PRESENTED BY

DEVESH DEEPAK PARDESHI

RASHI RUPESH PARAB
RAVINA RAVINDRA BHUVAD
TANUJA RAJU CHELLANI
 History of Bayer
It all starts with a friendship between two men, plenty of natural
curiosity and two kitchen stoves. Businessman Friedrich Bayer and
dyer Johann Friedrich Weskott use these to conduct experiments and
eventually discover how to make the dye fuchsine. On August 1, 1863,
they found the "Friedr. Bayer et. comp." company in Wuppertal-
Barmen, a 19th century startup with tremendous potential. 

Bayer AG is a German multinational pharmaceutical and life sciences

company and one of the largest pharmaceutical companies in the world.
Bayer's areas of business include pharmaceuticals; consumer healthcare
products, agricultural chemicals, seeds and biotechnology products. 
Friedrich Bayer and Johann Friedrich Weckott founded Bayer in 1863. The company
developed Aspirin in 1899. Around that time, it also became the first company to sell
heroin as a cough suppressant. Bayer began producing explosives and chemical weapons
during World War I.

Headquarters: Leverkusen, Germany
Revenue: $71.95B(2022)
Founded: 1 August 1863, Barmen, Germany
Number of employees: 99,637 (20201)
Subsidiaries: Monsanto, Bayer Corporation, Bayer Yakuhin, Ltd
Founders: Friedrich Bayer, Johann Friedrich Weskott
 History of Bayer in India

Since 1896, they have been partnering and progressing with India. Over
the years, they have made significant contributions towards advancing
agriculture, public health and sustainability in the country. With this same
passion, hope and confidence,they look forward to Bayer's future in India.

Globally, the Company is founded on August 1, 1863.The first connection

with India was made in the 1880s with the introduction of benzidine
dyestuffs through casual orders from Indian branches of German and
British export houses. It was only in 1888-89, however, that the prelude to
Bayer’s long association with India began with a tour by a member of the
Supervisory Board, Henry Theodor Boettinger, to gauge the market
potential for dyestuffs and pharmaceutical products.

1896: First wholly owned subsidiary of Bayer in Asia “Farbenfabriken

Bayer and Co. Ltd.” is set-up in Mumbai
1904: Bayer delegates own commercial and technical personnel to expand
business, introduce new products and supervise local offices, agents and
depots in India
1906-1910: Imports of pharma products commence. Volume increases
with establishment of pharma offices in Bombay, Calcutta, Delhi and
Madras
Post India’s Independence, the study of long-range
strategies for production facilities commenced to
consolidate Bayer’s future in India, taking into
consideration the Indian Government’s 5-Year Plan
objectives and projections. This period also witnessed
the set-up of Bayer’s listed entity.

India launched the "Green Revolution" in 1970—the

very year that Bayer began operating a major plant at
Thane, near Bombay. India wanted to become self-
sufficient instead of having to rely on imports of
agricultural products.
1997- 2021:
This period was marked by transformation into a Life
Science company, reorganization of the group, and
investing in the future. Globally Bayer celebrates 100
years of its world-famous trademark, the Bayer Cross
in 2004 and the 150th anniversary of its foundation
worldwide in 2013.
Our vision "Health for all, Hunger for none" with its focus
on innovation and sustainability as a leading life science company is
based on values and behaviors that enable our employees to fulfill our
purpose of "Science for a Better Life".

In line with our mission “Bayer: Science for A Better Life,”

we aim to improve people's quality of life. For this endeavor, we focus
on our core competency of developing and successfully commercializing
innovative products and solutions based on scientific knowledge.

Our four LIFE values - leadership, integrity, flexibility and

efficiency - are each represented by three attributes that define what is
expected of everyone at Bayer.
 key business product

Consumer Health Crop Science

Pharmaceuticals

Consumer Health Bayer’s leadership

Pharmaceuticals focuses on in Crop Science
brings consumers
prescription drugs for the provides tailored
some of the world’s
therapeutic areas of best-known and solutions for
cardiology, oncology, most trusted over- farmers to plant,
gynecology, hematology & the-counter (OTC) grow and protect
ophthalmology. medications, their harvests
nutritional using less land,
supplements and water and energy.
other self-care
products.
 Key Financials of the Group - Last 3 years Revenues / Net Profits

Bayer total assets from 2010 to 2021. Total

assets can be defined as the sum of all assets on
a company's balance sheet.

 Bayer total assets for the quarter ending September 30,

2021 were $137.435B, a 1.63% decline year-over-year.

 Bayer total assets for 2020 were $133.702B, a 5.45%

decline from 2019.

 Bayer total assets for 2019 were $141.409B, a 5.19%

decline from 2018.

