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Auditors’ Report 

Auditors’ report to the Board of Directors of Glenmark Pharmaceuticals Limited on the Consolidated Financial Statements of Glenmark 

Pharmaceuticals Limited 

1. We have audited the attached consolidated balance sheet of Glenmark Pharmaceuticals Limited (the “Company”) and its subsidiaries 

and its jointly controlled entity; hereinafter referred to as the “Group” (refer Note 1 on Schedule 21 to the attached consolidated 

financial statements) as at 31st March, 2010, the related consolidated Profit and Loss Account and the consolidated Cash Flow 

Statement for the year ended on that date annexed thereto, which we have signed under reference to this report. These consolidated 

financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these 

financial statements based on our audit. 

2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan 

and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An 

audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also 

includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall 

financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 

3. We did not audit the financial statements of thirty three subsidiaries and one jointly controlled entity included in the consolidated 

financial statements, which constitute total assets of Rs. 10,603,282 (‘000) and net assets of Rs. 5,254,257 (‘000) as at 31st March, 

2010, total revenue of Rs. 16,886,790 (‘000), net profit of Rs. 2,076,632 (’000) and net cash flows amounting to Rs. 436,382 (‘000) for 

the year then ended. These financial statements and other financial information have been audited by other auditors whose reports 

have been furnished to us, and our opinion on the consolidated financial statements to the extent they have been derived from such 

financial statements is based solely on the report of such other auditors. 

4. We report that the consolidated financial statements have been prepared by the Company’s Management in accordance with the 

requirements of Accounting Standard (AS) 21 - Consolidated Financial Statements and Accounting Standard (AS) 27 - Financial 

Reporting of Interests in Joint Ventures notified under sub-section 3C of Section 211 of the Companies Act, 1956. 

5. Based on our audit and on consideration of reports of other auditors on separate financial statements and on the other financial 

information of the components of the Group as referred to above, and to the best of our information and according to the 

explanations given to us, in our opinion, the attached consolidated financial statements give a true and fair view in conformity with 

the accounting principles generally accepted in India: 

(a) in the case of the consolidated Balance Sheet, of the state of affairs of the Group as at 31st March, 2010; 

(b) 

(c) 

in the case of the consolidated Profit and Loss Account, of the profit of the Group for the year ended on that date; and 

in the case of the consolidated Cash Flow Statement, of the cash flows of the Group for the year ended on that date. 

For Price Waterhouse 

Firm Registration Number: 301112E 

Chartered Accountants 

Partha Ghosh 

Partner 

Membership Number: F-55913 

Place: Mumbai 

Date: 28th May, 2010 

ANNUAL REPORT 2009-2010 31

Consolidated Balance Sheet 

Schedules 

As at 

31st March, 2010 

Rs. in (‘000s) 

As at 


I. SOURCES OF FUNDS 

1. SHAREHOLDERS' FUNDS 

a) Capital 1 269,838 250,520 

b) Reserves and Surplus 2 23,282,495 15,731,044 

23,552,333 15,981,564 

2. MINORITY INTEREST 130,075 31,552 

3. LOAN FUNDS 

a) Secured Loans 3 2,414,139 3,826,548 

b) Unsecured Loans 4 16,279,767 17,116,917 

18,693,906 20,943,465 

4. DEFERRED TAX LIABILITY 5 1,275,009 1,054,748 

TOTAL 43,651,323 38,011,329 

II. APPLICATION OF FUNDS 

1. FIXED ASSETS 6 

a) Gross Block 21,755,428 18,385,786 

b) Less: Depreciation 3,882,342 2,723,341 

c) Net Block 17,873,086 15,662,445 

d) Capital Work-in-progress 6,007,692 5,454,080 

23,880,778 21,116,525 

2. INVESTMENTS 7 181,229 181,229 

3. DEFERRED TAX ASSET 8 564,860 485,489 

4. CURRENT ASSETS, LOANS AND ADVANCES 

a) Inventories 9 7,084,591 6,302,253 

b) Sundry Debtors 10 10,782,779 9,553,428 

c) Cash and Bank Balances 11 1,070,200 714,823 

d) Loans and Advances 12 5,273,096 4,220,877 

24,210,666 20,791,381 

LESS: CURRENT LIABILITIES AND PROVISIONS 

a) Current Liabilities 13 4,986,466 4,398,904 

b) Provisions 14 199,744 164,391 

5,186,210 4,563,295 

NET CURRENT ASSETS 19,024,456 16,228,086 

TOTAL 43,651,323 38,011,329 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 21 

Schedules referred to above and notes attached thereto form an integral part of the 

Consolidated Balance Sheet. 

This is the Consolidated Balance Sheet referred to in our report of even date. 




For and on behalf of the Board of Directors 

Partha Ghosh Glenn Saldanha Cheryl Pinto A. S. Mohanty 

Partner Managing Director & CEO Director Director 


Place: Mumbai 


Marshall Mendonza 

Vice President - Legal & Company Secretary 

32 GLENMARK PHARMACEUTICALS LIMITED

Consolidated Profit and Loss Account 

Schedules 

Year ended 


Rs. in (‘000s) 

Year ended 


INCOME 

Sales & Operating Income 15 25,006,466 21,160,332 

Other income 16 489,635 1,740,116 

25,496,101 22,900,448 

EXPENDITURE 

Cost of Sales 17 10,193,390 8,750,997 

Selling and Operating Expenses 18 7,844,662 6,976,794 

Depreciation/Amortisation 6 1,206,104 1,026,827 

Interest (net) 19 1,640,213 1,404,766 

Research and Development Expenses 20 772,758 882,703 

21,657,127 19,042,087 

Profit before Tax and Exceptional items 3,838,974 3,858,361 

Exceptional Item - 1,169,548 

PROFIT BEFORE TAX 3,838,974 2,688,813 

Provision for Taxation 

- Current Year [includes wealth tax provision Rs. 200 (2009 - Rs. 288)] 914,730 651,299 

- Mat Credit (Entitlement)/Utilisation (520,504) 395,278 

- Deferred Tax 137,071 (383,148) 

- Fringe Benefit Tax - 81,373 

- Prior Period Tax (2,639) 9,282 

NET PROFIT AFTER TAX BEFORE MINORITY INTEREST 3,310,316 1,934,729 

Share of (profit)/loss transfer to Minority (65,608) (18,092) 

NET PROFIT AFTER TAX & MINORITY INTEREST 3,244,708 1,916,637 

Balance Profit Brought Forward 11,215,453 10,276,665 

NET PROFIT AVAILABLE FOR APPROPRIATION 14,460,161 12,193,302 

Proposed Dividend on Equity Shares 107,935 100,208 

Tax on Proposed Dividend on Equity Shares 17,927 17,030 

Residual Dividend and Dividend Tax 163 - 

Transfer to Foreign Currency Monetary Item Translation Difference Account - 366,121 

Transfer to General Reserve 128,463 494,490 

BALANCE CARRIED TO BALANCE SHEET 14,205,673 11,215,453 

Earnings Per Share (Rs.) [Refer Note 5 of Schedule 21] 

Basic 12.4 7.7 

Diluted 12.4 7.5 

Face Value per Share 1.0 1.0 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 21 


Consolidated Profit and Loss Account. 

This is the Consolidated Profit and Loss Account referred to in our report of even date. 








Place: Mumbai 





Consolidated Cash lo State ent 

Year ended 


Rs. in (‘000s) 

Year ended 


A. CASH FLOW FROM OPERATING ACTIVITIES: 

Net Profit before tax 3,838,974 2,688,813 

Adjustments for: 

Depreciation 1,206,104 1,026,827 

Interest Expense 1,655,035 1,457,208 

Interest Income (14,822) (52,442) 

Income from Investment - Dividends (75) (38) 

(Profit)/Loss on Fixed Assets sold 8,413 518 

Bad Debts written off - 5,729 

Provision for Bad & Doubtful Debts 32,932 54,181 

Provision for Doubtful Advances (700) - 

Provision for Gratuity & Leave Encashment 47,838 53,414 

Unrealised foreign exchange (gain)/loss (282,149) 196,081 

Operating Profit Before Working Capital Changes 6,491,550 5,430,291 

Adjustments for changes in Working Capital: 

- (Increase) in Sundry Debtors (1,168,169) (1,580,108) 

- (Increase) in Other Receivables (571,227) (1,215,386) 

- (Increase) in Inventories (782,338) (2,294,862) 

- Increase in Trade and Other Payables 428,159 1,213,717 

Cash Generated from Operations 4,397,975 1,553,652 

- Taxes (Paid) (873,954) (1,394,571) 

Net Cash from Operating Activities 3,524,021 159,081 

B. CASH FLOW FROM INVESTING ACTIVITIES: 

Purchase of Fixed Assets (3,404,395) (7,662,729) 

Capital Work-in-Progress (553,612) (2,081,793) 

Proceeds from Sale of Fixed Assets 73,984 183,496 

Proceeds/(Payment) for Sale/Purchase of Investments - 6,942 

Interest Received 14,822 52,442 

Dividend Received 75 38 

Net Cash used in Investing Activities (3,869,126) (9,501,604) 


Consolidated Cash lo State ent 

Year ended 


Rs. in (‘000s) 

Year ended 


C. CASH FLOW FROM FINANCING ACTIVITIES: 

Proceeds from Fresh Issue of 

Share Capital (including Securities Premium) 4,142,780 350,586 

Net Assets financed by Minority Shareholders 32,915 (1,336) 

Exchange Fluctuation Reserves 16,015 (254,409) 

Proceeds/(Payment) of Long Term Borrowings 6,639,196 164,905 

Proceed from Short Term Borrowings (5,250,473) 8,059,154 

Proceeds from Working Capital Facilities movement (2,713,047) 1,614,427 

Redemption of FCCB (279,960) - 

FCCB Premium paid on redemption including TDS (105,288) - 

Interest Paid (1,663,660) (1,441,050) 

Dividend Paid (100,966) - 

Dividend Tax Paid (17,030) - 

Net Cash from Financing Activities 700,482 8,492,277 

Net Increase/(Decrease) in Cash and Cash Equivalents 355,377 (850,246) 

Cash and Cash Equivalents as at 31st March, 2009 714,823 1,565,069 

Cash and Cash Equivalents as at 31st March, 2010 1,070,200 714,823 

Cash and Cash Equivalents Comprise: 

Cash 3,839 6,123 

Deposits with Scheduled Banks 31,214 51,126 

Deposits with Non-Scheduled Banks 2,829 126 

Balance with Scheduled Banks 145,815 92,669 

Balance with Non-Scheduled Banks 886,503 564,779 

1,070,200 714,823 

Notes: 

1. The Cash Flow Statement has been prepared under the "Indirect Method" as set out in Accounting Standard - 3 on Cash Flow 

Statements issued by the Institute of Chartered Accountants of India. 

2. Cash and Cash Equivalents includes Rs. 3,122 which are not available for use by the Company. (Refer Schedule 13 to the Consolidated 

Financial Statements) 

3. Figures in bracket indicate Cash outgo. 

This is the Consolidated Cash Flow Statement referred to in our report of even date. 








Place: Mumbai 





Schedules annexed to and forming part of the Consolidated Balance Sheet 

As at 


Rs. in (‘000s) 

As at 


1. CAPITAL 

Authorised 

350,000,000 (2009 – 350,000,000) Equity Shares of Re. 1 each 350,000 350,000 

4,000,000 (2009 – 4,000,000) Cumulative Redeemable Non-Convertible 

Preference Shares of Rs. 100 each 400,000 400,000 

Issued, Subscribed and Paid-up 


TOTAL 269,838 250,520 

Notes: 

1. During the year ended 31st March, 2010 the Company, pursuant to Employee Stock Option Scheme 2003, has granted 236,500 

(2009 - 2,305,500) options at market price as defined in SEBI (ESOS) Guidelines and cancelled 601,100 (2009 - 1,697,500) options. 

2. During the year 604,860 (2009 - 500,300) options were converted into Equity Shares under the Employee Stock Option Scheme, 

2003. As at 31st March, 2010 2,633,500 options were outstanding under Employee Stock Option Scheme 2003. On exercise of the 

options so granted under Employee Stock Option Scheme 2003, the paid up Equity Share Capital of the Company will increase by a 

like number of shares. 

3. During the year, Nil (2009 - 7,500) Zero Coupon Foreign Currency Convertible Bonds (FCCB) of USD 1,000 each aggregating USD Nil 

(2009 - USD 7.5 million) were converted into Nil (2009 - 1,293,706) equity shares of Re. 1 each. As at 31st March, 2010, FCC Bonds 

amounting to USD 30 million were outstanding. 

4. On 18th September, 2009 the Company allotted 18,712,935 Equity Shares of Re. 1 each at a premium of Rs. 220/- per share to Qualified 

Institutional Buyers pursuant to chapter VIII of the Securities Exchange Board of India (Issue of Capital and Disclosure Requirement) 

Regulation 2009. 

5. Of the above 158,371,140 (2009 - 158,371,140) Equity Shares of Re. 1 each are allotted as fully paid-up Bonus Shares by Capitalisation 

of Reserves. 



As at 


Rs. in (‘000s) 

As at 


2. RESERVES AND SURPLUS 

Securities Premium Account 

Balance at the beginning of the year 3,184,454 2,896,843 

Add: Premium on Issue of Shares pursuant to Conversion of ESOP 36,659 22,636 

Add: Premium on Issue of Shares to Qualified Institutional Buyers 4,116,846 - 

Less: Issue expenses on issue of shares to QIBs 65,829 - 

Add: Premium on Issue of Shares pursuant to Conversion of FCC Bonds - 326,156 

Add: Writeback of redemption premium for FCC Bonds converted during the year - 66,115 

Less: Redemption premium of FCC Bonds outstanding at year end 149,623 127,296 

Add: Tax impact on FCCB redemption premium 35,787 - 

Closing Balance 7,158,294 3,184,454 

General Reserve 


Add: Transferred from Profit & Loss Account 128,463 494,490 

Add: Transfer to Fixed assets (Refer Note 11 of Schedule 21) - 3,915 

Less: Transfer from Foreign Currency Monetary Item Translation Difference Account 

(Refer Note 11 of Schedule 21) - 491,095 


Foreign Currency Monetary Item Translation Difference Account 

Balance at the beginning of the year (178,259) - 

Addition/(Reduction) during the year 645,275 (289,670) 

Amortisation of Foreign Currency Monetary Item Translation Difference (202,362) 111,411 

Closing Balance 264,654 (178,259) 

Capital Redemption Reserve 200,000 200,000 

Capital Reserve 1,000 1,000 

Exchange Fluctuation Reserves 

Balance at the beginning of the year (185,940) 68,469 

Addition/(Reduction) during the year 16,015 (254,409) 

Closing Balance (169,925) (185,940) 

Profit and Loss Account Balance 14,205,673 11,215,453 

TOTAL 23,282,495 15,731,044 

3. SECURED LOANS 

From Banks 

Note 

Term Loan 1 2,266,286 873,080 

Working Capital Facilities 2 147,853 2,860,900 

Other Loans 3 - 92,568 

TOTAL 2,414,139 3,826,548 

Notes: 

1. Term loan is secured by way of exclusive charge as the case may be, at certain locations, on Company's fixed assets both present and 

future. 

2. Working Capital Facilities is secured by hypothecation of Stocks of raw materials, packing materials, finished goods, work-in-process, 

receivables and equitable mortgage on fixed assets at the manufacturing facility at Nasik and Research and Development centre at 

Sinnar, Nasik. 

