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Pfizer Ltd.

BSE: 500680 Sector: Health care
NSE: PFIZER ISIN Code: INE182A01018
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OPEN 5801.50
PREVIOUS CLOSE 5841.10
VOLUME 421
52-Week high 6107.65
52-Week low 4180.05
P/E 46.89
Mkt Cap.(Rs cr) 26,872
Buy Price 5868.05
Buy Qty 9.00
Sell Price 5875.80
Sell Qty 13.00
OPEN 5801.50
CLOSE 5841.10
VOLUME 421
52-Week high 6107.65
52-Week low 4180.05
P/E 46.89
Mkt Cap.(Rs cr) 26,872
Buy Price 5868.05
Buy Qty 9.00
Sell Price 5875.80
Sell Qty 13.00

Pfizer Ltd. (PFIZER) - Director Report

Company director report

To the Members

Your Directors take pleasure in presenting this 69th Annual Report alongwith the Audited Financial Statement for the financial year ended March 31 2020. TheCompany operates only in one business segment that is "Pharmaceuticals" andthis Report covers its Pharmaceutical business performance.

DIVIDEND

The Board of Directors (‘Board') at their meeting held on April 27 2020 declaredan Interim (Special) Dividend of `320/- (3200%) per equity shares for the financial yearended March 31 2020 mainly to commemorate 70 years of Pfizer's existence in India and tooptimize utilization of surplus cash. The said Interim (Special) Dividend was paid on May19 2020 electronically through bank transfer. The Interim (Special) dividendpayout was Rs.1463.93 Crore. The Board at their Meeting held on June 15 2020recommended a final dividend of Rs.10/- (100%) per equity share for the financial yearended March 31 2020. The dividend payout will be Rs.45.75 Crore. The totaldividend payout for the Financial Year ended March 31 2020 aggregates to Rs.1509.68Crore.

FINANCIAL HIGHLIGHTS

(Rs. in crore)
Particulars Year ended March 31 2020 Year ended March 31 2019
Net Sales 2096.32 2030.49
Other Operating Income 55.33 51.01
Revenue from Operations 2151.65 2081.50
Other Income 184.02 167.39
Profit Before Tax 642.49 659.91
Income Tax Expense 133.36 230.86
Profit for the year 509.13 429.05
Total other comprehensive income (net of tax) (8.93) 1.05
Total comprehensive income for the year 500.20 430.10

Your Company's sales for the financial year ended March 31 2020 stood at Rs.2096.32Crore as compared to Rs.2030.49 Crore in the previous year which represents a growth of3.24%. The sales for the year under review are not strictly comparable with that ofthe previous year on account of the impact of COVID-19 and divestment of the rights andinterest in certain brands. Adjusting the impact of COVID-19 and divestments the restatedgrowth for the year under review would be 6.3%.

Profit before tax for the financial year ended March 31 2020 was Rs.642.49 Crore ascompared to Rs.659.91 Crore in the previous year. The profit after tax stood at Rs.509.13Crore for the financial year ended March 31 2020 as compared to Market datasource: IQVIA TSA MAT March 2020 Rs.429.05 Crore in the previous year. The profits for thefinancial year under review and for the previous year included Rs.30.53 Crore andRs.28.93 Crore respectively on account of sale of the Company's rights and interests incertain brands.

INDIAN ECONOMIC OVERVIEW

The year 2020 was defined by the singular and unprecedented event of COVID-19 pandemic.The rampant spread of this pandemic severely impacted global economic activity andtriggered significant downside risks to the overall global economic outlook. TheInternational Monetary Fund (IMF) in its June 2020 update of its flagship WorldEconomic Outlook forecasted a ~4.9% global growth in 2020 1.9% below its April 2020estimate.

India like other countries around the world has been severely impacted. The IMF hasprojected a deeper contraction of 4.5% for India for the year 2021 citing a moreextended lockdown period and slower-than-anticipated recovery in the first half of 2020.Similarly international rating agencies such as Moody's Investors Service Fitch Ratingsand S&P Global Ratings have predicted a 4-5% contraction in India's economic growthrate during the financial year 2020-21.

While assessing the exact impact on India is difficult with the uncertainty on howlong the pandemic would last and the economic impact of current lockdowns there ishopeful anticipation of a U-shaped recovery.

Recovery is expected to manifest in different sectors in different ways. It is expectedthat the country's economic recovery is going to be led by rural sector which in turn mayfeed into manufacturing sector as well. The depth of the slowdown would present anopportunity to the companies to rebound and recover though the road back today will besteeper.

With an overall stringent restriction on movement specific industries will facepressure as rising debt and defaults affect market sentiments stress the financial sectorand reduce domestic demand.

Current Healthcare and Pharmaceuticals Environment

Like every other industry the Healthcare Industry was no exception to thechallenges faced due to COVID-19 lockdown and the resultant restrictions. The globalpandemic led to a significant impact on the Healthcare Industry resulting in a drasticreduction in the outpatient footfalls in hospitals. This coupled with postponementof elective procedures by patients have adversely impacted the healthcare sector.

The Indian pharmaceutical sector was poised to grow at a CAGR of 9.3% (+2.0%) reachingRs.239620 Crore by 2024.

However the COVID-19 outbreak and its rapid spread across the globe has had both adirect and an indirect impact on the pharmaceutical industry. The uncertainty around itscontainment is expected to impact healthcare demand disruptions on supply chain andchanges to macroeconomic outlook.

In the 2020-21 Union Budget the government allocated Rs.67484 Crore to healthcare amodest 5.7% increase from the previous year. However India continues to fall short ofachieving the target of spending 2.5% of GDP on healthcare by 2025. While the governmentis stepping up its efforts to broaden access to subsidised healthcare the progresshowever is expected to be gradual and patients will continue to foot the majority of thenational healthcare bill.

With the roll-out of the government-funded Ayushman Bharat-Pradhan Mantri Jan ArogyaYojana (AB-PMJAY) and growth of private health insurance market a proportion of thepopulation with access to some form of health insurance cover may increase in the comingyears. Private clinics however will remain dominant providers of primary care. TheGovernment is putting efforts to strengthen public provision to shift focus from treatmentto prevention and effective disease management. The government plans to create anetwork of 150000 health and wellness centres by 2022 offering free access tocomprehensive primary care services. Around 29000 such centres are reported in operationas of January 2020.

Indian Pharmaceutical Industry Market

Overview:

The Indian pharma market (IPM) grew at 10.8% over the April 2019-March 2020 periodwith a turnover of Rs.150153 Crore. The growth was primarily driven by price whichcontributed 5.2% to the total followed by new products at 3.2% and volume at 2.4%.Multinational companies hold about 20% share in the market and have grown at 7.4%.

Therapeutic Growth:

Anti-infectives continues to be the top therapy area within the Industry. Respiratorysegment has the highest growth rate of 14.5% among the key therapy areas. The Acute Caresegment is growing at 10.4% which has improved over last year's rate of 9%. Key growthdrivers for the acute market have been Anti-infectives Pain and Respiratory.Chronic segment has maintained its growth at 12% with both Cardiac and Anti-Diabetictherapies continuing to post double-digit growths.

COVID-19 Impact on Pharmaceutical Industry:

The impact of COVID-19 is visible on the performance of the Industry as month-on-monthgrowth has slipped to 5.4% (Mar'20) from 14.5% (Feb'20). The healthcare sector is at theepicenter of this unprecedented global pandemic challenge. There has been a significantdrop in both in-patient and out-patient footfall for private hospital chains be ita single specialty multi-specialty tertiary-care hospitals or even diagnostics. Impactis lesser on chronic therapies as patients have stocked up on essential medications toprepare for extended lockdowns. With the emerging COVID-19 situation the Industry hasseverely suffered as IQVIA has projected growth for MAT December 2020 between 0.8% to 2%.However a fair degree of recovery is expected in 2021 and the Industry may yet achieveits Pre-COVID-19 growths. Early monsoons too may result in uptake of Anti-Infectives whichwill further boost co-prescribed therapies like Vitamins Pain and Gastro.

The ongoing COVID-19 situation has brought some degree of Government focus onbolstering the healthcare infrastructure and modernizing policies particularly thoserelated to ease of regulatory eco-system. The COVID-19 pandemic has served a starkreminder that economies can be brought to a grinding halt if public healthcare systemsare inadequate clearly demonstrating the need for increased investment in the Sector.Should this focus on strengthening healthcare in India continues it may have an overallpositive impact on the healthcare and pharmaceuticals industry in the country.

AN OVERVIEW OF THE OPERATING ENVIRONMENT

The Government expended significant efforts to ease up and help resolve operationalchallenges faced by the Industry resulting from COVID-19 related disruptions. TheDepartment of Pharmaceuticals played a key role in maintaining a high degree of engagementwith the Industry Associations resolving roadblocks that challenged the manufacturing andtransportation of medicines at federal and state levels. Consequent to the efforts of theIndustry and partnership role played by the Government there were no major incidents ofany shortage of essential medicines during the peak of the COVID-19 related lockdowns inthe country.

Looking at the bigger picture the Government's efforts for providing access toaffordable and quality healthcare to the poorest sections of the society has seen a boostdue to the continued rollout of the AB-PMJAY scheme across the country. There is also anincreasing focus on simplifying regulatory processes so as to make it easy for innovativetherapies to be produced and/or launched in India.

During the year under review a number of areas of policy and public healthcareprogramming were taken up by the Government.

Process for Revision of the National List of Essential Medicines (NLEM) and PriceControls: The Government constituted a Standing National Committee Medicines (SNCM)and initiated the process of revision of the NLEM 2015 in areas including cardio-vasculardiseases oncology respiratory diseases anti-microbial resistance etc.Simultaneously the SNCM undertook external stakeholder consultations wherein variousstakeholders including industry associations shared their views regarding the revision. Aspecific stakeholder consultation was held focusing on anti-infective agents aligning withanti-microbial resistance. Your Company as well as various Industry Associations havemade representation to the SNCM providing evidence-based arguments for consideration. Inview of the COVID-19 pandemic the SNCM has also been urged to postpone implementation ofthe revised NLEM to 2021.

