance with applicable accounting standards; • Obtained management’s calculations for provision for sales return, recalculated the amounts, and evaluated the reasonableness of assumptions used with reference to historical trends of sales returns, level of inventory in distribution channel, shelf life of the products, price change in/new launch of competitive products and other known factors, based on our understanding of the business, past practice, industry trends and forecasts;

Key audit matters

How our audit addressed the key audit matter

These estimates are based on analysis of historical trends of sales return and shelf life of the products along with other known factors that may significantly impact future sales returns. These estimates are complex and requires significant judgement and estimation by the management for establishing an appropriate accrual. The above complexity leads to a risk of revenue being misstated due to inaccurate estimation of such sales return, and hence, it requires significant auditor attention. The management has accounted for provision for sales returns amounting to '' 206.76 Crores as at March 31, 2025 (including reimbursable sales return amounting to '' 65.26 Crores). Considering the complexity, significant management estimates and judgments involved, and the significant auditor attention required to test such management’s judgment and estimates, we have identified this as a key audit matter for the current year.

• Tested unusual non-standard journal entries based on certain criteria’s which impacts provision for sales return recognized during the year; • Evaluated management’s estimates in determining the expected sales return by comparing historical accrued provisions to the actual sales returns and assessed whether the methodology followed is consistent with previous year; • Performed substantive testing on selected samples of credit notes issued to the customers by testing relevant approvals and underlying supporting documents; • T ested the workings in respect of classification of current and non-current provisions for sales return prepared by the management including the underlying assumptions; and • Assessed the appropriateness and adequacy of disclosures made in financial statements in accordance with applicable accounting standards.

1. We have audited the accompanying financial statements
of Abbott India Limited (‘the Company’), which comprise
the Balance Sheet as at March 31, 2025 the Statement
of Profit and Loss (including Other Comprehensive
Income), the Statement of Cash Flow and the Statement
of Changes in Equity for the year then ended, and notes to
the financial statements, including material accounting
policy information and other explanatory information.

2. In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
financial statements give the information required by
the Companies Act, 2013 (‘the Act’) in the manner so
required and give a true and fair view in conformity with
the Indian Accounting Standards (‘Ind AS’) specified
under Section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015 and other
accounting principles generally accepted in India, of the
state of affairs of the Company as at March 31, 2025 and
its Profit (including Other Comprehensive Income), its
Cash Flows and the Changes in Equity for the year ended
on that date.

BASIS FOR OPINION

3. We conducted our audit in accordance with the
Standards on Auditing specified under Section 143(10) of
the Act. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for
the Audit of the Financial Statements 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 (‘ICAI’)
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 we have
obtained is sufficient and appropriate to provide a basis
for our opinion.

KEY AUDIT MATTER

4. Key audit matters are those matters that, in our
professional judgment, were of most significance in our
audit of the financial statements of the current period.
These matters were addressed in the context of our audit
of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate
opinion on these matters.

INFORMATION OTHER THAN THE FINANCIAL
STATEMENTS AND AUDITOR’S REPORT THEREON

6. The Company’s Board of Directors are responsible for
the other information. The other information comprises
the information included in the Annual Report, but does
not include the financial statements and our auditor’s
report thereon. The Annual Report is expected to be
made available to us after the date of this auditor’s
report.

Our opinion on the financial statements does not cover
the other information and we will not express any form
of assurance conclusion thereon.

In connection with our audit of the financial statements,
our responsibility is to read the other information
identified above when it becomes available and, in doing
so, consider whether the other information is materially
inconsistent with the financial statements or our
knowledge obtained in the audit or otherwise appears to
be materially misstated.

When we read the Annual Report, if we conclude that
there is a material misstatement therein, we are required
to communicate the matter to those charged with
governance.

RESPONSIBILITIES OF MANAGEMENT AND
THOSE CHARGED WITH GOVERNANCE FOR THE
FINANCIAL STATEMENTS

7. The accompanying financial statements have been
approved by the Company’s Board of Directors. The
Company’s Board of Directors are responsible for
the matters stated in Section 134(5) of the Act with
respect to the preparation and presentation of these
financial statements that give a true and fair view of
the financial position, financial performance including
Other Comprehensive Income, Changes in Equity
and Cash Flows of the Company in accordance with
the Ind AS specified under Section 133 of the Act and
other accounting principles generally accepted in
India. 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 design,
implementation and maintenance of adequate internal
financial controls, that were operating effectively
for ensuring the accuracy and completeness of the

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 management;

• Conclude on the appropriateness of 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 statements 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;
and

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

12. 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.

13. 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.

14. From the matters communicated with those charged
with governance, we determine those matters that
were of most significance in the audit of the financial
statements of the current period and are therefore the
key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely
rare circumstances, we determine that a matter

accounting records, relevant to the preparation and
presentation of the financial statements that give a true
and fair view and are free from material misstatement,
whether due to fraud or error.

8. In preparing the financial statements, 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.

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

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF
THE FINANCIAL STATEMENTS

10. Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are 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 Standards on Auditing 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 these financial statements.

11. As part of an audit in accordance with Standards on
Auditing, specified under Section 143(10) of the Act
we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:

• Identify and assess the risks of material
misstatement of the financial statements, 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

should not be communicated in our report because the
adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such
communication.

OTHER MATTER

15. The financial statements of the Company for the year
ended March 31, 2024 were audited by the predecessor
auditor, S R B C & CO LLP, who have expressed an
unmodified opinion on those financial statements vide
their audit report dated May 09, 2024.

REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS

16. As required by Section 197(16) of the Act, based on our
audit, we rep ort that the C ompany has paid remuneration
to its directors during the year in accordance with the
provisions of and limits laid down under Section 197 read
with Schedule V to the Act.

17. As required by the Companies (Auditor’s Report) Order,
2020 (‘the Order’) issued by the Central Government of
India in terms of Section 143(11) of the Act we give in
the Annexure A a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.

18. Further to our comments in Annexure A, as required by
Section 143(3) of the Act based on our audit, we report, to
the extent applicable, that:

a) We have sought and obtained all the information
and explanations which to the best of our knowledge
and belief were necessary for the purpose of our
audit of the accompanying financial statements;

b) Except for the matters stated in paragraph
18(h)(vi) below on reporting under Rule 11(g) of
the Companies (Audit and Auditors) Rules, 2014
(as amended), in our opinion, proper books of
account as required by law have been kept by the
Company so far as it appears from our examination
of those books. Further, the back-up of the books
of accounts and other books and papers of the
Company maintained in electronic mode has
been maintained on servers physically located in
India, on a daily basis except for an application
used for processing expenses of field employees
where backup taken on daily basis were kept on a
server physically located outside India as stated in
Note 46(i) to the financial statements;

c) The financial statements dealt with by this report
are in agreement with the books of account;

d) In our opinion, the aforesaid financial statements
comply with Ind AS specified under Section 133 of
the Act;

e) On the basis of the written representations received
from the directors and taken on record by the Board
of Directors, none of the directors is disqualified
as on March 31, 2025 from being appointed as a
director in terms of Section 164(2) of the Act;

f) The modification relating to the maintenance of
accounts and other matters connected therewith
are as stated in paragraph 18(b) above on
reporting under Section 143(3)(b) of the Act and
paragraph 18(h)(vi) below on reporting under
Rule 11(g) of the Companies (Audit and Auditors)
Rules, 2014 (as amended);

g) With respect to the adequacy of the internal
financial controls with reference to financial
statements of the Company as on March 31, 2025
and the operating effectiveness of such controls,
refer to our separate report in Annexure B wherein
we have expressed an unmodified opinion; and

h) With respect to the other matters to be included
in the Auditor’s Report in accordance with rule 11
of the Companies (Audit and Auditors) Rules, 2014
(as amended), in our opinion and to the best of our
information and according to the explanations
given to us:

i. The Company, as detailed in Note 37 to the
financial statements, has disclosed the impact
of pending litigations on its financial position
as at March 31, 2025;

ii. The Company did not have any long-term
contracts including derivative contracts for
which there were any material foreseeable
losses as at March 31, 2025;

iii. There has been no delay in transferring
amounts, required to be transferred, to the
Investor Education and Protection Fund
by the Company during the year ended
March 31, 2025;

iv. a. The management has represented that, to the

best of its knowledge and belief, as disclosed
in Note 45(iii) to the financial statements,
no funds have been advanced or loaned or

invested (either from borrowed funds or
securities premium or any other sources or
kind of funds) by the Company to or in any
person(s) or entity(ies), including foreign
entities (‘the intermediaries’), with the
understanding, whether recorded in writing
or otherwise, that the intermediary shall,
whether, directly or indirectly lend or invest
in other persons or entities identified in any
manner whatsoever by or on behalf of the
Company (‘the Ultimate Beneficiaries’) or
provide any guarantee, security or the like on
behalf the Ultimate Beneficiaries;

b. The management has represented that, to the
best of its knowledge and belief, as disclosed
in Note 45(iv) to the financial statements, no
funds have been received by the Company
from any person(s) or entity(ies), including
foreign entities (‘the Funding Parties’), with
the understanding, whether recorded in
writing or otherwise, that the Company shall,
whether directly or indirectly, lend or invest
in other persons or entities identified in any
manner whatsoever by or on behalf of the
Funding Party (‘Ultimate Beneficiaries’) or
provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries; and

c. Based on such audit procedures performed
as considered reasonable and appropriate
in the circumstances, nothing has come to
our notice that has caused us to believe that
the management representations under sub¬
clauses (a) and (b) above contain any material
misstatement.

v. The final dividend paid by the Company during

the year ended March 31, 2025 in respect of
such dividend declared for the previous year
is in accordance with Section 123 of the Act to
the extent it applies to payment of dividend.

As stated in Note 15 to the accompanying
financial statements, the Board of Directors of
the Company have proposed final dividend for
the year ended March 31, 2025 which is subject
to the approval of the members at the ensuing
Annual General Meeting. The dividend
declared is in accordance with Section 123 of

the Act to the extent it applies to declaration
of dividend.

vi. As stated in Note 46(ii) to the financial
statements and based on our examination
which included test checks, except for instance
mentioned below, the Company, in respect
of financial year commencing on or after
April 1, 2024 has used an accounting software
for maintaining its books of account which
have a feature of recording audit trail
(edit log) facility and the same have been
operated throughout the year for all relevant
transactions recorded in the software.
Further, during the course of our audit we
did not come across any instance of audit trail
feature being tampered with other than the
consequential impact of the exception given
below. Furthermore, except for instance
mentioned above, the audit trail has been
preserved by the Company as per the statutory
requirements for record retention.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm’s Registration No.: 001076N/N500013

Ashlsh Gupta

Partner

Membership No.: 504662
UDIN: 25504662BMOOEW3189

Place : Mumbai
Date : May 15, 2025

Nature of exception noted	Details of Exception
Instances of	The audit trail
accounting software	feature was not
for maintaining	enabled at the
books of account for	database level for
which the feature	accounting software
of recording audit	to log any direct data
trail (edit log) facility	changes, used for
was not operated	maintenance of all
throughout the	accounting records
year for all relevant transactions recorded in the software	by the Company.

---

Mar 31, 2024

We have audited the accompanying financial statements of Abbott India Limited (“the Company”), which comprise the Balance sheet as at March 31, 2024, the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes to the financial statements, including a summary of material accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013, as amended (“the Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2024, its Profit including Other Comprehensive Income, its Cash Flows and the Changes in Equity for the year ended on that date.

BASIS FOR OPINION

We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs), as specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the ‘Auditor’s Responsibilities for the Audit of the Financial Statements’ 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 we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

KEY AUDIT MATTERS

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for the financial year ended March 31, 2024. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial statements.