3. Other Loans are secured by way of Hypothecation of certain Premises, Equipment and Vehicles. 



As at 


Rs. in (‘000s) 

As at 


4. UNSECURED LOANS 

Short Term Loan from Banks 4,100,431 9,358,889 

Other Loans from Banks 10,771,319 5,876,916 

Foreign Currency Convertible Bonds (due within one year) [Refer Note 6 of Schedule 21] 1,354,200 1,835,280 

Security Deposit 53,817 45,832 

TOTAL 16,279,767 17,116,917 

5. DEFERRED TAX LIABILITY [Refer Note 2(xi) of Schedule 21] 

Depreciation 1,158,540 880,151 

Foreign Currency Long Term Loans and Others 17,809 174,597 

Others 98,660 - 

TOTAL 1,275,009 1,054,748 

6. FIXED ASSETS [Refer Note 2(ii), 2(iii), 2(iv), 2(v)(b) and 2(xii) of Schedule 21] 

GROSS BLOCK DEPRECIATION / AMORTISATION NET BLOCK 

Rs. in (‘000s) 

As on 

31st March, 

2009 

Acquisition 

during the 

year 

Additions 

during the 

year 

Consolidation 

Adjustment 

Deduction 

As on 

31st March, 

2010 

As on Acquisition 

31st March, 

2009 

For the 

year 

Consolidation 

Adjustment 

On 

Deduction 

As on 

31st March, 

2010 

As on 

31st March, 

2010 

As on 

31st March, 

2009 

Tangible assets 

Freehold Land 52,067 - 11,737 (2,391) - 61,413 - - - - - - 61,413 52,067 

Leasehold Land 203,208 - 162,692 (6,008) (54,400) 305,492 20,189 - 9,742 (2,364) (1,098) 26,469 279,023 183,019 

Factory Buildings 2,194,377 - 648,971 68,995 - 2,912,343 182,621 - 73,164 (5,611) - 250,174 2,662,169 2,011,756 

Other Buildings and 

Premises 

883,441 - 75,808 41,007 (1,872) 998,384 98,875 - 41,155 (5,604) (64) 134,362 864,022 784,566 

Plant and Machinery 2,156,556 - 147,799 127,232 (1,661) 2,429,926 143,259 - 63,925 2,655 (46) 209,793 2,220,133 2,013,297 

Furniture and 

Fixtures 

602,068 - 68,158 17,386 (262) 687,350 173,824 - 53,804 (806) (9) 226,813 460,537 428,244 

Equipments 3,002,184 - 615,669 161 (4,776) 3,613,238 681,241 - 315,893 (15,421) (3,189) 978,524 2,634,714 2,320,943 

Vehicles 110,284 - 25,688 (1,835) (14,315) 119,822 47,380 - 18,632 (1,709) (7,886) 56,417 63,405 62,904 

Intangible assets 

Goodwill 800,586 - 116,703 26,084 - 943,373 236,803 - 35,588 10,409 - 282,800 660,573 563,783 

Computer software 480,743 - 85,001 41,236 (16,558) 590,422 103,936 - 42,039 2,981 (152) 148,804 441,618 376,807 

Brands 7,900,272 - 1,677,821 (482,566) (1,862) 9,093,665 1,035,213 - 552,162 (19,189) - 1,568,186 7,525,479 6,865,059 

TOTAL 18,385,786 - 3,636,047 (170,699) (95,706) 21,755,428 2,723,341 - 1,206,104 (34,659) (12,444) 3,882,342 17,873,086 15,662,445 

Previous Year 11,241,021 - 9,327,763 521,104 (2,704,102) 18,385,786 2,055,881 - 1,026,827 81,670 (441,037) 2,723,341 

Capital Work-in-progress 6,007,692 5,454,080 

Notes: 

1. Equipment and Other Premises include assets aggregating Rs. 162,435 (2009 – Rs. 26,539) [net book value as at 31st March, 2010 – Rs. 71,844 (2009 – Rs. Nil)], and Rs. 132,422 (2009 – Rs. 81,438) [net book value as 

at 31st March, 2010 – Rs. 64,012 (2009 – Rs. 31,065)] respectively, which have been acquired on finance lease. 

2. Addition to assets include Rs. 7,499 (2009 - Rs. 5,400) being borrowing costs. 



As at 


Rs. in (‘000s) 

As at 


7. INVESTMENTS [Refer Note 2(vi) of Schedule 21] 

LONG TERM INVESTMENTS - At Cost - fully paid 

Quoted - non-trade 

Equity shares 

9,000 (2009 – 9,000) Bank of India of Rs. 10 each [Market Value Rs. 3,067 (2009 – Rs. 1,979)] 405 405 

1,209 (2009 – 1,209) IDBI Bank Limited of Rs. 10 each [Market Value Rs. 139 (2009 – Rs. 55)] 34 34 

439 439 

Investment in Government Securities 

National Savings Certificate - Sixth Issue 22 22 

National Savings Certificate - Eighth Issue 10 10 

Unquoted - non-trade 

1 (2009 – 1) Time Share of Dalmia Resorts Limited 20 20 

1 (2009 – 1) Equity Share of Esquados 340,000 of Glenmark Pharmaceutica Limitada., 

Lisbon (Portugal) 48 48 

213,032 (2009 - 213,032) Equity Shares of Bharuch Eco-Aqua Infrastructure Limited of 

Rs. 10 each, fully paid-up 2,130 2,130 

1,350,000 (2009 - 1,350,000) 7% cumulative preference shares of Rs. 100 each fully 

paid-up of Marksans Pharma Ltd. 135,000 135,000 

Investment with Napo Pharmaceuticals Inc. 

[1,176,471 (2009 - 1,176,471) Preferred shares of USD 0.85 each] 43,560 43,560 

180,790 180,790 

TOTAL 181,229 181,229 

Aggregate book value of Investments 

- Quoted [Market value Rs. 3,206 (2009 - Rs. 2,034)] 439 439 

- Unquoted 180,790 180,790 

TOTAL 181,229 181,229 

8. DEFERRED TAX ASSET [Refer Note 2(xi) of Schedule 21] 

Provision for Bad Debts and Doubtful Advances 79,968 69,784 

Unabsorbed Losses and Depreciation 421,839 307,669 

Others 63,053 108,036 

TOTAL 564,860 485,489 

9. INVENTORIES [Refer Note 2(vii) of Schedule 21] 

(As certified by the management) 

Raw Materials 1,588,410 1,187,623 

Packing Materials 344,867 259,356 

Work-in-Process 1,143,752 951,568 

Stores and Spares 49,811 45,235 

Finished Goods 3,957,751 3,858,471 

TOTAL 7,084,591 6,302,253 

10. SUNDRY DEBTORS 

Outstanding for more than six months 

Secured, considered good 98,460 - 

Unsecured, considered good 3,541,547 1,524,610 

Unsecured, considered doubtful 234,927 191,959 

3,874,934 1,716,569 

Less: Provision for doubtful debts 234,927 191,959 

3,640,007 1,524,610 

Other debts - 

Secured, considered good 41,275 2,543 


7,142,772 8,028,818 

TOTAL 10,782,779 9,553,428 



As at 


Rs. in (‘000s) 

As at 


11. CASH AND BANK BALANCES 

Cash in hand 3,839 6,123 

Balances with Scheduled Banks 

- Current Accounts 122,659 92,593 

- Margin Money Account 31,214 51,126 

- EEFC Account 23,156 76 

Balances with Non-Scheduled Banks 


- Deposit Accounts 2,829 126 

TOTAL 1,070,200 714,823 

The balances in the margin money accounts are given as security against guarantees 

issued by banks on behalf of the Company. 

12. LOANS AND ADVANCES (unsecured, considered good unless otherwise stated) 

Advances recoverable in cash or kind or for value to be received 

Considered good 2,439,132 1,767,369 

Considered doubtful 29,100 29,800 

2,468,232 1,797,169 

Less: Provision for Doubtful advances (29,100) (29,800) 

2,439,132 1,767,369 

Advance to Vendors 773,046 772,069 

Advance tax (net of provision) 491,526 531,737 

MAT Credit Entitlement 685,253 164,749 

Balance with Excise Authorities 702,579 800,335 

Deposits 181,560 184,618 

TOTAL 5,273,096 4,220,877 

13. CURRENT LIABILITIES 

Acceptances 821,134 - 

Sundry Creditors 

- Total outstanding dues to Micro enterprises and small enterprises - 26,524 

- Total outstanding dues to creditors other than Micro enterprises and small enterprises 2,971,576 3,408,255 

Investor Education and Protection Fund shall be credited by 

- Unclaimed Dividend 3,122 3,717 

[There are no amounts due and outstanding to be credited to Investor Education and 

Protection Fund] 

Advances from Customers - 46,648 

Other Liabilities 732,644 491,478 

Interest accrued but not due 457,990 422,282 

TOTAL 4,986,466 4,398,904 

14. PROVISIONS 

Proposed Dividend 107,935 100,208 

Tax payable on Proposed Dividend 17,927 17,030 

Provision for Wealth Tax 252 276 

Provision for Fringe Benefit Tax - 2,050 

Provident Fund Scheme payable 7,543 7,288 

Provision for Gratuity and Leave Encashment 66,087 37,539 

TOTAL 199,744 164,391 


Schedules annexed to and forming part of the Consolidated Profit and Loss Account 

Year ended 


Rs. in (‘000s) 

Year ended 


15. SALES AND OPERATING INCOME [Refer Note 2(ix) of Schedule 21] 

Sale of goods and IP assets 24,991,174 21,145,423 

Income from services 15,292 14,909 

TOTAL 25,006,466 21,160,332 

16. OTHER INCOME 

Lease Rent 2,184 11,431 

Dividend received on non-trade Investments 75 38 

Exchange gain - 1,352,331 

Export Incentive 237,605 297,093 

Provision for Doubtful Advances Written back 700 - 

Miscellaneous Income 249,071 79,223 

TOTAL 489,635 1,740,116 

17. COST OF SALES 

Salary, wages, bonus and allowances 495,374 485,023 

Contribution to Provident and other Funds 10,320 8,838 

Labour charges 316,135 325,489 

Consumption of raw & packing materials 5,441,962 4,917,533 

Purchase of Traded goods 2,692,326 3,774,902 

Excise Duty 201,880 295,483 

Sales Tax 680,848 462,829 

Power, fuel and water charges 293,220 231,447 

Consumption of stores and spares 174,600 153,144 

Repairs and maintenance - plant and machinery 64,040 61,395 

Repairs and maintenance - building 21,193 18,600 

Rent, rates and taxes 13,633 8,027 

Other manufacturing expenses 79,323 119,990 

(Increase)/Decrease in inventory (291,464) (2,111,703) 

TOTAL 10,193,390 8,750,997 


Schedules annexed to and forming part of the Consolidated Profit and Loss Account 

Year ended 


Rs. in (‘000s) 

Year ended 


18. SELLING AND OPERATING EXPENSES 

Salary, bonus and allowances 2,173,598 2,057,021 

Contribution to Provident and other funds 144,732 103,402 

Staff welfare expenses 75,509 69,133 

Directors' salaries, allowances and commission 105,799 144,805 

Incentive and commission 191,060 140,813 

Sales promotion expenses 1,529,366 1,370,270 

Export Commission 62,007 59,620 

Commission on sales 125,238 45,193 

Travelling expenses 654,307 690,247 

Freight outward 514,716 465,045 

Telephone expenses 90,112 59,673 

Rates and taxes 39,942 56,049 

Provision for doubtful debts 32,932 54,181 

Bad debts written off - 5,729 

Insurance premium 69,406 69,449 

Electricity charges 25,399 24,084 

Rent 284,082 270,158 

Legal and Professional Expenses 406,242 390,847 

Repairs and Maintenance - others 128,143 123,618 

Auditors' remuneration and expenses 

- Audit fees* 25,455 20,191 

- Certification and other matters 485 1,500 

- Reimbursement of out-of-pocket expenses 37 124 

Loss on sale of fixed assets 8,413 518 

Amortisation of Pre-operative/Preliminary expenses - 7,422 

Exchange Loss 290,201 - 

Other operating expenses 867,481 747,702 

TOTAL 7,844,662 6,976,794 

* Audit fees include fees paid to statutory auditors of subsidiary companies. 

19. INTEREST (Net) 

On term loans from bank 969,981 810,305 

On other loans from bank 685,054 646,903 

1,655,035 1,457,208 

Less: Interest Income 

On deposits with banks 14,822 52,442 

14,822 52,442 

TOTAL 1,640,213 1,404,766 

20. RESEARCH AND DEVELOPMENT EXPENSES [Refer Note 2(x) of Schedule 21] 

Salary, bonus and allowances 409,688 237,275 


Staff welfare expenses 856 168 

Directors' Remuneration 225 211 


Consumable and Chemicals 62,989 106,084 


Repairs and maintenance - building 182 131 

Repairs and maintenance - others 24,505 5,631 


Other expenses 251,885 502,740 

TOTAL 772,758 882,703 


Schedules annexed to and forming part of the Consolidated Financial Statements 

SCHEDULE 21 - NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 

1. BACKGROUND 

The consolidated financial statements relate to Glenmark Pharmaceuticals Limited ( the “Company”) and its following subsidiaries 

and Joint Venture company (the “Group”). 

Name of the Subsidiary/Joint Venture 

Country of 

Incorporation 

Ownership and Percentage 

either directly or through 

subsidiaries as at 31st March 

2010 2009 

Glenmark Pharmaceuticals Europe Ltd.* United Kingdom 100% 100% 

Glenmark Generics (Europe) Ltd.** (formerly Glenmark Pharmaceuticals (Europe) Ltd.) United Kingdom 100% 100% 

Glenmark Pharmaceuticals S.R.O. (Formerly known as Medicamenta A.S., Czech Republic 100% 100% 

Czech Republic)* 

Glenmark Pharmaceuticals SK, S.R.O. * (Formerly known as Medicamenta SK SRO) Slovak Republic 100% 100% 

Glenmark Pharmaceuticals S.A.* Switzerland 100% 100% 

Glenmark Holding S.A. Switzerland 100% 100% 

Glenmark Generics Holding S.A.** Switzerland 100% 100% 

Glenmark Generics Finance S.A.** Switzerland 100% 100% 

Glenmark Pharmaceuticals S.R.L.* Romania 100% 100% 

Glenmark Pharmaceuticals Eood * Bulgaria 100% 100% 

Glenmark Distributor SP z.o.o.* Poland 100% 100% 

Glenmark Pharmaceuticals SP z.o.o.* Poland 100% 100% 

Glenmark Generics Inc. **(formerly Glenmark Pharmaceuticals Inc.) USA 100% 100% 

Glenmark Therapeutics Inc.* USA 100% 100% 

Glenmark Farmaceutica Ltda* Brazil 100% 100% 

Glenmark Generics S.A. ** (formerly Servycal S.A.) Argentina 100% 100% 

Glenmark Pharmaceuticals Mexico, S.A. DE C.V. * Mexico 100% 100% 

Glenmark Pharmaceuticals Peru SAC * Peru 100% 100% 

Glenmark Pharmaceuticals Colombia Ltda.* Colombia 100% 100% 

Glenmark Uruguay S.A. (formerly known as Badatur S.A., Uruguay)* Uruguay 100% 100% 

Glenmark Pharmaceuticals Venezuela, C.A.* Venezuela 100% 100% 

Glenmark Dominicana SRL, Dominican Republic (formerly known as 

Dominican Republic 100% 100% 

Glenmark Dominicana S.A.) 

Glenmark Pharmaceuticals Egypt S.A.E. Egypt 100% 100% 

Glenmark Pharmaceuticals FZE U.A.E. 100% 100% 

Glenmark Impex L.L.C Russia 100% 100% 

Glenmark Philippines Inc. Philippines 100% 100% 

Glenmark Pharmaceuticals (Nigeria) Ltd. Nigeria 100% 100% 

Glenmark Pharmaceuticals Malaysia Sdn Bhd Malaysia 100% 100% 

Glenmark Pharmaceuticals (Australia) Pty Ltd. Australia 100% 100% 

Glenmark South Africa (pty) Ltd.* (formerly known as Glenmark Pharmaceuticals South Africa 100% 100% 

Pty Ltd.) 

Glenmark Pharmaceuticals South Africa (Pty) Ltd.*(formerly known as Bouwer South Africa 100% 100% 

Bartlett Pty Ltd.) 

Glenmark Pharmaceuticals (Thailand) Co. Ltd. Thailand 49% 49% 

Glenmark Exports Ltd. India 100% 100% 

Glenmark Generics Ltd. India 96.93% 98% 

* held through Glenmark Holding S.A., Switzerland 

** held through Glenmark Generics Ltd. 

2. SIGNIFICANT ACCOUNTING POLICIES 

i) Basis of preparation of Consolidated Financial Statements 

The consolidated financial statements have been prepared and presented under the historical cost convention on the 

accrual basis of accounting in accordance with the accounting principles generally accepted in India and comply with 

the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India to the extent applicable. 