Intellectual Property Rights (IPR) Protection: IPR protection continues to be anarea of interest for your Company. The Industry has been in discussion with thegovernment on various IPR issues at different forums and has raised concerns on pendingreforms. In particular the current provisions of pre and post grant oppositions thatsignificantly delay the launch of innovative therapies in the country lack of a patentinformation system that prevents innovator companies from defending their IP and gaps inIP enforcement including the illegal inflow of patented molecules to India fromneighboring markets are some of the issues raised at multiple platforms with theGovernment. Meaningful IP reforms would help provide an enabling environment that promotesand protects innovation in India.

Drugs and Magic Remedies (Objectionable Advertisements) (Amendment) Bill 2020: TheMinistry of Health and Family Welfare Government of India initiated early discussions onamendments to the DMR (OA) Amendment Bill 2020 in order to keep pace with the changingtimes and technology. Your Company had strongly advocated for amending this Actsuch that capacities and capabilities of the private and not-for-profit sectors canbe leveraged to strengthen and expand the Government's health awareness and preventivehealth campaigns and initiatives.

Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) and Role of PharmaIndustry:

During the year under review the National Health Authority (NHA) theimplementing agency for AB-PMJAY undertook a comprehensive review of the Health BenefitPackages (HBPs) of various specialties by constituting 24 Specialist Committees. TheseCommittees evaluated the existing HBPs in order to remove aberrations recommendedinclusions and exclusions and advised on the cost of each HBP among others. Therecommendations after review by the NHA Review Committee were announced as HBP 2.0 inOctober 2019; by March 31 2020 seven states had adopted it and the expectation is thatmore states will be covered in the coming year. Your Company continues to advocatefor greater partnerships between the AB-PMJAY program and the private sector to help abroader availability of innovative therapies to the program's beneficiaries.

Regulatory system strengthening:

The Central Drugs Standards and Control Organization (CDSCO) is aspiring to transformthe Indian regulatory system to Stringent Regulatory Authority (SRA) as outlined by WHOand at par with the International Council for Harmonisation of Technical Requirements forPharmaceuticals for Human Use (ICH). It is vital to strengthen the drug regulatory systemin the country through identification of gaps and monitoring regulatory activities togain the trust of the public on the system and ensure that the drugs manufactured andmarketed in the country are safe and effective.

Overall the operating environment in India was defined by an immediate and short-termfocus to resolve COVID-19 related bottlenecks and minimize disruption of manufacturingsupply chains and availability of medicines.

Over a longer term your Company believes that a positive environment would entailfocus on several key priorities viz.:

Enhancing Access by creating opportunities and frameworks forpartnerships with the private sector in flagship Government programs such as AyushmanBharat and Jan Aushadhi program.

Evolving from traditional drug pricing regulations to make room formodern models such as tiered pricing while simplifying onerous provisions of priceimplementation.

Making India's IP eco-system among the best in the world by addressinglong awaited reforms on IP laws and plugging gaps in IP enforcement.

Removing or simplifying archaic policies and practices in particularthose that prevent private and not-for profit organizations from raising awareness onprevention of diseases and a simplification of regulatory systems.

Review of Strategic Alternatives for Upjohn Business

Pfizer Inc. USA had announced on July 29 2019 that it had entered into a definitiveagreement to combine its Upjohn Business which consists off-patented branded and genericestablished medicines with Mylan N.V. thereby creating a new global pharmaceuticalCompany. It may be noted that five brands currently marketed by Pfizer Limited in Indiaviz. Lyrica Amlogard Daxid Dilantin and Viagra are expected to be a part of thiscombined entity. The transaction is anticipated to close in mid-2020 subject toregulatory approvals and satisfaction of other customary closing conditions.

Review of Strategic Alternatives for Global Consumer Healthcare Business

Pfizer Inc. USA had announced on October 10 2017 that it was considering a review ofstrategic alternatives for its Global Consumer Healthcare business. Further to this inDecember 2018 Pfizer Inc. had announced the formation of a joint venture between PfizerInc. and GlaxoSmithKline Plc. to create a premier global consumer healthcare company withrobust iconic brands.

On July 31 2019 Pfizer Inc completed the transaction in which Pfizer Inc andGlaxoSmithKline (GSK) combined its respective consumer healthcare businesses into a newconsumer healthcare joint venture that operates globally under the GSK Consumer Healthcarename. The Joint Venture is a category leader in pain relief respiratory and vitaminsminerals and supplements and therapeutic oral health and is the largest global OTCconsumer healthcare business.

Your Company had been informed by Pfizer Inc. that the brands Anne French and Anacinwhich are currently marketed by your Company will become part of the portfolio of theJoint Venture Company.

Thane Plant – Business Transfer Agreement

In September 2015 the Company entered into a Business Transfer Agreement (BTA) fortransfer of the Company's manufacturing facility at Thane as a going concern. The BTA willbe concluded upon receipt of all necessary approvals.

REVIEW OF OPERATIONS:

COVID-19 impact on Business Operations:

COVID-19 a pandemic caused by the Novel Coronavirus has emerged as an unprecedentedchallenge globally and to the pharmaceutical companies in particular who have aresponsibility towards public health. As a participant in this eco-system yourCompany has taken a number of steps to respond to this unique situation and ensure supplyof essential medicines to its customers. The Company's Goa Plant continues to remainoperational at almost its usual capacity while strictly following the protocols on socialdistancing and providing safe working environment to its workforce at the Goa Plant.

There has been no significant adverse operational impact on the Company's supply chainduring March 2020 due to the nationwide lockdown imposed by the Government of India inview of COVID-19. The Company has monitored the impact of COVID-19 on all aspects of itsbusiness. In view of the continued uncertainties and its inability to predict the extendand duration of COVID-19 situation the Company currently is unable to predict any futureimpact on its business operations. Your Company will continue to ensure supply ofessential medicines and take steps to mitigate any risks associated with COVID-19pandemic.

The Company transitioned into a full Work From Home model and several measures were putin place for communications technology and productivity improvements to help employeescope with this change. The Company also made various contributions to Government healthdepartment public healthcare workers etc. as part of its COVID-19 CSR initiatives.

COVID-19 insurance coverage to Stockists:

As the world continues to battle the unprecedented challenge of COVID-19 your Companyplayed an effective role to ensure that every patients has access to the medicines theyneed. During this time of fear and contagion your Company also ensured that theStockists and their employees who selflessly dedicate their services as a shining exampleof the nobility of the profession of healthcare are protected in case of any unfortunateCOVID-19 related situation.

Your Company partnered with a leading insurance and risk management service firm toprovide its Stockists and their employees a special complimentary COVID-19 Insurance Coverto take care of COVID-19 treatment costs for a period of one year. This would benefitapproximately 25000 Stockists and their employees across the country.

This goodwill gesture towards our trade partners has been widely appreciated. Whileyour Company hopes and prays for the safety and good health of its Stockists and theiremployees we are sure that this step would ease their financial concerns and help themfocus on the need of the hour-to ensure supply of essential drugs to the needy patients.

Business Operations:

Your Company's commercial operations are conducted through distinct business units thatfocus on clearly defined therapeutic areas. Between these business units your Companycollectively addresses 15 therapy areas with a portfolio of over 150 products that includetherapeutics and vaccines.

1. Vaccines:

The Vaccine business focuses on Prevenar13 a pneumococcal conjugate vaccine that isadministered to children between 6 weeks to 17 years and adults above 50 years of age.This vaccine provides broad coverage against the most prevalent 13 serotypes ofstreptococcus pneumoniae.

Your Company continues to enjoy a leadership position in the pneumococcal vaccinesmarket with a share of 61%. With its continuing preference among Pediatricians Prevenar13 is now the 13th ranked brand in the Indian Pharma Industry.

In India the incidence of community-acquired Pneumonia (CAP) is 4 million cases a yearwith up-to 20% requiring hospitalization. The burden of the disease is higher amongstchildren individuals who are suffering with underlying chronic conditions and those withage-group above 50.

Your Company being a leader in the pneumococcal vaccines market is committed towardscreating awareness education and make vaccines available so that more individuals can beprotected against devastating pneumococcal infections.

To support Healthcare Professionals (HCPs) with robust scientific updates and globalbest practices your Company conducted a large number of experience-sharing initiatives byenlisting the support of international speakers.

Your Company partnered with parenting health portals and e-commerce platforms to createawareness and education of pneumococcal vaccination amongst parents. Understanding thatsuch initiatives help individuals realize the value of vaccination your Company extendedthe program to e-Pharmacies YouTube and dedicated health portals. The team also createddigital awareness resources such as Fight Pneumo microsite and a toll-free number fromwhere additional information on vaccination can be obtained.

Availability of vaccines for adults is a critical step to complete the circle ofprotection. Hence your Company partnered with approximately 100 hospitals across India toencourage them to deploy adult vaccination centers – a dedicated unit from whereinformation on adult immunization can be obtained and vaccination be administered. YourCompany has an ambition to expand such strategic partnership to protect more lives againstpneumococcal disease in the future.

2. Inflammation and Immunology:

The Inflammation and Immunology vertical makes available medicines to patientssuffering from chronic diseases related to immune system like Rheumatoid ArthritisPsoriasis Psoriatic Arthritis Ankylosing Spondylitis and Internal Bowel Diseases. Theseadvance therapies include drugs made from protein-cytokine and oral therapies that manageinflammation and pain.

The goal of this team is to transform the management of chronic inflammatory diseasesmany of which are poorly managed by existing treatment options that provide onlysymptomatic relief.