Key audit matters	How our audit addressed the key audit matter
(a) Provision for Non-Saleable returns (as described in Note 16 and 21 of the financial statements) The Company makes sales to stockist who further sells Our audit procedures included, amongst others, products in the market. Stockist have a right of return in • Obtained an understanding of management’s process and respect of goods expiring while being in supply chain before related controls for recording provision for non-saleable reaching end consumers. Existence of right of return of such expired products results in accounting for deductions to gross amounts invoiced in arriving at revenue and creation • Tested the Company‘s key controls relating to the of obligations for the Company to give credit for such sales accounting for sales and related deductions made to gross returns. sales for sales returns.
The amounts pertaining to such sales return are estimated at the time of sale and deducted from gross sales and recorded as provisions for sales returns. These estimates are based on analysis of historical trends of sales return and shelf life of the	• We obtained management’s calculations for provisions, recalculated the amounts and evaluated the assumptions used with reference to historical sales returns levels and current trends.
products. The management has accounted for provision for sales returns amounting to '' 201.61 Crores at March 31, 2024 (including reimbursable sales return amounting to '' 71.16 Crores)	• We considered the management’s estimates by comparing historical accrued provisions and revenue deductions recorded to the actual amounts.

Key audit matters	How our audit addressed the key audit matter
The complexity and significance of the assumptions and	•	We tested the workings in respect of classification of
judgments required for estimating provisions for sales returns		current and non-current provisions for sales return
may result, in incorrect recording of revenue and related		prepared by the management including the underlying
provisions. Accordingly, we have considered this as a key audit		assumptions.
matter.	•	We understood and assessed the Company’s accounting policy for revenue recognition, including the recognition and measurement of deductions to gross sales relating to sales returns and related disclosures.
Evaluation of uncertain tax positions (as described in Note 36 (b) (ii) of the financial statements)
The Company has litigations involving question of law and certain disallowances made by Income tax authorities in assessment orders that the Company has appealed against before the relevant appellate authorities.	•	We obtained an understanding of the management’s process for : - identification of tax matters initiated against the
		Company,
The Company has disclosed '' 74.10 Crores as Contingent liability (including uncertain tax positions for open assessment orders) in accordance with Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets, based on management’s assessment in consultation with professional advice from the		- assessment of accounting treatment for each such litigation identified under applicable accounting principles, and for measurement of amounts involved.
external legal counsel. The eventual outcome of the legal proceedings is dependent	•	We evaluated the design and tested the operating effectiveness of controls around the above process.
on the outcome of future events and unexpected adverse	•	We obtained an understanding of the nature of litigations
outcomes could significantly impact the Company’s reported		pending against the Company and discussed the key
Profits and Balance Sheet position.		developments during the year with the management.
Key judgments are also made by the management in estimating the amount of contingent liabilities related to aforementioned litigations. Considering the degree of judgment, significance of the amounts involved, inherent high estimation uncertainty and reliance on external legal counsel, this matter has been	•	We focused on the key developments in the tax litigations, which could have materially impacted the amounts recorded as provisions or disclosed as contingent liability in the financial statements. We inspected the demand notices, assessment orders received for such cases and obtained grounds of appeal submitted by the management in consultation with their external legal counsel.
identified as a key audit matter.
	•	We evaluated the appropriateness of methods used and the reliability of underlying data for quantifying the amounts involved by analyzing the relevant demand notices, assessment orders received. We also tested the arithmetical accuracy of such calculations.
	•	We also tested the independence, objectivity and competence of such external legal counsel involved.
	•	We engaged internal tax specialists to evaluate management’s assessment of the outcome of such litigation cases. The tax specialists considered legal precedence and other rulings in evaluating management’s position on such litigation cases.
	•	We have evaluated the disclosures made by the Company in the financial statements in view of the requirements as specified in the Indian Accounting Standards.

INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITOR’S REPORT THEREON

The Company’s Board of Directors is responsible for the other information. The other information comprises the Director’s Report, Management Discussion and Analysis, Corporate Governance Report but does not include the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

RESPONSIBILITIES OF MANAGEMENT FOR THE FINANCIAL STATEMENTS

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance including Other Comprehensive Income, Cash Flows and Changes in Equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management 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 management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

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

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are 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 these financial statements.

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 financial statements, 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 management.

• Conclude on the appropriateness of management’s 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 statements 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 financial statements, including the disclosures, and whether financial statements represent 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.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements for the financial year ended March 31, 2024 and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government of India in terms of Sub-Section (11) of Section 143 of the Act, based on our audit, we give in the “Annexure 1” a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act, we report that :

(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books, the back-up of books of account were taken on a server physically located in India except for an application used for processing expenses of field employees where backup taken on a daily basis were kept on a server physically located outside India as stated in Note 45 to the financial statements and for the matter stated in paragraph (i) below on reporting under Rule 11 (g).

(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;

(d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;

(e) On the basis of the written representations received from the directors as on March 31, 2024 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2024 from being appointed as a director in terms of Section 164 (2) of the Act;

(f) The modification relating to the maintenance of accounts and matters connected therewith, and audit trail are as stated in paragraph (b) above and clause vi of paragraph (i) below respectively

(g) With respect to the adequacy of the internal financial controls with reference to these financial statements and the operating effectiveness of such controls, refer to our separate Report in “Annexure 2” to this report;

(h) In our opinion, the managerial remuneration for the year ended March 31, 2024 has been paid / provided by the Company to its directors in accordance with the provisions of Section 197 read with Schedule V to the Act;

(i) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014,

as amended in our opinion and to the best of our information and according to the explanations given to us :

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 36 to the financial statements;

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company

iv. a) The management has represented that, to

the best of its knowledge and belief, and as disclosed in the Note 44(iii)(a) to the financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

b) The management has represented that, to the best of its knowledge and belief, and as disclosed in the Note 44(iii)(b) to the financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

c) Based on such audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (a) and (b) contain any material misstatement.

v. The final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with Section 123 of the Act to the extent it applies to payment of dividend.

As stated in N ote 14 to the financial statements, the Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with Section 123 of the Act to the extent it applies to declaration of dividend.

vi. Based on our examination which included test checks, the Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software except that, audit trail feature is not enabled for changes made, if any, using privileged/ administrative access rights to the application and the underlying database, as described in Note 45 to the financial statements. Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with in respect of the accounting software.

For S R B C & CO LLP

Chartered Accountants

ICAI Firm Registration Number : 324982E/E300003

per Aruna Kumaraswamy

Partner

Membership Number : 219350

UDIN : 24219350BKCSUV9709

Place of Signature : Mumbai

Date : May 09, 2024

---

Mar 31, 2023

To the Members of Abbott India Limited Report on the Audit of the Financial Statements

OPINION

We have audited the accompanying financial statements of Abbott India Limited (“the Company”), which comprise the Balance sheet as at March 31 2023, the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013, as amended (“the Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, its Profit including Other Comprehensive Income, its Cash Flows and the Changes in Equity for the year ended on that date.

BASIS FOR OPINION

We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs), as specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the ‘Auditor’s Responsibilities for the Audit of the Financial Statements’ 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 we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

KEY AUDIT MATTERS

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for the financial year ended March 31, 2023. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial statements.

Key audit matters	How our audit addressed the key audit matter
(a) Provision for Non-Saleable returns (as described in note 22 of the financial statements)
The Company makes sales to stockiest who further sells products in the market. Stockiest have a right of return in case goods expiring, while in supply chain till end consumers. Return of these expired goods, results in deductions to gross amounts invoiced in arriving at revenue and creation of obligations for the Company to give credit for sales returns. The amounts pertaining to such sales return are estimated at the time of sale and deducted from gross sales and recorded as provisions for sales returns. These estimates are based on analysis of historical trends of sales return and shelf life of the products. The management has determined provision for sales returns amounting to '' 173.11 Crores which have been recorded at March 31, 2023 (including reimbursable sales return amounting to '' 61.84 Crores)	Our audit procedures included, amongst others, • Obtained an understanding of management process for making provision for Non-saleable returns including related controls. • Tested the Company’s key controls relating to the deductions made to gross sales for sales returns, including those controls over booking of sales and sales return process. • We obtained management’s calculations for provisions, recalculated the amounts and evaluated the assumptions used with reference to historical sales returns levels and current trends. • We considered the management’s estimates by comparing historical accrued provisions and revenue deductions recorded to the actual amounts.

Key audit matters	How our audit addressed the key audit matter
We focused on this area because establishing an appropriate	•	We tested the working of discounting of non-current
year-end position requires significant judgement and		provisions for sales return prepared by the management
estimation by the management. The assumptions required		including the underlying assumptions.
for estimating provisions for sales returns are complex	•	We understood and assessed the Company’s revenue
in nature, the estimates may not be appropriate and, as a result, provisions and revenue may be incorrectly recorded. Accordingly, we regard these as key audit matter.		recognition accounting policies, including the recognition and measurement of deductions to gross sales relating to sales returns and related disclosures.
(b) Evaluation of uncertain tax positions (as described in note 36 (b) (ii) of the financial statements)
The Company has litigations involving question of law and	•	We obtained an understanding of the management’s process
certain disallowances made by Income tax authorities in		for:
assessment orders that the Company has appealed against		- identification of tax matters initiated against the
before the relevant appellate authorities.		Company,
The Company has disclosed '' 80.81 Crores as Contingent liability (including uncertain tax positions for open assessment orders) in accordance with Ind AS 37 Provisions,		- assessment of accounting treatment for each such litigation identified under applicable accounting
Contingent Liabilities and Contingent Assets, based on		principles, and for measurement of amounts involved.
management’s assessment in consultation with professional	•	We evaluated the design and tested the operating
advice from the external legal counsel.		effectiveness of controls around the above process.
The eventual outcome of the legal proceedings is dependent	•	We obtained an understanding of the nature of litigations
on the outcome of future events and unexpected adverse		pending against the Company and discussed the key
outcomes could significantly impact the Company’s reported		developments during the year with the management.
Profits and Balance Sheet position.	•	We focused on the key developments in the tax litigations,
Key judgments are also made by the management in		which could have materially impacted the amounts
estimating the amount of contingent liabilities related to		recorded as provisions or disclosed as contingent liability
aforementioned litigations.		in the financial statements. We inspected the demand
Considering the degree of judgment, significance of the amounts involved, inherent high estimation uncertainty and reliance on external legal counsel, this matter has been		notices, assessment orders received for such cases and obtained grounds of appeal submitted by the management in consultation with their external legal counsel.
identified as a key audit matter.	•	We evaluated the appropriateness of methods used and the reliability of underlying data for quantifying the amounts involved by analyzing the relevant demand notices, assessment orders received. We also tested the arithmetical accuracy of such calculations.
	•	We also tested the independence, objectivity and competence of such external legal counsel involved.
	•	We engaged internal tax specialists to evaluate management assessment of the outcome of such litigation cases. The tax specialists considered legal precedence and other rulings in evaluating management’s position on such litigation cases.
	•	We have evaluated the disclosures made by the Company in the financial statements in view of the requirements as specified in the Indian Accounting Standards.

INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITOR’S REPORT THEREON

The Company’s Board of Directors is responsible for the other information. The other information comprises the Director’s Report, Management Discussion and Analysis, Corporate Governance Report but does not include the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

RESPONSIBILITIES OF MANAGEMENT FOR THE FINANCIAL STATEMENTS

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance including Other Comprehensive Income, Cash Flows and Changes in Equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management 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 management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

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

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are 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 these financial statements.

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 financial statements, 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 management.