The Consolidated Financial statements have been prepared using uniform accounting policies for like transactions and other 

events in similar circumstances and are presented to the extent possible in the same manner as the Company’s separate 

financial statements. However, it was not practicable to use uniform accounting policies for depreciation in the case of 

following subsidiaries: 



ii) 

Rs. in (‘000s) 

Gross Block as on 


Percentage of 

Total Assets 

Glenmark Pharmaceuticals S.A. 457,872 2.10% 

Premises 20% 

Vehicles 40% 

Laboratory Instruments and Equipments 40% 

Glenmark Pharmaceuticals South Africa (Pty) Ltd. 598 0.00% 

Computer Software 50% 

Glenmark Philippines Inc. 18,107 0.08% 

Vehicles 33% 

Equipments 33% 

Furniture and fixtures 20% 

Glenmark Pharmaceuticals (Australia) Pty Ltd. 136 0.00% 

Equipments 25% to 40% 

Glenmark Generics Inc. 57,610 0.26% 

Leasehold Improvement 12.5% 

Furniture and fixtures 14% 

Glenmark Generics (Europe) Ltd. 13,701 0.06% 

Equipments 25% 

The Consolidated Financial Statements have been prepared on the following basis : 

(a) In respect of Subsidiary Companies, the financial statements have been consolidated on a line-by-line basis by adding 

together the book values of like item of assets, liabilities, incomes and expenses, after fully eliminating intra-group 

balances and unrealised profits/losses on intra-group transactions as per Accounting Standard - AS 21 “Consolidated 

Financial Statements”. In case of Joint Venture Companies, the financial statements have been consolidated as per 

Accounting Standard (AS – 27) “Financial Reporting of Interests in Joint Ventures”. 

(b) The excess of cost to the Company of its investment in the Subsidiary Company over the Company’s share of net assets 

of the subsidiary company is recognised in the financial statements as Goodwill, which is tested for impairment, if any, 

at each balance sheet date. The excess of Company’s share of net assets of the subsidiary company over the cost of 

acquisition is treated as Capital Reserve. 

(c) The results of operations of a subsidiary are included in the Consolidated Financial Statements from the date on which 

the parent-subsidiary relationship comes into existence. 

(d) The translations of financial statements into Indian Rupees relating to non-integral foreign operations have been carried 

out using the following procedures : 

- assets and liabilities have been translated at closing exchange rates at the year end; and 

- income and expenses have been translated at an average of monthly exchange rates. 

The resultant translation exchange gain/(loss) has been disclosed as Exchange Fluctuation Reserve under Reserves and 

Surplus. 

(e) The Notes and Significant Accounting Policies to the Consolidated Financial Statements are intended to serve as a guide 

for better understanding of the Group’s position. In this respect, the Group has disclosed such notes and policies, which 

represent the requisite disclosure. 

Fixed Assets (including Intangibles), Depreciation and Amortisation 

Fixed assets are stated at cost less accumulated depreciation and amortisation. The Group capitalises all costs relating to the 

acquisition and installation of fixed assets. Expenditure of revenue nature, incurred in setting up of new projects, is capitalised 

as an indirect cost towards construction of the fixed assets. 

Depreciation is provided using the straight line method, pro-rata to the period of use of assets, based on the useful lives of fixed 

assets as estimated by management, or at the rates specified in Schedule XIV of the Companies Act, 1956, whichever is higher. 

Brands/IP Rights are amortised from the month of products launch/commercial production, over the estimated economic life 

not exceeding 10 years. 

Fixed assets having aggregate cost of Rs. 5,000 or less are depreciated fully in the year of acquisition. 



The Group has estimated the useful life of its assets as follows: 

Category 

Estimated useful life (in years) 

Plant and machinery 8 - 20 

Vehicles 5 - 6 

Equipments and Air Conditioners 4 - 20 

Furniture and Fixtures 10 

Computer Software 5 

Brands 5 - 10 

Leasehold land and improvement is amortised over the period of lease. 

iii) Borrowing Costs 

Borrowing costs that are attributable to the acquisition and construction of a qualifying asset are capitalised as a part of the 

cost of the asset. Other borrowing costs are recognised as an expense in the year in which they are incurred. 

iv) Impairment of Assets 

The Group assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such 

indication exist, the Group estimates the recoverable amount of the asset. If such recoverable amount of the asset or the 

recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying 

amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the Profit and 

Loss Account. If at the Balance Sheet date there is an indication that if a previously assessed impairment loss no longer exist, 

the recoverable amount is reassessed and the asset is reflected at the recoverable amount. 

v) Foreign Currency Transactions 

(a) Foreign currency transactions are recorded at the exchange rates prevailing on the date of such transactions. Monetary 

assets and liabilities as at the Balance Sheet date are translated at the rates of exchange prevailing at the date of the 

Balance Sheet. Gain/loss arising on account of differences in foreign exchange rates on settlement/translation of 

monetary assets and liabilities are recognised in the Profit and Loss Account. Non-monetary foreign currency items are 

carried at cost. 

(b) Gain/loss on account of foreign exchange fluctuation in respect of liabilities in foreign currencies specific to acquisition 

of fixed assets are recognised in the Profit and Loss Account. 

vi) Investments 

Long-term investments are stated at cost. Provision, where necessary, is made to recognize a decline, other than temporary, in 

the value of the investments. 

vii) Inventories 

Inventories of finished goods, consumable store and spares are valued at cost or net realisable value, whichever is lower. Cost 

of raw materials and packing materials is ascertained on a first-in-first-out basis. Cost of work-in-process and finished goods 

include the cost of materials consumed, labour and manufacturing overheads. Excise and customs duty accrued on production 

or import of goods, as applicable, is included in the valuation of inventories. Net realisable value is the estimate of the selling 

price in the ordinary course of the business. 

viii) Employee Benefits 

ix) 

Long-term Employee Benefits 

In case of Defined Contribution plans, the Company’s contributions to these plans are charged to the Profit and Loss Account 

as incurred. Liability for Defined Benefit plans is provided on the basis of valuations, as at the Balance Sheet date, carried 

out by an independent actuary. The actuarial valuation method used for measuring the liability is the Projected Unit Credit 

method. The estimate of future salary increases considered takes into account the inflation, seniority, promotion and other 

relevant factors. The expected rate of return of plan assets is the Company’s expectation of the average long-term rate of return 

expected on investments of the fund during the estimated term of the obligations. Plan assets are measured at fair value as at 

the Balance Sheet date. 

Revenue Recognition 

The Group recognises revenue on despatch of goods to customers. Revenues from services are recognized on completion of 

such services. Revenue from IP asset/Marketing rights is recognized on transfer of ownership/right to use in accordance with 

the terms of relevant agreements. Revenue from contract research being in the nature of product development activities is 

recognized as per the terms of the agreement. Revenues are recorded at invoice value, inclusive of excise duty and sales-tax, 

but net of returns and trade discounts. 



x) Research and Development 

Capital expenditure on Research and Development (R & D) is capitalised as fixed assets. Development cost relating to the new 

and improved product and/or process development is recognised as an intangible asset to the extent that it is expected that 

such asset will generate future economic benefits. Other research and development costs are expensed as incurred. 

xi) 

Taxation 

Current Tax 

Current tax is determined as the amount of tax payable in respect of taxable income for the year. 

Deferred Tax 

Deferred tax is recognised, subject to the consideration of prudence, on timing differences being the difference between 

taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent 

period. Deferred tax assets are not recognised on unabsorbed depreciation and carry forward of losses unless there is virtual 

certainty that sufficient future taxable income will be available against which such deferred assets can be realised. 

Deferred tax assets/liabilities recognised as above is after excluding the amounts, which are getting reversed during the tax 

holiday period. 

xii) 

Leases 

Finance Leases 

Assets acquired under finance lease are recognised as assets with corresponding liabilities in the Balance Sheet at the inception 

of the lease at amounts equal to lower of the fair value of the leased asset or at the present value of the minimum lease 

payments. These leased assets are depreciated in line with the Group’s policy on depreciation of fixed assets. The interest is 

allocated to periods during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the 

liability for each period. 

Operating Leases 

Lease rent in respect of assets taken on operating lease are charged to the Profit and Loss Account as per the terms of lease 

agreements. 

xiii) 

Employee Stock Option Schemes (ESOS) 

The Company accounts for compensation expense under the Employee Stock Option Schemes using the intrinsic value 

method as permitted by the Guidance Note on “Accounting for Employee Share-based Payments” issued by the Institute of 

Chartered Accountants of India. The difference between the market price and the exercise price as at the date of the grant is 

treated as compensation expense and charged over the vesting period. 

xiv) 

Provisions and Contingent Liabilities 

The Group recognises a provision when there is a present obligation as a result of a past event that probably requires an 

outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability 

is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of 

resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no 

provision or disclosure is made. 

3. CONTINGENT LIABILITIES NOT PROVIDED FOR 

Rs. in (‘000s) 

2010 2009 

(a) Bank guarantees 74,147 71,532 

Disputed Income Tax/Excise Duty/Sales Tax 33,249 33,769 

Claims against the Company not acknowledged as debts (Refer Note i) 386 380 

Open letters of credit (Refer Note ii) 141,615 92,726 

Sundry debtors factored with recourse option (Refer Note iii) 3,911,451 2,800,000 

Guarantees for Rent 7,691 7,689 

Indemnity Bond 345,366 331,876 

Corporate Guarantee (USD 27 million) 1,218,780 1,376,460 

Note: 

i) In respect of labour/industrial disputes. 

ii) The total amount related to LC outstanding as on 31st March, 2010. 

iii) The amount related to Credit facilities given by Bank against debtors. 

(b) Estimated amount of contracts remaining to be executed on capital account, net of advances, not provided for as at 

31st March, 2010 aggregate Rs. 430,447 (2009 - Rs. 271,734). 



4. During the year, the Company subscribed to 71,510,000 equity shares for a consideration of Rs. 7,151,000 (‘000) in its subsidiary 

Glenmark Generics Limited for the balance Business sale consideration. 

5. EARNINGS PER SHARE 

Basic earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders by the weighted 

average number of equity shares outstanding during the year. 

For the purpose of calculating diluted earnings per share, the weighted average number of shares outstanding are adjusted for the 

effects of all dilutive potential equity shares from the exercise of options on unissued share capital and on conversion of FCC Bonds. 

The calculations of earnings per share (basic and diluted) are based on the earnings and number of shares as computed below. 

Rs. in (‘000s) 

31st March, 2010 31st March, 2009 

Profit after tax and Minority Interest (attributable to equity shareholders) 3,244,708 1,916,637 

In (‘000s) 

Reconciliation of number of shares No. of Shares No. of Shares 

Weighted average number of shares: 

For basic earnings per share 260,759 250,025 

Add: 

Deemed exercise of options on unissued equity share capital and 

565 5,237 

Conversion of FCC Bonds 

For diluted earnings per share 261,324 255,262 

Earnings per share (nominal value Re. 1 each) Rs. Rs. 

Basic 12.4 7.7 

Diluted 12.4 7.5 

6. FOREIGN CURRENCY CONVERTIBLE BOND ISSUED 

A) The Company had issued 30,000 Zero Coupon Foreign Currency Convertible Bonds of USD 1,000 each (Rs. 1,331,700 at issue) 

(i) 

(ii) 

(iii) 

Convertible at the option of the bondholder at any time on or after 11th November, 2007 but prior to the close of 

business on 29th November, 2010 at a fixed exchange rate of Rs. 44.94 per 1 USD and the conversion price of Rs. 582.60 

per share of Re. 1 each. 

Redeemable in whole but not in part at the option of the Company on or after 10th January, 2010 if closing price of the 

share for each of the 25 consecutive trading days immediately prior to the date upon which notice of such redemption 

is given was atleast 130% of the applicable Early Redemption Amount divided by the Conversion Ratio. 

Redeemable on maturity date on 11th January, 2011 at 139.729% of its principal amount if not redeemed or converted 

earlier. The redemption premium of 39.729% payable on maturity of the bond if there is no conversion of the bond 

to be debited to Securities Premium Account evenly over the period of 5 years from the date of issue of bonds. As of 

31st March, 2010, 30,000 FCC bonds (2009 - 30,000) of USD 1,000 each aggregating to USD 30 million are outstanding. 

B) The Company had issued 20,000 Zero Coupon Foreign Currency Convertible Bonds of USD 1,000 each (Rs. 873,200 at issue) 

(i) 

(ii) 

(iii) 

Convertible at the option of the bondholder at any time on or after 28th March, 2005 but prior to the close of business on 

2nd January, 2010 at a fixed exchange rate of Rs. 43.66 per 1 USD and price of Rs. 215.60 (Post adjustment for bonus and 

split) per share of Re. 1 each. 

Redeemable in whole but not in part at the option of the Company on or after 15th February, 2008 if closing price 

of the Share for each of the 25 consecutive trading days immediately prior to the date upon which notice of such 

redemption is given was atleast 130% of the applicable Early Redemption Amount divided by the Conversion Ratio. 

Redeemable on maturity date on 16th February, 2010 at 133.74% of its principal amount if not redeemed or converted 

earlier. The redemption premium of 33.74% payable on maturity of the Bond if there is no conversion of the Bond to 

be debited to Securities Premium Account evenly over the period of 5 years from the date of issue of Bonds. During 

the year, 1,000 FCC Bonds of USD 1,000 each aggregating to USD 1 Million were redeemed on 16th February, 2010 on 

maturity. As of 31st March, 2010, NIL FCC Bonds (2009 - 1,000) of USD 1,000 each are outstanding. 

C) The Company had issued 50,000 Zero Coupon Foreign Currency Convertible Bonds of USD 1,000 each (Rs. 2,183,000 at issue) 

(i) 

(ii) 

Convertible at the option of the bondholder at any time on or after 15th November, 2006 but prior to the close of business 

on 2nd January, 2010 at a fixed exchange rate of Rs. 43.66 per 1 USD and the price of Rs. 253.11 (post adjustment for split) 


Redeemable in whole but not in part at the option of the Company on or after 15th February, 2009 if closing price of the 

share for each of the 25 consecutive trading days immediately prior to the date upon which notice of such redemption is 

given was atleast 130% of the applicable Early Redemption Amount divided by the Conversion Ratio. 



(iii) 


earlier. The Redemption Premium of 34.07% payable on maturity of the Bond if there is no conversion of the Bond to 

be debited to Securities Premium Account evenly over the period of 5 years from the date of issue of Bonds. During 

the year, 5,000 FCC Bonds of USD 1,000 each aggregating to USD 5 Million were redeemed on 16th February, 2010 on 

maturity. As of 31st March, 2010, NIL FCC Bonds (2009-5000) of USD 1,000 each are outstanding. 

7. SEGMENT INFORMATION 

Business segments 

The Group is primarily engaged in a single segment business of manufacturing and marketing of pharmaceutical formulations and 

active pharmaceutical ingredients and is governed by a similar set of risks and returns. 

Geographical segments 

In the view of the management, the Indian and export markets represent geographical segments. 

Sales by market – The following is the distribution of the Company’s sale by geographical market: 

Rs. in (‘000s) 

2009-2010 2008-2009 

Geographical segment 

India 8,767,083 7,155,326 

Other than India* 16,239,383 14,005,006 

TOTAL 25,006,466 21,160,332 

Assets and additions to fixed assets by geographical area – The following table shows the carrying amount of segment assets and 

additions to fixed assets by geographical area in which the assets are located: 

Rs. in (‘000s) 

India 

2009-2010 

Others* 

2009-2010 

India 

2008-2009 

Others* 

2008-2009 

Carrying amount of segment assets 17,886,600 30,386,073 16,077,552 26,011,583 

Additions to fixed assets 1,459,979 2,176,068 1,620,088 7,707,675 

* Others represent receivables from debtors located outside India including those related to deemed exports and cash and bank 

balances of branches outside India. 

8. RELATED PARTY DISCLOSURES 

In accordance with the requirements of Accounting Standard - 18 “Related Party Disclosures”, the names of the related parties where 

control exists and/or with whom transactions have taken place during the year and description of relationships, as identified and 

certified by the Management are as follows: 

a) Key Management Personnel 

Mr. Gracias Saldanha 

Mrs. B. E. Saldanha 

Mr. Glenn Saldanha 

Mrs. Cheryl Pinto 

Mr. R. V. Desai 

Mr. A. S. Mohanty 

b) Transactions with related parties during the year 

Rs. in (‘000s) 

2009-2010 2008-2009 

Managerial Remuneration 

Name of Directors 

1. Mr. Gracias Saldanha 120 25,882 

2. Mrs. B. E. Saldanha 60 40 

3. Mr. Glenn Saldanha 18,282 34,093 

4. Mrs. Cheryl Pinto 9,409 15,011 

5. Mr. R. V. Desai - 9,190 

6. Mr. A. S. Mohanty 8,202 11,213 



9. LEASES 

a) The Group has entered into operating and finance lease agreements for the rental of property, vehicles, computers, equipments 

and other assets. Typically, lease agreements are for a period of three to fifteen years. 