 Bayer total assets for 2018 were $149.143B, a 75.73%

increase from 2017.

Bayer annual/quarterly revenue history and

growth rate from 2019 to 2021.
 The Bayer AG Board of Management
Werner Baumann
Chairman

Sarena Lin* Wolfgang Nickl

Transformation and Talent Finance

Board of Management

Stefan Oelrich Heiko Schipper

Pharmaceuticals Consumer Health

Rodrigo Santos
Crop Science
 Auditors / Audit Charter

SR. KEY AUDIT MATTER AUDITOR'S RESPONSE

1 REVENUE RECOGNITION – REBATES/ DISCOUNTS AND RETURNS. PRINCIPAL AUDIT PROCEDURES PERFORMED:

A DESCRIPTION OF KEY ACCOUNTING POLICIES FOR REVENUE RECOGNITION REBATES / DISCOUNTS OBTAINED AN UNDERSTANDING OF THE POLICIES APPLIED TO ESTIMATE REBATES/DISCOUNT/RETURNS AND COMPANY'S PROCESS
AND RETURNS IS DISCLOSED IN NOTE 1(D) SIGNIFICANT ACCOUNTING POLICIES OF THE FINANCIAL
STATEMENTS. FOR MAKING ESTIMATES IN THESE AREAS AND PERFORMED THE FOLLOWING PROCEDURES:

MANAGEMENT IS REQUIRED TO MAKE CERTAIN JUDGEMENTS IN RESPECT OF REVENUE RECOGNITION TESTED THE DESIGN AND OPERATING EFFECTIVENESS OF KEY CONTROLS RELATED TO REBATES/ DISCOUNTS AND RETURNS. WE
AND LEVEL OF EXPECTED REBATES/ DISCOUNTS AND RETURNS WHICH ARE DEDUCTED IN ARRIVING AT OBTAINED AN UNDERSTANDING OF KEY CONTRACTUAL ARRANGEMENTS WITH CUSTOMERS FOR REBATES/ DISCOUNTS AND
REVENUE. THESE ESTIMATES ARE MATERIAL TO THE FINANCIAL STATEMENT AND REQUIRE SIGNIFICANT RETURNS.
JUDGEMENT.

TO DETERMINE THESE ESTIMATES MANAGEMENT IS REQUIRED TO CONSIDER HISTORICAL EXPERIENCE

SPECIFIC CONTRACTUAL TERMS AND FUTURE EXPECTATION OF REVENUE. MANAGEMENT CONSIDERED THE REASONABLENESS OF MANAGEMENT'S ESTIMATES IN PREVIOUS YEARS BY COMPARING HISTORICAL ACCRUED
JUDGEMENT IS ALSO SIGNIFICANTLY IMPACTED BY VOLATILITY IN THE MARKET WEATHER CONDITIONS LIABILITIES TO THE ACTUAL SETTLEMENTS.
AND ACTION OF THIRD PARTIES.
HENCE THE ESTIMATION OF REFUND LIABILITIES IS COMPLEX SUBJECTIVE AND SUSCEPTIBLE TO ASSESSED THE ACCURACY OF THE REFUND LIABILITIES BY RECALCULATING THE AMOUNT BASED ON HISTORICAL ACTUAL RETURNS
MATERIAL MISSTATEMENT IF JUDGEMENT IS INACCURATE. ADJUSTED FOR VOLATILITY IN THE MARKET AND WEATHER CONDITION.

THE MANAGEMENT HAS DETERMINED REFUND LIABILITIES OF RS 2687 MILLION AS AT MARCH 31 2021 CONSIDERED THE ADEQUACY OF THE COMPANY'S REVENUE RECOGNITION ACCOUNTING POLICIES INCLUDING THE RECOGNITION
(REFER NOTE 22 OF THE FINANCIAL STATEMENT). AND MEASUREMENT OF DEDUCTIONS TO GROSS SALES RELATING TO REBATES/ DISCOUNTS AND RETURNS AND RELATED
DISCLOSURES.
2 LITIGATION RELATED TO DIRECT TAX MATTERS. PRINCIPAL AUDIT PROCEDURES PERFORMED:

THE COMPANY HAS SIGNIFICANT OUTSTANDING CONTINGENT LIABILITIES ARISING FROM LITIGATION
RELATED TO DIRECT TAX MATTERS AMOUNTING TO RS 1963 MILLION AS AT MARCH 31 2021 (REFER
NOTE 35 TO THE FINANCIAL STATEMENT). DURING THE YEAR THE COMPANY HAD FILED AN EVALUATED THE DESIGN AND TESTED THE OPERATING EFFECTIVENESS OF INTERNAL CONTROLS RELATED TO THE MANAGEMENT'S
APPLICATION UNDER THE DIRECT TAX VIVAD SE VISHWAS ACT 2020 (VSV ACT) AND RELATED RULES IN ASSESSMENT OF THE LIKELY OUTCOME OF INCOME TAX LITIGATION.
RESPECT OF CERTAIN PAST YEARS WITH A VIEW TO GIVE CERTAINTY AND EFFECTIVELY CLOSE LONG
PENDING DISPUTES AND LITIGATIONS UNDER THE INCOME TAX ACT 1961.