• Conclude on the appropriateness of management’s 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 statements 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.

as disclosed in the Note 44 to the financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

b) The management has represented that, to the best of its knowledge and belief, and as disclosed in the Note 44 to the financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

c) Based on such audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe

• Evaluate the overall presentation, structure and content of financial statements, including the disclosures, and whether financial statements represent 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.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements for the financial year ended March 31, 2023 and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government of India in terms of Sub-Section (11) of Section 143 of the Act, based on our audit, we give in the “Annexure 1” a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act, we report that:

(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books, the back-up of books of account were taken on a server physically located in India except for an application used for processing expenses of field employees where backup taken on a daily basis were kept on server physically located outside India as stated in Note 45 to the financial statements

(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;

(d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;

(e) On the basis of the written representations received from the directors as on March 31, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2023 from being appointed as a director in terms of Section 164 (2) of the Act;

(f) The reservation relating to the maintenance of accounts and other matters connected therewith are as stated in paragraph (b) above

(g) With respect to the adequacy of the internal financial controls with reference to these financial statements and the operating effectiveness of such controls, refer to our separate Report in “Annexure 2” to this report;

(h) In our opinion, the managerial remuneration for the year ended March 31, 2023 has been paid / provided by the Company to its directors in accordance with the provisions of Section 197 read with Schedule V to the Act;

(i) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 36 to the financial statements;

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company

iv. a) The management has represented that, to

the best of its knowledge and belief, and

that the representations under Sub-clause (a) and (b) contain any material misstatement.

v. The final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with Section 123 of the Act to the extent it applies to payment of dividend.

As stated in Note 14 to the financial statements, the Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with Section 123 of the Act to the extent it applies to declaration of dividend.

vi. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the Company only w.e.f. April 1, 2023, reporting under this clause is not applicable.

For S R B C & CO LLP

Chartered Accountants

ICAI Firm Registration Number: 324982E/E300003

per Dolphy Dsouza

Partner

Membership Number: 038730

UDIN: 23038730BGYSNK6600

Place of Signature: Mumbai

Date: May 19, 2023

---

Mar 31, 2022

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 we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

KEY AUDIT MATTERS

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for the financial year ended March 31, 2022. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial statements.

To the Members of Abbott India Limited Report on the Audit of the Financial Statements

OPINION

We have audited the accompanying financial statements of Abbott India Limited (“the Company”), which comprise the Balance Sheet as at March 31 2022, the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013, as amended (“the Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2022, its Profit including Other Comprehensive Income, its Cash Flows and the Changes in Equity for the year ended on that date.

BASIS FOR OPINION

We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs), as specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the ‘Auditor’s Responsibilities for the Audit of the Financial Statements’ section of our report. We are independent of the Company

Key audit matters	How our audit addressed the key audit matter
(a) Provision for Non-Saleable returns (as described in note 22 of the financial statements)
The Company makes sales to stockiest who further sells products in the market. Stockiest have a right of return in case goods expiring, while in supply chain till end consumers. Return of these expired goods, results in deductions to gross amounts invoiced in arriving at revenue and creation of obligations for the Company to give credit for sales returns. The amounts pertaining to such sales return are estimated at the time of sale and deducted from gross sales and recorded as provisions for sales returns. These estimates are based on analysis of historical trends of sales return and shelf life of the products. The management has determined provision for sales returns amounting to '' 168.06 Crores which have been recorded at March 31, 2022 (including reimbursable sales return amounting to '' 50.48 Crores)	Our audit procedures included, amongst others, • Obtained an understanding of management process for making provision for Non-saleable returns including related controls. • Tested the Company‘s key controls relating to the deductions made to gross sales for sales returns, including those controls over booking of sales and sales return process. • We obtained management’s calculations for provisions, recalculated the amounts and evaluated the assumptions used with reference to historical sales returns levels and current trends. • We considered the management’s estimates by comparing historical accrued provisions and revenue deductions recorded to the actual amounts.

Key audit matters	How our audit addressed the key audit matter
We focused on this area because establishing an appropriate	•	We tested the working of discounting of non-current
year-end position requires significant judgement and		provisions for sales return prepared by the management
estimation by the management. The assumptions required		including the underlying assumptions.
for estimating provisions for sales returns are complex	•	We understood and assessed the Company’s revenue
in nature, the estimates may not be appropriate and, as a result, provisions and revenue may be incorrectly recorded.		recognition accounting policies, including the recognition and measurement of deductions to gross sales relating to
Accordingly, we regard these as key audit matter.		sales returns and related disclosures.
(b) Evaluation of uncertain tax positions (as described in note 37 (b) (ii) of the financial statements)
The Company has litigations involving question of law and	•	We obtained an understanding of the management’s process
certain disallowances made by Income tax authorities in		for:
assessment orders that the Company has appealed against		- identification of tax matters initiated against the
before the relevant appellate authorities.		Company,
The Company has disclosed '' 87.18 Crores as Contingent		- assessment of accounting treatment for each such
liability (including uncertain tax positions for open		litigation identified under applicable accounting
assessment orders) in accordance with Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets, based on		principles, and for measurement of amounts involved.
management’s assessment in consultation with professional	•	We evaluated the design and tested the operating
advice from the external legal counsel.		effectiveness of controls around the above process.
The eventual outcome of the legal proceedings is dependent	•	We obtained an understanding of the nature of litigations
on the outcome of future events and unexpected adverse		pending against the Company and discussed the key
outcomes could significantly impact the Company’s reported		developments during the year with the management.
Profits and Balance Sheet position.	•	We focused on the key developments in the tax litigations,
Key judgments are also made by the management in		which could have materially impacted the amounts
estimating the amount of contingent liabilities related to aforementioned litigations.		recorded as provisions or disclosed as contingent liability in the financial statements. We inspected the demand notices, assessment orders received for such cases and
Considering the degree of judgment, significance of the amounts involved, inherent high estimation uncertainty and reliance on external legal counsel, this matter has been		obtained grounds of appeal submitted by the management in consultation with their external legal counsel.
identified as a key audit matter.	•	We evaluated the appropriateness of methods used and the reliability of underlying data for quantifying the amounts involved by analyzing the relevant demand notices, assessment orders received. We also tested the arithmetical accuracy of such calculations.
	•	We evaluated external legal counsel’s response and analysed the conclusions reached which are supported by legal rationale.
	•	We also tested the independence, objectivity and competence of such external legal counsel involved.
	•	We have obtained direct confirmation for litigation cases from the external legal counsel, to support the decisions and rationale for disclosure of contingent liabilities in respect of the litigation cases.
	•	We engaged internal tax specialists to evaluate management assessment of the outcome of such litigation cases. The tax specialists considered legal precedence and other rulings in evaluating management’s position on such litigation cases.
	•	We have evaluated the disclosures made by the Company in the financial statements in view of the requirements as specified in the Indian Accounting Standards.

INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITOR’S REPORT THEREON

The Company’s Board of Directors is responsible for the other information. The other information comprises the Director’s Report, Management Discussion and Analysis, Corporate Governance Report but does not include the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

RESPONSIBILITIES OF MANAGEMENT FOR THE FINANCIAL STATEMENTS

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance including Other Comprehensive Income, Cash Flows and Changes in Equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management 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 management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

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

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are 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 these financial statements.

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 financial statements, 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 management.

• Conclude on the appropriateness of management’s 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 statements 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 financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

b) The management has represented that, to the best of its knowledge and belief, other than as disclosed in the Note 45 to the financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

c) Based on such audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (a) and (b) contain any material misstatement.

v. The final dividend paid by the Company during the year in respect of the same declared

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.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements for the financial year ended March 31, 2022 and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government of India in terms of Sub-Section (11) of Section 143 of the Act, based on our audit, we give in the “Annexure 1” a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act, we report that:

(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;

(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;

(d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;

(e) On the basis of the written representations received from the directors as on March 31, 2022 taken

on record by the Board of Directors, none of the directors is disqualified as on March 31, 2022 from being appointed as a director in terms of Section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controls with reference to these financial statements and the operating effectiveness of such controls, refer to our separate Report in “Annexure 2” to this report;

(g) In our opinion, the managerial remuneration for the year ended March 31, 2022 has been paid / provided by the Company to its directors in accordance with the provisions of Section 197 read with Schedule V to the Act;

(h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 37 to the financial statements;

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company

iv. a) The management has represented that, to

the best of its knowledge and belief and as disclosed in the Note 45 to the financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

for the previous year is in accordance with Section 123 of the Act to the extent it applies to payment of dividend.

As stated in Note 14 to the financial statements, the Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with Section 123 of the Act to the extent it applies to declaration of dividend.

For S R B C & CO LLP

Chartered Accountants

ICAI Firm Registration Number: 324982E/E300003

per Dolphy Dsouza

Partner

Membership Number: 038730

UDIN: 22 038730AJBYDV8682

Place of Signature: London, UK

Date: May 17, 2022

---

Mar 31, 2021

Report on the Audit of the Ind AS Financial Statements

OPINION

We have audited the accompanying Ind AS financial statements of Abbott India Limited (“the Company”), which comprise the Balance Sheet as at March 31, 2021, the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes to the Ind AS financial statements, including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS financial statements give the information required by the Companies Act, 2013, as amended (“the Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2021, its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.

BASIS FOR OPINION

We conducted our audit of the Ind AS financial statements in accordance with the Standards on Auditing (SAs), as specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the ‘Auditor’s Responsibilities for the Audit of the Ind AS Financial Statements’ 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 we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.

KEY AUDIT MATTERS

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Ind AS financial statements for the financial year ended March 31, 2021. These matters were addressed in the context of our audit of the Ind AS financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the Ind AS financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the Ind AS financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying Ind AS financial statements.

Key audit matter	How our audit addressed the key audit matter
(a) Provision for Non-Saleable returns (as described in note 24 of the Ind AS financial statements)
The Company makes sales to stockiest who further sells products in the market. Stockiest have a right of return in case goods expiring, while in supply chain till end consumers. Return of these expired goods, results in deductions to gross amounts invoiced in arriving at revenue and creation of obligations for the Company to give credit for sales returns. The amounts pertaining to such sales return are estimated at the time of sale and deducted from gross sales and recorded as provisions for sales returns. These estimates are based on analysis of historical trends of sales return and shelf life of the products.	Our audit procedures included, amongst others, • Obtained an understanding of management process for making provision for Non-saleable returns including related controls. • Tested the Company‘s key controls relating to the deductions made to gross sales for sales returns, including those controls over booking of sales and sales return process. • We obtained management’s calculations for provisions, recalculated the amounts and evaluated the assumptions used with reference to historical sales returns levels and
The management has determined provision for sales returns amounting to '' 159.54 crores which have been recorded at March 31, 2021 (including reimbursable sales return amounting to '' 50.80 crores)	current trends. • We considered the management’s estimates by comparing historical accrued provisions and revenue deductions recorded to the actual amounts.
We focused on this area because establishing an appropriate year-end position requires significant judgement and estimation by the management. The assumptions required for estimating provisions for sales returns are complex in nature, the estimates may not be appropriate and, as a result, provisions and revenue may be incorrectly recorded. Accordingly, we regard these as key audit matter.	• We tested the working of discounting of non-current provisions for sales return prepared by the management including the underlying assumptions. • We understood and assessed the Company’s revenue recognition accounting policies, including the recognition and measurement of deductions to gross sales relating to sales returns and related disclosures.