As at 31st March, 2010, the Group had commitments under non-cancellable finance leases as follows: 

Rs. in (‘000s) 


Minimum lease payments 

Due within one year 53,104 10,355 

Due later than one year and not later than five years 34,897 27,345 

Due later than five years 36,330 33,141 

Total 124,331 70,841 

Present value of minimum lease payments 



Due later than five years 23,039 20,233 

Total 103,261 53,254 

b) Glenmark Generics Inc., USA (GGI) conducts its operations from facilities that are leased under a 97-month non-cancellable 

operating lease expiring in September 2013. Additional office space were subleased under a 52-month non-cancellable 

operating lease which expired in September 2008. 

Glenmark Pharmaceuticals South Africa (PTY) Limited has entered into operation lease agreement for the rental of its office 

premises. The lease agreement is for a period of 5 years. 

Glenmark Philippines Inc. has entered into operating lease agreements for the rental of its warehouse and office premises. The 

lease agreement is for a period of 4 years. 

Glenmark Pharmaceuticals SP z.o.o. has entered into operating lease agreements for the rental of its office premises for a period 

of 3 to 5 years. 

Rs. in (‘000s) 


Minimum lease payments 



Due later than five years - 21,674 

Total 136,945 258,173 

c) The Group has taken on lease/leave and licence godowns/residential & office premises at various locations. 

i) The Group’s significant leasing arrangements are in respect of the above godowns & premises (Including furniture and 

fittings therein, as applicable). The aggregate lease rentals payable are charged to Profit and Loss Account as Rent. 

ii) 

The Leasing arrangements which are cancellable range between 11 months and 5 years. They are usually renewable by 

mutual consent on mutually agreeable terms. Under these arrangements, generally refundable interest free deposits 

have been given. An amount of Rs. 83,911 (2009 - Rs. 78,559) towards deposit and unadjusted advance rent is recoverable 

from the lessor. 

10. EMPLOYEE BENEFITS 

The disclosures as required as per the revised AS 15 are as under: 

1. Brief description of the Plans 

The Group has various schemes for long-term benefits such as Provident Fund, Superannuation, Gratuity, Pension Fund, Social 

Securities and Leave Encashment. In case of funded schemes, the funds are recognised by the Income tax authorities and 

administered through appropriate authorities. The Group's defined contribution plans are Superannuation and Employees' 

Provident Fund and Pension Scheme since the Company has no further obligation beyond making the contributions. The 

Group's defined benefit plans include Gratuity and Leave Encashment. 



2. Charge to the Profit and Loss Account based on contributions: 

Rs. in (‘000s) 

2009-10 2008-09 

Superannuation 2,331 2,326 

Provident Fund, Pension Fund and Social Securities 165,351 129,087 

167,682 131,413 

3. Disclosures for defined benefit plans based on actuarial reports as on 31st March, 2010: 

Rs. in ('000s) 

(i) 

(ii) 

(iii) 

(iv) 

(v) 

(vi) 

(vii) 

Gratuity 

(Funded plan) 

2009-2010 2008-2009 

Leave 

Encashment 

(Funded plan) 

Gratuity 

(Funded plan) 

Leave 

Encashment 

(Funded plan) 

Change in Defined Benefit Obligation 

Opening defined benefit obligation 121,429 68,839 103,127 48,330 

Current service cost 20,086 16,881 15,036 15,079 

Interest cost 9,112 4,873 7,710 3,169 

Actuarial loss/(gain) 2,549 12,075 5,095 13,209 

Benefits paid (8,720) (15,062) (9,539) (10,948) 

Closing defined benefit obligation 144,456 87,606 121,429 68,839 

Change in Fair Value of Assets 

Opening fair value of plan assets 117,459 35,271 76,559 29,790 

Expected return on plan assets 10,815 2,506 8,152 2,422 

Actuarial gain/(loss) 3,628 789 (4,781) 91 

Contributions by employer 10,117 20,019 47,067 13,917 

Benefits paid (8,720) (15,062) (9,539) (10,949) 

Closing fair value of plan assets 133,299 43,523 117,458 35,271 

Reconcilation of Present Value of Defined Benefit 

Obligation and the Fair Value of Assets 

Present Value of Funded Obligation as at end of the 

year 

144,456 87,607 121,429 68,839 

Fair Value of Plan Assets as at end of the year (133,299) (43,523) (117,458) (35,271) 

Funded Liability/(Asset) recognised in the Balance Sheet 11,157 44,084 3,971 33,568 

Present Value of Unfunded Obligation as at end of the 

- - - - 

year 

Unrecognised Actuarial Gain/(Loss) - - - - 

Unfunded Liability/(Asset) recognised in the Balance Sheet - - - - 

Amount recognised in the Balance Sheet 

Present value of obligations as at year end 144,456 87,607 121,429 68,839 

Fair value of plan assets as at year end (133,299) (43,523) (117,458) (35,271) 

Amount not recognised as an asset - - - - 

Net (asset)/liability recognised as on 31st March, 2010 11,157 44,084 3,971 33,568 

Expenses recognised in the Profit and Loss Account 


Interest on defined benefit obligation 9,112 4,873 7,710 3,169 

Expected return on plan assets (10,815) (2,506) (8,152) (2,422) 

Net actuarial loss/(gain) recognised in the current year (1,079) 11,286 9,876 13,118 

Total expense 17,304 30,534 24,470 28,944 

Actual Return on Plan Assets 


Actuarial gain/(loss) on Plan Assets 3,628 789 (4,781) 91 

Actual Return on Plan Assets 14,443 3,295 3,371 2,513 

Asset information 

Administered by Birla Sunlife Insurance Co. Ltd. 

and LIC of India 

100% 100% 100% 100% 



Gratuity 

(Funded plan) 

2009-2010 2008-2009 

Leave 

Encashment 

(Funded plan) 

Gratuity 

(Funded plan) 

Leave 

Encashment 

(Funded plan) 

(viii) Principal actuarial assumptions used 

Discount rate (p.a.) 8% 8% 7.5%-8% 7.5%-8% 

Expected rate of return on plan assets (p.a.) 8%-9% 8%-9% 8%-9% 8%-9.25% 

(ix) Experience Analysis 

Actuarial gain/(loss) on change in assumptions 6,297 (1,922) - - 

Experience (Gain)/Loss on Liabilities (3,748) 13,997 - - 

Actuarial gain/(loss) on Obligation 2,549 12,075 - - 

(x) 

Expected employer’s contribution for the next year is Rs. 29,351 ('000) for Gratuity and Leave Encashment. 

Rs. in ('000s) 

11. “As per the transitional provision given in the notification issued by Ministry of Corporate Affairs dated 31st March, 2009 the Group 

has opted for the option of adjusting the exchange difference on long term foreign currency monetary items: 

i) To the cost of the assets acquired out of this foreign currency monetary item. During the year, the Group has decapitalised 

exchange difference amounting to Rs. 105.46 lakhs on restatement of long-term loans used for acquiring the fixed assets. 

ii) 

To the Foreign Currency Monetary Item Translation Difference account. During the year, the Group has transferred exchange 

gain of Rs. 6,452.75 lakhs on restatement of long-term loans. Accordingly, proportionate amount of Rs. 2,023.62 lakhs is 

amortised and Depreciation charged of Rs. 17.04 lakhs for the year ended 31st March, 2010. Due to the above profit for the year 

is lower by Rs. 4,551.64 lakhs.” 

12. Extracts of Assets and Liabilities as on 31st March, 2010 and Income and Expenses for the year ended 31st March, 2010 related to the 

interest of the Company [without elimination of the effect of transactions between the Company and Glenmark Pharmaceuticals 

(Thailand) Co. Ltd., Thailand] have been extracted from the audited accounts. 

Rs. in (‘000s) 

Particulars 2009-2010 2008-2009 

Assets 

Net Fixed Assets including CWIP 5 - 

Deferred Tax Asset 236 52 

Cash Bank Balances 1,029 1,114 

Loans and Advances 57 59 

Liabilities 

Current Liabilities 144 66 

Income 

Net Sales - - 

Expenses 

Selling and Operating expenses 1,269 325 

Depreciation 1 - 

Provision for Taxation including Deferred Tax (191) (49) 

13. PRIOR YEAR COMPARATIVES 

Prior year’s figures have been regrouped or reclassified wherever necessary to confirm to current year’s classification. 

Signatures to the Schedules 1 to 21 which form an integral part of the Financial Statements. 








Place: Mumbai 





Profiles of Directors 

Mr. Gracias Saldanha (Chairman) 

Mr. Gracias Saldanha, 72, is the founder of the Company. He 

has over 38 years experience in the industry. His educational 

qualifications include a M.Sc. from Bombay University with a 

Diploma in Management Studies from Jamnalal Bajaj Institute 

of Management Studies, Mumbai. He has worked with leading 

pharmaceutical companies like Abbott Laboratories and E. Merck. 

Mr. Glenn Saldanha (Managing Director & CEO) 

Mr. Glenn Saldanha, 40, is a B.Pharm from Bombay University 

and was awarded the Watumall Foundation Award for overall 

excellence. His other educational qualifications include an MBA 

from New York University’s Leonard N. Stern School of Business 

(US). He has worked for Eli Lilly in the US and was a Management 

Consultant with Price Waterhouse Coopers. His services have been 

used by Smithkline Beecham, Rhorer, Astra, Merck and Johnson 

and Johnson, among others. 

Mr. A. S. Mohanty (Director – Corporate Communications & CSR) 

Mr. A. S. Mohanty, 56, is M.Sc., and looks after Corporate 

Communications & CSR activities. He has over 32 years experience 

in pharmaceutical sales and marketing as well as healthcare 

sectors. 

Mr. N. B. Desai (Non-Executive Director) 

Mr. N. B. Desai, 83, is a retired General Manager of Bank of Baroda. 

He has over 46 years experience in the Banking Sector. He has 

worked in India and overseas. He was Chairman of Bank of Baroda 

Uganda Ltd. He was the founder and Managing Director of 

Equitorial Bank PLC, UK from which he retired in 1992. 

Mr. Sridhar Gorthi (Non-Executive Director) 

Mr. Sridhar Gorthi, 38 is a B.A., L.L.B., (Hons.) from the National 

Law School of India University. Mr. Sridhar Gorthi is presently a 

partner in Trilegal and has worked with Arthur Anderson and Lex 

Inde, Mumbai. He is involved in legal advisory services to various 

multinational and domestic corporations on restructuring, debt 

finance, joint ventures, acquisition/mergers etc. 

Mrs. Cheryl Pinto (Director - Corporate Affairs) 

Mrs. Cheryl Pinto, 43, is a graduate in Pharmacy from the 

University of Bombay. She has over 22 years experience in the 

pharmaceuticals business. 

Mrs. B. E. Saldanha (Non-Executive Director) 

Mrs. B. E. Saldanha, 70, has graduated in B.Sc., B.Ed., from Bombay 

University and was a Whole-time Director of the Company from 

1982 to 2005. She was responsible to a large extent in developing 

the Company’s export business. 

Mr. Julio F. Ribeiro (Non-Executive Director) 

Mr. Julio F. Ribeiro, 81, is a retired government official and has 

served the country under various assignments. Amongst the 

major positions held, he has been the Ex-commissioner of Police, 

Mumbai, former Special Secretary to Government of India, 

Ministry of Home Affairs, former Director General of Police, Punjab, 

Ex-Adviser to the Governor of Punjab, Ex-Ambassador of India to 

Romania. 

Mr. Hocine Sidi Said (Non-Executive Director) 

Mr. Hocine Sidi Said, 45, has graduated in B.A (International 

Marketing). He is the Founder & Director of Bio-nAbler, an 

investment company that partners with Sovereign Wealth Funds 

and Private Equity Firms across Asia and the MENA region to 

identify and execute product and company acquisitions. He has 

over 20 years of experience in the pharmaceuticals industry and 

has worked with companies like Pfizer and UCB. During his stint 

at UCB, he was incharge of the entire Emerging Markets Region 

and designated as Senior Vice President. Prior to joining UCB, he 

spent close to 17 years with Pfizer in various senior management 

and developmental roles in the Middle East, Central and Eastern 

Europe and Asia. 

Mr. D. R. Mehta (Non-Executive Director) 

Mr. D. R. Mehta, 73, has graduated in Arts and law from 

Rajasthan University. He also studied at Royal Institute of Public 

Administration, London, UK and the Alfred Sloan school of 

Management, Boston, U.S.A. He has over 40 years experience in 

civil services and has held various positions in the Government of 

Rajasthan and Government of India. He was the Deputy Governor 

of Reserve Bank of India and also the chairman of the Securities 

and Exchange Board of India. 


Directors’ Report 

Your Directors have pleasure in presenting their 32nd Annual Report and Audited Accounts of the Company for the year ended 31st March, 

2010. 

FINANCIAL RESULTS 

(Rs. in Millions) 

Standalone Consolidated 

2009-2010 2008-2009 2009-2010 2008-2009 

Profit before Interest, Depreciation & Tax 1724.50 3206.13 6685.29 6289.95 

Less: Interest 301.58 551.39 1640.21 1404.76 

Less: Depreciation 212.78 191.04 1206.10 1026.83 

Less: Tax (Current Year & Deferred Tax) (74.49) 281.46 528.66 754.08 

Less: Exceptional Items - 2.98 - 1169.55 

Profit after Tax 1284.63 2179.26 3310.32 1934.73 

Share of (Profit)/Loss of Minority Interest - - (65.61) (18.09) 

Profit after Tax and Minority Interest 1284.63 2179.26 3244.71 1916.64 

Surplus brought forward from earlier years 7480.98 5636.88 11215.45 10276.66 

Profit available for appropriations 8765.61 7816.14 14460.16 12193.30 

APPROPRIATIONS 

Proposed Dividend on Equity Shares 107.94 100.21 107.94 100.21 

Tax on Proposed Dividend on Equity Shares 17.93 17.03 17.93 17.03 

Transfer to Foreign Currency Monetary Item Translation Difference 

Account - - - 366.12 

Residual Dividend and Dividend Tax 0.16 - 0.16 - 

Transfer to General Reserves 128.46 217.93 128.46 494.49 

Balance carried to Balance Sheet 8511.12 7480.97 14205.67 11215.45 

8765.61 7816.14 14460.16 12193.30 

DIVIDEND 

Options by the eligible employees of the Company and its 

subsidiaries. 

Your Directors recommend a Dividend of 40% (Re. 0.40 per equity 

share of Re. 1/ each) to be appropriated from the profits of the year 

2009-10 subject to the approval of the members at the ensuing 

Annual General Meeting. The dividend will be paid in compliance 

with applicable regulations. The dividend, if approved, will result 

in an outflow of Rs. 125.87 million (including dividend tax). 

CONSOLIDATED ACCOUNTS 

In accordance with the requirements of Accounting Standard 

AS-21 prescribed by the Institute of Chartered Accountants of 

India, the Consolidated Accounts for the year ended 31st March, 

2010, under Indian GAAP forms part of the Annual Report. 

RESULTS OF OPERATIONS 

The Company achieved consolidated Gross revenue of 

Rs. 25006.47 million (Rs. 21160.33 million) registering a growth of 

18.18% over the previous year and the Consolidated operating 

profit before interest, depreciation and tax was Rs. 6685.29 million 

as compared to Rs. 6289.95 million in the previous year. 

On standalone basis the company achieved a gross revenue of 

Rs. 10296.87 million and the Standalone operating profit before 

interest, depreciation & tax was Rs. 1724.50 million as compared 

to Rs. 3206.13 million in the previous year. 

CHANGES IN CAPITAL STRUCTURE 

Issue of shares on exercise of Employees’ Stock Options: 

During the year, the Company allotted 604,860 Equity Shares of 

Re. 1/- each (on pari-passu basis) pursuant to exercise of Stock 

Issue of shares under QIP: 

During the year, the Company allotted 18,712,935 Equity Shares 

of Re. 1/- each at a premium of Rs. 220/- per share to Qualified 

Institutional Buyers pursuant to Chapter VIII of the Securities 

Exchange Board of India (Issue of Capital Disclosure Requirements) 

Regulations 2009. The issue proceeds were utilised towards 

repayment of debts. 

EMPLOYEE STOCK OPTION SCHEME 

During the year, Stock Options have been issued to the employees 

of the Company. On exercising the convertible options so granted, 

the paid-up equity share capital of the company will increase by a 


The details of stock options granted by the Company are disclosed in 

compliance with clause 12 of the Securities Exchange Board of India 

(Employee Stock Options Scheme and Employee Stock Purchase 

Scheme), 1999 and set out in the Annexure-B to this Report. 