Your Company has two products in the Rheumatology therapy area:

Enbrel is the first Tumor Necrosis Factor (TNF) inhibitor launched across the globefor chronic indications like Rheumatoid Arthritis (RA) Ankylosing Spondylitis (AS)Psoriatic Arthritis (PsA) Psoriasis (PsO) and Juvenile Idiopathic Arthritis (JIA). Tilldate this auto prefilled injection that can be applied subcutaneously among all agegroups has impacted the lives of over 6 million patients worldwide.

Enbrel is currently prescribed by Rheumatologist Dermatologist PediatricRheumatologist and selected orthopedic treating physicians in India. Your Company played akey role in maintaining the growth of this 20-year old brand via various medical marketinginitiatives like

Train the Trainer Case Based Discussions and Communication campaign focusing on safetyand efficacy etc.

Launched in India in 2016 Xeljanz (tofacitinib) is the first oral Janus Kinase(JAK) inhibitor a type of medication that functions by inhibiting the activity of one ormore of the Janus kinase family of enzymes launched for chronic conditions such as RA.Today Xeljanz is the market leader in the ORAL Category with 12% Market share. Being OralMedication it does not require cold storage it is safer compared to TNFs and has ease ofcompliance.

In recognition of its growth and the unique digital awareness program built around itXeljanz was also recognized as the "Best New Product Launch Brand" by theIndustry Association OPPI in 2019. In its efforts to shape the ORAL category your Companyrolled out medical-marketing initiatives like Experience Sharing Meetings RA SummitTOFACON National & Regional Experience Webinars Meet the Masters and otherscientific driven engagements.

One of the stand-out initiatives launched by your Company was the creation of Asia'slargest Facebook community called All About Arthritis – a platform to createawareness on quality of life symptoms and management for patients suffering fromarthritic diseases. The community today has over 100k followers. Additionally yourCompany launched first-of-its-kind in-clinic and digital patient reach program wherepatients along with physicians share their success stories with other patients.

3. Internal Medicine:

In the third quarter of FY19-20 your Company's Internal Medicine (IM) team framed anew mission for the next five years and developed a strategic roadmap – "Todeliver sustainable market-beating growth for core brands enabled by innovativego-to-market strategy and accelerate growth with new launches in relevantspecialties". The team undertook a significant restructuring exercise to build anorganization poised to deliver the envisaged strategy through a three pronged strategicapproach:– a specialty focus that leverages the strength of science; a targetedapproach where different go-to-market solutions are deployed that are customized torespective territories and a business model that delivers sustainable growth.

Consequently the Internal Medicine business was categorized into three focus areasbased on multiple parameters including the nature of current business populationdensity analysis of prescribing Healthcare Professionals (HCP) universe and potential forfuture growth. With these changes and a new leadership team in place the InternalMedicine team is well poised to deliver sustainable market beating growth for each of itskey portfolios.

Respiratory Portfolio:

Your Company has a 9.8% market share in the respiratory segment with its flagship brandCorex Dx that has maintained leadership position in the dry cough RPM with 15.2% marketshare with value growth of 11% and prescription growth of 23%. With continuous focus andgrowth the brand is now part of the prestigious Top 100 brands of the IPM. As part offuture growth strategy your Company continues to focus on building brands in the wetcough segment with line extensions of Corex LS and Corex LS Junior. In the OCS segmentyour Company has maintained our 7% market share with focus on prescription-led growth with5% prescriber growth.

Vitamins Portfolio:

Your Company's flagship brand Becosules continues to lead and shape the B-complexvitamins market and has a strong prescriber base of ~60000 doctors. With a legacy of morethan 60 years the brand is still growing faster than the market with an Evolution Index(EI) of 102 which has resulted in moving its market share to 73.3%. Continuous focus onexpanding the prescriber base and innovative channel initiatives have been the key pillarsto strengthen the brand's leadership.

Neuroscience and Cardiovascular:

Your Company's Neuroscience portfolio represents multiple brands that are leaders intheir respective segments. Pacitane leads in its respective therapeutic category with 70%market share. Ativan (Lorazepam) is the second largest anxiolytic brand in theBenzodiazepine Tranquilizer market. During this year there has also been renewed focus onthe smoking cessation drug Champix with dedicated efforts on HCP education capacitybuilding and also providing end-to-end solutions for smokers in their Quit Journeythrough awareness programs etc.

The Cardiovascular (CV) team operates in the anti-hypertensive segment with itsbrand Minipress XL.

Your Company continued its engagement activities in the area of uncontrolledhypertension through medico-marketing meetings with Nephrologists and Physicians ontreating hypertension in people with chronic kidney disease. Over 2500 healthcarepractitioners were involved in various educational initiatives.

Eliquis:

Eliquis (Apixaban) a Factor Xa Inhibitor Anticoagulant is a leading oralAnticoagulant predominantly prescribed by Cardiologists and Neurologists. Eliquis is theleader in the NOAC Market with an EI of 139. Eliquis grew by 91% over last year sameperiod as per MAT Mar 2020.

During the year under review the team has bought in extraordinary focus on the brandthrough a dedicated unit that is focused on building brand Eliquis. The new go-to-marketmodel enables your Company to drive significant patient outcomes through maximizing reachand effort at core specialty of cardiology.

Your Company has been on the forefront of leading scientific education programs likeInternational speaker programs Masterclasses Cardio-Neuro Connect programs AUGUSTUSround table meets AF live webinars etc. which have helped improve the overall managementof patients with Atrial Fibrillation. Over 3000 Cardiologists and Neurologists have beenengaged in various educational initiatives. During the year in review Eliquis has madesignificant progress to attain its leadership in the top 200 Hospitals of the country.

Women's Healthcare:

Your Company's portfolio in Women's Healthcare comprises many of the segment's iconicbrands supporting important life-stages like pregnancy and overall reproductive health.Brands like Folvite Autrin Premarin and Ovral L continue to maintain their leadershipposition in the represented market and the consolidated portfolio continues to grow fasterthan the market average.

Partnership with reputed institutions and societies like Federation of Obstetric andGynaecological Societies of India (FOGSI) and Indian Menopause Society have helped driveengagement of a large number of Gynecologists through tailor-made programs in the areas ofreproductive health maternal nutrition and menopause through Indian and global expertsengaging large number of Gynecologists.

Your Company collaborated with FOGSI and Spina Bifida Foundation for comprehensivematernal and reproductive health driving awareness and HCP training on the importance ofmaternal nutrition to prevent birth defects and better diagnosis via point-of-caredetection kits which provide instant hemoglobin readings. Brands like Folvite and Ovral-Lcontinue to grow strong. New launches in the portfolio continue to be the fastest growingwith an EI of over 100. Folvite DHA is now ranked third (out of 59 brands) and FolviteActive is ranked seventh (out of 73 brands).

Gastric portfolio:

Your Company has made strong strides towards the consolidation of its gastroenterologyportfolio spearheaded by the PPI (Proton Pump Inhibitor) brand Neksium by drivingrelevance at a specialty level. Neksium continues to be one of the fastest growing NIs inits represented market with imminent potential for growth through preferential share gainamongst gastroenterologists.

Other leading brands such as Gelusil and Mucaine have further entrenched your Company'sdominance in the gastric therapy displaying market beating growth and registering thehighest market share in last 12 months.

4. Hospitals

Your Company's Hospitals business unit focuses on institutions such as hospitals andnursing homes with an advanced anti-infectives and sterile injectables portfolio. The yearunder review stood out with the team launching two new and breakthrough innovativetherapies from Pfizer Inc's global portfolio in India.

Zavicefta

In 2019 the team launched Pfizer's original breakthrough innovative and patented drugZavicefta 2gm/0.5gm (ceftazidime-avibactam) and has already recorded a business of overRs.9 Crore in the first nine months of launch. This novel drug is indicated for themanagement of hospital-acquired pneumonia including ventilator-associated pneumonia(HAP/VAP) complicated intra-abdominal infection (cIAI) and complicated urinary infection(cUTI) in adults. The emergence and spread of carbapenemase-producing pathogens are aconcern and has highlighted the urgent need for new antimicrobial agents. Zavicefta is thefirst anti-infective launched by your Company in a decade and represents the cutting edgeof our medical research and innovation.

Zinforo

The team has also recently launched Zinforo (ceftaroline fosamil)-a novel cephalosporinindicated for treatment of adult patients with community-acquired Pneumonia.

This introduction further strengthens our commitment to bring to our stakeholders thevery latest of medical innovation in anti-infectives. Community-acquired Pneumoniafeatures second in the list of most common cause of mortality due to infectious diseasesin India with 25% mortality rate in the ICU. With its activity against Streptococcuspneumoniae which is associated with a significant burden of the disease Zinforo providesthe benefit of early response within four days.

The Team believes that the launch of Zavicefta and Zinforo is an excellent example ofhow your Company is focusing on key therapeutic areas to achieve our purpose of bringingbreakthroughs that change patients' lives.

During the year under review this business unit made significant progress to attainits "Leadership in Hospitals" goal. Several interventions were made toconsolidate this leadership position such as roll-out of Antimicrobial Stewardshipprograms to encourage appropriate use of antibiotics in hospitals which has beenidentified as a key requirement for hospitals across. The Hospital Category

Market data source: IQVIA TSA MAT March 2020 also engaged with stakeholders beyonddoctors in the hospital to gain collaborative insights to become value partners for theseinstitutions.

The team revamped its go-to-market model to bring in a customer-centric approachfocusing on key hospital institutions to maximize opportunity and effort for themulti-brand portfolio. The Hospital category maintained its leadership in representedmarkets and four brands are currently leaders in their molecule segments with a double-digitgrowth of 14%.

The category has a strong presence across the anti-bacterial continuum rangingfrom beta-lactam/ beta-lactamase-inhibitor (BL/BLI) products to high-end anti-bacterialproducts. Amongst these Magnex is the leading brand with approximately 5% market share byvalue in the represented market segment and has posted a growth of 19% vs last year. In2017 the team acquired and launched the brand Meronem an injectable antibiotic indicatedfor the treatment of serious bacterial infections which are difficult to treat due toresistant pathogens. Meronem enjoys over 6.8% market share by value in the representedmarket and has posted a growth of 6% vs last year.

