2020 A N N U A L R E P O R T

At Abbott, we’ve been improving people’s TABLE OF CONTENTS

health at all ages and stages of life since 1 Vision and Mission
1948. Today, we’re addressing some 2 Key Performance Indicators
of Pakistan’s most pressing healthcare 2 Our Values
5 Abbott Today
challenges to help people live fuller,
6 Corporate Information
healthier, more dignified lives. Because
8 Our Citizenship and Sustainability Priorities
we believe that the best medical product 15 Abbott Proud
is the one that helps the most people, 18 We Were Built for This
we design breakthrough products in each 20 Value Chain
of our businesses — branded-generic 22 Abbott Pakistan at a Glance
pharmaceuticals, nutrition, diagnostics and 24 Ownership and Operating Structure
24 Composition of Local versus Imported Materials
diabetes care — to help ensure maximum
25 Corporate Structure
access and affordability. Our balanced
26 History Timeline
leadership across diverse markets enables 28 Geographical Presence
us to deliver consistent growth and strong 30 Established Pharmaceuticals
shareholder returns. 32 Nutrition
34 Diagnostics
36 Diabetes Care
38 Product Launches
40 Objectives and Strategies
45 Risk Management at Abbott
46 Key Risks and Opportunities Report
48 Analysis of Financial and Non-Financial
Performance against Indicators
50 Significant Factors affecting the External
Environment and the Organisation’s Response
52 Corporate Social Responsibility
54 Environment, Health and Safety
56 Supporting our Communities
58 Social and Environmental Responsibility Policy
60 Human Resources
64 Quality Assurance
66 Awards and Recognitions
68 Ethics and Compliance
70 Corporate Governance
LIFE. TO THE FULLEST.
78 Business Model - Integrated Reporting Framework
We at Abbott believe we’re in the best 80 Integrated Reporting Framework
business there is: we get to help people 80 Unreserved Statement of Compliance to
International Financial Reporting Standards
live fuller lives through better health. We
82 Audit Committee Report
recognise that as a privilege – one that
84 Directors’ Profile
comes with responsibilities. As healthcare
86 Brief Terms of Reference of Board Committees
needs grow and change, Abbott Pakistan
87 Board Committees Attendance
works to stay ahead of those trends and
88 Review Report by the Chairman
respond with relevant, patient-centric 89 Review Report by the Chairman (Urdu)
solutions. We have built a sustainable growth 90 Directors’ Report
platform that will continue to drive success 101 Directors’ Report (Urdu)
for many years to come. 102 Forward Looking Statement
105 2020 Financial Report
 ABBOTT PAKISTAN 2020 ANNUAL REPORT

VISION
To be the most admired healthcare
company in Pakistan.

MISSION
To deliver consistently superior
products and services which contribute
significantly to improve the quality of life
of consumers.

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

KEY PERFORMANCE
INDICATORS
2020 SALES SALES GROWTH

Rs. 35.28BN 17.0%

FINANCIAL
HIGHLIGHTS

METHODS AND ASSUMPTIONS USED IN COMPILING THE INDICATORS

A Key Performance Indicator (KPI) is a measurable value that demonstrates how effectively a company is achieving its
business objectives. Both financial and non-financial KPIs are computed using formulae which are widely used in the industry
and are relevant to different stakeholders such as shareholders, bankers and regulators etc.

OUR VALUES PIONEERING

Values are the foundation for building a meaningful
corporate identity. Abbott is a company rooted in values
and our core values of honesty, integrity and fairness Leading-edge science
describe a standard of behaviour expected of every and innovative
employee. commercialisation

Abbott has four differentiating values that speak of the We lead with
unique strengths that have made our Company what it is solutions that address
today. The Company continues to build on these strengths human needs by
to deliver our goals. pioneering innovative
treatments and
These values are a blueprint for our employee behaviour. solutions, and new
They are the underpinnings of our brand promise, approaches to
defining how we serve our constituents. These values are managing health.
woven into all business processes company-wide over
time, determining how we plan and run our businesses,
how we serve our customers, how we measure and
motivate performance, and how we communicate
internally and externally. Aligning our organisation
around this cohesive set of values has been critical to the
achievement of Abbott’s brand and business goals.

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

GROSS PROFIT NET PROFIT EARNINGS PER

MARGIN MARGIN SHARE

34.6% 12.9% Rs. 46.33

For financial KPIs, the data used is generated through our internal management information systems, together with audited
financial statements. Similarly, for non-financial KPIs, in addition to our internal management information systems, other
tools are also used which include surveys and customer feedbacks.

CARING ACHIEVING ENDURING

Making a difference Customer-focused Commitment and

in people’s lives outcomes and world-class purpose
execution
Enduring means both
Caring is central to
honouring our history
the work that we do We drive for meaningful
and maintaining our
to help people live results, demanding of
commitment to the
healthier lives. We ourselves and each other,
future. We will always
have tremendous because our work impacts
be here to help keep
respect for the people’s lives. We are
people healthy. We
lives of everyone committed to working
keep our promises,
touched by our together to deliver solutions
acting in accordance
Company. Our that are effective and
with all of our values.
respect for people profitable. Our focus on
is demonstrated in execution and collaboration
what we do and how ensures that we keep our
we act. promises to each other and
to those we serve.

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

At Abbott, we provide real answers to

real problems, delivering breakthrough
solutions to prevent, diagnose and
treat health needs. We adapt quickly
to changes, harnessing leading-edge
science and technology to deliver the
best possible solutions for some of the
most important health challenges.

LEADING MARKET POSITIONS IN PAKISTAN

BRUFEN - #1 Brand in volume

ARINAC - #1 Cold preparations without Anti-Infectives

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KLARICID - #2 Macrolide Antibiotic

SURBEX Z - #1 Vitamin B Complex Brand

DUPHASTON - #1 Brand for Progesterone Deficiency

EPIVAL - #1 Anti-Epileptic Brand Brands

> Rs. 1
DUPHALAC - #2 Laxative Brand
billion sales
SERC - #1 Vertigo Brand

PEDIASURE - #1 Child Nutrition Supplement

ENSURE - #1 Adult Nutrition Supplement

GLUCERNA - #1 Diabetic Nutritional Supplement

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

ABBOTT TODAY

RELEVANT
A portfolio of diversified
products, aligned with key
health trends

TRUSTED DRIVEN
A brand that’s trusted by A high-performance
healthcare professionals culture, driven to
and patients alike succeed

BALANCED
A broad mix of business
segments and customers
that helps to insulate from
volatility in any one market

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

CORPORATE
INFORMATION
BOARD OF DIRECTORS AUDIT COMMITTEE
Munir A. Shaikh (Chairman) (Non-Executive Director) Ehsan Ali Malik (Chairman)
Syed Anis Ahmed (Chief Executive Officer) Ayla Majid
Ehsan Ali Malik (Independent Director) Muhammad Anjum Latif Rana
Ayla Majid (Independent Director)
Mohsin Ali Nathani (Independent Director)
Muhammad Anjum Latif Rana (Non-Executive Director)
Seema Khan (Executive Director)

SHARE TRANSFER COMMITTEE BANKERS

Syed Anis Ahmed (Chairman) Standard Chartered Bank (Pakistan) Limited
Muhammad Anjum Latif Rana Deutsche Bank AG
Seema Khan Habib Bank Limited
National Bank of Pakistan
BANKING COMMITTEE MCB Bank Limited
Mohsin Ali Nathani (Chairman) Faysal Bank Limited
Syed Anis Ahmed
Seema Khan SENIOR MANAGEMENT TEAM
Syed Anis Ahmed
NOMINATION COMMITTEE (Chief Executive Officer)
Munir A. Shaikh (Chairman) Syed Tabish Aseem*
Syed Anis Ahmed (Chief Financial Officer)
Mohsin Ali Nathani Ihsan Ullah Khan Khattak
Ehsan Ali Malik (Director Operations)
Asim Shafiq
CHIEF FINANCIAL OFFICER (General Manager, Abbott Nutrition
Syed Tabish Aseem* International Pakistan)
Habib Ahmed
COMPANY SECRETARY (Country Manager, Abbott Diagnostics
Humayun Altaf** Division Pakistan)
Dr. Shaikh Adnan Lateef
CHIEF INTERNAL AUDITOR (Head of Abbott Diabetes Care Pakistan)
Fahad Rehman Asghar Huda
(Director Human Resource)
AUDITORS
EY Ford Rhodes, Chartered Accountants
(a member firm of Ernst & Young Global Limited)

LEGAL ADVISORS
Orr, Dignam & Co.
Surridge & Beecheno

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

HUMAN RESOURCE AND RISK MANAGEMENT COMMITTEE

REMUNERATION COMMITTEE
Ayla Majid (Chairperson)
Mohsin Ali Nathani (Chairman)
Syed Anis Ahmed
Munir A. Shaikh
Muhammad Anjum Latif Rana
Syed Anis Ahmed
Seema Khan

SHARE REGISTRAR WAREHOUSES

FAMCO Associates (Pvt) Limited, Plot No. 136, Street # 9, Sector 1-10/3,
8-F, Next to Hotel Faran, Nursery Block 6, Industrial Area, Islamabad, Pakistan-44800.
P.E.C.H.S, Shahrah-e-Faisal, Karachi.
16 KM Shahpur Kanjran,
FACTORY LOCATIONS Multan Road, Lahore, Pakistan.
Plot No. 258 & 324, Opposite Radio
Pakistan Transmission Centre, Hasanabad Gate # 2,
Hyderabad Road, Landhi, Karachi, Pakistan. Near Pak Arab Fertilizers,
Khanewal Road, Multan, Pakistan-60650.
Plot No. 13, Sector 20,
Korangi Industrial Area, Karachi. WEBSITE
www.pk.abbott
SALES OFFICES
House No. 25/III/B, Jamrud Lane,
University Town, Peshawar, Pakistan.

House No. 187, Aurangzeb Block,

Near Garden Town, Lahore, Pakistan.

House No. 168-F, Adamjee Road,

Near Panj Sarki Chowk,
Rawalpindi Cantt, Pakistan.

*Syed Tabish Aseem was appointed as interim Chief Financial Officer on 1st November, 2019 and as Chief Financial Officer on 16th January, 2020.
**Humayun Altaf was appointed as Company Secretary on 16th January, 2020.

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

OUR CITIZENSHIP AND

SUSTAINABILITY PRIORITIES
If there’s one thing that this extraordinary year has For Abbott, sustainability includes ensuring quality
made very clear, it’s how closely interconnected we and safety, valuing our people, building a resilient
all are with the society and the environment in which supply chain, delivering results for our shareholders,
we operate. The idea of sustainability — of how we and being there for the people we serve.
build better systems to support the long-term welfare
of our society and our planet — has rarely been These priorities provide a clear roadmap for pursuing
brought to public life and discourse with such power our responsibilities as a socially responsible citizen,
and urgency. At the foundation of our work and our yet are flexible enough to enable creativity and
culture at Abbott is the recognition that all our lives innovation across our diverse mix of businesses.
are intertwined and that we have commitments to one ENSURING QUALITY AND SAFETY
another.
Our purpose of enabling fuller lives through the
We focus on operating responsibly, preserving healthy power of health depends on trust, and trust in Abbott
living environments and earning trust by doing the depends on our ability to consistently deliver safe,
right things, for the long term, for the benefit of effective and high-quality products. Everyone at
everyone who relies on our products. At the same Abbott is responsible for maintaining trust. We are
time, we work hard to maximise the impact of our subject to laws of varying nature and complexity.
business in creating stronger communities around the Operating in this environment requires continuous
world. Our sustainability work focuses on the areas monitoring, as well as an ability to adapt quickly to
where opportunities for our business intersect with changing laws and regulations.
positive social impact.

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

We take a holistic view of quality across our • Organisation and professional development;
organisation and beyond, with systems and policies
to drive consistency, compliance and continuous • Operational excellence;
improvement. These include programs to embed • Customer satisfaction; and
quality, safety and sound product stewardship
throughout our value chain. This engagement helps • Supply chain assurance.
maintain a leading quality management system in
line with global industry standards and the changing We require all Abbott employees with responsibility
regulatory landscape. for product quality to be trained to the latest industry
standards on good manufacturing, laboratory,
Our quality management systems have been developed clinical and distribution practices. A critical part of
using a multicomponent model and proprietary our process is ensuring that new employees receive
metrics which track the quality system performance quality training, expand their knowledge and receive
of our businesses and manufacturing sites. As part of development opportunities. This helps maintain a
this system, we maintain a set of quality policies that quality foundation throughout the organisation.
incorporates regulatory requirements and ensures that
we implement robust and compliant processes across SUPPORTING COMMUNITIES
our businesses. At Abbott, we know that innovative health solutions
are only life changing when it reaches those people
Our One Abbott Global Commercial Quality Assurance who need it most. Our approach to global citizenship
initiative focuses on establishing common procedures and shared impact is based on this belief and shapes
and processes for quality management across our how we work with communities around the world.
businesses, with a focus on four key areas:

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

OUR CITIZENSHIP AND

SUSTAINABILITY PRIORITIES
As a healthcare leader, we strive to make a positive those needs. One of our key priorities is to enable
social impact by helping people live longer and better. our employees in such a way that working at Abbott
We apply our unique strengths to identify and invest gives them the opportunity to become the best people
in products and business models to meet emerging they can be, to receive competitive compensation
healthcare needs, and find measurable ways to address and benefits for their work, and to feel part of a
social challenges through our scientific and technical community, doing meaningful work side by side with
expertise. committed colleagues.

Shared value is an integral part of Abbott’s strategy Abbott’s promise to its employees is to provide a
for delivering health solutions. Our approach is workplace environment that:
based on access and innovation: new products to
meet healthcare needs, new business models that a) Promotes diversity and inclusion
create value for communities and new systems that b) Offers extensive professional development,
can deliver healthcare to those who need it most. mentoring and training programs
Through this work, we tie the growth of our business c) Encourages and supports work-life harmony
to meeting social needs.
d) Offers competitive compensation and benefits
VALUING OUR PEOPLE tailored to each market
The sustainability of Abbott’s business depends on e) Protects human rights
attracting, engaging and developing talented people f ) Offers wellness programs
who share our vision and values. That’s why we offer
g) Commits to employee health and safety
innovative programs, benefits and resources that
address the diverse needs of our employees, reward Succession Planning
their efforts, help them build their best careers at Abbott ensures diversity and inclusion through
Abbott and provide solid financial security. placing a strong emphasis on succession planning and
We take a collaborative approach, listening to our talent development. Talent Management Reviews
employees to understand their needs and connect (TMRs) are conducted annually to assess critical
with them to build a working environment that meets positions, identify successors and create development

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

plans. This helps us make sure that our current and All employees participate in our annual performance
future leaders are building the skills they will need for management process and work with their managers
success. to create talent profiles and development plans that
support their particular career objectives.
Career Development
We have an integrated talent management process Recruitment
that is designed to identify talented people at any Abbott takes an integrated approach to building a
level of our organisation, assess them accurately, and diverse talent pipeline that can meet the needs of
provide equal and consistent opportunities for them our businesses. This involves building a compelling
to develop their skills. It incorporates mentoring, employer brand, both through our own digital
skills assessments, performance appraisals and career properties and through other channels.
pathing.
SAFEGUARDING OUR ENVIRONMENT
Abbott is committed to safeguarding a healthy
environment for everyone by reducing the
environmental impacts of our business across our
value chain. This commitment shapes the way we
source, manufacture, design and distribute our
products and forms the basis of our environmental
management systems and governance.

Abbott’s environmental governance and management

systems are part of an integrated Environmental,
Health and Safety (EHS) approach. Our EHS strategy
focuses on identifying and mitigating EHS-related
risks, ensuring business continuity and addressing
our stakeholders’ expectations that Abbott is a
responsible corporate citizen. This includes reducing
our greenhouse gas emissions, water use and waste
impacts.

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

OUR CITIZENSHIP AND

SUSTAINABILITY PRIORITIES

Managing Climate Related Risks critical role in the use of many of our products. We are
Abbott is committed to identifying and mitigating committed to managing our water use in an efficient,
climate-related risks that have the potential to impact responsible manner, as well as to improving access to
our operations, supply chain and distribution network. clean water for our customers and the communities
The risks that we analyse include physical and where we operate.
transitional risks that result from emerging regulations
Our approach is based on three core principles:
and new expectations of our businesses and risk
exposure through our suppliers and customers. Our a) Reducing the amount of water our business
integrated multi-disciplinary company-wide risk consumes by working to improve water efficiency
management process assesses and manages climate- across our operations.
related risks at various levels of our Company to
ensure that our businesses and operations are resilient. b) Preventing adverse impacts to human health and
Our policies, standards and programs drive business the environment resulting from our water use and
resilience and are regularly updated to align with discharge.
current and future global requirements. c) Educating employees, suppliers and customers
Reducing Energy and Emissions about the importance of protecting water
resources.
Our contribution to a healthy world includes reducing
energy consumption and carbon emissions, both in Reducing Waste
our direct operations and throughout our value chain. Our waste management strategy commits us to finding
This is demonstrated through efforts taken to increase ethical, economical and efficient ways to reduce
energy efficiency in our manufacturing operations; the volume of our waste and ensures proper waste
investing in low-carbon energy; and encouraging a disposal practices. However, it also goes further, with a
lower carbon footprint in our supply chain. commitment to maximising the recovery of resources
Protecting Water Resources and improving operating efficiency while reducing our
environmental risks and impacts.
Access to water is essential to Abbott’s manufacturing
operations and business continuity and also plays a
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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

Abbott is committed to minimising our waste impacts STRENGTHENING OUR SUPPLY CHAIN
throughout the entire life cycle of our products and The quality, resilience and sustainability of our supply
packaging. We recognise two key areas of responsibility chain are essential to Abbott’s continued success and
in reducing waste: to delivering the products that millions of people
depend upon. We have developed a global supply
a) Our operational waste, which includes the waste
chain strategy focused on reinforcing continuity and
that we directly generate; and
flexibility while minimising sustainability risk and our
b) Our extended-producer responsibility, which shared environmental footprint.
considers the environmental impacts associated
We work closely with our suppliers on new solutions
with our products throughout their complete life
that support delivery of our life-changing technology,
cycle, including design, production, consumption
reduce our environmental impact, and multiply
and disposal.
the social and economic value that we create. For
Producer Responsibility Abbott, a sustainable supply chain means ensuring
Abbott recognises our extended responsibility for that everything we make and that others make for
the impact of our products on human health and us is sourced and produced in an ethical manner
the environment, which includes how we procure while minimising our shared sustainability impact.
materials and services to produce them and their We develop supplier contracts that embed standards
impact after we distribute them. aligned with our sustainability objectives and require
suppliers to uphold the principles outlined in our
Abbott is committed to minimising the environmental supplier guidelines.
impact of our products on the environment and human
health throughout a product’s entire life cycle. This When selecting suppliers, we consider environmental,
enables us to improve operating efficiency, and to social and governance factors, in addition to
reduce product and operational costs. This approach business capabilities and capacities, financial health
considers all components of our business value chain, and strategic alignment with Abbott’s vision. Our
including: critical suppliers include those supplying materials,
components and services that can influence the safety
a) Procurement of operational inputs, such as raw and performance of our products, as well as those that
materials, processed goods and services, ethically are the only approved source of materials, components
and sustainably. and services. Our assessment of risk and criticality also
b) Designing, production and distribution of our considers supply chain transparency and complexity
products with consideration for their impact on the and supplier certification.
environment and human health throughout their
life cycle.

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

From recent Strength in

infection to our diversified
post-recovery, businesses
Abbott’s diagnostic Leadership across
tests span the life diverse markets gives
cycle of COVID-19 Abbott more ways
infection. to win.

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

ABBOTT
PROUD.
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ABBOTT PAKISTAN 2020 ANNUAL REPORT

OUR
PEOPLE
MADE A
DIFFERENCE
IN 2020.

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

Our work
has never
been more
important
and our
dedication
to making a
difference
showed in
our results.

Despite a challenging
environment, Abbott’s
people stepped up
to do what we’ve
always done; deliver
game-changing
solutions that help
people live healthier,
more dignified lives.

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

WE WERE
BUILT FOR
THIS.
WE’VE SPENT 2020 was a more difficult year
YEARS than any in recent memory,
ADDRESSING but despite the obstacles we
THE COUNTRY’S faced, Abbott’s people stepped
MOST PRESSING up to deliver our life-changing
HEALTHCARE solutions to the people who need
NEEDS. WE them, working with the sense
of urgency our customers have
WERE MORE
come to expect from us.
THAN READY
FOR THE With more than 73 years of
UNPRECEDENTED dedication to human health, our
CHALLENGES balanced business portfolio, and
OF 2020. more than 1,400 colleagues
committed to making a difference
in people’s lives, Abbott was built
for times like these.

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

VALUE CHAIN

We are involved in all stages of the value chain apart from wholesale and retail. Value chain of our
pharmaceutical business* is depicted below:

01 02 03
NEEDS ACTIVE DEVELOPMENT
ANALYSIS / PHARMACEUTICAL
IDEATION INGREDIENTS • Stability batches
(APIs) SOURCING /

> > >

SCOUTING • Formulations
• Idea validation
• Quality checks
• Forecasting
• Availability
• Source identification

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

04 05 06
MANUFACTURING DISTRIBUTION PRODUCT
LAUNCH

• Production planning • Internal • Field force training

• Execution
> warehousing
• Country-wide
> • External launch

availability

*For our Nutrition, Diagnostics and Diabetes Care businesses, Abbott Pakistan is only involved in the
marketing and distribution of products.

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

ABBOTT PAKISTAN
AT A GLANCE
Founded in 1948, Abbott Pakistan has been present in the country for over seven decades, expanding its
operations on a continuous basis through both organic growth and acquisitions. Abbott is a brand that
is associated with quality and care. Today, more than 1,400 of us are working to help people live not just
longer, but better, serving customers nationwide.

OUR BUSINESS DIVISIONS

Abbott is a company with a straightforward purpose: We help people live more fully with life-changing
health products, solutions and technologies. Our patient-centric solutions are addressing important
health needs of people across Pakistan. Our diversity of expertise, technology and geography provides
perspective that enables us to have enduring impact on the lives of millions of people across regions and
cultures.
- Our branded generic medicines help people get and stay healthy.
- Our nutrition products build and maintain health at every stage of life.
- Our diagnostic solutions provide the information to guide effective treatment decisions.

- Our diabetes care products provide people with diabetes more freedom and less pain.

ESTABLISHED PHARMACEUTICALS (EPD)

EPD offers high-quality, affordable and trusted branded-generic medicines to help
treat some of the most common health conditions nationwide. There are more than 150
product SKUs in EPD’s portfolio, and it operates in multiple therapeutic areas which
include:

• Women’s and men’s health • Cardiovascular and metabolic

• Gastroenterology • Pain and fever relief
• Central nervous system • Respiratory
• Pediatrics • Hospital care

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

NUTRITION (ANI)
Proper nutrition is the foundation for healthy lives,
which is why Abbott Nutrition has been offering
science-based nutrition products for several decades.
Abbott Nutrition’s goal is to support people through all
stages of life, from infancy to childhood to adulthood,
so that they are able to live the fullest life possible.

DIAGNOSTICS (ADD)
Our innovative instrument systems and tests
help monitor a range of health conditions. From
automated lab diagnostic systems and blood
analysers to sophisticated molecular diagnostics
and point-of-care devices, our technologies provide
healthcare professionals with information they need
to make the best treatment decisions.

DIABETES CARE (ADC)

We are committed to develop products to reduce
the discomfort and inconvenience of blood glucose
monitoring; introducing systems that are easier to
use, require less blood and provide faster results.
Consistent and accurate glucose monitoring is the
foundation of any diabetes management plan, so we
are committed towards continuous improvement in
the way patients and professionals measure, track and
analyse glucose levels.

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

OWNERSHIP AND OPERATING STRUCTURE

Abbott Laboratories (Pakistan) Limited is a public

listed company that was incorporated in Pakistan in ULTIMATE HOLDING
1948 as a private marketing company. It gradually COMPANY
expanded its operations over the years and is currently Abbott
one of the largest pharmaceutical companies in Laboratories, USA
Pakistan, and has presently two state-of-the-art
manufacturing facilities based in Karachi. The
Company is listed on the Pakistan Stock Exchange 100% Effective Shareholding
with 77.9% of its shares being held by Abbott Asia
Investments Limited, UK. PARENT COMPANY
Abbott Asia
The ultimate holding company is Abbott Laboratories,
Investments
USA which is head-quartered in Abbott Park, Chicago
– Illinois. Limited, UK

Key related parties with which the Company has had 77.9% Shareholding
transactions during the year are disclosed in
Note 33 of the financial statements.

Abbott Laboratories
(Pakistan) Limited

SIGNIFICANT CHANGES FROM PRIOR YEAR

There were no significant changes from prior year.

COMPOSITION OF LOCAL VERSUS

IMPORTED MATERIALS
Abbott procures its materials from both local and international sources. Composition of local versus imported
materials during the year ended December 31, 2020 was as follows:

LOCAL
26%

IMPORTED

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74%
 ABBOTT PAKISTAN 2020 ANNUAL REPORT

CORPORATE STRUCTURE

SHAREHOLDERS

BOARD OF
DIRECTORS

HUMAN RESOURCE
& REMUNERATION
COMMITTEE

RISK MANAGEMENT
COMMITTEE
SHARE TRANSFER
COMMITTEE

CHIEF EXECUTIVE
AUDIT COMMITTEE OFFICER NOMINATION
COMMITTEE

BANKING
INTERNAL AUDIT MANAGEMENT COMMITTEE

ESTABLISHED
OTHERS DIABETES CARE
PHARMACEUTICALS

GENERAL
NUTRITION HEALTHCARE

DIAGNOSTICS

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

HISTORY
TIMELINE
A TRADITION OF INNOVATION
More than 130 years ago, in the year 1888, 30-year-old Dr. Wallace C. Abbott, a practicing
physician and pharmacy proprietor, founded the company that bears his name. Using
the active part of a medicinal plant, known as the “alkaloid,” he formed tiny pills, called
“dosimetric granules,” which provided more accurate and effective dosing for his patients
than other treatments available at the time. The demand for these accurate granules soon
far exceeded the needs of his own practice and, from these modest origins, was born
Abbott, one of the world’s most broad-based healthcare company and a global leader in
the discovery, development and manufacture of products that span the continuum of care.

The business The Abbott Dr. Abbott breaks

is officially Alkaloidal ground for a new
1900 incorporated in 1915 Company’s 1920 manufacturing
Illinois as the name is changed facility in North
Abbott Alkaloidal to Abbott Chicago, Illinois. This
Company. Laboratories. location will serve
as the Company’s
headquarters for
more than 40 years.

Abbott opens Abbott acquires Major operations

its first M&R Dietetic are moved to Abbott
1962 manufacturing 1964 Laboratories of 1965 Park, a 420-acre site
facility in Columbus, Ohio. southwest of its North
Karachi, Pakistan. Chicago headquarters.

Abbott Diabetes Abbott Abbott separates

Care is created with acquires Solvay into two leading
2004 the acquisition of 2010 Pharmaceuticals, 2013 healthcare companies,
TheraSense Inc., a the global a diversified medical
leading blood glucose pharmaceutical products company
monitoring business. business of the under the Abbott
Abbott also acquires Solvay Group name and a research
EAS Inc., a leader in and STARLIMS based pharmaceutical
performance nutrition Technologies. company, named
products. AbbVie.
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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

Abbott's stock Abbott’s first Abbott starts

is listed on the international its operations
1929 Chicago Stock 1931 affiliate is 1948 in Pakistan,
Exchange. established in as a private
Montreal, Canada. marketing
company.

The global Abbott Abbott is listed as Abbott acquires

Diagnostics Division a public limited the pharmaceutical
1973 is formed to bring 1982 company in Pakistan. 2001 business of BASF,
together the Company’s including the global
diagnostic products operations of Knoll
and services. Ensure, Pharmaceuticals.
Abbott’s first adult Vysis, Inc., a leading
medical nutritional genomic disease
supplement, is management
introduced. company, is also
acquired.

Abbott acquires the control of Abbott acquires St. Jude Medical. The
CFR Pharmaceutical thereby acquisition strengthens Abbott’s presence in
2014 establishing Abbott among top 2017 cardiovascular area, thus making Abbott a
pharmaceutical companies premier medical device company.
in Latin America. Abbott also
acquires control of Veropharm, Abbott also acquires Alere, a company
a leading pharmaceutical focusing on cardiometabolic, infectious
manufacturer in Russia. disease and toxicology testing.

27
ABBOTT PAKISTAN 2020 ANNUAL REPORT

GEOGRAPHICAL
PRESENCE

UNITED STATES, LATIN

AMERICA AND CANADA
Illinois - Abbott Ecuador
Park - Head Office El Salvador
Argentina Guatemala
Brazil Mexico
Canada Peru
Chile Puerto Rico
Colombia Trinidad and Tobago
Costa Rica Uruguay
Dominican Republic Venezuela

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

EUROPE
Albania Croatia Greece Netherlands Slovenia
Armenia Czech Republic Hungary Norway Spain
Austria Denmark Ireland Poland Sweden
Azerbaijan Estonia Italy Portugal Switzerland
Belarus Finland Kazakhstan Republic of Serbia Turkey
Belgium France Latvia Romania Ukraine
Bosnia-Herzegovina Georgia Lithuania Russian Federation United Kingdom
Bulgaria Germany Moldova Slovakia Uzbekistan

MIDDLE EAST AND AFRICA ASIA PACIFIC

Algeria South Africa Australia Pakistan
Egypt Tunisia China Philippines
Israel United Arab Emirates Hong Kong Singapore
Kuwait India South Korea
Lebanon Indonesia Taiwan
Saudi Arabia Japan Thailand
Malaysia Vietnam
New Zealand
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ABBOTT PAKISTAN 2020 ANNUAL REPORT

Continuously
improving our
supply chain helped
ensure steady
access to our
trusted medicines in
2020.

ESTABLISHED PHARMACEUTICALS

MAXIMISING
ACCESS.
>150
ABBOTT OFFERS BROAD
PORTFOLIO OF TRUSTED
MEDICINES

30
 ABBOTT PAKISTAN 2020 ANNUAL REPORT

Ayesha Shaikh
Karachi, Pakistan

I’m blessed to have a caring circle of family and friends. However, my

personal life was severely disturbed when the global pandemic entered
Pakistan. My primary concern was the health and safety of my family. Upon
sharing my concerns with a healthcare practitioner, my family & I were
recommended some of Abbott’s leading multivitamin supplements. Now I
am much relieved. We are still concerned about the ongoing pandemic, but
at least I can sleep better knowing that I’m doing all I can to protect the well-
being and health of my family. Abbott has been a hero & protector for my
family in the ongoing pandemic.

Every day, millions of people

throughout the country use Abbott’s
medicines — a broad portfolio of off-
patent brands that help treat some of
the most common health conditions.
The company is continually innovating,
building on its leadership positions
with new products and indications and
improved ways of using its medicines.
These products are backed by Abbott’s
70-year reputation for quality, a
reliable supply chain, and a world-class
scientific culture and expertise.
Abbott understands that better patient
care requires innovation and value. As
such, the company tailors its product
offerings to meet the specific needs
of the people we serve. Because we
believe that the best medical products
are the ones that help the most people,
Abbott tailors our product portfolios
to the specific needs of the local
communities we serve, helping ensure
that we can make a life-changing
difference to more people, in more
places.
Our Established Pharmaceuticals
Division (EPD) is focused on helping
to make the world a healthier
place by bringing the benefits of
trusted pharmaceutical brands to
much broader patient populations.
EPD brings value to its patients
and customers through a growing
portfolio of high-quality established
pharmaceutical products by building a
range of trusted products to suit patient
needs.
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ABBOTT PAKISTAN 2020 ANNUAL REPORT

NUTRITION

FUEL FOR
LIFE.

Mr. Khawaja Shadab Hassan

Karachi, 57 years

Mr. Shadab, an entrepreneur, is associated with the media industry. He loves the idea of leading a healthy and
active lifestyle and for him, family always comes first. His routine challenges him during lengthy media shoots,
which start early in the morning and continue till late in the nights. Despite ageing, he takes keen interest in
all his daily chores and does not want to be held back. However, two years back, he started to have a feeling of
fatigue and felt difficulty in mobility.
Upon consultation, his family physician recommended him to consume Ensure on daily basis. He has been
taking Ensure daily for the last two years, and now feels more active, vibrant and continues to do the things
he loves to do. He loves spending time and playing with his granddaughter, who is also part of the Abbott
Nutrition family, as she is an ardent user of PediaSure; that helps nourish her growth and development in these
most critical early years of life.

32
 ABBOTT PAKISTAN 2020 ANNUAL REPORT

Targeted Nutrition To
> 90% Support Fuller,
More Active Lives.
MARKET SHARE
Our science-based nutritional products help people
IN ADULTS AND
build and maintain health from infancy onwards.
PEDIATRIC SEGMENTS
(IQVIA DEC-2020) The Ensure portfolio is designed for adults who are
beginning to feel the signs of ageing (physical and
mental) and are motivated to make lifestyle changes
and include specialised nutrition to better manage their
ageing process.
PediaSure is formulated specifically for children who
need to improve their nutritional intake. PediaSure
provides complete and balanced nutrition, including all
macro and micro-nutrients necessary for children to
achieve optimal growth and development. PediaSure’s
vision is to be the nutrition solution partner of mothers
concerned about their children’s eating behaviour.
Glucerna Triple Care has been scientifically designed
to directly help manage blood glucose levels as part of a
diabetes management plan.
The year 2020 was globally perhaps the most
extraordinary in recent history, and Pakistan was no
exception. The pandemic brought to the fore challenges
that were quite unprecedented. We had to halt our
robust Healthcare Professional (HCP) education
programs as well as other direct-to-consumer
interactions such as the Sure Mom programs in schools.
However, despite all the obvious challenges, ANI
Pakistan came out with flying colors and delivered a
strong 38% growth over last year, fueled by 42% growth
in adult nutrition as well as 32% in PediaSure.
Success was made possible due to a speedy and a
definitive transition from established business drivers
to the new norms. Moreover, need of the hour was to
raise awareness amongst consumers regarding the role
of oral nutritional supplements such as Ensure and
PediaSure, in supporting immunity amongst ageing
adults and children. Keeping this in view, a holistic and
a well-rounded campaign was launched across media,
HCP and consumer interactions.
With lockdowns and restrictions limiting hospital
and OPD patients’ turnover, and a captive audience
available at homes, the nutritional awareness paradigm
shifted from HCP education to electronic media. An
extensive media campaign was launched for both
Ensure and PediaSure on both TV and digital media,
and complemented by radio as well.

33
ABBOTT PAKISTAN 2020 ANNUAL REPORT

Critical tests, quickly developed

and deployed, help ensure
proper patient care and protect
communities.

DIAGNOSTICS

LEADERSHIP
MOBILIZED.
Rehman Medical Institute (RMI)
Peshawar, Pakistan
Rehman Medical Institute, a In 2019, in order to enhance
550-bed hospital, commenced its uniformity, flexibility and BRINGING
RMI values TOGETHER
Abbott’s
operations in 2002. It is a state- operational productivity, Abbott’s A FULL RANGE
commitment in OF
of-the-art tertiary care medical Alinity and innovative informatics SOLUTIONS
providing better
facility providing preventive, solutions, AlinIQ were installed
curative and rehabilitative at RMI. Alinity represents a healthcare
services. breakthrough in the diagnostics performance.
industry, as they are designed to
RMI’s commitment towards be inter-connected, with common
becoming the premier healthcare hardware and software platforms
provider by offering state of the and work together seamlessly
art diagnostic facilities became the while using less space in today’s
foundation for its partnership with smaller labs.
Abbott.
RMI is proud of its long-standing
Abbott’s partnership with RMI partnership with Abbott and
goes way back to its inception, continues to rely on Abbott’s BRINGING TOGETHER
when our Immunoassay Analysers leading instrumentation and A FULL RANGE OF
(AxSYM) were placed at their best-in-class prompt services and SOLUTIONS
lab in 2002. Later, in order to solutions.
cater for growing volumes of
laboratory testing, RMI upgraded
its laboratory with the installation
of Abbott’s Architect systems.

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

LEADING
DIAGNOSTIC
~70%
~
SOLUTIONS OF CRITICAL CLINICAL A TOTAL LABORATORY
PROVIDER IN DECISIONS ARE SOLUTION -
PAKISTAN INFLUENCED BY PERSONALISED AND
DIAGNOSTIC TEST HARMONISED
RESULTS

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

Minimising the pain and Caring for people with diabetes in Pakistan since the early
90’s, Abbott’s Diabetes Care firmly believes that self-testing
inconvenience of testing is a fundamental part of managing your blood sugar levels
and therapy regimens. That is why we are dedicated to
making it simple and easy.
The FreeStyle family of products provide the right tools and
insights to healthcare professionals to take diabetes care
to the next level. This is done through the features of our
current products, which provide an easy setup, testing &
tracking to gain insights to make glucose monitoring easy
and convenient.

DIABETES CARE

SHAPING THE
FUTURE OF DIABETES
MANAGEMENT.

FREESTYLE
BLOOD GLUCOSE
MONITORING SYSTEM
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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

FREESTYLE OPTIUM NEO: INSULIN SUPPORT The FreeStyle Optium Neo is used to record insulin
TOOLS AT YOUR FINGERTIPS doses and log glucose readings. The meter can help
spot trends in blood glucose levels and help correct
The FreeStyle Optium Neo Blood Glucose & Ketone them before they occur by comparing previous
Monitoring System is a source for thousands of readings. The FreeStyle Optium Neo Blood Glucose
diabetic patients and doctors across Pakistan to & Ketone Monitoring System, passes the ISO 2013
check blood glucose levels regularly; to help them blood glucose meter accuracy standards with 99% of
maintain a healthy life, monitor insulin needs, and results falling between the required limits.
assess and alter medications accordingly.

MR. SHARIQ AHMED SIDDIQUI

Karachi, 48 years
Mr. Siddiqui has been with
diabetes for nearly 5 years now.
He is managing his diabetes well
and checks his blood sugar levels
regularly with FreeStyle Optium
Neo blood glucose & ketone
monitoring system. He tries to eat
healthy and stay fit through regular
exercise to prevent his diabetes
from getting the better of him.

37
ABBOTT PAKISTAN 2020 ANNUAL REPORT

PRODUCT
LAUNCHES
AlinIQ is a first of its kind holistic professional services and informatics portfolio. With the growing complexity
of healthcare sector, Abbott’s suite of Integrated Professional Services and proprietary informatics solutions are
even more powerful with the following broader portfolio:

Indexor, to optimise
01 pre-analytics

Analyser Management
02 System (AMS)

Inventory Management
03 System (IMS)

Predictive Preventive
04 Monitoring of Instruments
(Always On)

Business Intelligence
05 System (BIS)

Clinical Decision
06 Support (CDS)

07 New AlinIQ Integrated Platform.

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

BRINGING TOGETHER A FULL RANGE OF SOLUTIONS

OUR COVID-19 RESPONSE

Abbott responded swiftly to the COVID-19 crisis by introducing comprehensive diagnostic solutions to test
COVID-19 and related antibodies. Our solutions have the potential to span multiple care settings.

LAB BASED SEROLOGY TESTS LAB BASED MOLECULAR TESTS RAPID TESTS
• Used on instruments in • Detect the presence of SARS- Easy to use at point of care.
hospitals and labs. CoV-2 active infection using
PCR Technology. • Highly portable, no
• Detect antibodies (e.g. IgM, instrumentation required.
IgG) found in blood including • Ability to detect mutation
the UK & South African i.e. SARS-CoV-2 UK Variant • Results: 10–20 minutes.
variants, days to weeks after Under Investigation (VUI) Panbio™ COVID-19 Ag Rapid Test
symptoms appear. 202012/01 and South African
variant SARS-CoV-2 lineage • A rapid antigen test for the
Architect i1000 SR, i2000 SR & (501Y.V2). qualitative detection of the
Alinity I SARS-CoV-2 IgG, IgM & SARS-CoV-2 virus, samples
IgG II Quant. m2000 are taken by either a nasal or
• Blood tests. • Throughput of Real time nasopharyngeal swab.
PCR tests up to 480 tests/day,
• Throughput up to 100–200 results in 6.5 hours.
tests per hour. Panbio™ COVID-19 IgM/IgG
• Nasopharyngeal and Antibody
• Time to first result: 29 oropharyngeal swabs.
minutes. • A rapid test for the qualitative
Alinity m detection of IgG and IgM
• Determine if someone was
infected and developed • Throughput up to 1,080 tests/ antibodies to the SARS-CoV-2
antibodies. day. virus, samples are taken by a
blood finger prick.
• Helps better understand • Time to first result: < 115
the virus and support minutes.
development of treatments
and vaccines. • Nasopharyngeal and
oropharyngeal swabs.
• ReadiFlex technology allows
true random access regardless
of assay mix.

Surveillance Analytics, powered by the AlinIQ Integrated Platform

Backed by the power of the AlinIQ Integrated Platform, Surveillance Analytics provide laboratory leaders
with the critical insights needed to address the impact of infectious diseases on the communities based on
demographics and the population they serve.

39
ABBOTT PAKISTAN 2020 ANNUAL REPORT

OBJECTIVES AND STRATEGIES

OBJECTIVE STRATEGY
Maintain leadership Continuously invest in new
position in the products and consolidate
market shares of established
pharmaceutical sector brands.

OBJECTIVE STRATEGY
Profitability & Drive business growth and
sales growth profitability initiatives
through continued focus on
optimisation and efficiency.

OBJECTIVE STRATEGY
Achieve operational Utilise efficiencies available in
efficiency and utilise different divisions to maximise
synergies.
cross-divisional
expertise

40
 ABBOTT PAKISTAN 2020 ANNUAL REPORT

RESOURCE ALLOCATION PLAN RELEVANT KPIs TIMELINE

Abbott continues to lay strong emphasis on new product initiatives Market share and Long Term
to identify opportunities in multiple therapeutic areas. In addition, ranking in the relevant
the Company continually invests to retain / expand its market therapeutic classes as
share. per IQVIA (formerly
IMS).

RESOURCE ALLOCATION PLAN RELEVANT KPIs TIMELINE

The Company continues to invest in capacity building by utilising Profitability margins Medium to
latest technological advancements to minimise costs and simplify and sales growth Long Term
processes. versus market
growth as per IQVIA
( formerly IMS).

RESOURCE ALLOCATION PLAN RELEVANT KPIs TIMELINE

With Abbott’s presence in multiple segments through its business Operating income Medium to
divisions, the Company is able to obtain in-depth market insights. growth. Long Term
This helps develop optimal strategies to avail opportunities in
different segments including distribution arrangements and
procurement strategies.

FUTURE RELEVANCE
The KPIs will remain relevant in the future.
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ABBOTT PAKISTAN 2020 ANNUAL REPORT

OBJECTIVES AND STRATEGIES

OBJECTIVE STRATEGY
A great place Focus on employee motivation.
Take initiatives that build
to work value of trust and contribute
in creating an enjoyable
work environment, where
employees exhibit positive
energy.

OBJECTIVE STRATEGY
Helping people live Provide the best possible
their best lives healthcare solutions coupled
with diversity and innovation.

OBJECTIVE STRATEGY
Environmental Reduce greenhouse gas emissions
sustainability and contribute positively to
protect the environment by
investing in projects to reduce
waste, conserve water and energy.

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

RESOURCE ALLOCATION PLAN RELEVANT KPIs TIMELINE

Human capital is Abbott’s core asset. The Company provides Employee turnover Medium to
multiple avenues for employees to grow and learn while rate, employee long term
contributing towards organisational success. The Company feedback on GPTW
ensures that its employees remain motivated and focused towards and other employee
achieving the organisation’s success by providing them with the surveys.
tools for continuous self-development, together with market
competitive salaries.

RESOURCE ALLOCATION PLAN RELEVANT KPIs TIMELINE

Abbott has strict quality guidelines in place. This ensures that Product quality Medium to
products meet/exceed the required quality standards. Additionally, survey results. long term
Abbott continuously strives to innovate so that its customers can
benefit from the latest advancements in science.

RESOURCE ALLOCATION PLAN RELEVANT KPIs TIMELINE

Abbott has a dedicated environment, health & safety team Waste recycled & Long Term
which focuses on reducing greenhouse gas emissions and the reduced, water and
organisation’s footprint on the environment. Measures taken energy conserved &
include setting up a composting plant, installation of solar consumed.
panels and drip irrigation system.

FUTURE RELEVANCE
The KPIs will remain relevant in the future.
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ABBOTT PAKISTAN 2020 ANNUAL REPORT

OBJECTIVES AND
STRATEGIES
SIGNIFICANT CHANGES IN OBJECTIVES
AND STRATEGIES VERSUS LAST YEAR

There have been no significant changes

compared to last year.

LIQUIDITY POSITION OF THE COMPANY

The Company is sufficiently liquid and has

PKR 7,489 million of cash and cash equivalents
as of 31st December, 2020 to meet its
investment and working capital requirements.
There are no significant long-term or short-
term debt obligations except for lease
liabilities.

SIGNIFICANT PLANS

The Company has continually expanded

its operations and has invested on
capacity upgradation. Abbott Pakistan
plans to continue to build and enhance its
productivity and output going forward.

STRATEGY TO OVERCOME ANY

LIQUIDITY PROBLEMS

The Company has no liquidity problems

and has insignificant debt in the form
of lease liabilities. There have been no
defaults in payments of any debts during
the year.

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

RISK MANAGEMENT
AT ABBOTT
At Abbott, we believe risk management to be an management team, under the supervision of Risk
ongoing process of continuously identifying and Management Committee, Audit Committee and the
understanding the full spectrum of the organisation’s Board of Directors. The key risks pertinent to each
risks and taking informed mitigating actions, if department are identified, assessed and allocated
required. to each function. These risks are mitigated through
upgradation of SOPs and process revitalisation.
The focus is on integrating risk management with
existing management processes in a manner that STATEMENT BY THE BOARD ON RISK
probable future events with negative impacts may be MANAGEMENT POLICIES AND ASSESSMENT
assessed and dealt with proactively. Periodic review of OF RISKS
processes transforms risk management to a proactive The statement by the Board may be read in the
and value-based activity. It aligns strategy, people, Directors' Report. Please refer page 90.
processes, technology and knowledge. The emphasis is
on strategy, and the application is enterprise-wide. The key risks identified as part of the risk
management framework are detailed on the next page
RISK MANAGEMENT FRAMEWORK along with their sources and mitigating plans.
The "Risk Assessment Process" is carried out by the
Chief Internal Auditor in consultation with the senior

45
ABBOTT PAKISTAN 2020 ANNUAL REPORT

KEY RISKS AND

OPPORTUNITIES REPORT
RISKS TYPE OF CAPITAL AFFECTED SOURCE

CURRENCY RISK External –

The risk that the currency devaluation will Financial devaluation of
negatively impact the Company’s return. currency.

RISK OF COUNTERFEIT PRODUCTS External –

smuggled or
Erosion of margins, loss of market share and Intellectual counterfeit
reputational risk as a result of the Company’s products in the
products being copied / smuggled. local market.

CATASTROPHIC RISK AND LOSS OF ASSETS

The risk of disruption in operations due to any Manufactured External –
natural disaster, including inability to recover and Financial natural disasters.
operational capacity.

LEGAL AND REGULATORY RISK External – non-

compliance
Risk of non-compliance with applicable laws Financial with laws and
and regulations and being adversely affected regulations /
due to enactment / imposition of new laws. new laws.

LIQUIDITY RISK Internal –

The risk of inability to meet financial Financial mismanagement
obligations as and when they fall due. of cash flows.

46
 ABBOTT PAKISTAN 2020 ANNUAL REPORT

H High
M Medium
L Low

LIKELIHOOD MITIGATION MEASURES

RELATED OPPORTUNITIES
MAGNITUDE

The Company actively seeks to identify local

Insulation form the adverse
H H sources for its raw materials in order to reduce
effects of current devaluation
its exposure to currency fluctuations. Further,
M M can help the Company to
the Company also has a natural hedge in place
sustain and improve its
L L since it has both foreign currency denominated
profitability.
export receivables and import payables.

The Company continually engages with

H H the regulators to highlight and identify
Maximise market share and
any counterfeit products to prevent future
M M augment presence.
penetration in the market.
L L

The Company has Business Continuity Plans

(BCP) and Disaster Recovery Plan (DRP) in place
H H
to ensure that any adverse or unforeseen events /
M M Not applicable. disasters cause minimum disruption. These plans
help to ensure that there is a rapid and smooth
L L
transition to a backup mode of operation and
expeditious recovery of the normal operations.

Investment in training Our regulatory, medical, and compliance

H H of resources can aid the departments collaboratively mitigate the risk
M M Company in becoming the by monitoring changes in the applicable legal
best-in-class in adoption of and regulatory requirements to ensure timely
L L laws and regulations. compliances.

H H Planning and monitoring Regular monitoring of liquidity status,

M M cash flows could result in cash flow projections, and liaising cross
significant cost-savings and functionally assist in timely fulfilment of
L L investment opportunities. funding requirements.

47
ABBOTT PAKISTAN 2020 ANNUAL REPORT

ANALYSIS OF FINANCIAL AND

NON-FINANCIAL PERFORMANCE
AGAINST INDICATORS
NON-FINANCIAL PERFORMANCE

LEADERSHIP POSITION ACHIEVING OPERATIONAL MAXIMISE SYNERGIES

IN THE PHARMACEUTICAL EXCELLENCE BY UTILISING CROSS-
SECTOR DIVISIONAL EXPERTISE
MANUFACTURED MANUFACTURED MANUFACTURED
CAPITAL CAPITAL CAPITAL

STRATEGY STRATEGY STRATEGY

Continuous investment in Stay abreast of technological Utilise efficiencies available
new products and building advancements and in different divisions to
brand equity of established continuously upgrade maximise synergies.
brands. production facilities to
maximise efficiency.

INDICATORS INDICATORS INDICATORS

Market share and ranking Reduced machine Information sharing
in the relevant therapeutic breakdown and labour idle between divisions and
classes as per IQVIA time, improved productivity departments.
( formerly IMS). and efficiency.

ANALYSIS
The Company rigorously monitors all KPIs to ensure that all its objectives are achieved. During the current year, the
Company continued monitoring each KPI ensuring that the strategic direction of the Company was maintained and
whether the KPIs are relevant for the purpose of measuring company’s progress against desired objectives.

FINANCIAL PERFORMANCE
Financial performance against indicators is explained on page 106 and onwards.

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

GREAT PLACE HELPING PEOPLE LIVE ENVIRONMENTAL

TO WORK THEIR BEST LIVES SUSTAINABILITY

HUMAN SOCIAL & NATURAL

CAPITAL RELATIONSHIP CAPITAL CAPITAL

STRATEGY STRATEGY STRATEGY

Focus on employee Provide the best possible Reduce greenhouse gas
motivation. healthcare solutions emissions and contribute
Take initiatives that build coupled with diversity positively to protect the
value of trust and contribute and innovation. environment by investing
in creating an environment, in projects to reduce waste,
where employees conserve water and energy.
exhibit positive energy.

INDICATORS INDICATORS INDICATORS

Employee turnover rate, Product quality Waste recycled & reduced,
employee feedback on survey results. water and energy conserved
GPTW and other & consumed, awards
employee surveys. and ratings by different
environmental forums.

ANALYSIS
The Company rigorously monitors all KPIs to ensure that all its objectives are achieved. During the current year, the
Company continued monitoring each KPI ensuring that the strategic direction of the Company was maintained and
whether the KPIs are relevant for the purpose of measuring company’s progress against desired objectives.