Key audit matter	How our audit addressed the key audit matter
(b) Evaluation of uncertain tax positions (as described in note 39 (b) (ii) of the Ind AS financial statements)
The Company has litigations involving question of law and certain disallowances made by Income tax authorities in assessment orders that the Company has appealed against before the relevant appellate authorities. The Company has disclosed '' 78.74 crores as Contingent liability (including uncertain tax positions for open assessment orders) in accordance with Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets, based on management’s assessment in consultation with professional advice from the external legal counsel.	• We obtained an understanding of the management’s process for : - identification of tax matters initiated against the Company, - assessment of accounting treatment for each such litigation identified under applicable accounting principles, and for measurement of amounts involved. • We evaluated the design and tested the operating effectiveness of controls around the above process.
The eventual outcome of the legal proceedings is dependent on the outcome of future events and unexpected adverse outcomes could significantly impact the Company’s reported profits and Balance Sheet position. Key judgments are also made by the management in estimating the amount of contingent liabilities related to aforementioned litigations. Considering the degree of judgment, significance of the amounts involved, inherent high estimation uncertainty and reliance on external legal counsel, this matter has been identified as a key audit matter.	• We obtained an understanding of the nature of litigations pending against the Company and discussed the key developments during the year with the management. • We focused on the key developments in the tax litigations, which could have materially impacted the amounts recorded as provisions or disclosed as contingent liability in the financial statements. We inspected the demand notices, assessment orders received for such cases and obtained grounds of appeal submitted by the management in consultation with their external legal counsel. • We evaluated the appropriateness of methods used and the reliability of underlying data for quantifying the amounts involved by analyzing the relevant demand notices, assessment orders received. We also tested the arithmetical accuracy of such calculations.
	• We evaluated external legal counsel’s response and analysed the conclusions reached which are supported by legal rationale.
	• We also tested the independence, objectivity and competence of such external legal counsel involved.
	• We have obtained direct confirmation for litigation cases from the external legal counsel, to support the decisions and rationale for disclosure of contingent liabilities in respect of the litigation cases.
	• We engaged internal tax specialists to evaluate management assessment of the outcome of such litigation cases. The tax specialists considered legal precedence and other rulings in evaluating management’s position on such litigation cases.
	• We have evaluated the disclosures made by the Company in the financial statements in view of the requirements as specified in the Indian Accounting Standards.

INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITOR’S REPORT THEREON

The Company’s Board of Directors is responsible for the other information. The other information comprises the Director’s Report, Management Discussion and Analysis, Corporate Governance Report but does not include the Ind AS financial statements and our auditor’s report thereon.

Our opinion on the Ind AS financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Ind AS financial statements, our responsibility is to read the other information identified as above and, in doing so, consider whether such other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

RESPONSIBILITIES OF MANAGEMENT FOR THE IND AS FINANCIAL STATEMENTS

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act read with [the Companies (Indian Accounting Standards) Rules, 2015, as amended. 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 Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Ind AS financial statements, management 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 management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company’s financial reporting process.

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE IND AS FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the Ind AS financial statements as a whole are 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 these Ind AS financial statements.

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 Ind AS financial statements, 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 management.

• Conclude on the appropriateness of management’s 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 statements 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 Ind AS financial statements, including the disclosures, and whether the Ind AS financial statements represent 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.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Ind AS financial statements for the financial year ended March 31, 2021 and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, based on our audit, we give in the “Annexure 1” a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act, we report that:

(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;

(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;

(d) In our opinion, the aforesaid Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;

(e) On the basis of the written representations received from the directors as on March 31, 2021 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2021 from being appointed as a director in terms of Section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company with reference to these Ind AS financial statements and the operating effectiveness of such controls, refer to our separate Report in “Annexure 2” to this report;

(g) In our opinion, the managerial remuneration for the year ended March 31, 2021 has been paid / provided by the Company to its directors in accordance with the provisions of Section 197 read with Schedule V to the Act;

(h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us :

i. The Company has disclosed the impact of pending litigations on its financial position in its Ind AS financial statements - Refer Note 39 to the Ind AS financial statements;

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

For S R B C & CO LLP

Chartered Accountants

ICAI Firm Registration Number: 324982E/E300003

per Ravi Bansal

Partner

Membership Number: 49365

UDIN: 21049365AAAABF9138

Place of Signature: Mumbai

Date: May 18, 2021

---

Mar 31, 2018

REPORT ON THE INDAS FINANCIAL STATEMENTS

We have audited the accompanying Ind AS financial statements of Abbott India Limited (“the Company”), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.

MANAGEMENT’S RESPONSIBILITY FOR THE INDAS FINANCIAL STATEMENTS

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. 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 control that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

AUDITOR’S RESPONSIBILITY

Our responsibility is to express an opinion on these Ind AS financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit of the Ind AS financial statements in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company’s preparation of the Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the Ind AS financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.

OPINION

In our opinion and to the best of our information and according to the explanations given to us, the Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor’s report) Order, 2016 (“the Order”) issued by the Central Government of India in terms of Sub-section (11) of Section 143 of the Act, we give in the “Annexure 1”, a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act, we report that:

(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;

(c) The Balance Sheet, Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;

(d) In our opinion, the aforesaid Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) (Amendment) Rules, 2016, as amended;

(e) On the basis of written representations received from the directors as on March 31, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018, from being appointed as a director in terms of Section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company with reference to these Ind AS financial statements and the operating effectiveness of such controls, refer to our separate Report in “Annexure 2” to this report;

(g) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us :

i. The Company has disclosed the impact of pending litigations on its financial position in its Ind AS financial statements - Refer Note 40 to the Ind AS financial statements.

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

ANNEXURE 1 TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF ABBOTT INDIA LIMITED

(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) Some fixed assets were physically verified by the management during the year in accordance with a planned programme of verifying them once in three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) According to the information and explanations given by the management, the title deeds of immovable properties, included in property, plant and equipment are held in the name of the Company, except for the following:

Sr. No.	Asset Category	Gross Block at March 31,2018 (Rs. in Lakhs)	Net Block at March 31,2018 (Rs. in Lakhs)	Remarks
1	Buildings *	12,75.97	11,61.46	The title deeds are in the erstwhile name of the Company.
2	Buildings *	30,50.61	28,67.73	The title deeds are in the name of the entity that was merged with the Company.

* The above amounts include Assets held for sale’.

(ii) The management has conducted physical verification of inventory at reasonable intervals during the year and no material discrepancies were noticed on such physical verification.

(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013. Accordingly, the provisions of clause 3(iii) (a), (b) and (c) of the Order are not applicable to the Company and hence not commented upon.

(iv) In our opinion and according to the information and explanations given to us, provisions of Section 185 and 186 of the Companies Act, 2013 in respect of loans to directors including entities in which they are interested and in respect of loans and advances given, investments made and, guarantees, and securities given have been complied with by the Company.

(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under Section 148(1) of the Companies Act, 2013, related to the manufacture of formulations, and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.

(vii) (a) Undisputed statutory dues including provident fund, employees’ state insurance, income tax, sales tax, service tax, duty of custom, duty of excise, value added tax, Goods and Services Tax (GST), cess and other material statutory dues have generally been regularly deposited with the appropriate authorities though there have been delays in few cases of payment of professional tax.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees’ state insurance, income tax, service tax, sales tax, duty of custom, duty of excise, value added tax, Goods and Services Tax (GST), cess and other statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable except as below :

Name of the Statute	Nature of Dues	Amount (Rs. in Lakhs)	Period to which the amount relates	Due Date	Date of Payment
The Jharkhand Tax on Professions, Trades, Callings and Employments Act, 2011	Profession tax	0.45	Nov’16 - Sep’17	Various dates	18-04-2018
Madhya Pradesh Professional Tax Act, 1995	Profession tax	1.11	Apr’17 - Sep’17	Various dates	Yet to be paid

(c) According to the records of the Company, the dues of income tax, sales tax, service tax, duty of custom, duty of excise, value added tax and cess on account of any dispute, are as follows :

Name of the Statute	Nature of Dues	Amount disputed in Rs. Lakhs (net of payments)	Forum where dispute is pending	Period to which the amount relates
Income Tax Act, 1961	Income Tax	4,86.15	ITAT	A.Y. 2006 - 2007, A.Y. 2009 - 2010, A.Y. 2010 - 2011, A.Y. 2011 - 2012, A.Y. 2013 - 2014
Central Excise Act, 1944	Excise Duty	3.20	Commissioner (Appeals)	1991 -1992
		3.56	Commissioner	1994 -1995
		2.51	Assistant Commissioner	1994 and 1997 to 2002
		26.72	CESTAT	2005 - 2006
The Bombay Sales Tax Act, 1959	Sales Tax	39.87	Deputy Commissioner of Sales Tax	1999-2000
Uttar Pradesh Value Added Tax Act, 2008	Value Added Tax	1.50	Additional Commissioner of Commercial Tax (Appeals)	2008 to 2010
Central Sales Tax Act, 1956 (Uttar Pradesh)	Sales Tax	8.36	Additional Commissioner of Commercial Tax (Appeals)	2010 - 2011
Kerala General Sales Tax Act, 1963	Sales Tax	13.05	Sales Tax Appellate Tribunal, Additional Bench	2002 - 2003
Goa Value Added Tax Act, 2005	Value Added Tax	2.07	Additional Commissioner of Commercial Taxes	2006 - 2007
Central Sales Tax, 1956 (Goa)	Sales Tax	9,00.80	Additional Commissioner of Commercial Taxes	2006 to 2009
		16.67	Assistant Commissioner of Commercial Taxes, Panaji, Goa	2009 - 2010
Central Sales Tax Act, 1956 (Gujarat)	Sales Tax	2,40.96	Deputy Commissioner of Commercial Taxes (Appeals)	2006 - 2007
Maharashtra Value Added Tax Act 2002	Value Added Tax	27,67.18	Deputy Commissioner of Sales Tax (Appeals)	2011 - 2012
Customs Act, 1962	Custom Duty	4.43	Commissioner (Appeals)	1996
		75.00	CESTAT	2011 to 2013

(viii) The Company did not have any outstanding loans or borrowing dues in respect of a financial institution or bank or to government or dues to debenture holders during the year.

(ix) According to the information and explanations given by the management, the Company has not raised any money by way of initial public offer/further public offer/debt instruments and term loans hence, reporting under clause (ix) is not applicable to the Company and hence not commented upon.

(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud by the Company or no fraud/material fraud on the Company by the officers and employees of the Company has been noticed or reported during the year.

(xi) According to the information and explanations given by the management, the managerial remuneration has been paid/provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013.

(xii) In our opinion, the Company is not a nidhi company. Therefore, the provisions of clause 3(xii) of the order are not applicable to the Company and hence not commented upon.

(xiii) According to the information and explanations given by the management, transactions with the related parties are in compliance with Section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and on an overall examination of the Balance Sheet, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence, reporting requirements under clause 3(xiv) are not applicable to the Company and, not commented upon.

(xv) According to the information and explanations given by the management, the Company has not entered into any noncash transactions with directors or persons connected with him as referred to in Section 192 of Companies Act, 2013.

(xvi) According to the information and explanations given to us, the provisions of Section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.

For S R B C & CO LLP

Chartered Accountants

ICAI Firm Registration Number : 324982E/E300003

per Ravi Bansal

Partner

Membership Number: 49365

Place: Mumbai

Date : May 14,2018

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Mar 31, 2017

REPORT ON THE IND AS FINANCIAL STATEMENTS

We have audited the accompanying Ind AS financial statements of Abbott India Limited (“the Company”), which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.

MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the Companies (Indian Accounting Standards) Rules, 2015, as amended. 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 control that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

AUDITOR’S RESPONSIBILITY

Our responsibility is to express an opinion on these Ind AS financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit of the Ind AS financial statements in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company’s preparation of the Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the Ind AS financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.

OPINION

In our opinion and to the best of our information and according to the explanations given to us, the Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2017, its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor’s report) Order, 2016 (“the Order”) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure 1 a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by section 143 (3) of the Act, we report that:

(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;

(c) The Balance Sheet, Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;

(d) In our opinion, the aforesaid Ind AS financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the Companies (Indian Accounting Standards) Rules, 2015;

(e) On the basis of written representations received from the directors as on March 31, 2017, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017, from being appointed as a director in terms of section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure 2” to this report;

(g) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its Ind AS financial statements - Refer Note 40 to the Ind AS financial statements;

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company

iv. The Company has provided requisite disclosures in Note 36 to these Ind AS financial statements as to the holding of Specified Bank Notes on November 8, 2016 and December 30, 2016 as well as dealings in Specified Bank Notes during the period from November 8, 2016 to December 30, 2016. Based on our audit procedures and relying on the management representation regarding the holding and nature of cash transactions, including Specified Bank Notes, we report that these disclosures are in accordance with the books of account maintained by the Company and as produced to us by the Management.