5. Consumer Healthcare

Your Company rolled out various trade initiatives for Anacin and retained focus ondifferentiated packs for different geographies to enhance retail penetration. Masspoint-of-sale material was used in-store to improve brand visibility.

Your Company sustained its brand communication and messaging for Anne French tostrengthen brand relevance for consumers. The media mix was strengthened with the additionof digital channels to expand consumer outreach. Local visibility was improved throughregular display campaigns rolled out at key retail outlets to ensure in-store brandpresence.

DIGITAL MARKETING

Your Company is dedicated to delivering new and innovative solutions in DigitalMarketing. During the year under review the initiatives focused beyond scalingreach and frequency with HCPs: to provide credible human health information to patientsand caregivers.

The Team has built a strong eco-system of digital opportunities in alignment withglobal initiatives and delivered ~1.9 million touchpoints with HCPs through VirtualPromotions across therapies. The team has also undertaken social media community buildingefforts for patients and caregivers such as ‘All About Arthritis' on Facebook withover 100k followers. The Vaccines portfolio leveraged the power of video content marketingby leveraging YouTube to build awareness with ~1.9 million video views.

Your Company's Digital Marketing efforts stood out during the months impacted by theCOVID-19 pandemic where your Company has virtually reached over 22000 HCPs acrossspecialties on third party online initiatives. Further your Company delivered over ~1.9million communication impression to covered and uncovered HCPs across online marketingplatforms.

In other digital initiatives the team has demonstrated reach and frequency with tradepartners with access to over 300K digital touchpoints for offers promotions etc.

MANUFACTURING OPERATIONS

Overview

Your Company's manufacturing operations are carried out in full compliance with locallaws and in line with the stringent Global Pfizer Quality and EHS standards. Your Companyhas taken stringent measures to ensure that there is no disruption in production due tothe COVID-19 pandemic. Your Company has ensured that all colleagues maintain a socialdistance of minimum two meters during transportation and manufacturing operations. Othermeasures including daily thermal screening of all employees entering the site provisionof mask for all employees and placing of sanitization dispensers across the site arebeing followed. Your Company's plant in Goa was categorized as an ‘essential service'and thus remained operational even during the lockdown.

People

Over the past year your Company conducted several programs and initiatives to trainand motivate colleagues to deliver best-in-class performance including IntegratedManufacturing Excellence Program (IMEx) for leaders Six Sigma Green Belt training andOperational Excellence trainings.

Environment Sustainability

Your Company's continued focus on renewable resources has created an excellent modelfor environmental sustainability through which effort is made to reduce waste and a strongemphasis is put on conservation of resources across manufacturing site. The Goa Plantfollows stringent global safety environmental health and hygiene requirements and thisyear has received a number of awards including award for Excellence in EnvironmentSustainability.

Your Company installed one 50 KW Hybrid Renewable Energy plant consisting of 45 KWSolar Photovoltaic cells and one 5 KW wind turbine. Your site is planning to installanother 70 KW Solar Energy plant in the coming year.

The Plant continued its drive towards energy conservation initiatives includingreplacement of old manufacturing operations machines with high-efficiency machines therebyreducing energy consumption. Your site also replaced old dehumidifiers with new generationhigh efficiency units to conserve energy. These initiatives have resulted in significantreduction in power consumption and carbon footprint.

MEDICAL AFFAIRS

The year under review was attributed to transformation leadership and Deliveringfirst-in-class Science and Winning the Digital Race in these unprecedented times for theMedical Team. The Team partnered with a large number of healthcare practitioners medicalinstitutions and associations as relevant to each business line and remained committed todelivering impactful insights and disseminating medical knowledge to meet the ultimategoal of improving patient care. Additionally the team has been agile in disseminatingtimely appropriate information on COVID-19 through a multispecialty panel discussion.

A. Medical Education

During the period under review the team delivered first-in-class science to 14000HCPs through various initiatives including general physicians (ECHO) consultingphysicians neurologists cardiologists (AF Connect) gynecologists (partnership with SBFand ESI) gastroenterologists (GUTS) nephrologists (Nephro Connect) and psychiatrists(Psychiatry Connect) via face-to-face and virtual meetings.

Your Company developed case-based modules in partnership with the Academy of InfectionManagement (AIM) a non-profit UK-based organization that aims to conduct educationalprogrammes and help improve health outcomes in infectious disease. The modules were rolledout to HCPs across varied specialties to combat the menace of AMR. The team partneredwith medical professional associations for antimicrobial stewardship for training ofclinicians (AIM) nurses (CCNS) and pharmacists (IPA) and management of fungal diseases(FISF) and continued Antimicrobial Testing Leadership and Surveillance (ATLAS) at nineinstitutes PAN India.

To strengthen your Company's leadership position in private hospitals the teamconducted 42 programs (Pharmacy Academia Virtual Preceptorship Program with Internationalexpert and Nursing Academia) in 40 key institutes across India training over 1200pharmacists and 300 nurses. The team has also supported ID Fellowships in order to improvethe capability for management of infectious disease in the country.

Additionally the team also conducted six "IN IT TOGETHER:Medical-to-Medical update webinars" to reach over 60 rheumatologists anddermatologists covering recent updates in rheumatology through patient registriesguideline updates and Pfizer efforts during the COVID-19 pandemic. The regionally-hostedwebinars were leveraged for updating the clinician fraternity to reach out to more than100 rheumatology experts.

The team hosted 135 virtual meetings with 7500 pediatricians at their clinicsdisseminating information on pneumococcal disease the current practices in pneumococcaldisease and prevention.

B. Insights Generation

Your Company's Medical team conducted multiple advisory board meetings with anobjective to gain structured insights engaging 150 HCPs across specialties likecardiologist neurologists ID specialist nephrologist pulmonologist rheumatologistsdermatologists hematologists and pediatricians. Additionally the team also gatheredinsights on new clinical evidence on oral anticoagulants in high risk patients with AF aswell as recently published clinical trials-AUGUSTUS and ARISTOPHANES.

C. Data Generation and Publications

During the period under review the team contributed to valuable and extensive datageneration and has been presenting at scientific conferences and submitted for publishingin science journals.

The team collaborated with the Indian Academy of Pediatrics on ACVIP guidelines onImmunization during COVID-19 pandemic the scientific discussions helped justify themedical value of vaccination with pneumococcal vaccine. Additionally a chapter titled"Vaccine Industry and Manufacturing of Vaccines" in the third edition of "IAPtextbook of vaccines" was released in January 2020.

The team published posters on clinical and scientific outcomes in renowned publicationsand forums. The team published the papers on "in vitro activity of tigecycline""expert review and recommendations on rational use of proton pump inhibitors"(JAPI) and "pharmacogenomics and treatment resistant depression" (Indian JPrivate Psychiatry). Additionally a few manuscripts on antacids and uncontrolledhypertension are under review.

The team also worked towards publishing first-of-its-kind Indian long-term extensionexperience for up to seven years for Indian subset of patients in global clinical trials.The article titled "Tofacitinib in the treatment of Indian patients with rheumatoidarthritis: A post hoc analysis of efficacy and safety in Phase 3 and long-term extensionstudies over 7 years" was published in the International Journal of rheumaticdiseases.

HUMAN RESOURCES

Faced with the unprecedented disruption caused due to the COVID-19 pandemic yourCompany has responded with agility to facilitate a smooth transition enabling all ouremployees to safely work from home alongside maintaining business continuity.

The team continued to leverage the power of digital platforms to hire and on-board allour new hires thus ensuring minimal disruption to the employee experience.

To ensure that the employees and their families continue to stay safe and protectedduring this phase your Company extended a special Pfizer COVID Care Plan for employeesand their spouses along with reimbursement of COVID-19 testing for employees and theireligible dependents.

During this time your Company also launched a Telemedicine facility for its employeesand their families which they can avail to tele consult with healthcare professionals fromthe comfort of their homes.

The crisis is putting to test not only our physical but also our mental and emotionalresolve. Keeping this in mind your Company partnered with a global technology platform toprovide physical mental and emotional well-being services at no cost to employees.

Overall the HR team focused on four key priorities:

A. Attracting Talent

Strengthening our Employee Value Proposition (EVP):

In line with your Company's Bold vision of Unleashing the Power of our People andmaking Pfizer an Amazing Workplace for all the team began the journey of co-creatingPfizer's Employee Value Proposition in partnership with a leading external partner across-section of internal colleagues and those who aspire to be associated with yourCompany. The newly-crafted Employee Value Proposition conveys your Company's purpose andembodies the values as an employer. The Employee Value Proposition campaign will bringalive the tenets of Pfizer's meritocratic culture driven by equity and joy and willproclaim as an Employer of Choice in the marketplace.

Pfizer Sales Training Program: Every year your Company's HR team partners with thecommercial teams to induct bright young talents with a flair for sales and the zeal tolearn and build their career in the pharmaceutical industry. With the objective ofinfusing young talent into the organisation improving gender diversity and beingfuture-ready the ‘Pfizer Sales Trainee Program' continues to attract high potentialgraduates from campus. These cohorts of fresh graduates are supported by a stronginduction plan titled ‘Campus to Corporate' followed by a strong learning journeyfor a 12-month period.

Differentiated Rewards Approach for Diversity Hiring:

Your Company believes that a diverse workforce is a key enabler for it to unlock itsfull potential. Your Company's women colleagues in the field are the brand ambassadorscapable of inspiring their peers to embrace a career in pharma sales. With this in mindthe team launched a ‘Women as Allies for Women' initiative. Under the aegis of thisinitiative your Company's referral policy was made more attractive encouraging the womenworkforce to refer fellow women peers from their network to earn double the referralamount.