49
ABBOTT PAKISTAN 2020 ANNUAL REPORT

SIGNIFICANT FACTORS AFFECTING

THE EXTERNAL ENVIRONMENT AND
THE ORGANISATION’S RESPONSE

P E
POLITICAL ECONOMIC
S
SOCIAL

Political uncertainty and Increasing labour costs, Corporate Social

inconsistent policies. rising interest rates, Responsibility (CSR),
inflation, low economic increasing attention
ORGANISATIONAL growth and exchange in healthcare, charity
RESPONSE rate fluctuations impact and donation, safe and
• Discussion and profitability. healthy environment.
engagement with relevant
authorities on future ORGANISATIONAL ORGANISATIONAL
policies and measures. RESPONSE RESPONSE
• Industry issues are dealt • Reduce cost through • Active participation
through Pharma Bureau cost containment in social work
and other business initiatives. initiatives as part
associations. • Price adjustments. of CSR.

50
 ABBOTT PAKISTAN 2020 ANNUAL REPORT

T
TECHNOLOGICAL
L LEGAL
E
ENVIRONMENTAL

Technological Drug Regulatory Authority Growing attention to

obsolescence, competitors of Pakistan Act, 2012, environmental protection,
capitalising on new Companies Act 2017, climate changes, natural
opportunities created Income Tax Ordinance disasters and natural
by technological 2001, Sales Tax Act 1990, resource conservation.
advancements. PSX Rulebook, SECP Act
and others. ORGANISATIONAL
ORGANISATIONAL RESPONSE
RESPONSE ORGANISATIONAL • The Company complies
• Actively invest in RESPONSE with Abbott Global
different projects to • The Company ensures Standards and local
improve efficiency, build compliance with all regulatory compliance
capacity and achieve the applicable laws requirements to
operational excellence. and regulations. The environmental safety.
Company's Finance, The Zero Waste to
Compliance, Medical, and Landfill Certification
Regulatory departments has also played its
monitor any new role to improve the
legislations impacting the environment.
Company and ensures
compliance.

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

CORPORATE
SOCIAL
RESPONSIBILITY
As a socially responsible healthcare Company, we are committed towards taking part in
benevolent causes, adding positive social value and helping people live their best lives.

52
 ABBOTT PAKISTAN 2020 ANNUAL REPORT

In pursuance of its commitment to have a positive Abbott Pakistan has sponsored four patients of
social impact, Abbott Pakistan joined hands with thalassemia who would be provided free of cost
several nonprofit organisations, working for the screened blood and chelating therapy for the entire
welfare of underprivileged populations. year.
THE INDUS HOSPITAL (TIH) PATIENTS AID FOUNDATION
TIH network is a group of hospitals committed to Patients Aid Foundation (PAF), established in
providing free healthcare to the masses. With over 12 1990, is a nonprofit organization serving the most
healthcare facilities, this 1,595-bed hospital network vulnerable and deserving people of Pakistan through
is running several healthcare programs in 41 districts its partnership with the Jinnah Postgraduate Medical
across Pakistan. TIH runs a chronic dialysis program Centre (JPMC).
to support patients with end-stage kidney disease who
Each year, more than 1.5 million people seek
require regular dialysis sessions.
treatment at JPMC. PAF recognizes and shares this
Abbott Pakistan partnered with TIH to support its responsibility by investing in new buildings, latest
chronic dialysis program by sponsoring 200 dialysis medical equipment, provision of staff, and trainings.
sessions.
Abbott Pakistan joined hands with PAF to provide
THE PATIENTS’ BEHBUD SOCIETY FOR AGA KHAN free of charge healthcare to underprivileged patients
UNIVERSITY HOSPITAL (PBS) seeking treatment across 14 different departments at
JPMC.
The Patients’ Behbud Society for Aga Khan University
Hospital (PBS) is registered as an independent, THE LIVER FOUNDATION
charitable society engaged in collecting and disbursing
Liver Foundation is a nonprofit organization working
donations to the needy patients under treatment in
on the eradication of hepatitis C from Pakistan
The Aga Khan University Hospital.
through screening, educating, and providing free
Abbott Pakistan has contributed towards providing treatment to patients. Abbott Pakistan partnered with
healthcare to patients under PBS’ Congenital Heart the Liver Foundation in the extension of its cause.
Program aimed at providing high-quality healthcare to
TRIP TO PROVIDENCE HOME
children with congenital heart diseases.
Abbott Pakistan arranged a trip to the Providence
MUHAMMADI BLOOD BANK & THALASSEMIA
Home in July 2020 to spend a day with the children
CENTER
who reside there. The purpose of this trip was to bring
Muhammadi Blood Bank & Thalassemia Center was a smile on the faces of young girls and remind them
established in 2003 as a nonprofit organisation with of how special and important they are. They were
a mission to provide exemplary care in diagnosis, educated about self-love, hygiene, and self-care. The
treatment and prevention of blood-related diseases. children had a wonderful time playing different games
The center also works towards creating awareness and having lunch with Abbott’s team.
amongst the population regarding thalassemia.

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

ENVIRONMENT,
HEALTH AND
SAFETY
As a global healthcare Company, Abbott is dedicated to safeguarding human health and operating as
a responsible corporate citizen globally. We seek to identify and mitigate climate-related challenges
and risks that are posed to our supply chain, operations, and distribution network through our
management and policies. Reducing our environmental footprint in our operations and throughout the
value chain is a core part of Abbott’s business strategy as we respond to global external pressures, such
as climate changes, extreme weather events, and growing resource scarcity.

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Our EHS management and governance systems ensure Several such training sessions were held at both
that we incorporate environmental considerations into manufacturing sites and the employees participated in
our day-to-day planning and business processes, with various activities rehearsing safety practices at work.
clear lines of accountability and senior-level leadership
and support. EMPLOYEE HEALTH & SAFETY

EFFORTS MADE TO MITIGATE THE ADVERSE Since the beginning of the pandemic, our focus has been
IMPACTS OF INDUSTRIAL EFFLUENTS to protect the health of our employees while ensuring we
continue to deliver our products to the people who need
The world’s resources are finite, and even renewable them. This remained our focus as governments around
resources are being used faster than they can regenerate. the world lifted restrictions and we moved into the next
Waste continues to increase, landfill space is rapidly phase of working during the pandemic. We wanted our
shrinking, and access to acceptable waste disposal employees to feel comfortable working at our facilities.
facilities is limited. This makes improving waste
management a priority, both for our business and for the Split-shift arrangements were introduced, whereby
planet. It improves operating efficiency, reduces costs employees returned to office on a 50/50 alternating
and cuts demand for scarce resources, reducing our schedule, with half of the employees working on site for
environmental impact. a full week and the other half coming on site the next
week.
ZERO WASTE TO LANDFILL INITIATIVE (ZWL)
Zero waste to landfill is a process whereby a site finds
ethical, economical and efficient means to manage
processes in order to avoid and eliminate the volume
and toxicity of waste and materials, and to conserve and
recover all resources. ZWL works towards eliminating
all waste sent to a landfill and diverts it to become a
resource for other beneficial uses.

ZWL remains a key component of Abbott’s overall waste

management strategy. The Company acquired Zero
Waste to Landfill Re-certification in 2019 and both plants
continued ZWL initiative during the year.
INTERNATIONAL CERTIFICATIONS
COMPOSTING
Abbott has established its own environmental, technical,
As concern about landfill space increases, worldwide quality and management standards that closely mirror
interest in recycling by means of composting is growing. ISO standards. This ensures that our management
Composting is a process for converting organic material systems operate in accordance with recognised
into useful products. This is also one of the only ways environmental practices and regulatory requirements. In
to revitalise soil vitality due to phosphorus depletion. addition, the global and local management also supports
This initiative supports Abbott’s ‘Zero Waste to Landfill’ the pursuance of external certifications where there is
initiative. The Composting machine installed at our recognisable business value. As part of this initiative,
Landhi facility is a benchmark for the industry. The we have obtained “Zero Waste to Landfill Certification”
machine at site is a fully automated in-vessel composting and Good Manufacturing Practices (GMP) certificates
system that converts organic waste to compost in just 24 from the Drug Regulatory Authority of Pakistan for
hours. It has a capacity to produce 400 kgs of material as our manufacturing facilities. Further, Abbott Pakistan
compost per day, utilising garden waste and leftover food acquired the following certifications during 2020:
from site canteen to turn into fertiliser.
• ISO 45001:2018 ‘Occupational Health & Safety
TRAINING SESSIONS ON EMPLOYEE SAFETY Management Systems’

Safety training are vital to inculcate an understanding • ISO 9001:2015 ‘Quality Management System’
of safety practices amongst employees. Further, such • ISO 14001:2015 ‘Environmental Management
trainings also help in reducing the risk of injury, System’
absenteeism while also contributing towards improving
employees productivity and motivation.

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

SUPPORTING
OUR
COMMUNITIES

HEALTHCARE SCREENING CAMPS WITH ‘SEHAT Abbott, being a patient-centric organization has
KAHANI’ patients’ wellness at the core of any medical initiative.
Abbott is also proud of its robust scientific relations
‘Sehat Kahani’ has become a household name in with KOLs of multiple specialities which enable it
telemedicine and digital initiatives for HCPs and to execute its medical initiatives in an ethical and
patients. ‘Sehat Kahani’ is about affordable and meaningful way.
convenient healthcare access from the best doctors in
Pakistan. This year, we partnered with them in setting In the past, we had successfully developed IVF*
up healthcare screening camps across Pakistan. practice guidelines with the help of IVF Society of
Pakistan (2019). This proved quite helpful for the
Initial screening camps were aimed at raising Healthcare Practitioners (HCPs) inclined towards this
awareness of zinc deficiency and its diagnosis. These speciality.
screening camps were deliberately set up at hospitals
instead of clinics in order to ensure enhanced coverage In 2020, we worked towards developing a consensus
and reach. Trained nurses at these camps educated the statement for Early Pregnancy Management for women
patients on zinc deficiency and informed them about in Pakistan. The statements are being developed by an
different medical ailments that it might result in. advisory board comprising of top KOLs of Obstetrics
& Gynecology faculty of Pakistan. The objective is to
VIRTUAL ADVISORY BOARD FOR EARLY develop a concise approach for general practitioners
PREGNANCY MANAGEMENT and HCPs in peripheries to follow for management of
early pregnancy.
Medical Advisory Boards are a valuable source of
insights and advice on products and help to address Given the unprecedented situation of pandemic,
unmet medical needs of the healthcare fraternity and we were only able to initiate and engage the faculty
patients. Medical Advisory Boards are governed by Key virtually. We have gathered expert write-ups from each
Opinion Leaders (KOLs) of respective speciality and faculty member which are now in the final phase of
operate within defined medical objectives. the statement development. The initiative was not only
appreciated by the faculty members but was highly
supported in terms of active engagement and outcome.

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SURE MOM PROGRAMS NUTRI CAMPS

The Sure Mom programs that have been instrumental With the overarching objective of raising nutritional
in engaging mothers, were quickly transitioned from awareness, more than 9,000 consumers were
physical to digital engagements, and our School Health nutritionally screened and given consultation by
Educators ended up connecting to more than 18,000 qualified assessors in Nutri camps, set up at different
mothers. areas across Pakistan.
PATIENT CARE PROGRAM
Despite the challenges caused by the pandemic, Abbott’s
flagship ‘Patient Care Program’ continued unabated.
More than 186,000 assessments were conducted by 32
health assessors in 19 key hospitals of key cities.

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

SOCIAL AND
ENVIRONMENTAL
RESPONSIBILITY
POLICY
“Our approach to making a
positive social impact starts with
a question: how can we apply our
unique technologies, expertise
and business mindset to solve
challenges in new ways? And
then we listen and collaborate
closely with the people we serve
to build a better and lasting
response, together.”
JENNA DAUGHERTY
Divisional Vice President,
Global citizenship and
sustainability

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MAKING A POSITIVE IMPACT The policy is designed to achieve the

following objectives:
As a healthcare leader, we have an inherently
positive social impact on helping people to • Maintain a safe and healthy workplace
live longer and better. We apply our unique and environment;
strengths to identify and invest in life-
changing innovations, design new business • Continuously reduce the use of materials
models to meet emerging healthcare needs or practices that may have a negative
and find measurable ways to address social impact on human health and the
challenges through our scientific and environment;
technical expertise. When we prioritise • Conserve energy and other natural
systems-thinking and collaboration, we can resources;
grow our business, improve lives and create
value for the people we serve. • Integrate health, safety, and
environmental concepts into business and
The Company engaged in various CSR operations planning and decision making;
initiatives during the year, details of which
can be found on page number 52. • Educate and engage employees to
optimise health, safety, and environmental
PROTECTING A HEALTHY ENVIRONMENT performance and provide other
Abbott is committed to safeguarding a stakeholders with relevant information on
healthy environment for everyone by these efforts; and
reducing adverse environmental impacts • Comply with all applicable laws and
of our business across our value chain. affiliate policies and standards designed
This commitment shapes the way we to protect human health, safety and the
source, manufacture, design, and distribute environment.
our products and forms the basis for our
environmental management systems and
governance.
Abbott Pakistan also has a formally
documented policy on Environment,
Health and Safety (EHS) which governs all
operations and employee behaviour to ensure
that the Company conducts its business in
a manner which is protective for human
health, safety, and the environment.

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

HUMAN RESOURCES

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The year 2020 brought unprecedented challenges SUCCESSION PLANNING AND TALENT
and disruptions caused by the COVID-19 pandemic, MANAGEMENT
affecting businesses and operations worldwide. The
pandemic forced a major shift in the way people work Abbott Pakistan’s Board of Directors and senior
and contribute towards organization goals due to the management teams place a strong emphasis on
requirement of social distancing which necessitated succession planning and talent planning and on
practices of working remotely. We are pleased to ensuring diversity and inclusion through this process.
report that our swift response to the situation in the Talent Management Reviews (TMR) are carried
form of implementing work from home and split- out annually to assess critical positions, identify
shifts arrangements contributed significantly towards succession plans and create development plans. We
the safety of our employees whilst also ensuring intentionally identify destination roles that align with
continuity of our operations and products’ availability. an employee’s career trajectory. This helps us make
Our company made all possible efforts to ensure that sure current and future leaders are building the skills
safe practices are put to place in such a way that while they will need for success. Similar succession planning
remaining strictly within the WHO and federal and takes place at every level of the company. The senior
provincial guidelines, employees are provided with leadership team holds divisional, functional, and
support so they can continue to operate and deliver at regional TMRs, each of which sets out to identify
optimum. “Ready Now” and “Ready Future” successors. Our
people managers also have annual talent development
The Human Resource function at Abbott continues goals.
to serve as an important strategic business partner;
helping achieve organisational objectives through CAREER CONNECT
organisational development, and culture and Every Abbott employee has access to Career Connect,
productivity-related interventions. a personalized career and development planning tool.
Career Connect helps employees to identify their
career priorities, have more productive conversations
with managers, gain the experience and skills they
need through on-the-job learning, and draw up clear
development plans for achieving their goals.

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OUR WORKPLACE ENVIRONMENT – A GREAT employer brand, both through our own digital
PLACE TO WORK properties and through other channels; reimagining
our candidate and employee experiences; partnering
Abbott is recognized for being a great place to with academic institutions and associations that
work. Many factors influence that, including our align with our needs; and providing opportunities for
commitment to diversity and inclusion of all forms. talented college students to develop their careers at
We’re a caring organization, and our employees count Abbott. We build our employer brand through targeted
on us for support. Our employees work hard every social media platforms, such as LinkedIn®. These
day to make a difference, and we take pride in helping enable us to reach and engage with talented people
them reach their potential. who have an appetite for innovating with purpose. Our
Our promise to each of these employees is to provide a internship program helps us to identify and recruit
workplace environment that: talent at an early career stage, giving students hands-
on experience of working with Abbott.
• Promotes diversity and inclusion
• Offers extensive professional development,
mentoring and training programs
• Encourages and supports work-life harmony
• Offers competitive compensation and benefits
• Protects human rights
• Offers wellness programs
• Contributes to employee health and safety

RECRUITMENT

Abbott is committed to building a diverse talent

pipeline that can meet the needs of our businesses. Our
integrated approach includes building a compelling

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DIVERSITY AND INCLUSION through our integrated Environment, Health and

Safety (EHS) management system. Abbott takes a
Abbott is committed to developing a workplace that holistic approach to employee well-being. We offer
is inclusive for all, regardless of race, gender, age, programs that support work-life harmony and promote
sexual orientation, disability, or nationality. Ensuring good health. We pay particularly close attention to the
an inclusive environment for people with disabilities mental health of our employees. We take an integrated
requires raising awareness of issues among both approach that includes addressing causes of stress,
managers and employees. both within and outside the workplace. Our most
COMPENSATION AND BENEFITS popular and long-standing physical wellness program
is ‘Exercise Across Abbott’, which encourages our
Our compensation policy has a vital role to play employees to team up with colleagues and compete
in attracting the best and brightest minds to work for prizes by tracking how many minutes they exercise
at Abbott and in building an environment of equal each day.
opportunity for all. The fundamental principle of
compensation at Abbott is that it should be driven We strive to operate a workplace that is not only safe
by employees’ performance and expertise. We have and healthy but also fosters well-being and ensures
procedures and processes to ensure consistency in that all employees feel engaged.
compensation across similar roles in relevant markets. In all areas of work, the office of Human Resources
As a result, Abbott believes that policies are in place so firmly upholds confidentiality, accountability and
that our employees receive comparable compensation, trust. Our service-oriented HR team, constantly
regardless of race or gender. Abbott has procedures strives to ensure that an environment based on
that encourage frequent manager and employee merit, performance, and mutual respect prevails
dialogue around performance and compensation, and and employees achieve excellence in whatever they
we make a range of channels available for employees to do. Our ongoing investment in people development
raise any concerns in this area. complimented businesses’ efforts in high employee
EMPLOYEE HEALTH, SAFETY AND WELLNESS motivation and productivity despite some very
tough challenges during the year. Our employees
The health, safety, and wellness of our employees and demonstrated grit, resilience, and courage throughout
contract workers is a priority for Abbott. We have this tough year and helped the Company in achieving
embedded this priority at every level of our business its objectives.

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QUALITY
ASSURANCE

Consumers trust Abbott products to help them

live their best possible lives through better
health. We do not take this responsibility lightly.
We are fully committed to improving healthcare
by providing high-quality, safe, and effective
products and ensuring compliance. Our quality
culture is embedded in everything we do. Our
quality system operates to achieve a culture of
continuous improvement and focuses on patient
and product safety.

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ISO CERTIFICATIONS:
Abbott Pakistan sites have successfully achieved ISO Certification for ISO 9001:2015
“Quality Management System”, ISO 14001:2015 “Environmental Management
System” & ISO 45001:2018 “Occupational Health & Safety Management Systems” in
2020. These certifications will further enhance the GMP & safety status of our sites.

MICROBIOLOGY LAB:
A new microbiology lab was set up at the Landhi plant in 2020. It is a state-of-the-
art facility based on advanced Good Laboratory Practices (GLP) and World Health
Organisation (WHO) standards. The facility contains dedicated sterility suites for
antibiotic and non-antibiotic testings.

TRAINING MANAGEMENT SYSTEMS

Following the implementation of Document and Regulatory Information Universal
System (DARIUS) last year, local SOPs were also integrated in the training
management systems. Specific modules were developed for each employee based
on his / her job description. A new software, ‘Brainshark’ was used to evaluate the
understanding of employees in relation to the trainings provided.

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

AWARDS
AND
RECOGNITIONS
ABBOTT PAKISTAN WON BEST CORPORATE REPORT AWARD 2019
Abbott Pakistan was awarded 2nd position in the Pharmaceuticals category of the 2019 Best Corporate Report
Awards organised by the Institute of Chartered Accountants of Pakistan (ICAP) and Institute of Cost and
Management Accountants of Pakistan (ICMAP). The objective of the award is to encourage and give recognition
to companies showing excellence in annual corporate reporting that promotes corporate accountability and
transparency through the publication of timely, qualitative, and reader-friendly annual reports. This achievement
of the Company is a manifestation of Abbott’s unrelenting drive towards excellence in all domains.

ABBOTT PAKISTAN WON CORPORATE SOCIAL RESPONSIBILITY AWARD

Based on various initiatives for the health and safety of its employees, Abbott Pakistan was presented with an
award under the category of ‘Employee Health and Safety Program’ at the 9th International Corporate Social
Responsibility Summit and Awards.

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ABBOTT PAKISTAN WON MAP 35TH CORPORATE EPD PRESIDENTIAL AWARD – RECOGNITION
EXCELLENCE AWARD FROM ABBOTT GLOBAL
Abbott Pakistan was awarded the First Prize by Abbott operations’ team, under the leadership of
the Management Association of Pakistan (MAP) in Muhammad Imran Khan – Director Manufacturing,
Pharmaceutical sector for the seventh consecutive year. were recognised with the EPD Presidential Award
MAP annually organises the ‘Corporate Excellence for their contributions in fulfilling all the operational,
Awards’ to recognise and honour the best managed quality and compliance requirements pertaining
companies in Pakistan that follow guidelines and to a special import permit. The team was able to
principles of latest management techniques through successfully deliver on all the requirements in a very
an extensive and transparent process. The evaluation limited timeframe which enabled Abbott Pakistan to
process entails management practices appraisal based execute shipments of key brands successfully.
on questionnaires and top management meetings and
detailed financial evaluation based on the Company’s
Annual Report.

ABBOTT PAKISTAN WON HEALTH AND SAFETY

EXCELLENCE AWARD
Abbott Pakistan was presented with an award in the
6th International Environment, Health & Safety (EHS)
Summit and Awards to acknowledge its proven track
record and performance on EHS particularly with
regards to engaging employees in related initiatives.

ABBOTT PAKISTAN WON ANNUAL

ENVIRONMENTAL EXCELLENCE AWARD
Abbott Pakistan’s contributions towards environmental
sustainability were recognised at the 17th Annual
Environmental Excellence Award 2020 organised by
M/s. National Forum for Environment and Health.

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ETHICS
AND
COMPLIANCE
“We incorporate ethics and compliance into every JAMES YOUNG
part of our business. At Abbott, we work with our VICE PRESIDENT,
leaders to build this culture throughout all levels CHIEF ETHICS AND COMPLIANCE OFFICER
of our organization, and it remains a critical part ABBOTT LABORATORIES, USA
of how we operate.”

Abbott exists to enable people to live fuller and code highlights key areas such as the importance
healthier lives. We strive to make an impact on of adhering to policies and procedures, treating
policies and priorities that have a positive effect on confidential information appropriately, avoiding
people’s health and well-being. This includes enabling conflicts of interest, and maintaining accurate books
broader access to healthcare and life-changing and records. The code clearly states that Abbott does
technology. not tolerate illegal or unethical behaviour in any
aspect of our business and that employees are required
We must demonstrate that our advocacy is always to ask questions and/or report any concerns.
ethical and responsible and that we operate all aspects
of our business fairly, honestly, and with integrity. We INTERACTION WITH HEALTHCARE
are committed to adhering to all applicable laws and PROFESSIONALS (HCPs)
regulations in every aspect of our work as a global We have made ethical interactions with healthcare
healthcare company. professionals a key focus of our ethics and compliance
program, as well as a focus of our Code of Business
We have a clear strategy for building a culture
Conduct. We monitor our interactions with healthcare
of compliance at Abbott that engages all of our
professionals and carry out periodic audits to track
employees and emphasizes the importance of ethical
compliance with our policies. We have a system
behaviour. In this section, we describe the channels
in place for tracking action items from audits to
we use to promote ethics and integrity and the
ensure that business processes are quickly updated
systems we have in place to embed ethical behaviour
when required. We also offer specific training on
and manage compliance risks.
interactions with healthcare professionals as part
CODE OF BUSINESS CONDUCT of our Legal and Ethics Resource Network (LERN)
training program.
Our Code of Business Conduct is the foundation for
ethical conduct at Abbott. Every year, we require every Our commitment to ethical interactions with
Abbott employee to read the code and certify that healthcare professionals, patients, and consumers
he or she adheres to it. The code explains Abbott’s includes the obligation to communicate responsibly
values and that it is every employee’s responsibility about our products and services and the alternatives
to live them every day. The expectations it sets out that exist.
include employees holding themselves to the highest
ethical standards, keeping a watchful eye on our WHISTLEBLOWING POLICY - “SPEAK UP”
activities, reporting concerns in good faith, and always Our Code of Business Conduct emphasizes our
operating with honesty, fairness and integrity. The employees’ responsibility to report concerns. This

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requires us to create an environment where they can LEGAL & ETHICS RESOURCE NETWORK – “LERN”
do so in good faith, without fear of retaliation. The Abbott’s employees participate in an online LERN
code outlines Abbott’s responsibilities for handling training program, which educates them on all aspects
employee grievances and complaints in an ethical way of the code and provides practical guidance on how to
and strictly forbids any retaliation against any person recognise and respond to legal and ethical issues. The
who raises a complaint. OEC assigns LERN courses to each full-time and part-
time Abbott employee, based on his or her role and
We have clearly defined systems and processes for
responsibilities and the specific training that he or she
asking questions and reporting suspected or actual
requires. The courses assigned to each employee are
violations of our code, policies or procedures. These
reviewed twice each year.
include our ‘Speak Up’ tool, which allows employees
and external parties to raise concerns of potential The LERN curriculum includes certifications
misconduct in a manner that is confidential and covering the Code of Business Conduct and Conflicts
(where permitted) anonymous, either by email, by of Interest, with a key focus on interactions with
telephone or through a website. healthcare professionals. All Abbott employees,
full-time and part-time, review and sign these
Abbott proposes multiple avenues for its employees to
certifications every year. It also forms part of our
“Speak Up”. Employees who wish to learn more about
ethics and compliance training for new employees.
our program can either visit our website or call on
the designated numbers. In order to clear any further
doubts about the right choices, actions or potential
violations, employees are also encouraged to ask
their respective managers or the Office of Ethics and
Compliance.

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

CORPORATE
GOVERNANCE

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STRUCTURE OF THE BOARD The policy of materiality specifies which transactions

During the year, election of Directors was held as per are considered as significant or material and are
the requirements of the Companies Act, 2017. Profiles to be presented to the Board for their approval or
of the elected directors are disclosed on page 84. The ratification.
Board consists of two executive and five non-executive
directors. Amongst the non-executive directors, Certain tasks are also delegated by the Board of
there are three independent directors. The Board Directors to its Committees in line with the approved
also consists of two female directors. Names of all the Terms of References. The Chief Executive Officer
directors are disclosed on page 6. together with the senior management carries out the
day-to-day operational matters.
INDEPENDENT DIRECTORS
ROLE OF CHAIRMAN
As disclosed above, there are three independent
directors on the Board, all of whom meet the The Chairman of the Board has the responsibility to
criteria for independence as required under S.166 of lead the Board and ensure its effective functioning and
Companies Act, 2017. continuous development. The Chairman represents
the non-executive directors of the Board and is
BOARD’S POLICY ON DIVERSITY entrusted with the overall supervision and direction
of the Board’s proceedings, and has the power to set
The Board of Directors of Abbott acknowledges
the agenda, give directions and sign the minutes of the
diversity and ensures that employment decisions
Board meetings.
are based on business needs, skills, experience and
relative work performance. Discrimination of any type
Role of Chairman of the Board is to:
is strictly prohibited in our Code of Business Conduct
and we strive to provide equal opportunities to all • Ensure that the Board is operating effectively, and
irrespective of gender, religion or ethnicity. This is also all matters relevant to the effective functioning of
evident by the representation of two female directors the Company are placed on the agenda of Board
on the Board (29% of total directors) of Abbott since meetings;
August 2016, long before the Code of Corporate • Conduct the Board meetings including fixing the
Governance required female representation on the agenda; and
Board. • Ensure that all the Directors are enabled and
encouraged to fully participate in the deliberations
and decisions of the Board.

ROLE OF CHIEF EXECUTIVE

The Chief Executive is the senior-most executive
on the Board and is primarily responsible for the
management of the Company and its procedures in
financial and other matters, subject to the oversight
and directions of the Board, in accordance with the
Companies Act, 2017.

The responsibilities include implementation of

strategies and policies approved by the Board,
making appropriate arrangements to ensure that
all the resources are properly safeguarded and are
DECISIONS TAKEN BY THE BOARD used economically, efficiently and effectively and in
As per requirements of the Companies Act, 2017 and accordance with all statutory obligations.
the Listed Companies (Code of Corporate Governance)
Regulations, 2019, board meetings of the Company are EVALUATION OF THE PERFORMANCE OF THE
held on a quarterly basis where all matters that are BOARD BY AN EXTERNAL CONSULTANT
considered significant or material are approved. In The Board of Directors act as governing trustees of the
cases where urgent approvals are required, these are Company on behalf of the shareholders while carrying
approved through circular resolutions, duly signed by out the Company’s mission and goals.
each director.
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ABBOTT PAKISTAN 2020 ANNUAL REPORT

As per the requirements of Listed Companies (Code The CEO provides an overview of the Company’s
of Corporate Governance) Regulations, 2019, the performance to the Board and addresses any specific
Board of Directors are required to put in place an questions by the Board members.
effective mechanism for annual evaluation of its own
performance, its members, and of its committees. The The performance of the CEO is assessed through the
Company, during the year, appointed Pakistan Institute evaluation system set by Abbott Pakistan which is
of Corporate Governance (PICG) to carry out the based on both qualitative and quantitative objectives.
evaluation. These objectives include financial performance,
business processes improvement, business excellence,
Following major criteria was set out by PICG to compliance, sustainability, and people management. In
evaluate the performance of the Board of Directors, addition, evaluation of the performance of the CEO is
along with its committees and its members including also carried out by PICG.
the Chairman:
POLICY FOR REMUNERATION OF NON-EXECUTIVE
a. Composition of the Board of Directors and its DIRECTORS
committees and whether their size and structure
In line with the requirements of Listed Companies
contain sufficient range of expertise to make it an
(Code of Corporate Governance) Regulations, 2019
effective governing body;
and the Articles of Association of the Company, the
b. Review of the strategic plans and business risks, policy for remuneration of non-executive directors
monitoring Company’s performance against the has been approved by the Board of Directors. Non-
planned objectives and advise the management on Executive Directors are only entitled to meeting fees
strategic initiatives; together with travelling and lodging costs borne by the
Company.
c. Compliance with the legislative system in
which Abbott Pakistan operates, particularly the
PRESENCE OF EXECUTIVE DIRECTORS ON OTHER
Companies Act, 2017, Listed Companies (Code of
Corporate Governance) Regulations, 2019, and the BOARDS AND POLICY ON FEE RETENTION
Memorandum and Articles of Association of the The Executive Directors of Abbott Pakistan are not
Company; currently serving as non-executive directors of any
other company and hence no fee is earned against
d. Ensuring the required quorum of Board meeting
attendance of Board meetings.
is available, in order to have detailed deliberation
and quality decisions on matters of significance;
DIRECTORS’ TRAINING PROGRAM
e. Ensuring effective communication between the As per the requirements of the Listed Companies
Board and its stakeholders which include auditors, (Code of Corporate Governance) Regulations, 2019,
management, business heads, etc.; it is encouraged that at least half of the Directors on
f. Establishing adequate internal control system in the Board are trained by June 30th, 2020 from SECP
the Company and its regular assessment through approved institutions. Further, a newly appointed
self-assessment mechanism and internal audit director on the Board may acquire, the directors
activities; and training program certification within a period of one
year from the date of appointment as a director on the
g. Whether the number of Board meetings Board.
conducted during the year are sufficient and
whether they are conducted in a manner that As disclosed in the statement of compliance, three out
encourages open communication and meaningful of our seven Directors have either obtained training
participation. from SECP approved institutions or are exempt from
the training program. The newly appointed directors
EVALUATION OF THE PERFORMANCE OF THE will be trained within the timelines provided above.
CHIEF EXECUTIVE All the Directors on the Board are fully conversant
with their duties and responsibilities as directors of
The Chief Executive Officer (CEO), being part of corporate bodies.
the Board, is present in every meeting of the Board.

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STAKEHOLDERS’ ENGAGEMENT POLICY AND provided with the required information from time to
PROCESS time unless prohibited to be disclosed by law.
The Board of Directors of Abbott believes in having an
open communication with its stakeholders and During the year, the Company conducted a Corporate
ensuring that all information is disclosed to promote Briefing Session in which shareholders and
transparency and visibility. We have developed a analysts were apprised of operational and financial
stakeholder engagement process that drives our performance for the financial years 2019 and 2020.
engagement strategies. Through our engagement,
we aim to stay well informed of the major issues and The frequency of engagements is based on business
concerns of all our stakeholders. needs and corporate requirements as specified by the
Listed Companies (Code of Corporate Governance)
Shareholders have the opportunity to ask questions Regulations, 2019 or as contracted, under defined
at the AGM or can also send questions via email on procedures. Information regarding the types of
the investor relations email address. Similarly, other stakeholders, modes of engagement and their related
stakeholders which include our customers, suppliers, frequency is presented below:
banks, employees, or government authorities are

GOVERNMENT &
SHAREHOLDERS/INVESTORS REGULATORY AUTHORITY
• Annual General Meetings • Trade associations / organisations
• Corporate Briefing Sessions • Meetings with policy makers
• Annual Reports • Participation in different surveys
• Quarterly Financial Statements through forums such as Pharma
• Directors’ Report Bureau OICCI, ABC etc.
• Investors’ section on website On-going process, as and when required.
Quarterly, semi-annually and annually.

CUSTOMERS & SUPPLIERS

LOCAL COMMUNITY
• Clinical Trials • CSR activities
• Strategic Partnerships • Patient Care Program
• Surveys • Nutri Camps
• Focus Groups • Clinical Trials
• Field Services Representatives
On-going process.
On-going process, as and when required.
EMPLOYEES
• Business and functional townhall meetings
• Employee Networks
• Learning Gigs
• Abbott World Today (daily email)
• Employee Volunteering – CSR activities
On-going process, as and when required.
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ABBOTT PAKISTAN 2020 ANNUAL REPORT

FORMAL ORIENTATION COURSES OF DIRECTORS SECURITY CLEARANCE OF FOREIGN DIRECTORS

The Company arranged a workshop on Companies Abbott Pakistan does not have any foreign directors on
Act, 2017 and Listed Companies (Code of Corporate its Board.
Governance) Regulations, 2019 for the Directors
through its legal counsel. MATERIAL INTERESTS OF BOARD MEMBERS AND
CONFLICT OF INTEREST
COMPLIANCE WITH THE LISTED COMPANIES Directors are required to disclose, at the time of
(CODE OF CORPORATE GOVERNANCE) appointment and on an annual basis, the directorships
REGULATIONS, 2019 or memberships they hold in other corporate bodies.
Abbott Pakistan is fully compliant with the This is in pursuance with section 205 of the Companies
requirements of Listed Companies (Code of Corporate Act, 2017, which also requires Directors to disclose all
Governance) Regulations, 2019. Please refer the review material interests. We use this information to help us
report on the statement of compliance contained in maintain an updated list of related parties. Any conflict
Listed Companies (Code of Corporate Governance) of interest relating to members of Board of Directors
Regulations, 2019, issued by the external auditors of is managed as per provisions of Companies Act, 2017
the Company. and rules and regulations of SECP and Pakistan Stock
Exchange.
RELATED PARTY TRANSACTIONS
Details of related party transactions are disclosed by SHARES HELD BY SPONSORS, DIRECTORS AND
the Company in note 33 of the financial statements. EXECUTIVES
All related party transactions are carried on an A detailed breakdown of the number of shares held
arm’s length basis and subject to review and is presented in the pattern of shareholding disclosed
recommendation by the Audit Committee for approval on page 190 of this annual report. Our share capital
of the Board. comprises only of ordinary shares. No other class of
shares has been issued by the Company.
DATE OF AUTHORISATION OF THE FINANCIAL
STATEMENTS POLICY FOR SAFEGUARDING OF RECORDS
The financial statements were authorised by the Board Abbott effectively ensures the safety of its records.
of Directors for issue on 26th February, 2021. Physical records of documents, files etc. are
maintained in designated store rooms at our Landhi
BOARD MEETINGS HELD OUTSIDE PAKISTAN and Korangi facilities. Access to these rooms is only
No Board meetings were held outside Pakistan during granted to specific individuals who are responsible for
the year. the safekeeping and maintenance of records. Proper

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

logs are maintained in respect of records which are STEPS TO ENCOURAGE MINORITY
issued to different employees. SHAREHOLDERS TO ATTEND GENERAL MEETINGS
Annual Report of the Company containing the notice
All records are retained as long as they are required for AGM is sent out to minority shareholders in
to meet legal, administrative, operational, and other the same manner as the majority shareholders. To
requirements of the Company. encourage minority shareholders to attend general
meetings and participate in the affairs of the Company,
BUSINESS CONTINUITY PLANNING proxy form is also attached along with the notices of
Abbott Pakistan puts significant efforts in ensuring general meetings to ensure their representation and
uninterrupted business operations. Business participation in the general meetings, even if they are
Continuity Plans (BCP) are in place to ensure that unable to attend, personally.
any adverse or unforeseen events cause minimum
disruption. The plan is reviewed by the Board The Company ensures that there is a dedicated
periodically. timeslot for questions and answers session in its
general meetings so that the minority shareholders,
DISASTER RECOVERY PLANNING in particular, can engage with the Board of Directors,
Abbott Pakistan has adopted an effective disaster and raise any queries that they may have with regards
recovery plan to minimise and contain any disaster, to the Company’s performance. This encourages a
to provide a rapid and smooth transition to a backup healthy attendance from the minority shareholders in
mode of operations and expeditiously recover the the Company’s meetings.
normal operations in the data center. Such planning
ensures that essential/critical functions are supported INVESTORS’ SECTION ON WEBSITE
with minimum disruption following a disaster. To ensure transparency and ease of access to
Company’s latest financial information for existing
PRESENCE OF CHAIRMAN OF AUDIT COMMITTEE and potential investors, the “Investors’ Information”
AT THE AGM section on the Company’s website (https://www.
pk.abbott/investor/investor-information.html) is
Along with the other directors, the Chairman of the
updated from time to time with the latest financial
Audit Committee – Mr. Ehsan Ali Malik was also
information which could impact decision making of
present in the Annual General Meeting to respond to
existing and potential investors.
any queries, from the shareholders.

ISSUES RAISED AT LAST AGM

Besides the ordinary business of dividend
approval, election of directors and appointment of
auditors, general clarifications were requested by
the shareholders about the Company’s financial
performance and published financial statements
during the 71st Annual General Meeting held on
May 28th, 2020. Apart from these matters, no
significant issues were raised.

CORPORATE BRIEFING SESSION

In pursuance of the requirements laid out by the
Pakistan Stock Exchange, the Company conducted a
Corporate Briefing Session on 22nd December 2020.
The session was attended by various analysts and GOVERNANCE PRACTICES EXCEEDING LEGAL
shareholders. The Chief Financial Officer of the REQUIREMENTS
Company gave a detailed presentation on the financial Abbott’s commitment towards excellence inculcates
performance of the Company. This was followed by a culture where compliance with the prevailing laws
a Q&A session in which our Chief Executive Officer, and regulations is the bare minimum standard. Abbott
Syed Anis Ahmed answered the queries of the actively strives to adopt the best practices in industry
attendees. and governance in order to ensure that it remains the
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ABBOTT PAKISTAN 2020 ANNUAL REPORT

best-in-class. Our internal controls are focused on INVESTORS GRIEVANCE POLICY

ensuring that the Company does not suffer any damage The Company has a dedicated section on its website
to its repute or suffers any financial loss. where shareholders can register their grievances.
An email address has also been provided on the
Abbott in the past has proactively complied with many website whereby shareholders can contact the
additional legal requirements, which were not relevant person in the Company. All queries including
mandatory at that time. Some of the examples are: grievances received are resolved in line with the legal
requirements.
1. The Board of Directors of the Company consists
of two female directors since August 2016
PREPARATION OF FINANCIAL STATEMENTS
one of which is an independent director. This
requirement was not mandatory in the past and Management is responsible for the preparation and fair
has been included in the Listed Companies (Code presentation of the financial statements in accordance
of Corporate Governance) Regulations, 2019, with the accounting and reporting standards as
which requires each listed company to have at applicable in Pakistan and the requirements of
least one female director. Companies Act, 2017 (XIX of 2017) and for such
internal controls as management determines necessary
2. The requirement for the Chief Executive Officer to enable the preparation of financial statements that
and the Chairman to be separate individuals are free from material misstatement, whether due to
was introduced through Code of Corporate fraud or error.
Governance, 2012 whereas the Chief Executive
Officer and Chairman of Abbott Pakistan have In preparing the financial statements, management
been separate persons since 20th August 2004. is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable,
3. The Company has two independent directors matters related to going concern and using the going
since 16th April 2014, whereas the Code of concern basis of accounting unless management
Corporate Governance, 2012 required the either intends to liquidate the Company or to cease
Company to have at least one independent operations, or has no realistic alternative but to do so.
director. Board of Directors are responsible for overseeing the
Company’s financial reporting process.
IT GOVERNANCE POLICY
HUMAN RESOURCE MANAGEMENT POLICIES
Abbott Pakistan has put into place governance
arrangements to align IT-related decisions and actions Human resource management policies, including
with the organisation’s strategic and operational succession plan are disclosed on page 60.
priorities.

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

SOCIAL AND ENVIRONMENTAL RESPONSIBILITY We are pleased to report that our swift response to the
POLICY situation in form of implementing work from home
Our social and environmental responsibility policy is and split-shifts arrangements contributed significantly
disclosed on page 58. towards the safety of our employees whilst also
ensuring continuity of our operations and products’
OWNERSHIP STRUCTURE availability.
Beneficial ownership of the Company and the flow
Your Company made all possible efforts to ensure that
chart is disclosed on page 25.
safe practices are put to place in such a way that while
remaining strictly within the WHO and federal and
ROLE OF EXTERNAL SEARCH CONSULTANCY
provincial guidelines, employees are provided with
During the year, election of Directors was held as per support so they can continue to operate and deliver at
the requirements of the Companies Act, 2017. Profiles optimum.
of the elected directors are disclosed on page 84. No
search or consultancy firm was involved. Following the relaxation of lockdown restrictions,
the economic activities are expected to gain some
CHAIRMAN’S SIGNIFICANT COMMITMENTS momentum, however, the recovery will be gradual
Mr. Munir Ahmed Shaikh was re-appointed as the and measured. The Company has begun to integrate
chairman of the Company for a term of 3 years its employees back into commercial offices through
commencing on May 28th, 2020. The details of his split-shift arrangements, whereby employees returned
engagements in other companies are given in his to office on a 50/50 alternating schedule, with half
profile. He does not have any significant commitment of employees working on site for a full week and the
other than the ones mentioned in his profile. other half coming on site the next week.

PANDEMIC RECOVERY PLAN The management of the Company is monitoring the

Fighting the coronavirus pandemic has become situation vigilantly and is taking all the necessary
an evolving battle, one that demands to be fought measures to ensure employees’ safety whilst also
on multiple fronts: providing supplies to frontline ensuring business continuity.
workers, supporting families and communities affected
by the virus, and the key to better understanding this
disease — advancing access to testing.

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

BUSINESS MODEL – INTEGRATED

REPORTING FRAMEWORK
Inputs
Abbott’s key resources are its sources of materials (APIs), its manufacturing technologies, its people, its financial
capital, its goodwill and its relationship with its stakeholders, that create value in the long term.

Inputs Sources of Differentiation Relating Capital

APIs and other materials A broad portfolio of healthcare products and solutions. Manufactured
Latest technological advancements utilised in facilities
2 Manufacturing facilities Manufactured
ensure product quality.
1,464 Employees Our people-centered culture enable our employees to thrive. Human
Technical know-how and Our production processes and the related know-how enables Intellectual &
production processes us to differentiate on product quality. Manufactured
Equity financed capital Reduced finance costs related to external financing.
Financial
structure
Our approach to Relations with the wider stakeholders help to ensure that we Social &
sustainability operate sustainably. Relationship

Business Activities
Our Processes
Abbott is principally engaged in the manufacture, import and marketing of branded generic
pharmaceutical, nutritional, diagnostic, diabetes care, molecular devices, hospital and
consumer products.

Business Segments
Abbott’s patient-centric products and solutions address important health needs of people
across various segments:
> Established Pharmaceuticals > Nutrition > Diagnostics > Diabetes Care

Channels
Abbott uses a multi-channel approach, depending on the type of product being sold. Majority
of the sales are executed through third-party distributors.

Customer Relationships
Abbott maintains customer relationships through its in-house sales teams and customer
support. Abbott also ensures it proactively deals with customer complaints as and when they
arise.

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

• Adult Nutritional
Branded generic Supplements
medicines in multiple EPD ANI • Pediatric Nutritional
therapeutic areas. Supplements
• Infant Milk Formulas

Outputs

• Immunoassays
Blood glucose monitoring • Clinical Chemistry
devices ADC ADD • Hematology
• Informatics

Outcomes

COMMUNITIES
SHAREHOLDERS Conducted various CSR initiatives REGULATORS
Return on Equity (please refer page 52 and 56 for
29.1% details).
Direct and Indirect
taxes paid (PKR)
Dividend payout ratio
86% 4.61 BN

EMPLOYEES CUSTOMERS
Salaries paid (PKR) > Our branded generic medicines and nutritional
4.32 BN supplements build and maintain health at every
Enrollment in various training stage of life.
and development programs > Our diagnostic solutions provide the
information to guide effective treatment
decisions.
> Our diabetes care products help in minimising
the pain and inconvenience of testing.
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ABBOTT PAKISTAN 2020 ANNUAL REPORT

INTEGRATED REPORTING
FRAMEWORK
An integrated report is a concise communication about Integrated Report is to be presented by those charged
how an organisation’s strategy, governance, performance with governance acknowledging the integrity and
and prospects, in the context of its external environment, compliance with the framework, including the following
leads to the creation of value over the short, medium content:
and long-term. It is to be prepared in accordance with
the Integrated Reporting Framework (the framework) • Organisational overview and external environment
issued by the International Integrated Reporting Council • Governance
(IIRC). • Business model
The integrated reporting framework follows a principle- • Risks and opportunities
based approach, including the following guiding • Strategy and resource allocation
principles: • Performance
• Strategic focus and future orientation • Outlook
• Connectivity of information • Basis of preparation and presentation
• Stakeholder relationships The Annual Report of the Company for 2020 is in
• Materiality compliance with the International Integrated Reporting
• Conciseness Framework issued by the International Integrated
Reporting Council. All the aforementioned content has
• Reliability and completeness
been disclosed under various sections of this Report.
• Consistency and comparability

UNRESERVED STATEMENT OF
COMPLIANCE TO INTERNATIONAL
FINANCIAL REPORTING STANDARDS
Abbott Pakistan prepares its financial statements in In addition, as mentioned in note 2.1.4 to the financial
accordance with IFRS issued by IASB as adopted and statements, certain recent amendments and standards,
notified by Securities and Exchange Commission of will be effective on their respective dates as notified by
Pakistan (SECP) under section 225 of the Companies SECP under the Act.
Act, 2017, in addition to the local requirements of the
Act under the Fourth Schedule. There are certain recent
standards / amendments which have not been notified
by SECP under the Companies Act, 2017, which are
mentioned as follows:

• IFRS 1 - First time adoption of IFRSs

• IFRS 17 - Insurance Contracts

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

AUDIT COMMITTEE REPORT

The members of the Audit Committee are pleased to INTERNAL AUDIT AND RISK MANAGEMENT
present their report to the shareholders for the year
ended December 31, 2020. We would like to make the The Board of Directors have set up effective internal
following submissions: financial controls across all functions. The independent
Internal Audit function of the Company regularly
COMPOSITION OF THE COMMITTEE monitors the implementation of financial controls,
whereas the Audit Committee reviews the effectiveness
The Audit Committee comprises of three members all of of the internal control framework. The Audit Committee
whom are either non-executive or independent directors. would further like to state that:
The Chairman of the Committee is an independent
director who is a fellow of the Institute of Chartered • The Company has developed a sound mechanism
Accountants in England and Wales and is alumni of the for identification of risks and devising appropriate
Wharton and Harvard Business Schools. mitigation measures which are regularly monitored
and implemented by the management across all
EVALUATION OF THE COMMITTEE major functions of the Company.
Evaluation of the audit committee’s performance • The Audit Committee also undertook an overall
was carried out during the year by Pakistan Institute review of the business risks to ensure that the
of Corporate Governance (PICG). Each member of management maintained a sound system of risk
the committee carried out the self-evaluation of the identification. The summary of the risks together
Committee as part of this exercise. with the mitigation plan was presented to the Board
for its review.
COMPLIANCE WITH THE LISTED COMPANIES
(CODE OF CORPORATE GOVERNANCE) • The Internal Audit department carries out its audits
REGULATIONS, 2019 (REGULATIONS) in accordance with the approved audit plan which is
presented annually to the Audit Committee.
The Company has complied with the mandatory
requirements specified under the Regulations. The • Internal Audit function plays a vital role in
Committee would like to further state that: improving the overall control environment. It also
acts as an advisor to other functions for streamlining
• The Company has issued a Statement of Compliance processes and ensuring implementation of the
with the Regulations which has also been reviewed Company’s policies.
and certified by the external auditors of the
Company. • The Internal Audit department has direct access
to the Chairman of the Audit Committee and the
• The Company’s Code of Conduct has been Committee has ensured staffing of personnel with
disseminated across the organisation. The Company sufficient internal audit acumen. The performance
ensures that every year compliance refresher appraisal of the Chief Internal Auditor is also carried
sessions are arranged throughout the organisation out directly by the Audit Committee.
highlighting the Company’s Code of Conduct.
• The Chief Internal Auditor has the required
• The Committee has reviewed the Annual Report qualifications as prescribed under the Regulations.
and concluded that it is fair, balanced and
understandable. The Annual Report discloses and EXTERNAL AUDIT
provides information to shareholders to assess
the Company’s position and performance and its • The external auditors were allowed direct access
business model and strategy. Similarly, it has also to the Audit Committee and also met the Audit
reviewed all related party transactions carried out Committee once a year without the presence of the
during the year, which were subsequently approved management.
by the Board.
• The audit committee facilitates coordination
• The Audit Committee also reviewed preliminary between the internal and external audit of the
announcements of results prior to publication. Company to ensure they contribute effectively
towards the achievement of company’s objectives
and to promote a transparent financial reporting
mechanism.

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

• All internal audit reports were made available for The Audit Committee believes that it has carried out its
review to the external auditors during the year. responsibilities to the full, in accordance with Terms of
Reference approved by the Board and as stipulated under
• The external auditors M/s EY Ford Rhodes, the Regulations.
Chartered Accountants have been engaged as the
external auditors of the Company since 2014 and
have completed their audit assignment and review of
the Statement of Compliance with the Regulations. On behalf of the Audit Committee
They shall retire on the conclusion of the 72nd
Annual General Meeting.

• Being eligible for reappointment as auditors of the

Company, the Audit Committee has recommended
the appointment of M/s EY Ford Rhodes, Chartered
Accountants as external auditors of the Company for
the year ending December 31, 2021.
Ehsan Ali Malik
• The Company also obtains taxation related services
from M/s EY Ford Rhodes, Chartered Accountants. Chairman - Audit Committee
The firm has sound policies and procedures to
February 22, 2021
ensure compliance of independence which includes
separate engagement partners and separate teams
for both audit and taxation work.

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

DIRECTORS' PROFILE

Munir Shaikh is currently Chairman of the Board of Directors of Abbott Laboratories

(Pakistan) Limited and also Chairman of the Board of Directors of Abbott India Ltd.
and Sunshine Holdings Ltd. Sri Lanka. All of these companies are listed with their
shares quoted on Pakistan, Mumbai and Colombo Stock Exchanges respectively.