ANNEXURE 1 TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF ABBOTT INDIA LIMITED

(i) (a) The Company has maintained proper records showing lull particulars, including quantitative details and situation of fixed assets.

(b) Some fixed assets were physically verified by the management during the year in accordance with a planned programme of verifying them once in three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) According to the information and explanations given by the management, the title deeds of immovable properties, included in Property, plant and equipment are held in the name of the Company, except for the following:

Sr. No	Asset Category	Gross Block at March 31, 2017 (Rs. in lakhs)	Net Block at March 31, 2017 (Rs. in lakhs)	Remarks
1	Buildings	1,882	1,195	The title deeds are in the erstwhile name of the Company
2	Buildings	3,432	2,911	The title deeds are in the name of the entities that was merged with the Company

(ii) The management has conducted physical verification of inventory at reasonable intervals during the year and no material discrepancies were noticed on such physical verification.

(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly, the provisions of clause 3 (iii) (a), (b) and (c) of the Order are not applicable to the Company and hence not commented upon.

(iv) In our opinion and according to the information and explanations given to us, provisions of section 185 and 186 of the Companies Act 2013 in respect of loans to directors including entities in which they are interested and in respect of loans and advances given, investments made and, guarantees, and securities given have been complied with by the Company.

(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, related to the manufacture of formulations, and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.

(vii) (a) Undisputed statutory dues including provident fund, employees’ state insurance, income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax, cess and other material statutory dues have generally been regularly deposited with the appropriate authorities.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees’ state insurance, income-tax, service tax, sales-tax, duty of custom, duty of excise, value added tax, cess and other material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.

(c) According to the records of the Company, the dues outstanding of income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax and cess on account of any dispute, are as follows:

Name of Statute	Nature of Dues	Amount disputed in Rs. Lakhs (net of payments)	Forum where dispute is pending	Period to which the amount relates
Income Tax Act, 1961	Income Tax	3,79.66	ITAT	A.Y. 2006-2007, A.Y. 2009-2010 and A.Y. 2011-12
		14.35	CIT Appeals	A.Y. 2010-2011 and A.Y. 2011-2012
Central Excise Act, 1944	Excise Duty	3.20	Commissioner (Appeals)	1991-1992
		3.56	Commissioner	1994 - 1995
		2.51	Assistant Commissioner	1994 and 1997 to 2002
		26.72	CESTAT	2005 to 2006
The Bombay Sales Tax Act, 1959	Sales Tax	39.87	Deputy Commissioner of Sales Tax	1999-2000
Uttar Pradesh Value Added	Value Added Tax	1.50	Additional Commissioner of	2008 to 2010
Tax Act, 2008			Commercial Tax (Appeals)
Central Sales Tax Act, 1956	Central Sales Tax	8.36	Additional Commissioner of	2010-2011
(Uttar Pradesh)			Commercial Tax (Appeals)
Kerala General Sales Tax Act, 1963	Sales Tax	13.05	Sales Tax Appellate Tribunal, Additional Bench	2002-2003
Central Sales Tax,	Central Sales Tax	9,00.80	Additional Commissioner of	2006 to 2009
1956 (Goa)			Commercial Taxes
		16.67	Assistant Commissioner of Commercial Taxes, Panaji, Goa	2009-2010
Goa Value Added Tax Act,	Value Added Tax	2.07	Additional Commissioner of	2006-2007
2005			Commercial Taxes
Central Sales Tax Act 1956	Central Sales Tax	2,40.96	Deputy Commissioner of	2006-2007
(Gujarat)			Commercial Taxes (Appeal)
Karnataka Value Added Tax	Value Added Tax	9.88	Joint Commissioner of	2010-11
Act, 2003			Commercial Taxes (Appeals), Bengaluru
Central Sales Tax Act 1956	Central Sales Tax	6.76	Department of Trade and	2012-13
(Delhi)			Taxes, Delhi
Customs Act, 1962	Custom Duty	4.43	Commissioner (Appeals)	1996
		75.00	CESTAT	2011 to 2013

(viii) The Company did not have any outstanding loans or borrowing dues in respect of a financial institution or bank or to government or dues to debenture holders during the year.

(ix) According to the information and explanations given by the management, the Company has not raised any money by way of initial public offer / further public offer / debt instruments and term loans hence, reporting under clause 3 (ix) is not applicable to the Company and hence not commented upon.

(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud by the Company or no material fraud on the Company by the officers and employees of the Company has been noticed or reported during the year.

(xi) According to the information and explanation given by the management, the managerial remuneration has been paid/ provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013.

(xii) In our opinion, the Company is not a nidhi company. Therefore, the provisions of clause 3 (xii) of the order are not applicable to the Company and hence not commented upon.

(xiii) According to the information and explanations given by the management, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and on an overall examination of the balance sheet, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence, reporting requirements under clause 3 (xiv) are not applicable to the Company and, not commented upon.

(xv) According to the information and explanations given by the management, the Company has not entered into any noncash transactions with directors or persons connected with him as referred to in section 192 of Companies Act, 2013.

(xvi) According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.

For S R B C & CO LLP

Chartered Accountants

ICAI Firm Registration Number: 324982E/E300003

per Ravi Bansal

Partner

Membership Number: 49365

Place: Mumbai

Date: May 19, 2017

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Mar 31, 2015

We have audited the accompanying financial statements of Abbott India Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2015, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. 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 control that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

AUDITOR''S RESPONSIBILITY

Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

OPINION

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at March 31, 2015, its profit and its cash flows for the year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor''s report) Order, 2015 ("the Order") issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. As required by Section 143 (3) of the Act, we report that :

a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b. In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;

c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account;

d. In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

e. On the basis of written representations received from the directors as on March 31, 2015, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2015, from being appointed as a director in terms of Section 164 (2) of the Act;

f. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us :

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 33 (i) to the financial statements.

ii. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

ANNEXURE TO OUR REPORT OF EVEN DATE

(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) Some fixed assets were physically verified by the management during the year in accordance with a planned programme of verifying them once in three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.

(ii) (a) The management has conducted physical verification of inventory at reasonable intervals during the year.

(b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 189 of the Companies Act, 2013. Accordingly, the provisions of clause 3(iii) (a) and (b) of the Order are not applicable to the Company and hence not commented upon.

(iv) In our opinion and according to the information and explanations given to us and having regard to the explanation that certain items of inventory purchased from strategic vendors or are of special nature for which suitable alternative sources are not readily available for obtaining comparable quotations, there is an adequate internal control system commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any major weakness or continuing failure to correct any major weakness in the internal control system of the company in respect of these areas.

(v) The Company has not accepted any deposits from the public.

(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under Section 148(1) of the Companies Act, 2013, related to the manufacture of formulations and bulk drugs, and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.

(vii) (a) The Company is generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues applicable to it.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income Tax, Wealth Tax, Service Tax, Sales Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.

(c) According to the records of the Company, the dues outstanding of Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax and Cess on account of any dispute, are as follows :

(Rs. in Lakhs) Name of Statute Nature of Amount Forum where dispute Dues disputed is pending (Net of Payments)

Income Tax Act, 1961 Income Tax 2,47.08 ITAT

2,53.57 CIT Appeals

Central Excise Act, 1944 Excise Duty 3.20 Commissioner (Appeals)

3.56 Commissioner

2.51 Assistant Commissioner

26.60 CESTAT

The Bombay Sales Tax Act, Sales Tax 39.87 Deputy Commissio 1959 ner of Sales Tax

Central Sales Tax Act,1956 Central Sales 46.42 Maharashtra Sales Maharasthra Tax Tax Tribunal

Central Sales Tax Act,1956 Central Sales 81.80 The Joint Commiss (Maharashtra) Tax ioner of Sales tax (Appeals)

Uttar Pradesh Trade Tax Act, Sales Tax 0.59 Additional Commiss 1948 ioner of Commerc ial Tax (Appeals)

0.26 Trade Tax Tribunal

Uttar Pradesh Value Added Value Added 2.67 Additional Commiss Tax Act, 2008 Tax ioner of Commerci al Tax (Appeals)

Uttar Pradesh Sales Tax Act, Sales Tax 8.36 Additional Commiss 2008 ioner Commercial Tax (Appeals)

West Bengal Sales Tax Act, Sales Tax 2.44 Appellate & Revis 1994 ional Board Commercial Tax

Central Sales Tax Act, 1956 Sales Tax 2.66 Additional Commiss (West Bengal) ioner Commercial Taxes

5.31 Appellate & Revisional Board, Commercial Tax

3.81 Joint Commissi oner of Commercial Taxes



Name of Statute Period to which the amount relates

Income Tax Act, 1961 A.Y. 2006-2007, A.Y. 2008-2009, A.Y.2009-2010

A.Y. 2009-2010, A.Y. 2010-2011

Central Excise Act, 1944 1991-1992

1994 to 1995

1994 and 1997 to 2002

2005 to 2006

The Bombay Sales Tax Act, 1959 1999-2000

Central Sales Tax Act,1956(Maharashtra) 2007 to 2009

Central Sales Tax Act,1956(Maharashtra) 2009- 2010

Uttar Pradesh Trade Tax Act, 1948 1988-1989

1996-1997

Uttar Pradesh Value Added Tax Act, 2008 2007 to 2011

Uttar Pradesh Sales Tax Act, 2008 2010-2011

West Bengal Sales Tax Act, 1994 2004- 2005

Central Sales Tax Act, 1956(West Bengal)2006-2007, 2008 to 2010

2005- 2006, 2010-2011

2006- 2007

Name of Statute Nature of Amount Forum where dispute Dues disputed is pending (Net of Payments)

West Bengal Value Added Tax Value Added 10.60 Appellate & Revisi Act, 2003 Tax onal board Commer cial Taxes

11.11 Joint Commissioner of Commercial Taxes

2.71 Additional Commissioner of Commercial Taxes

40.49 Appellate and Revisional Board, Commercial Taxes, West Bengal

Kerala General Sales Tax Act, Sales Tax 13.05 SalesTax Appellate 1963 tribunal Additional Bench

Central Sales Tax, 1956 (Goa) Sales Tax 9,00.80 Additional Commiss ioner of Commercial Taxes

Central Sales Tax, 1956 (Goa) Sales Tax 16.67 Assistant Commissi oner of Commercial Taxes, Panaji, Goa

Goa Value Added Tax Act, Value Added 2.07 Additional Commissi 2005 Tax oner of Commercial Taxes

Central Sales Tax Act 1956 Sales Tax 2,40.96 Deputy Commissioner (Gujarat) of Commercial Taxes (Appeal)

Customs Act, 1962 Custom Duty 4.43 Commissioner (App eals)

Cenvat Credit Rules, 2004 Excise Duty 7.30 The Additional Commissioner Customs & Central Excise

3.14 The Assistant Commissioner Customs & Central Excise



Name of Statute Period to which the amount relates

West Bengal Value Added Tax Act, 2003 2005- 2006

2006- 2007

2010-2011

2009 to 2011

Kerala General Sales Tax Act, 1963 2002-2003

Central Sales Tax, 1956 (Goa) 2006 to 2009

Central Sales Tax, 1956 (Goa) 2009-2010

Goa Value Added Tax Act, 2005 2006-2007

Central Sales Tax Act 1956 (Gujarat) 2006-2007

Customs Act, 1962 1996

Cenvat Credit Rules, 2004 April 2006 to October 2009

November 2009 to June 2011

(d) According to the information and explanations given to us, the amount required to be transferred to Investor Education and Protection Fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made thereunder has been transferred to such fund within time.