LISTING AT STOCK EXCHANGES 

The Equity shares of the Company continue to be listed on 

Bombay Stock Exchange Ltd., and The National Stock Exchange 

of India Ltd. Foreign Currency Convertible Bonds are listed on the 

Singapore Stock Exchange. 

SUBSIDIARY COMPANIES 

During the year the name of Badatur S.A. was changed to 

Glenmark Uruguay S.A. and Glenmark Dominicana S.A. to 


Glenmark Dominicana, SRL. The Company has also incorporated a 

subsidiary i.e. Glenmark Generics B.V., Netherlands. 

Pursuant to the provisions of Section 212 (8) of the Companies 

Act, 1956, the Company has obtained exemption from Ministry of 

Corporate Affairs, New Delhi, vide its letter No. 47/420/2010-CL-III 

dated 28th June, 2010 to attach Audited Accounts of its subsidiaries 

together with Directors’ Report and Auditor’s Report. The Audited 

Accounts of the subsidiaries together with its Directors’ Report 

and Auditor’s Report are available for inspection of members on 

any working day at the Corporate Office of the Company between 

11 a.m. to 1 p.m. 

DIRECTORS 

Mr. Glenn Saldanha, Mr. Sridhar Gorthi and Mr. J. F. Ribeiro retire 

by rotation at the ensuing Annual General Meeting and being 

eligible, offer themselves for re-appointment. 

Mr. M. Gopal Krishnan resigned as Director of the Company 

w.e.f. 29th January, 2010. Your Directors wish to place on record 

their sincere appreciation of the valuable contribution made by 

Mr. Gopal Krishnan during his tenure on the Board. 

Mr. Hocine Sidi Said has been appointed as Additional Director 

w.e.f. 29th October, 2009. He holds office as Director upto the date 

of the ensuing Annual General Meeting. Notice has been received 

from a member of the Company pursuant to the provisions of 

Section 257 of the Companies Act, 1956 signifying his intention 

to appoint Mr. Hocine Sidi Said as Director on the board of the 

Company. 

CORPORATE GOVERNANCE 

Report on the Corporate Governance forms an integral part of 

this Report. The Certificate of the Practicing Company Secretary 

certifying compliance with the conditions of Corporate 

Governance as stipulated in clause 49 of the Listing Agreement 

with Stock Exchanges is annexed with the report on Corporate 

Governance. 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT 

The management discussion and analysis report on the operations 

of the company, as required under the Listing agreements with 

the stock exchanges is provided in a separate section and forms a 

part of this report. 

AUDITORS 

M/s. Price Waterhouse, Chartered Accountants, have been the 

Statutory Auditors of the Company since F.Y. 2002-03. The Audit 

Committee and the Board of Directors have decided that in 

order to adhere to the best Corporate Governance practices, the 

Statutory Auditors should be changed periodically on rotational 

basis. The Company has received a Special Notice pursuant to 

Section 225 of the Companies Act, 1956 from a member proposing 

to move a resolution for the appointment of Walker, Chandiok & 

Co. Chartered Accountants, as Statutory Auditors of the Company 

in place of the retiring auditors, M/s. Price Waterhouse at the 

ensuing Annual General Meeting. 

Your Directors propose the appointment of Walker, Chandiok & 

Co., Chartered Accountants, as Statutory Auditors of the Company 

at the ensuing Annual General Meeting. 

Walker, Chandiok & Co. is a member firm of M/s Grant Thornton 

who is a leading international firm rated among the top 10 firms. 

They have a large international network and would be helpful and 

useful to the Company in managing its international operations. 

They have representations on various Accounting Board & 

committees in India and cater to leading companies. 

HUMAN RESOURCES 

Company’s industrial relations continued to be harmonious 

during the year under review. 

PARTICULARS OF EMPLOYEES 

Information as required under the provisions of Section 217(2A) 

of the Companies Act, 1956 read together with the Companies 

(particulars of Employees) Rules, 1975, as amended, are given in 

an Annexure forming part of this report. 

CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, 

TECHNOLOGY ABSORPTION, FOREIGN EXCHNAGE EARNINGS AND 

OUTGO 

The particulars as prescribed under Section 217(1)(e) of the 

Companies Act, 1956, read with the Companies (Disclosure of 

particulars in the report of Board of Directors) Rules, 1988 are set 

out in the Annexure-A to this Report. 

DIRECTORS’ RESPONSIBILITY STATEMENT 

Pursuant to Section 217(2AA) of the Companies Act, 1956, the 

directors confirm that – 

(i) in the preparation of the annual accounts, the applicable 

accounting standards have been followed along with 

proper explanation relating to material departures, if any; 

(ii) appropriate accounting policies have been selected and 

applied consistently and have made judgments and 

estimates that are reasonable and prudent so as to give a 

true and fair view of the state of affairs of the Company as 

at 31st March, 2010 and of the profit of the Company for the 

year ended 31st March, 2010; 

(iii) proper and sufficient care has been taken for maintenance 

of adequate accounting records in accordance with the 

provisions of the Companies Act, 1956 for safeguarding the 

assets of the Company and for preventing and detecting 

fraud and other irregularities; 

(iv) the annual accounts have been prepared on a going concern 

basis. 

APPRECIATION AND ACKNOWLEDGEMENTS 

Your Directors express their gratitude to the Company’s customers, 

shareholders, business partner’s viz. distributors and suppliers, 

medical profession, Company’s bankers, financial institutions 

including investors for their valuable sustainable support and 

Co-operation. 

Your Directors commend the continuing commitment and 

dedication of employees at all levels. 

Mumbai 

Date: 9th August, 2010 


G. Saldanha 

Chairman 


Annexures to the Directors’ Report 

ANNEXURE-A 

Information under Section 217(1)(e) of the Companies Act, 1956 read with Companies (Disclosure of Particulars in the Report of the Board 

of Directors) Rules, 1988 and forming part of the Directors’ Report. 

A. CONSERVATION OF ENERGY 

Energy Generation Measures Taken 

A. Power and Fuel Consumption 2009-10 2008-09 

1. Electricity 

(a) Purchased 

Unit (in ‘000 Kwhrs) 7995.98 6210.77 

(b) 

Total Amount (Rs. in ‘000s) 35385.00 27587.12 

Rate/Unit (Rs.) 4.43 4.44 

Own Generation 

i) Through Diesel Generator 

Unit (in ‘000 Kwhrs) 1187.92 992.99 

Units per Ltr. of Diesel Oil 3.33 3.50 

Cost/Unit (Rs.) 9.51 10.64 

ii) Through Steam Turbine/Generator NIL NIL 

2. Coal NIL NIL 

Qty. 

Total Cost 

Avg. Rate 

3. Furnace Oil/Light Diesel Oil 

Qty. (K. Ltr.) 52.40 54 

Total Amount (Rs. in ‘000s) 2391.40 2395.32 

Avg. Rate (Rs./K. Ltr.) 45.64 44.35 

4. i) Internal generation 

Light Diesel Oil 

Qty. (In Ltr. ‘000’s) NIL NIL 

ii) 

Total Cost (Rs. in ‘000s) NIL NIL 

Rate/Unit (Rs.) NIL NIL 

Natural Gas 

Qty. (M 3 ‘000s) NIL NIL 

Total Cost (Rs. in ‘000s) NIL NIL 

Rate/Unit (Rs.) NIL NIL 

B. Consumption 

The Company manufactures several Drug Formulations 

in different pack sizes. In view of this, it is impracticable to 

apportion the consumption and cost of utilities to each 

Product/Formulation. 

B. TECHNOLOGY ABSORPTION, RESEARCH & DEVELOPMENT 

(R & D) 

1. Specific areas in which R & D is carried out by the 

Company and its subsidiaries and benefits derived 

as a result of the same. 

Formulation Development: 

a) Pharmaceutical Formulation Development: 

Development of formulations as immediate 

release, delayed release, enteric release, 

sustained release and various platform 

technologies. This includes literature survey, 

preformulation studies, formulation and 

standardization of dosage forms for selected 

drug molecules on laboratory scale. 

R & D has developed the new formulations for new 

and existing molecules and drug combinations. 

Which includes its standardization and execution 

at production site, evaluation of these batches 

against reference samples for pharmaceutical and 

bio-equivalence. 

The following products are ready for commercialization and 

commecialized during the financial year 2009-2010. 

Anti inflammatory and analgesic 

1. Lornoxicam + Paracetamol Tablets (4 mg+500 mg) 

(commecialized) 

2. Lornoxicam + Paracetamol Tablets (8 mg+500 mg) 



3. Lornoxicam SR Tablets 16 mg (commecialized) 

4. Dexibuprofen tablets 300 mg (commecialized) 

5. Dexibuprofen tablets 400 mg (commecialized) 

6. Dexibuprofen + Paracetamol tablets 300 + 500 mg 


7. Diacerein ER capsules 100 mg (Ready for 

commercialization) 

Anti Allergic 

1. Levocetirizine + Phenylephrine capsules 

(5mg + 10 mg) (commecialized) 

Anti Diabetic 

1. Metformin Hydrochloride Extended Release Tablets 

1000 mg (Ready for commercialization) 

2. Miglitol and metformin Hydrochloride SR Tablets 

(25 mg + 500 mg) and (50 mg + 500 mg) 


Anti Asthmatic 

1. Acebrophylline Capsule 100 mg (commecialized) 

2. Montelukast & Levocetirizine Tablets (Ready for 


3. Doxofylline & Salbutamol Capsules (400 + 2 & 400 

+ 4) (Ready for commercialization) 

Anti Hypertensive 

1. Telmisartan & Metoprolol tablets (40 mg + 25 mg) 

(Ready for commercialization) 

2. Telmisartan & Metoprolol tablets (40 mg + 50 mg) 


3. Olmesartan Tablets 40mg (commecialized) 

4. Olmesartan + Hydrochlorothiazide Tablets (40 mg 

+12.5 mg) (commecialized) 

Hormones 

1. Buserelin Injection 1 mg / ml (commecialized) 

2. Cyproteronoe Acetate & Ethinyl Estradiol tablets 


Anti Bacterial 

1. Tigecycline Injection (commecialized) 

2. Ofloxacin and Ornidazole Tablet (commecialized) 

3. Colistimethate Injection 1 Million IU (Ready for 


Dermatology 

1. Benzoyl Peroxide Gel 2.5% (Ready for 


2. Benzoyl Peroxide Gel 5% (Ready for 


3. Sertaconazole + Beclomethasone Dipropionate Cream 


4. Hydroquinone+Tretinoin+Fluocinolone Acetonide 

Cream (commecialized) 

5. Clotrimazole + Beclomethaosne Dipropionate + 

Lidocaine + Ofloxacin Ear Drops (commecialized) 

6. Tretinoin cream (Ready for commercialization) 

Topical Solutions 

1. Minoxidil 10% + Aminexil 1.5% Topical Solution 


Liquid Orals 

1 Levosalbutamol Sulphate + Guaiphenesin + Ambroxol 

Hydrochloride Expectorant (commecialized) 

2. Amantadine Hydrochloride + Paracetamol + 

Phenylephrine Hydrochloride + Chlorpheniramine 

Maleate Oral Solution (commecialized) 

Oncology 

1. Pemetrexed for Injection (commecialized) 

2. Bortezomib for Injection (commecialized) 

3. Erlotinib Tablets (commecialized) 

NCE Formulation Development 

1. Formulation Development for NCE 8200 - tablet 

batch for clinical bridging study 50/100 mg 

(Completed) 

2. Formulation Development NCE 4039-Tablet and 

capsule batches for clinical study. 

3. Formulation Development NCE 10693- Preclinical 

development & clinical development 

4. Formulation Development NCE 15300 - Preclinical 

development and clinical studies. 






development. 

US market 

1. Omeprazole capsule 10 mg, 20 mg, 40 mg (Ready for 


Analytical Method Development: 

a) Development of new analytical test procedures for 

Establishing the quality and setting up specification for the 

release testing of Dosage Forms and Active Pharmaceutical, 

Finished Intermediates is the responsibility of Analytical 

Method Development group at Glenmark R & D. These 

methods are validated as per International Regulatory 

Standards. 

Category 

The responsibilities of this department also include the 

evaluation of the stability of the products developed at 

R&D under various Climatic Conditions as ICH Guidelines 

of Stability. This data is used as a basis to predict the shelf 

life of the products and also to prepare the stability study 

protocols for the commercial products manufactured as 

drug products/drug substance. 

Method 

Developed 

Methods 

Validated 

Methods 

Transferred 

to the 

manufacturing 

Site 

Oral Solid Dosages 87 46 19 

Derma products 29 33 17 

Oncology products 10 5 4 

API 3 9 9 

Documents for Drug 

Substance 

(STP, Specs etc.) 

– – 49 


In Analytical Research activities for NCE research: 

a) We developed new analytical test procedures to establish 

the structure and evaluate the quality of NCE prior to 

initial biological screening. During pre-clinical studies, 

we generated analytical data for establishing the quality 

and setting up specification for the release testing of 

Drug substances. The methods used to release the drug 

substances which are used in clinical trials, are validated as 

per International Regulatory Standards. 

b) We evaluated physicochemical properties of new chemical 

entity; did the characterization studies, stability studies 

(under various Climatic Conditions as per ICH Guidelines of 

Stability). 

c) CMC related Dossiers, study protocols and study reports 

were prepared to support various pre-clinical studies and 

clinical trial applications with Regulatory Agencies. 

d) We performed polymorphic evaluation and salt selection 

studies on various NCEs drug substance and drug products. 

e) Reference standards of NCE were generated and supplied to 

CROs and manufacturing sites. 

Category 

Numbers 

Methods developed 131 

Methods Validated 3 

Methods Transferred to the Manufacturing 4 

Sites 

Reference Standards for NCEs 9 

Stability Studies 136 

Developmental Studies 15 

Documents for Drug Substance (Dossiers, 413 

Specs, CoA, TTD, etc.) 

2. Future plan of action 

R & D is working on new molecules in the following segment; 

- Oncology Products 

- Antifungal molecules 

- Antibacterial molecules 

- Antiasthmatic molecules 

- Antidiabetic products 

- Antiaging products 

- Antiinflammatory products 

- Atihyperlipidemic products 

- Antiosteoporosis products 

- Antiemetic products 

- Sunscreens Products 

- Technology – such as microspheres & aerosols foam 

Mousse. 

- Technology – to replace solvents used in film coating 

by water. 

- Development of formulations for Semi regulatory 

market. 

- Development of formulations for Latin American market. 

- Development of formulations for US market. 

- Antihypertensive molecules 

- Metered dose inhaler products for India market. 

- Metered dose inhaler products for Brazil market 

- Development of specialized NDDS products for 

Indian/SRM. 

TECHNOLOGY ABSORPTION, ADOPTION AND INNOVATION: 

1. Efforts in brief towards technology absorption, 

adoption and innovation. 

Most of our efforts in the area of technology 

absorption, adoption and innovation are based on 

our own efforts in R & D. They include improvement 

in yield and quality, improvement of processes and 

development of new processes with validation 

studies. 

2. Benefits derived: 

Benefits derived are enhanced production of our 

products, improvement in the yield and quality of 

products and introduction of new products, cost 

reduction of products and processes without affecting 

the quality of the products and process efficacy. 

Our R & D Centre is recognised by D.S.I.R., Ministry of 

Science and Technology, Government of India. 

Information regarding technology imported during 

the last five years – Nil. 

3. Expenditure on R & D: 

(Rs. in Million) 

2009-10 2008-09 

a) Capital Expenditure 57.98 104.46 

b) Revenue Expenditure 460.56 514.58 

c) Total 518.54 619.04 

d) R & D Expenditure as a 

4.99% 6.41% 

percentage of total turnover 

C. FOREIGN EXCHANGE EARNINGS AND OUTGO 

1. Activities relating to exports; initiatives taken to 

increase exports; development of new export markets 

for products and services; and export plans. The 

Management Discussion and Analysis report forming 

a part of the Directors Report deals with the same. 

2. Total foreign exchange earned was Rs. 2953.47 million 

and outflow was Rs. 596.83 million. 