Mr. Shaikh has held several management positions with Abbott in Asia, Middle East
and the United States. He was the Managing Director of Abbott Pakistan, Regional
Manager, Caribbean based in Puerto Rico, Director of Business Development based
in Chicago, Vice President, Middle East and Africa based in Dubai and Vice President
Pacific, Asia Africa based in Singapore. Mr. Shaikh is a Fellow of the Institute of
Chartered Accountants in England and Wales.
MUNIR
MUNIRA. A.SHAIKH
SHAIKH
Chairman
Chairman

Syed Anis Ahmed is the Chief Executive Officer of Abbott Laboratories (Pakistan)
Limited. Previously, he has served as the Chief Financial Officer of Abbott Pakistan.
He has over 20 years of experience in senior commercial and finance roles where he
has provided his guidance and leadership across different functions.

Anis also served as the Chairman of Pharma Bureau and the Senior Vice President for
American Business Council. He also remained a member of the Executive Committee
of Overseas Investors’ Chamber of Commerce & Industry (OICCI) where he played
a major role in highlighting different issues faced by the Pharmaceutical industry.
He was previously associated with A.F. Ferguson & Co. and Philips Pakistan. Anis is a
Fellow member of the Institute of Chartered Accountants of Pakistan.
SYED ANIS AHMED
Chief Executive Officer

Ehsan Ali Malik is part of the Board of Directors of Abbott Laboratories (Pakistan)
Limited. He is currently serving as Director on Board of Standard Chartered Bank
(Pakistan) Limited, National Foods Limited and Gul Ahmed Textile Mills Limited.
He is also serving as the Chief Executive of Pakistan Business Council. Previously he
was the Chief Executive Officer/Director of Unilever Pakistan Limited. He was also a
Director of Unilever Pakistan Foods Limited. Further, he had also served as the Chief
Executive/Director of Lever Chemical (Private) Limited, Lever Associated Pakistan
Trust (Private) Limited, Unilever Birds Eye Foods Pakistan (Private) Limited and
Sadiq (Private) Limited. His earlier international appointments covered Unilever’s
regional business in Sri Lanka, Egypt, Lebanon, Jordan, Syria and Sudan as well
as Unilever’s Head Office in UK. Ehsan is a Fellow of the Institute of Chartered
EHSAN ALI MALIK Accountants in England and Wales and alumni of the Wharton and Harvard Business
Director Schools.

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

Ayla is a leading mergers and acquisitions, advisory and governance expert with
over two decades of rich experience. She runs the advisory practice of Khalid Majid
Rehman Chartered Accountants as Managing Director, Financial Advisory Services.
She is currently serving as Director on the Board of Siemens Pakistan, Mari Petroleum
Company Limited, Central Power Procurement Authority and Government Holdings
(Private) Limited. She is also a global board member of the Association of Chartered
Certified Accountants, UK, an Advisory Board member of Young Global leaders and
member of the Global Future Council on Energy Transition of the World Economic
Forum. Ayla holds a MBA degree from LUMS, LLB Honours from University of
London and ACCA. She has also attended executive courses at the Harvard Kennedy
School, Oxford University, and Nanyang Technological University of Singapore.
AYLA MAJID
Director

Mohsin has been serving as a President and CEO of Habib Metropolitan Bank since
2018. He is a seasoned corporate banker with over 25 years of international banking
experience in Asia, Middle East and Levant regions. He has worked in Pakistan, Dubai,
Hong Kong and Singapore. He is currently serving as a Director on the Board of I-Care
Pakistan and is the vice president of Swiss Business Council. Previously, he has served
as the CEO of Standard Chartered Bank in Pakistan and the UAE, Country Head &
Managing Director of Barclay’s Bank Pakistan, as a Director at CDC, Kidney Center,
and as a trustee in the IBA Endowment Fund. Earlier in his career, he served in various
corporate and Islamic banking regional roles. Mohsin is an MBA from Institute of
Business Administration, Karachi.

MOHSIN ALI NATHANI

Director
Rana Anjum Latif is part of the Board of Directors of Abbott Laboratories (Pakistan)
Limited. He is working as Regional Director Operations & Supply Chain, Middle East,
Africa, Turkey and Pakistan for Abbott Laboratories based in Dubai. Previously, he was
Director Operations at Abbott Pakistan responsible for manufacturing, engineering,
EHS, Operational Excellence, and Supply Chain functions at Karachi Plant. He has a
professional career that spans over 24 years in Pharmaceuticals Operations & Supply
Chain and has an established track record of success throughout his professional
career, he has laid down the strong foundation of supply chain integration (Class A)
and Operational Excellence in Plant Operations. He joined Abbott Laboratories in
1995 and held various leadership roles in supply chain and manufacturing operations
at Abbott Pakistan, lead various projects including acquisition of Knoll, Solvay
manufacturing & supply chain integration with Abbott Pakistan. He was a member of
MUHAMMAD ANJUM the trade and commerce subcommittee of the American Business council.
LATIF RANA
Director

Seema Khan is part of the Board of Directors of Abbott Laboratories (Pakistan)

Limited. Seema holds a Bachelors in Pharmacy degree from Karachi University. She
has extensive experience over 30 years in pharmaceutical sector, directing and leading
multidisciplinary teams. Currently, she is working as a lead of Regulatory Affairs
and is part of Executive Management at Abbott Laboratories (Pakistan) Limited.
She is an expert on Regulatory Affairs with extensive experience in Pharmaceutical
Industry which includes dealing with government at the highest level for resolution
of regulatory and policy issues. Seema represents Abbott and provide support
on technical matters for Pharma Bureau. She is also present on the Intellectual
Property Rights (IPR) sub-committee of OICCI and Legal & Government relations
subcommittee of American Business Council.
SEEMA KHAN
Director

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

BRIEF TERMS OF REFERENCE OF BOARD COMMITTEES

AUDIT COMMITTEE Chief Executive Officer (CEO), Chief Financial Officer
The Audit Committee comprises of three members, all (CFO), Company Secretary, Head of Internal Audit &
of whom are Non-Executive Directors. The committee is Compliance, and any other key officers of the Company
chaired by an independent director. The Audit Committee which shall normally be the direct reports of the CEO
meets at least four times a year. The Company Secretary and Heads of Staff Functions.
acts as the secretary to the Audit Committee. The brief • Ensure remuneration approach is consistent with
terms of reference of the Audit Committee are as follows: performance assessment and compensation framework
• Review of annual and interim financial statements of of the Company.
the Company, prior to their approval by the Board of
Directors; BANKING COMMITTEE
• Review of preliminary announcements of results prior The Committee comprises of an Independent Director,
to external communication and publication; one Executive Director and Chief Executive Officer. The
• Facilitating the external audit and discussion with Committee is chaired by an Independent Director. The
external auditors of major observations arising from Banking Committee is conferred with authorities related
interim and final audits and any matter that the auditors to banking management, including issuing instructions
may wish to highlight (in the absence of management, to the Company’s bankers with regards to the Company’s
where necessary); banking transactions and business, as it may consider
• Review of management letter issued by the external appropriate. The brief terms of reference of the Banking
auditors and management’s response thereto; Committee are as follows:
• Review of scope and extent of internal audit, audit plan,
reporting framework and procedures and ensuring that • Approve any changes in banking signatory matrix;
the internal audit function has adequate resources and • Approve increase, decrease and cancellation of existing
is appropriately placed within the Company; facility with a particular bank;
• Recommend to the Board of Directors the appointment • Sign / approve agreements and documents pertaining
of external auditors, their removal, audit fees, the with the acquisition of funded and non-funded facility
provision of any service permissible to be rendered to with the bank(s); and
the Company by the external auditors in addition to the • Execute service execution agreement with bank(s).
audit of its financial statements;
• Determination of appropriate measures to safeguard the RISK MANAGEMENT COMMITTEE
Company’s assets; and
The Risk Management Committee comprises of an
• Consideration of any other issue or matter as may be
Independent Director, one Non-executive Director,
assigned to the Committee by the Board of Directors.
one Executive Director and Chief Executive Officer.
The Committee is chaired by an Independent Director.
HUMAN RESOURCE AND REMUNERATION
Director Regulatory affairs acts as the secretary to the risk
COMMITTEE
management committee. The brief terms of reference of
The Human Resource and Remuneration Committee the risk management committee are as follows:
comprises of an Independent Director, one Non-executive • Approve and review the risk management framework
Director and Chief Executive Officer. The Committee is and policies;
chaired by an Independent Director. Director Human • Assess the adequacy of the systems and risk readiness of
Resource acts as the secretary to the Human Resource and the company;
remuneration committee. The terms of reference of the
• Evaluate risk exposure and tolerance of the company;
Committee as framed by the Board are as follows:
• Review risk identified by the management and measures
• Adopt the Company’s corporate HR and remuneration suggested for mitigation;
policies as applicable; while ensuring that these remain
within the framework of country laws and regulations. • Evaluate risk management controls devised by
management; and
• Make recommendations to the Board regarding
• Assist the board in formulation of risk management
selection, evaluation, compensation (including
policies.
retirement benefits) and succession planning of the
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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

SHARE TRANSFER COMMITTEE NOMINATION COMMITTEE

The Committee comprises of Chief Executive Officer, The Committee comprises of Chief Executive Officer, two
one Executive Director and one Non-Executive Director. Independent Directors and a Non-Executive Director. The
The Company Secretary acts as the secretary to the Committee is chaired by the Non-Executive Director. The
Committee. The Committee approves registration, transfer Nomination Committee is responsible for considering
and transmission of shares. Moreover, it also issues and making recommendation to the Board in respect of
and cancels share certificates including duplicate share the Board’s committee and its chairmanship. It is engaged
certificates. in regular review of the structure, size and composition
of the Board and to recommend any changes in respect
thereof.

BOARD COMMITTEES ATTENDANCE

AUDIT COMMITTEE
Name Category Meetings
Held Attended
Ehsan Ali Malik Chairman - Independent Director 4 4
Ayla Majid Member - Independent Director 4 3
Muhammad Anjum Latif Rana Member - Non Executive Director 4 3
Kamran Y. Mirza* Member - Non Executive Director 4 1
Shamim Ahmad Khan* Member - Non Executive Director 4 1
Syed Tabish Aseem By invitation - Chief Financial Officer 4 4
Fahad Rehman By invitation - Chief Internal Auditor 4 4
Humayun Altaf Secretary 4 4

HUMAN RESOURCE AND REMUNERATION COMMITTEE

Name Category Meetings
Held Attended
Mohsin Ali Nathani Chairman - Independent Director 2 2
Syed Anis Ahmed Member - Chief Executive Officer 2 2
Munir A. Shaikh Member - Non Executive Director 2 1
Asghar ul Huda Secretary / Director Human Resource 2 2

RISK MANAGEMENT COMMITTEE

Name Category Meetings
Held Attended
Ayla Majid Chairperson - Independent Director 2 1
Syed Anis Ahmed Member - Chief Executive Officer 2 2
Seema Khan Member - Executive Director 2 1
Muhammad Anjum Latif Rana Member - Non Executive Director 2 1
Kamran Y. Mirza* Member - Non Executive Director 2 1
Shamim Ahmad Khan* Ex-Chairman - Non Executive Director 2 1
Zehra Naqvi* Member - Independent Director 2 1

*Retired from the Board on the conclusion of the 71st Annual General Meeting of the Company.

87
ABBOTT PAKISTAN 2020 ANNUAL REPORT

REVIEW REPORT BY THE CHAIRMAN

The Coronavirus 2. BANKING COMMITTEE
pandemic has altered The responsibilities of the Banking Committee are
the business dynamics managing the overall relationship with the banks, credit
world-wide. It has limits, approval of authorized signatories and wise
forced companies to re- investment of surplus funds.
evaluate their strategies
and competencies 3. HUMAN RESOURCE AND REMUNERATION
in the light of ever- COMMITTEE (HR&R)
changing landscape
The HR&R Committee is responsible for reviewing the
of the operating
personnel policies, remuneration and benefits of the
environment. Your
Chief Executive Officer, Chief Financial Officer, Company
Company’s mitigation
Secretary and Chief Internal Auditor. It is also engaged
approach to such events is both tactical and strategic. I
in recommendation of Human Resource policies to the
am pleased to inform you that the timely measures taken
Board and determination of policy framework for the
by our management team helped to ensure our business
remuneration of directors in accordance with its Terms of
continuity and products’ availability.
Reference.
During the year, election of Directors was held as per the
4. NOMINATION COMMITTEE
requirements of the Companies Act, 2017. I would like to
appreciate the valuable contributions made by Mr. Kamran The Nomination Committee is responsible for considering
Y. Mirza, Mr. Shamim Ahmad Khan and Ms. Zehra Naqvi and making recommendation to the Board in respect of
during their term. I would also like to welcome the newly the Board’s committee and its chairmanship. It is engaged
elected directors on the Board. in regular review of the structure, size and composition
of the Board and to recommend any changes in respect
REVIEW OF OVERALL PERFORMANCE OF THE thereof.
BOARD
5. SHARE TRANSFER COMMITTEE
The Board comprises of Directors with diverse and
extensive experience who have performed their duties The Committee approves registration, transfer and
effectively and diligently. transmission of shares

The objective of the Board is to provide strategic direction 6. RISK MANAGEMENT COMMITTEE
to the Company and to oversee the management. The The Committee is responsible for the overall risk
Board performed its duties as required under the management of the Company, including establishment
Companies Act, 2017 and the Listed Companies (Code of and implementation of a risk management framework
Corporate Governance) Regulations, 2019 (Regulations), and reviewing the effectiveness of all controls in place to
including approval of significant policies, establishing a mitigate the identified risks.
sound system of internal controls, approving budgets and
financial results. I would like to thank all our shareholders, customers,
bankers and employees for their resilience and support
Owing to the Listed Companies (Code of Corporate during these unprecedented times. I would also like to
Governance) Regulations, 2019 which requires evaluation thank the Board members, CEO and his team for their
of the Board, the Pakistan Institute of Corporate dedication and hard-work
Governance (PICG) was appointed by the Board during
the year to carry out evaluation of the performance of the
Board, its members and its committees.

As required by the Regulations, the Board has constituted

the following committees which are operating effectively
and within the framework of the law: Munir A. Shaikh
Chairman
1. AUDIT COMMITTEE February 26th, 2021
The Audit Committee plays a key role in ensuring that
effective and efficient systems and procedures of internal
controls are in place.

88
 ‫ئ‬
‫‪ABBOTT PAKISTAN 2020 ANNUAL REPORT‬‬

‫چیئ ی ن‬
‫�رم یک رطف ےس اج��زہ‬
‫ن‬ ‫ف ق‬ ‫ن‬ ‫ق‬ ‫ن‬ ‫ن ئ‬
‫دنب�وں اک ااظتنم رک�ا‪ ،‬اعمدہے ےک اجمز � یر�وں یک وظنمری یلا اور‬
‫رک��ڈٹ یک دح ی‬‫ی‬ ‫رط�وں وک ی‬
‫دبت� رکد ی�ا ےہ۔ اس‬ ‫م اکرو�باری ی‬ ‫د�ا ی‬
‫وکرو� وا�رس یک و�اب ےن وپری ی‬
‫ا‬
‫ن‬ ‫پ ش‬ ‫ش‬ ‫ن‬
‫افلض روقم یک دادنمشناہن رسام�ی اکری رک�ا ہ ی�۔‬ ‫�ِ‬ ‫� دبےتل رےنہ واےل اکرو�باری اموحل وک ی‬ ‫کا ےہ ہک وہ ہ ی‬ ‫و�باےن پ ی‬
‫مکوں وک وبجمر ی‬
‫ئ‬ ‫ت‬ ‫ع‬
‫ن‬ ‫ن شن ی ٹ‬ ‫ن‬ ‫۔ا� وااعقت ےک‬‫رظن رےتھک وہےئ اینپ تمکحِ مل�ی�وں اور ا�لہ�ی��وں اک از رسِ ون اج��زہ یل ی‬
‫مک ی چ‬
‫(ا� آر ی �ڈ‬
‫ا� آر)‪:‬‬ ‫ر� یو� یر�‬
‫ا� ی‬
‫ر�ورس ی �ڈ‬‫‪3‬۔ ہ ی�ونم ی‬
‫م آپ یک ینپمک یک (‪ )mitigation approach‬یک رغض ےس یھب ےہ‬ ‫وجاب ی‬
‫چ ف‬ ‫ف نش ف‬ ‫ٹ ف‬ ‫ی ٹ چ ف‬ ‫ن‬
‫�‬ ‫ی‬ ‫ی‬
‫انف� آ�ر‪ ،‬ینپمک سررٹی اور ی‬ ‫� ی‬ ‫� یا� ی و‬
‫�ز�ن ا یٓ�ر‪ ،‬چ ی‬ ‫ا� آر مک ی‬ ‫یچ‬
‫ا� آر ی �ڈ‬ ‫م آپ وک �ی اتبےت وہےئ وخیش وسحمس رک راہ وہں‬ ‫ل یھب۔ ی‬ ‫اور تمکحِ یلمع ےک ی‬
‫ئ‬ ‫ٹ‬ ‫ت‬ ‫ق‬ ‫ٹ‬
‫اشم�رے اور وفادئ ےک اج��زے یک ذہم‬ ‫الوں‪ ،‬ہ‬ ‫رپس پ� ی ی‬
‫ٓڈ� ےک وحاےل ےس ی‬ ‫ارٹنلن ا ی ر‬ ‫ک ان ےس ہ�ارے اکرو�باری لسلست اور‬
‫ہک ہ�اری ااظتنیم ی� ےن قوج ب�رو� ادقاامت ی‬
‫ن‬ ‫ی ن‬ ‫ت‬
‫الوں یک افسرش رکےن ےک العوہ‬ ‫م �پ ی ی‬ ‫دار ےہ۔ �ی وبرڈ وک ا�این واسلئ ےک �بارے ی‬ ‫م دمد یلم۔‬‫� انبےن ی‬ ‫دسایب وک ی‬‫ونصماعت یک ی‬
‫ف‬ ‫ئ ی ٹ‬ ‫ف‬
‫ل �پ یال � یر�‬ ‫ر�روں ےک ہ‬
‫اشم�رے ےک ی‬ ‫ر�رسن یک رشاطئ ےک اطمقب ڈا�‬ ‫اس ےک ی‬
‫ت‬ ‫کم�پ ن�� ی ٹ‬ ‫ئ ٹ‬
‫ورک � رکےنرپ یھب امومر ےہ۔ ۔‬
‫م�ع� ی ن‬ ‫ا� ‪ 2017 ،‬یک اقتوضں ےک اطمقب‬ ‫�‬
‫�ز‬ ‫ی‬ ‫ات‬‫اسل ےک دوران ‪ ،‬ڈا� یر�رز ےک ااختن�ب‬
‫ش‬
‫م رٹسم اکرمان وایئ رمزا ‪ ،‬رٹسم �م�یم ادمح اخن اور رتحمہم ہ‬
‫ز�را وقنی‬ ‫گ۔ ی‬‫رکاےئ ی‬
‫ی ٹ‬ ‫ن‬ ‫ف‬ ‫خ‬
‫‪4‬۔�م�زدیگ مک‬
‫ا‬ ‫ن‬
‫رعت� رک�ا اچاتہ وہں۔ ی‬ ‫ت‬
‫م‬ ‫یک دمت المزم ےک دوران ان یک رگاں دقر �دامت یک ی‬
‫ن‬ ‫ئ ٹ‬ ‫وبرڈ ی‬
‫ش‬ ‫� ےک ےلسلس ی‬ ‫چ ئ ی ن ش‬ ‫ٹ‬ ‫رک� اچاتہ وہں۔‬ ‫م ونبختنم ڈا� یر�رز اک اابقتسل یھب ا‬
‫ل افسر�ات‬‫م وبرڈ ےک ی‬ ‫رم پ‬ ‫مکوں اور اس یک ی�‬‫وبرڈ یک ی ی‬
‫ی ٹ‬ ‫ن‬ ‫نی پ ش‬ ‫ئ‬
‫� رکےن یک ذہم داری ا�م�زدیگ مک یک ےہ۔�ی وبرڈ ےک‬ ‫رپ وغر رکےن اور ا� ی‬ ‫وبرڈ یک ومجمیع اکررکدیگ اک اج��زہ‬
‫ئ ت‬ ‫مشت‬
‫ڈاھےچن‪ ،‬مجح اور ��ملات (‪ )composition‬اک �بااقدعہ اج��زہ ل� ی�ی ےہ اور رضورت‬ ‫ئ ٹ‬ ‫وبرڈ ونتمع اور ی‬
‫وس رجتےب ےک احلم ڈا� یر�روں رپ لمتشم ےہ وہنجں ےن اےنپ‬
‫ث‬ ‫ف‬
‫ڑپےن رپ ی ی‬
‫دبت�وں یک افسرش رکیت ےہ۔‬ ‫ک ہ ی�۔‬‫م اور اجں اشفین ےک اسھت ادا ی‬ ‫ؤم� ادناز ی‬ ‫�راضئ ر‬
‫ن‬ ‫ف‬ ‫ٹ‬
‫ی ٹ‬ ‫ش ئ‬
‫ی‬
‫ی‬
‫ااظتنم رپ رظن رانھک ےہ۔ وبرڈ‬ ‫وبرڈ اک دصقم ینپمک وک ارٹس� ی��جک رامنہیئ �رامہ رک�ا اور‬
‫‪5‬۔�ر رٹارفسن مک‬ ‫شن‬ ‫ی ٹ‬ ‫ٹ ک ن‬ ‫کم�پ ن�� ی ٹ‬
‫ر�ل�ی����ز‪،‬‬
‫اکروپر� وگرسنن) ی و‬ ‫ا�‪2017 ،‬ء اور لس� �ڈ� م�پ��ی��ز (وکڈ آف‬ ‫ےن ی��ز‬
‫ت‬ ‫ت‬ ‫ی ٹ ش ئ‬ ‫ن‬ ‫ل� ش‬
‫د� ےہ۔‬ ‫مک ی�رز ےک ادنراج‪ ،‬یلقتنم اور � ی‬
‫رس یک وظنمری ی‬ ‫�ی‬ ‫الوں‬ ‫م امہ �پ ی ی‬‫د�‪ ،‬نج ی‬ ‫(ر� ی����ز) ےک تحت ولطمہب ذہم دار ی�اں ااجنم ی‬ ‫‪2019‬ء ی و‬
‫ق‬
‫ی ٹ‬ ‫یک وظنمری‪ ،‬دایلخ رٹنکوزل ےک یا� مکحتسم مٹسس اک ی�ام‪ ،‬ٹجب اور امیل اتنجئ یک وظنمری‬
‫مک‬ ‫‪6‬۔رکس‬ ‫ش‬
‫�الم ہ ی�۔‬
‫� ث ت‬ ‫ی ٹ‬
‫م رکس‬ ‫یک ذہم دار ےہ‪ ،‬سج ی‬ ‫�ی مک ینپمک ےک بح�ی�� ی� ومجمیع رکس‬ ‫شن‬ ‫ی ٹ‬ ‫ٹ ک ن‬
‫ف‬ ‫ر�ل�ی����ز‪2019 ،‬ء یک انب رپ‪ ،‬سج اک اقتاض‬
‫اکروپر� وگرسنن) ی و‬ ‫لس���ڈ م�پ��ی��ز (وکڈ آف‬
‫ث ن �ز‬ ‫ن‬ ‫ت‬
‫ا�ی اک‬‫� یر� ورک یک ی�اری اور اس رپ لمع درآدم اور �اذف دشہ امتم رٹنکوزل یک ا�ر ی‬ ‫ی ٹ‬ ‫ٹ‬
‫اکروپر�‬ ‫وبرڈ یک اجچن ےہ‪ ،‬انچہچن دورانِ اسل وبرڈ ےن �پااتسکن ایٹسن ی�وٹ آف‬
‫خت‬ ‫ت‬ ‫ئ ن‬ ‫ٹ‬
‫کا اجےئ۔‬ ‫اج��زہ یلا ےہ �اہک انش� رکدہ رطخات وک مک ی‬ ‫وگرسنن (یپ آیئ یس یج) وک وبرڈ‪ ،‬اس ےک اراکن اور اس یک ی ی‬
‫مکوں یک اکررکدیگ یک‬
‫ف ن ن‬ ‫ش ئ‬ ‫کا۔‬
‫ل رقمر ی‬
‫اجچن ےک ی‬
‫اصر�‪� ،‬ب ی��ک�رز اور اکرونکں اک رکش ذگار وہں وہنجں ےن‬
‫ی‬ ‫م اےنپ امتم ی�ر وہڈلرز‪،‬‬ ‫ی‬
‫ق‬ ‫ن‬ ‫غ‬
‫م االخص اور اجں‬ ‫م اینپ کچل اور اعتون وک ب�ر�رار راھک۔ ی‬ ‫دورا� ی‬
‫ی‬ ‫اس ی ر‬
‫� ومعمیل‬ ‫ق‬ ‫ث‬ ‫ٹ‬ ‫شن‬
‫ٹ‬ ‫ی‬
‫رط�‬ ‫مکاں انبیئ ہ ی� وج وم رٔ�‬
‫ذ� ی ی‬‫ر�ل�ی�� �ز� ےک اقتوضں ےک تحت وبرڈ ےن درج ی‬
‫یو‬
‫اشفین ےس اکم رکےن رپ وبرڈ ےک اراکن‪ ،‬یس ای او اور ان یک ی� اک یھب رکش ذگار وہں۔‬
‫م رےتہ وہےئ اانپرکدار ادا رک ریہ ہ ی�‪:‬‬‫ےس اقونن ےک اضہطب ی‬

‫ی ٹ‬
‫نق‬ ‫‪ 1‬۔آڈٹ مک‬
‫ی ٹ‬
‫شی خ‬ ‫ن‬ ‫م کل�ی�دی رکدار ادا رکیت ےہ ہک دایلخ رٹنکوزل ےک‬‫� انبےن ی‬ ‫مک اس �بات وک ی ی‬ ‫آڈٹ‬
‫ی‬
‫مر اے �‬ ‫ث‬
‫ؤم�ر اور اکررگ زمٹسس اور ی ج‬
‫رپوسرز وموجد ہ ی�۔‬
‫چیئ ی ن‬
‫رم‬ ‫�‬
‫ی ٹ‬ ‫بن ن‬
‫ف‬ ‫‪2‬۔� مک‬‫ی‬
‫‪�26‬روری‪2021‬ء‬
‫�ڑ ن‬ ‫ن‬ ‫ن‬ ‫ی ٹ‬ ‫ن ن‬
‫�ادی ذہم دار ی�اں ب ی�وں ےک اسھت ومجمیع اقلعتت وک آےگ ب�اھ�ا‪،‬‬
‫ب ی� مک یک ب ی‬

‫‪89‬‬
ABBOTT PAKISTAN 2020 ANNUAL REPORT

DIRECTORS’ REPORT

Your Directors are pleased to present their Report and INDUSTRY OVERVIEW
the audited financial statements of the Company for the According to global pharma research company – IQVIA
financial year ended December 31, 2020. (previously known as IMS) published data, pharmaceutical
industry in Pakistan is currently estimated at US$ 3.14
billion. The market share of multinational companies has
OPERATING RESULTS Rs. in ‘000 been gradually declining over the years and at present is
Profit for the year before taxation 6,243,559 only 31%. There are a total of 623 active pharmaceutical
companies in Pakistan with only 26 multinational
Taxation )1,708,310(
companies. Several of these have scaled back their
Profit after taxation 4,535,249 operations owing various reasons.
Other comprehensive loss - net of tax )232,771(
CAPITAL EXPENDITURE
Un-appropriated profit brought forward 6,405,498
Your Company continues to invest in latest production
Profit available for appropriation 10,707,976
technologies in order to utilise new opportunities created
Appropriations: by technological advancements. The Company made
- Final dividend 2019 Rs. 7.5 per share )734,252( capital investment of Rs. 1,380 million during the year in
- Interim dividend 2020 Rs. 15.0 per share )1,468,505( order to expand manufacturing capacity, enhancement of
productivity and improvement of plant efficiency.
Un-appropriated profit carried forward 8,505,219
LIQUIDITY MANAGEMENT AND CASH FLOW
FINANCIAL PERFORMANCE STRATEGY

Net sales increased by 17.0% over the previous year. Gross Rs. 8,148 million was generated from operating activities
Profit margin improved from 28.3% to 34.6% substantially during the year. At year end, the Company had liquid
contributed by the improved performance of our funds comprising cash/bank balances and short-term
Nutritional segment. Selling and Distribution expenses investments amounting to Rs. 7,489 million, net of
increased by 4.9%, however declined as a percentage of investments on capital projects and dividend payments.
sales mainly on account of reduced travelling and sales Your Company has developed and implemented a formal
promotional activities due to COVID. Other charges cash flow monitoring system whereby cash inflows and
increased by 35.5% mainly due to increase in Workers’ outflows are projected and monitored on a regular basis.
Profit Participation Fund (WPPF), Workers’ Welfare This ensures sufficient availability of funds at all times
Fund (WWF) and Central Research Fund (CRF) driven while generating optimum returns through placement of
by improvement in profitability. Other income registered surplus funds in various investment avenues.
an increase of 116.1% versus the same period last year
primarily on account of liabilities written back. As a result The Company follows prudent investment strategy and
of these factors, profit after tax for the year increased by generally places surplus funds in short-term bank deposits,
Rs. 3.24 billion over the previous year. Earnings per share pending long-term investments.
was Rs. 46.33 per share (2019: Rs. 13.28 per share).
EVALUATION OF COMPANY’S PERFORMANCE
DIVIDEND For the purpose of evaluating the performance of the
Company, the management uses various indicators like
The Directors are pleased to announce a final cash
industry growth, position of peer companies in relevant
dividend of Rs. 25.0 per share (2019: Rs. 7.5 per share),
therapeutic areas, prior years’ performance, macro-
which is in addition to an interim cash dividend of Rs. 15.0
economic indicators and business environment impacting
per share (2019: NIL) paid to the shareholders during 2020.
the Company.
SEGMENT-WISE SALES AND MARKET PERFORMANCE Budgets are formulated and actual performance is
Pharmaceutical sales increased by 12.6% whereas measured against the budget, at regular intervals during
Nutritional sales increased by 37.5% mainly driven by the year, enabling remedial actions on a timely basis.
increase in sales of adult nutritional supplements. General
PRINCIPAL RISKS AND THEIR MANAGEMENT
Health Care, Diagnostic and Diabetes Care cumulatively
grew by 4.5%. The Company’s overall risk management program aims at
minimising potential adverse effects on its performance.

90
 ABBOTT PAKISTAN 2020 ANNUAL REPORT

This exercise is carried out by the Company’s senior BUSINESS PROCESS IMPROVEMENT
management team and the results are shared with the Your Company is focused on delivering safe and effective
Board of Directors. This entails identifying, evaluating and products of high-quality standards. Despite the challenges
addressing strategic, financial, commercial and operational and constraints posed by COVID-19, we continued to
risks faced by the Company. invest for improvement of quality of our products as well
During the year, as recommended by the Listed Companies as for meeting compliance with regulatory, safety and
(Code of Corporate Governance) Regulations, 2019, the environmental requirements. Such initiatives include
Risk Management Committee also undertook an overall A3 (Abbott Agility Accelerator), Top Gear Campaign,
review of the business risks and its mitigation plan which Operational Leadership Forum and Technical Skills
was presented to the Board. Development Forum. In addition, continued efforts are
being made to enhance compliance levels in-line with
Pak Rupee depreciation and inflation will remain as the World Health Organization (WHO) standards and other
primary risk being faced by the Company as this will International Guidelines.
increase the costs of our products.
Your Company continues to explore alternate energy
ADEQUACY OF INTERNAL FINANCIAL CONTROLS sources and has already installed 1,972 solar panels at
Korangi production facility. In continuance of its pursuance
The Board of Directors have established effective internal
of continuous improvement, Abbott Pakistan was awarded
financial controls across all functions. The independent
the Global class A certification, which reaffirms the quality
Internal Audit function of your Company regularly
of demand and operational planning process in place at
monitors the implementation of financial controls, and the
Abbott.
Audit Committee reviews it.
With a view to achieve our growth objectives, your
CONTRIBUTION TO NATIONAL EXCHEQUER Company has invested for expansion and upgradation of
Your Company has contributed Rs. 4,606 million (2019: capacity. Other examples include installation of high-speed
Rs. 5,211 million) to the Government on account of various machines and packaging lines.
Government levies including Income Tax, Customs Duties
and Sales Tax. HUMAN RESOURCES
The year 2020 brought unprecedented challenges and
ENVIRONMENT, HEALTH AND SAFETY (EHS) disruptions caused by COVID-19 pandemic. The pandemic
Abbott acknowledges that a healthy environment is has affected businesses and operations worldwide and
essential for better health, stronger communities and forced a major shift in the way people work and contribute
more fulfilling lives. Your Company is committed towards towards organisation goals due to requirement of social
safeguarding a healthy environment for everyone by distancing which necessitated practices of working
reducing the environmental impacts of its business. remotely. We are pleased to report that our swift response
Your Company’s manufacturing sites are Zero-Waste to the situation in form of implementing work from home
to Landfill Certified Sites, i.e. all the waste generated and split-shifts arrangements contributed significantly
during manufacturing operations are either being reused towards the safety of our employees whilst also ensuring
or recycled. Your Company’s contribution towards continuity of our operations and products’ availability.
environment sustainability and preservation were Your company made all possible efforts to ensure that
recognised during the Annual Environmental Excellence safe practices are put to place in such a way that while
Awards 2020. remaining strictly within the WHO and federal and
provincial guidelines, employees are provided with support
CORPORATE SOCIAL RESPONSIBILITY (CSR) so they can continue to operate and deliver at optimum.

Being conscious of its Corporate Social Responsibilities, Abbott takes great pride in its ability to attract, develop and
your Company made significant contributions to multiple retain its people. We are pleased to report that while we
nonprofit organisations during the year. These included were able to keep our employees charged and motivated,
donations to the Liver Foundation, Indus Hospital, we were also able to continue to attract best talent where
Patients’ Behbud Society for Aga Khan University Hospital, needed during these times. Simultaneously, we continued
Patient’s Aid Foundation and Muhammadi Blood Bank. Our to develop and further strengthen our robust succession
Nutrition division also visited the children of Providence pipeline. Our partnership with academic institutions also
Home. The activity was aimed at bringing smiles on the continued, though in a limited fashion, in various ways
faces of the children as well as educating them about self- enabling us to provide virtual traineeship and internship
love, hygiene and self-care. experiences to students.
91
ABBOTT PAKISTAN 2020 ANNUAL REPORT

We take pride in reporting that our efforts ensured our competencies and review our strategies to ensure
seamless continuity of operations that helped the that they remain relevant and most suited, in line with
organisation achieve its objectives despite major changing dynamics in the local and global marketplace.
disruptions in ways of working. Your company is making all efforts to improve profitability
through innovation, improving efficiency and effective cost
GLOBAL CITIZENSHIP containment initiatives.
Abbott Pakistan subscribes to the values of our parent
company recognising that responsible, sustainable AUDITORS
businesses have an important role to play in building The present Auditors M/s EY Ford Rhodes, Chartered
a healthy, thriving society. This commitment to global Accountants, retire and being eligible, have offered
citizenship shapes the way we operate, the people we themselves for re-appointment. The Board of Directors
hire, the activities we support and the relationships we endorses the recommendation of the Audit Committee for
develop. To transform our global citizenship ambitions their re-appointment as auditors of the Company for the
into sustainable ideas, Abbott focuses on five key priorities: financial year ending December 31, 2021.
ensuring quality and safety, safeguarding our environment,
strengthening our supply chain, valuing our people and MANAGEMENT CHANGES
supporting communities.
During the year, election of Directors was held as per the
SUBSEQUENT EVENTS requirements of the Companies Act, 2017. Details of the
elected directors are disclosed on page 6. The Company
No material changes or commitments affecting the would like to appreciate the valuable contributions made
financial position of the Company have taken place by Mr. Kamran Y. Mirza, Mr. Shamim Ahmad Khan and
between the end of the year and the date of this report. Ms. Zehra Naqvi during their term.
BUSINESS CHALLENGES AND FUTURE OUTLOOK PATTERN OF SHAREHOLDING
The Coronavirus pandemic has affected businesses and A statement showing the pattern of shareholding in the
operations worldwide. It has impacted the way we work, Company and additional information as at December 31,
communicate and interact with each other. Your Company 2020 is given on page 190.
prioritised the safety of its employees and implemented
arrangements where employees were able to contribute Ms. Mariam Malik (spouse of Mr. Ehsan Ali Malik,
remotely whilst also ensuring business continuity. Our Director) disposed off 1,800 shares during December 2020
sincere efforts helped to ensure our products’ availability in at the rate of Rs. 762.21.
the market. Other Directors, CEO, CFO, Company Secretary and
We believe that the pharmaceutical industry has a their spouses and minor children did not carry out any
significant role to play in ensuring uninterrupted supply transaction in the shares of the Company during the year.
and access of its products to the consumers during these
testing times. HOLDING COMPANY

The Company continues to face challenges of escalation As at December 31, 2020 Abbott Asia Investments Limited,
in costs owing to inflation and devaluation of the Pak UK held 76,259,454 shares. The ultimate holding Company
Rupee. The recent stability of the exchange rate is is Abbott Laboratories, USA.
welcome, however should the scenario change, any further
COMPLIANCE WITH THE LISTED COMPANIES (CODE
devaluation would impact the financial outlook.
OF CORPORATE GOVERNANCE) REGULATIONS, 2019
The Drug Regulatory Authority (Authority) plays a (REGULATIONS)
significant role in the regulation and development of
As required by the Listed Companies (Code of Corporate
pharmaceutical industry. The role of the Authority
Governance) Regulations 2019, the Directors are pleased to
in resolving the long-standing hardship pricing issue
state as follows:
is appreciated. We look forward to working with the
regulators to ensure that pragmatic steps are taken to • The financial statements, prepared by the management
ensure availability and access of high-quality medicines to of the Company, present fairly its state of affairs, the
the patients. results of its operations, cash flows and changes in
equity.
Coronavirus will continue to alter the global business
dynamics and it's imperative for us as organisation, and • Proper books of accounts of the Company have been
the industry as a whole, to be flexible and adaptable to maintained.
the changing environment. We will continue to build on

92
 ABBOTT PAKISTAN 2020 ANNUAL REPORT

• Appropriate accounting policies have been consistently Number

applied in preparation of financial statements. of Board
Name of Directors/CFO/Co. Secretary
Accounting estimates are based on reasonable and Meetings
prudent judgment. Attended
 
• International Financial Reporting Standards,
1 Mr. Munir A. Shaikh 3
as applicable in Pakistan, have been followed in
preparation of financial statements and any departure 2 Syed Anis Ahmed 4
therefrom has been adequately disclosed and explained. 3 Ms. Seema Khan 4
• The Company maintains a sound internal control system 4 Mr. Ehsan Ali Malik 4
which gives reasonable assurance against material 5 Mr. Mohsin Ali Nathani 3
misstatement or loss. The internal control system is 6 Ms. Ayla Majid 3
regularly reviewed. 7 Mr. Muhammad Anjum Latif Rana 3
• We affirm the Company’s ability to continue as a going 8 Mr. Kamran Y. Mirza* 1
concern. 9 Mr. Shamim Ahmad Khan* 1
• There has been no departure from the best practices of 10 Ms. Zehra Naqvi* 1
corporate governance. 11 Syed Tabish Aseem (CFO) ** 4
• Key operating and financial data for the last six years is 12 Mr. Humayun Altaf (Company Secretary) *** 4
summarised on page 106.
* Retired on the conclusion of the 71st Annual General
• Outstanding taxes, statutory charges and duties, if any, Meeting and did not offer themselves for elections.
have been duly disclosed in the financial statements.
** Appointed as the Chief Financial Officer on January 16th,
• Significant deviations, from last year in the operating 2020.
results of the Company have been highlighted and
*** Appointed as the Company Secretary on January 16th,
explained.
2020.
• In accordance with the criteria specified in the
Regulations, two directors have certification under Number of Board Committees’ meetings and attendance
Directors’ Training Program, one Director of the therein is included on page 87.
Company is exempt from the requirement of Directors’
DIRECTORS’ REMUNERATION
training program. All the Directors on the Board are
fully conversant with their duties and responsibilities as In line with the requirements of Listed Companies
directors of corporate bodies. (Code of Corporate Governance) Regulations, 2019 and
the Articles of Association of the Company, the policy
• Outstanding debts, if any, have been duly disclosed in
for remuneration of non-executive directors (including
the financial statements.
independent directors) has been approved by the Board of
• The value of investments made by the staff retirements Directors.
funds as per their financial statements are as follows:
The salient features of the policy are:
Value (Rs. in millions)
• The Company will not pay any remuneration to its non-
- ALPL Pension Fund (Based on year ended executive directors (including independent directors)
December 31, 2019) – audited 3,775 except as meeting fee for attending the Board and its
Committee meetings.
- ALPL Provident Fund (Based on year ended
December 31, 2019) – audited 806 • The remuneration of a director for attending meetings
of the Board of Directors or its Committees shall from
• During the year, four meetings of the Board of Directors time to time be determined and approved by the Board
were held. Attendance by each Director/CFO/Company of Directors.
Secretary was as follows:
• A director shall be provided or reimbursed all travelling,
boarding, lodging and other expenses incurred by him
for attending meetings of the Board, its Committees
and/or General Meetings of the Company.

93
ABBOTT PAKISTAN 2020 ANNUAL REPORT

BOARD EVALUATION COMMITTEES OF THE BOARD

During the year, the Board of Directors have appointed
AUDIT COMMITTEE
Pakistan Institute of Corporate Governance (PICG) to
carry out evaluation of the Board with its committees and Ehsan Ali Malik - Chairman
its members including the Chairman. Ayla Majid - Member
Muhammad Anjum Latif Rana – Member
PARTICULARS OF THE EXTERNAL CONSULTANT HUMAN RESOURCE AND REMUNERATION
The PICG is a not-for-profit company engaged in COMMITTEE
promoting good corporate governance practices in Mohsin Ali Nathani - Chairman
Pakistan. Their founding shareholders include the Munir A. Shaikh - Member
Securities and Exchange Commission of Pakistan (SECP), Syed Anis Ahmed - Member
State Bank of Pakistan (SBP), Pakistan Stock Exchange and
leading business and educational institutions. RISK MANAGEMENT COMMITTEE

Their faculty comprises professionals from diverse Ayla Majid – Chairperson

experiences and backgrounds. Additional details are Syed Anis Ahmed - Member
available on their website at https://www.picg.org.pk/ Muhammad Anjum Latif Rana – Member
faculty-profile/. Seema Khan – Member
NOMINATION COMMITTEE
DIRECTORS’ TRAINING
Munir A. Shaikh – Chairman
Two directors of the Company have a certification under Syed Anis Ahmed – Member
Directors’ Training Program, while one Director of the Mohsin Ali Nathani – Member
Company is exempt from the requirement of Directors’ Ehsan Ali Malik - Member
training program. Directors elected during the year will
SHARE TRANSFER COMMITTEE
be trained within the timelines provided in Regulation 19
of the Listed Companies (Code of Corporate Governance) Syed Anis Ahmed - Chairman
Regulations, 2019. All Directors are fully conversant with Muhammad Anjum Latif Rana – Member
their duties and responsibilities as Directors of corporate Seema Khan - Member
bodies. BANKING COMMITTEE
COMPOSITION OF THE BOARD Mohsin Ali Nathani - Chairman
Syed Anis Ahmed - Member
In line with the requirements of the Regulations, the Seema Khan - Member
Company encourages representation of independent and
non-executive directors, as well as gender diversity on its ACKNOWLEDGEMENT
Board. The current composition of the Board is as follows: The Board of Directors would like to take this opportunity
to express its deep appreciation of the commitment,
TOTAL NUMBER OF DIRECTORS: resilience, courage and dedication of employees during
(a) Male: 5 these testing times. We would also like to acknowledge
(b) Female: 2 the continued support and cooperation received from our
esteemed customers, suppliers, bankers and shareholders
COMPOSITION:
and thank them for reposing confidence in our Company
i. Independent Directors: 3 and products.
ii. Non-Executive Directors: 2
iii. Executive Directors: 2

Syed Anis Ahmed Ehsan Ali Malik

Chief Executive Director

February 26th, 2021

94
 ‫‪ABBOTT PAKISTAN 2020 ANNUAL REPORT‬‬

‫ارتعاف‪:‬‬
‫لکشم احالت ی‬ ‫ئ ی ٹ‬
‫ےک اسھت ارتعاف رکےت‬ ‫م ن اکرونکں ےک زعم‪ ،‬وافداری اور االخص اک ُ پ�رولخص‬ ‫ئ‬ ‫ف‬ ‫ان‬ ‫رز‬
‫ر�‬ ‫وبرڈ آف ڈا�‬
‫ن‬ ‫ک‬‫�‬ ‫�‬
‫ی‬ ‫ب‬ ‫�‬ ‫ن‬ ‫ی‬
‫�۔ مہ اےنپ �باواقر اصر�‪ ،‬الپس�رز‪� ،‬رز اور صصح ی�ااگتفن قیک رطف ےس ےنلم واےل لسلسم اعتون اک یھب ارتعاف ا‬
‫رک�‬ ‫ہی‬
‫ب‬ ‫ہ‬
‫اچ� ےگ ہک اوہنں ےن �اری ینپمک اور ونصماعت رپ اانپ اامتعد �ر�رار راھک۔‬ ‫ی‬ ‫ہ‬

‫ن‬
‫ااسحن یلع کلم‬ ‫ ‬ ‫ ‬ ‫ ‬ ‫سد ی‬
‫ا� ادمح‬ ‫ّی‬
‫ئ ٹ‬ ‫ٹ‬ ‫چ ف‬
‫ڈا� ی ر‬
‫ر�‬ ‫ ‬ ‫ ‬ ‫ ‬ ‫� یا� ی و‬
‫�ز�‬ ‫ی‬

‫ف‬
‫‪� 26‬روری ‪2021‬ء‬

‫‪95‬‬
‫‪ABBOTT PAKISTAN 2020 ANNUAL REPORT‬‬

‫ٹ‬ ‫ب ک�نسل�ٹ� ن ٹ‬
‫وبرڈ یک ی ی‬
‫مکاں‬ ‫صات‬
‫� یک وصخ ی‬ ‫ی�روین‬
‫غ‬
‫ی ٹ‬ ‫ی ٹ‬
‫اکروپر� مظن‬ ‫م‬ ‫�ر انمعف شخب ینپمک ےہ وج �پااتسکن ی‬
‫ف‬
‫یپ آیئ یس یج یا� ی‬
‫آڈٹ مک‬ ‫م وغشمل ےہ۔ اس ےک‬ ‫د� ےک اکم ی‬ ‫ن‬
‫و قسن یک دمعہ روا ی�ات وک �روغ ی‬
‫یشن‬ ‫ی ی ٹ �ز ن‬ ‫ش ئ‬
‫چیئ ی ن‬ ‫(ا� ای یس یپ)‪،‬‬ ‫مک آف �پااتسکن ی‬ ‫ور� ی �ڈ‬
‫ا�‬ ‫�باین ی�ر وہڈلرز م س ی‬
‫رم‬ ‫ااسحن یلع کلم – �‬
‫� آف �پااتسکن ت ی‬ ‫ٹ ٹ بن‬
‫اور فصِ اول‬ ‫(ا� یب یپ)‪ ،‬ش�پااتسکن ااٹسک‬ ‫اس ی‬ ‫ی‬
‫اعہلئ ج‬
‫ام�د – رنک‬ ‫ہ‬ ‫یم‬ ‫�عل�‬
‫ف ن‬ ‫ےک اکرو�باری ادارے اور ی ادارے �الم ی�۔‬
‫را� – رنک‬
‫طل ا‬ ‫دمحم امجن ی‬ ‫ف‬ ‫ٹ‬
‫ش‬ ‫پ ش‬
‫شن ی ٹ‬ ‫ن‬ ‫� ور ا�راد �الم‬ ‫م ونتمع رجتوبں اور سپ ئرظنم ےک تاحلم ی‬ ‫اس یک ف�یکل�ی ی‬
‫ورن� مک‬‫ر� ی‬
‫ا� ی‬ ‫ہ ی�ونم ی‬
‫ر�ورس ی د‬ ‫دساب ہ ی�‬
‫و� اس� رپ ی‬
‫ٹ‬ ‫ہ ی�۔ م ی�ز�د ولعمامت اس ینپمک یک ی ب‬
‫چیئ ی ن‬ ‫ن‬ ‫‪https//:www.picg.org.pk/faculty-profile/‬‬
‫رم‬ ‫نسحم یلع �شااھتین – �‬
‫ی خ‬ ‫ن‬
‫مر اے � – رنک‬ ‫ی‬ ‫نن‬ ‫ئ ی ٹ‬
‫ن‬ ‫ی‬
‫ڈا�ر�روں یک رٹ�‬
‫ا� ادمح – رنک‬ ‫سد ی‬ ‫ی‬
‫ئ ٹ‬ ‫نن‬ ‫ئ ٹ‬
‫ی ٹ‬ ‫رٹ� رپورگام ےک تحت ینپمک ےک دو ڈا� یر�روں ےک �پاس‬ ‫ڈا� یر� شرز ی‬
‫ٹ‬
‫مک‬ ‫رکس‬ ‫نن‬ ‫ئ ٹ‬ ‫��یفک�ی� ن‬
‫رٹ� رپورگام‬ ‫ےک یا� ڈا� یر�ر ہقلعتم ی‬ ‫ینپمک‬
‫مس ت ث ن‬ ‫ہکبج‬ ‫ےہ‪،‬‬ ‫وموجد‬ ‫�‬ ‫رس‬
‫ہ‬ ‫�‬‫�‬ ‫�‬
‫ئ‬
‫ام�د – چ ی�ررپنس‬
‫اعہلئ ج‬ ‫ی ٰ ی�۔ دورانِ ٹاسل بختنم وہےن ل� ش ن‬ ‫ےس‬
‫رکےن ک ن‬
‫�‬ ‫م‬ ‫ٹ‬ ‫ل‬
‫اقتےض وپرے‬
‫ٹ‬ ‫ےک ئ‬
‫ی‬
‫ر� ����ز‬ ‫اکروپر� وگرسنن) ی و‬ ‫ی‬ ‫س پ��‬ ‫ی‬
‫ن‬
‫نن‬
‫(وکڈ آف‬ ‫واےل ڈا�ر�روںش نوک ���ڈ ی��ز ف‬
‫ا� ادمح – رنک‬ ‫سد ی‬‫ّی‬ ‫رٹ� دی اجےئ‬ ‫ی‬
‫رکدہ دمّت م ی‬ ‫ر�ل�ی����ز ‪ 19‬ےک تحت �رامہ‬ ‫‪2019‬ء ی و‬
‫ف ن‬ ‫یث ت‬ ‫ئ ی ٹ‬ ‫ٹ‬ ‫ئ ی ٹ‬
‫را� – رنک‬
‫طل ا‬ ‫دمحم امجن ی‬ ‫ح ےس اےنپ‬ ‫اکروپر� اداروں ےک ڈا�ر�روں یک ی‬ ‫ی‬ ‫فیگ۔ امتم ڈا�ر�رز‬
‫ہ‬
‫دار�وں ےس وخبیب آاگہ ی�۔‬ ‫�راضئ اور ذہم ی‬
‫س�یم�ا اخن – رنک‬
‫ی ٹ‬ ‫ت‬
‫ن‬ ‫ف‬ ‫�‬
‫ا�م�زدیگ مک‬ ‫وبرڈ یک ص�یل‬
‫ش‬
‫ی خ چیئ ی ن‬ ‫ی‬
‫ن‬ ‫ٹ‬ ‫ن‬ ‫وضاطب ےک اقتوضں ےک اطمقب ینپمک اےنپ وبرڈ ی‬
‫رم‬ ‫مر اے � – �‬ ‫م آزاد اور �ان یا� ی�ز�و‬
‫ن‬ ‫ئ ٹ‬
‫ا� ادمح – رنک‬ ‫سد ی‬ ‫ّی‬ ‫ڈا� یر�روں یک امندنئیگ ےک ت شاسھت اسھت یفنص ونتع یک یھب وحہلص ازفایئ‬
‫ن‬ ‫� اس رطح ےس ےہ‪:‬‬ ‫رکیت ےہ۔ وبرڈ یک وموجدہ ی‬
‫نسحم یلع �ااھتین – رنک‬
‫ااسحن یلع کلم – رنک‬ ‫ئ ی ٹ‬
‫ی ٹ‬ ‫ش ئ‬ ‫ڈا�ر�روں یک ومجمیع دعتاد ‪:‬‬
‫ی�ر رٹارفسن مک‬
‫ن‬ ‫(‪ )i‬رمد‪5 :‬‬
‫چیئ ی ن‬ ‫سد ی‬ ‫ّی‬ ‫ت‬
‫رم‬ ‫ا� ادمح – �‬ ‫(‪ )ii‬ی ن‬
‫ف ن‬ ‫وخا�‪2 :‬‬
‫را� – رنک‬‫طل ا‬ ‫دمحم امجن ی‬
‫س�یم�ا اخن – رنک‬
‫تش‬
‫ی‬
‫�‪:‬‬
‫ی ٹ‬ ‫ن ن‬
‫ب ی� مک‬ ‫ئ ٹ‬
‫ •آزاد ڈا� یر�رز‪3 :‬‬
‫چیئ ی ن‬ ‫ن‬ ‫ن ی ی ٹ ئ ٹ‬
‫رم‬ ‫نسحم یلع �ااھتین – �‬ ‫�ز� ڈا� یر�رز‪2 :‬‬
‫ •�ان ا� و‬
‫ن‬ ‫ی ی ٹ ئ ی ٹ‬
‫ا� ادمح – رنک‬ ‫سد ی‬‫ّی‬ ‫�ز� ڈا�ر�رز‪2 :‬‬ ‫ •ا� و‬
‫س�یم�ا اخن – رنک‬