B. Developing Talent & Capability

Building a Strong Career Architecture: Your Company is committed to identifying anddeveloping talent from within ensuring that its employees get the right experiences anddevelopment opportunities to that prepares them for the opportunities in the future. Thecurrent Sales Career Architecture was thus revamped based on feedback of employees andthe evolving needs of your Company's businesses. The new framework ensures a well-roundedapproach to identifying and assessing potential for future commercial leadership roles.The selected talent pool of high potential colleagues is then put through a well-craftedbespoke development journey aimed at preparing them to take on leadership roles in thefuture.

Launch of the Learning Architecture: With continued focus on developing managerialcapability using a structured approach a personalized learning journey SANKALP waslaunched for those colleagues who demonstrate managerial potential. SANKALP is designed topromote self-growth and development through a blended learning approach which includes anappropriate mix of on the job peer to peer classroom/online as well as self-pacedlearning. The program aims at enabling a colleague to make a successful transition frombeing an individual contributor to becoming a manager of a team.

Enabling Managers to Own the Employee Experience:

Managers are the last mile experience of Pfizer for colleagues today. It is thusimportant that your Company's managers are fully equipped with the right tools andinformation to make these experiences rich and positive. With this endeavor your Companylaunched a Conversations That Count capability building program that aims to facilitate adeeper understanding of the key employee life-cycle events and the role that managers playto bring alive the Pfizer Values with the right level of engagement.

C. Creating an Inclusive Environment & Focusing on Employee Wellness Creating anInclusive and Safe Environment:

Your Company is committed to building a workforce that is as diverse as thepatients and communities that we serve. Towards this your Company has prioritized GenderDiversity as a core area of focus and has committed to double the number of womencolleagues in field and increase the representation of women colleagues in the IndiaLeadership Team. In the field your Company has earmarked headquarters that are safe andconducive for women colleagues and are working towards enhancing the representation ofwomen substantially in these headquarters. To ensure a safe and supportive workenvironment to women colleagues your Company launched a Travel Safe policy whereby a womancolleague in field is eligible to avail a fully reimbursed cab facility should they findthemselves working late in the field.

D. Breakthrough Benefits & Wellness

Flexible Work Arrangements: Your Company knows colleagues today juggle multiplepriorities and optimum employee productivity occurs when they have the flexibility andindependence to manage those priorities appropriately. Thus where possible a FlexibleWork Arrangement (FWA) framework has been put in place. This enables employees to availflexible working hours work from home facility or avail part time work thus empoweringthem to balance their personal and professional lives appropriately. This proposition willalso help attract a wide range of diverse talent pool into your organisation.

Pfizer Employee Assistance Program: As part of Breakthrough Benefits a new globalEmployee Assistance Plan (EAP) is now available to support employees to deal with dailystresses and challenges of a busy working life. Through this program colleagues can reachout for expert opinion on wellness and mental health seek counselling advice and tips onvarious aspects of day to day life such as parenting ageing balancing work and life etc.

PREVENTION OF SEXUAL HARASSMENT POLICY

The ‘Sexual Harassment of Women at Workplace (Prevention Prohibition andRedressal) Act 2013' ("the Act") seeks to protect women colleagues againstsexual harassment in their workplace. Your company has specially designed training modulesto help all colleagues and contingent associates to understand what constitutes sexualharassment in the workplace and how to address it; as well as the organisation's role inpreventing it.

Your Company has complied with the provisions relating to the constitution of InternalComplaints Committee under the Act. The details of complaints filed and disposed of duringthe Financial Year under review are as under:

Particulars
Number of Complaints pending as on the beginning of the Financial Year 2019-20.

2

Number of Complaints filed during the Financial Year 2019-20.

Nil

Number of Complaints disposed of during the Financial Year 2019-20.

2

Number of Complaints pending as on the end of the Financial Year 2019-20.

Nil

LEGAL DIVISION

Your Company's Legal Division is committed to providing pragmatic solutions in linewith the legal and commercial interests of the Company. Being a specialized departmentthe Legal Division works proactively with the business to drive compliant and innovativebusiness ideas strategies and programs right from inception and thereby promotes yourCompany's commitment to Patients First.

During the COVID-19 situation the Legal Division has been fore fronting solutions forbusiness continuity with support on documentation and processes.

Few of the areas where the Legal Division played leadership role during the year underreview include:

• Spearheading litigation against infringers and protecting the IP rights andentitlement of your Company.

• Guiding the business across Digital initiatives to enhance reach to physiciansand awareness to patients using technology.

• Constant support for Projects across divisions and enabling functions.

• Mitigation of risks associated with Company's business operations andintellectual property rights.

• Defending the Company against litigation as well as pro-actively initiatinglitigation wherever necessary to ensure that your Company is insulated from operationalrisks.

GLOBAL COMMERCIAL OPERATIONS (GCO)

Converging globally into the Chief Business Office (CBO) GCO is an integralpart of Pfizer's Commercial Operating model enabling strategic and operationalcapabilities and excellence. GCO continues to build on four key pillars: Ease of doingthings; Commercial impact; Capability development; and Compliance. This strategic modelhas empowered GCO to significantly undertake transformational projects which have advancedPfizer's Purpose and Bold Moves. Global Commercial Operations has witnessed enormousgrowth in the scale and size of its operations since the six years of its inception inIndia.

Some of GCOs milestones and achievements built on the overarching theme of‘Automation and Simplification' in 2019 include:

• Launch of global platform Pfizer for Professionals (PfizerPro) in Indiawhich will serve as a single point of contact for HCPs to view scientific content

• Launch of the first patient-centric website globally for pneumococcal diseaseChooseWisely

• Launch of Local Contract Management (LCM) system contributing tosimplification and automating ~4000 Health Care Professional (HCP) speaker contracts

• Launch of new global Sales Force Automation (SFA) platform PforceRxfurthering field force excellence and laying the foundation to truly transform the way weconnect with Health Care Professionals

These achievements have been possible due to the strong collaboration and partnershipwith various functions across the organisation and the unparalleled spirit of theemployees who work every day with the aim of making a significant difference to the livesof customers and patients.

GLOBAL SUPPLY CHAIN

Your Company's Supply Chain and Distribution orchestrates breakthroughs that changepatients' lives through various interventions by enhancing the service capability acrossthe value chain. Conscious efforts are made to develop and upgrade your Company'sfacilities with digital support that delivers value beyond supply through a robustflexible and efficient distribution network comprising of 21 CFAs and 3 Hubs who overseessupply of medicines to ~7500 stockist and 2100 institutions across India.

The Division also focuses on increasing the customer reach by developing an optimizednetwork model while demonstrating the responsibility towards nature by undertaking Go-Greeninitiatives. Amidst the COVID-19 pandemic special arrangements were made with charterflight operators and alternate airport options and collaborations with industry peers tosafeguard unremitting supply of medicines to patients.

DIGITAL

COVID-19 challenged your Company's traditional way of work. It was important to ensurethat as an organization we were able to maintain a high degree of engagement with HCPsand channel partners. Your Company ensured that the usual processes and essential taskssuch as support IT need of the employees onboarding new joinees etc. do not gethampered. Your Company's Digital team responded to this challenge through a number ofmeasures including:

• Partnered with Business for launch of new products portals and facebook page

• Introducing new ways of connecting with HCPs over video call

• Webex OFFICE-365 (Teams One Drive OUTLOOK) and remote desktop for new joinees

Your Company is one of the first Pfizer worldwide locations to adopt Veeva VCC. Theplatform allows front-end Field Force to do remote video call with HCPs and share approvedcontent.

Consequently your Company has embarked on many new initiatives which would help usgrow and be more connected to the HCPs patients and care givers including:

a. Tele medicine and tele health platform b. Fight pneumo FB page for vaccines c. FBLIVE webinar for HCP and Patients

d. Virtual promotions using FB Instagram LinkedIn and Google

While physical visits have become more and more difficult your Company's thoughtfulnovel and innovative means have augured well to connect with HCPs and patients. All theabove initiatives will keep your Company ahead of the pack and your Company will continueto keep adopting new digital technologies and solutions to support the business.

FINANCE

The Finance Division has been a strong and effective business partner to provideguidance and leadership while upholding highest standards for internal controls andgovernance. The Division has been instrumental in driving performance managing risks andopportunities and leading enterprise wide initiatives.

During the year under review your Company's Finance team partnered strongly withbusiness in driving key projects including restructuring of the Internal Medicine BusinessUnit launch of innovative medicines resource allocation/reallocation and played therole of enabler in multiple high impact business critical matters.

The Finance Division also played vital role in ensuring business continuity during thechallenging COVID-19 times by providing thought leadership to the Management workingcapital support to the trade and driving various business decisions to ensureuninterrupted supply of medicines.

In addition to the strong business partnering the Finance division played a pivotalrole in ensuring fiduciary integrity upholding high corporate governance standardsmaintaining good investor relations institutionalizing effective internal controls andconsistently driving strong business performance and financial prudence.

COMPLIANCE AND ETHICS

As your Company continues to grow its business and work towards achieving its goals italso ensures that it is consistent with Pfizer's commitment to integrity and compliance.The Compliance Division of your Company makes sure that all its employees demonstrateintegrity at every level.

Your Company has a proactive approach to address compliance risks driving throughthoughtful risk taking and leadership accountability. In order to achieve complianceculture at all the levels in the organisation the Team has implemented various uniquecompliance initiatives which includes Compliance Roadshows Compliance Champions Leagueand Captain Compliance. The team has also embedded various compliance elements in theentire lifecycle of people process (from hiring to exit). Approach to all complianceprograms has been to keep it interesting technology based innovative and above allmaking it a way of life at Pfizer.

The Team has also increased its focus in recent years on leveraging technology not onlyfor proactive monitoring of trends through various analytical tools but also engaging withour customers healthcare professionals and patients using virtual platforms in acompliant manner.