Mumbai 



G. Saldanha 

Chairman 


ANNEXURE-B 

Disclosure in the Directors’ Report as per SEBI Guidelines: 

Particulars 

a Options granted 10,134,900 

b Pricing Formula Exercise Price shall be the latest available closing market price 

of the equity shares of the company, prior to the date of grant 

c Options Vested** 5,764,000 

d Options Exercised** 2,252,500 

e Total no. of shares arising as result of exercise of Options 2,252,500 

f Options lapsed * 5,248,900 

g Variation in terms of Options None 

h Money realised by exerise of Options (in lakhs) 952.85 

i Total number of options in force** 2,633,500 

** The number of options have been reported as on 31.03.2010 

* Lapsed Options includes options cancelled/lapsed 

j Employee wise details of options granted to : 

- Senior Management Name of the employee No. of options granted 

Chanakya Mishra 10000 

Jaswinder Gill 10000 

Paulo Tadeu Resende 27500 

Penny Ward 35000 

Rajeev Sibal 10000 

Rick Finnegan 25000 

Sanjay Gupta 20000 

- any other employee who receives a grant in any one year of 

option amounting to 5% or more of option granted during that 

None 

year 

k 

l 

- employees who were granted option, during any one year, 

equal to or exceeding 1% of the issued capital (excluding 

warrants and conversions) of the Company at the time of grant 

None 

Diluted earnings per share pursuant to issue of shares on exercise 

of option calculated in accordance with AS 20 'Earnings per Share' 

Pro Forma Adjusted Net Income and Earning Per Share 

Particulars 

Rs. in Lakhs 

Net Income 12,846.32 

As Reported 

Add: Intrinsic Value Compensation Cost 

Nil 

Less: Fair Value Compensation Cost 24.58 

Adjusted Pro Forma Net Income 12,821.74 

Earning Per Share: Basic 

As Reported 4.93 

Adjusted Pro Forma 4.92 

Earning Per Share: Diluted 

As Reported 4.92 

Adjusted Pro Forma 4.91 


m Weighted average exercise price of Options granted during the 

year whose 

(a) Exercise price equals market price 228.63 

(b) Exercise price is greater than market price N.A. 

(c) Exercise price is less than market price N.A. 

Weighted average fair value of options granted during the year 

whose 

(a) Exercise price equals market price 141.95 

(b) Exercise price is greater than market price N.A. 

(c) Exercise price is less than market price N.A. 

n 

Description of method and significant assumptions used to 

estimate the fair value of options 

The fair value of the options granted has been estimated using 

the Black-Scholes option pricing model. Each tranche of vesting 

have been considered as a separate grant for the purpose of 

valuation. The assumptions used in the estimation of the same 

has been detailed below: 

Weighted average values for options granted during the year 

Variables 

Stock Price 230.16 

Volatility 57.43% 

Risk-free Rate 7.75% 

Exercise Price 228.63 

Time to Maturity 6.00 

Dividend yield 22.00% 

141.95 

Stock Price : Closing price on NSE as on the date of grant has been considered for valuing the grants. 

Volatility : We have considered the historical volatility of the stock till the date of grant to calculate the fair value. 

Risk-free rate of return : The risk-free interest rate being considered for the calculation is the interest rate applicable for a maturity equal to 

the expected life of the options based on the zero-coupon yield curve for Government Securities. 

Exercise Price : The Exercise Price is the latest available closing market price of the equity shares of the Company, prior to the date of grant, 

for the respective grants. 

Time to Maturity : Time to Maturity / Expected Life of options is the period for which the Company expects the options to be live. The 

minimum life of a stock option is the minimum period before which the options cannot be exercised and the maximum life is the maximum 

period after which the options cannot be exercised. 

Expected divided yield : Expected dividend yield has been calculated as an average of dividend yields for the four financial years preceding 

the date of the grant. 


Report on Corporate Governance 

Pursuant to Clause 49 of the Listing Agreement, a Report on Corporate Governance is given below. 

1. The Company’s philosophy on Code of Governance: 

The Company’s philosophy on Code of Governance is aimed at assisting the top management of the Company in the efficient 

conduct of its business and in meeting its obligations to shareholders. The Company has adopted a codified Corporate Governance 

Charter, inter-alia, to fulfill its corporate responsibilities and achieve its financial objectives. 

The Company believes in and has consistently practiced good corporate governance. The Company creates an environment for the 

efficient conduct of the business and to enable management to meet its obligations to all its stakeholders, including amongst others, 

shareholders, customers, employees and the community in which the Company operates. 

2. Board of Directors: 

A. Composition: 

The Board comprises of 10 Directors, of whom, three are executive, and seven are non-executive Directors. The Chairman of the 

Board is a Non-Executive Director. 

The Non-Executive Directors are professionals with experience in management, pharmaceutical industry, legal, finance, 

marketing and general administration who bring in a wide range of skills and experience to the Board. 

a) Details of the Board of Directors: 

Name of the Director Status Relationship with other 

Directors 

Gracias Saldanha - 

Chairman 

Non-Executive 

– Promoter 

Group 

B. E. Saldanha (Ms.) * Non-Executive 

– Promoter 

Group 

Glenn Saldanha 

Managing Director 

and CEO 

Cheryl Pinto (Ms.) 

Executive 

– Promoter 

Group 

Executive 

– Promoter 

Group 

Father of Mr. Glenn Saldanha and 

Ms. Cheryl Pinto and Husband of 

Mrs. B. E. Saldanha 

Mother of Mr. Glenn Saldanha and 

Ms. Cheryl Pinto and wife of Mr. 

Gracias Saldanha 

Son of Mr. Gracias Saldanha and 

Mrs. B. E. Saldanha and brother of 

Ms. Cheryl Pinto 

Daughter of Mr. Gracias Saldanha 

and Mrs. B. E. Saldanha and Sister 

of Mr. Glenn Saldanha 

No. of Board 

Meetings 

attended 

No. of other 

Directorships 

held # 

Committee 

Membership(s) ## 

Chairman Member 

6 1 – – 

3 1 – – 

5 3 – 2 

5 – – 1 

J. F. Ribeiro Non-Executive None 5 3 5 -- 

– Independent 

A. S. Mohanty Executive None 6 – – – 

N. B. Desai Non-Executive None 2 1 – 3 


Sridhar Gorthi 

Non-Executive None 5 2 – 3 


D. R. Mehta* Non-Executive None 3 6 – – 


Hocine Sidi-Said** Non-Executive None 1 – – – 


M. Gopal Krishnan*** Non-Executive None 1 – – – 


# Includes Directorship(s) in Indian Companies. The Directorships held by Directors as mentioned above, do not include 

Alternate Directorships and Directorships of Foreign Companies, Section 25 Companies and Private Limited Companies. 

## In accordance with Clause 49 of the Listing Agreement, Membership/Chairmanship of only the Audit Committee and 

Shareholders/Investors Grievance Committee of all Public Limited Companies have been considered. 

* Appointed as Director w.e.f. 14th August, 2009 

** Appointed as Director w.e.f. 29th October, 2009 

*** Ceased to be a Director w.e.f. 29th January, 2010 

b) During the Financial Year ended 31st March, 2010, Six board meetings were held on the following dates: 

17th April 2009, 26th June 2009, 27th July 2009, 14th August 2009, 29th October 2009 and 29th January 2010 

B. None of the Non-Executive Directors of the Company, have any pecuniary relationship or transactions with the Company other 

than sitting fees paid for attending board meeting/ committee meetings and those already disclosed in the note 7 of schedule 

21 to the Financial Statement in the Annual Report. 

C. Mr. Gracias Saldanha, Mr. Glenn Saldanha, Mrs. Cheryl Pinto and Mr. J. F. Ribeiro attended the last Annual General Meeting of 

the Company held on 25th September, 2009. 


3. Audit Committee: 

i) Your Company has a qualified and independent Audit Committee. During the Financial Year ended 31st March, 2010, the 

committee met five times on 30th May, 2009, 26th June, 2009, 27th July, 2009, 28th October, 2009 and 29th January, 2010. The 

attendance of the Committee members at the meetings was as follows: 

ii) 

Name No. of meetings attended Remarks 

1. J. F. Ribeiro 4 Chairman 

2. Sridhar Gorthi 3 Member 

3. N. B. Desai 2 Member 

4. M. Gopal Krishnan 1 (Ceased to be a member w.e.f. 

29th January, 2010) 

Mr. Glenn Saldanha, Managing Director & CEO, Mr. R. V. Desai, CFO and Mr. Prakash Sevekari, Cost Auditor are invitees to the 

Meeting of the Audit Committee. The Company Secretary acts as a Secretary to the Committee. The terms of reference of this 

committee are wide enough covering matters specified in the Companies Act, 1956 read together with Clause 49 of the Listing 

Agreement of the Stock Exchange. The current Charter of the Audit Committee is in line with international best practices and the 

regulatory changes formulated by SEBI and the listing agreements with the stock exchanges on which your company is listed. 

iii) Terms of Reference: 

a) Approving and implementing the audit procedures and techniques. 

b) Reviewing audit reports of both statutory and internal auditors with auditors and management. 

c) Reviewing financial reporting systems, internal control systems and control procedures. 

d) Ensuring compliance with regulatory guidelines. 

e) Reviewing the quarterly, half-yearly and annual financial results of the Company before submission to the Board. 

4. Remuneration of Directors: 

A. The remuneration of the executive and non-executive Directors of your Company is decided by the Board of Directors on the 

terms and conditions as per the recommendation by the Compensation Committee. 

B. Given below are the details of remuneration/fees/commission paid to Directors during the financial year ended 31st March , 2010: 

Name of Director Salaries 

Amount (Rs.) 

Retirement 

benefits/other 

reimbursements 

Amount (Rs.) 

Commission 

Amount (Rs.) 

Sitting Fees 

Amount (Rs.) 

Total 

Amount (Rs.) 

1. Gracias Saldanha – – – 120,000 120,000 

2. B. E. Saldanha – – – 60,000 60,000 

3. Glenn Saldanha 9,720,000 8,562,309 – – 18,282,309 

4. Cheryl Pinto 7,900,512 1,508,443 – – 9,408,955 

5. J. F. Ribeiro – – – 1,80,000 1,80,000 

6. N. B. Desai – – – 80,000 80,000 

7. M. Gopal Krishnan* – – – 40,000 40,000 

8. Sridhar Gorthi – – – 1,60,000 160,000 

9. A. S. Mohanty 6,200,508 1,044,163 957,000 – 82,01,671 

10. D. R. Mehta – – – 60,000 60,000 

11. Hocine Sidi Said – – – 20,000 20,000 

23,821,020 11,114,915 957,000 720,000 36,612,935 

Notes: 

1. The Executive Directors have been reappointed on 16th May, 2007 for the term of five years. The service contract can be 

terminated with a notice of six months. 

2. Sitting fees of Rs. 1,60,000 of Mr. Sridhar Gorthi was paid to Trilegal on his behalf. 

* Ceased to be director w.e.f. 29th January, 2010 

Shares held by non-executive/Independent directors as on 31st March, 2010 

Name of Director 

Equity Shares (Nos.) 

Gracias Saldanha 654744 

B. E. Saldanha 537598 

J. F. Ribeiro 45800 

N. B. Desai 30000 

Sridhar Gorthi 559 

D. R. Mehta NIL 

Hocine Sidi Said 

NIL 


5. Shareholders’/Investors’ Grievance Committee: 

The following Committee reviews shareholders’ complaints and resolution thereof. 

Name of committee Members No. of meetings held Attendance at the meeting 

Shareholders’ and Investors’ Grievance 1) J. F. Ribeiro – Chairman 7 7 

Committee. 

2) Glenn Saldanha – Member 7 6 

3) N. B. Desai – Member 7 3 

4) Cheryl Pinto – Member 7 5 

Compliance Officer: Mr. Sanjay Chowdhary – Jt. Company Secretary acts as the Compliance officer of the Company. 

Details of investor’s complaints received during the year ended 31st March, 2010: 

No. of complaints 2009-2010 2008-2009 

Received 20 50 

Disposed 20 50 

Pending NIL Nil 

The Company’s Registrars, Karvy Computershare Private Ltd., had received letters/complaints during the financial year, all of 

which were replied/resolved to the satisfaction of the shareholders. 

6. Compensation Committee: 

i) Broad terms of reference of the Compensation Committee: 

To recommend and review remuneration package of Executive/Non-Executive Directors. 

To approve issue of stock options to the employees. 

ii) The Compensation Committee comprises of following members of the Board: 

1. J. F. Ribeiro - Chairman 

2. Glenn Saldanha - Member 

3. N. B. Desai - Member 

4. S. Gorthi - Member 

iii) During the year ended 31st March, 2010, four meetings were held: 17th April 2009, 14th July 2009, 29th January 2010 and 25th 

February 2010. 

iv) Compensation Policy: 

The Company follows a market linked remuneration policy, which is aimed at enabling the Company to attract and retain the 

best talent. Compensation is also linked to individual and team performance as they support the achievement of Corporate 

Goals. The Company has formulated an Employee Stock Option Scheme for rewarding & retaining performers. 

7. Disclosures by Management: 

a) No material, financial and commercial transactions were reported by the management to the Board, in which the management 

had personal interest having a potential conflict with the interest of the company at large. 

b) There are no transactions with the Director or Management, their associates or their relatives etc. that may have potential 

conflict with the interest of the Company at large. 

c) There was no non-compliance during the last three years by the Company on any matter related to capital market. 

Consequently, there were neither penalties imposed nor strictures passed on the Company by Stock Exchanges, SEBI or any 

statutory authority. 

d) Though there is no formal Whistle Blower Policy, the Company takes cognizance of the complaints made and suggestions 

given by the employees and others. Even anonymous complaints are looked into and whenever necessary, suitable corrective 

steps are taken. No employee of the Company has been denied access to the Audit Committee of the Board of Directors of the 

Company. 

e) The company has fulfilled a non-mandatory requirement as prescribed in Annexure I D to Clause 49 of the Listing Agreement 

with the Stock Exchanges, related to Remuneration Committee (Compensation Committee). Please see the Para on 

Compensation Committee. 

8. Shareholders information: 

a) The relevant information relating to the Directors to be re-appointed at the ensuing Annual General Meeting to be held on 

27th September, 2010 are given below: 

i) Mr. Glenn Saldanha – 40, is a B. Pharm from Bombay University and was awarded the Watumall Foundation Award for 

overall excellence. His other educational qualifications include an MBA from New York University’s Leonard N. Stern 

School of Business (US). He has worked for Eli Lilly in the US and was a Management Consultant with Price Waterhouse 

Coopers. His Services have been used by Smithkline Beecham, Rhorer, Astra, Merck and Johnson and Johnson, among 

others. He has been the Managing Director of the Company since May’2002. He is also a Director of following Companies/ 

Body Corporates: 


ii) 

iii) 

iv) 

Names of the companies/firms 

Position 

Glenmark Exports Ltd. 

Director 

Glenmark Generics Inc., USA. 

Director 

Glenmark Dominicana, S.R. L. 

Director 

Glenmark Pharmaceuticals S.A. 

Director 

Glenmark Holding S.A. 

Director 

Glenmark Generics Ltd. 

Chairman 

Glenmark Generics Holding S.A. 

Director 

Glenmark Generics Finance S.A. 

Director 

Glenmark Therapeutics Inc. USA 

Director 

Talwalkar Better Value Fitness Ltd. 

Director 

Mr. J. F. Ribeiro – 81, is a retired Government official and has served the country under various assignments. Amongst 

the major positions held, he has been the Ex-Commissioner of Police, Mumbai, Former Special Secretary to Government 

of India, Ministry of Home Affairs, former Director General of Police, Punjab, Ex-Adviser to the Governor of Punjab, 

Ex-Ambassador of India to Romania. He is also a Director of following Companies/Body Corporates: 


Position 


Non-Executive Director 

VVF Ltd. 


Fullerton India Credit Company Ltd. 


Mr. Sridhar Gorthi – 38, is a B.A., LLB (Hons.) from the National Law School of India University. He is presently a partner in 

Trilegal and has worked with Arthur Anderson and Lex Inde, Mumbai. He is involved in legal advisory services to various 

multinational and domestic corporations on restructuring, debt finance, joint ventures, acquisition/mergers etc. He is 

also a Director of following Companies/Body Corporates: 


Position 

Trilegal 

Partner 

Triconsult India Pvt. Ltd. 

Director 


Director 

Hathway Cable & Datacom Limited 

Director 

Pay Pal Payment Pvt. Ltd. 

Director 

Aurous Communications & Events (I) Pvt. Ltd. 

Director 

Insite India adviser Limited 

Director 

Scottish & Newcastle India Pvt. Ltd 

Director 

RPS Research India Pvt. Ltd. 

Director 

Petro Tiger Services India Private Limited 

Director 

Mr. Hocine Sidi Said – 45, is the Founder & Director of Bio-nAbler, an investment company that partners with Sovereign 

Wealth Funds and Private Equity Firms across Asia and the MENA region to identify and execute product and company 

acquisitions. He has over 20 years of experience in the pharmaceuticals industry and has worked with companies 

like Pfizer and UCB. During his stint at UCB, he was incharge of the entire Emerging Markets Region and designated 

as Senior Vice President. Prior to joining UCB, he spent close to 17 years with Pfizer in various senior management 

and developmental roles in the Middle East, Central and Eastern Europe and Asia. He is also a Director of following 

Companies/Body Corporates:- 


Position 

Moksha 8 Inc. 