‫‪96‬‬
 ‫‪ABBOTT PAKISTAN 2020 ANNUAL REPORT‬‬

‫ش‬
‫م�‬ ‫�‬ ‫م ہ‬ ‫وگوشاروں ی‬
‫‪1‬‬ ‫‪9‬۔ انجب یم ادمح اخن *‬ ‫کا گی ا ےہ۔‬
‫اظ�ر ی‬
‫‪1‬‬ ‫‪10‬۔ رتحمہم ہ‬
‫ز�رہ وقنی* ‬ ‫م ذگہتش ب�رس ےک اقمےلب ی‬ ‫ٹن‬
‫ٓرپ� اتنجئ ی‬
‫م وہےن وایل‬ ‫•ینپمک ےک ا ی‬ ‫ ‬
‫ف‬ ‫حت‬ ‫ش‬ ‫ن‬ ‫�ڑ‬
‫ی ت عص�‬ ‫دبت�وں یک �ادنیہ اور واض رکدی یئگ ےہ۔‬‫ب�ی ی ی‬
‫‪4‬‬ ‫سد �اشب یم (یس یا� او) ** ‬ ‫‪11‬۔ ّ‬
‫‪12‬۔ انجب ہ� یا�وں ااطلف(ینپمک ی‬ ‫عمار ےک اطمقب‬ ‫ی ٹ‬
‫اکروپر� مظن و قسن ی‬ ‫وضاطب ب�راےئ‬
‫‪4‬‬ ‫سررٹی) *** ‬ ‫د� ےئگ ی‬ ‫م ئ ی‬ ‫•‬ ‫ ‬
‫ہ‬ ‫ٹ‬ ‫ی‬ ‫نن‬ ‫ئ ی ٹ‬
‫�‪ ،‬ینپمک ےک‬ ‫ےک تحت دو ڈا�ر�ر دنس ی�ماہتفس ت ث ی ن‬ ‫ی‬
‫ڈا�ر� ئرز رٹ� ئرپورگام‬
‫* ‪ 71‬ی‬
‫و� اسالہن االجس شاعم نےک ااتتخم رپ دکبسوش وہےئ اور اوہنں ےن‬ ‫نن‬ ‫ٹ‬ ‫ی ٹ‬
‫پ‬ ‫رٹ� رپورگام یک رشط ےس ئ ���ی ٰ ہ ی� ۔‬ ‫ڈا� یر�رز ی‬ ‫ر‪،‬‬ ‫ر�‬ ‫یا� ڈا�‬
‫کا۔‬
‫�� ی‬‫ی‬ ‫ل ی‬‫وخد وک ااختن�بات ےک ی‬ ‫ی ٹ‬ ‫ٹ‬ ‫ئ ی ٹ‬
‫اکروپر� ادارے ےک ڈا�ر�رز ےک وطر‬ ‫ی‬ ‫وبرڈ ےک ف امتم ڈا�ر�رز یا�‬
‫ف نش ف‬ ‫ہ‬
‫� ی‬
‫انف� ا ی ر‬
‫ٓ� رقمر وہےئ۔‬ ‫** ‪ 16‬ونجری ‪2020‬ء وک چ ی‬ ‫دار�وں ےس وپری رطح آاگہ ی�۔‬ ‫رپ اےنپ �راضئ و ذہم ی‬
‫ق‬
‫*** ‪ 16‬ونجری ‪2020‬ء وک ینپمک ی‬
‫سررٹی رقمر وہےئ۔‬ ‫ب‬
‫انمس وطر رپ‬ ‫م‬‫وا� االدا �رےض‪ ،‬ارگ وہں وت‪ ،‬امیل وگوشاروں ی‬ ‫• ج ب‬ ‫ ‬
‫ت‬ ‫ٹ‬ ‫ہ‬
‫�ف‬ ‫د� ےئگ ی�۔‬ ‫اظ�ر رک ی‬ ‫ہ‬
‫م احرضی یک ص�یل ہحفص ربمن‬ ‫مکوں ےک االجوسں یک دعتاد اور ان ی‬
‫وبرڈ ی ی‬
‫ت‬ ‫ٹئ‬
‫‪ 87‬رپ درج ےہ۔‬ ‫• تےلمع ےک ی‬
‫ر�ا�رٹنم ڈنف ےس یک اجےن وایل رسام�ی اکری یک ی‬
‫امل یک‬ ‫ ‬
‫�فص�یل امیل وگوشاروں ےک اطمقب درج ی‬
‫ئ ی ٹ‬
‫ر�روں اک ہ‬
‫ذ� ےہ‪:‬‬
‫اشم�رہ‬ ‫ڈا�‬ ‫ی ت ی ن‬
‫(لم روےپ ی‬
‫م)‬ ‫امل‬
‫شن‬ ‫ن‬
‫ر�ل�ی����ز ‪2019‬ء اور ینپمک‬ ‫ی ٹ‬
‫اکروپر� وگرسنن) ی و‬ ‫آف‬ ‫(وکڈ‬ ‫�ز‬
‫�‬ ‫ی‬ ‫لس�ٹ��ڈکم�پ��‬
‫ٹ‬ ‫ن‬
‫ا� ےک اقتوضں ےک اطمقب �ان یا� ی�ز�و‬ ‫یک آر�ٹ�یکل��ز آف یا�ویس ی ش ن‬ ‫(‪ 31‬دربمس ‪2019‬ء‬ ‫ی‬ ‫ی‬
‫•اے ا� یپ ا� نشنپ ڈنف ن‬ ‫ ‬
‫ئ ی ٹ‬ ‫ئ ٹ‬ ‫‪3,775‬‬ ‫وک متخ وہےن واےل اسل یک ب ی‬
‫�اد رپ) ۔ آڈٹ دشہ ‬
‫اشم�رے یک �پ یال وبرڈ آف‬‫ر�رز) ےک ہ‬ ‫ڈا� یر�روں (ومشبل آزاد ڈا�‬
‫ئ ٹ‬ ‫رپاو� ی ن ٹ‬
‫ڈا� یر�رز ےن وظنمر یک ےہ۔‬ ‫�ڈ� ڈنف ن (‪ 31‬دربمس ‪2019‬ء‬ ‫•اے یا� یپ یا� ی‬ ‫ ‬
‫‪806‬‬ ‫�اد رپ) ۔ آڈٹ دشہ ‬ ‫ب‬
‫وک متخ وہےن واےل اسل یک ی‬
‫ئ ی ٹ‬
‫اس �پ یال یک اخص اکنت �ی ہ ی�‪:‬‬ ‫مہر‬
‫�‬ ‫ر�رز ےک ‪ 4‬االجس وہےئ۔ نج ی‬
‫تف‬ ‫ڈا� ٹ‬
‫ی‬
‫اسل ےک دوران وبرڈ آف‬
‫ف‬ ‫ئ ی ٹ‬
‫•‬ ‫ ‬
‫ئ ٹ‬ ‫ن ی ی ٹ ئ ٹ‬ ‫�ات درج ی‬
‫ذ�‬ ‫ی‬
‫ڈا�ر�ر‪ ،‬یس یا� او‪ ،‬ینپمک سر�ری یک احرضی یک ی‬
‫�ز� ڈا� یر�روں (ومشبل ٹ آزاد فڈا� یر�رز) وک وکیئ‬‫ •ینپمک اےنپ ن�ان ا� و‬ ‫ہ ی�‪:‬‬
‫م ن‬
‫ی‬ ‫�‬
‫ی�‬
‫رکے ن یگ اموساےئ اس �گ � ےک وج وبرڈ اور‬ ‫ی‬
‫اشم�رہ ادا ٹ� م ٹ‬
‫ہ‬
‫وبرڈ ےک االجوسں ی‬ ‫ف‬ ‫ئ ی ٹ‬
‫م رشتک رپ ادا یک اجےئ یگ۔‬ ‫�‬
‫ی�‬
‫مکوں یک �گ�وں ی‬ ‫اس یک ی ی‬ ‫م‬ ‫ی‬
‫ڈا�ر�رز‪ ،‬یس ا� او‪ ،‬‬
‫ن‬ ‫ٹ‬
‫م رشتک رپ یسک‬ ‫مکوں ےک االجوسں ی‬
‫ٹ‬ ‫ئ ٹ‬
‫وبرڈ آف ڈا� یر�رز ی�ا اس یک ی ی‬ ‫ •‬ ‫رشتک یک دعتاد‬ ‫س یر�ری ےک ا�م ‬
‫ینپمک ی‬
‫ہ‬ ‫ئ ی ٹ‬ ‫شی خ‬ ‫ن‬
‫کا اجےئ اگاور اس یک وظنمری وبرڈ آف‬ ‫ر� اک اشم�رہ واتقً وفاتقً ےط ی‬ ‫ڈا� ر‬
‫ئ ٹ‬ ‫‪3‬‬ ‫مر اے ‬
‫�‬ ‫‪1‬۔ انجب ی‬
‫ڈا� یر�رز دے اگ۔‬ ‫ن‬
‫ٹ‬ ‫‪4‬‬ ‫ا� ادمح ‬ ‫سد ی‬
‫‪2‬۔ ی‬
‫ینپمک ےک اسالہن االجس اعم‬ ‫االجوسںٹ اور‪ /‬ی�ا ق‬
‫مکوں ےک ئ‬ ‫ •وبرڈ‪ ،‬اس یک ی ی‬
‫د�ر وج‬‫م رشتک یک انب رپ یا� ڈا� یر�ر وک رفس‪ ،‬ی�ام و ئاعطم اور ی‬ ‫ی‬ ‫‪4‬‬ ‫‪3‬۔ رتحمہم س�یم�ا اخن ‬
‫ف‬ ‫ش ت‬ ‫خ‬
‫ک‬‫اج� ےگ ی�ا ادا ی‬ ‫ک ی‬ ‫ڑپ� ےگ وہ �رامہ ی‬ ‫ا�رااجت ب�ردا� رکےن ی‬ ‫ئ‬ ‫‪4‬‬ ‫‪4‬۔ انجب ااسحن یلع کلم ‬
‫اج� ےگ۔‬ ‫ی‬ ‫ن‬
‫‪3‬‬ ‫‪5‬۔ انجب نسحم یلع �ااھتین ‬

‫وبرڈ یک دقر پ ی�ایئ‬ ‫‪3‬‬ ‫‪6‬۔ سم اعہلئ ج‬

‫ام�د ‬
‫ٹ‬ ‫ئ ٹ‬ ‫ف ن‬
‫اسل ےک دوران وبرڈ آف ڈا� یر�رز ےن وبرڈ اور اس یک ی ی‬
‫مکوں ٹاور اس ےک‬ ‫‪3‬‬ ‫طل را�ا ‬
‫‪7‬۔ انجب دمحم امجن ی‬
‫چیئ ی ن‬
‫رم یک دقر پ ی�ایئ رکاےن ےک ی‬
‫ل �پااتسکن ایٹسن ی�وٹ آف‬ ‫اراکن ومشبل �‬ ‫‪1‬‬ ‫‪8‬۔ انجب اکرمان وایئ رمزا * ‬
‫کا۔‬ ‫ی ٹ‬
‫اکروپر� وگرسنن (یپ آیئ یس یج) اک رقتر ی‬

‫‪97‬‬
‫‪ABBOTT PAKISTAN 2020 ANNUAL REPORT‬‬

‫ٹ‬ ‫ف‬ ‫ی ئ ٹ‬ ‫ف‬ ‫ٹ‬

‫د�ر ڈا� یر�رز‪ ،‬یس ای او‪ ،‬یس ی‬ ‫ی ن‬ ‫ٓزامشئ ےک ان دونں ی‬
‫س ی نر�ری‪،‬‬
‫ا� او‪ ،‬ینپمک ےک ی‬ ‫اسل ےک دوران‬ ‫اصر�‬ ‫م‬ ‫نق‬ ‫ی‬
‫افراموس� تعنص اک ا‬ ‫ہ�اری راےئ ےہ ہک‬
‫ی‬ ‫ن‬ ‫ن‬ ‫ی‬ ‫� انبےن ی‬ ‫ی‬
‫وک اینپ ونصماعت یک الب لطعت ردس اور راسیئ ی‬
‫د� �‬ ‫ان ےک ازواج اور مک رمع وچبں ےن ینپمک ےک صصح اک وکیئ ل ی‬ ‫م امہ رکدار ےہ۔‬
‫کا۔‬
‫ی‬ ‫ی یٹ‬
‫م دوا اسزی یک تعنص ےک وضاطب اور اس یک‬ ‫ولری ااھتریٹ کلم ی‬ ‫تڈرگ ر�‬
‫ن‬ ‫وط� رعےص ےس لح بلط رنوخں‬ ‫م یا� امہ رکدار ادا رکیت ےہ۔ ی‬ ‫�ریق ی‬
‫ےک دوشار ےلئسم ےک لح یم ااھتریٹ اک رکدار ادا رک�ا وخش آ دنئ ےہ۔ مہ وہڈل� ینپمک‬ ‫ن‬
‫ن‬ ‫ٹ‬
‫ش � یس�م ٹ‬ ‫ت‬
‫ن‬ ‫ٹ‬ ‫�‬ ‫�‬ ‫ی‬ ‫ٹ‬ ‫ی‬ ‫ت‬ ‫رامد ق ہ ین� �اہک‬ ‫ل ُ پ� ی‬ ‫اکم رکےن ےک ی‬ ‫اضہطب اسز اداروں ےک اسھت لم رک ت‬ ‫ض‬
‫راط� ےک‬ ‫ب‬
‫ا� اون س مل�ڈ‪ � ،‬ی‬ ‫ی‬ ‫ب‬
‫ومرہخ ‪ 31‬دربمس ‪2020‬ء � ا� ی ا‬ ‫یی‬ ‫ت‬ ‫ی‬
‫ٹ‬ ‫ن‬ ‫ےک‬ ‫انبےن‬ ‫�‬ ‫راسیئ‬ ‫�‬ ‫ان‬ ‫اور‬ ‫ایب‬ ‫دس‬
‫ی‬ ‫یک‬ ‫ں‬ ‫دواو‬
‫ٔ‬ ‫ئ‬ ‫یک‬ ‫ار‬ ‫عم‬
‫ی‬ ‫یلع‬
‫ٰ‬ ‫ا‬ ‫وک‬ ‫وں‬ ‫رم�‬
‫ل ی‬
‫اررٹ��ز‪،‬‬ ‫ا� ی ب‬ ‫�پاس ‪ 76,259,454‬صصح ےھت۔ یمتح وہڈل� ینپمک ی ب‬
‫اج�۔‬ ‫ک ی‬ ‫ل یلمع ادقاامت ی‬ ‫ی‬
‫ارم� ےہ۔‬ ‫ی‬
‫ت‬ ‫ق‬ ‫ن ئ‬
‫ل� ش ن‬ ‫ی ٹ‬ ‫ن‬ ‫لس ٹ ک‬ ‫انچہچن‬ ‫اگ‪،‬‬ ‫رےہ‬ ‫ا‬ ‫رک�‬ ‫دبت�‬ ‫رط�وں وک ی‬ ‫ی‬ ‫اری‬ ‫ب‬ ‫�‬ ‫اکرو‬ ‫رپ‬ ‫حطس‬ ‫اعیمل‬ ‫رس‬ ‫وا�‬ ‫وکرو�‬
‫ا‬
‫ر� ی� ��ز�‬ ‫اکروپر� وگرسنن) وی‬ ‫���ڈ ی��ز ت(وکڈ آف‬ ‫�‬ ‫�‬ ‫پ‬ ‫�‬ ‫م‬ ‫رضوری‬ ‫ل‬ ‫ی‬ ‫ےک‬ ‫تعنص‬ ‫اس‬ ‫ومجمیع‬
‫�بح�ی�ث ت‬
‫ی�‬ ‫�‬ ‫اور‬ ‫‪،‬‬ ‫ادارہ‬ ‫وطبر‬ ‫ل‬ ‫ی‬ ‫ارے‬ ‫ہ�‬
‫�ع‬
‫ر� ےگ‪ ،‬اور تمکحِ عمل�ی�وں اک ‪2019‬ء یک م�یل‬
‫ل کچل دار‬ ‫دبت� وہےت وہےئ احالت ےک اطمقب ڈےنلھ ےک ی‬ ‫ےہ ہک ئ ی‬
‫اانپ�۔ مہ اینپ ا�ہل� ت نی� دبوتسر ب��ڑاھےت یہ‬ ‫رو�ی ی‬
‫ل� ش ن‬ ‫ٹ‬ ‫ٹ ک ن‬ ‫ٹ‬ ‫ت‬ ‫ت‬ ‫ئ‬
‫ر� ��ز ‪2019‬ء اک‬ ‫�‬ ‫�‬‫ی‬ ‫ی‬
‫اکروپر� وگرسنن) و‬ ‫ی‬ ‫�ا ہک ���ڈ ئ پ ی �ز� (وکڈ آف‬‫�‬ ‫�‬ ‫�‬ ‫م‬ ‫س‬ ‫ل‬ ‫ی‬ ‫ج‬ ‫ی‬ ‫ی‬
‫ر� ےگ �اہک ا� یکلم اور اعیمل امرک م دبت� وہیت وہیئ‬ ‫ی‬ ‫ی‬ ‫ہ‬
‫اج� ق�زہ یل ی‬
‫ٹ‬
‫ذ� ب ی�ان رکےت ہ ی�‪:‬‬ ‫اقتاض ےہ‪ ،‬ڈا� یر�رز ہب رسمت درج ی‬ ‫کس۔ آپ یک ینپمک ج�دت رطازی اانپ رک‪ ،‬اکر‬ ‫رط�وں ےک اطمقب ڈاھل ی‬
‫خ‬ ‫ی‬
‫ذر� عفن ی�ایب‬ ‫زگاری رتہب انب رک اور ا�رااجت مک رکےن ےک ادقاامت ےک ی‬
‫ت‬ ‫ن‬
‫اج� ےس ی�ار رکدہ امیل وگوشارے ٹ ینپمک ےک‬ ‫ااظتنم یک ب‬ ‫شی‬ ‫ •ینپمک یک‬ ‫رتہب انبےن یک ہ�ر نکمم وکشش رک ریہ ےہ۔‬
‫ٓرپ� ےک اتنجئ‪ ،‬دقن روقم ےک اہبو اور یا� یو� ی‬ ‫�ز‬ ‫ن‬ ‫اعمالمت‪ ،‬ا ی‬
‫دبت�وں‬ ‫م یی‬ ‫ٔ‬
‫وصت�ر یشک رکےت ہ ی�۔‬ ‫م ی‬ ‫یک ےب الگ ادناز ی‬ ‫یٹ‬
‫ٓڈ�رز‬ ‫ا‬
‫ت‬ ‫ٹئ‬ ‫ٹن ٹ‬ ‫ن‬ ‫ٹ‬
‫کا گی ا ےہ۔‬ ‫رم� ی‬ ‫ب‬ ‫ •ینپمک ےک اھکوتں وک �بااقدعیگ ےس‬ ‫ر� شا�ر وہےئ‪،‬‬ ‫ااکو����س ی‬ ‫وموجدہ ا تٓڈ�رز ن�رز ای واےئ وفرڈ روڈز ‪ ،‬اچررٹڈ ٔ‬
‫ی م�یس‬
‫خت‬
‫کا۔ وبرڈ •امیل وگوشاروں یک ت ی�اری ت خ ی‬ ‫� ی‬ ‫ل وخد وک پ ی‬ ‫�اد رپ اوہنں ےن دو�بارہ رقتر ےک ی‬ ‫اینپ ا�ہل� ئی� ٹےک ب ی‬
‫ا�ار یک‬ ‫ااکوگنٹن �پال�یس�ی� فاں القتسمً ن ی‬ ‫ٔ‬ ‫ب‬
‫انمس‬ ‫م‬ ‫�� ن‬
‫ااکوگنٹن ےک م�ی�ے‬ ‫ہ‬ ‫ل‬‫آف ڈا� یر�رز ٹ ےن ‪ 31‬دربمس ‪2021‬ء وک متخ وہےن واےل ٹامیل اسل ےک ت ی‬
‫�اد رپ‬ ‫انمس اور دادنمشناہن ی�وں یک ب ی‬ ‫ب‬ ‫یئگ ی�۔ ٔ‬ ‫ی‬ ‫ینپمک ےک ا ی‬
‫�‬ ‫مک یک افسرش ی‬ ‫ٓڈ�رز ےک وطر رپ ان ےک ےئن رقتر یک آڈٹ‬
‫اگلےئ ےئگ۔‬
‫رک یل۔‬
‫ی ن‬ ‫ی‬ ‫ت‬ ‫تف‬
‫رم� رکےن م �پااتسکن م �اذفالمعل امیل روپرگنٹ‬ ‫ب‬ ‫�ات‬ ‫ •امیل ی‬
‫ی‬ ‫ےک ب ی ن‬
‫عمارات یک �پادنبی یک یئگ‪ ،‬اور اس نمض م یسک‬ ‫� االوقایم ی‬
‫یھب ولہپ یہت وک وقعمل ادناز ی‬ ‫دبت�اں‬ ‫ااظتنیم ی ی‬
‫م فشکنم اور واحض رکد ی�ا گی ا ےہ۔‬
‫قق‬ ‫ئ ی ٹ‬ ‫کم�پ ن�� ی ٹ‬
‫ارٹنلن رٹنکول مٹسس وموجد ےہ‪ ،‬وج اصقنن ی�ا ی‬ ‫اک‬ ‫روں‬ ‫ر�‬ ‫ڈا�‬ ‫تحت‬ ‫ےک‬ ‫اقتوضں‬ ‫ےک‬ ‫‪2017‬ء‬ ‫‪،‬‬ ‫ا�‬ ‫دورانِ اسل ی �ز�‬
‫ح‬ ‫ا� مکحتسم ق‬ ‫�ات ہحفص ‪ 6‬رپ دی یئگ ہ ی�۔ •ینپمک ناک ی‬ ‫تف‬ ‫ئ ی ٹ‬ ‫ااختنب لمع ی‬
‫یی ت‬ ‫ن‬ ‫م آ ی�ا۔بختنم ڈا�ر�روں شیک ی‬
‫� انب�ا ےہ۔ ارٹنلن رٹنکول مٹسس اک �بااقدعیگ ےس‬ ‫طلغ ب ی� یا�وں اک اخہمت‬ ‫م�‬ ‫�‬
‫ینپمک انجب اکرمان وایئ رمزا‪ ،‬انجب یم ادمح اور سم ہ‬
‫ت‬ ‫ئ‬ ‫ز�را وقنی یک رگاں‬
‫اج� ےہ۔‬ ‫اج��زہ لی ا ا‬ ‫خ‬
‫د�۔‬ ‫دقر �دامت وک رسایتہ ےہ وج اوہنں ےن اینپ دمت ےک دوران ااجنم ی‬
‫ت‬
‫ •مہ ینپمک ےک روہب لمع رےنہ یک ا�ہل� ی� اک ووثق ےک اسھت االعن‬ ‫ق‬
‫رکےت ہ ی� ۔‬ ‫رط�‬ ‫صصح داری اک ی‬
‫ن‬ ‫ق‬
‫� یک‬ ‫رتہب� روا ی�ات یک وکیئ الخف ورزی ی‬ ‫اکروپر� مظن و قسن یک ی ن‬ ‫ی ٹ‬ ‫اظ�ر رکےن واال ومرہخ •‬ ‫رط� اور ااضیف ولعمامت ہ‬ ‫ینپمک ےک صصح داری ےک ی‬
‫ت‬
‫یئگ ےہ۔‬ ‫‪ 31‬دربمس‪2020‬ء � اک ب ی�ان ہحفص ‪ 190‬رپ درج ےہ۔‬
‫ٹن‬
‫ر� انجب ااسحن الہ ٰی کلم •ذگہتش ‪ 6‬ب�رس ےک کل�ی�دی امیل اور ا ی‬ ‫ئ ٹ‬ ‫دربمس ‪2020‬ء ےک دوران رتحمہم ی‬
‫ٓرپ� ادعادوامشر اک الخہص ہحفص ربمن‬ ‫ف‬ ‫رم� کلم (ڈا� ی ر‬ ‫ش ئ‬
‫خت‬ ‫ی‬ ‫ت‬
‫‪ 106‬رپ درج ےہ۔‬ ‫ک۔‬ ‫یک ا�ل ہ� یہ) ےن ‪ 1800‬ی�رز ‪ 762.21‬روےپ یک ق�یم� م �رو� ی‬
‫ٹ �ز‬ ‫ٹ‬
‫ڈ� یو� وک‪ ،‬ارگ وہں وت‪ ،‬امیل‬ ‫وا� االدا ی�‪ ،‬اقونین اچر�ج�ز اور ی‬ ‫ • ج ب‬

‫‪98‬‬
 ‫‪ABBOTT PAKISTAN 2020 ANNUAL REPORT‬‬

‫ی ن‬
‫المزم وک‬ ‫م اےنپ‬ ‫وسحمس وہ ریہ ےہ ہک مہ آزامشئ ےک ان دونں ی‬
‫م رتہبی‬‫ب��زسن رپوس�یس ی‬
‫ماب رےہ ‪ ،‬اور اس ےک اسھت‬ ‫م اک ی‬ ‫�ج�ذےب ےس ومعمر اور رپزعم رےنھک ی‬
‫ن �ٹ ن‬ ‫ت‬ ‫ف‬ ‫ث‬
‫� وک یھب اینپ رطف وتمہج رکےن ی‬ ‫ٹ‬
‫م‬ ‫رتہب� �یل� � ن ش ن‬ ‫اسھت مہ ا�ہل� ی� ےک احلم ی‬ ‫وم� ونصماعت �رامہ نرکےن ےک‬ ‫عمار یک احلم وفحمظ اور ر‬ ‫آپ یک ش ینپمک ایلعٰ ی‬
‫ل�‬
‫ی‬ ‫�‬ ‫�‬
‫چ‬
‫ماب رےہ۔ اس ےک اسھت ‪ ،‬ت مہ اج �� ی�ی ےک اےنپ وبضمط ےلسلس وک م ی د‬
‫�ز�‬ ‫اک ی‬ ‫ےئل وک�اں ےہ ‪ Covid-19‬یک و�اب یک وہج ےس آےن واےل �ج�وں اور‬
‫ہ‬ ‫یم‬ ‫�عل�‬
‫ل اور‬ ‫عمار رتہب انبےن تےک ی‬ ‫راکووٹں ےک �باووجد مہ ےن اینپ ونصماعت اک ی‬
‫رشاتک داری‬ ‫وبضمط اور مکحتسم انبےت رےہ۔ ی اداروں ےک اسھت �اری ق‬ ‫�‬ ‫م‬ ‫�ع‬
‫رط�وں ےس‬ ‫م ‪ ،‬اور مہ ففلتخم ی‬ ‫ا� دحمود ادناز ی‬ ‫ارگہچ ی‬ ‫یھب اجری ریہ ‪،‬‬ ‫ی‬
‫اس ےک اسھت اسھت وضایطب‪ ،‬افحیتظ اور اموحلی ایت اقتوضں یک ل رکےن‬
‫ش‬ ‫ن ش‬ ‫ل رسام�ی اکری اجری ریھک ۔ ان ادقاامت ی‬
‫ب‬
‫� ےک رجت�ات �رامہ رکےن ےک‬ ‫� اور ارٹنن پ‬ ‫ی‬
‫ابلط وک وروچلئ رٹ� پ‬ ‫شن‬ ‫م ئاے رھتی‬ ‫ےک ی‬
‫ی‬ ‫م‬ ‫ک�‬
‫ٹ گ�ی� ی �پ� ی ن‬
‫ب‬
‫اق� وہےئ۔‬ ‫(‪ Accelerator‬ن‪ ،)Abbott Agility‬ش�اپ �ر �‪ ،‬آرپ�‬ ‫ٹ‬ ‫�ڈ ش‬
‫ی ش ن �ز‬ ‫ڈ�وٹنمپل وفرم �الم ہ ی�۔م ی�ز�د ب�رآں اعیمل‬ ‫ر� وفرم اور ��یک�کل اسکل��ز ی‬
‫ل پ‬ ‫ی‬
‫آرپ� ےک الب لطعت‬ ‫اتبےت وہےئ رخف ےہ ہک ہ�اری وکوششں قےن‬ ‫� �ی ق‬ ‫ہی‬ ‫ی‬
‫د�ر � االوقایم رامنہ دہا�ات ےک‬ ‫ن‬ ‫ی‬ ‫ب‬ ‫ی‬ ‫ت‬
‫ی �ڑ‬ ‫ن‬ ‫عمارات اور ش ش‬
‫ادارہ تحص(‪ )WHO‬ےک ی‬
‫م ب�ی راکووٹں‬ ‫� انب ی�ا سج یک انب رپ ‪ ،‬اکومں ےک ی‬
‫رط�وں‬ ‫لسلست وک ی ی‬ ‫وک� لسلسم اجری ریھک اج ریہ‬ ‫ی‬ ‫ل‬
‫�ڑ‬
‫اطمقب م�یل یک حطس ب�اھےن ےک ی‬
‫�ع‬
‫ےک �باووجد ادارے وک اےنپ ادہاف احلص رکےن ی‬
‫م دمد یلم ۔‬ ‫ہ ی�۔‬

‫یث ت‬ ‫اجری رےھک وہےئ ےہ اور‬

‫ن‬
‫آپ یک ینپمک ابتمدل وتا�ایئ نےک ذراعئ یک التش ن‬
‫ح‬ ‫اعیمل ی‬ ‫� بصن رکےکچ ہ ی�۔‬ ‫الپ� رپ ‪ 1,972‬یسمش پ ی‬ ‫ٹ‬ ‫اس ےس ےلہپ یہ وکریگن‬
‫ا� اینپ پ ی� ن ٹ‬
‫یبٹ‬ ‫م یبٹ‬ ‫ق‬
‫ینپمک یک اِن ادقار رپ لمع پ ی�را ےہ ہک یا� تحص دنم‪،‬‬ ‫ر� ت‬ ‫ا� �پااتسکن وک ب‬
‫ولگ� الکسن اے‬ ‫اعت� ی‬
‫ب‬ ‫اسٹ یک لسلسم رتہبی ےک‬
‫ش‬ ‫ی ٹ ی ن‬ ‫�� یف�ی ش‬
‫م ذہم دار اورمکحتسم اکرو�باری ادارے امہ رکدار‬ ‫�ر ی‬ ‫اعفل اعمرشے یک ی‬ ‫ی‬ ‫رس ک�ی� ن� ےس ونازا گی ا ق ‪ ،‬وج ب‬
‫یہ‬ ‫ت‬ ‫ث‬ ‫عمار اور آرپ� وصنمہب‬ ‫ا� م ام� ےک ی‬
‫ہ‬
‫ح ےک وحاےل ےس �ارے زعم یہ ےن � وہ‬ ‫ادا رکےت ہ ی�۔ اعیمل ی‬
‫ی‬ ‫ت‬
‫رک� ےہ۔‬
‫دصت� ا‬ ‫ی‬ ‫دنبی ےک لمع یک‬
‫ت‬
‫ذر� مہ اکم نرکےت ہ ی�‪ ،‬ایس زعم یک دبول مہ‬ ‫راہتس داھک ی�ا ےہ سج ےک ی‬ ‫ت‬
‫رسرگموں ی‬
‫ی‬ ‫المزم رپ رےتھک ہ ی�‪ ،‬ایس یک یب‬ ‫ت‬
‫اعتون‬ ‫م‬ ‫مہ‬ ‫رپ‬ ‫اد‬ ‫�‬ ‫ن‬ ‫ولوگں وک‬ ‫رکےن یک رغض ےس آپ یک ینپمک ےن‬ ‫�ریق اور �ڑومن ےک اےنپ ادہاف احلص نش‬
‫یث ت‬
‫ح‬ ‫ہ‬
‫�اد رپ مہ اقلعتت اوتسار رکےت ی�۔ اعیمل ی‬ ‫رکےت ہ ی�‪ ،‬اور ایس یک ی‬
‫ب‬ ‫رگ� ی�ڈ� رپ رسام�ی اکری ت نیک ےہ۔ش اس یک‬ ‫اپ ی‬ ‫ادعتساد ب�اھےن تاور �زاس یکم ش ن‬
‫�‬ ‫�پ�یک�ی ن‬ ‫د�ر اثمولں ی‬
‫ا� �پاچن‬‫ل یبٹ‬‫ڈاھےنل نےک ی‬
‫ق‬ ‫م‬ ‫ےک وصحل یک اوگنمں وک مکحتسم وصترات ی‬ ‫بی� �الم ےہ۔‬ ‫ص�‬ ‫�‬ ‫م ی� راتفر ��ی��وں اور �ج�گ الزنئ یک‬ ‫ی‬
‫یی ن‬ ‫ت‬ ‫ت‬ ‫ن‬
‫عمار اور ظفحت وک � انب�ا‪ ،‬اےنپ اموحل‬ ‫�ادی � ج یر�ات رپ وتہج رھکا ےہ‪ :‬ی‬ ‫ب ی‬
‫ہ ت ن‬ ‫ن‬ ‫چی ن‬ ‫ن‬ ‫ن‬
‫ا� ید�ا اور‬ ‫� وک مکحتسم رک�ا‪ ،‬اےنپ ولوگں وک ی‬ ‫یک افحتظ رک�ا‪ ،‬اینپ الپسیئ‬ ‫ا�این واسلئ‬
‫ن‬
‫اعمرشے ےک اسھت اعتون رک�ا۔‬ ‫ن‬ ‫غ‬
‫�ج‬ ‫چ��یل�‬ ‫م ی‬ ‫م ‪ 2020‬ء ی‬ ‫‪ Covid-19‬اعیمل و�اب یک وصرت ی‬
‫�ر ومعمیل ث ��ز‬ ‫ٹ‬
‫ی‬ ‫ن‬
‫کا‬
‫اتم� ی‬ ‫رسرگموں وک ر‬ ‫د�ا رھب ےک اکرو�باری‬ ‫ی‬ ‫ےن‬ ‫ب‬ ‫ا‬ ‫�‬ ‫و‬ ‫اس‬ ‫ا۔‬ ‫ی‬
‫�‬ ‫ال‬ ‫راکو�‬ ‫ی‬ ‫اور‬
‫امدعب وااعقت‬
‫ت ی خ‬ ‫کا ےہ ہک وہ امسیج دوری یک رضورت یک قوہج ےس‬ ‫ےہ اور ولوگں وک وبجمر ی‬
‫رط� اکر‬ ‫ی‬
‫اق� ِ ذرک ی‬
‫دبت�‬ ‫مان وکیئ ب‬‫اسل نےک ااتتخم اور اس روپرٹ یک �ار�ش ےک در ث ی‬ ‫ادارے ےک ادہاف ثےک وصحل ےک ےئل اےنپ ق‬ ‫‪ ،‬اکم رکےن اور ئ‬
‫ی �ڑ‬
‫� وہیئ‪ ،‬ہن یہ ینپمک یک امیل ی ن‬
‫وپز� وک اتم�ر رکےن واےل وصنم�بااجت‬ ‫روامن ی‬ ‫ی‬
‫دبت� ال� سج ےک �باع افالصیت اکم رکےن ےک رط�وں یک‬ ‫ی‬ ‫م ب�ی ی‬
‫� �ی اتبےت وہےئ وخیش وسحمس وہ ریہ ےہ‬ ‫رضورت اسےنم آیئ ےہ۔ ہ ی‬
‫ک ےئگ۔‬‫ی‬
‫م ترھگ ےس اکم (‪ )work from home‬اور‬ ‫وصرت احل ی‬ ‫ِ‬ ‫ہک ذموکرہ‬
‫�ز‬
‫�ج�زوی وٹفشں ےک ااظتنامت رپ ی�ی ےس لمع درآدم رکےن یک وہج ےس‬
‫اکرو�باری دوشار ی�اں اورلبقتسم اک رظنم‬ ‫ی ش ن �ز‬
‫کا گی ا ج ب‬ ‫ی‬ ‫ی ن‬ ‫ہ‬
‫� ہک اےنپ آرپ�‬ ‫رکدار ادا ی‬‫�ارے المزم یک افحتظ تم امن ی�اں ی ق ن‬
‫ث‬ ‫ن‬ ‫ن ئ‬ ‫� انب ی�ا گی ا۔ آپ یک ینپمک ےن اس‬ ‫دسایب وک یھب ی‬ ‫ونصماعت یک لقتسم ی‬ ‫اور‬
‫کا ےہ ۔‬‫اتم� ی‬ ‫رسرگموں وک ر‬ ‫ی‬ ‫م اکرو�باری‬ ‫د�ا رھب ی‬‫وکرو� وا�رس یک و�اب ےن ی‬
‫ا‬ ‫یق ن‬
‫�چ ت‬ ‫�بات توک � انبےن یک ہ�ر نکمم وکشش یک ہک وفحمظ رطز لمع وک اس رطح‬ ‫ی‬
‫االبغ ےک اور یا� دورسے ےس �بات ی رکےن‬ ‫ہ‬ ‫ت‬
‫ی ن‬ ‫�ارے قاکم رکےن ےک‪ ،‬ث‬ ‫وص�بایئ وکحوتمں یک رامنہ‬ ‫ا� او ‪ ،‬وافیق اور‬ ‫ڈ�و ی چ‬ ‫ر� د ی�ا اجےئ ہک ب ی‬ ‫ےس � ی ب‬
‫رط� توں ج رپ اس ےن ا�ر ڈاال ےہ۔ آپ یک ینپمک ےن اےنپ المزم یک‬ ‫ےک ی‬ ‫ت‬ ‫ف‬ ‫ی ن‬
‫ی‬ ‫المزم وک دمد �رامہ یک اجےئ �اہک وہ اکم‬ ‫دہا ی�ات رپ یتخس ےس لمع وہ ‪ ،‬اور‬
‫رسرگموں‬ ‫ک ہک وہ ادارے یک‬ ‫ا� ااظتنامت ی‬ ‫السیتم وک � یر� دی اور ی‬ ‫رھک اور ز ی�ادہ ےس ز ی�ادہ اتنجئ دے ی‬ ‫اجری ی‬
‫ہ‬ ‫ہ‬ ‫ت‬ ‫کس۔‬
‫ر�۔ق ن�اری‬
‫ی‬
‫د� ی‬ ‫افالصیت ہ وطر رپ اومر ااجنم ی ت‬
‫ی‬
‫اک لسلست اجری رےتھک وہےئ‬
‫ی ٹ‬ ‫ن‬ ‫ن‬ ‫ت‬
‫ی‬
‫دسایب وک � انبےن‬ ‫اصلخمہن وکوششں ےس امرک م �اری ونصماعت یک ی‬ ‫د� اور ی‬ ‫ی ن‬ ‫یبٹ‬
‫ا� اےنپ اسھت المےئ‬ ‫المزم وک رابغ رکےن ‪� ،‬ریق ی‬ ‫ا� اےنپ‬
‫م دمد یلم۔‬ ‫ی‬ ‫یہ‬ ‫ت‬
‫الصح رپ رخف وسحمس رکیت ےہ۔ � �ی اتبےت وہےئ وخیش‬ ‫ی‬ ‫رےنھک یک‬

‫‪99‬‬
‫‪ABBOTT PAKISTAN 2020 ANNUAL REPORT‬‬

‫ن‬ ‫ت‬
‫ادنروین امیل رٹنکوزل اک ومزوں وہ�ا‬ ‫ا� خ اظنم ی�ار رک ےک‬
‫ت‬ ‫�� ن‬
‫رگناین اک ی ت‬
‫اہبو یک �بااضہطب خ‬
‫ا نٓپ یک ینپمک ےن دقن رمق ےک ٔ‬
‫تش‬ ‫ث‬ ‫ئ ی ٹ‬ ‫کا ےہ سج ےک تحت دقن روقم یک آدم اور ا�راج اک م�ی�ہ اگل ی�ا اج�ا ےہ‬ ‫�اذف ی‬
‫د�‬ ‫ی‬ ‫ی‬
‫وبرڈ آف ڈا�ر�رز ےن امتم زنشکنف م ومٔ�ر ادنروین امیل رٹنکوزل � ی‬ ‫ہ‬
‫اور �بااقدعیگ ےک اسھت اس ق نیک رگناین یک اجیت ےہ۔ اس رطح روقم یک ر‬
‫�‬
‫ٓڈٹ ان امیل ئرٹنکوزل ترپ لمع درآدم یک‬ ‫ا‬ ‫ادنروین‬ ‫ٓزاداہن‬ ‫ا‬ ‫اک‬ ‫ینپمک‬ ‫یک‬ ‫ٓپ‬ ‫ا‬ ‫۔‬‫�‬ ‫ی‬ ‫ہ‬ ‫ت‬ ‫دسایب وک ی ی‬
‫ت ت‬
‫و� ہب ی‬ ‫ق ت‬
‫ی ٹ‬ ‫ت‬ ‫ئ‬ ‫� انب ی�ا اج�ا ےہ ہکبج افلض رمق وک رسام�ی اکری‬ ‫ق‬ ‫افک� ی‬
‫�بااقدعیگ ےس اج��زہ یلاےہ ہکبج آڈٹ مک اس اک اج��زہ ل� ی�ی ےہ۔‬ ‫ت‬ ‫رط�وں ی‬
‫کا ا‬
‫اج�‬ ‫م رھک رک رتہب ےس رتہب انمعف احلص ی‬ ‫ےک فلتخم ومزوں ی‬
‫ےہ۔‬
‫ہ‬ ‫ی‬
‫ا�ار وقیم �خ�زاےن م �ارا ہصح‬ ‫خت‬
‫ینپمک افلض روقم اامعتسل رکےن ےک وحاےل ےس یا� اتحمط تمکحِ یلمع ش ی‬
‫�ز ٹ‬ ‫ٹ‬
‫ت‬
‫ڈ�ویٹ اور یس ی� ی‬ ‫وط� دمیت رسام�ی اکری ی‬ ‫� ت� ی‬ ‫رکیت ےہ ج ب‬
‫مس فلتخم رساکری‬ ‫ز�ر اوتلا ےہ �ی روقم ومعامً �ارٹ آپ یک ینپمک ےن امکن ی�‪ ،‬مٹسک ی‬ ‫بن‬
‫ی ن‬ ‫ی ن‬ ‫ت‬ ‫یل یو��ز یک دم ی‬ ‫ہ‬ ‫ی‬
‫� ڈ�پازسٹ م اگلیئ اجیت ی�۔‬ ‫رٹم ی‬
‫م وکحم وک ‪4,606‬لم روےپ (‪2019‬ء ‪5,211 :‬لم‬
‫ک ہ ی�۔‬ ‫روےپ) ادا ی‬
‫ینپمک یک اکررکدیگ یک دقر پ ی�ایئ‬
‫اموحل‪ ،‬تحص اور افحتظ(ای ی چ‬
‫ا� یا�)‬ ‫ااہظر�‬
‫ی‬ ‫یئک رطح ےک‬ ‫ی‬
‫ااظتنم ن‬ ‫ل‬‫ینپمک یک اکررکدیگ یک دقر پ ی�ایئ ےک ی‬
‫یبٹ‬ ‫م تعنص یک ومن‪ ،‬رسمہ پ ی‬
‫مکوں یک ہقلعتم اعماجلیت‬ ‫اامعتسل رکیت ےہ نج ی‬
‫ا� ارتعاف رکیت ےہ ہک رتہب تحص‪ ،‬وبضمط اعمرشہ اور ز ی�ادہ نئمطم‬
‫ااہظر� اور‬
‫کل ّ‬
‫اکررکدیگ‪ ،‬ی اعمیش‬ ‫یک‬ ‫اسولں‬ ‫ذگہتش‬ ‫‪،‬‬ ‫م یش ن‬
‫وپز�‬ ‫وبعشں ی‬
‫ل تحص دنم اموحل رضوری ےہ۔ آپ یک ینپمک ہ ر‬
‫�‬ ‫ی‬
‫زدنگوں ےک ی‬ ‫ی‬ ‫ش‬ ‫ث‬
‫ل صلخم ےہ‬ ‫ل تحص دنم اموحل یک افحتظ ثرکےن ےک ی‬ ‫یا� ےک ی‬ ‫ینپمک رپ ا�ر ادناز وہےن واال اکرو�باری اموحل �الم ہ ی�۔‬
‫ن‬ ‫قق‬
‫اچیتہ ےہ۔‬ ‫اےنپ اکرو�بار ےک اموحلی ایت ا�رات اٹھگ�ا‬ ‫ل وہ‬‫سج ےک ی‬ ‫ک اجےت ہ ی� اور اسل ےک دوران ٹجب ےک وحاےل ےس ی‬ ‫ت‬
‫ی ٹ ی ن �ڈ‬ ‫ی ن ف�یک�چ ن‬ ‫ح‬ ‫تق‬ ‫ئ‬ ‫ٹجب ی�ار ی‬
‫ز�رو و� وٹ ل لف‬ ‫آپ یک ینپمک ےک مو �ر� اقمامت وک ی‬ ‫ت‬
‫ل ب�رو� ادقاامت‬ ‫اکررکدیگ اک �بااقدعیگ ےس اج��زہ لی ا گی ا �اہک االصح ےک ی‬
‫(‪ )zero-waste-to-landfill‬اک درہج احلص ےہ سج اک‬ ‫ک اج ی‬
‫ی‬ ‫کس۔‬ ‫ی‬
‫دوران ےننب واال امتم ہلضف ی�ا‬ ‫ئ‬ ‫رسرگموں ےک‬ ‫بلطم �ی ےہ ہک یتعنص‬
‫ت‬ ‫ت‬
‫اموحل‬‫ےہ۔ ی ن ٹ‬‫کا اج�ا ئ‬
‫ی‬
‫وت دو�بارہ اامعتسل رک لی ا اج�ا ےہ ی�ا اےس ری اس� ی‬ ‫ن‬
‫ااکحتسم اور ظفحت یک اخرط آپ یک ینپمک ےک رکدار وک اونا�روم‬ ‫ےک ن‬ ‫ب ی‬
‫�ادی رطخات اور ان اک دنبوتسب‬
‫� ل‬
‫ا کیسی �ی�س ےک اسالہن یا�وارڈز ‪2020‬ء ےس رسااہ گی ا۔‬
‫ااظتنم رطخ (‪)risk management‬ےک ومجمیع رپورگام اک‬ ‫ینپمک ےک ِ‬
‫ث‬
‫ی ٹ‬
‫اکروپر� یک امسیج ذہم داری (یس یا� آر)‬
‫واےل وعالم مک‬
‫ا� ڈاےنل ی ن ئ‬
‫دصقم �ی ےہ ئہک ینپمک یک اکررکدیگ رپ ہنکمم یفنم ر‬
‫ی‬
‫ااظتنم‬ ‫اج�۔ینپمک اک ومجمیع ِ‬
‫ااظتنم رطخ ینپمک ئ یک سر‬ ‫ک ی‬ ‫ےس مک ی‬
‫ر�رز ےک ملع ی‬ ‫ی ٹ‬ ‫ت‬
‫اینپ امسیج ذہم داری وک یتھجمس‬ ‫آپ یک ینپمک اعمرشے ےک وحاےل ےس‬ ‫م‬ ‫ی�ٹ‬ ‫ڈا�‬
‫پ ش‬ ‫ٓف‬ ‫ا‬ ‫وبرڈ‬ ‫اتنجئ‬ ‫ےک‬
‫ت‬ ‫ن‬ ‫اس‬ ‫اور‬ ‫ےہ‬ ‫ا‬ ‫وہ�‬ ‫ےک �پاس‬
‫یث ت‬ ‫ی ٹ‬ ‫�‬
‫در� ارٹس �جک‪ ،‬امیل‪،‬‬ ‫� نم ینپمک وک ی‬ ‫ی‬ ‫ہ‬
‫الےئ اجےت ی� ش۔ ن اس ےک ی ج‬
‫دورانِ اسل‬ ‫ح ےس ینپمک ےن‬ ‫اکروپر� ادارے یک ی‬ ‫ےہ۔ا� ذہم دار‬ ‫غ ی‬
‫ن یش ن ن‬ ‫ش‬ ‫ی‬
‫�ڈ� ن‪ ،‬ا��ڈس‬ ‫ی‬ ‫ی‬
‫ان م لور افؤ�‬ ‫ع‬
‫انمعف شخب اداروں وک ط�ی�ات ی‬ ‫ی‬ ‫اکرو�باری اور آرپ� رطخات یک �ادنیہ‪ ،‬ان یک دقر پ ی�ایئ اور ازاہل ی‬
‫کا‬
‫پ ت �پ� ی ش�� ٹ‬ ‫د�۔ ن‬ ‫ٹ‬ ‫یئک ت �ر �� ش ن‬ ‫ت‬
‫اسال ‪� ،‬‬ ‫راےئ آاغ اخن ی� یو� ن‬
‫وریٹس ش‬ ‫اسال‪ ،‬پ شی��� وبہبد وساسیٹئ ب�‬ ‫پ‬ ‫اج� ےہ۔‬ ‫ا‬
‫ن‬ ‫ی‬ ‫ہ‬ ‫ش‬
‫� �الم ی� ہ‬ ‫ن‬ ‫ن‬ ‫ی‬ ‫ن‬
‫ڈو��ژن ےن‬ ‫۔�ارے ی�ورٹ� ی‬ ‫ا� افؤ��ڈ� اور دمحمی ڈلب ب ی‬ ‫ی �ڈ‬ ‫ی ٹ‬ ‫ٹ ک ن‬
‫ک نا۔ اس اک‬
‫ل واہں اک دورہ یھب ی‬ ‫رپاو��ڈسن وہم ےک وچبں ےس الماقت ےک ی‬ ‫ی‬ ‫اکروپر� ٹوگرسنن)‬ ‫اسل ےک دوران لس���ڈ شم�پ��ی��ز (وکڈ آف‬ ‫اس ل� ش ن‬
‫ی‬
‫ی‬
‫ال� اور خاس ےک اسھت اسھت ا� اےنپ‬
‫ہ ٹ ن‬
‫دصقم وچبں ےک رہچے رپ رکسما� ا‬ ‫‪2019‬ء یک افسر�ات ےک تحت رکس مک ئ ےن اکرو�باری‬ ‫ر� ی����ز‪ ،‬ن‬ ‫یو‬
‫ی‬
‫�ال وخد رےنھک ےک �بارے م‬ ‫آپ ےس تبحم رکےن‪ ،‬تحص و افصیئ اور اانپ ی‬ ‫رطخات اور ا� دور رکےن ےک وصنمےب اک ومجمیع اج��زہ لی ا۔ ےسج وبرڈ‬ ‫ی‬
‫ن‬ ‫پ ش‬
‫آاگیہ ید�ا اھت۔‬ ‫کا گی ا ۔‬
‫� ی‬ ‫وک ی‬