Internal Control Systems their adequacy and Compliance

The Compliance Controls and Risk (CCR) team is responsible to ensure adequacy andeffectiveness of internal controls through continuous monitoring. The team's objective isto give senior management Risk Management Committee and the Audit Committee anindependent and reasonable assurance on the adequacy and effectiveness of the Company'srisk management control and governance processes. This is achieved through a co-sourcedinternal audit model which includes independent reviews performed by the CCR team togetherwith audit reviews performed through an independent Chartered Accountancy firm.

Your Company has laid down Internal Financial Controls that include a risk-basedframework to ensure orderly and efficient conduct of its business safeguarding of itsassets accuracy and completeness of the accounting records and assurance on reliabilityof financial information. The Audit Committee has evaluated the design framework andoperative assessment and deliberated with members of management and Statutory Auditors toascertain their views or opinion. The Audit Committee has satisfied itself on the adequacyand effectiveness of the internal financial control system laid down by management. TheStatutory Auditors have confirmed the adequacy of the internal financial control systemsover financial reporting.

The CCR team conducts a risk assessment every year during which all risks to theCompany's objectives are assessed and mitigating plans put in place. These risks includeoperational financial regulatory legal business and compliance risks. All the keyrisks along with mitigating plans are presented and discussed annually with the RiskManagement Committee and the Audit Committee.

Annually based on the risk assessment and findings from previous internal audits theCCR Team prepares the annual audit plan approved by the Risk Management Committee and theAudit Committee and followed throughout the year. As part of the quarterly review statusof the annual audit plan design assessment operating effectiveness key audit findingsand remediation status of prior findings are presented and discussed with the RiskManagement Committee and the Audit Committee.

Your Company has a policy covering interaction with Healthcare Professionals andGovernment officials called ‘My Anti- Corruption Policy & Procedures'(MAPP). The policy addresses both local legal requirements while also leveraging bestpractices followed in other markets. As a way of reinforcing its compliance culture yourCompany has identified 70 colleagues as "Compliance Champions" fromvarious teams who act as first point of contact for colleagues in case they have policyrelated questions. These measures have ensured that your Company is well placed to drivethe spirit of compliance across its stakeholders.

CORPORATE AFFAIRS

The Corporate Affairs Division works in the domains of Government RelationsCommunications and Corporate Social Responsibility. During the year under review thedivision undertook a number of policy advocacy initiatives; stakeholder engagementoutreach; campaigns to build corporate and TA reputation and community and colleagueengagement programs.

Government Relations

Your Company's Managing Director Mr. S. Sridhar was re-elected as the Chair of theFederation of Indian Chambers of Commerce

& Industry's (FICCI) National Pharmaceutical Committee for the current year. Healso continues to serve as an Executive Committee Member in the Organisation ofPharmaceuticals Producers of India (OPPI). Pfizer also assumed the Co-Chair of the IndiaPharma Committee of the Pharmaceutical Research and Manufacturers of America (PhRMA) andthe US India Business Council (USIBC).

a) Engagement through industry associations and direct advocacy:

As a member of the OPPI FICCI PhRMA USIBC and US India Strategic Partnership Forum(USISPF) your Company continued to participate and play an active role in leading thedialogue with relevant government stakeholders and contributing recommendations andcomments on key policy matters such as the revision of the National List ofEssential Medicines amendments of the Drug Price Control Order Drug and Magic Remedies(Objectionable Advertisements) Amendment Bill 2020 and strengthening of IntellectualProperty eco-system among others.

b) Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana (AB-PMJAY):

The National Health Authority (NHA) the implementing arm of the government's AB-PMJAYhas shown interest in engaging with the industry and explore possibilities that wouldincrease the availability and access to in hospital treatments and medicines for theAB-PMJAY beneficiaries.

The review of the Health Benefit Packages (HBPs) and implementation of the secondversion of the same by the NHA after only one year of the launch of the scheme hassignaled the government's intention to cover therapeutic areas and packages that were notcovered earlier.

Your Company has been engaging with the NHA to explore the possibility of working outmechanisms through which innovative therapies could be included in specific HBPs and makethem available to the AB-PMJAY beneficiaries.

c) Adult immunisation:

Your Company strongly believes that adult immunisation against vaccine preventablepneumococcal disease should be taken up on a large scale. With the World HealthOrganization also recommending pneumococcal vaccination to prevent deaths due torespiratory problems caused by the COVID-19 pandemic the time is appropriate for theGovernment to initiate an immediate targeted adult immunisation campaign. Your Company hasbeen in discussions with several State Governments to explore the possibility ofpartnerships to roll out the pneumococcal adult vaccination campaign in these States. Italso continues to explore other avenues for inclusion of adult immunisation in specificgovernment programs and by government agencies such as Ayushman Bharat and National AIDSControl Organisation (NACO).

Communications

Your Company's communications team plays the role of a key enabler in communicating theorganization's growth plans important decisions and milestones to stakeholders bothinternally and externally.

Externally your Company continued to engage with media to share important messagespertaining to business developments and key therapies and products. The team alsoshowcased important corporate responsibility initiatives to a wider universe of externalstakeholders including media the HCP community Government and industry stakeholdersthrough communication and participation in industry events.

Internally your Company continued to maintain a high-impact communication programespecially to keep colleagues informed engaged and supported during the COVID-19 crisis.Your Company maintained a high-performance culture by engaging employees and aligning themwith our values purpose and strategy. Through an active calendar of activities thatfocused on the wellness of our colleagues as well as celebrations of achievements andfestivals your Company worked towards bringing its colleagues together regularly.

Highlights of the year under review include:

a) COVID-19 communication:

With a goal to ensure that Pfizer colleagues in the field and in Regional and HeadOffices remain engaged in a positive manner the Communications team created a number ofunique initiatives to disseminate information and involve colleagues in interactiveactivities.

Work from home tips: A series of tips and tricks for colleagues to followto settle into this new way of working carry out their work efficiently and strike abalance between work and leisure.

At home with video series: Multiple videos of the leadership team andRBMs sharing ways in which they have been making work from home work for themselves!These videos received more than 6000 views.

#wfhisfun contests: 10 contests conducted across your organisation wherecolleagues were asked to share their insights images and videos on having fun whileworking from home on India Yammer page. This initiative resulted in more than 35000visits on Yammer over two months.

Return to workplace guidebook: A consolidated avant-garde guidebookhighlighting safety precautions to keep in mind once colleagues returned to work in officeand in the field.

Townhalls with India Leads: Virtual townhalls with India Leads whereeveryone was updated on the recent business achievements and guidelines to keep oneselfsafe at home and in the field. Most of the queries on the ever-evolving COVID-19 situationwere also shared to remove all roadblocks and make work easier for all.

COVID-19 Booklet: A handy easy to read and visually rich booklet wasprepared for colleagues to explain the disease it's causes and ways to be safe from it.

Field safety kit: A comprehensive guide document was shared with allcolleagues which featured the major guidelines for field colleagues to follow to be safewhile working in the field.

Workplace Diaries: A new podcast where colleagues can share theirexperiences of working in the field and their tips and tricks to survive in the fieldgiven the current situation.

b) Celebrating Women's Day:

Your Company celebrated Women's Day by unveiling a video on the work and dedication ofwomen colleagues in the field. Women achievers from across the country were invited to theMumbai headquarters including a mountaineer who had climbed Mount Everest the founder ofa successful new age media company and one of the few female auto rickshaw drivers inMumbai who fought her way in life to choose her profession and independence. Theirstories helped colleagues understand what it means to be a woman and successful in today'sday and age.

c) Supporting a cause:

100 Pfizer colleagues ran in the Tata Mumbai Marathon to support two Cancer CareCenters dedicated to providing support and accommodation to children and their familiesduring the children's treatment in Mumbai. St Jude India Childcare Center being one ofthese establishments interacted with the colleagues in Mumbai headquarters and sharedabout the work that goes into supporting these suffering children and their families. Thiswas an eye-opener for our colleagues most of whom were unaware of the care and commitmentthat these children require to be able to outlive the ailment. Colleagues also understoodthe gravity of their contribution to the cause.

CORPORATE SOCIAL RESPONSIBILITY

Your Company continued to stay true to its purpose of promoting access to qualityhealthcare in the country by nurturing innovation encouraging community involvement ofour colleagues and synergising efforts with government and other stakeholders forcollective impact.

This year the team continued to identify and work on projects that are aligned toPfizer's CSR priorities as listed below:

• Encourage and support Indian innovation and Indian intellectual property with afocus on healthcare;

• Undertake awareness and access programs ourselves or in partnership with NGOsGovernment and healthcare providers in areas such as women and child health among others;

• Support Government national and/or state programs and priorities with linkagesto healthcare;

• Enlist employees as volunteers to support activities around health sanitationand disease awareness; and

• Participate in disaster relief activities.

Your Company's flagship CSR initiatives undertaken during the year gained significantmomentum leading to high-impact outcomes.

Pfizer along with NGO partner Americares India Foundation has rolled out two majorprojects to combat India's AMR challenges.

a. The Parivartan project that aims to reduce the spread of antimicrobialresistance in health facilities and to promote overall infection prevention and control intargeted health facilities. A multi-year project the goal is to demonstrate a tangibleimpact of infection prevention and antimicrobial stewardship activities on key outcomeindicators of hospitals such as a reduction in hospital acquired infections.

b. Online Learning Platform (OLP) is an online platform for Health Care Workers(HCWs) to ensure that the HCWs across India have access to quality training on InfectionPrevention and Control (IPC). The project is currently in the initial phase of buildingthe IPC module as per the WHO guidelines. The platform would be accessible free of costwith certification in three languages (English Hindi Malayalam).