Member 

Fuelogical Pte Ltd. 

Director 

Bio-nAbler LLC 

Director 

b) Share Transfer Process: The shares are sent/received for physical transfer at R & T’s office and all valid transfer requests are 

processed and returned within a period of 30 days from the date of receipt. The Share transfers are approved on weekly basis 

by the Share Transfer Committee. 

c) Dematerialisation of shares: As of 31st March, 2010, 99.05% of shares have been dematerialised and held in electronic form 

through NSDL and CDSL. The shares of your company are permitted to be traded only in dematerialised form. 

d) Share Holding Pattern as at 31st March, 2010: 

Description No. of Shareholders Shares held % to Equity 

Com pany Promoters 16 130507963 48.37 

Foreign Institutional Investors 182 72432081 26.84 

Residential Individuals 63881 29896297 11.08 

Bodies Corporate 1363 11521963 4.27 

Indian Financial Institutions 9 7905087 1.45 

Mutual Funds 43 12063032 4.47 

Non Resident Indians 1779 1804779 0.67 

Foreign Nationals 7 112108 0.04 


Description No. of Shareholders Shares held % to Equity 

Banks 12 1286450 0.48 

H.U.F. 1399 867228 0.32 

Employees 63 512497 0.19 

Clearing Members 290 779960 0.29 

Directors 6 123824 0.05 

Trusts 12 24284 0.01 

TOTAL 69062 269837553 100.00 

e) General Body Meetings: 

i) The last three Annual General Meetings of the Company were held at the venue and time as under: 

AGM No. Date Time Venue 

29 20th September, 2007 11.00 a.m. Sunville Banquet & Conference Hall 

3rd floor, Dr. Annie Besant Road, 

Worli, Mumbai - 400 018. 







All resolutions moved at the last Annual General Meeting were passed by a show of hands by requisite majority of 

members who attended the meeting. 

ii) Whether any special resolution passed in the previous three AGMs? 

Yes. 

iii) Whether any special resolution passed last year through postal ballot? 

Yes 

iv) Who conducted the postal ballot? 

Mr. S. S. Rauthan, Practising Company Secretary. 

v) Whether any special resolution is proposed to be conducted through postal ballot? 

No. 

vi) Procedure for postal ballot. 

One resolution was passed by Postal ballot on 2nd September, 2009. Mr. S. S. Rauthan, Practising Company Secretary was 

appointed as the scrutinizer for conducting the Postal Ballot and the Scrutinizer submitted his report to the Chairman of 

the Board of Directors of the Company and the results were announced at the deemed Extra-Ordinary General Meeting 

held on 2nd September, 2009 at the corporate office of the Company at Glenmark House, HDO Corporate Building, 

Wing-A, B. D. Sawant Marg, Andheri (E), Mumbai - 400 099. 

The following is the result of the Postal Ballot as per the Scrutinizer’s Report. 

Item No. 1 of Notice: Approval of the shareholders under Section 81(1A) and other applicable provisions, if any, of the 

Companies Act, 1956 for issue of shares or Convertible instruments by the company. 

Particulars 

No. of Postal 

Ballot Forms 

No. of Shares 

% of the total paid 

up equity shares 

Total Postal Ballot forms received (A) 1332 145984726 58.27 

Less: Invalid Postal Ballot forms (B) 36 114998 0.05 

Net valid Postal Ballot forms (as per register) (A-B) 1296 145869728 58.22 

Postal Ballot forms with assent for the resolution 1239 135004939 53.89 

Postal Ballot forms with dissent for the resolution 57 10864789 4.33 

f) Date, Time and Venue of the Ensuing Annual General Meeting : Annual General Meeting shall be held on Monday, 

27th September, 2010 at 11 a.m. at Sunville Banquet & Conference Hall, 3rd Floor, Dr. Annie Besant Road, Worli, 

Mumbai - 400 018. 

Record Date/Book Closure: 

Book Closure: Monday, 20th September, 2010 to Monday, 27th September, 2010 (both days inclusive) 

g) Date of declaration of dividend: 

A dividend of Re. 0.40 per share has been recommended by the Board of Directors on 28th May, 2010 subject to the approval 

of the shareholders at the ensuing Annual General Meeting. 


h) Financial Calendar (Tentative and Subject to change) 

Financial reporting for the first quarter ending June 30, 2010. July 2010 

Financial reporting for the second quarter ending September 30, 2010. October 2010 

Financial reporting for the third quarter ending December 31, 2010. January 2011 

Financial results for the year ending March 31, 2011. May 2011 

i) Members can avail of nomination facility by filing Form 2B with the Company. Blank forms can be downloaded from the 

website of the Company. 

j) Members may kindly note that consequent to split in the face value of equity shares of the company from Rs. 10/- to Rs. 2/- and 

subsequently from Rs. 2/- to Re. 1/-, the share certificates in the face value of Rs. 10/-or Rs. 2/- have ceased to be valid for any 

purpose whatsoever. Members who are holding share certificates of the face value of Rs. 10/- or Rs. 2/- each are requested to 

kindly send their respective share certificates to the R & T Agents for receiving ten or two equity shares of face value of Re. 1/- 

each in exchange of one equity share of face value of Rs. 10/- each or Rs. 2/-. 

k) Pursuant to the provisions of Section 205A (5) of the Companies Act,1956, dividend for the financial year ended March 31, 

2001 and thereafter, which remain unclaimed for a period of seven years will be transferred by the Company to the Investor 

Education and Protection Fund (IEPF) established by the Central Government pursuant to Section 205C of the Companies Act, 

1956. 

Information in respect of such unclaimed dividend when due for transfer to the said Fund is given below : 

Financial Year 

Ended 

Date of declaration 

of Dividend 

Date of transfer to unpaid/ 

unclaimed dividend account 

Last date for claiming 

unpaid Dividend 

Due date for transfer 

to IEP Fund 

31.03.2003 15.05.2003 15.06.2003 14.06.2010 14.07.2010 

31.03.2004 29.03.2004 29.04.2004 28.04.2011 28.05.2011 

31.03.2005 26.04.2005 26.05.2005 25.05.2012 24.06.2012 

31.03.2006 31.01.2006 02.03.2006 01.03.2013 31.03.2013 

31.03.2007 26.12.2006 25.01.2007 24.01.2014 23.02.2014 

31.03.2008 31.10.2007 30.11.2007 29.11.2014 29.12.2014 

31.03.2009 25.09.2009 25.10.2009 24.10.2016 23.11.2016 

Shareholders who have not so far encashed their dividend warrant(s) are requested to seek issue of duplicate warrant (s) 

by writing to the Company’s Registrar and Transfer Agents, M/s. Karvy Computershare Pvt. Ltd. immediately. Shareholders 

are requested to note that no claims shall lie against the Company or the said Fund in respect of any amounts which were 

unclaimed and unpaid for a period of seven years from the dates that they first became due for payment and no payment shall 

be made in respect of any such claims. 

l) Means of Communication: 

a) Quarterly/Half Yearly and Annual Financial Results of the Company are published in the Financial Express and Punyanagri 

newspapers. 

b) Your Company’s results & official news releases are displayed on the company’s website. 

c) All items required to be covered in the Management Discussion & Analysis are included in the Directors’ Report to 

Members. 

d) Company has its own web site and all the vital information relating to the company and its products is displayed on its 

web site: www.glenmarkpharma.com. 

e) Whether presentation made to institutional investors or to the analysts – Yes. 

Your Company also regularly provides information to the stock exchanges as per the requirements of the Listing 

Agreements. The Company’s website is updated periodically to include information on new developments and business 

opportunities of your Company. 

The Management Discussion & Analysis forms a part of the Annual Report. 

9. Company’s Scrip Information: 

Listing on stock exchanges: The shares of the Company are listed on Bombay Stock Exchange Limited & the National Stock 

Exchange of India Ltd. 

Listing fees for the year 2010-11 have been paid to the Stock Exchanges. 

Stock Code: 532296 on the BSE 

Electronic Form No. INE935A01035 

Scrip Name 

GLENMARK PHA- BSE 

GLENMARK - NSE 


Market Price Data: High, low during each month in last financial year. Performance in comparison to broad based indices namely BSE 

Sensex. 

(All figures in Indian Rupees) 

Months High Low Closing BSE Sensex 

Apr-09 217.50 147.50 179.80 11,403.25 

May-09 268.00 161.90 227.10 14,625.25 

Jun-09 266.80 199.05 217.60 14,493.84 

Jul-09 274.45 203.35 249.80 15,670.31 

Aug-09 280.35 202.00 217.15 15,666.64 

Sep-09 239.90 213.05 237.50 17,126.84 

Oct-09 252.90 215.45 224.15 15,896.28 

Nov-09 258.65 210.00 231.35 16,926.22 

Dec-09 287.05 234.00 275.00 17,464.81 

Jan-10 290.00 235.30 242.15 16,357.96 

Feb-10 268.00 240.25 251.60 16,429.55 

Mar-10 273.00 230.00 266.25 17,527.77 

Glenmark 

300.00 

250.00 

200.00 

150.00 

100.00 

50.00 

Apr-09 

May-09 


Glenmark Vs. BSE SENSEX 

Jun-09 

Jul-09 

Aug-09 

Sep-09 

Oct-09 

Nov-09 

Dec-09 

BSE 

Months 

Jan-10 

Feb-10 

Mar-10 

20000 

18000 

16000 

14000 

12000 

10000 

8000 

6000 

4000 

2000 

0 

BSE Sensex 

10. Plant Locations: 

The Company’s plants are located at: 

i) E-37, MIDC Industrial Area, D Road, Satpur, Nasik - 422 007, Maharashtra. 

ii) Village: Kishanpura, Baddi Nalagarh Road, Tehsil: Nalagarh, Dist.: Solan - 174 101, Himachal Pradesh. 

iii) Business Unit II, Village Bhattanwala, PO Rajpura, Nalagarh Dist.: Solan, Himachal Pradesh. 

iv) D-42, Plot No. 50, Kundaim Industrial Estate, Kundaim - 403 115, Goa. 

11. Outstanding GDR’s/ADR’s/Warrants or any Convertible instruments exercised, date and likely impact on equity: 

A) The Company had issued 2,36,500 new options under Employees Stock Option Scheme viz. ESOS’ 2003. During the Financial 

Year 2009-2010, 6,01,100 options were cancelled and 6,04,860 options were exercised. As of 31st March, 2010, 26,33,500 

options were outstanding and are due for exercise on the following dates: 

ESOS’ 2003 

Date 

Number of Options 

April 27, 2010 95,200 

May 22, 2010 14,500 

May 29, 2010 62,300 

July 4, 2010 6,000 

July 9, 2010 9,000 

August 14, 2010 64,800 

August 22, 2010 46,800 

September 16, 2010 49,800 

October 9, 2010 13,600 

October 12, 2010 3,600 

November 8, 2010 92,000 

December 9, 2010 1,11,150 

January 9, 2011 68,100 

January 24, 2011 75,800 

February 5, 2011 2,34,850 

February 16, 2011 40,000 

March 21, 2011 1,15,800 

April 27, 2011 88,800 

May 22, 2011 10,000 

July 9, 2011 18,000 

July 14, 2011 13,950 

August 14, 2011 54,000 

ESOS’ 2003 

Date 

Number of Options 

August 22, 2011 46,800 

October 9, 2011 27,200 

October 12, 2011 2,400 

December 9, 2011 1,11,150 

January 9, 2012 68,100 

February 5, 2012 2,91,850 

February 25, 2012 9,500 

March 21, 2012 77,200 

July 9, 2012 27,000 

July 14, 2012 27,900 

August 22, 2012 62,400 

October 9, 2012 40,800 

December 9, 2012 1,48,200 

January 9, 2013 90,800 

February 5, 2013 17,400 

February 25, 2013 19,000 

July 9, 2013 36,000 

July 14, 2013 41,850 

October 9, 2013 54,400 

February 5, 2014 23,200 

February 25, 2014 28,500 

July 14, 2014 55,800 

February 25, 2015 38,000 

On exercising the convertible options so granted under the ESOS of the Company, the paid-up equity share capital of the 

company will increase by a like number of shares. 


B) The company had issued 20,000 Zero Coupon Foreign Currency Convertible Bonds of USD 1000 each. 

i. Convertible at the option of the bondholder at any time on or after 28th March, 2005 but prior to the close of business 

on 2nd January, 2010 at a fixed exchange rate of Rs. 43.66 per 1 USD and price of Rs. 215.5985(post adjustment for bonus 

and split) per share of Re. 1 each. 

ii. 

iii. 

Redeemable in whole but not in part at the option of the company on or after 15th February, 2008 if closing price of the 


given was at least 130% of the applicable Early Redemption Amount divided by the conversion ratio. 


earlier. The redemption premium of 33.74% payable on maturity of the bond if there is no conversion of the bond to be 

debited to Securities Premium account evenly over the period of 5 years from the date of issue of bonds. 

During the year, 1000 FCC bonds of USD 1000 each aggregating to USD 1 Million were redeemed on 16th February, 2010 

on maturity. As of 31st March, 2010, NIL FCC Bonds (2009-1000) of USD 1000 each are outstanding. 

C) The company had issued 50,000 Zero Coupon Foreign Currency Convertible Bonds of USD 1000 each. 

i. Convertible at the option of the bondholder at any time on or after 15th November, 2006 but prior to the close of 

business on 2nd January 2010 at a fixed exchange rate of Rs. 43.66 per 1 USD and the price of Rs. 253.11(post adjustment 

for split) per share of Re. 1/- each. 

ii. 

iii. 

Redeemable in whole but not in part at the option of the company on or after 15th February, 2009 if closing price of the 


given was at least 130% of the applicable Early Redemption Amount divided by the conversion ratio. 


earlier. The redemption premium of 34.07% payable on maturity of the bond if there is no conversion of the bond to be 

debited to Securities Premium account evenly over the period of 5 years from the date of issue of bonds. 

During the year, 5000 FCC Bonds of USD 1000 each aggregating to USD 5 Million were redeemed on 16th February, 2010 

on maturity. As of 31st March, 2010 NIL FCC Bonds (2009-5000) of USD 1000 each are outstanding. 

D) The company had issued 30,000 Zero Coupon Foreign Currency Convertible Bonds of USD 1000 each. 

i. Convertible at the option of bondholder at any time on or after 11th November, 2007 and prior to the close of business 

on 29th November, 2010 at a fixed exchange rate of Rs. 44.94 per 1 USD and the conversion price of Rs. 582.60 per share 

of Re. 1/- each. 

ii. 

iii. 

Redeemable in whole but not in part at the option of the Company, at any time on or after 10th January, 2010, if the 

closing price of shares (translated into US Dollars at the prevailing rate) for each of the 25 consecutive trading days 

immediately prior to the date upon which notice of redemption is given was at least 130% of the applicable early 

redemption amount divided by the applicable Conversion Ratio. 

Redeemable on 11th January, 2011 at 139.729% of its Principal amount if not redeemed or converted earlier. The 

redemption premium of 39.729% payable on maturity of the bond if there is no conversion of the bond to be debited to 

Securities Premium account evenly over the period of 5 years from the date of issue of bonds. 

As of 31st March, 2010, 30000 FCC bonds of USD 1000 each aggregating to USD 30 Million are outstanding. 

12. Electronic Clearing System (ECS): 

Shareholders are advised to opt for payment of dividend through ECS. The salient benefits of receiving dividend payment through 

ECS amongst others may be listed as below: 

a) There are no clearing charges in the hands of the investor/recipient, the same are borne by the Company; 

b) Risk as to fraudulent encashment of the dividend warrants, loss/interception of dividend warrants in transit, are eliminated; 

c) The facility ensures instant credit of the dividend amount in the desired account which to the recipient, means effortless and 

speedier transaction and hassles as to revalidation etc are done away with; 


d) Once the payment is made through ECS/NECS company issues intimation letters to the investors as to credit/payment of 

dividend, providing therein the details of the account and amount. Investors may download the ECS Mandate Form from the 

company’s website and send the same duly filled in to registrars for updating of records. 

13. Investor Helpdesk: for clarifications/assistance, if any, please contact: 

Corporate Office 

Registrars & Transfer Agents 

Persons to contact Mr. Sanjay Chowdhary Mr. M. R. V.Subrahmanyam 

Add: 

Glenmark Pharmaceuticals Ltd. 