‫و� نج رطخات اک اسانم ےہ ان ی‬‫ِ ق ت‬

‫روےپ یک‬
‫ش‬ ‫پ‬
‫ااتسکین‬ ‫�‬ ‫م‬ ‫ینپمک وک اس‬
‫�ڑ‬ ‫ت‬ ‫ی‬
‫دقرم یمک یک انب رپ اکرو�باری الگ اک لسلسم ب�انھ اور اگنہمیئ �الم‬
‫ہ ی�۔‬

‫‪100‬‬
 ‫‪ABBOTT PAKISTAN 2020 ANNUAL REPORT‬‬

‫ئ ی ٹ‬
‫ڈا�ر�ران یک روپرٹ‬
‫ن‬
‫انمعف م� مہ‬
‫س‬ ‫ق‬ ‫ئ ی ٹ‬
‫وہےن واےل امیل‬
‫پ ش‬ ‫متخ‬ ‫وک‬ ‫‪2020‬ء‬ ‫دربمس‬ ‫‪31‬‬ ‫ےک‬ ‫ینپمک‬ ‫رز‬
‫ر�‬ ‫آپ ےک ڈا�‬
‫ن‬ ‫� رکےت وہےئ‬ ‫اسل ےک آڈٹ دشہ امیل وگوشارے اور اس رپ اینپ روپرٹ ی‬
‫ئ ٹ‬
‫ڈا� یر�رز رسمت ےک اسھت یمتح دقن انمعف م� مہ یف ہصح ‪ 25.0‬روےپ یک‬
‫س‬ ‫ق‬
‫وخیش وسحمس رکےت ہ ی�۔‬
‫رکےت ہ ی� (‪2019‬ء ‪ 7.5 :‬روےپ یف ہصح)‪ ،‬ن وج ہک ‪2020‬ء ےک‬ ‫افسرش ش ئ‬
‫س‬ ‫ق‬‫م�‬
‫ک ےئگ وبعری دقن انمعف مہ ‪ 15.0‬روےپ یف‬ ‫دوران ی�ر وہڈلرز وک ادا ی‬ ‫م‬‫روےپ ہ��زاروں ی‬ ‫امیل اتنجئ ‬
‫ہصح ےک العوہ ےہ (‪2019‬ء‪)Nil :‬۔‬ ‫ٹ‬
‫‪6,243,559‬‬ ‫اسل اک انمعف لبق از ی ‬
‫�‬
‫ی ٹ‬ ‫�ز‬ ‫ٹ‬
‫امرک یک اکررکدیگ‬ ‫زرمے ےک احلظ ےس یس اور‬ ‫(‪)1,708,310‬‬ ‫ی ‬
‫�‬
‫ن شن‬ ‫ٹ‬
‫ن‬
‫ب‬ ‫ی‬ ‫ف خت‬ ‫ی‬ ‫ف ی �ڑ‬ ‫ی �ز‬
‫ی‬
‫ٹ‬
‫‪4,535,249‬‬ ‫انمعف دعب از ی ‬
‫�‬
‫یھ ہکبج ف ی�ورٹ� یک �رو� م ی‬
‫�ادی‬ ‫� ب�‬ ‫‪ 12.6‬ش ن د‬ ‫س‬ ‫یک‬
‫ف‬ ‫افراموس�‬
‫ےک ب ب‬
‫خت �ڑ‬
‫ب‬ ‫ن ی ی س�پل�یم� ن ٹ‬ ‫ٹ‬
‫س ‪37.5‬‬ ‫ئ‬ ‫ےنھ‬ ‫�‬ ‫رو�‬ ‫�‬ ‫یک‬ ‫�‬ ‫ورٹ�‬
‫ت ئ‬ ‫�‬ ‫ےک‬ ‫راد‬
‫ا�‬ ‫فوطر رپ �باغل‬ ‫د�ر اجعم آدمین ی‬ ‫ی‬
‫ئن‬ ‫(‪)232,771‬‬ ‫–� اکنل رک ‬
‫م ومجمیع‬ ‫کر‪ ،‬ڈا�گ��اکٹس اور ذ یا�� بط�یس یک ی‬
‫کر ی‬ ‫وہا۔ رنجل ہ��یل�ھ ی‬ ‫� ااضہف ف‬ ‫ی د‬
‫غ‬
‫� ااضہف وہا۔‬‫وطر رپ ‪ 4.5‬ی د‬ ‫‪6,405,498‬‬ ‫ی‬
‫ذگہتش اسل اک �ر صتخم انمعف ‬
‫ئ‬ ‫ت‬
‫‪10,707,976‬‬ ‫دساب انمعف ب�راےئ ااصتخص ‬
‫ی‬
‫تعنص اک ومعیم اج��زہ‬
‫ک وی آیئ اے (ےسج ےلہپ آیئ یا� یا� اہک‬ ‫ر�رچ ےک اعیمل ادارے آیئ ی و‬ ‫افرام ی‬
‫ااصتخص‪:‬‬
‫ی‬ ‫ٹ‬ ‫ت‬
‫اطمقب �پااتسکن نم دوا اسزی شیک ئتعنص اک‬ ‫ث‬ ‫ڈ� ےک‬ ‫اج�ا اھت) ےک اجری رکدہ ی ا‬ ‫ن‬
‫ی ٹ‬
‫امرک ف ی�ر ذگہتش‬ ‫مکوں اک‬‫کر اوقلیم قپ ی‬
‫(‪ )734,252‬وموجدہ مجح ‪ 3.14‬ارب ڈارل ےہ۔ ی‬ ‫یمتح انمعف م�قسمہ ‪2019‬ء یف ہصح ‪ 7.5‬روےپ ‬
‫� ےہ۔‬
‫ت‬
‫ےہ اور اِس و� رصف ‪ 31‬ی د‬ ‫یج‬
‫دتبر�‬ ‫دنچ ب�روسں ےس‬ ‫ن‬
‫ٹھگ راہ ن‬
‫ٹ‬
‫نج م ےس نرصف‬ ‫ی‬ ‫ہ‬
‫مکاں اکم رک ریہ ی�‬ ‫س یو� پ ی‬ ‫م ‪623‬ن افرام ی‬ ‫(‪� )1,468,505‬پااتسکن ی‬ ‫وبعری انمعف م� مہ ‪2020‬ء یف ہصح ‪ 15.0‬روےپ ‬
‫س‬‫ق‬
‫ث‬ ‫ث‬
‫کر اوقلیم پ ی‬
‫مکوں‬ ‫مکاں ہ ی�۔ فلتخم ووجاہت یک انبء رپ یئک ی‬ ‫اوقلیم پ ی‬
‫ن‬ ‫ش‬ ‫‪ 26‬ی‬
‫کر‬ ‫غ‬
‫ی �ز ی ٹ‬ ‫ل ی‬
‫ل ہ ی�۔‬ ‫مس ی‬ ‫‪ 8,505,219‬ےن اےنپ آرپ�‬ ‫�ر صتخم انمعف ‬ ‫آدنئہ اسل ےک ی‬

‫خ‬
‫رسام�ی اجیت ا�رااجت‬ ‫امیل اکررکدیگ‬
‫ت ن ت ق‬ ‫ف ی �ڑ‬ ‫ومجمیع یس�ز ذگہتش اسل ےک اقمےلب ی‬
‫ب‬
‫�دا رکدہ ےئن وماعق وک �روےئ اکر‬ ‫پ‬
‫ذر� ی‬ ‫آپ یک ینپمک �ک��یکی ت�ر�وں ےک ی‬
‫ی‬ ‫� ب�یھ۔ ن اخم انمعف‬ ‫د‬ ‫م ‪17.0‬‬ ‫ف‬ ‫ف‬
‫�ڑ‬
‫اول��ز ی‬ ‫ن‬ ‫ٹ‬
‫ر� رپوڈنشک ی� ج ی‬‫الےن ےک ےئل ج� ید�د � ی ن‬ ‫� قادی وہج‬ ‫سج یک یا� ب ت ی‬ ‫ا‬ ‫گی‬ ‫ا‬
‫ٓ‬ ‫رپ‬ ‫د‬ ‫�‬ ‫ی‬ ‫‪34.6‬‬ ‫رک‬ ‫ھ‬ ‫�‬ ‫ب‬ ‫ےس‬ ‫ن‬ ‫د‬ ‫ی‬
‫‪ 28.3‬ن ش‬
‫�‬
‫م رسام�ی اکری اجری رےھک‬ ‫ی‬ ‫ف خت‬ ‫ی ی‬
‫م ااضےف‬
‫ت‬
‫داوار� ی‬
‫� ی‬ ‫�ڑ‬
‫ا�ا اسزی یک ادعتساد ب�اھےن‪ ،‬پ ی‬
‫ش‬
‫وہےئ ےہ۔ینپمک ےن ی‬ ‫ورٹ� زرمے یک رتہب اکررکدیگ فیھت۔ �رو� اور � ےک‬ ‫ف‬ ‫ہ خ�ارے �‬
‫�ز‬ ‫ت‬ ‫�ڑ‬
‫ی ن‬
‫لم‬ ‫ل اسل ےک دوران ‪1,380‬‬ ‫الپ� یک اکرزگاری رتہب انبےن ےک ی‬ ‫اور ن ٹ‬ ‫م یمک‬ ‫� ےک احلظ ےس ان ی‬ ‫� ب�ھ ےئگ �امہ یس ےک ی د‬ ‫ا�رااجت ‪ 4.9‬ی د‬
‫ماں‬‫‪ COVID‬یک وہج فےس رفسی اور ااہتشری نرسرگ ی‬ ‫خ‬ ‫س‬ ‫آیئ سج اک ب ب‬
‫روےپ یک رسام�ی اکری یک۔‬ ‫ی �ڑ‬ ‫ی‬
‫�ادی وہج‬ ‫ب‬
‫� ب�ھ ٹےئگ شسج یک ی‬ ‫م یمک یھت ۔ د�ر ا�رااجت ‪ 35.5‬د‬ ‫ی‬
‫یس پ�� ن‬ ‫�‬ ‫�‬
‫م ااضےف ئیک وہج ےس وررکز فرپوٹف �پار ن ی�� ڈنف ب ی و‬ ‫انمعف ی‬
‫ل�یک�وڈیٹ‬
‫(ڈ� یپ یپ‬
‫اہبو یک تمکحِ یلمع‬
‫اور رمق ےک ٔ‬ ‫ر�رچ ڈنف (یس آر‬
‫ٹ‬
‫ڈ� یا�) اور یسرل ی‬ ‫(ڈ� ی و‬ ‫ب‬ ‫ب‬ ‫ف‬
‫یا�)‪ ،‬وررکز و ی �ی��ر ڈنف ی و‬ ‫ل‬ ‫�‬ ‫ف‬
‫ی‬ ‫ا�) ی‬ ‫ف‬
‫ی ن‬ ‫ی‬ ‫آدمین ذگہتش اسل یک ایس دمّت ےک اقمےلب‬ ‫ےہ۔ د�ر ن‬ ‫ااضہف‬‫ف‬ ‫م‬ ‫ی‬
‫ک ےئگ۔‬ ‫لم روےپ اامعتسل ی‬ ‫رسرگموں ےس ‪8,148‬‬ ‫اسل ےک دوران یلمع‬ ‫ی �ڑ‬ ‫ی‬
‫ل‬ ‫ن‬ ‫�ادی وہج واابجت اک‬ ‫ب‬
‫� ب�یھ سج یک ی‬ ‫م ‪ 116.1‬د‬
‫لم روےپ ےک �یک�وڈ ڈنفز ےھت‬ ‫اسل ےک ااتتخم رپ ینپمک ےک �پاس ‪ 7,489‬ی‬
‫ن‬ ‫ن‬
‫ہ‬ ‫ش‬ ‫قل‬ ‫م دقن رمق‪ /‬ب ی ن �ب�یل�‬ ‫سج ی‬ ‫ٹ ‪ written back‬وہ�ا اھت۔ ان ووجاہت یک انب رپ اسل اک انمعف دعب از‬
‫رسام�ی اکر ی�اں ئ �الم ی�‪ ،‬ہکبج‬ ‫ی‬ ‫�‬
‫� س اور ل دمیت ن‬ ‫�ڑ‬
‫ق‬ ‫م�‬ ‫ی� ذگہتش اسل یک تبسن ‪ 3.24‬ارب روےپ ب�ھ گی ا ۔ یف ہصح آدمین‬
‫ادا� اس ےک‬ ‫رسام�ی اجیت وصنموبں رپ اگلیئ یئگ روقم اور انمعف سمہ یک ی‬
‫‪ 46.33‬روےپ ریہ (‪2019‬ء ‪ 13.28 :‬روےپ یف ہصح)۔‬
‫العوہ ےہ۔‬

‫‪101‬‬
ABBOTT PAKISTAN 2020 ANNUAL REPORT

FORWARD
LOOKING
STATEMENT

102
 ABBOTT PAKISTAN 2020 ANNUAL REPORT

The Coronavirus Pandemic has affected economies STATUS OF THE PROJECTS DISCLOSED IN THE
worldwide, and Pakistan is no different. GPD growth PREVIOUS YEAR
rates have plummeted, inflation rates have soared, while The Company has made significant capital expenditure during
unemployment rates are on the rise as well. Although the the year for the purpose of expanding manufacturing capacity,
economic activity has gained some momentum post relaxation enhancing productivity and improving plant efficiency.
of the nationwide lockdown, the recovery will be gradual and Projects disclosed last year have been completed and are
measured. operational.
Our company exists to help people to live their life to the Brief details of the major projects for 2020 are as follows:
fullest. In our core mission of providing life-changing
healthcare products and solutions, we’ve risen to the • Liquid and tablet manufacturing capacity upgrades; and
challenges of this year. Our diagnostics business has been • Microbiological Lab.
able to deliver different tests in the fight against COVID. Our
primary objective is to provide high quality and effective The Company plans to continue to invest in projects that help
products in both local and export markets. We remain it to achieve its desired objectives.
committed towards enhancing shareholder value while
balancing profitability and investments into projects of SOURCES OF INFORMATION AND ASSUMPTIONS USED
long-term significance. FOR FORECASTS

Despite the COVID-induced economic slowdown, our The Company prepares its annual plans and forecasts in
‘Pharmaceuticals’ and ‘Nutrition’ segments were able to line with the overall strategic direction of the Company.
deliver double digits sales growth. Improvements in margins These plans are approved by the Board of Directors annually.
have been substantially contributed by the improved Periodic reviews of performance are carried out against these
performance of our Nutritional segment. The Company plans to ensure adequate monitoring and control.
continues to face challenges of escalation in costs owing to A number of different sources are used in preparing the
inflation and devaluation of the Pak Rupee. The recent stability plans, including, but not limited to, historical data and figures,
of the exchange rate is welcome, however should the scenario market growth rates, APIs availability etc. Macroeconomic
change, any further devaluation would impact the financial indicators are also taken into account to ensure that factors
outlook. which are beyond the Company’s control are also considered
The Drug Regulatory Authority (Authority) plays a significant while drawing up the Company’s plans. Assistance of external
role in the development of the pharmaceutical industry. The consultants is only taken for areas where Company feels
role of the Authority in resolving the longstanding hardship that it does not have the adequate required level of expertise
pricing issue is appreciated. The new Drug Pricing Policy internally.
notified during 2018 has pricing reviews for exceptional Assumptions used in these plans and the related rationale
situations such as devaluation which is welcomed. We hope behind these assumptions are thoroughly documented and
that the Authority will continue conducting such pricing reviewed. Sensitivity analysis is also carried out to determine
reviews and remain affirmative in helping the industry in the impact of changes in assumptions on the financial
speedy registration of new products. performance of the Company.
The external factors (PESTLE) that might affect the Company
are detailed on page 50. Your Company remains committed in OUR RESPONSE TO CRITICAL CHALLENGES AND
making all efforts to improve profitability through innovation, UNCERTAINTIES
improving efficiency and effective cost-containment The Company has a robust Business Continuity Plan in
initiatives. place to ensure that any adverse or unforeseen events cause
minimum disruption. The Company has also developed a
EXPLANATION AS TO HOW THE PERFORMANCE OF sound mechanism for identification of risks and devising
THE ENTITY MEETS THE DISCLOSURES MADE IN THE appropriate mitigation measures which are regularly
PREVIOUS YEAR monitored and implemented by the management across all
The Coronavirus Pandemic disrupted businesses and major functions of the Company.
operations worldwide during 2020. Our Company responded The uncertainty surrounding the post-COVID era remains.
swiftly and shifted its focus to products and solutions which However, our Company is confident that its overall approach
were the need of the hour. Our products in established to risk management and dealing with uncertainty will enable
pharmaceuticals and nutritional business helped people of all it to tackle critical challenges and uncertainties as and when
ages to maintain and build immunity, while our diagnostics they arise.
business was able to deliver tests which detect anti-bodies and
the virus itself. A coordinated approach from all the business
segments enabled Abbott to deliver relevant and effective
products and solutions.

103
ABBOTT PAKISTAN 2020 ANNUAL REPORT

104
 ABBOTT PAKISTAN 2020 ANNUAL REPORT

106 Key Operating and Financial Data

109 Comments on Financial Ratios

110 Comments on Financial Statements

111 Statement of Cash Flows - Direct Method

112 Graphical Presentation

117 Segmental Review

118 Vertical Analysis

120 Horizontal Analysis

122 Statement of Value Addition and its Distribution

123 Free Cash Flows

124 Dupont Analysis

2020 126 Quarterly Analysis

127 Share Price Sensitivity Analysis

FINANCIAL 128 Statement of Compliance with Listed

Companies (Code of Corporate Governance)

REPORT Regulations, 2019

131 Review Report on the Statement of Compliance

contained in Listed Companies (Code of
Corporate Governance) Regulations, 2019

132 Independent Auditor's Report

136 Financial Statements

190 Pattern of Shareholding

193 Notice of Annual General Meeting

196 Calendar of Financial Events

197 Glossary

Proxy Form

Contact Details

105
 ABBOTT PAKISTAN 2020 ANNUAL REPORT

KEY FINANCIAL INDICATORS

2020 2019

Sales Revenue Rs. in million 35,283 30,156

Return on Equity % 29.1% 9.7%
Earnings per share Rs. 46.33 13.28
Shareholders' Equity Rs. in million 15,590 13,372
Total Assets Turnover Ratio* Times 1.55 1.47
Current Ratio Times 2.30 2.13
Market Capitalisation Rs. in million 73,951 43,740

*Calculated on the basis of average assets.

KEY OPERATING AND FINANCIAL DATA

December 31,
2020 2019 2018 2017 2016 2015

(Rupees in ‘000)

Statement of Financial Position

Fixed Assets - property, plant and equipment 9,070,460 8,267,557 7,191,606 5,419,054 4,443,019 4,017,403
Intangible assets 66,255 78,372 24,879 10,650 16,250 21,983
Other Non-Current Assets 77,292 68,889 66,641 62,618 63,764 68,797
Current Assets 15,701,737 12,337,862 12,998,131 13,695,788 13,122,151 12,380,092
Total Assets 24,915,744 20,752,680 20,281,257 19,188,110 17,645,184 16,488,275

Issued, subscribed and paid-up capital 979,003 979,003 979,003 979,003 979,003 979,003
Capital Reserves 767,608 649,470 533,783 459,761 414,380 381,945
Revenue Reserves 13,843,641 11,743,920 11,722,225 12,917,071 13,199,857 11,588,299
Total Equity 15,590,252 13,372,393 13,235,011 14,355,835 14,593,240 12,949,247

Non-Current Liabilities 2,491,670 1,592,967 1,084,823 898,409 203,477 830,115

Current Liabilities 6,833,822 5,787,320 5,961,423 3,933,866 2,848,467 2,708,913
Total Liabilities 9,325,492 7,380,287 7,046,246 4,832,275 3,051,944 3,539,028

Total Equity and Liabilities 24,915,744 20,752,680 20,281,257 19,188,110 17,645,184 16,488,275

Statement of Financial Position Analysis - Assets Statement of Financial Position Analysis - Equity and Liabilities
9,214 15,702 15,590 2,492 6,834
2020 2020
8,415 12,338 13,372 1,593 5,787
2019 2019
7,283 12,998 13,235 1,085 5,961
2018 2018
5,492 13,696 14,356 898 3,934
2017 2017
4,523 13,122 14,593 203 2,848
2016 2016
4,108 12,380 12,949 830 2,709
2015 2015
0 5,000 10,000 15,000 20,000 25,000 0 5,000 10,000 15,000 20,000 25,000

Rs. in Million Rs. in Million

Non-Current Assets Current Assets Total Equity Non-Current Liabilities Current Liabilities

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

OPERATING AND FINANCIAL TRENDS

December 31,
2020 2019 2018 2017 2016 2015
(Rupees in ‘000)
Statement of Profit or Loss
Net sales 35,283,377 30,155,875 29,719,279 26,088,233 23,387,915 21,170,446
Gross profit 12,221,851 8,527,740 9,801,442 10,088,986 9,367,499 8,227,233
Operating profit 6,320,464 2,563,831 4,359,375 5,852,005 5,593,900 5,012,361
Profit before taxation 6,243,559 2,510,741 4,343,769 5,841,945 5,587,141 5,006,477
Taxation 1,708,310 1,210,856 1,649,436 1,636,713 1,565,349 1,419,741
Profit after taxation 4,535,249 1,299,885 2,694,333 4,205,232 4,021,792 3,586,736
Ordinary cash dividends 3,916,012* 734,252 1,958,006 3,916,012 3,916,012 2,937,009
EBITDA** 7,451,585 3,573,887 5,096,544 6,459,090 6,128,490 5,496,717

Statement of Cash Flows

Operating activities 8,147,958 (160,128) 2,937,218 5,764,509 3,119,545 4,062,034
Investing activities (956,779) (1,588,010) (1,928,955) (1,222,232) (558,237) (672,470)
Financing activities (2,459,817) (1,172,479) (3,901,848) (3,914,985) (2,937,792) (1,450,032)
Cash and cash equivalents at the end of the year 7,488,881 2,757,519 5,678,136 8,571,721 7,944,429 8,320,913
*Includes final dividend amounting to Rs. 2,447.508 million proposed by the Board of Directors subsequent to the year end.
**EBITDA (Earnings Before Interest, Taxation, Depreciation and Amortisation).

Statement of Profit or Loss Analysis - Sales and Other Income Statement of Profit or Loss Analysis - Expenses
35,283 761 23.1 5.3 0.6 0.7 1.7
2020 2020
30,156 352 21.6 5.1 0.7 0.5 1.2
2019 2019
29,719 459 19.9 4.5 0.6 0.8 1.6
2018 2018
26,088 445 16.0 3.6 0.5 0.6 1.6
2017 2017
23,388 421 14.0 3.3 0.5 0.5 1.6
2016 2016
21,170 477 12.9 2.9 0.4 0.4 1.4
2015 2015

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 0 7 14 21 28 35

Rs. in Million Rs. in Billion

Net sales Other income Cost of sales Other charges
Selling and distribution expenses Taxation
Administrative expenses

Statement of Cash Flows Analysis

10,000
8,148
8,000
5,765
6,000
4,062
Rs. in Million

4,000 3,120 2,937

2,000
0
(672) (160)
(558) (1,172) (957)
-2,000 (1,450) (1,222)
(1,929) (1,588)
(2,938) (2,460)
-4,000 (3,915) (3,902)
-6,000

2015 2016 2017 2018 2019 2020

Operating activities Investing activities Financing activities

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

December 31, December 31, December 31, December 31, December 31, December 31,
2020 2019 2018 2017 2016 2015

Ratios Unit

Profitability Ratios
Gross profit margin % 34.6% 28.3% 33.0% 38.7% 40.1% 38.9%
Net profit margin % 12.9% 4.3% 9.1% 16.1% 17.2% 16.9%
EBITDA* margin % 21.1% 11.9% 17.1% 24.8% 26.2% 26.0%
EBIT margin % 17.9% 8.5% 14.7% 22.4% 23.9% 23.7%
Return on equity % 29.1% 9.7% 20.4% 29.3% 27.6% 27.7%
Return on capital employed % 27.6% 9.5% 20.0% 29.3% 27.6% 27.7%
Return on capital employed (average equity and debt) % 30.1% 9.6% 19.4% 29.1% 29.2% 30.1%
Return on assets % 18.2% 6.3% 13.3% 21.9% 22.8% 21.8%
Operating leverage ratio Times 8.62 (28.04) (1.83) 0.40 1.11 2.12

Liquidity Ratios
Current ratio Times 2.30 2.13 2.18 3.48 4.61 4.57
Quick / Acid test ratio Times 1.57 1.09 1.44 2.60 3.35 3.50
Cash to Current Liabilities Times 1.10 0.48 0.95 2.18 2.79 3.07
Cash flows from operations to Sales Times 0.27 0.05 0.17 0.28 0.21 0.26

Activity / Turnover Ratios

No. of days in inventory Days 87.32 88.38 72.42 80.40 84.72 80.75
No. of days in receivables Days 9.51 12.39 12.64 12.56 10.61 8.27
No. of days in payables Days 80.04 82.58 76.84 61.14 55.54 54.89
Inventory Turnover Times 4.18 4.13 5.04 4.54 4.32 4.52
Debtors Turnover Times 38.37 29.47 28.88 29.06 34.48 44.14
Creditors Turnover** Times 4.56 4.42 4.75 5.97 6.59 6.65
Operating Cycle Days 16.79 18.19 8.22 31.82 39.79 34.13
Total assets turnover ratio (average assets) Times 1.55 1.47 1.51 1.42 1.37 1.40
Total assets turnover ratio Times 1.42 1.45 1.47 1.36 1.33 1.28
Fixed assets turnover ratio (average assets) Times 4.07 3.90 4.71 5.29 5.53 5.74
Fixed assets turnover ratio Times 3.89 3.65 4.13 4.81 5.26 5.27

Investment / Market Ratios

Basic / Diluted Earnings per share Rs. 46.33 13.28 27.52 42.95 41.08 36.64
Price earnings ratio Times 16.30 33.64 22.93 16.24 23.30 17.33
Dividend yield ratio % 5.3% 1.7% 3.2% 5.7% 4.2% 4.7%
Dividend payout ratio Times 0.86 0.56 0.73 0.93 0.97 0.82
Dividend cover ratio Times 1.16 1.77 1.38 1.07 1.03 1.22
Cash dividend per share Rs. ***40.00 7.50 20.00 40.00 40.00 30.00
Break-up value per share with / without surplus
on revaluation of fixed assets Rs. 159.25 136.59 135.19 146.64 149.06 132.27
Price to book ratio Times 2.98 2.12 3.05 3.56 5.32 3.78
No. of shares at end of year Number 97,900,302 97,900,302 97,900,302 97,900,302 97,900,302 97,900,302
Market Capitalisation Rs. in million 73,951 43,740 61,780 68,296 93,699 62,167
Market value per share at the end of the year Rs. 755.37 446.78 631.05 697.61 957.09 635.00
Market value per share (High) Rs. 792.38 710.00 750.00 1,145.00 984.90 744.42
Market value per share (Low) Rs. 309.00 302.10 475.00 610.00 575.00 473.19
Contribution to National Exchequer Rs. in million 4,606 5,211 4,988 3,761 3,728 3,043

Capital Structure Ratios

Interest cover ratio Times 82.19 48.29 279.34 581.71 827.62 851.86
Finance leverage ratio % 5.2% 2.9% 1.6% - - -
Weighted average cost of debt % 8.6% 11.3% ****6.9% - - -
Debt to equity ratio % 4.0% 2.2% 1.3% - - -

*EBITDA (Earnings Before Interest, Taxation, Depreciation and Amortisation).

**For average accounts payable, the sum of creditors, accrued liabilities, bills payable and payable to related parties has been used.
***Includes final dividend amounting to Rs. 25.00 per share proposed by the Directors subsequent to the year end.
****Grossed-up on a pro-rata basis, since debt was acquired during 2018.

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

COMMENTS ON FINANCIAL RATIOS

PROFITABILITY RATIOS
Dividend payout ratio increased to 0.86 (times) in 2020
Profitability ratios of the Company, in general, have
from 0.56 (times) in 2019, on account of increase in dividend
improved versus last year, mainly on account of product mix,
per share partially offset by increase in profit after tax.
revisions to products costs and lower operating expenses as
percentage of sales.
Break-up value per share has increased to Rs. 159.25 in
2020 from Rs. 136.59 in 2019 due to increase in total equity
Gross profit margin improved to 34.6% versus 28.3% last
by Rs. 2,217.9 million as compared to prior year on account of
year. Net profit margin increased to 12.9% versus 4.3% last
profit after tax for the year. This has been partially offset by
year in line with the reasons mentioned above.
dividend paid during the year.
LIQUIDITY RATIOS Market capitalisation has increased to Rs. 73,951 million
Cash inflows from operating activities increased versus last in 2020 from Rs. 43,740 million in 2019 due to increase in
year primarily on account of increase in profitability and market price per share to Rs. 755.37 in 2020 from Rs. 446.78
favorable working capital changes. The Company has in 2019.
Rs. 7,488.88 million of cash and cash equivalents as of
31st December 2020 to meet its investment and operational CAPITAL STRUCTURE ADEQUACY
cash requirements.
ANALYSIS
Current ratio (2020: 2.30, 2019: 2.13), quick / acid test Total equity increased by 16.6% to Rs. 15.59 billion
ratio (2020: 1.57, 2019: 1.09) and cash to current liabilities comprising of share capital amounting to Rs. 979.003 million
(2020: 1.10, 2019: 0.48) have improved versus last year mainly which consists of issued share capital of 97,900,302 shares of
on account of higher cash and bank balances. Rs. 10.00 each. Abbott Asia Investments Limited, UK is the
major shareholder of the Company, having 76,259,454 shares
being 77.90% of total paid-up capital.
ACTIVITY / TURNOVER RATIOS
Operating cycle has decreased to 16.79 days in 2020 from The Company’s capital structure includes lease
18.19 days in 2019 mainly due to improved inventory and arrangements, which carries markup at rates ranging from
debtors turnover as compared to last year. 6-month KIBOR plus 0.45% to 6-month KIBOR plus 1.00%
per annum. The long term component is only 2.5% of the
Total assets turnover ratio (average assets) increased total equity and liabilities of the Company.
slightly to 1.55 in 2020 from 1.47 in 2019 mainly due to sales
growth during the year. Financial leverage ratio is 5.2% representing the amount
of lease obligation of Rs. 816.2 million. The lease obligation
Fixed assets turnover ratio (average assets) improved to has increased versus last year on account of lease liabilities
4.07 in 2020 from 3.90 in 2019 mainly due to sales growth recognised in respect of facilities and vehicles.
during the year.
The weighted average cost of debt of 8.6% has decreased
INVESTMENT / MARKET RATIOS over last year driven primarily by decrease in interest rates
Earnings per share increased to Rs. 46.33 in 2020 from during the year.
Rs. 13.28 in 2019 as a result of increase in profit after tax
driven by improved gross margin and lower operating Interest cover ratio has improved versus last year on
expenses as a percentage of sales. account of increase in profit before interest and tax, partially
offset by increase in interest costs due to mark-up on lease
Price Earnings ratio declined to 16.30 in 2020 from 33.64 in liabilities.
2019, mainly due to increase in earnings per share on account
of reasons mentioned above. Dividend yield ratio improved
to 5.3% in 2020 from 1.7% in 2019 due to increase in dividend
per share partially offset by increase in share price.

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

COMMENTS ON FINANCIAL STATEMENTS

STATEMENT OF PROFIT OR LOSS CURRENT ASSETS

The increase in current assets is mainly due to higher cash
and bank balances primarily on account of increase in
SALES profitability. This has been partially offset by decrease in
Net sales for the year increased by 17.0% over previous inventory balances versus last year.
year. Pharmaceutical sales increased by 12.6% following
sustained performance of established brands. Nutritional CURRENT LIABILITIES
sales increased by 37.5% mainly driven by increase in sales
Trade and other payables have increased over prior year
of adult nutritional supplements. Diagnostic sales grew by
mainly on account of higher creditors and accrued liabilities
4.1%, whereas General Health Care (GHC) and Diabetes
in respect of various goods and services.
Care cumulatively grew by 5.6%.

COST OF SALES EQUITY

Increase in equity over prior year is driven by profit for the
Cost of sales of the Company increased primarily on account
year partially offset by final dividend for 2019 (Rs. 7.5 per
of volumes, fuel and power costs due to rising tariffs,
share) and interim dividend for 2020 (Rs. 15.0 per share).
depreciation on account of capitalisations and salaries.

SELLING AND DISTRIBUTION EXPENSES STATEMENT OF CASH FLOWS

Selling and distribution expenses during the year increased
by 4.9%, but reduced as a percentage of sales, mainly CASH FLOWS FROM OPERATING ACTIVITIES
attributable to reduced travelling due to COVID. Increases
were recorded in advertisement expense following extensive There has been an increase in net cash flows from operating
campaigns by our Nutritional divisions and forwarding activities mainly due to improved profitability and
expenses due to increase in sales volumes. favourable working capital changes versus last year.

ADMINISTRATIVE EXPENSES CASH FLOWS FROM INVESTING ACTIVITIES

Administrative expenses during the year decreased by 12.2% Net cash outflows from investing activities have decreased
primarily on account of lower computer expenses. from prior year primarily due to lower capital expenditure
and higher interest income due to increase in interest rates
during the year.
OTHER CHARGES
Increase in other charges during the current year by 35.5% CASH FLOWS FROM FINANCING ACTIVITIES
is primarily on account of higher statutory charges (WWF,
WPPF and CRF) in line with increase in profitability of the Net cash outflow from financing activities increased during
Company, partially offset by lower exchange losses versus the current year primarily on account of higher dividend
last year. paid during the year.

OTHER INCOME
Increase in other income during the current year by 116.1% is
primarily on account of liabilities written back pertaining to
PC support and other related services.

STATEMENT OF FINANCIAL
POSITION
NON-CURRENT ASSETS
Property, plant and equipment have witnessed an increase
over prior year due to investment in production facilities
and infrastructure to support growing scale of business.
Major capital expenditure incurred during the year was
for expanding manufacturing capacity, enhancement of
productivity, and improvement of plant efficiency. Increase
in property, plant and equipment was also driven by right-
of-use assets recorded in respect of new leases amounting to
Rs. 616.7 million.

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

STATEMENT OF CASH FLOWS - DIRECT METHOD

For The Year Ended December 31, 2020

2020 2019
(Rupees in ‘000)

CASH FLOWS FROM OPERATING ACTIVITIES

Cash receipts from customers 35,459,257 30,538,320
Cash paid to suppliers / service providers (21,039,048) (24,643,198)
Cash paid to employees (3,850,364) (3,581,333)
Payment of royalty and technical service fee (175,463) (164,247)
Payment to retirement funds (361,445) (341,733)
Income taxes paid (1,541,273) (1,759,041)
Payment of other statutory charges (345,840) (209,135)
Long-term prepayments - net 2,134 239

Net cash inflow / (outflow) from operating activities 8,147,958 (160,128)

CASH FLOWS FROM INVESTING ACTIVITIES

Fixed capital expenditure (1,380,060) (1,867,504)
Acquisition of intangible asset (9,879) (63,568)
Sale proceeds from disposal of fixed assets 88,921 81,008
Interest income 344,239 262,054

Net cash outflow from investing activities (956,779) (1,588,010)

CASH FLOWS FROM FINANCING ACTIVITIES

Finance costs paid (53,163) (43,001)
Lease rentals paid (205,363) (133,092)
Dividends paid (2,201,291) (996,386)
Net cash outflow from financing activities (2,459,817) (1,172,479)
Net increase / (decrease) in cash and cash equivalents 4,731,362 (2,920,617)
Cash and cash equivalents at the beginning of the year 2,757,519 5,678,136

Cash and cash equivalents at the end of the year 7,488,881 2,757,519

111
 ABBOTT PAKISTAN 2020 ANNUAL REPORT

GRAPHICAL PRESENTATION

1,000 957.09

800 755.37
697.61
635.00 631.05
Rupees

600
446.78
400

200 132.27 149.06 146.64 135.19 136.59

159.25

0
2015 2016 2017 2018 2019 2020

Break-up Value per Share Market Price per Share

45 8,000 30
38.9% 40.1% 38.7%
40 23.6% 23.9%
34.6% 6,244 25
35 33.0% 6,400 5,842
5,587 22.4%
28.3%
30 26.0% 26.2% 5,006 20
Rs. in Million

24.8% 17.7% 4,535

Percentage
4,800
Percentage

4,205 4,344
25 21.1% 4,022
3,587 14.6% 15
20 16.9% 17.2%
16.1%
17.1%
3,200 2,694
12.9% 2,511
15 11.9% 10
9.1% 8.3%
10 1,600 1,300
4.3% 5
5
0 0 0
2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020

Gross Profit Margin EBITDA Margin Net Profit Margin PBT PAT PBT as % of sales

35 35

29.3% 29.1% 29.3%

30 27.7%
30 27.7% 27.6% 27.6%
27.6%

25 25
Percentage

20.4% 20.0%
Percentage

20 20

15 15
9.7% 9.5%
10 10

5 5

0 0
2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020

Return on Capital Employed

Return on Equity
112
 ABBOTT PAKISTAN 2020 ANNUAL REPORT

40,000 5.0
4.57 4.61
35,283
4.5
32,000 29,719 30,156 4.0
3.50 3.48
3.35
26,088 3.5
Rs. in Million

23,388
24,000 3.0
Times

21,170 2.60
2.5 2.18
2.30
2.13
16,000 2.0
1.57
1.44
1.5
1.09
8,000 1.0
0.5
0 0.0
2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020

Net Sales Current Ratio Quick / Acid Test Ratio

3.5 100
3.07 88.38 87.32
90 84.72
3.0 80.75 80.40 82.58 80.04
2.79
80 76.84
72.42
2.5 70
2.18 61.14
60
Times

55.54
Days

54.89
2.0
50
1.5 40
1.10
0.95 30
1.0
0.48 20 12.56 12.64 12.39
0.5 0.26 0.28 0.27 8.27 10.61 9.51
0.21 0.17
0.05
10
0.0 0
2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020

Cash to Current Liabilities Cash Flows from Operations to Sales No. of Days in Inventory No. of Days in Payables No. of Days in Receivables

113
50 6
5.27 5.26
39.79
5 4.81
 21,170
2 25

Percentage
20.4%
20

15
ABBOTT PAKISTAN 2020 ANNUAL REPORT 40,000 5.0
4.5
10 35,283
4.5
5 32,000 29,719 30,156 4.0
26,088 3.5

Rs. in Million
GRAPHICAL PRESENTATION
0 23,388
4 2015 2016 2017 2018 2013 2014 2015 2016 24,0002017 21,170 2018 3.0

Times
2.5
ncluding Toll Manufacturing Service Fee) Return on Equity
16,000 2.0
1.5
8,000 1.0
0.5
3,000 0 0.0
2015 2016 2017 2018 2019 2020 20

957.09 2,500 2,321 Net Sales

Rs. in Million

68
2,000 1,868
697.61
635.00 631.05 1,604
1,500 3.5 1,380 100
1,174 3.07
90
1,000
980 3.0 2.79 80.
5.0 4.61 80
83 4.57
4.5 2.5 70
149.06 146.64 500 2.18
132.27 135.19
4.0 60

Times

Days
3.50 3.48 2.0
3.35
3.5 0 50
4 2015 2016 2017 2018 2015 2016 2017 2018 1.52019 2020
3.0
Times

2.60
40
1.10
p Value Per Share 2.5 Price Per Share
Market 2.18
2.30
Capital Expenditure 1.0
0.95 30
2.13
2.0 0.48 20
1.57
1.44 0.5 0.26 0.21 0.28 0.27
1.5 0.17 10
1.09 0.05
1.0 0.0 0
2015 2016 2017 2018 2019 2020 2
0.5
0.0 Cash to Current Liabilities Cash Flows from Operations to Sales No. of
20 2015 2016 2017 2018 2019 2020

Current Ratio Quick / Acid Test Ratio

1,000 957.09 50 6
5.
39.79
800 5
100
755.37 40
697.61 34.13
88.38 87.32 31.82
90 635.00 84.72 631.05 4
80.75 80.40 82.58 80.04
Rupees

600 30

Times
Days

80 76.84
72.42
70 446.78 3
61.14
400 20 18.19
60 55.54 16.79
Days

54.89
2
50
200 149.06 159.25 10 8.22
40 132.27 146.64 135.19 136.59 1
30
20 0 2015 2016 2017 2018 2019 2020
0
2015 2016 2017 2018 2019 2020
0
0.27 10.61 12.56 12.64 12.39
9.51
2
8.27
10
Break-up Value per Share Market Price per Share Operating Cycle
0
0 2015 2016 2017 2018 2019 2020

ales No. of Days in Inventory No. of Days in Payables No. of Days in Receivables

6 50 50
8,000 30 46.33
38.7% 5.27 5.26 45 42.95 45
41.08
5 34.6%
4.81 23.6% 23.9%
40 25 40
36.64 6,244
33.0% 6,400 5,842
4.13 33.64
3.895,587 22.4% 35 35
4 28.3%
Rupees

3.655,006 20
Times

30 30
Rs. in Million
Times

24.8% 17.7% 4,535 27.52

Percentage

4,800 4,205 4,344

4,022 23.30
3 21.1% 25 14.6%
22.93 25
3,587 15
17.1% 20 20
79 16.1% 17.33
3,200 2,694
16.24 16.30
2 11.9% 12.9%
15 2,511
10 13.28 15
1.47 1.45 1.42
1.28 1.33 1.36 8.3%
9.1%
10 1,300 10
1 1,600
4.3% 5
5 5
0 0 0
20 2015 2016 2017 2018 0 2019 2020 2015 2016 2017 0 2018 2019 2020
2017 2018 2019 2020 2015 2016 2017 2018 2019 2020
Fixed Assets Turnover Ratio Total Assets Turnover Ratio Earnings per Share (Rupees) Price Earnings Ratio (Times)
argin EBITDA Margin Net Profit Margin PBT PAT PBT as % of sales

5.7%
50 6 4,500
35 5.3%
45 4,000 81.9%
114
4.7% 40.0 40.0
29.3% 29.1% 30 29.3% 40.0 5
27.7% 27.6% 40 27.6%
3,500
35 4.2%
2,937
in Million

25 30.0 4 3,000
centage
Rupees
entage

20.4% 30 20.0% 3.2%

20 2,500
25 3
 ABBOTT PAKISTAN 2020 ANNUAL REPORT

50 50
46.33
45 41.08
42.95 45
40 36.64 40
35 33.64 35
Rupees

Times
30 27.52 30
23.30
25 22.93 25
20 17.33 16.24 16.30
20
15 13.28 15
10 10
5 5
0 0
2015 2016 2017 2018 2019 2020

Earnings per Share (Rupees) Price Earnings Ratio (Times)

5.7% 97.4%
50 6 4,500 93.1% 100
5.3%
86.3%
45 4,000 81.9% 3,916
4.7% 40.0 40.0 3,916 3,916
40.0 5
40 72.7% 80
3,500
35 4.2%
2,937
Rs. in Million

30.0 4 3,000 56.5%

Percentage

Percentage
Rupees

30 3.2% 60
2,500
25 3 1,958
20.0 2,000
20 1.7% 40
2 1,500
15
10 7.5 1,000 734 20
1
5 500
0 0 0 0
2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020

Dividend per Share (Rs.) Dividend Yield (%) Dividend Dividend Payout %

6 12 11.3%
5.2%

5 10
8.6%

4 8
Percentage
Percentage

6.9%
2.9%
3 6

2 1.6% 4

1 2

0 0
2018 2019 2020 2018 2019 2020

Finance leverage ratio* Weighted average cost of debt*

* The Company did not have any long-term debt before 2018.

1,000 115
5.0
851.86
4.5 827.62
4.0%
4.0 800
 6.9%

Percenta
Percenta
2.9%
3 6

2 1.6% 4
ABBOTT PAKISTAN 2020 ANNUAL REPORT
1 2

0 0
2018 2019 2020 2018 2019 2020

GRAPHICAL PRESENTATION Finance leverage ratio* Weighted average cost of debt*

5.0 1,000
851.86
4.5 827.62
4.0%
4.0 800
3.5
581.71
Percentage

600

Times
3.0
2.5 2.2%

2.0 400
279.34
1.5 1.3%

1.0 200
82.19
0.5 48.29

0.0 0
2018 2019 2020 2015 2016 2017 2018 2019 2020

Debt to equity ratio* Interest cover ratio

* The Company did not have any long-term debt before 2018.

116
 ABBOTT PAKISTAN 2020 ANNUAL REPORT

SEGMENTAL REVIEW
For The Year Ended December 31, 2020

During 2020, overall sales for the Company increased by Rs. 5,127.5 million resulting in an increase of 17.0%.
Gross profit margin for 2020 improved to 34.6% as compared to 28.3% in the preceding year. Profit after tax for
the year was Rs. 4.54 billion resulting in an EPS of Rs. 46.33 per share.

The chart below shows the segment wise breakdown of the Company on the basis of revenue:

ANALYSIS OF COMPANY’S SEGMENTS

6% 2%

24% Pharmaceuticals
Nutritional
Diagnostics
Others

68%

PHARMACEUTICALS (EPD)
Sales of Pharmaceutical business increased by 12.6% following sustained performance of established brands.
Gross profit margin for the business improved to 30.6% from 28.6% driven by product mix and price increases.
Selling and Distribution expenses reduced as a percentage of sales following lower travelling expense due to
COVID. Operating margin for EPD improved to 13.9% from 9.9% due to the reasons mentioned above.

NUTRITION (ANI)
Revenue for the Nutrition business during 2020 grew by 37.5% mainly driven by increase in sales of adult
nutritional supplements. Gross profit margin for the division improved to 45.9% driven by revision to product
costs and sales price increase. The operating margin of the division improved to 30.9% from 6.3% during 2019.

DIAGNOSTIC (ADD)
Revenue for the Diagnostic business during 2020 grew by 4.1%. Gross profit margin for the business improved to
36.5% from 34.5% mainly driven by product mix. The operating margin of the division improved to 10.8% from
7.8% during 2019.

OTHERS
Revenue for Others which consists of Diabetes Care and General Health Care representing 2% of total company
revenue increased by Rs. 38.70 million. It achieved a cumulative Gross profit margin of 30.3% versus 31.1% during
the preceding year. Depletion in gross profit margin is on account of increase in product costs. The operating
margin of the division improved to 11.4% versus 10.6% last year primarily contributed by decrease in promotional
spend and travelling driven by COVID.

Detailed segment-wise operating results are presented in Note 35 of the financial statements.

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

VERTICAL ANALYSIS
December 31, December 31,
2020 2019

Rupees in ‘000 % Rupees in ‘000 %

Statement of Financial Position

Total Equity 15,590,252 62.6 13,372,393 64.4

Non-Current Liabilities 2,491,670 10.0 1,592,967 7.7
Current Liabilities 6,833,822 27.4 5,787,320 27.9
Total Equity and Liabilities 24,915,744 100.0 20,752,680 100.0

Non-Current Assets 9,214,007 37.0 8,414,818 40.5

Current Assets 15,701,737 63.0 12,337,862 59.5
Total Assets 24,915,744 100.0 20,752,680 100.0

December 31, December 31,

2020 2019

Rupees in ‘000 % Rupees in ‘000 %

Statement of Profit or Loss

Sales - net 35,283,377 100.0 30,155,875 100.0

Cost of sales 23,061,526 65.4 21,628,135 71.7
Gross Profit 12,221,851 34.6 8,527,740 28.3
Selling and distribution expenses 5,311,541 15.1 5,061,510 16.8
Administrative expenses 642,162 1.8 731,620 2.4
6,268,148 17.7 2,734,610 9.1
Other income 760,691 2.2 352,023 1.2
Other charges 708,375 2.0 522,802 1.8
6,320,464 17.9 2,563,831 8.5
Finance costs 76,905 0.2 53,090 0.2
Profit before taxation 6,243,559 17.7 2,510,741 8.3
Taxation 1,708,310 4.8 1,210,856 4.0
Profit for the year 4,535,249 12.9 1,299,885 4.3

Note: Graphical presentation of the Statement of Financial Position and Statement of Profit or Loss is given on Page No. 106-107.

COMMENT ON VERTICAL ANALYSIS

Statement of Financial Position: Equity of the Company has increased versus last year on account of profit for
the year partially offset by dividend paid, but reduced as a percentage of total equity and liabilities. Non-current
liabilities are 10.0% (2019: 7.7%) of the total equity and liabilities and have increased mainly on account of lease
liability and staff retirement benefits. Non-current assets are 37.0% (2019: 40.5%) of the total assets, which
increased primarily on account of capital expenditure during the year for expanding manufacturing capacity,
enhancement of productivity and improvement of plant efficiency. Current assets are 63.0% (2019: 59.5%) of total
assets of the Company which increased mainly due to higher cash and bank balances versus last year.

118
 ABBOTT PAKISTAN 2020 ANNUAL REPORT

December 31, December 31, December 31, December 31,

2018 2017 2016 2015

Rupees in ‘000 % Rupees in ‘000 % Rupees in ‘000 % Rupees in ‘000 %

13,235,011 65.3 14,355,835 74.8 14,593,240 82.7 12,949,247 78.6

1,084,823 5.3 898,409 4.7 203,477 1.2 830,115 5.0
5,961,423 29.4 3,933,866 20.5 2,848,467 16.1 2,708,913 16.4
20,281,257 100.0 19,188,110 100.0 17,645,184 100.0 16,488,275 100.0

7,283,126 35.9 5,492,322 28.6 4,523,033 25.6 4,108,183 24.9

12,998,131 64.1 13,695,788 71.4 13,122,151 74.4 12,380,092 75.1
20,281,257 100.0 19,188,110 100.0 17,645,184 100.0 16,488,275 100.0

December 31, December 31, December 31, December 31,

2018 2017 2016 2015

Rupees in ‘000 % Rupees in ‘000 % Rupees in ‘000 % Rupees in ‘000 %

29,719,279 100.0 26,088,233 100.0 23,387,915 100.0 21,170,446 100.0

19,917,837 67.0 15,999,247 61.3 14,020,416 60.0 12,943,213 61.1
9,801,442 33.0 10,088,986 38.7 9,367,499 40.0 8,227,233 38.9
4,503,521 15.2 3,611,882 13.9 3,258,175 13.9 2,876,407 13.6
610,885 2.0 468,172 1.8 450,297 1.9 383,612 1.8
4,687,036 15.8 6,008,932 23.0 5,659,027 24.2 4,967,214 23.5
458,654 1.5 445,317 1.7 420,937 1.8 476,868 2.2
786,315 2.6 602,244 2.3 486,064 2.1 431,721 2.0
4,359,375 14.7 5,852,005 22.4 5,593,900 23.9 5,012,361 23.7
15,606 0.1 10,060 0.0 6,759 0.0 5,884 0.1
4,343,769 14.6 5,841,945 22.4 5,587,141 23.9 5,006,477 23.6
1,649,436 5.5 1,636,713 6.3 1,565,349 6.7 1,419,741 6.7
2,694,333 9.1 4,205,232 16.1 4,021,792 17.2 3,586,736 16.9

COMMENT ON VERTICAL ANALYSIS

Statement of Profit or Loss: Gross profit margin of the Company improved to 34.6% from 28.3% in 2019 driven
by product mix, revisions to product costs and sales price increases. Selling and distribution expenses decreased
as a percentage of sales mainly driven by reduced travelling due to COVID. Net profit margin of the Company
increased to 12.9% from 4.3% in 2019 mainly on account of improved gross profit margin and lower operating
expenses as a percentage of sales (as explained above).