The Pfizer-ACF (Tata Trusts) Cancer Care Project has been set up to work withthe high-risk population that require healthcare attention. Overall this project aims toserve as a one-stop information and support centre for patients and families at TataTrusts' key cancer hospitals. Alamelu Charitable Foundation (ACF) was established by TataTrusts to support the setup of a comprehensive healthcare network across India. Theprogram is in the first Phase of its operation and includes the following:

a. Health and wellness kiosks in Ranchi Diphu Silchar and Tirupati. The kiosksprovide services such as counselling and interactive sessions on preventing cancer andlifestyle-related disorders to reduce the risk of non-communicable diseases counsellingsession for smoking cessation and prevention screening for Oral Cervical and Breastcancer general physician examination and basic laboratory investigation mainlyhaemotological serological and biochemical test etc.

b. Community outreach and early detection for NCD screening of catchment population andreferral to the nearest centre

c. Set-up and operationalisation of a patient referral and tracking platform

d. Manage and operate a virtual patient helpdesk complemented by one on-site patientnavigator in OPD and day care centers in the four locations.

The Pfizer-IIT Delhi Innovation and IP Program supports Indian innovation andIndian intellectual property with a focus on healthcare. The program is now in its fourthphase and has supported around 20 innovations since inception in 2015-16. During the yearunder review an additional four innovators were incubated and ten IP filings supported.

Your Company is working towards developing the village of Kaulale Jawhar under the PfizerSustainable Village Transformation Project with BAIF Institute for SustainableLivelihoods and Development as the implementation partner. The aim of the program is toprovide a holistic intervention around areas of water sanitation health skilldevelopment and sustainable livelihoods. The project addresses the issues access todrinking water improving nutrition improving agricultural practices and irrigationfacilities sustainable livelihood opportunities and creating awareness regarding waterand water conservations.

Your Company had taken up 13 schools in Mumbai and Goa under the Pfizer SchoolSanitation and Development Program in 2018-19. The program has now reached completionimpacting the lives 6000 students in the regions.

Your Company has been actively involved in supporting the Government's COVID-19Relief Efforts in India. As a part of its efforts Your Company is supporting theState and Central Government and other healthcare institutions to bridge the gap andenhance the current healthcare infrastructure for treating the increasing number ofCOVID-19 cases. Support has also been provided for the frontline healthcare workers andCOVID-19 warriors by sponsoring Personal Protective Equipment kits and masks.

a. Donation of 3 lakh protective N95 Masks: Our frontline healthcare workers areperforming a remarkable duty to provide healthcare services to patients across thecountry. More often this is at considerable personal risks of contracting infectionsincluding COVID-19. In order to provide relief to such personnel Pfizer has funded NGOsto donate close to 3 lakh certified N95 protective masks for use by frontline andsupporting healthcare personnel across 15 states in India.

b. Providing 5 state-of-the-art ventilators: As the number of COVID-19 casesrapidly increase in Maharashtra the MCGM Disaster Management Cell along with the HealthDepartment are ramping up the testing and isolation facilities currently available. YourCompany has partnered with the NGO Americares to provide 5 high-quality Macquet Servo-IVentilators to three key Government hospitals with COVID-19 facilities: the 20-bed ward atthe HBT Trauma Care Centre Jogeshwari; the 10-bed ward at Bhabha Hospital Bandra; andthe 20-bed ward at Rajawadi Hospital Ghatkopar all located in densely populated suburbsin Mumbai.

c. Assisting migrant workers with food relief: Goa is home to your Company'smanufacturing plant. Being an industrial state it is also home to a large migrantpopulation that would require basic food relief and support at this time. Through its NGOpartners Pfizer has provided food and grocery packets containing rice dals wheat flourpoha sugar oil and other essentials for those in need in the talukas of Sattari andValpoi in Goa.

d. Donation of 75000 tablets of Azithromycin: Responding to a call from theGovernment of India your Company has partnered with HLL Lifecare Ltd. to donate 75000

Azithromycin 500 Mg tablet for the treatment of COVID-19 patients under the care ofGovernment facilities.

e. COVID-19 Treatment Facility for Police Personnel: In addition to the healthcareworkers our police personnel too are serving as COVID-19 Warriors with courage anddedication. Unfortunately their line of duty also places them at higher risks ofcontracting the illness. In order to support our Police Personnel Pfizer has supported a75-bed isolation ward at the Mumbai Police Kalina Hospital for the Maharashtra Police.Support was provided towards COVID-19 Emergency Response Intervention for setting up ofthe temporary COVID-19 hospital dedicated to police personnel in Kalina. The supportincluded critical lifesaving supplies such as Oxygen concentrators Pulse OximetersMultipara Monitors ECG Machines etc.

Shortfall in CSR spend

The Company had earmarked a significant proportion of the CSR outlay towards two keyinitiatives – namely the AMR Hospital Transformation Project in partnership withAmericares and the Cancer patients support program in partnership with Tata Trusts.

Given the extensive planning required for these projects the scale ofinterventions and time taken to conclude initial work the projects were not in a positionto consume the entire outlay within the financial year.

Consequently in line with the provisions of sub-section (6) in Section 135 of TheCompanies Act 2013 (to be gazetted) the Company has placed an amount of Rs.4.63 croresearmarked for aforementioned identified projects in a dedicated bank account with a planto utilize the same within 3 years for the said projects which are long term andcontinuing in nature and are expected to remain in your Company's CSR portfolio in thesubsequent years.

Further the Company will look towards meeting its CSR spend obligations in the year2020-21.

A brief outline of the initiatives undertaken during the year and details of CSRprojects undertaken by your Company during the financial year under review are provided inthe Corporate Social Responsibility Report which forms part of this Report and annexedherewith as "Annexure - A".

WHISTLE BLOWER / VIGIL MECHANISM

Your Company has established a Whistle Blower / Vigil Mechanism through which itsDirectors Employees and Stakeholders can report their genuine concerns about unethicalbehaviour actual or suspected fraud or violation of the Company's code of conduct orethics policy. The said Policy provides for adequate safeguards against victimization andalso direct access to the higher levels of supervisors. The e-mail ID for reportinggenuine concerns is: ‘corporate.compliance@pfizer.com'. In appropriate andexceptional cases concerns may be raised directly to the Chairman of the Audit Committeeat ‘Chairman. IndiaAuditcom@pfizer.com'. No person has been denied access to theAudit Committee Chairman. A quarterly report on the whistle blower complaints received andaction taken thereon is placed before the Audit Committee for its review.

DIRECTORS:

In accordance with the provisions of the Companies Act 2013 Mr. Milind Patil (DIN:02546815) retires by rotation at the ensuing Annual General Meeting and being eligibleoffers himself for re-appointment.

Mr. Vivek Dhariwal (DIN: 02826679) ceased to be Executive Director - TechnicalOperations of the Company with effect from close of business on February 14 2020. YourDirectors wish to place on record their appreciation for valuable contributions made byMr. Vivek Dhariwal.

The Board of Directors of the Company at their Meeting held on February 14 2020pursuant to the recommendation of Nomination and Remuneration Committee appointed Mr.Samir Kazi (DIN: 07184083) as Executive Director – Legal with effect from February14 2020 for a period of 5 (five) years subject to the approval of members at the ensuingAnnual General Meeting. The Company has received a Notice for candidature as a Directorfrom a Member pursuant to Section 160 of the Act.

All Independent Directors have given the declarations that they meet the criteria ofindependence as laid down under Section 149(6) of the Companies Act 2013 and SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015.

Board Performance Evaluation

The Company has devised a Performance Evaluation Framework and Policy which sets amechanism for the evaluation of the Board Board Committees and Directors.

Performance Evaluation of the Board Committees and Directors was carried out throughan evaluation mechanism in terms of the aforesaid Performance Evaluation Framework andPolicy.

The performance evaluation of each individual Director the Board and Committees wascarried out through deliberations. The said performance evaluation was done based on theparameters stated in the templates designed under the aforesaid Framework and after takinginto consideration the guidance note issued by the Securities and Exchange Board of India.

Independent Directors' Meeting

During the year under review one Meeting of the Independent Directors was held on May28 2019 without the presence of the Executive Directors and Management Personnel. At thesaid Meeting the Independent Directors carried out performance evaluation ofNon-Independent Directors and the Board of Directors as a whole performance of Chairmanof the Company the quality content and timeliness of flow of information between theManagement and the Board based on the Performance Evaluation framework of the Company.All the Independent Directors were present at the aforesaid Meeting.

FAMILIARIZATION PROGRAM FOR INDEPENDENT DIRECTORS:

Your Company has in place a Familiarization Program for Independent Directors toprovide insights into the Company's business to enable them to contribute significantly toits success. The Executive Directors and Senior Management make presentations periodicallyto familiarize the Independent Directors with the strategy operations and functions of theCompany. Your Company also circulates news and articles related to the Industry andprovide specific regulatory updates to the Independent Directors on a regular basis.

A brief summary of the major Familiarization Programs carried out during the year forthe Independent Directors is given below:

Sr. No. Particulars of the Programmes / Presentations Date No of Hours Duration (Hrs.)
1. Pharma Market Industry Performance and Regulatory changes update (Duration 1.00 hr each) 28.05.2019 4.00
09.08.2019
26.10.2019
14.02.2020
2. Meeting with Ms. Susan Silbermann - President Emerging Markets for discussion on Pfizer's outlook in India 23.04.2019 1.00
3. Business presentation on Vaccines 28.05.2019 0.75
4. Risk Management Framework and Key Business Risks 26.10.2019 0.75
5. Business Strategy presentation 14.02.2020 0.75
6. Status of Active 14.02.2020 1.00
Pharmaceutical Ingredients import and impact of Novel Corona Virus (COVID-19)
Total 8.25

NOMINATION AND REMUNERATION POLICY:

The Board has on the recommendation of the Nomination and Remuneration Committee frameda policy for selection and appointment of Directors Senior Management Key ManagerialPersonnel and their remuneration. The Nomination and Remuneration Policy forms part ofthis Report annexed herewith as "Annexure - B".

MEETINGS OF THE BOARD:

The details of the meetings of the Board and Committees are provided in the CorporateGovernance Report which forms part of this Report and annexed herewith as "Annexure -H".