(viii) The Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current and immediately preceding financial year.

(ix) Based on our audit procedures and as per the information and explanations given by the management, there are no dues to banks, financial institutions or debenture holders.

(x) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from bank or financial institutions.

(xi) The Company did not have any term loans outstanding during the year.

(xii) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud by the Company and no material fraud on the Company has been noticed or reported during the year.

For S R B C & CO LLP Chartered Accountants ICAI Firm Registration Number : 324982E

Per Ravi Bansal Partner Membership Number : 49365

Mumbai, May 27, 2015

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Mar 31, 2014

We have audited the accompanying fnancial statements of ABBOTT INDIA LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2014, the Statement of Profit and Loss and the Cash Flow Statement for the 15 months period from 1st January, 2013 to 31st March, 2014 and a summary of the significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

The Company''s Management is responsible for the preparation of these fnancial statements that give a true and fair view of the fnancial position, fnancial performance and cash flows of the Company in accordance with the Accounting Standards notifed under the Companies Act, 1956 ("the Act") (which continue to be applicable in respect of Section 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs) and in accordance with the accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the fnancial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors'' Responsibility

Our responsibility is to express an opinion on these fnancial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the fnancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the fnancial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the fnancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the fnancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company''s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Management, as well as evaluating the overall presentation of the fnancial statements.

We believe that the audit evidence we have obtained is suffcient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid fnancial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2014;

(b) in the case of the Statement of Profit and Loss, of the Profit of the Company for the 15 months period from 1st January, 2013 to 31st March, 2014; and

(c) in the case of the Cash Flow Statement, of the cash flows of the Company for the 15 months period from 1st January, 2013 to 31st March, 2014.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") issued by the Central Government in terms of Section 227(4A) of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by Section 227(3) of the Act, we report that:

(a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

(d) In our opinion, the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement comply with the Accounting Standards notifed under the Act (which continue to be applicable in respect of Section 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs).

(e) On the basis of the written representations received from the directors as on 31st March, 2014 taken on record by the Board of Directors, none of the directors is disqualifed as on 31st March, 2014 from being appointed as a director in terms of Section 274 (1)(g) of the Act.

ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT TO THE MEMBERS OF ABBOTT INDIA LIMITED

(Referred to in paragraph 1 under ''Report on other Legal and Regulatory Requirements'' section of our report of even date)

i. Having regard to the nature of the Company''s business/activities/result during the period, clauses xi, xii, xiii, xiv, xvi, xix and xx of para 4 of the Order are not applicable to the Company.

ii. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) Some of the fixed assets were physically verifed during the period by the Management in accordance with a regular programme of verifcation which, in our opinion, provides for physical verifcation of all the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verifcation.

(c) The fixed assets disposed of during the period, in our opinion, do not constitute a substantial part of the fixed assets of the Company and such disposal has, in our opinion, not affected the going concern status of the Company.

iii. In respect of its inventory:

(a) As explained to us, the inventories were physically verifed during the period by the Management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verifcation of inventories followed by the Management were reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verifcation.

iv. The Company has neither granted nor taken any loans, secured or unsecured, to/from companies, frms or other parties listed in the Register maintained under Section 301 of the Companies Act, 1956.

v. In our opinion and according to the information and explanations given to us, having regard to the explanation that some of the items purchased are of special nature and suitable alternative sources are not readily available for obtaining comparable quotations, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchases of inventory and fixed assets and the sale of goods and services. During the course of our audit, we have not observed any major weakness in such internal control system.

vi. To the best of our knowledge and belief and according to the information and explanations given to us, there are no contracts or arrangements that needed to be entered in the Register maintained in pursuance of section 301 of the Companies Act, 1956.

vii. According to the information and explanations given to us, the Company has not accepted any deposit from the public during the period within the meaning of the provisions of Sections 58A & 58AA or any other relevant provisions of the Companies Act, 1956. There are no unclaimed deposits as at the period end.

viii. In our opinion, the internal audit functions carried out during the period by an external agency appointed by the Management have been commensurate with the size of the Company and the nature of its business.

ix. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules, 2011 and the Cost Accounting Records (Pharmaceutical Industry) Rules, 2011 prescribed by the Central Government under Section 209(1)(d) of the Companies Act, 1956 and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

x. According to the information and explanations given to us in respect of statutory dues:

(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities.

(b) There were no undisputed amounts payable in respect of Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues in arrears as at 31st March, 2014 for a period of more than six months from the date they became payable.

Details of dues of Income-tax, Sales Tax, Custom Duty and Excise Duty which have not been deposited as on 31st March, 2014 on account of disputes are given below:

Name of Statute Nature of Dues Forum where Dispute is pending

Income Tax Act, 1961 Income Tax ITAT

CIT Appeals

DCIT Central Excise Act, 1944 Excise Duty Commissioner (Appeals)

Commissioner Assistant Commissioner CESTAT

The Bombay Sales Tax Act, 1959 Sales Tax Deputy Commissioner of Sales Tax

Central Sales Tax Act,1956 Sales Tax The Joint Commissioner of (Maharashtra) Sales tax (Appeals)

Uttar Pradesh Trade Tax Act, 1948 Sales Tax Additional Commissioner of Commercial Tax (Appeals) Trade Tax Tribunal

Uttar Pradesh Value Added Tax Act, Value Added Tax Additional Commissioner of 2008 Commercial Tax (Appeals)

West Bengal Sales Tax Act, 1994 Sales Tax Appellate & Revisional Board, Commercial Tax

Central Sales Tax Act, 1956 Sales Tax Sr. Joint Commissioner of (West Bengal) Commercial Taxes

Additional Commissioner of Commercial Taxes Appellate & Revisional Board, Commercial Tax Joint Commissioner of Commercial Taxes West Bengal Value Added Tax Act, 2003 Value Added Tax Appellate & Revisional Board, Commercial Taxes Joint Commissioner of Commercial Taxes Sr.Joint Commissioner of Commercial Taxes Additional Commissioner of Commercial Taxes Kerala General Sales Tax Act, 1963 Sales Tax Sales Tax Appellate Tribunal, Additional Bench

Central Sales Tax, 1956 (Goa) Sales Tax Additional Commissioner of Commercial Taxes

Name of Statue Period to which the Rs. in Lakhs amount relates

Income Tax Act, 1961 A.Y. 2006-2007, A.Y. 2,47.08 2008-2009 and A.Y. 2009-2010

A.Y. 2009-2010 and 1,13.73 A.Y. 2010-2011

A.Y. 2010-2011 1,34.46

Central Excise Act, 1944 1991-1992 3.20

1994 to 1995 3.56

1994 and 1997 to 2002 2.51

2005 to 2006 26.60 The Bombay Sales Tax Act, 1959 1999-2000 39.87

Central Sales Tax Act,1956 (Maharashtra) 2007 to 2009 46.42

Uttar Pradesh Trade Tax Act, 1948 1988-1989 0.59

1996-1997 0.26

Uttar Pradesh Value Added Tax Act, 2008 2007-2008, 2009 to 4.71 2011

West Bengal Sales Tax Act, 1994 2003 to 2005 17.38

Central Sales Tax Act, 1956 (West Bengal) 2006-2007 2.28

2008 to 2011 1.00 2005-2006 4.69 2006-2007 3.81 West Bengal Value Added Tax Act, 2003 2005-2006 14.77 2006-2007 11.11 2006-2007 2.44 2008 to 2011 95.16 Kerala General Sales Tax Act, 1963 2002-2003 13.05

Central Sales Tax, 1956 (Goa) 2006 to 2009 9,00.80

Name of Statute Nature of Dues Forum where Dispute is pending

Central Sales Tax, 1956 (Goa) Sales Tax Assistant Commissioner of Commercial Taxes, Panaji, Goa

Goa Value Added Tax Act, 2005 Value Added Tax Additional Commissioner of Commercial Taxes

Central Sales Tax Act – Sales Tax Deputy Commissioner of Ahmedabad Commercial Taxes (Appeal)

Customs Act, 1962 Custom Duty Commissioner (Appeals)

Cenvat Credit Rules, 2004 Excise Duty The Additional Commissioner Customs & Central Excise The Assistant Commissioner Customs & Central Excise

Name of Statue Period to which the Rs. in Lakhs amount relates

Central Sales Tax, 1956 (Goa) 2009-2010 16.67

Goa Value Added Tax Act, 2005 2006-2007 2.07

Central Sales Tax Act – Ahmedabad 2006-2007 2,40.96

Customs Act, 1962 1996 4.43

Cenvat Credit Rules, 2004 April 2006 to October 7.30 2009

November 2009 to 3.14 June 2011

There were no dues of Wealth Tax, Service Tax and Cess which have not been deposited as on 31st March, 2014 on account of disputes.

xi. The Company does not have accumulated losses as at 31st March, 2014 and the Company has not incurred cash losses in the fifteen months period ended on that date and in the immediately preceding fnancial year.

xii. According to the information and explanations given to us, the Company has not given guarantees for loans taken by others from banks and fnancial institutions.

xiii. In our opinion and according to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we report that funds raised on short-term basis have, prima facie, not been used during the period for long-term investment.

xiv. During the period the Company has not made any preferential allotment of shares to the parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956.

xv. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company has been noticed or reported during the period.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants (Registration No. 117366W/ W-100018)

Khurshed Pastakia

Partner (Membership No. 031544)

MUMBAI, May 28, 2014

---

Dec 31, 2012

1. We have audited the attached Balance Sheet of Abbott India Limited, ("the Company") as at December 31, 2012, Statement of Profit and Loss and the Cash Flow Statement of the Company for the year ended on that date, both annexed thereto. These financial statements are the responsibility of the Company''s management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and the disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors'' Report) Order, 2003 (CARO) issued by the Central Government in terms of Section 227(4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to in paragraph 3 above, we report as follows:

(a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

(b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;

(c) the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account;

(d) in our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in compliance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956;

(e) in our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(i) in the case of the Balance Sheet, of the state of affairs of the Company as at December 31, 2012;

(ii) in the case of the Statement of Profit and Loss, of the profit of the Company for the year ended on that date; and

(iiii) in the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date.

5. On the basis of written representations received from the Directors as on December 31, 2012 and taken on record by the Board of Directors, none of the Directors is disqualified as on December 31, 2012 from being appointed as a director in terms of Section 274(1)(g) of the Companies Act, 1956.

ANNEXURE TO THE AUDITOR''S REPORT TO THE MEMBERS OF ABBOTT INDIA LIMITED

(Referred to in paragraph 3 of our report of even date)

i. Having regard to the nature of the Company''s business/activities/result, clauses x, xi, xii, xiii, xiv, xv, xvi, xviii, xix and xx of CARO are not applicable

ii. In respect of its fxed assets:

(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of the fxed assets.

(b) The fxed assets were physically verifed during the year by the Management in accordance with a regular programme which, in our opinion, provides for physical verifcation of all the fxed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verifcation.