119
ABBOTT PAKISTAN 2020 ANNUAL REPORT

HORIZONTAL ANALYSIS

December 31,
2020 2019 2018 2017 2016 2015

(Rupees in ‘000)

Statement of Financial Position

Total Equity 15,590,252 13,372,393 13,235,011 14,355,835 14,593,240 12,949,247

Non-Current Liabilities 2,491,670 1,592,967 1,084,823 898,409 203,477 830,115
Current Liabilities 6,833,822 5,787,320 5,961,423 3,933,866 2,848,467 2,708,913
Total Equity and Liabilities 24,915,744 20,752,680 20,281,257 19,188,110 17,645,184 16,488,275

Non-Current Assets 9,214,007 8,414,818 7,283,126 5,492,322 4,523,033 4,108,183

Current Assets 15,701,737 12,337,862 12,998,131 13,695,788 13,122,151 12,380,092
Total Assets 24,915,744 20,752,680 20,281,257 19,188,110 17,645,184 16,488,275

December 31,
2020 2019 2018 2017 2016 2015

(Rupees in ‘000)

Statement of Profit or Loss

Sales - net 35,283,377 30,155,875 29,719,279 26,088,233 23,387,915 21,170,446
Cost of sales 23,061,526 21,628,135 19,917,837 15,999,247 14,020,416 12,943,213
Gross Profit 12,221,851 8,527,740 9,801,442 10,088,986 9,367,499 8,227,233
Selling and distribution expenses 5,311,541 5,061,510 4,503,521 3,611,882 3,258,175 2,876,407
Administrative expenses 642,162 731,620 610,885 468,172 450,297 383,612
6,268,148 2,734,610 4,687,036 6,008,932 5,659,027 4,967,214
Other income 760,691 352,023 458,654 445,317 420,937 476,868
Other charges 708,375 522,802 786,315 602,244 486,064 431,721
6,320,464 2,563,831 4,359,375 5,852,005 5,593,900 5,012,361
Finance costs 76,905 53,090 15,606 10,060 6,759 5,884
Profit before taxation 6,243,559 2,510,741 4,343,769 5,841,945 5,587,141 5,006,477
Taxation 1,708,310 1,210,856 1,649,436 1,636,713 1,565,349 1,419,741
Profit for the year 4,535,249 1,299,885 2,694,333 4,205,232 4,021,792 3,586,736

Note: Graphical presentation of the Statement of Financial Position and Statement of Profit or Loss is given on Page No. 106-107.

COMMENT ON HORIZONTAL ANALYSIS

Statement of Financial Position: Equity has increased by 16.6% driven by profit for the year partially offset
by final dividend for 2019 (Rs. 7.5 per share) and interim dividend for 2020 (Rs. 15.0 per share). Non-current
liabilities have increased by 56.4% due to recording of lease liabilities in respect of facilities and vehicles. Non-
current assets have increased by 9.5% over last year on account of capital expenditure and recognition of right-
of-use assets in respect of new leases. Increase in current assets by 27.3% is mainly on account of higher cash and
bank balances.

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

December 31,
2020 2019 2018 2017 2016 2015

% increase / (decrease) over preceding year

16.6 1.0 (7.8) (1.6) 12.7 19.1

56.4 46.8 20.7 341.5 (75.5) 23.8
18.1 (2.9) 51.5 38.1 5.2 21.8
20.1 2.3 5.7 8.7 7.0 19.8

9.5 15.5 32.6 21.4 10.1 19.2

27.3 (5.1) (5.1) 4.4 6.0 20.0
20.1 2.3 5.7 8.7 7.0 19.8

December 31,

2020 2019 2018 2017 2016 2015

% increase / (decrease) over preceding year

17.0 1.5 13.9 11.5 10.5 7.5

6.6 8.6 24.5 14.1 8.3 6.6
43.3 (13.0) (2.9) 7.7 13.9 9.0
4.9 12.4 24.7 10.9 13.3 (3.0)
(12.2) 19.8 30.5 4.0 17.4 4.4
129.2 (41.7) (22.0) 6.2 13.9 17.8
116.1 (23.2) 3.0 5.8 (11.7) 0.2
35.5 (33.5) 30.6 23.9 12.6 16.7
146.5 (41.2) (25.5) 4.6 11.6 15.9
44.9 240.2 55.1 48.8 14.9 23.3
148.7 (42.2) (25.6) 4.6 11.6 15.9
41.1 (26.6) 0.8 4.6 10.3 (5.5)
248.9 (51.8) (35.9) 4.6 12.1 27.4

COMMENT ON HORIZONTAL ANALYSIS

Statement of Profit or Loss: Net sales for the year increased by 17.0% over previous year. Cost of sales increased
by 6.6% primarily on account of volumes, fuel and power costs due to rising tariffs, depreciation on account of
capitalisations and salaries. Other charges increased by 35.5% on account of higher statutory charges (WWF,
WPPF and CRF) in line with increase in profitability of the Company. The profit after tax of the Company
increased by 248.9% in line with the reasons mentioned above.

121
ABBOTT PAKISTAN 2020 ANNUAL REPORT

STATEMENT OF VALUE ADDITION AND

ITS DISTRIBUTION For The Year Ended December 31, 2020

2020 2019
Rupees ‘000 % Rupees ‘000 %

Wealth Generated
Total revenue inclusive of sales tax and other income 37,069,701 31,170,091
Brought-in-materials and services 23,754,223 22,759,135
13,315,478 100% 8,410,956 100%

Wealth Distribution
To Employees
Salaries, wages, allowances and staff welfare 4,316,884 32.42% 3,944,936 46.90%

To Government
Income Tax 1,620,971 12.17% 1,140,396 13.56%
Workers' Funds and Central Research Fund 516,577 3.88% 224,200 2.67%
Sales tax and excise duty 1,025,633 7.70% 662,193 7.87%
3,163,181 23.75% 2,026,789 24.10%

To Society
Donations 4,799 0.04% 5,740 0.07%

To Providers of Capital
Dividends *3,916,012 29.41% 734,252 8.73%

To Providers of Finance
Finance costs 76,905 0.58% 53,090 0.63%

Retained in the Business

Depreciation and amortisation 1,131,121 8.50% 1,010,056 12.01%
Actuarial Loss 320,110 2.40% 374,590 4.45%
Added to Unappropriated profit for distribution 386,466 2.90% 261,503 3.11%
1,837,697 13.80% 1,646,149 19.57%

13,315,478 100.00% 8,410,956 100.00%

*Dividends include final dividend amounting to Rs. 2,447.508 million proposed by the Board of Directors subsequent to the year end.

2020 2019

13.80%
To Employees 19.57%
0.58%
32.42%
To Government
0.63%
To Society
8.73% 46.90%
To Providers of Capital
0.07%
29.41% To Providers of Finance

Retained in the Business

23.75% 24.10%
0.04%

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

FREE CASH FLOWS

December 31,
2020 2019 2018 2017 2016 2015
(Rupees in '000)
Profit before taxation 6,243,559 2,510,741 4,343,769 5,841,945 5,587,141 5,006,477

Adjustment for non-cash items

Depreciation 964,742 881,746 722,641 601,485 522,357 463,444

Right-of-use assets 144,383 107,339 4,477 - - -
Amortisation 21,996 10,075 10,051 5,600 12,233 20,912
(Gain) / Loss on disposal and write-off of property plant & equipment (4,158) 11,350 (2,302) 15,350 (4,354) (10,857)
Interest income (344,355) (260,485) (370,491) (371,598) (394,844) (448,150)
Expense recognised in statement of profit or loss in respect of
equity-settled share-based compensation 118,138 115,687 74,022 45,381 32,435 42,464
Staff retirement benefits 89,223 25,115 23,457 (31,427) 42,312 30,358
Finance costs 76,905 53,090 15,606 10,060 6,759 5,884
1,066,874 943,917 477,461 274,851 216,898 104,055

Working capital changes 2,387,201 (1,853,497) 159,288 1,203,128 (974,650) 477,382

Income taxes paid (1,541,273) (1,759,041) (2,039,277) (1,556,561) (1,714,877) (1,520,063)
Long-term loans and advances (10,537) (2,487) (4,021) (1,334) 2,058 (5,508)
Long-term deposits - - - (38) - 130
Long-term prepayments 2,134 239 (2) 2,518 2,975 (439)
837,525 (3,614,786) (1,884,012) (352,287) (2,684,494) (1,048,498)

Net cash generated from operating activities 8,147,958 (160,128) 2,937,218 5,764,509 3,119,545 4,062,034

Capital expenditure (1,380,060) (1,867,504) (2,321,269) (1,604,089) (980,258) (1,174,097)

Acquisition of intangible assets (9,879) (63,568) (24,280) - (6,500) (18,500)

Free cash flows 6,758,019 (2,091,200) 591,669 4,160,420 2,132,787 2,869,437

GRAPHICAL PRESENTATION OF FREE CASH FLOWS

8,000

6,758
6,244
7,000
5,842
5,587
5,006

6,000
4,344
4,160

5,000

4,000
2,869

2,511
Rupees in Million

2,379
2,133

3,000
1,204

1,067

2,000
944
592
477
472

1,000
275
217

155
104

-1,000
(970)

(987)
(1,193)

(1,390)
(1,557)

(1,541)
(1,520)

(1,604)
(1,715)

(1,759)

-2,000
(1,856)

(1,931)
(2,039)

(2,091)
(2,345)

-3,000
2015 2016 2017 2018 2019 2020

Profit before taxation Adjustment for non-cash items Working capital changes and movement in long-term assets
Income taxes paid Capital expenditure including intangible assets Free cash flows

COMMENT ON FREE CASH FLOWS

Company’s free cash flows increased versus last year mainly on account of higher cash flows from operating
activities contributed primarily by increase in profit before taxation and favourable working capital changes driven
by decrease in stock-in-trade.

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

DUPONT ANALYSIS

December 31,
2020 2019 2018 2017 2016 2015

EBIT Margin 17.9% 8.5% 14.7% 22.4% 23.9% 23.7%

Asset turnover (average assets) 1.55 1.47 1.51 1.42 1.37 1.40
Interest burden / efficiency 98.8% 97.9% 99.6% 99.8% 99.9% 99.9%
Tax burden / efficiency 72.6% 51.8% 62.0% 72.0% 72.0% 71.6%
Leverage 1.46 1.53 1.49 1.28 1.17 1.17
Net profit margin 12.9% 4.3% 9.1% 16.1% 17.2% 16.9%
Return on equity 29.1% 9.7% 20.4% 29.3% 27.6% 27.7%

GRAPHICAL PRESENTATION OF DUPONT ANALYSIS

Return on equity
35

29.3% 29.1%
30 27.7% 27.6%

25
20.4%

20
Percentage

15

10
9.7%

0
2015 2016 2017 2018 2019 2020

COMMENT ON DUPONT ANALYSIS

Return on equity has increased to 29.1% from 9.7% during 2020 driven by improved gross margin and lower
operating expenses as a percentage of sales. Interest burden / efficiency and tax efficiency improved versus last
year on account of improvements in earnings. Assets turnover increased to 1.55 in 2020 from 1.47 in 2019 mainly
due to sales growth during the year.

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

DUPONT ANALYSIS

2020

INTEREST BURDEN / TAX BURDEN /

EBIT MARGIN
(17.9%) X EFFICIENCY
(98.8%)
X EFFICIENCY
(72.6%)

ASSETS TURNOVER
(1.55) X NET PROFIT MARGIN
(12.9%) X LEVERAGE
(1.46)

RETURN ON EQUITY
(29.1%)

2019

INTEREST BURDEN / TAX BURDEN /

EBIT MARGIN
(8.5%) X EFFICIENCY
(97.9%)
X EFFICIENCY
(51.8%)

ASSETS TURNOVER
(1.47) X NET PROFIT MARGIN
(4.3%) X LEVERAGE
(1.53)

RETURN ON EQUITY
(9.7%)

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

QUARTERLY ANALYSIS
For The Year Ended December 31, 2020

2020
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total

---------------------------- (Rupees ‘000) ----------------------------

Sales - net 8,061,493 8,472,178 8,438,241 10,311,465 35,283,377

Cost of sales 5,122,461 5,455,371 5,451,200 7,032,494 23,061,526
Gross profit 2,939,032 3,016,807 2,987,041 3,278,971 12,221,851

Selling and distribution expenses 1,363,717 1,169,039 1,411,669 1,367,116 5,311,541

Administrative expenses 154,588 159,920 166,129 161,525 642,162
Other income 99,936 366,999 116,265 177,491 760,691
Other charges 218,677 187,524 159,391 142,783 708,375
1,637,046 1,149,484 1,620,924 1,493,933 5,901,387
1,301,986 1,867,323 1,366,117 1,785,038 6,320,464
Finance costs 13,575 14,493 13,179 35,658 76,905

Profit before taxation 1,288,411 1,852,830 1,352,938 1,749,380 6,243,559

Taxation 425,894 595,283 367,494 319,639 1,708,310

Profit after tax 862,517 1,257,547 985,444 1,429,741 4,535,249

GRAPHICAL PRESENTATION OF QUARTERLY PERFORMANCE ANALYSIS

100
90 28%
29% 27% 31%
80
70
24% 24% 22%
percentage

60 22%
50
40
24% 25% 30%
30 28%
20
10 23% 24% 20% 19%
0
Sales - net Gross profit Profit before taxation Profit after tax

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

126
 ABBOTT PAKISTAN 2020 ANNUAL REPORT

COMMENTS ON QUARTERLY PERFORMANCE ANALYSIS

Qtr 1 Qtr 2 Qtr 3 Qtr 4

• Sales for the quarter • Sales for the quarter • Sales for the quarter • Sales for the quarter
increased by 12% over increased by 8% over increased by 12% over increased by 31% over
the same period last the same period last the same period last the same period last
year. year. year. year.
• Gross profit margin • Gross profit margin • Gross profit margin • Gross profit margin
improved to 36% improved to 36% improved to 36% improved to 32%
versus 30% during the versus 30% during versus 28% during versus 28% during
same period last year the same period last the same period the same period last
driven by sales price year substantially last year driven by year driven by product
increase and revision contributed by product mix, revision mix and revision to
to product costs. the improved to product costs and product costs.
performance of the sales price increase.
Nutritional segment.

SHARE PRICE SENSITIVITY ANALYSIS

Share price in the stock market moves due to various factors such as company’s performance, general market
sentiments, economic events and interest rates, etc. Being a responsible and law-compliant Company, Abbott
circulates price sensitive information to the Pakistan Stock Exchange (PSX) in accordance with the requirements
of the PSX Rulebook in a timely manner. During the current year, Abbott share price touched the peak of Rs 792.38
while the lowest recorded price was Rs 309.00 with a closing price of Rs. 755.37 at the end of the year.

Share price - High
Share price - Closing
Share Price Sensitivity
Share price - Low
1,200.00
1,100.00 1,145.00

1,000.00 984.90
957.09
900.00

800.00
744.42 750.00 792.38
710.00 755.37
Market value per share

700.00 697.61
635.00 631.05
600.00 610.00
575.00
(Rupees)

500.00 473.19 475.00 446.78

400.00

300.00 302.10 309.00

200.00

100.00

2015 2016 2017 2018 2019 2020

127
ABBOTT PAKISTAN 2020 ANNUAL REPORT

STATEMENT OF COMPLIANCE WITH LISTED

COMPANIES (CODE OF CORPORATE GOVERNANCE)
REGULATIONS, 2019
Abbott Laboratories (Pakistan) Limited for the year ended 31st December 2020.

This statement is being presented to comply with the Listed Companies (Code of Corporate Governance)
Regulations, 2019 (Regulations) for the purpose of establishing a framework of good governance, whereby a
listed company is managed in compliance with the best practices of corporate governance.
The Company has complied with the requirements of the regulations in the following manner:
1. The total number of directors are 7 (seven) as per the following:
a. Male: 5
b. Female: 2
2. The composition of the Board is as followss:

Category Names
Mr. Ehsan Ali Malik
Independent Directors Mr. Mohsin Ali Nathani
Ms. Ayla Majid

Mr. Munir A. Shaikh (Chairman)

Other Non-Executive Directors
Mr. Muhammad Anjum Latif Rana
Syed Anis Ahmed
Executive Directors
Ms. Seema Khan
Ms. Ayla Majid
Female Directors
Ms. Seema Khan

3. The directors have confirmed that none of them is serving as a director on more than seven listed
companies, including this Company;
4. The Company has prepared a Code of Conduct and has ensured that appropriate steps have been taken to
disseminate it throughout the company along with its supporting policies and procedures;
5. The Board has developed a vision/mission statement, overall corporate strategy and significant policies of
the Company. The Board has ensured that complete record of particulars of significant policies along with
their date of approval or updating is maintained by the Company;
6. All the powers of the Board have been duly exercised and decisions on relevant matters have been taken
by the Board as empowered by the relevant provisions of the Companies Act, 2017 (the Act) and these
Regulations;
7. The meetings of the Board were presided over by the Chairman. The Board has complied with the
requirements of Act and the Regulations with respect to frequency, recording and circulating minutes of
meeting of the Board;

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8. The Board of Directors have a formal policy and transparent procedure for remuneration of directors in
accordance with the Act and these Regulations;
9. Two directors have a certification under Directors’ Training Program, one director of the Company is
exempt from the requirement of Directors’ Training Program. Directors elected during the year will be
trained within the timelines provided in these Regulations;
10. The Board has approved appointment of Chief Financial Officer, Company Secretary and Head of Internal
Audit including their remuneration and terms and conditions of employment and complied with relevant
requirements of the Regulations;
11. Chief Financial Officer and Chief Executive Officer duly endorsed the financial statements before approval
of the Board;
12. The Board has formed committees comprising of members given below:

Category Names
Mr. Ehsan Ali Malik (Chairman)
Audit Committee Ms. Ayla Majid
Mr. Muhammad Anjum Latif Rana
Mr. Mohsin Ali Nathani (Chairman)
HR & Remuneration Committee Mr. Munir A. Shaikh
Syed Anis Ahmed
Ms. Ayla Majid (Chairperson)
Mr. Muhammad Anjum Latif Rana
Risk Management Committee
Syed Anis Ahmed
Ms. Seema Khan
Mr. Munir A. Shaikh (Chairman)
Syed Anis Ahmed
Nomination Committee
Mr. Mohsin Ali Nathani
Mr. Ehsan Ali Malik

13. The terms of reference of the Audit Committee, HR & Remuneration Committee and Risk Management
Committee have been formed, documented and advised to the committee for compliance. The Nomination
Committee was formed during the current year and its terms of reference are in the process of being
finalized and approved;
14. The frequency of meetings (quarterly/half yearly/yearly) of the committees were as per following:
a) Audit Committee: 4
b) HR and Remuneration Committee: 2
c) Risk Management Committee: 2

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15. The Board has set up an effective internal audit function who are considered suitably qualified and
experienced for the purpose and are conversant with the policies and procedures of the Company;
16. The statutory auditors of the Company have confirmed that they have been given a satisfactory rating
under the quality control review program of the Institute of Chartered Accountants of Pakistan and
registered with Audit Oversight Board of Pakistan, that they and all their partners are in compliance with
International Federation of Accountants (IFAC) guidelines on code of ethics as adopted by the Institute of
Chartered Accountants of Pakistan and that they and the partners of the firm involved in the audit are not
a close relative (spouse, parent, dependent and non-dependent children) of the Chief Executive Officer,
Chief Financial Officer, Head of Internal Audit, Company Secretary or Director of the Company;
17. The statutory auditors or the persons associated with them have not been appointed to provide other
services except in accordance with the Act, these regulations or any other regulatory requirement and the
auditors have confirmed that they have observed IFAC guidelines in this regard;
18. We confirm that all requirements of regulations 3, 6, 7, 8, 27, 32, 33 and 36 of the Regulations have been
complied with.

By order of the Board

Munir A. Shaikh Syed Anis Ahmed

Chairman Chief Executive Officer

Karachi: February 26th, 2021

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INDEPENDENT AUDITOR’S REVIEW REPORT

To the members of Abbott Laboratories (Pakistan) Limited (the Company)
Review Report on the Statement of Compliance contained in Listed Companies (Code of Corporate
Governance) Regulations, 2019
We have reviewed the enclosed Statement of Compliance with the Listed Companies (Code of Corporate Governance)
Regulations, 2019 (the Regulations) prepared by the Board of Directors of Abbott Laboratories (Pakistan) Limited
for the year ended 31 December 2020 in accordance with the requirements of regulation 36 of the Regulations.

The responsibility for compliance with the Regulations is that of the Board of Directors of the Company. Our
responsibility is to review whether the Statement of Compliance reflects the status of the Company’s compliance
with the provisions of the Regulations and report if it does not and to highlight any non-compliance with the
requirements of the Regulations. A review is limited primarily to inquiries of the Company’s personnel and
review of various documents prepared by the Company to comply with the Regulations.

As a part of our audit of the financial statements we are required to obtain an understanding of the accounting
and internal control systems sufficient to plan the audit and develop an effective audit approach. We are not
required to consider whether the Board of Directors’ statement on internal control covers all risks and controls
or to form an opinion on the effectiveness of such internal controls, the Company’s corporate governance
procedures and risks.

The Regulations require the Company to place before the Audit Committee, and upon recommendation of
the Audit Committee, place before the Board of Directors for their review and approval, its related party
transactions. We are only required and have ensured compliance of this requirement to the extent of the approval
of the related party transactions by the Board of Directors upon recommendation of the Audit Committee.

Based on our review, nothing has come to our attention which causes us to believe that the Statement of
Compliance does not appropriately reflect the Company’s compliance, in all material respects, with the
requirements contained in the Regulations as applicable to the Company for the year ended 31 December 2020.

Chartered Accountants
Place: Karachi
Date: 10 March 2021

A member firm of Ernst & Young Global Limited

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INDEPENDENT AUDITOR’S REPORT

To the members of Abbott Laboratories (Pakistan) Limited
Report on the Audit of Financial Statements

Opinion

We have audited the annexed financial statements of Abbott Laboratories (Pakistan) Limited (the
Company), which comprise the statement of financial position as at 31 December 2020, and the statement
of profit or loss, the statement of comprehensive income, the statement of cash flows and the statement of
changes in equity for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies and other explanatory information, and we state that we have obtained all the
information and explanations which, to the best of our knowledge and belief, were necessary for the purposes
of the audit.
In our opinion and to the best of our information and according to the explanations given to us, the statement
of financial position, the statement of comprehensive income, the statement of cash flows and the statement
of changes in equity together with the notes forming part thereof conform with the accounting and reporting
standards as applicable in Pakistan and give the information required by the Companies Act, 2017 (XIX of
2017), in the manner so required and respectively give a true and fair view of the state of the Company’s affairs
as at 31 December 2020 and of the profit, the other comprehensive loss, the cash flows and the changes in
equity for the year then ended.
Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in
Pakistan. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Financial Statements section of our report. We are independent of the Company in accordance
with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants
as adopted by the Institute of Chartered Accountants of Pakistan (the Code) and we have fulfilled our other
ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters

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

A member firm of Ernst & Young Global Limited

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Following is the key audit matter:

Key audit matter How our audit addressed the key audit matter
1. Estimates and assumptions involved in staff retirement benefits
As disclosed in note 22.1 to the financial statements, We obtained an understanding of the process for
the Company operates a funded pension and gratuity recognition of defined benefit plan and the Company’s
schemes for all its permanent employees, based on control in this area relevant to our audit.
their joining, with liabilities amounting to Rs. 1,464.964
million, which were significant in the context of the We evaluated the competence and objectivity of the
overall statement of financial position of the Company.qualified actuary engaged by the Company to value
the defined benefit obligation under International
In determining the obligation in respect of staff Accounting Standard 19 ‘Employee Benefits’.
retirement benefits, the Company engaged an actuarial We engaged our expert to assess the appropriateness
expert to perform the actuarial valuation of the of the methodology and assumptions used to
present value of the defined benefit obligation, which determine the obligation in respect of defined benefit
involves use of key assumptions including discount plan.
rate and expected rates of increase in future salaries
and pension. Changes in any of these key assumptions We tested data provided by the Company to the
can have a material impact on the calculation of the actuary, on a test basis, for purpose of valuation.
liability.
We have also assessed the adequacy of the Company’s
Accordingly, owing to the involvement of significant disclosures in accordance with the applicable financial
estimates, we have identified this area as a key audit reporting standards.
matter.

Information Other than the Financial Statements and Auditor’s Report Thereon
Management is responsible for the other information. The other information comprises the information
included in the Annual Report but does not include the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form
of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial statements or
our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we
have performed, we conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Board of Directors for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance
with the accounting and reporting standards as applicable in Pakistan and the requirements of Companies
Act, 2017 (XIX of 2017) and for such internal control as management determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.

A member firm of Ernst & Young Global Limited

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In preparing the financial statements, management is responsible for assessing the Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Board of directors are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in
accordance with ISAs as applicable in Pakistan will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
As part of an audit in accordance with ISAs as applicable in Pakistan, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to
the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.

A member firm of Ernst & Young Global Limited

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We communicate with the board of directors regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the board of directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the board of directors, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
Based on our audit, we further report that in our opinion:
a. proper books of account have been kept by the Company as required by the Companies Act, 2017 (XIX of
2017);
b. the statement of financial position, the statement of profit or loss, the statement of comprehensive
income, the statement of cash flows and the statement of changes in equity together with the notes
thereon have been drawn up in conformity with the Companies Act, 2017 (XIX of 2017) and are in
agreement with the books of account and returns;
c. investments made, expenditure incurred and guarantees extended during the year were for the purpose of
the Company’s business; and
d. zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980), was deducted by
the Company and deposited in the Central Zakat Fund established under section 7 of that Ordinance.
The engagement partner on the audit resulting in this independent auditor’s report is Tariq Feroz Khan.

Chartered Accountants
Place: Karachi
Date: 10 March 2021

A member firm of Ernst & Young Global Limited

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

STATEMENT OF FINANCIAL POSITION As At December 31, 2020

2020 2019
Note (Rupees ‘000)
EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorised capital 3 2,000,000 2,000,000

Issued, subscribed and paid-up capital 4 979,003 979,003

Reserves - capital 767,608 649,470

- revenue 13,843,641 11,743,920

Total Equity 15,590,252 13,372,393

NON-CURRENT LIABILITIES

Deferred taxation 5 227,587 239,609

Staff retirement benefits 22.1.1 1,464,964 1,055,631

Long-term portion of Gas Infrastructure

Development Cess Payable 7.3 172,825 -

Long-term lease liabilities 6 626,294 297,727

Total Non-current Liabilities 2,491,670 1,592,967

CURRENT LIABILITIES

Trade and other payables 7 6,593,576 5,655,083

Unclaimed dividends 50,291 48,825

Current maturity of
lease liabilities 6 189,955 83,412

Total Current Liabilities 6,833,822 5,787,320

Total Liabilities 9,325,492 7,380,287

CONTINGENCIES AND COMMITMENTS 8

TOTAL EQUITY AND LIABILITIES 24,915,744 20,752,680

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2020 2019
Note (Rupees ‘000)
ASSETS

NON-CURRENT ASSETS

Fixed assets
- Property, plant and equipment 9 9,070,460 8,267,557

Intangible assets 10 66,255 78,372

Long-term loans and advances 11 68,033 57,496

Long-term deposits 12 7,513 7,513

Long-term prepayments 1,746 3,880

Total Non-current Assets 9,214,007 8,414,818

CURRENT ASSETS

Stores and spares 13 244,519 276,322

Stock-in-trade 14 4,981,489 6,049,215

Trade debts 15 935,468 903,829

Loans and advances 16 277,661 133,171

Trade deposits and short-term prepayments 17 364,015 559,152

Interest accrued 6,404 6,288

Other receivables 18 481,869 639,215

Taxation - net 921,431 1,013,151

Cash and bank balances 19 7,488,881 2,757,519

Total Current Assets 15,701,737 12,337,862

TOTAL ASSETS 24,915,744 20,752,680

The annexed notes 1 to 41 form an integral part of these financial statements.

Chief Executive Director Chief Financial Officer

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STATEMENT OF PROFIT OR LOSS For The Year Ended December 31, 2020

2020 2019
Note (Rupees ‘000)

Sales - net 20 35,283,377 30,155,875

Cost of sales 21 23,061,526 21,628,135

Gross profit 12,221,851 8,527,740

Selling and distribution expenses 23 5,311,541 5,061,510

Administrative expenses 24 642,162 731,620
Other charges 25 708,375 522,802
Other income 26 (760,691) (352,023)

5,901,387 5,963,909
6,320,464 2,563,831

Finance costs 27 76,905 53,090

Profit before taxation 6,243,559 2,510,741

Taxation 28 1,708,310 1,210,856

Profit for the year 4,535,249 1,299,885

(Rupees)

Earnings per share - basic / diluted 29 46.33 13.28

The annexed notes 1 to 41 form an integral part of these financial statements.

Chief Executive Director Chief Financial Officer

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S TAT E M E N T O F CO M P R E H E N S I V E I N CO M E For The Year Ended December 31, 2020

2020 2019
Note (Rupees ‘000)

Profit for the year 4,535,249 1,299,885

Other comprehensive loss for the year

Items that will not to be reclassified subsequently

to the statement of profit or loss:

- Actuarial losses on staff retirement benefits 22.1.7 (320,110) (374,590)

- Tax on actuarial losses 87,339 70,460

Other comprehensive loss - net of tax (232,771) (304,130)

Total comprehensive income for the year 4,302,478 995,755

The annexed notes 1 to 41 form an integral part of these financial statements.

Chief Executive Director Chief Financial Officer

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STATEMENT OF CASH FLOWS For The Year Ended December 31, 2020

2020 2019
Note (Rupees ‘000)

CASH FLOWS FROM OPERATING ACTIVITIES

Cash generated from operations 30 9,697,634 1,601,161

Income taxes paid (1,541,273) (1,759,041)
Long-term loans and advances (10,537) (2,487)
Long-term prepayments 2,134 239
Net cash inflow / (outflow) from operating activities 8,147,958 (160,128)

CASH FLOWS FROM INVESTING ACTIVITIES

Fixed capital expenditures (1,380,060) (1,867,504)

Acquisition of intangible assets (9,879) (63,568)
Proceeds from disposals of property, plant and equipment 88,921 81,008
Interest income 344,239 262,054
Net cash outflow from investing activities (956,779) (1,588,010)

CASH FLOWS FROM FINANCING ACTIVITIES

Finance costs paid (53,163) (43,001)

Lease rentals paid (205,363) (133,092)
Dividends paid (2,201,291) (996,386)

Net cash outflow from financing activities (2,459,817) (1,172,479)

Net increase / (decrease) in cash and cash equivalents 4,731,362 (2,920,617)

Cash and cash equivalents at the beginning of the year 2,757,519 5,678,136

Cash and cash equivalents at the end of the year 19 7,488,881 2,757,519

The annexed notes 1 to 41 form an integral part of these financial statements.

Chief Executive Director Chief Financial Officer

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S TAT E M E N T O F C H A N G E S I N E Q U I T Y For The Year Ended December 31, 2020

Reserves
Capital Reserves Revenue Reserves

Reserve Un-
Share Other- General Total
Arising on appropriated Total
Capital (Note 2.20) Reserve Equity
Merger Profit

(Rupees ‘000)

Balance as at December 31, 2018 979,003 46,097 487,686 5,338,422 6,383,803 12,256,008 13,235,011

Impact of initial application of IFRS 9 - - - - 4,943 4,943 4,943

Balance as at January 01, 2019 - adjusted 979,003 46,097 487,686 5,338,422 6,388,746 12,260,951 13,239,954

Transactions with owners, recorded directly in equity

Final dividend for the year ended December 31,

2018 @ Rs. 10 per share - - - - (979,003) (979,003) (979,003)

Capital contribution from Abbott Laboratories, USA - - 115,687 - - 115,687 115,687

Total comprehensive income for the year ended December 31, 2019

Profit for the year - - - - 1,299,885 1,299,885 1,299,885

Other comprehensive loss for the year, net of tax - - - - (304,130) (304,130) (304,130)

Total comprehensive income for the year - - - - 995,755 995,755 995,755

Balance as at December 31, 2019 979,003 46,097 603,373 5,338,422 6,405,498 12,393,390 13,372,393

Balance as at January 01, 2020 979,003 46,097 603,373 5,338,422 6,405,498 12,393,390 13,372,393

Transactions with owners, recorded directly in equity

Final dividend for the year ended December 31,

2019 @ Rs. 7.5 per share - - - - (734,252) (734,252) (734,252)

Interim dividend for the year ended December 31,

2020 @ Rs. 15 per share - - - - (1,468,505) (1,468,505) (1,468,505)

Capital contribution from Abbott Laboratories, USA - - 118,138 - - 118,138 118,138

Total comprehensive income for the year ended December 31, 2020

Profit for the year - - - - 4,535,249 4,535,249 4,535,249

Other comprehensive loss for the year, net of tax - - - - (232,771) (232,771) (232,771)
Total comprehensive income for the year - - - - 4,302,478 4,302,478 4,302,478

Balance as at December 31, 2020 979,003 46,097 721,511 5,338,422 8,505,219 14,611,249 15,590,252

The annexed notes 1 to 41 form an integral part of these financial statements.

Chief Executive Director Chief Financial Officer

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NOTES TO THE FINANCIAL STATEMENTS For The Year Ended December 31, 2020

1. THE COMPANY AND ITS OPERATIONS

Abbott Laboratories (Pakistan) Limited (the Company) is a public limited company incorporated in Pakistan
on July 02, 1948, and its shares are quoted on the Pakistan Stock Exchange Limited. The address of its
registered office is Plot No. 258 & 324, opposite Radio Pakistan Transmission Centre, Hyderabad Road,
Landhi, Karachi. The Company is principally engaged in the manufacture, import and marketing of branded
generic pharmaceutical, nutritional, diagnostic, diabetes care, molecular devices, hospital and consumer
products.

The geographical location and addresses of all business units of the Company are as follows:

Business Unit Address

- Registered address / Manufacturing facility Plot No. 258 & 324, opposite Radio Pakistan Transmission Centre, Hyderabad
Road, Landhi, Karachi.
- Manufacturing facility Plot No. 13, Sector 20, Korangi Industrial Area, Karachi.
- City office 8th Floor, Faysal House, ST-02, Shahrah-e-Faisal, Karachi.
- Sales office Peshawar House No. 25/III/B, Jamrud Lane, University Town, Peshawar.
- Sales office Lahore House No. 187, Aurangzeb Block, Near Garden Town, Lahore.
- Sales office Rawalpindi House No. 168-F, Adamjee Road, Near Panj Sarki Chowk, Rawalpindi Cantt.
- Warehouse Islamabad Plot No. 136, Street # 9, Sector 1-10/3, Industrial Area, Islamabad 44800.
- Warehouse Lahore 16 KM Shahpur Kanjran, Multan Road, Lahore.
- Warehouse Multan Hasanabad gate # 2, near Pak Arab Fertilizers, Khanewal Road, Multan 60650.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of preparation

2.1.1 Statement of compliance

These financial statements have been prepared in accordance with the approved accounting standards as
applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting
Standards (IFRSs) issued by the International Accounting Standards Board (IASB) as are notified under the
Companies Act, 2017, provisions of and directives issued under the Companies Act, 2017. In case requirements
differ, the provisions or directives of the Companies Act, 2017, shall prevail.

2.1.2 Accounting convention

These financial statements have been prepared under the historical cost convention except as otherwise
disclosed in the accounting policies below.

2.1.3 Adoption of standards, amendments and framework effective during the year

The Company has adopted the following accounting standards and amendments of IFRSs and the framework
for financial reporting which became effective for the current year:

Standard or Amendment or Framework:

- IFRS 3 - Definition of a Business (Amendments);

- IFRS 9 / IAS 39 / IFRS 7 - Interest Rate Benchmark Reform (Amendments);
- IFRS 14 - Regulatory Deferral Accounts;
- IAS 1 / IAS 8 - Definition of Material (Amendments);
- IFRS 16 - COVID 19 Related Rent Concessions (Amendments); and
The Conceptual Framework for Financial Reporting.

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The adoption of the above standards, amendments of IFRSs and framework for financial reporting did not
have any material effect on the Company’s financial statements

2.1.4 Standards, amendments and improvements that are not yet effective

The following standards, amendments of IFRSs and improvements to accounting standards as applicable in
Pakistan would be effective from the dates mentioned below against the respective standards, amendments
or improvements:

Amendments Effective date (annual periods

beginning on or after)
IFRS 3 - Reference to the Conceptual Framework (Amendments) 01 January 2022
IAS 16 - Property, Plant and Equipment: Proceeds before Intended Use (Amendments) 01 January 2022
IAS 37 - Onerous Contracts – Costs of Fulfilling a Contract (Amendments) 01 January 2022
IAS 1 - Classification of Liabilities as Current or Non-Current (Amendments) 01 January 2023
IFRS 10 / IAS 28 - Sale or Contribution of Assets between an Investor
and its Associate or Joint Venture (Amendments) Not yet finalised

The above amendments are not expected to have any material impact on the financial statements, when
effective.

Improvement to accounting standards issued by the IASB (2018 – 2020 cycle) IASB effective date
(annual periods
beginning on or after)
IFRS 9 - Financial Instruments - Fees in the ‘10 percent’ test for the
derecognition of financial liabilities 01 January 2022
IAS 41 - Agriculture - Taxation in fair value measurement 01 January 2022

Further, following new standards have been issued by IASB which are yet to be notified by the Securities and
Exchange Commission of Pakistan for the purpose of applicability in Pakistan.

Standard IASB Effective date

(annual periods
beginning on or after)

IFRS 1 – First time adoption of IFRSs 01 January 2004

IFRS 17 – Insurance Contracts 01 January 2021

2.1.5 Critical accounting estimates and judgments

The preparation of the financial statements in conformity with the approved accounting standards, as
applicable in Pakistan, requires management to make judgments, estimates and assumptions that affects the
application of policies and the reported amount of assets, liabilities, income and expenses. The estimates
and associated assumptions are based on historical experience and various other factors that are believed to
be reasonable under the circumstances, the results of which form the basis of making the judgments about
the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results
may differ from these estimates. The estimates underlying the assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the
revision affects only that period, or in the period of the revision and future periods if the revision affects
both current and future periods.

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NOTES TO THE FINANCIAL STATEMENTS For The Year Ended December 31, 2020

Estimates and judgments made by the management that may have a significant risk of material adjustments
to the financial statements in the subsequent years are as follows:

i) Useful lives and residual values of items of property, plant and equipment (note 2.3 and note 9.1);
ii) Provision for slow moving and obsolete stock-in-trade (note 2.6 and note 14);
iii) Provision for slow moving and obsolete stores and spares (note 2.5 and 13);
iv) Allowance for expected credit losses on trade debts (note 2.18 and 15);
v) Allowance for expected credit losses on loans (note 2.18 and 16);
vi) Allowance for expected credit losses on other receivables (note 2.18 and 18);
vii) Allowance for expected credit losses on trade deposits (note 2.18 and 17);
viii) Estimates of receivables and payables in respect of staff retirement benefit schemes (note 2.13 and note 22);
ix) Provision for taxation (note 2.8, note 5 and note 28);
x) Share based compensation (note 2.20 and 31);
xi) Contingencies (note 8.1);
xii) Leases (note 2.10 and note 6); and
xii) Provision for sales return (note 2.16).

2.1.6 Shariah related disclosures

As at the reporting date, the Company is listed on the PSX-KMI All Share Index. The Company accordingly,
as per requirements specified in the Sub-clause 10 of Clause VI of Part 1 of the 4th Schedule to the Companies
Act, 2017, has provided disclosures applicable to it in notes 25.3 and 26.1 respectively.

2.2 Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economic
environment in which the Company operates (the “functional currency”). The financial statements are
presented in Pakistani Rupees, which is also the Company’s functional currency.

2.3 Property, plant and equipment

a) Owned

These are stated at cost less accumulated depreciation / amortisation and impairment loss, if any,
except freehold land, which is stated at cost less accumulated impairment losses, if any. Cost includes
expenditure that is directly attributable to the acquisition of the asset. When parts of an item of
property, plant and equipment have different useful lives, they are accounted for as separate items
(major components) of property, plant and equipment.

b) Depreciation / amortisation

Depreciation is charged to the statement of profit or loss applying the straight line method whereby
the cost less residual value of an asset is allocated over its estimated useful life at the rates given in
note 9.1 to these financial statements. Depreciation on assets is charged from the month of addition
to the month of disposal. The assets’ residual values and useful lives are reviewed, and adjusted if
appropriate, at each financial year end. Amortisation on leasehold land is charged to statement of
profit or loss equally over the period of the lease.

c) Gains or losses on disposal of fixed assets

Gains or losses on disposal of fixed assets are taken to the statement of profit or loss in the period in
which they arise.

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d) Subsequent costs

Maintenance and normal repairs are charged to the statement of profit or loss as and when incurred.
Major renewals and improvements which increase the assets’ remaining useful economic life or the
performance beyond the current estimated levels are capitalized and the assets so replaced, if any, are
retired.

e) Capital work-in-progress

This is stated at cost less impairment loss, if any, and consists of expenditure incurred and advances
made in the course of construction and installation. These are transferred to specific assets as and
when the assets are available for use.

f) Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the lease i.e., the date the
underlying asset is available for use. Right-of-use assets are measured at cost, less any accumulated
depreciation and impairment losses, if any, and adjusted for any remeasurement of lease liabilities.
The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs
incurred, and lease payments made at or before the commencement date less any lease incentives
received. Right-of-use assets are depreciated on a straight-line basis over the lower of the lease term
and the estimated useful lives of the assets, as follows:

• Vehicles 4 to 5 years
• Warehouses, sales offices and city office 3 to 10 years

If ownership of the leased asset transfers to the Company at the end of the lease term or the cost
reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of
an asset.

2.4 Intangible assets

An intangible asset is recognised if it is probable that future economic benefits attributable to the asset will
flow to the entity and the cost can be measured reliably. An intangible asset with finite life is measured
initially at cost and subsequently stated at cost less accumulated amortisation and impairment losses, if any.
It is amortised on a straight line basis over its estimated useful life at the rates mentioned in note 10 to these
financial statements. The amortisation period for intangible assets with finite useful lives is reviewed and
adjusted at each financial year-end.

2.5 Stores and spares

These are valued at cost determined on weighted average basis. Cost in relation to items in transit comprises
of invoice value and other charges incurred thereon upto the statement of financial position date. Provision
is made in the financial statements for obsolete and slow moving items based on estimates regarding their
usability.

2.6 Stock-in-trade

Stock of raw and packing materials, work-in-process and finished goods are valued at the lower of cost,
calculated on first-in-first-out basis, and net realisable value. Cost in relation to work-in-process and
finished goods represents direct cost of materials, direct wages and an appropriate portion of production
overheads. Cost in relation to items in transit represents invoice value and other charges incurred thereon
upto the statement of financial position date. Provision is made in the financial statements for obsolete and
slow moving items based on estimates.

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NOTES TO THE FINANCIAL STATEMENTS For The Year Ended December 31, 2020

Net realisable value signifies the estimated selling price in the ordinary course of business, less estimated
costs of completion and estimated costs necessary to make the sale.
Inventory is considered as sample inventory when it is labelled as a sample. The cost of sample inventory is
charged to statement of profit or loss when the Company has a right to access those goods.

2.7 Impairment

Non-financial assets

The carrying amount of non-financial assets other than inventories are assessed at each reporting date
to ascertain whether there is any indication of impairment. If any such indication exists then the asset’s
recoverable amount is estimated. An impairment loss is recognised, as an expense in the statement of
profit or loss, for the amount by which the asset’s carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset’s fair value less cost to sell and value in use. Value in use is
ascertained through discounting of the estimated future cash flows using a discount rate that reflects the
current market assessments of the time value of money and the risk specific to the assets. For the purpose
of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable
cash flows (cash generating units).
An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable
amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed
the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment
had been recognised.

2.8 Taxation

Current

The charge for current taxation is based on taxable income at the current rates of taxation in accordance
with Income Tax Ordinance, 2001.

Deferred

Deferred tax is provided in full using the balance sheet method on all temporary differences arising at the
statement of financial position date, between the tax bases of the assets and the liabilities and their carrying
amounts for financial reporting purposes. Deferred tax liabilities are recognized for all taxable temporary
differences and deferred tax assets are recognized for all deductible temporary differences, unused tax
losses and unused tax credits to the extent that it is probable that future taxable profits will be available
against which these can be utilized.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the differences
reverse, based on tax rates that have been enacted or substantively enacted by the statement of financial
position date and recognised after adjusting the impact of tax under FTR.

2.9 Cash and cash equivalents

For the purpose of the statement of cash flows, cash and cash equivalents comprise of cash in hand, bank
balances and short term investments, at amortised cost, with a maturity of three months or less from the date
of acquisition, net of short-term borrowings, if any. The cash and cash equivalents are readily convertible to
known amount of cash and are therefore subject to insignificant risk of changes in value.

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2.10 Lease liabilities

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
The Company applies a single recognition and measurement approach for all leases, except for short-term
leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and
right-of-use assets representing the right to use the underlying assets.
At the commencement date of the lease, the Company recognises lease liabilities measured at the present
value of lease payments to be made over the lease term. The lease payments include fixed payments
(including in-substance fixed payments) less any lease incentives receivable, variable lease payments that
depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease
payments also include the exercise price of a purchase option reasonably certain to be exercised by the
Company and payments of penalties for terminating the lease, if the termination option is reasonably certain
to be exercised. Variable lease payments that do not depend on an index or a rate are recognised as expenses
(unless they are incurred to produce inventories) in the period in which the event or condition that triggers
the payment occurs. In calculating the present value of lease payments at the lease commencement date, the
Company uses the interest rate implicit in the lease. In case where the interest rate implicit in the lease is not
readily determinable, the Company uses its incremental borrowing rate. After the commencement date, the
amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments
made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change
in the lease term, a change in the lease payments or a change in the assessment of an option to purchase the
underlying asset.

As at the reporting date, the Company did not have any low-value or short term lease.

2.11 Dividend distribution

Dividend distribution to the Company’s shareholders is recognised as a liability in the financial statements
in the period in which the dividends are approved by the shareholders.

2.12 Provisions

Provisions are recognised when the Company has a present legal or constructive obligation as a result of
past events, it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation and the amount can be reliably estimated. Provisions are reviewed at each statement of
financial position date to reflect the current best estimate.

2.13 Staff retirement benefits

Defined contribution plan

The Company operates a recognised provident fund (defined contribution plan) for all permanent employees
who have completed six months’ service. Equal monthly contributions are made by the Company and its
employees at the rate of 10% of basic salary. The contribution of the Company is charged to the statement of
profit or loss as and when incurred.

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NOTES TO THE FINANCIAL STATEMENTS For The Year Ended December 31, 2020

Defined benefit plan - pension scheme

The Company operates an approved funded pension scheme covering all its permanent employees who
joined on or before September 30, 2019 and who have completed minimum qualifying period of service.
The Company’s obligation under the scheme is determined through actuarial valuations carried out under
the “Projected Unit Credit Method”. The latest actuarial valuation was carried out at December 31, 2020
and on that basis, the Company has recognised the liability for retirement benefits and the corresponding
expenses. Actuarial gains and losses that arise are recognised in the statement of comprehensive income
in the year in which they arise. Past service costs are recognised immediately in the statement of profit or
loss irrespective of the fact that the benefits are vested or non-vested. Current service costs and any past
service costs together with the effect of the unwinding of the discount on plan liabilities are charged to the
statement of profit or loss.

Defined benefit plan - gratuity scheme

The Company also operates an approved funded gratuity scheme covering all its permanent employees who
joined on or after October 01, 2019 and who have completed minimum qualifying period of service. The
Company’s obligation under the scheme is determined through actuarial valuations carried out under the
“Projected Unit Credit Method”. The actuarial valuation was carried out at December 31, 2020 and on that
basis, the Company has recognised the liability for retirement benefits and the corresponding expenses.
Actuarial gains and losses that arise are recognised in the statement of comprehensive income in the year in
which they arise. Past service costs are recognised immediately in the statement of profit or loss irrespective
of the fact that the benefits are vested or non-vested. Current service costs and any past service costs together
with the effect of the unwinding of the discount on plan liabilities are charged to the statement of profit or
loss.
The amount recognised in the statement of financial position represents the present value of defined benefit
obligation as reduced by the fair value of plan assets.

2.14 Liability for employees’ compensated absences

The Company accounts for the liability in respect of employees’ compensated absences in the year in which
these are earned. Provisions to cover the obligations are made using the current salary levels of employees.
No actuarial valuation of compensated absences is carried out as the management considers that the
financial impact is not material.

2.15 Foreign currency transactions

Transactions denominated in foreign currencies are recorded in Pakistani Rupees at the foreign currency
rates prevailing on the date of transaction. Monetary assets and liabilities in foreign currencies are translated
into Pakistani Rupees at the rates of exchange approximating those at the statement of financial position
date. Exchange differences are taken to the statement of profit or loss.

2.16 Revenue from contract with customers

The Company is principally engaged in the manufacture, import and marketing of branded generics
pharmaceutical, nutritional, diagnostic, diabetes care, molecular devices, hospital and consumer products.
Revenue from contracts with customers is recognised when control of the goods is transferred to the customer
at an amount that reflects the consideration to which the Company expects to be entitled in exchange for
those goods. The Company has generally concluded that it is the principal in its revenue arrangements
because it typically controls the goods before transferring them to the customer.

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The Company enters into contractual arrangements for diagnostic instruments which include provision
of assets to customers for the contracted period as well as performance obligations for sale of reagents and
other consumables. Such contracts typically include operating lease component and require customers
to purchase minimum specified levels of reagents and consumables over the period of the contract. The
Company retains title to such instruments and the customers can not remove, transfer or alter these
instruments without the Company’s consent. Contract period in such arrangements vary by customer to
customer and range up to 7 years. The operating lease revenue component embedded in the sale revenue of
reagents and consumables is not contractually distinguishable, however it is considered not to be significant
portion of the Company’s net sales based on the management’s estimate. Accordingly, such revenue is not
considered significant to be disclosed separately in these financial statements.

a) Variable consideration

If the consideration in a contract includes a variable amount, the Company estimates the amount of
consideration to which it will be entitled in exchange for transferring the goods to the customer. The
variable consideration is estimated at contract inception and constrained until it is highly probable that
a significant revenue reversal in the amount of cumulative revenue recognised will not occur when the
associated uncertainty with the variable consideration is subsequently resolved. Contract for the sale of
goods provide customers with a right to return the goods in case of expired / damaged goods. The rights of
return give rise to variable consideration.
The Company uses the expected value method to estimate the variable consideration given the large number
of contracts that have similar characteristics. The Company then applies the requirements on constraining
estimates of variable consideration in order to determine the amount of variable consideration that can be
included in the transaction price and recognised as revenue.

b) Contract liabilities

A contract liability is recognised if a payment is received from a customer before the Company transfers
the related goods. Contract liabilities are recognised as revenue when the Company transfers control of the
related goods to the customer.

2.17 Other Income

Interest income / other income is recognised on an accrual basis.

2.18 Financial instruments – initial recognition and subsequent measurement

a) Financial assets

Initial recognition and measurement

Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair
value through other comprehensive income (OCI) or fair value through profit or loss.
The classification of financial assets at initial recognition depends on the financial asset’s contractual
cash flow characteristics and the Company’s business model for managing them. With the exception
of trade debts that do not contain a significant financing component or for which the Company has
applied the practical expedient, the Company initially measures a financial asset at its fair value
plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade
receivables that do not contain a significant financing component or for which the Company has
applied the practical expedient are measured at the transaction price.