  DISCUSSED SIGNIFICANT OPEN MATTERS WITH THE COMPANY'S DIRECT TAX TEAM.

CONSEQUENT TO TAX AUTHORITY'S ORDER UNDER VSV ACT TAX EXPENSE OF RS 1272 MILLION (NET) INVOLVED OUR INTERNAL TAX EXPERTS TO UNDERSTAND AND EVALUATE THE STATUS OF LITIGATIONS FOR DIRECT TAX MATTERS AN
WAS RECOGNISED IN CURRENT YEAR WHICH RESULTED IN REDUCTION OF RELATED CONTINGENT IMPACT OF THE ORDER UNDER VSV ACT REVIEW LEGAL PRECEDENTS AND EXTERNAL EXPERT OPINIONS OBTAINED BY THE
LIABILITY OF RS 5381 MILLION. MANAGEMENT TO EVALUATE WHETHER THE DIRECT TAX POSITION IS APPROPRIATE AFTER TAKING INTO ACCOUNT RECENT
DEVELOPMENTS IF ANY.

MANAGEMENT APPLIES SIGNIFICANT JUDGMENT IN ESTIMATING THE LIKELIHOOD OF THE FUTURE

OUTCOME IN EACH CASE BASED ON ITS OWN PAST ASSESSMENTS JUDICIAL PRECEDENTS AND VERIFIED THE APPROPRIATENESS OF THE ACCOUNTING FOR AND DISCLOSURE OF THE IMPACT OF THE ORDER UNDER VSV ACT.
OPINIONS OF EXPERTS/ LEGAL COUNSELS WHEN CONSIDERING WHETHER AND HOW MUCH TO
PROVIDE OR IN DETERMINING THE REQUIRED DISCLOSURE FOR THE POTENTIAL EXPOSURE.
 Code of Conduct , Suppliers' Code, POSH Policy, Anti Bribery Anti Corruption Policy, Whistle
Blower Policy

• The Bayer’s Code of Conduct sets forth the broad principles under which Bayer conducts its business in a legal
and ethical manner. Bayer requires all employees, contractors, consultants, and agents to adhere to the Bayer
Code of Conduct. This program will help familiarize you with the content of the Bayer Code of Conduct. Whenever
deciding to engage in a given activity, you should always consult the Code of Conduct and other Corporate Policies
for guidance. All Bayer employees, contractors, consultants and agents are required to certify upon hire and
thereafter annually that they have read, understood, and will abide by the Code of Conduct. When there are
revisions to the Code of Conduct, all Bayer employees, contractors, consultants and agents are, likewise, required
to certify within 21 days, that they have received, read, understood and shall abide by the revised Code of Conduct.
The Bayer Compliance Department may communicate this certification process electronically or by paper and in
the form of a training program or by publicizing the modifications to the Code of Conduct.
• Bayer will ensure that no action is taken against an employee who makes allegation/raises a concern in good faith,
reasonably believing it to be true. It will also be ensured that there is no harassment or victimisation against the
employee who has raised a concern in good faith
• Bayer does not tolerate corruption and will refuse any business opportunity that involves any form of bribery.
balance economic growth
• Bayer conducts its business with the highest legal and ethical standards
• and will not tolerate corruption. Each employee, contractor, consultant and
• agent must perform his/her job in full compliance with the Foreign Corrupt
• Practices Act (FCPA) and must never conduct business through unlawful
• payments, bribes, kickbacks, gifts, or other questionable inducements.
 Quality Policy, Sustainability Policy
• Bayer is committed to continually improving our ecological performance in accordance with the Global Charter
Responsible Care as our product lines and related manufacturing operations evolve. continue to monitor how our
operations impact the environment and strive for continuous improvements. The health and safety of our employees,
neighbors, customers, consumers and stakeholders are paramount, as is our continued stewardship of the environment
and the quality and safe handling and use of our products.
• Bayer will continue to address our social responsibilities through their commitment to help employees, customers and
community neighbors meet their changing personal and professional needs. They also will monitor and address the impact
our business has on our plant neighbors, local communities and global society. To this end, we will continue to seek an
active, open and honest dialogue with all stakeholders in appropriate forums. The Bayer Values and Leadership Principles
are based on preserving and honoring the fundamental rights of every individual. Bayer will continue to seek to promote
and protect human rights as defined in internationally accepted humanitarian standards set forth by the United Nations.
• This Sustainable Development approach to conducting our business aligns with Bayer’s Mission Statement: “Bayer:
Science for a better life.” To assure that continue to demonstrate continual improvement in the Economic, Ecological and
Social Responsibility pillars of Sustainable Development, They have introduced customized management systems to
monitor and control progress, document the achievement of objectives, and optimize employee efforts in these areas. And
we remain committed to truthfully report on our sustainability performance to all interested parties.