(c) The fxed assets disposed of during the year, in our opinion, do not constitute a substantial part of the fxed assets of the Company and such disposal has, in our opinion, not affected the going concern status of the Company.

iii. In respect of its inventory:

(a) As explained to us, the inventories were physically verifed during the year by the Management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verifcation of inventories followed by the Management were reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verifcation.

iv. The Company has neither granted nor taken any loans, secured or unsecured, to/from companies, frms or other parties listed in the Register maintained under Section 301 of the Companies Act, 1956.

v. In our opinion and according to the information and explanations given to us, having regard to the explanations that some of the items purchased are of special nature and suitable alternative sources are not readily available for obtaining comparable quotations, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchases of inventory and fxed assets and the sale of goods and services. During the course of our audit, we have not observed any major weakness in such internal control system.

vi. To the best of our knowledge and belief and according to the information and explanations given to us, there were no transactions required to be entered in the register maintained in pursuance of section 301 of the Companies Act, 1956.

vii. According to the information and explanations given to us, the Company has not accepted any deposit from the public during the year within the meaning of the provisions of Sections 58A & 58AA or any other relevant provisions of the Companies Act, 1956. There are no unclaimed deposits as at the year end.

viii. In our opinion, the internal audit functions carried out during the year by an external entity appointed by the Management have been commensurate with the size of the Company and the nature of its business.

ix. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under Section 209(1) (d) of the Companies Act, 1956 in respect of formulations and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

x. According to the information and explanations given to us in respect of statutory dues:

(a) The Company has generally been regular in depositing undisputed dues, including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities.

(b) There were no undisputed amounts payable in respect of Income-tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory dues in arrears as at December 31, 2012 for a period of more than six months from the date they became payable.

(c) Details of dues of Income-tax, Sales Tax, Custom Duty and Excise Duty which have not been deposited as on December 31, 2012 on account of disputes are given below:

(Rs. In Lakhs)

Forum where Dispute is Year to which Amount the Statute Nature of Dues pending amount relates

Income Tax Act, 1961 Income Tax ITAT A.Y 2005 to 2008 1,53.81

Central Excise Act, 1944 Excise Duty Commissioner (Appeals) 1991-1992 3.20

Excise Duty Commissioner 1994 to 1995 3.56

Excise Duty Assistant Commissioner 1994 and 1997 to 2002 2.51

Excise Duty CESTAT 2005 to 2006 26.60

The Bombay Sales Tax Act, 1959 Sales Tax Deputy Commissioner of 1999-2000 39.87 Sales Tax

Uttar Pradesh Trade Tax Act, 1948 Sales Tax Additional Commissioner of 1988-1989 1.59 Commercial Tax (Appeals)

Sales Tax Trade Tax Tribunal 1996-1997 0.26

Uttar Pradesh Value Added Tax Act, Value Added Tax Additional Commissioner of 2007-2011 4.26 2008 Commercial Tax (Appeals)

West Bengal Sales Tax Act, 1994 Sales Tax Appellate & Revisional Board, 2003-2005 17.38 Commercial Tax

Central Sales Tax Act, 1956 Sales Tax Sr. Joint Commissioner of 2006-2007 2.28 (West Bengal) Commercial Taxes

Sales Tax Additional Commissioner of 2003-2004 and 0.57 Commercial Taxes 2008-2010

Sales Tax Appellate & Revisional Board, 2005-2006 4.69 Commercial Tax

Sales Tax Joint Commissioner of 2006-2007 3.81 Commercial Taxes

West Bengal Value Added Tax Act, 2003 Value Added Tax Appellate & Revisional Board, 2005-2006 14.77 Commercial Taxes

Value Added Tax Joint Commissioner of 2006-2007 11.1 Commercial Taxes

Value Added Tax Sr Joint Commissioner of 2006-2007 2.44 Commercial Taxes

Value Added Tax Additional Commissioner of 2007 to 2010 1,45.63 Commercial Taxes

Value Added Tax Deputy Commissioner of 2012-2013 10.41

Sales Tax

Kerala General Sales Tax Act, 1963 Sales Tax Sales Tax Appellate Tribunal, 2002-2003 13.05 Additional Bench

Central Sales Tax, 1956 (Goa) Sales Tax Assistant Commissioner of 2005-2006 2,92.43 Commercial Taxes

Sales Tax Additional Commissioner of 2006 to 2009 9,00.72 Commercial Taxes

Goa Value Added Tax Act, 2005 Value Added Tax Assistant Commissioner of 2005-2006 0.31 Commercial Taxes

Value Added Tax Additional Commissioner of 2006-2007 2.07 Commercial Taxes

Central Sales Tax Act - Gujarat Sales Tax Deputy Commissioner of 2006-2007 2,40.96 Commercial Taxes (Appeal)

Customs Act, 1962 Custom Duty Commissioner (Appeals) 1996 4.43

Cenvat Credit Rules, 2004 Excise Duty The Additional Commissioner April 2006 to October 7.30 Customs & Central Excise 2009

Excise Duty The Assistant Commissioner November 2009 to June 3.14 Customs & Central Excise 2011

There were no disputed dues which remained unpaid in respect of Wealth Tax, Service Tax and Cess during the year.

xi. In our opinion and according to the information and explanations given to us and on an overall examination of the Balance Sheet, we report that funds raised on short-term basis have not been used during the year for long- term investment.

xii. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company has been noticed or reported during the year.

For DELOITTE HASKINS & SELLS

Chartered Accountants

(Registration No.117366W)

B. R Shroff

Partner

(Membership No. 034382)

MUMBAI, February 20, 2013

---

Dec 31, 2010

1. We have audited the attached Balance Sheet of Abbott India Limited, ("the Company") as at 31st December, 2010, the Profit and Loss Account and the Cash Flow Statement of the Company for the period from 1st December, 2009 to 31st December, 2010, both annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and the disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order, 2003 (CARO) issued by the Central Government in terms of Section 227(4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to in paragraph 3 above, we report as follows:

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;

c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in compliance with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956;

e) In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st December, 2010;

ii) In the case of the Profit and Loss Account, of the profit of the Company for the period from 1st December, 2009 to 31st December, 2010; and

iii) In the case of the Cash Flow Statement, of the cash flows of the Company for the period from 1st December, 2009 to 31st December, 2010.

5. On the basis of written representations received from Directors as on 31st December, 2010 taken on record by the Board of Directors, none of the Directors is disqualified as on 31st December, 2010 from being appointed as a director in terms of Section 274(l)(g) of the Companies Act, 1956.

Annexure to the Auditors Report

(Referred to in paragraph 3 of our report of even date)

i. Having regard to the nature of the Companys business/ activities/result, clauses x, xi, xii, xiii, xiv, xv, xvi, xviii, xix and xx of CARO are not applicable.

ii. In respect of its fixed assets:

a) The Company has maintained proper records showing full particulars, including quantitative details and situation of the fixed assets.

b) The fixed assets were physically verified during the period by the Management in accordance with a regular programme of which, in our opinion, provides for physical verification of all fixed assets at reasonable intervals. According to the information and explanation given to us, no material discrepancies were noticed on such verification.

c) The fixed assets disposed off during the period, in our opinion, do not constitute a substantial part of the fixed assets of the Company and such disposal has, in our opinion, not affected the going concern status of the Company.

iii. In respect of its inventory:

a) As explained to us, the inventories were physically verified during the period by the Management at reasonable intervals.

b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the Management were reasonable and adequate in relation to the size of the Company and the nature of its business.

c) In our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification.

iv. The Company has neither granted nor taken any loans, secured or unsecured, to/from companies, firms or other parties listed in the Register maintained under Section 301 of the Companies Act, 1956.

v. In our opinion and according to the information and explanations given to us, having regard to the explanations that some of the items purchased are of special nature and suitable alternative sources are not readily available for obtaining comparable quotations, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchases of inventory and fixed assets and the sale of goods and services. During the course of our audit, we have not observed any major weakness in such internal control system.

vi. To the best of our knowledge and belief and according to the information and explanations given to us, there were no transactions required to be entered in the register maintained in pursuance of section 301 of the Companies Act, 1956.

vii. According to the information and explanations given to us, the Company has not accepted any deposit from the public during the period within the meaning of the provisions of Sections 58A & 58AA or any other relevant provisions of the Companies Act, 1956. There are no unclaimed deposits as at the period end.

viii. In our opinion, the internal audit functions carried out during the period by an external entity appointed by the Management have been commensurate with the size of the Company and the nature of its business.

ix. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under Section 209(1) (d) of the Companies Act, 1956 in respect of formulations and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of the records with a view to determining whether they are accurate or complete. To the best of our knowledge and according to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records for any other product of the Company.

x. According to the information and explanations given to us in respect of statutory dues:

a) The Company has generally been regular in depositing undisputed dues, including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities, except for certain dues in respect of Profession Tax as is stated in Para x (b) below.

b) There were no undisputed amounts payable in respect of Income-tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory dues in arrears as at 31st December, 2010 for a period of more than six months from the date they became payable, except dues of Rs. 4.23 lakhs payable in respect of Profession Tax under the Assam Professions Trades, Callings and Employments Taxation Act, 1947 as at 31st December, 2010. Of the above amount of Rs. 4.23 lakhs, an amount of Rs. 3.77 Lakhs (including Interest of Rs. 1.42 Lakhs) is outstanding for a period of more than 6 months as at 31st December, 2010.

c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and Cess which have not been deposited as on 31st December, 2010 on account of disputes are given below :

Statute Nature of Dues Forum where Dispute is pending

Income Tax Act, 1961 Disputed Income Tax Demand. ITAT

Disputed Income Tax Demand Dispute Resolution Panel (DRP)

Central Excise Act, 1944 Classification dispute Commissioner (Appeals)

Modvat credit availed on inputs Commissioner

Modvat credit availed on capital goods Assistant Commissioner

Recovery of amount allegedly Assistant Commissioner refunded erroneously

Reversal of credit for Cremaffin Commissioner & Furamide brought back for relabeling.

Denial of Modvat credit on material Assistant Commissioner received beyond the stipulated period of six months from the date of invoice-Jejuri

Demand for excise duty on empty Assistant Commissioner plastic containers

Classification dispute CESTAT

CESTAT

The Bombay Sales Tax Disputed Set off Deputy Commissioner of Act, 1959 Sales Tax

Disputed Set off Maharashtra Sales Tax Tribunal

Uttar Pradesh Trade Enhancement of turnover Joint Commissioner Tax Act, 1948 (Appeals)

Breakages & Damages Claim Trade Tax Tribunal Disallowed

Seizure of Consignment by mobile Joint Commissioner

squad (Appeals)

Seizure of Consignment by mobile Additional

squad Commissioner (Appeals)

Disallowance of Credit Notes on Deputy Commissioner goods returned

Central Sales Tax Act, Rejection of inter-State credit notes Joint Commissioner

1956 (Uttar Pradesh) (Appeals)







Central Sales Tax Act, 1956 (Uttar Pradesh)

Statute Period to Amount which the (Rs. In amount Lakhs) relates

Income Tax Act, 1961 A.Y2005:2006 23.90

A.Y2007-2008 1,36.92

Central Excise Act, 1944 1991-1992 3.20

1993-1994 0.93

1994-1995 0.33

2000 1.00

1994-1995 2.63

1997-1998 0.64

1998- 2002 0.54

2005 24.27

2006 2.33 The Bombay Sales Tax Act, 1959 1999-2000 39.87

2000-2001 9.07

Uttar Pradesh Trade Tax Act, 1948 1988-1989 1.59

1996-1997 0.26

2008-2009 0.72

2009-2010 0.80

2010-2011 1.39

Central Sales Tax Act, 1956 (Uttar Pradesh) 2007-2008 0.62

Statute Nature of Dues Forum where Dispute is pending

West Bengal Sales Tax Breakages and Damages claim Revisional Authority, Act, 1994 Disallowed Commercial Taxes, West Bengal

Disallowance of Bonus Claim and Appellate Revisional Sales Return Board, Commercial Taxes, West Bengal

Central Sales Tax Act, Disallowance of declaration forms Sr.Joint Commissioner of 1956 (West Bengal) Commercial Taxes

West Bengal Value Non consideration of Challan Appellate & Revisional Added Tax Act, 2003 of Rs. 2.68 Lakhs, Credit Note Board, Commercial disallowance & Interest imposed. Taxes, West Bengal

Disallowance of Credit Notes, Sales Sr. Joint Commissioner to institutions etc. of Commercial Taxes

Enhancement of Turnover Additional Commissioner of Commerical Taxes

Kerala General Sales Tax on stock transfer treated as Sales Tax Appellate Tax Act, 1963 sales Tribunal, Additional Bench

Central Sales Tax, 1956 Disallowance of Declaration Forms Assistant Commissioner (Goa) of Commercial Taxes, Margao, Goa.

