Volume/Issue/Review Month: Volume-XVII, Issue-II, Jul.-Dec.
Title: A Study on Segment Reporting Practices of selected Pharmaceutical Companies in India
Authors: Gayatri Guha Roy , Artta Bandhu Jena
Broad area: Finance
Abstract:
Segment reporting denotes to the financial reporting of a company's operating segments or business units. Segment reporting allows companies to identify and evaluate the performance of individual business segments, which helps them to make informed decisions about allocating resources, investing in new businesses or product lines, and divesting underperforming businesses. It also assists in identifying trends and changes in business operations, which can be used to identify potential risks and opportunities. Segment reporting practices in the pharmaceutical industry in India are focused at providing transparency and better understanding of a company's financial performance and operations to investors, stakeholders, creditors and the general public. In the pharmaceutical industry, companies usually operate in multiple segments such as research and development, manufacturing, marketing, and distribution. In India, pharmaceutical companies are needed to follow the Indian Accounting Standard 108 (Ind AS 108) for segment reporting. The standard requires companies to report information about their operating segments, including revenue, expenses, assets, and liabilities. The scope of this study is to furnish insight into segment reporting practices of Dr Reddys Labs, Hikal Ltd, Dishman Carbogen Amcis Ltd, Zydus Lifesciences Ltd. and Fortis Healthcare Ltd. The present study covers a period of 7 years starting with the year 2018 to 2024. The researcher collected secondary data out of the annual reports of chosen pharmaceutical companies, journals, magazines, newspapers, and websites. By divulging segment-specific information, a company can provide a better understanding of the performance of its different business segments and the factors that influence their profitability and growth potential.