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NOTES TO THE FINANCIAL STATEMENTS For The Year Ended December 31, 2020

In order for a financial asset to be classified and measured at amortised cost or fair value through OCI,
it needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the
principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an
instrument level. Financial assets with cash flows that are not SPPI are classified and measured at fair
value through profit or loss, irrespective of the business model.
The Company’s business model for managing financial assets refers to how it manages its financial
assets in order to generate cash flows. The business model determines whether cash flows will result
from collecting contractual cash flows, selling the financial assets, or both. Financial assets classified
and measured at amortised cost are held within a business model with the objective to hold financial
assets in order to collect contractual cash flows while financial assets classified and measured at fair
value through OCI are held within a business model with the objective of both holding to collect
contractual cash flows and selling.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

• Financial assets at amortised cost (debt instruments)

• Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt
instruments)
• Financial assets designated at fair value through OCI with no recycling of cumulative gains and
losses upon derecognition (equity instruments)
• Financial assets at fair value through profit or loss

Financial assets at amortised cost (debt instruments)

Financial assets at amortised cost are subsequently measured using the Effective Interest Rate (EIR)
method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset
is derecognised, modified or impaired.
The Company’s financial assets at amortised cost includes trade debts, loans, trade deposits, interest
accrued, certain portion of other receivables, cash and bank balances and short-term investments.
The Company does not have any debt instruments at fair value through OCI, equity instruments at fair
value through OCI and equity instruments at fair value through profit or loss.

Derecognition

A financial asset, a part of a financial asset or part of a group of similar financial assets is primarily
derecognised when:

• The rights to receive cash flows from the asset have expired; or

• The Company has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under a
‘pass-through’ arrangement; and either

(a) the Company has transferred substantially all the risks and rewards of the asset, or

(b) the Company has neither transferred nor retained substantially all the risks and rewards of the
asset, but has transferred control of the asset.

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When the Company has transferred its rights to receive cash flows from an asset or has entered into a
passthrough arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of
ownership. When it has neither transferred nor retained substantially all of the risks and rewards of
the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset
to the extent of its continuing involvement. In that case, the Company also recognises an associated
liability. The transferred asset and the associated liability are measured on a basis that reflects the
rights and obligations that the Company has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at
the lower of the original carrying amount of the asset and the maximum amount of consideration that
the Company could be required to repay.

Impairment

The Company recognises an allowance for expected credit losses (ECLs) for all debt instruments not
held at fair value through profit or loss. ECLs are based on the difference between the contractual cash
flows due in accordance with the contract and all the cash flows that the Company expects to receive,
discounted at an approximation of the original effective interest rate. The expected cash flows will
include cash flows from the sale of collateral held or other credit enhancements that are integral to
the contractual terms.
ECLs are recognised in two stages. For credit exposures for which there has not been a significant
increase in credit risk since initial recognition, ECLs are provided for credit losses that result from
default events that are possible within the next 12-months (a 12-month ECL). For those credit
exposures for which there has been a significant increase in credit risk since initial recognition, a loss
allowance is required for credit losses expected over the remaining life of the exposure, irrespective
of the timing of the default (a lifetime ECL).
For trade debts, the Company applies a simplified approach in calculating ECLs. Therefore, the
Company does not track changes in credit risk, but instead recognises a loss allowance based on
lifetime ECLs at each reporting date. The Company has established a provision matrix that is based
on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and
the economic environment.
The Company considers a financial asset in default when contractual payments are 90 days past due,
however, in certain cases, the Company also considers a financial asset in default when contractual
payments are 360 days past due.
Further, the Company may consider a financial asset to be in default when internal or external
information indicates that the Company is unlikely to receive the outstanding contractual amounts
in full before taking into account any credit enhancements held by the Company. A financial asset is
written off when there is no reasonable expectation of recovering the contractual cash flows.

b) Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through
profit or loss, loans and borrowings or payables, as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.

The Company’s financial liabilities only include certain portion of trade and other payables.

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NOTES TO THE FINANCIAL STATEMENTS For The Year Ended December 31, 2020

Subsequent measurement

For purposes of subsequent measurement, financial liabilities are classified in two categories:

• Financial liabilities at fair value through profit or loss

• Financial liabilities at amortised cost

Financial liabilities at amortised cost

After initial recognition, interest-bearing loans and borrowings are subsequently measured at
amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the
liabilities are derecognised as well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the
statement of profit or loss.

This category generally applies to interest-bearing loans and borrowings.

The Company has not designated any financial liability as at fair value through profit or loss.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled
or expires. When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such an
exchange or modification is treated as the derecognition of the original liability and the recognition
of a new liability. The difference in the respective carrying amounts is recognised in the statement of
profit or loss.

c) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the statement of
financial position if there is currently an enforceable legal right to offset the recognised amounts and
there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

2.19 Segment reporting

Segment reporting is based on the operating (business) segments of the Company. An operating segment
is an identifiable component of the Company that engages in business activities from which it may earn
revenues and incur expenses, including revenues and expenses that relate to transactions with any of
the Company’s other components and for which discrete financial information is available. An operating
segment’s operating results are reviewed regularly by the Chief Operating Decision Maker (CODM) to make
decisions about resources to be allocated to the segment and assess its performance.
Segment results that are reported to the CODM include items directly attributable to a segment as well
as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets,
income tax assets / liabilities and related income and expenditure. Segment capital expenditure is the total
cost incurred during the year to acquire property, plant and equipment.

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The business segments are engaged in providing products which are subject to risks and rewards which
differ from the risk and rewards of other segments. Segments reported are as follows:

Pharmaceutical

The Pharmaceutical segment is engaged in the manufacture, import and marketing of branded generic
pharmaceutical products registered with the Drug Regulatory Authority of Pakistan.

Nutritional

The Nutritional segment is engaged in the import and marketing of nutritional products.

Diagnostics

The Diagnostics segment is engaged in the import and marketing of diagnostic equipment, molecular
devices, and their testing kits.

Others

The Others segment represents the import and marketing of diabetes care products and manufacturing and
marketing of general healthcare products.

2.20 Share based compensation

The cost of awarding shares to employees is reflected by recording a charge in the statement of profit or loss
equivalent to the fair value of shares on the grant date over the vesting period. Since awarded shares relate
to the ultimate holding company, a corresponding reserve is created to reflect the equity component.

3. AUTHORISED CAPITAL

2020 2019 2020 2019

Number of shares (Rupees ‘000)

200,000,000 200,000,000 Ordinary shares of Rs. 10 each 2,000,000 2,000,000

4. ISSUED, SUBSCRIBED AND PAID-UP CAPITAL

2020 2019
Number of shares

5,832,196 5,832,196 Ordinary shares of Rs. 10 each issued as 58,322 58,322

fully paid for cash

18,479,640 18,479,640 Ordinary shares of Rs. 10 each, determined 184,796 184,796

pursuant to merger of Abbott
Laboratories (Pakistan) Limited
with Knoll Pharmaceutical Limited
in accordance with the swap ratio
stipulated therein

73,588,466 73,588,466 Ordinary shares of Rs. 10 each issued as 735,885 735,885

fully paid bonus shares
97,900,302 97,900,302 979,003 979,003

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NOTES TO THE FINANCIAL STATEMENTS For The Year Ended December 31, 2020

As at December 31, 2020, Abbott Asia Investments Limited, UK (the holding company) held 76,259,454
shares (77.90%). The ultimate holding company is Abbott Laboratories, USA.
4.1 Voting rights, board selection, right of first refusal and block voting of all shareholders are in proportion to
their shareholding.

2020 2019
(Rupees '000)
5. DEFERRED TAXATION

Deferred tax liability arising due to accelerated tax depreciation allowance 680,357 411,077
Deferred tax asset arising in respect of provisions (452,770) (171,468)

227,587 239,609
6. LEASE LIABILITIES

The Company has a finance lease arrangement with a commercial bank for the purchase of vehicles. The
finance lease arrangement carries mark-up at rates ranging from 6-month KIBOR plus 0.45% to 6-month
KIBOR plus 1.00% per annum (December 31, 2019: 6-month KIBOR plus 0.50% to 6-month KIBOR plus
1.00% per annum). The contract enforces certain covenants including but not limited to the conditions of
the vehicles and rights of assignment.
The Company also has lease contracts for warehouses, sales offices and City Office used in its operations.
These leases generally have lease terms between 3 to 5 years. In general, the Company is restricted from
assigning and subleasing the leased assets. These lease contracts include extension and termination options
subject to the mutual consent of the Company and the Lessors. The Company is bound by certain covenants
which includes but are not limited to payment of certain taxes and to exercise reasonable care.
2020 2019
Financial Present value of Financial Present value of
Minimum lease Minimum lease
charge for minimum lease charge for minimum lease
payments payments
future periods payments future periods payments
(Rupees in ‘000)

Not later than one year 252,032 62,077 189,955 130,612 47,200 83,412
Later than one year but not
later than five years 708,160 81,866 626,294 369,183 71,456 297,727
960,192 143,943 816,249 499,795 118,656 381,139

2020 2019
(Rupees ‘000)
6.1 Movement of lease liabilities is as follows:

As at January 1, 381,139 214,252

Impact of initial application of IFRS 16 - 100,847
Additions 619,161 195,248
Accretion of interest 70,390 36,980
Payments (254,441) (166,188)
As at December 31 816,249 381,139

Current maturity of lease liabilities 189,955 83,412

Long-term lease liabilities 626,294 297,727

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2020 2019
Note (Rupees ‘000)
7. TRADE AND OTHER PAYABLES

Creditors 967,798 682,473

Accrued liabilities 2,888,270 ` 2,210,695
Bills payable 7.1 1,422,913 1,496,409
Contract liabilities 480,636 273,117
Payable to related parties 7.2 170,730 283,305
Central Research Fund 75,310 37,605
Workers’ Welfare Fund 326,695 208,037
Gas Infrastructure Development Cess (GIDC) payable 7.3 54,618 -
Provision against GIDC 7.4 186,095 436,629
Others 20,511 26,813
6,593,576 5,655,083

7.1 Bills payable include the following amounts payable to related parties:

Abbott Diagnostics GmbH 164,402 338,140

Abbott Logistics B.V. 295,918 148,942
Abbott Laboratories (Singapore) PTE Limited 4,052 3,927
Abbott Products Operation AG 129,730 252,239
Abbott Laboratories International Co. 11,686 101,512
Abbott GmbH & Co. KG. 15,857 17,910
Abbott Argentina S.A. 399 384
Abbott S.R.L Italy 21,515 11,892
Abbott Diabetes Care Inc. 49,294 82,700
Abbott Diabetes Care Limited, UK 34,515 212,989
Abbott Rapid Diagnostics 275,077 -
1,002,445 1,170,635

7.2 Payable to related parties represents the following amounts payable to:

Abbott International LLC., USA 59,594 45,442

ALSA MERO Office 19,402 808
Abbott B.V. Netherlands - 154,028
Abbott Ireland 257 176
Abbott GmbH & Co. KG. 13,585 12,116
Abbott Laboratories UK Limited - 6,917
Abbott Logistics B.V. 10,697 403
Abbott Products Operation AG 67,195 63,415
170,730 283,305

7.3 GIDC Payable

Opening as at January 01, - -

GIDC recognised 250,907 -
Payments during the year (23,464) -
Closing as at December 31, 227,443 -

Current portion of GIDC Payable 54,618 -

Long-term portion of GIDC Payable 172,825 -

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NOTES TO THE FINANCIAL STATEMENTS For The Year Ended December 31, 2020

7.4 Provision against GIDC

The Company has maintained a provision against GIDC under the GIDC Act 2015 in respect of the rate
differential matter for captive and industrial consumers. Pursuant to the recent Judgment of the Supreme
Court raised in August 2020, Gas companies started to recover the outstanding cess at industrial rate and the
same has now been recorded as a payable.

8. CONTINGENCIES AND COMMITMENTS

8.1 Contingencies

8.1.1 The taxation officer has contended that the Company has not deducted tax under the law on certain
expenses. The demand orders amounting to Rs. 13.313 million and Rs. 20.070 million were raised against the
Company for tax years 2011 and 2014, respectively. Appeal has been filed by the Company with the Appellate
Tribunal Inland Revenue (ATIR) for tax year 2014 whereas, a writ petition has been filed by the Company
in the High Court of Sindh (HCS) for tax year 2011 on the grounds that the tax year selected for monitoring
proceedings is time barred. The appeal and the petition are pending for adjudication. There has been no
change in the status of this contingency during the year.
Based on the legal advisor’s opinion, management is of the view that the position of the Company is sound
and the eventual outcome is expected to be in the Company’s favour.
8.1.2 The Deputy Commissioner Inland Revenue (DCIR) while finalising the Income tax audit proceedings for
tax year 2016 issued an order raising a demand of Rs. 106.007 million on various contentions, the most
significant of which is that the Company has allegedly paid excessive amounts for importing certain raw
materials. The Company filed an appeal with the Commissioner Inland Revenue (Appeals) (CIRA) against
the order of DCIR. In 2019, the Company’s appeal to CIRA in respect of its income tax assessment for tax
years 2016 was decided whereby additions amounting to Rs. 81.205 million were decided in favour of the
tax department, whilst certain additions were remanded back to the DCIR. The Company has filed appeal
before the ATIR against the additions to income confirmed by the CIRA whereas the department has filed
appeal before the ATIR against the additions to income deleted by CIRA. There has been no change in the
status of this contingency during the year.
Based on the legal advisor’s opinion, management is of the view that the position of the Company is sound
and the eventual outcome is expected to be in the Company’s favour.
8.1.3 The Additional Commissioner Inland Revenue (ACIR) while finalizing the amendment of assessment
proceedings u/s 122(5A) of the Income Tax Ordinance, 2001 for tax year 2017 has issued an order raising
a demand of Rs. 5.731 million on the contention that the Company had allegedly claimed excess amount
of exchange loss in its income tax return. The Company filed an appeal with the CIRA against the order
of ACIR. During 2019, the Company also paid 10% of the said amount to obtain an automatic stay against
recovery of the remaining amount. CIRA remanded back the matter to the ACIR under the directions to
allow proper opportunity of being heard to the Company. In pursuance of the directions of the CIRA, the
ACIR initiated set-aside proceedings against the Company, which has not yet been concluded. There has
been no change in the status of this contingency during the year.
Based on the tax advisor’s opinion, management is of the view that the position of the Company is sound and
the eventual outcome is expected to be in the Company’s favour.
8.1.4 The DCIR while finalising the income tax audit proceedings for tax year 2014 has issued an order raising a
demand of Rs. 298.598 million on various contentions. The Company filed an appeal with the CIRA against
the order of DCIR. In 2019, Company’s appeal to CIRA in respect of its income tax assessment for tax years
2014 was decided whereby additions amounting to Rs. 42.795 million were decided in favour of the tax
department, whilst certain additions were remanded back to the DCIR. The Company has filed an appeal
before the ATIR against the additions to income confirmed by the CIRA. There has been no change in the
status of this contingency during the year.
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Based on the legal advisor’s opinion, management is of the view that the position of the Company is sound
and the eventual outcome is expected to be in the Company’s favour.
8.1.5 As a result of monitoring of withholding tax for the tax year 2018 (accounting year ended December 31,
2017), the taxation officer has contended that the Company has not deducted tax under the law on certain
expenses. DCIR issued an order raising tax demand amounting to Rs. 26.483 million. The Company filed an
appeal with the CIRA against the order of DCIR. CIRA decided one of the matter in favour of the Company
amounting to Rs. 25.503 million and deleted the impugned demand. The other matter was decided in favour
of the tax department. The department has filed appeal before the ATIR against the additions to income
deleted by CIRA. There has been no change in the status of this contingency during the year.
Based on the tax advisor’s opinion, management is of the view that the position of the Company is sound and
the eventual outcome is expected to be in the Company’s favour.
8.1.6 During March 2019, the ACIR issued a show-cause notice to the Company u/s 122(9) of the Income Tax
Ordinance (ITO), 2001 for tax year 2018. The proceedings were concluded in December 2019 and an order
was issued amounting to Rs. 243.572 million on various contentions. During the year, the Company, in line
with the advice of its legal and tax advisors filed a rectification application u/s 221 of the ITO, 2001, an appeal,
and stay application before the CIRA. The Company’s appeal to CIRA in respect of the aforementioned
proceedings were finalised during the year, whereby CIRA deleted the existing demand and remanded back
most of the matters included therein to the learned officer for re-assessment, whilst additions amounting to
Rs. 2.253 million were decided in favour of the tax department.
Based on the tax advisor’s opinion, management is of the view that the position of the Company is sound
and the eventual outcome is expected to be in the Company’s favour.
8.1.7 The DCIR while finalizing the sales tax audit for tax year 2016 has issued an order raising a demand of
Rs. 115.749 million mainly on the contention that the Company has allegedly claimed/adjusted excess input
tax in its sales tax returns. The Company filed an appeal with the CIRA against the order of DCIR. The
Company’s appeal to CIRA in respect of the aforementioned proceedings were finalised, whereby CIRA
deleted the existing demand on the matter of excess claim of input tax, whilst CIRA upheld the decision of
the DCIR on the matter of advances from customers amounting to Rs. 0.263 million.
Based on the tax advisor’s opinion, management is of the view that the position of the Company is sound
and the eventual outcome is expected to be in the Company’s favour.
8.1.8 The Additional Commissioner Inland Revenue (ACIR) while finalising the amendment of assessment
proceedings u/s 122(5A) of the Income Tax Ordinance, 2001 for tax year 2019 has issued an order reducing
the tax refundable by Rs. 305.111 million on account of various contentions. The Company, in line with
the advice of its legal and tax advisors filed an appeal before the CIRA. Subsequent to the year end, the
Company’s appeal to CIRA in respect of the aforementioned proceedings were finalised, whereby CIRA
deleted the existing demand and remanded back most of the matters included therein to the learned
officer for re-assessment, whilst additions amounting to Rs. 1.043 million were decided in favour of the tax
department.
Based on the tax advisor’s opinion, management is of the view that the position of the Company is sound and
the eventual outcome is expected to be in the Company’s favour.
8.1.9 The Company is defending various minor suits filed against it in various courts in Pakistan related to its
business operations. The Company’s management is confident, based on the advice of its legal advisors, that
these suits will be decided in the Company’s favour.

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NOTES TO THE FINANCIAL STATEMENTS For The Year Ended December 31, 2020

8.2 Commitments

8.2.1 Commitments for capital expenditure outstanding amounted to Rs. 191.262 million (2019: Rs. 357.584
million).
8.2.2 Commitments in respect of letters of credit outstanding as of statement of financial position date amounted
to Rs. 747.263 million (2019: Rs. 309.195 million).

8.2.3 The Company has given bank guarantees of Rs. 269.858 million (2019: Rs. 275.145 million) to the Customs
Department, a utility company and other institutions against tenders.

8.2.4 The Company has obtained short-term financing facilities from various commercial banks amounting to
Rs. 2,150 million (2019: Rs. 1,800 million). These facilities can be utilised for letters of credit, guarantees
and running finance / short-term loans. However, the running finance / short-term loan utilisation cannot
exceed Rs. 250 million (2019: Rs. 250 million). The running finance / short-term loan carries markup at rates
ranging from KIBOR plus 1.00% to KIBOR plus 2.00% (2019: KIBOR plus 1.00% to KIBOR plus 2.00%) per
annum and are secured against first joint pari passu hypothecation charge over stocks and book debts of the
Company, ranking hypothecation charge over stocks and book debts of the Company, promissory notes, and
counter guarantees. The Company has not utilized any amount against running finance / short-term loan
facilities as at the statement of financial position date.

2020 2019
Note (Rupees ‘000)
9. PROPERTY, PLANT AND EQUIPMENT

Operating fixed assets 9.1 7,346,918 6,608,821

Capital work-in-progress 9.5 911,993 1,268,799
Right-of-use assets 9.6 811,549 389,937
9,070,460 8,267,557

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9.1 Operating fixed assets

The following is a statement of operating fixed assets:

Buildings Buildings on Service

Freehold Leasehold Plant and Vehicles - Office
on freehold leasehold Computers equipment- Total
land land machinery owned equipment
land land note 9.2
(Rupees ‘000)

At December 31, 2018

Cost 20,679 2,718 461,570 68,573 6,027,005 425,598 125,429 203,382 2,907,096 10,242,050
Accumulated depreciation /
amortisation - 978 267,218 67,242 2,519,344 190,382 102,610 168,576 1,139,264 4,455,614

Net book value 20,679 1,740 194,352 1,331 3,507,661 235,216 22,819 34,806 1,767,832 5,786,436

Year ended December 31, 2019

Opening net book value 20,679 1,740 194,352 1,331 3,507,661 235,216 22,819 34,806 1,767,832 5,786,436
Additions / transfers - - - - 1,080,054 69,937 1,071 52,429 587,297 1,790,788

Disposals / write offs

Cost - - - 754 136,778 169,775 40,528 - 1,144 348,979
Depreciation - - - 754 123,006 99,887 38,217 - 458 262,322
- - - - 13,772 69,888 2,311 - 686 86,657
Depreciation / amortisation
charge for the year - 29 17,696 100 422,894 45,899 6,255 20,284 368,589 881,746

Closing net book value 20,679 1,711 176,656 1,231 4,151,049 189,366 15,324 66,951 1,985,854 6,608,821

At December 31, 2019

Cost 20,679 2,718 461,570 67,819 6,970,281 325,760 85,972 255,811 3,493,249 11,683,859
Accumulated depreciation /
amortisation - 1,007 284,914 66,588 2,819,232 136,394 70,648 188,860 1,507,395 5,075,038

Net book value 20,679 1,711 176,656 1,231 4,151,049 189,366 15,324 66,951 1,985,854 6,608,821

Year ended December 31, 2020

Opening net book value 20,679 1,711 176,656 1,231 4,151,049 189,366 15,324 66,951 1,985,854 6,608,821
Additions / transfers - - - - 1,334,478 57,673 - 78,634 266,081 1,736,866

Disposals / write offs

Cost - - - - 217 63,618 - - 191,728 255,563
Depreciation - - - - 196 33,307 - - 188,033 221,536
- - - - 21 30,311 - - 3,695 34,027
Depreciation / amortisation
charge for the year - 29 17,320 100 506,474 32,570 5,236 27,318 375,695 964,742

Closing net book value 20,679 1,682 159,336 1,131 4,979,032 184,158 10,088 118,267 1,872,545 7,346,918

At December 31, 2020

Cost 20,679 2,718 461,570 67,819 8,304,542 319,815 85,972 334,445 3,567,602 13,165,162
Accumulated depreciation /
amortisation - 1,036 302,234 66,688 3,325,510 135,657 75,884 216,178 1,695,057 5,818,244

Net book value 20,679 1,682 159,336 1,131 4,979,032 184,158 10,088 118,267 1,872,545 7,346,918

Annual rate of depreciation / amortisation %

2019 - 1.06 2-10 5-10 5-20 20-25 10-33 20-33 11-33

2020 - 1.06 2-10 5-10 5-20 20-25 10-33 20-33 11-33

9.2 Service equipment of the Company is in the possession of various hospitals and clinics.

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NOTES TO THE FINANCIAL STATEMENTS For The Year Ended December 31, 2020

2020 2019
Note (Rupees ‘000)

9.3 The depreciation / amortisation charge for the year on operating

fixed assets has been allocated as follows:

Cost of sales 21 503,653 431,481

Selling and distribution expenses 23 432,948 430,872
Administrative expenses 24 28,141 19,393

964,742 881,746

9.4 Details of disposals of operating fixed assets having book value exceeding Rs. 500,000:

Book Sale Gain / Mode of

Description Cost Particulars of purchaser and relationship
value proceeds (loss) disposal
(Rupees ‘000)

Vehicles
8,842 6,963 7,074 111 Company Policy Jamshed Azhar Employee
7,000 2,800 2,800 - Company Policy Ihsan Ullah KhatakEmployee
2,697 1,686 1,686 - Company Policy Fahimuddin Employee
2,009 1,657 1,683 26 Company Policy Farman Hadi Ex-Employee
1,998 799 799 - Company Policy Sarmad Butt Employee
1,953 781 781 - Company Policy Abdul Wahab Godil Employee
1,828 731 731 - Company Policy Sarbiland Khan Ex-Employee
1,828 731 731 - Company Policy M. Imran Khan Employee
1,828 731 731 - Company Policy Shakeel Aftab Employee
1,828 731 731 - Company Policy Salman Ahmed Employee
1,828 731 731 - Company Policy Saifullah Phathan Employee
1,764 1,257 1,257 - Company Policy Malik Saadtullah Ex-Employee
1,678 671 671 - Company Policy Amir Khan Niazi Employee
1,678 671 671 - Company Policy Faizan Pervaiz Employee
1,678 671 671 - Company Policy Muhammad Uzair Ex-Employee
1,678 671 671 - Company Policy Omair Nouman Employee
1,678 671 671 - Company Policy Amir Alvi Employee
1,668 667 667 - Company Policy Muhammad Noman Employee
1,668 667 667 - Company Policy Muhammad Walid Employee
1,663 665 665 - Company Policy Wajeeha Badar Ex-Employee
1,663 665 665 - Company Policy Ashar Ayoob Employee
1,653 661 661 - Company Policy Hassan Iqbal Employee
1,643 657 657 - Company Policy Aqil Ali Employee
1,643 678 698 20 Company Policy Arif Subhan Employee
1,628 651 651 - Company Policy Ghulam Mujhtaba Employee
1,537 615 615 - Company Policy Arif Iqbal Employee

Service equipment 5,130 1,848 2,479 631 Company Policy ZEDCO Office # T-3 3rd Floor Fazal Center
Faiz Road Muslim Town Lahore

5,130 1,848 2,479 631 Company Policy ZEDCO Office # T-3 3rd Floor Fazal Center
Faiz Road Muslim Town Lahore

Items having book 5,276 1,452 4,554 3,102 Open Market Auction
value less than 181,468 - - - Write-off
Rs. 500,000 each

Total - 2020 255,563 34,027 38,548 4,521

- 2019 348,979 86,657 75,307 (11,350)

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9.5 Capital work-in-progress

Plant and Office
machinery and Vehicles equipment and Total
buildings computers
(Rupees ‘000)

At December 31, 2018 1,171,936 15,662 4,485 1,192,083

Additions 1,137,690 93,275 49,242 1,280,207

Transferred to operating fixed assets (1,080,054) (69,937) (53,500) (1,203,491)

At December 31, 2019 1,229,572 39,000 227 1,268,799

Additions 979,694 43,362 90,923 1,113,979

Transferred to operating fixed assets (1,334,478) (57,673) (78,634) (1,470,785)

At December 31, 2020 874,788 24,689 12,516 911,993

9.6 Right-of-use assets

Warehouses, sales
Note Vehicles offices and city Total
office
(Rupees ‘000)

At December 31, 2018 213,087 - 213,087

Impact of initial application of IFRS 16 - 105,538 105,538

Additions 195,248 - 195,248
Depreciation (44,189) (74,046) (118,235)
Disposals (5,701) - (5,701)

At December 31, 2019 358,445 31,492 389,937

Additions 284,158 332,573 616,731

Depreciation 9.7 (68,232) (76,151) (144,383)
Disposals 9.8 (50,736) - (50,736)

At December 31, 2020 523,635 287,914 811,549

2020 2019
Note (Rupees ‘000)
9.7 The depreciation charge for the year on right-of-use assets has
been allocated as follows:

Cost of sales 21 14,678 7,603

Selling and distribution expenses 23 97,220 77,654
Administrative expenses 24 32,485 32,978

144,383 118,235

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NOTES TO THE FINANCIAL STATEMENTS For The Year Ended December 31, 2020

9.8 Details of disposals of right-of-use assets having book value exceeding Rs. 500,000:

Book Sale Gain / Mode of

Description Cost Particulars of purchaser and relationship
value proceeds (loss) disposal
(Rupees ‘000)

Vehicles
15,750 10,828 10,828 - Company Policy Asim Shafiq Employee
3,108 2,448 2,448 - Company Policy Syed Nasir Employee
2,918 2,152 2,152 - Company Policy Zahid Hussain Ex-Employee
2,917 2,479 2,479 - Company Policy Shah Muhammad Saleem Ex-Employee
2,679 2,244 2,244 - Company Policy Mian Tahir Mehmood Employee
2,679 2,210 2,210 - Company Policy Asadullah Nizamani Employee
2,444 2,047 2,077 30 Company Policy Muhammad Akram Shaheen Ex-Employee
2,379 1,814 1,903 89 Company Policy Umer Rashid Ex-Employee
2,379 1,784 1,784 - Company Policy Abdul Hameed Khan Employee
2,379 1,814 1,814 - Company Policy Rehan Nazir Employee
2,379 1,755 1,755 - Company Policy Zafar Hussain Naqvi Employee
2,379 1,695 1,725 30 Company Policy Shoukat Ali Shah Employee
2,379 1,814 1,844 30 Company Policy Ali Asghar Hirani Employee
2,229 1,811 1,895 84 Company Policy Dr. Farheen Mohtasim Khan Ex-Employee
2,229 1,700 1,727 27 Company Policy Dr. Saif Ullah Employee
2,229 1,672 1,700 28 Company Policy Sikandar Sharif Shams Employee
2,074 1,659 1,763 104 Company Policy Ahmed Hassam Ex-Employee
2,024 1,619 455 (1,164) Insurance Claim IGI General Insurance 7th Floor, The Forum, Suite 701-713,
Limited G-20, Block-9, Khayaban-e-Jami, Clifton.
2,024 1,569 1,720 151 Company Policy Dr. Anas Iqbal Ghodil Employee
2,024 1,518 1,720 202 Company Policy Hafiz Amjad Javed Employee
2,024 1,467 1,493 26 Company Policy Dr. Arif Hussain Osmani Ex-Employee
1,883 1,342 1,342 - Company Policy Shakeel Mithaba Employee
1,883 1,295 1,295 - Company Policy Waqas Ahmed Employee
Total - 2020 67,392 50,736 50,373 (363)
- 2019 6,707 5,701 5,701 -

9.9 Particulars of immovable property in the name of the Company are as follows:

Location Usage of immovable property Total area (Sq. ft)

Landhi, Karachi Manufacturing facility 499,264

Korangi, Karachi Manufacturing facility 339,765

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10. INTANGIBLE ASSETS

Intangible assets include software licenses and rights acquired against transfer of technical, marketing and
sales know-how and necessary rights and requisites for marketing and selling different products.

Marketing
Software
authorisation Total
license
rights
(Rupees ‘000)
Cost
As at January 01, 2019 - 135,380 135,380
Additions - 63,568 63,568
As at December 31, 2019 - 198,948 198,948
Additions 9,879 - 9,879
As at December 31, 2020 9,879 198,948 208,827
Amortisation
As at January 01, 2019 - 110,501 110,501
Amortisation - 10,075 10,075
As at December 31, 2019 - 120,576 120,576
Amortisation 3,019 18,977 21,996
As at December 31, 2020 3,019 139,553 142,572
Net book value
As at December 31, 2019 - 78,372 78,372
As at December 31, 2020 6,860 59,395 66,255

Years
Useful life 3 4-5

2020 2019
Note (Rupees ‘000)

11. LONG-TERM LOANS AND ADVANCES - considered good, secured

Long-term loans
Due from:
- Executives 3,037 1,276
- Employees 93,929 84,956
11.1 96,966 86,232
Less: recoverable within one year
- Executives 1,096 458
- Employees 31,577 32,092
16 32,673 32,550
64,293 53,682
Long-term advances
- Employees 3,740 3,814
68,033 57,496

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NOTES TO THE FINANCIAL STATEMENTS For The Year Ended December 31, 2020

11.1 Loans given to executives and employees are in accordance with the Company policy. These loans are
interest free and are repayable in equal monthly installments within a maximum period of four years. These
loans are carried at cost due to practicality and materiality of the amounts involved. These loans are for
the purpose of purchase of refrigerators, scooters, vehicles and television sets. The loans for purchase of
vehicles are secured by way of registration of vehicles purchased in the name of the Company.

12. LONG-TERM DEPOSITS

Represents deposits paid for utilities and gas cylinders. These deposits are interest free.

2020 2019
Note (Rupees ‘000)

13. STORES AND SPARES

Stores 105,070 97,678

Spares [including spares-in-transit of Rs. 6.047 million
(2019: Rs. 60.861 million)] 172,484 209,154
277,554 306,832

Less: provision for slow moving and obsolete items 13.1 33,035 30,510

244,519 276,322

13.1 Provision for slow moving and obsolete items

Opening provision 30,510 30,775

Charge / (reversal) for the year 2,525 (265)

Closing provision 33,035 30,510

14. STOCK-IN-TRADE

Raw and packing materials [including stock-in-transit of

Rs. 439.711 million (2019: Rs. 289.746 million)] 21 2,816,482 3,165,804
Work-in-process 21 263,213 328,896
Finished goods [including stock-in-transit of
Rs. 308.928 million (2019: Rs. 241.198 million)] 21 2,405,697 2,972,399

5,485,392 6,467,099
Less: provision for slow moving and obsolete items 14.2 503,903 417,884

4,981,489 6,049,215

14.1 Stock-in-trade includes items costing Rs. 1,031.304 million (2019: Rs. 1,442.153 million) valued at net
realisable value of Rs. 885.013 million (2019: Rs. 1,214.542 million) resulting in a write down of Rs. 146.291
million (2019: Rs. 227.611 million).

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

2020 2019
Note (Rupees ‘000)
14.2 Provision for slow moving and obsolete items

Opening provision 417,884 134,811

Charge for the year 226,865 354,927
Write-offs during the year (140,846) (71,854)
Closing provision 503,903 417,884

15. TRADE DEBTS

Considered good:

Secured 40,607 42,788

Unsecured
- Due from a related party 15.1 - 35,142
- Others 894,861 825,899
894,861 861,041
935,468 903,829
Considered doubtful:

Unsecured 94,582 57,895

1,030,050 961,724

Less: allowance for expected credit losses 15.4 94,582 57,895

935,468 903,829

15.1 Represents receivable from Abbott Products Operations AG, which is not yet due.

15.2 The maximum aggregate amount due from the related party at the end of any month during the year was
Rs. 100.798 million (2019: Rs. 204.911 million).
15.3 The Company has made export sales amounting to Rs. 1,761.059 million (2019: Rs. 2,430.066 million) out
of which Rs. 40.607 million (2019: Rs. 77.930 million) is outstanding as at reporting date. Jurisdiction wise
breakup of outstanding debts from exports sales is as follows:
2020 2019
Note (Rupees ‘000)

Bangladesh 22,714 -
Sri Lanka 17,893 42,788
Switzerland - 35,142
40,607 77,930

15.4 Allowance for Expected Credit Losses

Opening provision 57,895 45,418

Impact of initial application of IFRS 9 - (4,943)
Adjusted opening provision 57,895 40,475
Charge for the year 25 36,687 17,420

Closing provision 94,582 57,895

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NOTES TO THE FINANCIAL STATEMENTS For The Year Ended December 31, 2020

2020 2019
Note (Rupees ‘000)
16. LOANS AND ADVANCES - unsecured

Considered good

Current portion of long-term loans 11 32,673 32,550

Advances to:

- Executives - 8,661
- Employees 451 18,302
- Suppliers 244,537 73,658
244,988 100,621

277,661 133,171

Considered doubtful 794 794

278,455 133,965

Less: allowance for expected credit losses 794 794

277,661 133,171

16.1 These loans and advances are interest free.

17. TRADE DEPOSITS AND SHORT-TERM PREPAYMENTS

Considered good

Trade deposits 17.1 261,517 344,105

Prepayments 102,498 215,047

364,015 559,152
Considered doubtful

Trade deposits 67,894 47,019

431,909 606,171
Less: allowance for expected credit losses 17.2 67,894 47,019

364,015 559,152

17.1 These trade deposits are interest free.

17.2 Allowance for Expected Credit Losses

Opening provision 47,019 25,827

Charge for the year 25 20,875 21,192

Closing provision 67,894 47,019

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

2020 2019
Note (Rupees ‘000)
18. OTHER RECEIVABLES

Considered good

Due from related parties 18.1 158,141 143,766

Receivable from customers 52,493 52,601
Insurance claim receivable 2,438 6,896
Workers’ Profit Participation Fund 18.3 14,917 29,291
Sales tax receivable 232,756 366,768
Others 21,124 39,893
481,869 639,215

Considered doubtful 5,325 5,035

487,194 644,250

Less: allowance for expected credit losses 18.2 5,325 5,035

481,869 639,215

18.1 Due from related parties

Abbott International LLC., USA 8,415 3,554

Abbott Products Operation AG 3,029 2,915
ALSA MERO Office 2,727 16,604
Abbott Ireland 32,291 4,701
Alere Inc. 45,775 17,835
Abbott GmbH & Co. KG. 45,750 98,121
Abbott Saudi Arabia 1,039 -
Abbott Laboratories International Co. 19,077 -
Abbott Laboratories SA Egypt 38 36

158,141 143,766
18.1.1 The maximum aggregate amount due from the related parties at the end of any month during the year was
Rs. 158.141 million (2019: Rs. 143.766 million).
18.1.2 As at December 31, 2020, the gross amount of other receivables due from related parties is Rs. 158.141 million
(2019: Rs. 143.766 million) out of which Rs. 67.080 million (2019: Rs. 83.039 million) were past due but not
impaired. The age analysis of these balances is as follows:
2020 2019
Note (Rupees ‘000)

Not yet due 91,061 60,727

Upto 3 months 8,164 67,850
3 to 6 months 6,994 7,442
More than 6 months 51,922 7,747
158,141 143,766

18.2 Allowance for expected credit losses

Opening provision 5,035 4,628
Charge for the year 25 290 407

Closing provision 5,325 5,035

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NOTES TO THE FINANCIAL STATEMENTS For The Year Ended December 31, 2020

2020 2019
Note (Rupees ‘000)
18.3 Workers’ Profit Participation Fund
Opening balance 29,291 17,104
Allocation for the year 25 (334,853) (153,094)
(305,562) (135,990)
Payment made during the year - net 320,479 165,281

Closing balance 14,917 29,291

19. CASH AND BANK BALANCES

With banks
Savings accounts:
- Local currency 19.1 454,162 53,454
Current accounts:
- Local currency 7,251 5,020
- Foreign currency 515,015 476,354
522,266 481,374
In hand
- Foreign currency 5,433 2,160
- Local currency 1,540 2,972
6,973 5,132
Cheques and drafts in hand and in transit 5,480 17,559
Cash and bank balances 988,881 557,519
Short-term investments 19.2 6,500,000 2,200,000
Cash and cash equivalents 7,488,881 2,757,519

19.1 These savings accounts carry markup rate of 5.50% (2019: 12.00%) per annum.
19.2 These represents term deposit receipts, carrying markup rate of 6.25% (2019: ranging from 12.45% to
12.50%) per annum.
2020 2019
Note (Rupees ‘000)
20. SALES – NET

Local 34,665,419 28,470,479

Export
- to related parties 33 567,131 1,065,787
- to others 1,193,928 1,364,279
1,761,059 2,430,066
36,426,478 30,900,545
Less:
Sales returns and discounts 117,468 82,477
Sales tax and excise duty 1,025,633 662,193
1,143,101 744,670
35,283,377 30,155,875

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20.1 Revenue recognised during the year from contract liabilities as at the beginning of the year amounted to
Rs. 273.117 million (2019: Rs. 134.801 million).

2020 2019
Note (Rupees ‘000)
21. COST OF SALES
Opening raw and packing materials 3,165,804 2,207,683
Purchases 11,661,269 13,302,885
14,827,073 15,510,568
Closing raw and packing materials 14 (2,816,482) (3,165,804)
Raw and packing materials consumed 12,010,591 12,344,764
Opening work-in-process 328,896 338,289
12,339,487 12,683,053
Manufacturing expenses:
Salaries, wages, allowances and staff welfare 21.1 1,876,405 1,763,636
Stores and spares consumed 197,270 229,055
Fuel and power 654,402 513,350
Depreciation 9.3 503,653 431,481
Depreciation on right-of-use assets 9.7 14,678 7,603
Repairs and maintenance 182,243 160,906
Technical service fee 21.2 & 33 190,979 162,028
Insurance 17,707 13,666
Printing and stationery 8,651 10,774
Travelling and entertainment - 53,491
Rent, rates and taxes 530 -
Laboratory testing supplies 87,048 69,599
Computer expenses 9,304 5,860
Postage, telephone and telegram 11,074 7,287
Legal, professional and other services 32,494 20,350
Fees and purchased services 110,029 95,681
Recruitment and training expenses 1,435 1,202
Membership and subscription 823 2,141
Other expenses 89,617 92,449
3,988,342 3,640,559
16,327,829 16,323,612
Closing work-in-process 14 (263,213) (328,896)
Cost of goods manufactured 16,064,616 15,994,716

Finished goods

Opening stock 2,972,399 2,017,732

Purchases 6,430,208 6,588,086

25,467,223 24,600,534
Closing stock 14 (2,405,697) (2,972,399)

23,061,526 21,628,135

21.1 These include a charge of Rs. 192.938 million (2019: charge of Rs. 153.297 million) in respect of staff
retirement benefits (note 22.3).

21.2 Technical service fee is paid to Abbott International LLC., USA. Its registered address is 100 Abbott Park
Road, Abbott Park, Illinois 60064-3500, USA. Abbott International LLC, USA is a related party of the
Company by virtue of both companies being members of the same group.
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NOTES TO THE FINANCIAL STATEMENTS For The Year Ended December 31, 2020

22. STAFF RETIREMENT BENEFITS

22.1 Defined benefit scheme

As mentioned in note 2.13, the Company operates a Pension Fund and a Gratuity Fund (the Funds) under an
irrevocable trust managed in conformity with the provisions of the Income Tax Ordinance, 2001 and the
Trust Deeds. The Company makes contributions to the Funds as prescribed under the Trust Deed and its
rules whereas the trustees are responsible for the day to day management of the Funds. The pension fund is
exposed primarily to Pakistan’s inflation rate, interest rate risks and changes in the life expectancy of
pensioners. The gratuity fund is exposed primarily to Pakistan’s inflation rate and interest rate risks. As the
plan assets of the Pension Fund includes investments in listed equity shares, the Pension Fund is also exposed
to equity market risk. The actuarial valuation was carried out as at December 31, 2020 using the Projected
Unit Credit Method.

Pension Fund Gratuity Fund

2020 2019 2020 2019
Note (Rupees ‘000)
22.1.1 Amounts recognised in the statement of
financial position:
Present value of the defined benefit obligation 22.1.2 5,547,168 4,650,447 2,549 227
Less: fair value of plan assets 22.1.3 4,080,394 3,595,043 4,359 -
Deficit / (Surplus) 1,466,774 1,055,404 (1,810) 227

22.1.2 Movement in present value of defined benefit

obligations

As at January 1, 4,650,447 4,190,545 227 -

Current service cost 204,756 180,899 2,426 227
Interest cost 544,652 494,647 28 -
Benefits paid (408,369) (305,220) - -
Remeasurements recognised in statement of
comprehensive income:
- Loss / (gain) due to changes in experience adjustment 64,921 89,576 (132) -
- Loss due to changes in financial assumptions 490,761 - - -
555,682 89,576 (132) -
As at December 31, 5,547,168 4,650,447 2,549 227

22.1.3 Movement in fair value of plan assets

As at January 1, 3,595,043 3,534,846 - -

Interest income 429,383 427,951 265 -
Company contributions 228,670 222,480 4,321 -
Benefits paid (408,369) (305,220) - -
Remeasurements recognised in statement of
comprehensive income:
- Remeasurement of fair value of plan assets 235,667 (285,014) (227) -
As at December 31, 4,080,394 3,595,043 4,359 -

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

Pension Fund Gratuity Fund

2020 2019 2020 2019
Note (Rupees ‘000)
22.1.4 Expense recognised in the statement of profit or loss

Current service cost 204,756 180,899 2,426 227

Net interest cost / (income) 115,269 66,696 (237) -
320,025 247,595 2,189 227

22.1.5 Actual return on plan assets 665,050 142,937 38 -

22.1.6 Net recognised asset / liability

As at January 1, 1,055,404 655,699 227 -

Current service cost 204,756 180,899 2,426 227
Interest cost / (income) 115,269 66,696 (237) -
Company contributions (228,670) (222,480) (4,321) -

Remeasurements recognised in the statement of

comprehensive income:
- Loss / (gain) due to changes in experience adjustment 64,921 89,576 (132) -
- Loss due to changes in financial assumptions 490,761 - - -
- Remeasurement of fair value of plan assets (235,667) 285,014 227 -
320,015 374,590 95 -

As at December 31, 1,466,774 1,055,404 (1,810) 227

22.1.7 Remeasurements recognised in the statement of

comprehensive income:

Loss / (gain) due to changes in experience adjustment 64,921 89,576 (132) -

Loss due to changes in financial assumptions 490,761 - - -
Remeasurement of fair value of plan assets (235,667) 285,014 227 -
320,015 374,590 95 -

22.1.8 Plan assets are comprised as follows:

Debt instruments 2,421,002 1,610,808 - -

Equity instruments 22.1.10 1,610,497 1,473,163 - -
Bank balances 48,895 511,072 4,359 -
4,080,394 3,595,043 4,359 -

22.1.9 Principal actuarial assumptions used were as follows:

Discount rate 22.1.11 10.00 12.25 10.00 12.25

Future salary increases 8.00 10.25 8.00 10.25
Future pension increases 0.00 0.00 - -
Minimum wage increases 5.25 7.50 - -

22.1.10 Pension plan assets include the Company’s ordinary shares with a fair value of Rs. 331.373 million
(2019: Rs. 195.997 million).

22.1.11 The discount rate of 10.00% is representative of yields on long-term Government Bonds.

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NOTES TO THE FINANCIAL STATEMENTS For The Year Ended December 31, 2020

22.1.12 Expected contributions to pension fund and gratuity fund for the year ending December 31, 2021 are
Rs. 399.680 million and Rs. 4.385 million respectively.

Pension Fund Gratuity Fund

2020 2019 2020 2019
Note (Rupees ‘000)
22.1.13 Expected maturity analysis of undiscounted
retirement benefit plan:

Less than one year 244,390 294,755 12 -

Between one to two years 329,641 256,258 30 -
Between two to five years 1,258,603 1,104,076 1,278 -
Between five to ten years 3,292,504 3,302,790 9,560 227
5,125,138 4,957,879 10,880 227

22.1.14 The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:

Impact on defined benefit obligation

Pension Fund Gratuity Fund

(Rupees ‘000)

Discount rate (1% increase) (523,100) (367)

Discount rate (1% decrease) 618,996 449
Salary growth rate (1% increase) 353,168 453
Salary growth rate (1% decrease) (317,683) (376)
Pension growth rate (1% increase) 296,518 -
Pension growth rate (1% decrease) (263,062) -
Minimum wage increase (1% increase) (18,235) -
Minimum wage increase (1% decrease) 16,167 -

If life expectancy increases by 1 year, the obligation increases by Rs. 118.874 million.

The above sensitivity analysis are based on a change in an assumption while holding all other assumptions
constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated.
When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the
same method (present value of the defined benefit obligation calculated with the projected unit credit
method at the end of the reporting period) has been applied as when calculating the pension and gratuity
liability recognised within the statement of financial position.

22.2 Defined contribution scheme

An amount of Rs. 116.102 million (2019: Rs. 107.281 million) has been contributed during the year in respect
of the contributory provident fund maintained by the Company.

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

2020 2019
Note (Rupees ‘000)
22.3 Staff retirement benefit cost recognised in the statement of
profit or loss

Pension cost 22.1.4 320,025 247,595

Reimbursement from related party (2,967) (3,177)
Provident fund contribution 33 116,102 107,281
Employees Old-Age Benefits Institution 15,319 14,922
Gratuity cost 2,189 227

450,668 366,848

Allocated as:

Cost of sales 21.1 192,938 153,297

Selling and distribution expenses 23.1 210,352 172,895
Administrative expenses 24.1 47,378 40,656

450,668 366,848

22.4 As at December 31, 2020, investments out of provident fund have been made in accordance with the
provisions of section 218 of the Companies Act, 2017 and the rules formulated for this purpose.

2020 2019
No of employees
22.5 Number of employees

The detail of number of employees are as follows:

Average number of employees during the year 1,482 1,531

Number of employees as at year end 1,464 1,540

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NOTES TO THE FINANCIAL STATEMENTS For The Year Ended December 31, 2020

2020 2019
Note (Rupees ‘000)
23. SELLING AND DISTRIBUTION EXPENSES

Salaries, wages, allowances and staff welfare 23.1 2,016,884 1,768,629

Rent, rates and taxes 72 -
Repairs and maintenance 50,025 38,550
Royalty 23.2 27,280 29,378
Insurance 10,400 5,312
Depreciation 9.3 432,948 430,872
Depreciation on right-of-use assets 9.7 97,220 77,654
Amortisation of intangible assets 10 21,996 10,075
Legal, professional and other services 55,653 42,052
Postage, telephone and telegram 36,712 38,751
Printing and stationery 12,135 6,997
Travelling and conveyance 176,117 510,720
Advertising, samples and sales promotion 1,509,812 1,307,499
Forwarding expenses 553,679 505,735
Utilities 57,570 35,731
Computer expenses 8,049 3,431
Training and development expenses 14,025 23,696
Packing and miscellaneous supplies 110,316 65,745
Distributors commission 78,953 113,784
Fees and purchased services 70,742 77,521
Warehousing Services 74,807 68,215
Security expenses 29,309 28,388
Membership and subscription 2,112 5,348
Other expenses 24,732 34,409

5,471,548 5,228,492

Less: reimbursement from related party 160,007 166,982

5,311,541 5,061,510

23.1 These include a charge of Rs. 210.352 million (2019: charge of Rs. 172.895 million) in respect of staff
retirement benefits (note 22.3).

23.2 Royalty is paid to Hospira Inc. Its registered address is 275 N. Field Drive, Lake Forest, Illinois 60045, USA.
The Company and its directors have no relationship with Hospira Inc.

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

2020 2019
Note (Rupees ‘000)
24. ADMINISTRATIVE EXPENSES

Salaries, wages, allowances and staff welfare 24.1 423,595 412,671

Rent, rates and taxes 106 14,503
Repairs and maintenance 11,698 8,753
Insurance 13,567 12,790
Depreciation 9.3 28,141 19,393
Depreciation on right-of-use assets 9.7 32,485 32,978
Legal, professional and other services 22,140 22,148
Postage, telephone and telegram 8,001 7,431
Printing and stationery 3,459 3,663
Travelling and conveyance 12,814 22,475
Utilities 21,760 16,608
Computer expenses 2,627 101,681
Training and development expenses 876 1,578
Miscellaneous office supplies 15,395 6,906
Fees and purchased services 15,035 16,128
Security expenses 18,320 17,448
Membership and subscription 8,214 8,794
Other expenses 27,202 25,119
665,435 751,067
Less: Reimbursement from related party 23,273 19,447
642,162 731,620

24.1 These include a charge of Rs. 47.378 million (2019: charge of Rs. 40.656 million) in respect of staff
retirement benefits (note 22.3).
2020 2019
Note (Rupees ‘000)
25. OTHER CHARGES

Workers’ Profit Participation Fund 18.3 334,853 153,094

Auditors’ remuneration 25.1 9,531 8,224
Donations 25.2 4,799 5,740
Workers’ Welfare Fund 118,658 45,745
Central Research Fund 63,066 25,361
Provision for expected credit loss on trade debts 15.4 36,687 17,420
Provision for expected credit loss on trade deposits 17.2 20,875 21,192
Provision for expected credit loss on other receivables 18.2 290 407
Exchange loss - net 25.3 105,828 223,355
Property, plant and equipment written off - net - 11,350
Stamp duty 13,788 10,914
708,375 522,802
25.1 Auditors’ remuneration

Statutory audit fee 2,813 2,557

Tax advisory services 4,574 4,497
Special certifications 1,664 882
Out of pocket expenses 480 288
9,531 8,224

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

NOTES TO THE FINANCIAL STATEMENTS For The Year Ended December 31, 2020

25.2 Recipients of donations do not include any donee in which any director or his / her spouse had any interest.

25.3 This includes exchange gain earned from export receivables amounting to Rs. 45.515 million
(2019: Rs. 49.035 million) which has been offset against exchange losses incurred during the year.