Corporate Social Responsibility

In line with Bayer's corporate mission “Science For A Better Life”, we have identified four areas where we run our Corporate
Societal Engagement (CSE) initiatives in India. These include: Fostering Education, Rural Development, Women's
Empowerment and Preventive Health & Sanitation.
Inclusive growth means They are providing more people in all the regions of the world with access to health care and food
security and devising solutions to environmental protection, esp. decarbonization, climate adaptation, and biodiversity
preservation. Our products, services and innovative prowess enables us to contribute significantly toward meeting the United
Nations’ Sustainable Development Goals with regard to combating hunger (Goal 2) and providing health care (Goal 3). Our
work also helps the fight against poverty (Goal 1). In addition, Bayer sharpening their focus on empowering women (Goal
5),working on the availability and sustainable management of water for all (SDG 6), redoubling our efforts to reduce
greenhouse gases along our value chain and build resilience towards the impacts of climate change (Goal 13) and protecting
life on land (Goal 15).
Shining Examples of Company on Ethical practices 
• In March 2020, Deutsche Börse launched an index for sustainable companies in Germany.
Bayer was included in this index as one of the most heavily weighted companies.
• In 2020 Bayer was again confirmed in the FTSE4Good Index. Companies that meet strict
ecological and social criteria, such as environmental management and climate protection,
employee rights, anti-corruption, sustainability in the supply chain and sustainability reporting,
qualify for the index.
• Bayer was one of the few German companies to be included in the Bloomberg Gender Equality
Index again in 2021.
• On a scale from A (best grade) to D, Bayer was rated C + by the rating agency ISS ESG in 2021
• The Wall Street Journal included Bayer in its ranking of the 100 most sustainable companies in
the world in 2020 - Bayer ranks 88th overall. In the social capital category, Bayer even came in
5th place.
Setback Examples of Ethical lapses

Below are list of few example where Ethics Failures can be seen
  In 2003, Bayer paid 257 million dollars in fines to US Government. They were pleaded
gulty in
 drug fraud.
  In 2019, Bayer along with Johnson & Johnson paid more than 775 million dollars
in fines to settle
 more than 25 000 lawsuits in US federal and state courts which all related to outstanding
claims
 against the bestselling anticoagulant rivaroxaban.
  In 2011, US Court pleaded guilty Bayer AG and 4 more firms in regards to Human
Right
 Violation. Bayer AG neglect human live and heath by selling pesticide product which are
 produced using toxic product; which is banned for use.
Example of Innovation, New Product development etc. –

 Bayer AG is only global company who perform research in the field of both health and
agriculture.
 Pharmaceuticals Innovation/New Product –
o Finerenone
o o Factor XI(a) portfolio
o o Elinzanetant
o o P2X3 Receptor Antagonist
 Agricultural Innovation/New Product –
1. Herbicides
o Corvus / Adengo in Corn
o XtendiMax with VaporGrip Technolog

2. Fungicides
o Fox Xpro and Fox Supra in soybeans
o iblon

3. Insecticides
o Velum/Verango and Sivanto
o Vayego
 Future challenges for the Group
• Bayer’s business unit which served to Agricultural sector filed is on its lowest point since the
inception due to the covid-19 pandemic. Even though the Pharmaceuticals business is doing great,
if Bayer’s fails to do new innovation and business in Agriculture sector than it would lead to
catastrophe for Bayer.

• Other challenges for Bayer’s is to make there governance policy stringent in order to make sure that
company is complying with all the rule which is laid down by Government in order to avoid fines
and others penalties which can damage company’s goodwill in market.

• Developing innovative Medicines and enabling better Treatments-Identifying and developing new
active substances to treat diseases with a high unmet medical need can improve the quality of
peoples’ lives around the world.
• Safeguarding Nutrition-Innovative concepts from Bayer Crop Science are helping to promote
sustainable agriculture.
• Food chain partnerships are an important example.In this way Bayer supports all the partners from
seed to shelf: farmers and food processors, importers and exporters, and wholesalers and retailers.

As a new leader in agriculture, Bayer has a heightened responsibility and the unique potential to
advance farming for the benefit of society and the planet. They also committed to living up to this
responsibility and using their full potential.