Disallowance of Branch Transfer Additional Value. Commissioner of Commercial Taxes, Panaji.Goa

Goa Value Added Tax Disallowance of Input Tax Credit Additional Act, 2005 Commissioner of Commercial Taxes, Panaji.Goa

Disallowance of proportionate Input Additional Tax Credit Commissioner of Commercial Taxes, Panaji, Goa

Customs Act, 1962 Demand for payment of differential Commissioner (Appeals) duty Cenvat Credit Rules Disallowance of Cenvat credit The Additional.

2004 (Service Tax) Commissioner Customs & Central Excise, Goa.

Disallowance of Cenvat credit The Assistant (Service Tax) Commissioner Customs & Central Excise, Goa.











Cenvat Credit Rules ,2004

Statute Period to Amount which the (Rs. In amount Lakhs) relates

West Bengal Sales Tax Act, 1994 T003-2004 1017

2004-2005 4.77

Central Sales Tax Act, 1956 (West Bengal) 2006-2007 2.28

West Bengal Value Added Tax Act, 2003 2005-2006 4.17

2006-2007 2.44

2007-2008 1,12.54

Kerala General Sales Tax Act, 1963 2002-2003 13.05

Central Sales Tax, 1956 (Goa) 2005-2006 2,92.43

2006-2007 3,97.00

Goa Value Added Tax Act, 2005 2005-2006 0.31

2006-2007 2.07

Customs Act, 1962 1996 4.43

Cenvat Credit Rules ,2004 April2006 to 7.30 October 2009 November 1.39 2009 to September 2010

There were no disputed dues which remained unpaid in respect of Wealth Tax and Cess during the period.

xi. In our opinion and according to the information and explanations given to us and on an overall examination of the Balance Sheet, we report that funds raised on short-term basis have not been used during the period for long- term investment.

xii. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company has been noticed or reported during the period.

For DELOITTE HASKINS & SELLS

Chartered Accountants

(Registration No.117366W)

K. A. Katki Partner (Membership No. 038568)

MUMBAI, February 28, 2011

---

Nov 30, 2009

1. We have audited the attached Balance Sheet of Abbott India Limited, ("the Company"), as at November 30, 2009, the Profit and Loss Account and also the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Statement on Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Attention is invited to note B (4) of Schedule 16 annexed to and forming part of the financial statements, regarding the re-appointment of and remuneration paid to the Managing Director, subsequent to the date of reappointment, i.e. November 01, 2009, amounting to Rs 16.87 lakhs, which is subject to the approval of the Members at the ensuing Annual General Meeting of the Members of the Company.

5. Further to our comments in the Annexure referred to above, we report that :

(i) we have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit;

(ii) in our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

(iii) the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

(iv) in our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956;

(v) on the basis of written representations received from directors as on November 30, 2009 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on November 30, 2009 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956;

(vi) in our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with Significant Accounting Policies and Notes thereon, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of the Balance Sheet, of the State of Affairs of the Company as at November 30, 2009;

(b) in the case of the Profit and Loss Account, of the Profit for the year ended on that date; and

(c) in the case of the Cash Flow Statement, of the Cash Flows for the year ended on that date.

Annexure referred to in paragraph 3 of the Auditors Report on the Accounts of Abbott India Limited

1. In respect of its fixed assets:

(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) Physical verification of fixed assets is being conducted in a phased programme by the management designed to cover all assets over a period of three years, which in our opinion is reasonable having regard to the size of the Company and the nature of assets. The discrepancies noticed on such verification were not material and have been properly dealt with in the books of account.

(c) Although some of the fixed assets have been disposed off during the year, in our opinion and according to the information and explanations given to us, the ability of the Company to continue as a going concern is not affected.

2. In respect of its inventories:

(a) As explained to us, the inventories were physically verified during the year by the management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventories and the discrepancies noticed on such physical verification between physical stock and book records were not material and have been adequately dealt with in the books of account.

3. According to the information and explanations given to us, the Company has not granted or taken any loan secured or unsecured to or from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Accordingly sub clauses (a), (b), (c), (d), (e), (f) and (g) of clause (iii) are not applicable.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any major weakness in such internal controls.

5. To the best of our knowledge and belief and according to the information and explanations given to us, there were no transactions required to be entered in the register maintained in pursuance of Section 301 of the Companies Act, 1956.

6. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits within the meaning of Section 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public.

7. In our opinion, the internal audit functions carried out during the year by an external entity appointed by the management have been commensurate with the size of the Company and nature of its business.

8. We have broadly reviewed the books of account and records maintained by the Company relating to the manufacture of formulations, pursuant to the Order made by the Central Government for the maintenance of cost records under Section 209(1 )(d) of the Companies Act, 1956 and are of the opinion that prima facie, the prescribed records have been maintained and the prescribed accounts are in the process of being made up. We have however, not made a detailed examination of the records with a view to determining whether they are accurate or complete. To the best of our knowledge and according to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records for any other product of the Company.

9. In respect of statutory dues:

(a) According to the information and explanations given to us, the Company has been regular in depositing undisputed statutory dues, including Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other material statutory dues with the appropriate authorities during the year; except that: Provident Fund (along with Interest and damages) in respect of an International worker amounting to Rs 13.47 lakhs, was outstanding for more than 6 months as at the year end. The said amount has since been paid subsequent to the year end.

(b) According to the information and explanations given to us, details of disputed Income Tax, Excise Duty, Sales Tax and Customs Duty, which have not been deposited as on November 30, 2009 on account of any dispute are given below:

Nature of Statute Nature of Dues Amount Rs In Lakhs

Income Tax Act, 1961 Disputed Income Tax Demand 1,15.78 Disputed Income Tax Demand 23.90

Disputed Income Tax Demand 39.02

Central Excise Act, 1944 Classification dispute 3.20

Modvat credit availed on inputs 0.93

Modvat credit availed on capital goods 0.33

Recovery of amount allegedly refunded 1.00 erroneously

Reversal of credit for Cremaffin & 2.63 Furamide brought back for relabeling.

Denial of Modvat credit on material 0.64 received beyond the stipulated period of six months from the date of invoice-Jejuri

Demand for excise duty on empty plastic 0.54 containers

Classification dispute 24.27

2.33

The Bombay Sales Tax Act, Disputed Set off 39.87 1959

Disputed Set off 9.07

Uttar Pradesh Trade Tax Act, Enhancement of turnover 2.30 1948

Breakages & Damages Claim Disallowed 0.26

Seizure of Consignment by mobile squad 0.72

West Bengal Sales Tax Act, Breakages and Damages claim 10.17 1994 Disallowed

Disallowance of Bonus Claim and Sales 4.77 Return

Central Sales Tax Act, 1956 Form F Pending 0.19 (West Bengal)

0.19

Form F Demand 0.09

Disallowance of declaration forms 2.28

West Bengal Value Added Tax Non consideration of Challan of 4.17 Act, 2003 Rs 2.68 lakhs, Credit Note disallowance & Interest imposed.

Disallowance of Credit Notes, Sales to 2.44 institutions etc

Kerala General Sales Tax Act, Tax on stock transfer treated as sales 10.91 1963

Rajasthan Value Added Tax Act, Disallowance of Credit Notes 1.15 2003

Central Sales Tax Act, 1956 Declaration Forms (F forms) 0.44 (Rajasthan)

Central Sales Tax Act, 1956 Disallowance of Declaration Forms 2,92.43 (Goa)

Goa Value Added Tax Act, 2005 Disallowance of Input Tax Credit 0.31

Customs Act, 1962 Demand for payment of differential duty 4.43



Nature of Stataue Period to Forum where dispute is which the pending Amount relates

Income Tax Act, 1961 A.Y. 2004-2005 CIT (Appeals)

A.Y. 2005-2006 CIT (Appeals)

A.Y. 2006-2007 CIT (Appeals)

Central Excise Act, 1944 1991-1992 Commissioner (Appeals)

1993-1994 Commissioner

1994-1995 Assistant Commissioner

2000 Assistant Commissioner

1994-1995 Commissioner

1997-1998 Assistant Commissioner

1998-2002 Assistant Commissioner

2005 CESTAT

2006 CESTAT

The Bombay Sales Tax Act, 1959 1999-2000 Assistant Commissioner of Sales Tax

2000-2001 Maharashtra Sales Tax Tribunal

Uttar Pradesh Trade Tax Act, 1948 1988-1989 Additional Commissioner (Appeals)

1996-1997 Trade Tax Tribunal

2008-2009 Joint Commissioner (Appeals)

West Bengal Sales Tax Act, 1994 2003-2004 Revisional Authority, Commercial Taxes, West Bengal

2004-2005 Appellate Revisional Board, Commercial Taxes, West Bengal

Central Sales Tax Act, 1956 (West Bengal) 2003-2004 Revisional Authority, Commercial Taxes, West Bengal

2004-2005 Deputy Commissioner of Commercial Taxes

2005-2006 Deputy Commissioner of Commercial Taxes

2006-2007 Sr Joint Commissioner of Commercial Taxes

West Bengal Value Added Tax Act, 2003 2005-2006 Appellate Revisional Board, Commercial Taxes, West Bengal

2006-2007 Sr Joint Commissioner of Commercial Taxes

Kerala General Sales Tax Act, 1963 2002-2003 Sales Tax Appellate Tribunal, Additional Bench

Rajasthan Value Added Tax Act, 2003 2005-2006 Assistant Commissioner, Special Circle

Central Sales Tax Act, 1956 (Rajasthan) 2005-2006 Assistant Commissioner, Special Circle

Central Sales Tax Act, 1956 (Goa) 2005-2006 Assistant Commissioner of Commercial Taxes, Margao, Goa.

Goa Value Added Tax Act, 2005 2005-2006 Assistant Commissioner of Commercial Taxes, Margao, Goa.

Customs Act, 1962 1996 Commissioner (Appeals)

There were no disputed dues which remained unpaid in respect of Wealth Tax, Service Tax and Cess during the year.

10. The Company does not have any accumulated losses as at the end of the financial year. The Company has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year.

11. In our opinion and according to the information and explanations given to us, the Company has not obtained any borrowings from any banks or financial institutions or by way of debentures.

12. In our opinion, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities

13. In our opinion, the Company is not a chit fund or a Nidhi/Mutual benefit fund/Society. Therefore, the provisions of clause (xiii) are not applicable to the Company.

14. In our opinion and according to the information and explanations given to us, the Company is not a dealer or trader in shares, securities, debentures and other investments. Accordingly, the provisions of clause (xiv) are not applicable to the Company.

15. In our opinion and according to the information and explanations given to us, the Company has not given any guarantees for loans taken by others from banks or financial institutions.

16. The Company has not obtained any term loans during the year.

17. According to the information and explanations given to us, and on an overall examination of the Balance Sheet of the Company, funds raised on short term basis have prima-facie, not been used during the year for long term investment.

18. According to the information and explanations given to us, the Company has not made any preferential allotment of shares to parties or companies covered in the Register maintained under Section 301 of the Companies Act, 1956.

19. The Company has not issued any debentures during the year.

20. The Company has not raised any money by public issues during the year.

21. To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company was noticed or reported during the year.

For DELOITTE HASKINS & SELLS

Chartered Accountants

(ICAI Reg. No. 117366W)

K A KATKI

Mumbai, Partner

February 01, 2010 Membership No. 038568