2020 2019
26. OTHER INCOME Note (Rupees ‘000)

Income from financial assets

Income from savings and term deposit receipts 26.1 344,355 260,485

Income from non-financial assets

Other income 26.2 101,594 76,563

Gain on disposal of property, plant and equipment - net 4,158 -
Write back of liabilities 26.3 255,457 -
Gain on recognition of GIDC payables - net 41,614 -
Scrap sales 13,513 14,975
416,336 91,538
760,691 352,023

26.1 Income is derived from saving accounts and term deposit receipts maintained in / from conventional banks.

26.2 This represents income earned from Abbott GmbH & Co. KG., a related party, at the rate of 10% (2019: 10%)
of half of the written down value of assets deployed by the Company on their behalf in the Company’s
Diagnostic Division in Pakistan.
26.3 During the year ended 31 December 2020, Abbott B.V. Netherlands, a related party, waived off the amount
cross charged to the Company, during current and prior years, in respect of PC support and other related
services, such as infrastructure services.

2020 2019
(Rupees ‘000)
27. FINANCE COSTS

Bank charges 6,515 9,905

Mark-up on lease liabilities 70,390 43,185
76,905 53,090

28. TAXATION - net

Current
- For the year 1,736,496 1,135,481
- Prior year (16,164) 91,171

1,720,332 1,226,652
Deferred (12,022) (15,796)
1,708,310 1,210,856

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

2020 2019
(Rupees ‘000)
28.1 Relationship between tax expense and accounting profit

Accounting profit before taxation 6,243,559 2,510,741

Tax rate 29% 29%

Tax on accounting profit 1,810,632 728,115

Tax for prior years (16,164) 91,171

Tax effect of:

- Expenses that are not deductible in determining taxable profit 35,652 35,106
- Applying lower tax rates to certain income 13,731 385,264
- Tax rate adjustment - 36,069
- Others (including the impact arising as a consequence of reversal
of deferred tax liability and change in allocation ratio of revenue
chargeable under FTR and Non-FTR) (135,541) (64,869)

1,708,310 1,210,856

29. EARNINGS PER SHARE - BASIC / DILUTED

Profit for the year 4,535,249 1,299,885

Number of shares

Weighted average number of ordinary shares in issue during the year 97,900,302 97,900,302

(Rupees)

Earnings per share 46.33 13.28

29.1 There is no dilutive effect on the basic earnings per share of the Company.

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

NOTES TO THE FINANCIAL STATEMENTS For The Year Ended December 31, 2020

2020 2019

Note (Rupees ‘000)

30. CASH GENERATED FROM OPERATIONS

Profit before taxation 6,243,559 2,510,741

Adjustment for:
Depreciation / amortisation 964,742 881,746
Right-of-use assets 144,383 107,339
Amortisation on intangible assets 21,996 10,075
Gain on disposal of property, plant and equipment - net (4,158) (4,733)
Property, plant and equipment written off - 16,083
Interest income (344,355) (260,485)
Expense recognised in profit or loss in respect of equity-settled
share-based compensation 118,138 115,687
Staff retirement benefits 89,223 25,115
Finance costs 76,905 53,090
Working capital changes 30.1 2,387,201 (1,853,497)

9,697,634 1,601,161
30.1 Working capital changes

Decrease / (increase) in current assets net of provision

Stores and spares 31,803 (97,507)

Stock-in-trade 1,067,726 (1,620,322)
Trade debts (31,639) 244,129
Loans and advances (144,490) 14,012
Trade deposits and short-term prepayments 195,137 61,724
Other receivables 157,346 (256,161)

1,275,883 (1,654,125)
Increase / (decrease) in current liabilities

Trade and other payables - net 1,111,318 (199,372)

2,387,201 (1,853,497)

30.2 Changes in liabilities arising from financing activities

1 January Dividend 31 December
Cash flows New leases Others
2020 declared 2020
(Rupees ‘000)

Dividend 48,825 (2,201,291) - 2,202,757 - 50,291

Lease liabilities 381,139 (254,441) 619,161 - 70,390 816,249
429,964 (2,455,732) 619,161 2,202,757 70,390 866,540

1 January Dividend 31 December

Cash flows New leases Others
2019 declared 2019
(Rupees ‘000)

Dividend 66,208 (996,386) - 979,003 - 48,825

Lease liabilities 214,252 (166,188) 296,095 - 36,980 381,139
280,460 (1,162,574) 296,095 979,003 36,980 429,964

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

31. SHARE-BASED COMPENSATION

Share-based compensation plan

As at December 31, 2020, the Company’s equity settled share-based compensation plan includes restricted
stock units plan.
Under the plan, the Company employees, eligible as per policy are awarded restricted stock units of Abbott
Laboratories, USA (the ultimate holding company). The plan entitles eligible employees to receive shares
of the ultimate holding company which are vested equally over next three years, subject to certain vesting
conditions.
In accordance with IFRS 2 (Share-Based Payments), services received from employees as consideration
for stock units are recognised as an expense in the statement of profit or loss, with the corresponding entry
recorded as equity. The expense corresponds to the fair value of the stock unit of the Abbott Laboratories,
USA and is charged to statement of profit or loss on a straight-line basis over the vesting period of the plan.

An expense of Rs. 118.138 million (2019: Rs. 115.687 million) was recognized for this plan during the year.

The fair value of restricted stock units plan is measured at the date of grant using the Black-Scholes option
pricing model with the following assumptions:

2019 2018 2017

Volatility 19.80% 19.00% 18.00%
Dividend yield 1.70% 1.90% 2.40%
Risk free interest rate 2.50% 2.70% 2.10%

Expected volatility is based on implied volatilities from traded options on Abbott Laboratories, USA’s stock
and historical volatility of Abbott Laboratories, USA’s stock over the expected life of the stock units.

A summary of units outstanding is given below:

2020 2019
Average Average
exercise exercise
price per Stock units price per Stock units
stock unit stock unit
(USD) (USD)

At January 1, 69.44 12,132 54.75 14,315

Granted 87.72 7,416 75.90 10,936
Exercised / cancelled 71.56 (11,315) 58.80 (13,119)

At December 31, 83.00 8,233 69.44 12,132

Stock units outstanding at the end of the year have the following expiry date and exercise prices: 
2020 2019
Exercise Exercise Price
Vesting date Stock units Stock units
Price (USD) (USD)

2020 - - 8,487 66.67

2021 5,761 80.97 3,645 75.90
2022 2,472 87.72 - -

8,233 83.00 12,132 69.44

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

NOTES TO THE FINANCIAL STATEMENTS For The Year Ended December 31, 2020

2020 2019
(Million units)
32. PLANT CAPACITY AND PRODUCTION
Actual production
Packs solids 95.17 84.26
Packs liquids 122.03 127.45
Packs injectables 1.31 2.67
Packs cream 11.10 12.21
Packs GHC 2.47 2.22
Total units 232.08 228.81
The production capacity of the Company’s plants is indeterminable as these are multi-product plants
involving varying processes of manufacture. The Company’s production was according to market demand.
33. TRANSACTIONS WITH RELATED PARTIES
The related parties of the Company comprise the holding company, ultimate holding company, group
companies, employee retirement benefit plans, directors and key management personnel. All the transactions
with related parties are entered into at agreed terms in the normal course of business as approved by the
Board of Directors of the Company. Transactions with related parties are as follows:
Note 2020 2019
(Rupees ‘000)
Group companies
Sale of goods 20 567,131 1,065,787
Purchase of materials 6,713,394 7,772,418
Technical service fee 21 190,979 162,028
Reimbursements of expenses - net 179,174 261,490
Other income 357,051 76,563
Retirement fund:
Contribution to Pension Fund 22.1.3 228,670 222,480
Contribution to Provident Fund 22.3 116,102 107,281
Contribution to Gratuity Fund 22.1.3 4,321 -
Dividend:
Paid to Abbott Asia Investment Limited 1,715,838 762,595
Paid to Pension Fund 9,871 4,387
Paid to Provident Fund 11,046 4,909

Key management personnel:

Short-term employee benefits 381,881 354,875
Post-employment benefits 34,766 33,420
33.1 Disposals of property, plant and equipment and right-of-use assets to key management personnel are
disclosed in note 9.4 and 9.8 respectively.
33.2 Outstanding balances in respect of related party sales and purchases, reimbursements and staff retirement
benefits are included in notes 7, 15, 18 and 22.
33.3 Key management personnel are those persons having authority and responsibility for planning, directing
and controlling the activities of the entity directly or indirectly. The Company considers all members of their
executive management team, including the chief executive and directors, to be key management personnel.
Outstanding balances of loans and advances to key management personnel are disclosed in notes 11 and 16.

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

33.4 Following are the related parties including associated companies with whom the Company had entered into
transactions or have arrangements / agreements in place:

Aggregate percentage
Country of
S No. Name of undertaking Basis of association of shareholding in the
incorporation
Company

1 Abbott Asia Investments Limited, U.K. United Kingdom Holding Company 77.90%

2 Abbott Laboratories, USA USA Ultimate Holding Company 77.90%

3 Abbott GmbH & Co. K.G. Germany Associated Company Not Applicable

4 Abbott Diagnostics GmbH Germany Associated Company Not Applicable

5 Abbott Logistics B.V. Netherlands Associated Company Not Applicable

6 Abbott International LLC., USA USA Associated Company Not Applicable

7 Abbott Diabetes Care Inc. USA Associated Company Not Applicable

8 Abbott Diabetes Care Limited, UK United Kingdom Associated Company Not Applicable

9 Abbott Products Operation AG Switzerland Associated Company Not Applicable

10 Abbott Laboratories (Singapore) PTE Limited Singapore Associated Company Not Applicable

11 Abbott Argentina S.A. Argentina Associated Company Not Applicable

12 Abbott Laboratories Limited UK United Kingdom Associated Company Not Applicable

13 Abbott Laboratories SA Egypt - note 33.4.1 Switzerland Associated Company Not Applicable

14 Abbott Laboratories International Co. USA Associated Company Not Applicable

15 Abbott B.V. Netherlands Netherlands Associated Company Not Applicable

16 Abbott S.R.L Italy Italy Associated Company Not Applicable

17 Abbott Laboratories B.V. Netherlands Associated Company Not Applicable

18 ALSA MERO Office - note 33.4.1 Switzerland Associated Company Not Applicable

19 Abbott Ireland Ireland Associated Company Not Applicable

20 Alere Inc. USA USA Associated Company Not Applicable

21 Abbott Rapid Diagnostics Ireland Associated Company Not Applicable

22 Abbott Saudi Arabia Saudi Arabia Associated Company Not Applicable

33.4.1 These entities are branch offices of Abbott Laboratories S.A., incorporated in Switzerland.

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

NOTES TO THE FINANCIAL STATEMENTS For The Year Ended December 31, 2020

34. REMUNERATION OF CHIEF EXECUTIVE, DIRECTOR AND EXECUTIVES

The aggregate amounts charged in the financial statements in respect of remuneration, including all benefits
to the chief executive, directors and executives of the Company are as follows:

2020 2019
Chief Chief
Director Executives Director Executives
Executive Executive
(Rupees ‘000)

Short-term employee benefits

Managerial remuneration 41,670 12,520 745,083 34,757 10,318 637,617

Leave passage / encashment 1,759 1,086 44,834 2,203 685 40,923
Medical expenses 267 38 20,793 491 12 15,868
Rent / utility / maintenance / furnishing 2,537 - 5,747 - 889 6,851

46,233 13,644 816,457 37,451 11,904 701,259

Retirement benefits 5,837 1,932 111,778 5,717 1,752 98,680

52,070 15,576 928,235 43,168 13,656 799,939

Number of persons 1 1 169 1 1 145

34.1 In addition, Rs. 118.138 million (2019: Rs. 115.687 million) has been charged in the statement of profit or loss
in respect of share-based payments to chief executive, directors and certain executives of the Company as
mentioned in notes 2.21 and 31.
34.2 Managerial remuneration includes Rs. 126.283 million (2019: Rs. 85.288 million) charged in the statement of
profit or loss in respect of bonus to chief executive, directors and certain executives of the Company.
34.3 Directors and certain other executives are provided with free use of Company maintained cars, club
membership and telephone facilities as per terms of employment.
34.4 The aggregate amount charged in these financial statements for fees to non-executive directors is Rs. 2.225
million (2019: Rs. 2.250 million).

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35. SEGMENT WISE OPERATING RESULTS

2020 2019

Pharma- Pharma-
Nutritional Diagnostics Others Total Nutritional Diagnostics Others Total
ceutical ceutical

(Rupees `000)

Sales 23,960,687 9,515,163 2,162,855 787,773 36,426,478 21,252,586 6,823,293 2,075,358 749,308 30,900,545
Less: Sales returns 83,707 21,392 - 12,369 117,468 50,763 13,947 - 17,767 82,477
Less: Sales tax and excise duty - 961,797 15,680 48,156 1,025,633 - 605,612 13,592 42,989 662,193

Sales - net 23,876,980 8,531,974 2,147,175 727,248 35,283,377 21,201,823 6,203,734 2,061,766 688,552 30,155,875
Cost of sales 16,572,308 4,618,888 1,363,093 507,237 23,061,526 15,144,233 4,658,449 1,350,817 474,636 21,628,135

Gross profit 7,304,672 3,913,086 784,082 220,011 12,221,851 6,057,590 1,545,285 710,949 213,916 8,527,740
Selling and distribution expenses 3,440,818 1,195,232 538,584 136,907 5,311,541 3,308,720 1,078,290 533,523 140,977 5,061,510
Administrative expenses 549,410 80,059 12,693 - 642,162 642,256 73,552 15,812 - 731,620

Segment results 3,314,444 2,637,795 232,805 83,104 6,268,148 2,106,614 393,443 161,614 72,939 2,734,610

Unallocated corporate expenses / income

Other income 760,691 352,023
Other charges 708,375 522,802
Profit before finance costs and taxation 6,320,464 2,563,831
Finance costs 76,905 53,090
Profit before taxation 6,243,559 2,510,741
Taxation 1,708,310 1,210,856
4,535,249 1,299,885

Other Information
Segment assets employed 11,593,408 1,089,473 3,203,432 68,517 15,954,830 12,231,707 1,342,100 2,980,042 94,720 16,648,569

Unallocated corporate assets 8,960,914 4,104,111

Total assets 24,915,744 20,752,680

Segment liabilities 5,221,834 972,307 714,521 80,073 6,988,735 4,670,954 614,597 444,776 121,400 5,851,727

Unallocated corporate liabilities 2,336,757 1,528,560

Total liabilities 9,325,492 7,380,287

Capital expenditure during the year 1,076,274 - 299,788 3,998 1,380,060 1,231,496 - 636,008 - 1,867,504

Depreciation / amortisation - operating

fixed assets 569,400 3,246 391,354 742 964,742 495,219 3,431 382,053 1,043 881,746

Depreciation - right-of-use assets 118,748 17,761 7,064 810 144,383 99,344 12,505 6,386 - 118,235

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NOTES TO THE FINANCIAL STATEMENTS For The Year Ended December 31, 2020

2020 2019
Note (Rupees ‘000)
35.1 Reconciliation of segment assets and liabilities to total assets and liabilities
35.1.1 Segment Assets
Allocated segment assets 15,954,830 16,648,569
Loans and advances 277,661 133,171
Taxation - net 921,431 1,013,151
Cash and bank balances 7,488,881 2,757,519
Other unallocated assets 272,941 200,270
24,915,744 20,752,680
35.1.2 Segment Liabilities
Allocated segment liabilities 6,988,735 5,851,727
Staff retirement benefits 1,464,964 1,055,631
Deferred taxation 227,587 239,609
Unclaimed dividends 50,291 48,825
Other unallocated liabilities 593,915 184,495
9,325,492 7,380,287
35.2 Geographical information
Sales to external customers, net of returns, discounts, sales tax and excise duty
Pakistan 33,522,317 27,725,809
Afghanistan 1,115,628 1,260,863
Sri Lanka 55,793 69,679
Bangladesh 22,508 33,737
Switzerland 33 567,131 1,065,787

35,283,377 30,155,875

35.3 Segment assets consist primarily of property, plant and equipment, trade debts and stock-in-trade. Segment
liabilities comprise of trade creditors and an apportionment of accrued expenses. Assets and liabilities which
cannot be allocated to a particular segment on a reasonable basis are reported as unallocated corporate
assets and liabilities.
36. FINANCIAL RISK MANAGEMENT
36.1 Financial assets and financial liabilities
2020 2019
Financial assets (Rupees ‘000)
Debt instruments at amortised cost

Long-term loans 64,293 53,682

Long-term deposits 7,513 7,513
Trade debts 935,468 903,829
Loans 32,673 32,550
Trade deposits 261,517 344,105
Interest accrued 6,404 6,288
Other receivables 234,196 243,156
Cash and cash equivalents 7,488,881 2,757,519

9,030,945 4,348,642

Financial liabilities at amortised cost

Trade and other payables 5,524,840 5,115,769

5,524,840 5,115,769
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The Company’s activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk.
The Company’s overall risk management programme focuses on minimizing potential adverse effects on
the Company’s financial performance. The overall risk management of the Company is carried out by the
Company’s senior management team under policies approved by the Board of Directors. Such policies entail
identifying, evaluating and addressing financial risks of the Company.
The Company’s overall risk management procedures to minimize the potential adverse affects of financial
market on the Company’s performance are as follows:

36.2 Credit risk

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and
cause the other party to incur a financial loss without taking into account the fair value of any collateral.
Concentration of credit risk arises when a number of counter parties are engaged in similar business
activities or have similar economic features that would cause their ability to meet contractual obligations
to be similarly affected by changes in economical, political or other conditions. Concentrations of credit
risk indicate the relative sensitivity of the Company’s performance to developments affecting a particular
industry. The normal credit term is 30 to 120 days upon delivery for certain private customers and 120 to 180
days for government institutions.
Credit risk of the Company arises principally from the trade debts, loans and advances, trade deposits, other
receivables and balances with banks. The carrying amount of financial assets represents the maximum credit
exposure. To reduce the exposure to credit risk on trade debts, the Company has developed a formal approval
process, whereby credit limits are applied to its customers. The management continuously monitors the
credit exposure towards the customers and makes provision against those balances considered doubtful of
recovery. The credit risk on liquid funds such as balances with banks is limited because the counter parties
are banks with reasonably high credit ratings.

The maximum exposure to credit risk at the reporting date is as follows:

2020 2019
(Rupees ‘000)

Loans 96,966 86,232

Deposits 269,030 351,618
Trade debts 935,468 903,829
Interest accrued 6,404 6,288
Other receivables 234,196 243,156
Balances with banks & short-term investments 7,476,428 2,734,828

9,018,492 4,325,951

Loans, deposits, interest accrued and certain portion of other receivables as mentioned above are neither
past due nor impaired.

The impaired trade debts and the basis of impairment are disclosed in notes 15 and 2.18 respectively.

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NOTES TO THE FINANCIAL STATEMENTS For The Year Ended December 31, 2020

Set out below is the information about the credit risk exposure on the Company’s trade debts from
Government institutions and private customers.
31st December 2020
Receivables from Government Institutions (Rs. in 000’s)
(Days Past Due)
Current 0-240 240-270 270-300 300-330 330-360 >360 Total

Expected credit loss rate 0.02% 0.02% 14.57% 16.11% 28.05% 70.23% 100.00%
Estimated total gross carrying amount at default 157,706 36,268 - 176 1,417 2,098 64,717 262,382
Expected credit loss 29 8 - 28 398 1,472 64,717 66,652
Amounts past due but not impaired 157,677 36,260 - 148 1,019 626 - 195,730

31st December 2020

Private Customers (Rs. in 000's)
(Days Past Due)
Current 0-30 30-60 60-90 90-360 >360 Total
Expected credit loss rate 0.01% 0.01% 0.01% 10.00% 47.34% 100.00%
Estimated total gross carrying amount at default 648,378 57,663 15,479 5,853 24,736 15,559 767,668
Expected credit loss 67 7 2 585 11,710 15,559 27,930
Amounts past due but not impaired 648,311 57,656 15,477 5,268 13,026 - 739,738

31st December 2019

Receivables from Government Institutions (Rs. in 000’s)
(Days Past Due)
Current 0-240 240-270 270-300 300-330 330-360 >360 Total

Expected credit loss rate 0.03% 0.03% 14.57% 23.04% 45.84% 75.82% 100.00%
Estimated total gross carrying amount at default 289,868 92,304 - 1,053 2,070 61 32,960 418,316
Expected credit loss 90 30 - 243 949 45 32,960 34,317
Amounts past due but not impaired 289,778 92,274 - 810 1,121 16 - 383,999

31st December 2019

Private Customers (Rs. in 000's)
(Days Past Due)
Current 0-30 30-60 60-90 90-360 >360 Total
Expected credit loss rate 0.01% 0.01% 0.01% 0.01% 52.00% 100.00%
Estimated total gross carrying amount at default 422,283 63,892 18,895 5,669 19,059 13,610 543,408
Expected credit loss 46 8 2 1 9,911 13,610 23,578
Amounts past due but not impaired 422,237 63,884 18,893 5,668 9,148 - 519,830

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The credit quality of balances with banks can be assessed with reference to external credit ratings as follows:

Rating Ratings Date of 2020 2019

Name of Bank Agency Short-term Long-term Rating (Rupees ‘000)

Deutsche Bank AG Moody’s P-2 A3 May 2020 44,147 4,667

S&P A-2 BBB+ Apr 2020
Fitch F2 BBB Jun 2019

MCB Bank Limited PACRA A1+ AAA Jun 2020 1,954 216

Standard Chartered Bank

(Pakistan) Limited PACRA A1+ AAA Jun 2020 7,382,991 2,719,300

National Bank of Pakistan JCR-VIS A-1+ AAA Jun 2020 5,297 5,020
PACRA A1+ AAA Jun 2020

Faysal Bank Limited PACRA A1+ AA Jun 2020 2,686 1,092

JCR-VIS A-1+ AA Jun 2020

Habib Bank Limited JCR-VIS A-1+ AAA Jun 2020 39,353 4,533

Financial assets other than trade debts and bank balances, are not exposed to any material credit risk.

36.3 Liquidity risk

Liquidity risk reflects the Company’s inability in raising funds to meet commitments. Liquidity risk arises
because of the possibility that the Company could be required to pay its liabilities earlier than expected or
encounters difficulty in raising funds to meet commitments associated with financial liabilities as they fall
due. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have
sufficient liquidity to meet its liabilities when due. The Company manages liquidity risk by maintaining
sufficient cash / bank balance and the availability of funding through an adequate amount of committed
credit facilities. As at December 31, 2020, the Company’s financial liabilities of Rs. 5,523.461 million (2019:
Rs. 5,136.288 million) are all current and due in next financial year.

36.4 Market risk

Market risk is the risk that the value of future cash flows of a financial instrument will fluctuate because
of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and
other price risk. The Company is not exposed to other price risk whereas the exposure to currency risk and
interest rate risk is given below:

36.4.1 Currency risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rates and arises where transactions are done in foreign currency.
It arises mainly where receivables and payables exist due to transactions entered into foreign currencies.

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NOTES TO THE FINANCIAL STATEMENTS For The Year Ended December 31, 2020

The Company’s exposure to foreign currency risk at the reporting date was as follows:

2020 2019
Rupees US Dollars Rupees US Dollars
(‘000)

Cash and cash equivalents 520,448 3,233 478,514 3,088

Due from related parties 158,141 982 178,908 1,155
Bills payable (1,422,913) (8,838) (1,496,409) (9,657)
Payable to related parties (170,730) (1,060) (283,305) (1,828)

(915,054) (5,683) (1,122,292) (7,242)

The following significant exchange rates were applied during the year:

Statement of financial
Average rate
position date rate

2020 2019 2020 2019

(Rupees)

US Dollars 161.00 154.95 161.91 149.67

A ten percent strengthening / weakening of the Pakistani Rupee against the US Dollar at the reporting
date would increase / decrease profit after tax for the year by Rs. 66.248 million (2019: Rs. 58.104 million).
This analysis assumes that all other variables, in particular interest rates, remain constant. The analysis is
performed on the same basis for the previous year.

36.4.2 Interest rate risk

Interest rate risk is the risk that the fair value of the future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. Majority of the interest rate exposure arises from savings and
deposit accounts with banks.

2020 2019
(Rupees ‘000)

Fixed rate instruments

Financial assets 6,954,162 2,253,454

As of the statement of financial position date, the Company is not significantly exposed to any interest rate
risk.

36.5 Fair value of financial assets and liabilities

Fair value is the amount for which an asset could be exchanged, or a liability can be settled, between
knowledgeable willing parties in an arm’s length transaction. As of the statement of financial position date,
the carrying value of all financial assets and liabilities reflected in the financial statements approximate to
their fair values.
As of the statement of financial position date, the Company does not have any financial instruments
measured at fair value.

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37. CAPITAL RISK MANAGEMENT

The Company’s objective when managing capital is to safeguard the Company’s ability to remain as a going
concern and continue to provide returns for shareholders and benefits for other stakeholders.
The Company manages its capital structure and makes adjustments to it, in light of changes in economic
conditions. In order to maintain or adjust the capital structure, the Company may adjust the amount of
dividends paid to shareholders, return capital to shareholders or issue new shares.
The current capital structure of the Company is equity based with only vehicles being procured through a
lease facility.

38. NON - ADJUSTING EVENT AFTER THE STATEMENT OF FINANCIAL POSITION DATE

In their meeting held on February 26, 2021, the Board of Directors of the Company have proposed a final
cash dividend for the year ended December 31, 2020 of Rs. 25.0 per share (2019: cash dividend of Rs. 7.5 per
share). This is in addition to interim cash dividend of Rs. 15.0 per share (2019: Rs. NIL per share). The total
dividend declared during the year and dividend per share have been summarised below:

2020 2019
(Rupees ‘000)

Cash dividend 3,916,012 734,252

(Rupees)

Cash dividend per share 40.00 7.50

The financial statements for the year ended December 31, 2020 do not include the effect of the final cash
dividend which will be accounted for in the financial statements for the year ending December 31, 2021.
39. Certain corresponding figures have been reclassified or rearranged for better presentation of these financial
statements.
40. Figures in these financial statements are rounded to the nearest thousand (Rs. in ‘000), except as otherwise
indicated.

41. DATE OF AUTHORISATION

These financial statements were authorised for issue on February 26, 2021 by the Board of Directors of the
Company.

Chief Executive Director Chief Financial Officer

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

PAT TERN OF SHAREHOLDING As At December 31, 2020

Size of Holding Number of

Total Shares
Rs. 10 Shares Shareholders

1 100 964 38,956

101 500 621 172,522
501 1,000 255 197,100
1,001 5,000 510 1,084,404
5,001 10,000 89 637,741
10,001 15,000 23 292,755
15,001 20,000 10 176,443
20,001 25,000 7 158,170
25,001 30,000 3 88,200
30,001 35,000 2 64,452
35,001 40,000 6 223,529
40,001 45,000 3 126,550
45,001 50,000 1 45,100
50,001 55,000 1 53,000
55,001 60,000 3 174,800
60,001 65,000 2 127,200
65,001 70,000 2 135,900
70,001 75,000 1 75,000
75,001 80,000 1 76,456
80,001 85,000 1 84,550
90,001 95,000 1 93,400
140,001 145,000 1 141,050
145,001 150,000 1 147,203
150,001 155,000 1 152,500
155,001 160,000 1 156,350
220,001 225,000 1 223,350
225,001 230,000 1 227,390
240,001 245,000 1 241,450
245,001 250,000 1 245,500
335,001 340,000 1 336,834
340,001 345,000 1 342,889
365,001 370,000 1 369,400
380,001 385,000 1 380,122
385,001 390,000 1 385,750
435,001 440,000 1 438,689
440,001 445,000 1 442,105
450,001 455,000 1 454,150
490,001 495,000 1 490,926
520,001 525,000 1 521,101
585,001 590,000 1 590,000
745,001 750,000 1 746,093
830,001 835,000 1 830,624
835,001 840,000 1 839,200
1,075,001 1,080,000 1 1,077,418
1,085,001 1,090,000 3 3,262,341
1,960,001 1,965,000 1 1,963,250
2,505,001 2,510,000 1 2,508,938
76,255,001 76,260,000 1 76,259,451
TOTAL 2,535 97,900,302

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

CATEGORIES OF SHAREHOLDERS As At December 31, 2020

Number of Number of shares

S.No. Shareholder’s category %
shareholders held
1 Directors, Chief Executive Officer and their spouse(s) and minor children 8 19,903 0.02
2 Associated Companies, Undertakings and Related Parties* 3 77,189,066 78.84
3 NIT and ICP 2 980 0.00
4 Banks, Development Finance Institutions, Non-Banking Finance Institutions 5 1,132,197 1.16
5 Insurance Companies 13 3,520,626 3.60
6 Modarabas and Mutual Funds 25 3,757,276 3.84
7 General Public - local 2,357 9,299,943 9.50
8 Others 122 2,980,311 3.04
Total: 2,535 97,900,302 100.00
*Includes shareholders having shareholding greater than 10%, these are disclosed on page 192.

Directors, Chief Executive Officer and their spouse(s) and minor children

S.No. Folio Name Holding

1 4487 MR. MUNIR A. SHAIKH 1
2 4607 SYED ANIS AHMED 1
3 4831 MR. MUHAMMAD ANJUM LATIF RANA 1
4 03277-82073 MR. MOHSIN ALI NATHANI 10,000
5 03277-91835 MS. ZOYA TAZEEN MOHSIN NATHANI (Spouse of Mr. Mohsin Ali Nathani) 5,000
6 03350-136842 MS. AYLA MAJID 500
7 03277-90453 MR. EHSAN ALI MALIK 500
8 12690-1374 MS. MARIAM EHSAN ALI MALIK (Spouse of Mr. Ehsan Ali Malik) 3,900
Total: 19,903

Associated Companies, Undertakings and Related Parties

S.No. Folio Name Holding

1 4502 M/S. ABBOTT ASIA INVESTMENTS LIMITED 76,259,451
2 03277-2083 TRUSTEES ABBOTT LABORATORIES (PAKISTAN) LIMITED STAFF PENSION FUND 438,689
3 03277-7217 TRUSTEES ABBOTT LABORATORIES (PAKISTAN) LIMITED STAFF PROVIDENT FUND 490,926
Total: 77,189,066

List of NIT and ICP

S.No. Folio Name Holding

1 2405 NATIONAL BANK OF PAKISTAN (TRUSTEE DEPARTMENT) 100
2 4171 NBP TRUSTEE DEPARTMENT 880
Total : 980

Banks, Development Finance Institutions and Non-Banking Finance Institutions

S.No. Folio Name Holding
1 02246-42 HABIB BANK LIMITED-TREASURY DIVISION 245,500
2 02832-32 MEEZAN BANK LIMITED 45,100
3 03889-28 NATIONAL BANK OF PAKISTAN 1,397
4 03525-105464 INNOVATIVE INVESTMENT BANK LIMITED (UNDER LIQUIDATION) 1,000
5 04127-28 MCB BANK LIMITED - TREASURY 839,200
Total: 1,132,197

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

CATEGORIES OF SHAREHOLDERS As At December 31, 2020

Insurance Companies

S.No. Folio Name Holding

1 3137 UNITED INSURANCE CO. OF PAK LIMITED 2
2 03277-10526 HABIB INSURANCE CO. LIMITED 55,700
3 18085-28 EFU LIFE ASSURANCE LIMITED 4,550
4 13748-915 ADAMJEE LIFE ASSURANCE CO.LTD - DGF 10,750
5 03277-90405 DAWOOD FAMILY TAKAFUL LIMITED 6,400
6 13748-600 ADAMJEE LIFE ASSURANCE COMPANY LTD-AMAANAT FUND 11,400
7 12690-996 IGI LIFE INSURANCE LIMITED 350
8 13755-21 ADAMJEE INSURANCE COMPANY LIMITED 369,400
9 13748-501 ADAMJEE LIFE ASSURANCE COMPANY LTD-IMF 223,350
10 13748-543 ADAMJEE LIFE ASSURANCE COMPANY LIMITED-NUIL FUND 16,650
11 18044-22 ADAMJEE LIFE ASSURANCE COMPANY LIMITED 28,200
12 18093-27 JUBILEE LIFE INSURANCE COMPANY LIMITED 1,963,250
13 02683-23 STATE LIFE INSURANCE CORPORATION OF PAKISTAN 830,624
Total : 3,520,626

Modarabas and Mutual Funds

S.No. Folio Name Holding

1 3031 M/S. GOLDEN ARROW SELECTED STOCK 48
2 05991-23 CDC - TRUSTEE MEEZAN BALANCED FUND 2,250
3 11262-23 CDC - TRUSTEE MCB PAKISTAN ASSET ALLOCATION FUND 59,100
4 06411-21 CDC - TRUSTEE AKD INDEX TRACKER FUND 4,964
5 07070-22 CDC - TRUSTEE MEEZAN ISLAMIC FUND 69,050
6 13946-28 CDC - TRUSTEE KSE MEEZAN INDEX FUND 63,200
7 12120-28 CDC - TRUSTEE NIT EQUITY MARKET OPPORTUNITY FUND 41,350
8 12310-25 CDC - TRUSTEE FIRST HABIB STOCK FUND 1,500
9 13961-26 MCBFSL - TRUSTEE PAK OMAN ISLAMIC ASSET ALLOCATION FUND 1,400
10 14126-26 CDC-TRUSTEE FIRST HABIB ISLAMIC STOCK FUND 900
11 14902-21 CDC - TRUSTEE NATIONAL INVESTMENT (UNIT) TRUST 2,508,938
12 16733-20 MCBFSL TRUSTEE ABL ISLAMIC DEDICATED STOCK FUND 4,000
13 16139-23 CDC - TRUSTEE NIT ISLAMIC EQUITY FUND 84,550
14 16162-20 CDC-TRUSTEE NIT-IPF EQUITY SUB-FUND 4,300
15 17277-26 CDC - TRUSTEE FIRST HABIB ASSET ALLOCATION FUND 1,200
16 16501-27 CDC - TRUSTEE MEEZAN ASSET ALLOCATION FUND 50
17 05371-28 CDC - TRUSTEE MCB PAKISTAN STOCK MARKET FUND 454,150
18 05488-25 CDC - TRUSTEE PAKISTAN CAPITAL MARKET FUND 14,750
19 05819-23 CDC - TRUSTEE ALHAMRA ISLAMIC STOCK FUND 156,350
20 06213-25 CDC - TRUSTEE UNIT TRUST OF PAKISTAN 21,250
21 11049-29 MC FSL - TRUSTEE JS GROWTH FUND 66,850
22 14373-27 MCBFSL - TRUSTEE ABL ISLAMIC STOCK FUND 19,200
23 06726-23 CDC-TRUSTEE ALHAMRA ISLAMIC ASSET ALLOCATION FUND 141,050
24 02113-708 FIRST UDL MODARABA 100
25 07450-521 BRR GUARDIAN MODARABA 36,776
Total: 3,757,276

Shareholders Holding 10% or more Voting Rights in the Listed Company

S.No. Folio Name Holding

1 4502 M/S. ABBOTT ASIA INVESTMENTS LIMITED 76,259,451
Total : 76,259,451

S.No. No. of Shareholders Name Holding

1 2479 GENERAL PUBLIC & OTHERS 12,280,254
Total : 12,280,254

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 ABBOTT PAKISTAN 2020 ANNUAL REPORT

NOTICE OF ANNUAL GENERAL MEETING

NOTICE is hereby given that the 72nd Annual General Meeting of the Members of Abbott Laboratories (Pakistan)
Limited (“the Company”) will be held on Wednesday, April 21st, 2021 at 10:00 a.m. virtually through a video-link
facility to transact the following business:

ORDINARY BUSINESS

1. To receive, consider and adopt the Audited Financial Statements, together with the Directors’ Report, the
Auditors’ Report, and the Chairman’s Review Report thereon for the financial year ended December 31st, 2020.
2. To approve cash dividend of Rs. 25.0 per share (i.e. 250%) for the financial year ended December 31st, 2020.
3. To reappoint M/s EY Ford Rhodes, Chartered Accountants, as the Auditors of the Company for the period
ending on date of the next Annual General Meeting, and to authorise the Directors to fix their remuneration.
In view of the continuing COVID-19 related risks associated with holding a physical meeting, to ensure the well-
being of the meeting participants and in line with best practices and in compliance with the Government of Sindh
Home Department Notification No. SOJI/8-1(04)/2020 (Stage-2 NPISs) dated 15 March 2021 directing the closure
of indoor gatherings, the Company will hold the meeting virtually, and has made adequate arrangements for the
members to participate seamlessly via video-link. For attending the meeting, members are required to email their
names, folio number, valid email address and number of shares held in their names to the following email address:
[email protected]. The members/proxies will receive video-link login credentials following the
provision of the requisite details.

By Order of the Board of Directors

HUMAYUN ALTAF
COMPANY SECRETARY

Karachi: dated February 26th, 2021

Notes:

1. The Share Transfer books of the Company will remain closed from 14th April 2021 to 21st April 2021 (both
days inclusive) and the dividend will be paid to the Members whose names will appear in the Register of
Members on 13th April, 2021. Members (Non-CDC) are requested to promptly notify the Company’s Registrar
of any change in their addresses and submit, if applicable to them, the Non–deduction of Zakat Form CZ-50
with the Registrar of the Company M/s FAMCO Associates (Private) Ltd., 8-F, Next to Hotel Faran, Nursery,
Block-6, PECHS, Shahrah-e-Faisal, Karachi. Tel: 009-21-34380101-5, 0092-21-34384621-3 (Ext-103) Fax:
0092-21-34380106. All the Members holding the shares through the CDC are requested to please update their
addresses and Zakat status with their participants.
2. A Member of the Company entitled to attend and vote at the meeting may appoint a proxy to attend, speak
and vote instead of him/her. Proxies in order to be effective must be received at the Company’s registered
office not less than 48 hours before the time of holding the meeting. In calculating the aforesaid period, no
account shall be taken of any day that is not a working day. A proxy need, not be a Member of the Company.
The proxy shall produce and/or verify his/her original CNIC or Passport details to prove his/her identity.
3. Form of proxy is attached in the Annual Report.

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ABBOTT PAKISTAN 2020 ANNUAL REPORT

NOTICE OF ANNUAL GENERAL MEETING

4. Shareholders are requested to notify the Company of any change in their addresses, if any immediately.
5. CDC Account Holders will further have to follow the under mentioned guidelines as laid down in Circular 1
dated January 26, 2000 issued by the Securities and Exchange Commission of Pakistan.
6. For Attending the Meeting:
(i) In case of individuals, the account holder or sub-account holder and/or the person whose securities are
in group account and their registration details are uploaded as per the Regulations, shall authenticate
his/her identity by producing and/or verifying his/her original Computerised National Identity Card
(CNIC) or original passport details for the purpose of attending the meeting.
(ii) In case of corporate entity, the Board of Directors’ resolution/ power of attorney with specimen signature
of the nominee shall be produced (unless it has been provided earlier) at the time of the Meeting.
7. For Appointing Proxies:
(i) In case of individuals, the account holder or sub-account holder and/or the person whose securities
are in group account and their registration details are uploaded as per the Regulations, shall submit the
proxy form as per the above requirement.
(ii) The proxy form shall be witnessed by two persons whose names, addresses and CNIC numbers shall be
mentioned on the form.
(iii) Attested copies of CNIC or the passport of the beneficial owners and of the Proxy shall be furnished
with the proxy form.
(iv) The Proxy shall produce and/or verify his/her original CNIC or original passport at the time of the
Meeting.
(v) In case of corporate entity, the Board of Directors’ resolution/power of attorney with specimen signature
shall be submitted (unless it has been provided earlier) and/or verified along with proxy form to the
Company.
8. Withholding Tax on Dividend under Section 150 of the Income Tax Ordinance, 2001:
(i) Pursuant to the provisions of the Finance Act 2019 effective July 1, 2019, the rates of deduction of income
tax from dividend payments under the Income Tax Ordinance have been revised as follows:
1. Rate of tax deduction for active tax payers is 15%.
2. Rate of tax deduction for non-active tax payers is 30%.
Shareholders who are filers, are advised to make sure that their names are entered into latest Active Tax
Payers List (ATL) provided on the website of FBR at the time of dividend payment, otherwise they shall
be treated as non-filers and tax on their cash dividend will be deducted at the rate of 30% instead of 15%.
(ii) As per FBR Circulars C. No.1 (29) WHT/2006 dated 30 June 2010 and C. No.1 (43) DG (WHT)/2008-
Vol. II66417-R dated 12 May 2015, the valid exemption certificate is mandatory to claim exemption
of withholding tax U/S 150 of the Income Tax Ordinance, 2001 (tax on dividend amount) where the
statutory exemption under clause 47B of Part-IV of Second Schedule is available. The shareholders who
fall in the category mentioned in above clause and want to avail exemption U/S 150 of the Ordinance,
must provide valid Tax Exemption Certificate to our Share Registrar FAMCO Associates (Private)
Limited before book closure otherwise tax will be deducted on dividend as per applicable rates.
(iii) Further, according to clarification received from Federal Board of Revenue (FBR), with-holding tax will
be determined separately on ‘Filer/Non-Filer’ status of Principal shareholder as well as Joint-Holder(s)
based on their shareholding proportions, in case of joint accounts.
In this regard all shareholders who hold shares jointly are requested to provide shareholding proportions
of Principal shareholder and Joint-Holder(s) in respect of shares held by them (only if not already
provided) to our Share Registrar, in writing as follows:
194
 ABBOTT PAKISTAN 2020 ANNUAL REPORT

Principal Shareholder Joint Shareholder

Company Folio/CDS Total Shareholding Shareholding

Name Account # Shares Name and Name and
Proportion Proportion
CNIC # CNIC #
(No. of Shares) (No. of Shares)

The required information must reach our Share Registrar within 10 days of this notice; otherwise it will
be assumed that the shares are equally held by Principal shareholder and Joint Holder(s):
(iv) For any query/problem/information, the investors may contact the Company and/or the Share Registrar,
FAMCO Associates (Pvt.) Ltd. at phone 021-34380101-5 and email address: [email protected]
(v) The corporate shareholders having CDC accounts are required to have their National Tax Number
(NTN) updated with their respective participants, whereas corporate physical shareholders should send
a copy of their NTN certificate to the Company or FAMCO Associates (Pvt.) Ltd. The shareholders while
sending NTN or NTN certificates, as the case may be, must quote company name and their respective
folio numbers.
9. Electronic Transmission of Audited Financial Statements & Notices:
The Securities and Exchange Commission of Pakistan (SECP) through its Notification S.R.O. 787(I)/2014
dated 8th September 2014 has permitted companies to circulate Audited Financial Statements along with
Notice of Annual General Meeting to its Members through e-mail. Accordingly, Members are hereby requested
to convey their consent and e-mail address for receiving Audited Financial Statements and Notice through
e-mail. In order to avail this facility a Standard Request Form is available at the Company’s website https://
www.pk.abbott. Please note that giving email address for receiving of Annual Financial Statements instead of
receiving the same by post is optional, in case you do not wish to avail this facility please ignore this notice.
Annual Financial Statements will be sent at your registered address, as per normal practice.
10. Payment of Cash Dividend Electronically
The Securities and Exchange Commission of Pakistan (SECP) had earlier initiated e-dividend mechanism
through its letter No: 8(4) SM/CDC/2008 dated April 05, 2013. The Companies Act 2017 also now provides
in section 242 that any dividend payable in cash shall only be paid through electronic mode directly into
the bank account designated by the entitled shareholders. As such, the Company will only be able to make
payment of cash dividend to its shareholder through electronic mode. Therefore, shareholders are advised
that in order for them to receive their dividends through electronic mode, the details of their bank mandate
specifying:
(i) title of account,
(ii) account number and IBAN,
(iii) bank name,
(iv) branch name, code and address be provided as soon as possible, to the Share Registrar of the Company,
M/s FAMCO Associates (Private) Limited.

195
ABBOTT PAKISTAN 2020 ANNUAL REPORT

CALENDAR OF FINANCIAL EVENTS

Tentative dates for announcement of financial results for the Financial Year 2021:

1st quarter ending March 31, 2021 3rd week of April, 2021
2nd quarter ending June 30, 2021 2nd week of August, 2021
3rd quarter ending September 30, 2021 3rd week of October, 2021
Year ending December 31, 2021 3rd week of February, 2022

Actual dates for announcement of financial results for the financial year 2020:

1st quarter ended March 31, 2020 May 28, 2020

2nd quarter ended June 30, 2020 August 17, 2020
3rd quarter ended September 30, 2020 October 27, 2020
Year ended December 31, 2020 February 26, 2021

196
 ABBOTT PAKISTAN 2020 ANNUAL REPORT

GLOSSARY

ABC - American Business Council of Pakistan IAS - International Accounting Standards

ADC - Abbott Diabetes Care IASB - International Accounting Standards Board
ADD - Abbott Diagnostics Division IgM - Immunoglobulin M
ANI - Abbott Nutrition International IgG - Immunoglobulin G
AGM - Annual General Meeting ICP – Investment Corporation of Pakistan
API - Active Pharmaceutical Ingredient ICAP - Institute of Chartered Accountants of Pakistan
ATL - Active Taxpayer List ICMAP - Institute of Cost & Management Accountants of Pakistan
BCP - Business Continuity Plan IFAC - International Federation of Accountants
CEO - Chief Executive Officer IFRS - International Financial Reporting Standards
CFO - Chief Financial Officer IIRC - International Integrated Reporting Council
CIR - Commissioner Inland Revenue IQVIA - A global market research company (formerly known as IMS)
CIR(A) - Commissioner Inland Revenue (Appeals) ITO – Income Tax Ordinance
CODM - Chief Operating Decision Maker KIBOR - Karachi Inter Bank Offer Rate
Companies Act - Companies Act, 2017 KPI - Key Performance Indicator
Company - Abbott Laboratories (Pakistan) Limited (ALPL) MAP - Management Association of Pakistan
CSR - Corporate Social Responsibility NIT - National Investment Trust
DRAP – Drug Regulatory Authority of Pakistan OEC - Office of Ethics and Compliance
DCIR - Deputy Commissioner Inland Revenue OPD - Out Patient Department
DRP - Disaster Recovery Plan OICCI - Overseas Investors’ Chamber of Commerce & Industry
DARIUS – Document and Regulatory Information Universal System PAT - Profit After Tax
Earnings Per Share (EPS) - Calculated by dividing the profit after PCR - Polymerase Chain Reaction
interest, tax by the weighted average number of PBC - Pakistan Business Council
Ordinary Shares in issue PICG - Pakistan Institute of Corporate Governance
EBIT - Earnings before Interest and Taxes QA - Quality Assurance
EBITDA - Earnings before Interest, Taxes, Depreciation Regulations - Listed Companies (Code of Corporate Governance)
and Amortisation Regulations, 2019
EHS - Environment, Health and Safety SBP - State Bank of Pakistan
EPD - Established Pharmaceuticals Division SECP - Securities and Exchange Commission of Pakistan
EPO - Established Pharmaceuticals Operations SKU - Stock Keeping Unit
FBR - Federal Board of Revenue SOP - Standard Operating Procedure
FTR - Final Tax Regime SRO - Statutory Regulatory Order
GHC - General Healthcare TMRs - Talent Management Reviews
GHG - Greenhouse Gas ZWL - Zero Waste to Landfill
GMP - Good Manufacturing Practices
GPTW - Great Place to Work
GLP – Good Laboratory Practices
HCP - Healthcare Professional
HR&R – Human Resource and Remuneration Committee

197
 ABBOTT LABORATORIES (PAKISTAN) LIMITED
P.O. Box 7229, Landhi Karachi-74400

Proxy Form

I / We
of
in the district of being a member of ABBOTT LABORATORIES (PAKISTAN) LIMITED and holder of
Ordinary Shares as per Share Register Folio No.
and/or CDC Participant I.D. No. and Sub Account No.
hereby appoint
(Name)
of
or falling him
(Name)
as my / our proxy to vote for me/us and on my/our behalf at the 72nd Annual General Meeting of the Company to be held
on Wednesday, April 21, 2021 at 10:00 a.m. and at any adjournment thereof.
As witnessed given under my/our hand(s) day of 2021

1. Witness:
Signature:

Name: Affix Revenue

stamps of Rs. 5/-
CNIC No.
Address

2. Witness: Signature of Member

Signature:

Name: Shareholder’s Folio No.

CNIC No. CDC A/c No.
Address CNIC No.

Note:

1. Proxies in order to be effective, must be received by the Company Secretary, Abbott Laboratories (Pakistan)
Limited P.O. Box 7229, Landhi, not later than 48 hours before the time for holding the meeting and must be duly
stamped, signed and witnessed.

2. Attested copies of CNIC or Passport of the Beneficial Owner of the shares of the Company in the Central Depository
System of the Central Depository Company (CDC) and the proxy, entitled to attend and vote at this meeting, shall
be furnished along with the proxy form to the Company.

3. The Beneficial Owner of share of the Company in the Central Depository System of the Central Depository
Company (CDC) of his/her proxy entitled to attend and vote at this meeting, shall produce his/her original
CNIC or passport to prove his/her identity.

4. In case of corporate entity, the Board of Directors’ resolution/power of attorney with specimen signature of the
nominees shall be submitted with the proxy form to the Company and the same shall be produced in original at
the meeting to authenticate the identity.
 AFFIX
CORRECT
POSTAGE

ABBOTT LABORATORIES (PAKISTAN) LIMITED

P.O. Box 7229, Landhi
KARACHI-74400
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 AFFIX
CORRECT
POSTAGE

ABBOTT LABORATORIES (PAKISTAN) LIMITED

P.O. Box 7229, Landhi
KARACHI-74400
CONTACT DETAILS

Registered Office Sales Offices

Plot No. 258 & 324, Peshawar

Opposite Radio Pakistan
Transmission Centre,
Hyderabad Road, Landhi, House No. 25/III/B,
P.O. Box. 7229, Karachi, Pakistan. Jamrud Lane, University Town,
Tel: (92-21) 111-ABBOTT (111-222-688) Peshawar, Pakistan.
Fax: (92-21) 35001903 Tel: (92-91) 5840024
Fax: (92-91) 5840024
City Office
Lahore
8th Floor, Faysal House
St-02, Shahrah-e-Faisal, Karachi, Pakistan. House No. 187, Aurangzeb Block,
Tel: (92-21) 32799018, 32799019 Near Garden Town,
Fax: (92-21) 32800244 Lahore, Pakistan.
Tel: (92-42) 35854141
Distribution Offices Fax: (92-42) 35844737

Multan Rawalpindi

Hassan Abad Gate # 2 House No. 168-F, Adamjee Road,

Near Pak Arab Fertilizers Near Panj Sarki Chowk,
Khanewal Road Rawalpindi Cantt, Pakistan.
Multan 60650, Pakistan. Tel: (92-51) 35130132
Tel: (92-61) 4551818, (92-61) 4556145 Fax: (92-51) 35130126
Fax: (92-61) 4551817

Lahore

16-Km Shah Pur Kanjran Multan Road

Lahore 53700, Pakistan.
Tel: (92-42) 37512188, (92-42) 37512199
Fax: (92-42) 37511171

Islamabad

Plot # 136
Street # 9, 1-10/3
Industrial Area
Islamabad 44800, Pakistan.
Tel: (92-51) 34445020, (92-51) 34447464, (92-51) 34448278
Fax: (92-51) 34449868

Website

www.pk.abbott
WWW.PK.ABBOTT