DIRECTORS' RESPONSIBILITY STATEMENT:

Your Directors make the following statements in terms of Section 134(3)(c) of theCompanies Act 2013:

a. that in the preparation of the annual financial statements for the year ended March31 2020 the applicable accounting standards have been followed along with properexplanation relating to material departures if any;

b. that such accounting policies as mentioned in Notes 2 and 3 of the Notes to theFinancial Statements have been selected and applied consistently and judgments andestimates have been made that are reasonable and prudent so as to give a true and fairview of the state of affairs of the Company as at March 31 2020 and of the profit of theCompany for the year ended on that date;

c. that proper and sufficient care has been taken for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act 2013 forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities;

d. that the annual financial statements have been prepared on a going concern basis;

e. that proper internal financial controls were in place and that the financialcontrols were adequate and were operating effectively; and

f. that systems to ensure compliance with the provisions of all applicable laws were inplace and were adequate and operating effectively.

KEY FINANCIAL RATIOS:

Pursuant to the SEBI (Listing Obligations and Disclosure Requirements) Regulations2015 we give below the key financial ratios:

Sr. No. Particulars FY 2020 FY 2019
1 Debtors Turnover Ratio 12.52 12.75
2 Inventory Turnover Ratio 1.94 2.19
3 Interest Coverage Ratio N.A. N.A.
4 Current Ratio 3.49 3.05
5 Debt Equity Ratio N.A. N.A.
6 Operating Profit Margin (%) 22% 24%
7 Net Profit Margin (%) 24% 21%
8 Return on Net Worth 15% 14%

None of the aforementioned ratios have undergone a change of more than 25% as comparedto the previous financial year.

The return on net worth is computed as net income by shareholders equity. The change inreturn on net worth is primarily on account of increase in net profit to Rs.509.13 crorefrom Rs.429.05 crore.

AUDIT COMMITTEE:

The details pertaining to composition of Audit Committee are included in the CorporateGovernance Report which forms part of this report.

RISK MANAGEMENT POLICY:

The details pertaining to the Risk Management Policy are included in the CorporateGovernance Report which forms part of this Report.

RELATED PARTY TRANSACTIONS:

All Related Party Transactions that were entered into during the financial year were onan arm's length basis and were in the ordinary course of business. There are no materiallysignificant related party transactions made by the Company with Promoters Directors KeyManagerial Personnel or other designated persons which may have a potential conflict withthe interest of the Company at large. The Company had entered into materially significantrelated party transactions with Pfizer Innovative Supply Point Intl BVBA Belgium andPfizer Service Company BVBA Belgium for purchase of raw materials bulk drugs andfinished goods. The same are within the limits duly approved by the members at the 65thAnnual General Meeting.

All Related Party Transactions are placed on a quarterly basis before the AuditCommittee for approval and before the Board for consideration and noting.

The Policy on Related Party Transactions as approved by the Board is uploaded on theCompany's website ‘www.pfizerindia. com'. The weblink for the Policy ishttp://www.pfizerindia.com/ eNewsWebsite/investor/pdf/Revised%20Related%20Party%20Transaction%20Policy%20-%20Pfizer%20website.pdf

None of the Directors have any material pecuniary relationships or transactionsvis--vis the Company.

Pursuant to Section 134 of the Companies Act 2013 and Rules made thereunderparticulars of transactions with related parties as required under Section 188 (1) of theCompanies Act 2013 in the prescribed Form AOC-2 forms part of this Report and annexedherewith as "Annexure - C".

PARTICULARS OF LOANS GUARANTEES AND INVESTMENTS:

The Company has not granted any loans guarantees and investments under Section 186 ofthe Companies Act 2013 for the financial year ended March 31 2020.

DEPOSITS FROM PUBLIC:

During the financial year under review the Company has not accepted any deposits frompublic and as such no amount on account of principal or interest on deposits from publicwas outstanding as on the date of the Balance Sheet.

DISCLOSURES OF ORDERS PASSED BY REGULATORS OR COURTS OR TRIBUNAL:

No orders have been passed by any Regulator or Court or Tribunal which can have impacton the going concern status and the Company's operations in future.

OTHER INFORMATION:

The information on conservation of energy technology absorption and foreign exchangeearnings and outgo stipulated under Section 134(3)(m) of the Companies Act 2013 read withRule 8 of The Companies (Accounts) Rules 2014 forms part of this Report and annexedherewith as "Annexure - D".

A table containing particulars of employees in accordance with the provisions ofSection 197(12) of the Companies Act 2013 ("the Act") read with Rule 5(1) ofthe Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 formspart of this Report and annexed herewith as "Annexure - E".

The information required pursuant to Section 197(12) of the Act read with Rule 5(2) ofThe Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 inrespect of employees of the Company forms part of this Report. However as per theprovision of Sections 134 and 136 of the Act the Report and Accounts are being sent tothe Members and others entitled thereto excluding the information on employees'particulars which is available for inspection by the Members through electronic mode up tothe date of the ensuing Annual General Meeting. Any member interested in obtaining a copyof such statement may write to the Company Secretary at the Company's Registered Office.

The Company does not have any subsidiary company or associate company or joint venturecompany.

AUDITORS:

The Auditors Messrs. Walker Chandiok & Co LLP Chartered Accountants (FirmRegistration No. 001076N/N500013) were appointed as Statutory Auditors to holdoffice for a term of 5 (five) years from conclusion of 66th Annual GeneralMeeting till the conclusion of the 71st Annual General Meeting subject toratification by members at every subsequent Annual General Meeting.

The Companies (Amendment) Act 2017 has waived the requirement for ratification of theappointment of statutory auditor by the shareholders at every Annual General Meeting.Hence the approval of the members is not being sought for the re-appointment of thestatutory auditor and in line with their resolution of appointment passed at the previousAnnual General Meeting held on September 6 2018 Accordingly Messrs. Walker Chandiok& Co. LLP will continue to hold office till the conclusion of the 71stAnnual General Meeting of the Company. Messrs. Walker Chandiok & Co. LLP haveconfirmed their eligibility and submitted the certificate in writing that they are notdisqualified to hold the office of the Statutory Auditor.

The Auditor's Report for the financial year ended March 31 2020 do not containany qualification reservation or adverse remark.

COST AUDITORS:

Pursuant to Section 148 of the Companies Act 2013 read with the Companies (CostRecords and Audit) Rules 2014 as amended from time to time the cost audit recordsmaintained by the Company is required to be audited. Your Directors had on therecommendation of the Audit Committee appointed Messrs. RA & Co. to audit the costaccounts of the Company for the financial year 2020-21 on a remuneration of Rs.1325000/-(Rupees Thirteen Lakhs and Twenty Five Thousand only). As required under the CompaniesAct 2013 the remuneration payable to the Cost Auditor is required to be placed beforethe Members in a general meeting for their ratification. Accordingly a Resolution seekingMember's ratification for the remuneration payable to Messrs. RA & Co. Cost Auditorsis included at Item No.6 of the Notice convening the Annual General Meeting.

Your Company is required to maintain the cost records as specified by the CentralGovernment under sub-section (1) of Section 148 of the Companies Act 2013. Your Companyhas accordingly maintained the same and has filed the Cost Audit Report for Formulationsand Compliance Report for the financial year ended March 31 2019 on October 14 2019which is within the stipulated timeline prescribed under the applicable regulations. TheCost Audit Report for Formulations for the financial year ended March 31 2020 is due tobe filed by October 26 2020.

Messrs. R. A. & Co. have confirmed their eligibility to be the Cost Auditors andhave been appointed to conduct Cost Audit of the Company's records for the financial yearending March 31 2021. The remuneration is subject to ratification by theshareholders.

SECRETARIAL AUDIT:

Pursuant to the provisions of Section 204 of the Companies Act 2013 and The Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 the Company hasappointed Messrs. Saraf & Associates a firm of Company Secretaries in Practice toundertake the Secretarial Audit of the Company. The Secretarial Audit Report forms part ofthis Report and annexed herewith as "Annexure - F". The Secretarial AuditReport for the financial year ended March 31 2020 does not contain any qualificationreservation or adverse remark.

COMPLIANCE WITH SECRETARIAL STANDARDS:

Your Directors confirm that the Secretarial Standards issued by the Institute ofCompanies Secretaries of India as applicable to the Company and which are mandatory innature have been duly complied with.

ANNUAL RETURN:

The details forming part of the extract of the Annual Return in Form MGT 9 forms partof this Report and annexed herewith as "Annexure - G". The Annual Return of theCompany as required under the Companies Act 2013 will be available on the website of theCompany at www.pfizerindia.com.

RESPONSIBILITY REPORTING:

A Report on Corporate Governance along with a Certificate from Messrs. Walker Chandiok& Co LLP regarding compliance with the conditions of Corporate Governance asstipulated under Regulation 34(3) of SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 forms part of this Report and annexed herewith as"Annexure - H".

A Business Responsibility Report as stipulated under Regulation 34(2) of SEBI (ListingObligations and Disclosure Requirements) Regulations 2015 describing the initiativestaken by your Company from an environmental social and governance perspective forms partof this Report and annexed herewith as "Annexure-I".

CAUTIONARY NOTE

Certain statements in respect to Management Discussion and Analysis may be forwardlooking and are stated as required by the applicable laws and regulations. The futureresults of the Company may be affected by many factors which could be different from whatthe Directors envisage in terms of future performance and outlook.

ACKNOWLEDGMENTS

Your Directors would like to place on record their sincere appreciation for the supportand assistance extended by the Company's suppliers and business associates. Your Directorsare thankful to the esteemed shareholders for their continued support and the confidencereposed in the Company and its Management.

Your Directors wish to place on record their appreciation for the support and guidanceprovided by its Parent Company Pfizer Inc. USA.

For and on behalf of the Board of Directors
R.A. Shah
Chairman
Mumbai July 27 2020 DIN: 00009851

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