Glenmark House, HDO Corporate Building, Wing A, B. D. 

Sawant Marg, Chakala, Off. Western Express Highway, 

Andheri (E), Mumbai - 400 099. 

Karvy Computershare Pvt. Ltd. 

Plot No. 17 to 24, Near Image Hospital, Vittalrao 

Nagar, Madhapur, Hyderabad - 500 081. 

Telephone (022) 40189999 (040) 23420818-828 

Fax No. (022) 40189986 (040) 23420814 

E-mail webmaster@glenmarkpharma.com mrvs@karvy.com 

Website: www.glenmarkpharma.com www.karvy.com 

Investor Redressal: complianceofficer@glenmarkpharma.com - 

Declaration regarding affirmation of Code of Conduct 

In terms of the requirements of the amended Clause 49 of the Listing Agreement, this is to confirm that all the members of the Board and 

the senior management personnel have affirmed compliance with the Code of Conduct for the year ended 31st March, 2010. 

Place: Mumbai 



Managing Director & CEO 


Certification by the Chief Executive Officer (CEO) and Chief Financial Officer (CFO) on Financial 

Statements of the Company 

We, Glenn Saldanha, Managing Director & Chief Executive Officer and R. V. Desai, Chief Financial Officer, of Glenmark Pharmaceuticals Ltd., 

certify that: 

(a) 

(b) 

(c) 

(d) 

We have reviewed financial statements and cash flow statement for the year and that to the best of our knowledge and belief: 

i) these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be 

misleading; 

ii) these statements together present a true and fair view of the company’s affairs and are in compliance with existing accounting 

standards, applicable laws and regulations. 

There are, to the best of our knowledge and belief, no transactions entered into by the company during the year which are fraudulent, 

illegal or violative of the company’s code of conduct. 

We accept responsibility for establishing and maintaining the internal controls for financial reporting and that we have evaluated the 

effectiveness of internal control systems of the company pertaining to financial reporting and we have disclosed to the auditors and 

the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps we 

have taken or propose to take to rectify these deficiencies. 

We have indicated to the auditors and the Audit Committee: 

i) significant changes in internal control over financial reporting during the year; 

ii) significant changes in accounting policies during the year and that the same have been disclosed in the notes to the financial 

statements: 

iii) during the year there were no instances of fraud which we have become aware. The management and its employees have a 

significant role in the Company’s internal control system. 


Managing Director & Chief Executive Officer 

Place: Mumbai 


R. V. Desai 

Chief Financial Officer 


Certificate on Corporate Governance 

To the Members of: 

GLENMARK PHARMACEUTICALS LIMITED 

We have reviewed the implementation of Corporate Governance procedures by Glenmark Pharmaceuticals Limited during the year ended 

31st March, 2010, with the relevant records and documents maintained by the Company, furnished to us for our review and report on 

Corporate Governance as approved by the Board of Directors. 

The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination was limited to a review 

of procedures and implementation thereof, adopted by the Company for ensuring the compliances of the conditions of Corporate 

Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company. 

In our opinion and to the best of our information and explanations given to us, we certify that the Company has complied with the 

conditions of Corporate Governance as stipulated in the Listing Agreement. 

On the basis of our review and according to the information and explanations given to us, the conditions of Corporate Governance as 

stipulated in Clause 49 of the Listing Agreement(s) with the stock exchanges have been complied with in all material respect by the 

Company and that no investor grievance is pending for a period exceeding one month against the Company as per the records maintained 

by the Shareholders/Investors Grievance Committee. 

We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness 

with which the management has conducted the affairs of the Company. 

For and on behalf of 

S. S. Rauthan & Associates 

Company Secretaries 

Place : Mumbai 

Date : 9th August, 2010. 

Surjan Singh Rauthan 

Proprietor 

M. No. - FCS-4807 

COP-3233 


Auditors’ Report 

To the Members of 

Glenmark Pharmaceuticals Limited 

1. We have audited the attached Balance Sheet of Glenmark Pharmaceuticals Limited (the “Company”) as at 31st March, 2010, and the 

related Profit and Loss Account and Cash Flow Statement for the year ended on that date annexed thereto, which we have signed 

under reference to this report. These financial statements are the responsibility of the Company’s Management. Our responsibility is 

to express an opinion on these financial statements based on our audit. 

2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan 

and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An 

audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also 

includes assessing the accounting principles used and significant estimates made by Management, as well as evaluating the overall 

financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 

3. As required by the Companies (Auditor’s Report) Order, 2003, as amended by the Companies (Auditor’s Report) (Amendment) Order, 

2004 (together the “Order”), issued by the Central Government of India in terms of sub-section (4A) of Section 227 of ‘The Companies 

Act, 1956’ of India (the ‘Act’) and on the basis of such checks of the books and records of the Company as we considered appropriate 

and according to the information and explanations given to us, we give in the Annexure a statement on the matters specified in 

paragraphs 4 and 5 of the Order. 

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

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the 

purposes of our audit; 

In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our 

examination of those books; 

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

of account; 

In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the 

accounting standards referred to in sub-section (3C) of Section 211 of the Act; 

On the basis of written representations received from the directors, as on 31st March, 2010 and taken on record by the Board 

of Directors, none of the directors is disqualified as on 31st March, 2010 from being appointed as a director in terms of clause 

(g) of sub-section (1) of Section 274 of the Act; 

In our opinion and to the best of our information and according to the explanations given to us, the said financial statements 

together with the notes thereon and attached thereto give, in the prescribed manner, the information required by the Act, and 

give a true and fair view in conformity with the accounting principles generally accepted in India: 

(i) in the case of the Balance Sheet, of the state of affairs of the company as at 31st March, 2010; 

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

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




Partha Ghosh 

Partner 


Place: Mumbai 



ANNEXURE TO AUDITORS’ REPORT 

Referred to in paragraph 3 of the Auditors’ Report of even date to the members of Glenmark Pharmaceuticals Limited on the financial 

statements for the year ended 31st March, 2010 

1. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed 

assets. 

(b) 

(c) 

The fixed assets are physically verified by the Management according to a phased programme designed to cover all the items 

over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its 

assets. Pursuant to the programme, a portion of the fixed assets has been physically verified by the Management during the 

year and no material discrepancies between the book records and the physical inventory have been noticed. 

In our opinion and according to the information and explanations given to us, a substantial part of fixed assets has not been 

disposed off by the Company during the year. 

2. (a) The inventory (excluding stocks with third parties) has been physically verified by the Management during the year. In respect 

of inventory lying with third parties, these have substantially been confirmed by them. In our opinion, the frequency of 

verification is reasonable. 

(b) 

(c) 

In our opinion, the procedures of physical verification of inventory followed by the Management are reasonable and adequate 

in relation to the size of the Company and the nature of its business. 

On the basis of our examination of the inventory records, in our opinion, the Company is maintaining proper records of 

inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material. 

3. (a) The Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register 

maintained under Section 301 of the Act. 

(b) 

The Company has not taken any loans, secured or unsecured, from companies, firms or other parties covered in the register 

maintained under Section 301 of the Act. 

4. In our opinion and according to the information and explanations given to us, there is an adequate internal control system 

commensurate with the size of the Company and the nature of its business for the purchase of inventory, fixed assets and for the 

sale of goods and services. Further, on the basis of our examination of the books and records of the Company, and according to the 

information and explanations given to us, we have neither come across nor have been informed of any continuing failure to correct 

major weaknesses in the aforesaid internal control system. 

5. According to the information and explanations given to us, there have been no contracts or arrangements referred to in Section 301 

of the Act during the year to be entered in the register required to be maintained under that Section. Accordingly, the question of 

commenting on transactions made in pursuance of such contracts or arrangements does not arise. 

6. The Company has not accepted any deposits from the public within the meaning of Sections 58A and 58AA of the Act and the rules 

framed there under. 

7. In our opinion, the Company has an internal audit system commensurate with its size and nature of its business. 

8. We have broadly reviewed the books of account maintained by the Company in respect of products where, pursuant to the Rules 

made by the Central Government of India, the maintenance of cost records has been prescribed under clause (d) of sub-section (1) of 

Section 209 of the Act, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. 

We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete. 

9. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the 

Company is generally regular in depositing the undisputed statutory dues including provident fund, investor education and 

protection fund, employees’ state insurance, income-tax, sales-tax, wealth-tax, service tax, customs duty, excise duty, cess and 

other material statutory dues as applicable with the appropriate authorities. 

(b) 

According to the information and explanations given to us and the records of the Company examined by us, there are no dues 

of income-tax, wealth-tax, service-tax, customs duty and cess which have not been deposited on account of any dispute. 

The particulars of dues of sales-tax and excise duty as at 31st March, 2010 which have not been deposited on account of a 

dispute, are as follows: 

Name of the statute 

Nature of 

dues 

Amount* 

(Rs. lakhs) 

Period to which 

the amount relates 

Forum where the dispute is 

pending 

The Central Excise Act, 1944 Excise Duty 247.02 2002 to 2006 The Central Excise and Service Tax 

Appellate Tribunal 

The Gujarat Sales Tax Act, 1969/The 

Central Sales Act, 1956 (Gujarat) 

Sales Tax 20.64 2004 - 2005 Deputy Commissioner (CT) Appeals 

* Net of amount deposited under protest 


10. The Company has no accumulated losses as at 31st March, 2010 and it has not incurred any cash losses in the financial year ended on 

that date or in the immediately preceding financial year. 

11. According to the records of the Company examined by us and the information and explanation given to us, the Company has not 

defaulted in repayment of dues to any financial institution or bank as at the balance sheet date. 

12. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other 

securities. 

13. The provisions of any special statute applicable to chit fund/nidhi/mutual benefit fund/societies are not applicable to the Company. 

14. In our opinion, the Company is not a dealer or trader in shares, securities, debentures and other investments. 

15. In our opinion and according to the information and explanations given to us, the terms and conditions of the guarantees given by 

the Company, for loans taken by others from banks or financial institutions during the year, are not prejudicial to the interest of the 

Company. 

16. In our opinion, and according to the information and explanations given to us, on an overall basis, the term loans have been applied 

for the purposes for which they were obtained. 

17. On the basis of an overall examination of the balance sheet of the Company, in our opinion and according to the information and 

explanations given to us, there are no funds raised on a short-term basis which have been used for long-term investment. 

18. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under 

Section 301 of the Act during the year. 

19. The Company has not issued any debentures. 

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

21. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted 

auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance 

of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the Management. 

Place: Mumbai 





Partha Ghosh 

Partner 



Balance Sheet 

Schedules 

As at 


Rs. in (‘000s) 

As at 


I. SOURCES OF FUNDS 

1. SHAREHOLDERS' FUNDS 

a) Capital 1 269,838 250,520 

b) Reserves and Surplus 2 17,464,316 12,049,185 

17,734,154 12,299,705 

2. LOAN FUNDS 

a) Secured Loans 3 486,403 1,122,123 

b) Unsecured Loans 4 7,111,150 9,536,950 

7,597,553 10,659,073 

3. DEFERRED TAX LIABILITY 5 327,713 411,232 

TOTAL 25,659,420 23,370,010 

II. APPLICATION OF FUNDS 

1. FIXED ASSETS 6 

a) Gross Block 3,086,286 2,704,814 

b) Less: Depreciation 1,182,210 976,745 

c) Net Block 1,904,076 1,728,069 

d) Capital Work-in-progress 468,830 324,493 

2,372,906 2,052,562 

2. INVESTMENTS 7 9,929,191 2,376,317 

3. DEFERRED TAX ASSETS 8 96,727 88,060 

4. CURRENT ASSETS, LOANS AND ADVANCES 

a) Inventories 9 1,503,976 1,303,143 

b) Sundry Debtors 10 3,300,915 4,098,190 

c) Cash and Bank Balances 11 50,772 116,877 

d) Loans and Advances 12 10,481,709 15,726,828 

15,337,372 21,245,038 

LESS: CURRENT LIABILITIES AND PROVISIONS 

a) Current Liabilities 13 1,902,857 2,232,555 

b) Provisions 14 173,919 159,412 

2,076,776 2,391,967 

NET CURRENT ASSETS 13,260,596 18,853,071 

TOTAL 25,659,420 23,370,010 

NOTES TO THE FINANCIAL STATEMENTS 21 

Schedules referred to above and notes attached there to form an integral part of the Balance Sheet. 

This is the Balance Sheet referred to in our report of even date. 








Place: Mumbai 





Profit and Loss Account 

Schedules 

Year ended 


Rs. in (‘000s) 

Year ended 


INCOME 

Sales and Operating Income 15 10,296,868 8,661,724 

Other Income 16 91,897 994,923 

10,388,765 9,656,647 

EXPENDITURE 

Cost of Sales 17 3,730,510 3,055,159 

Selling and Operating Expenses 18 4,473,195 2,880,774 

Depreciation 6 212,778 191,045 

Interest (net) 19 301,584 551,386 

Research and Development Expenses 20 460,560 514,584 

9,178,627 7,192,948 

Profit before Tax and Exceptional items 1,210,138 2,463,699 

Exceptional Item - 2,980 

PROFIT BEFORE TAX 1,210,138 2,460,719 

Provision for Taxation [Refer Note 1(xi) and 10 of Schedule 21] 

- Current Year [includes wealth tax provision Rs. 200 (Prev. Year – Rs.275)] 247,487 272,275 

- MAT Credit (Entitlement)/Utilisation (229,795) 557,518 

- Deferred Tax (92,186) (632,382) 

- Fringe Benefit Tax - 74,748 

- Prior Period Tax - 9,297 

NET PROFIT AFTER TAX 1,284,632 2,179,263 

Balance Profit Brought Forward 7,480,978 5,636,879 

NET PROFIT AVAILABLE FOR APPROPRIATION 8,765,610 7,816,142 

Proposed Dividend on Equity Shares 107,935 100,208 

Tax on Proposed Dividend on Equity Shares 17,927 17,030 

Residual Dividend and Dividend Tax 163 - 

Transfer to General Reserve 128,463 217,926 

BALANCE CARRIED TO BALANCE SHEET 8,511,122 7,480,978 

Earnings Per Share (Rs.) [Refer Note 5 of Schedule 21] 

Basic 4.93 8.72 

Diluted 4.92 8.54 

Face Value Per Share 1.00 1.00 

NOTES TO THE FINANCIAL STATEMENTS 21 


Profit and Loss Account. 

This is the Profit and Loss Account referred to in our report of even date. 








Place: Mumbai 





Cash Flow Statement 

Year ended 


Rs. in (‘000s) 

Year ended 


A. CASH FLOW FROM OPERATING ACTIVITIES: 

Net Profit before Tax 1,210,138 2,460,719 

Adjustments for: 

Depreciation 212,778 191,045 

Interest Expense 996,645 948,134 

Interest Income (695,061) (396,748) 

Income from Investment - Dividends (75) (38) 

(Profit)/Loss on Fixed Assets sold 9,112 (4,102) 

Provision for Doubtful Advances written back (700) - 

Provision for Bad & Doubtful Debts 17,500 30,000 

Provision for Gratuity & Leave Encashment 34,629 45,822 

Exceptional Item - 2,980 

Unrealised Foreign Exchange (Gain)/Loss 1,192,324 (744,988) 

Operating Profit Before Working Capital Changes 2,977,290 2,532,824 

Adjustments for changes in working capital: 

- (Increase)/Decrease in Sundry Debtors 585,198 (1,173,745) 

- (Increase)/Decrease in Other Receivables 7,225,571 (436,075) 

- (Increase) in Inventories (200,833) (177,893) 

- Increase/(Decrease) in Trade and Other Payables (392,699) 642,603 

Cash Generated from Operations 10,194,527 1,387,714 

- Taxes (Paid) (Net of Tax Deducted at Source) (362,878) (447,125) 

Net Cash from Operating Activities 9,831,649 940,589 

B. CASH FLOW FROM INVESTING ACTIVITIES: 

Purchase of Fixed Assets (463,034) (362,003) 

Capital Work-in-Progress (144,337) 71,423 

Proceeds from Sale of Fixed Assets 64,562 90,187 

Purchase of Investments (7,542,575) (419,613) 

Loans & Advances to Subsidiary Companies (2,564,114) (5,346,365) 

Interest Received 647,208 74,890 

Dividend Received 75 38 

Net Cash used in Investing Activities (10,002,215) (5,891,443) 


Cash Flow Statement 

Year ended 


Rs. in (‘000s) 

Year ended 


C. CASH FLOW FROM FINANCING ACTIVITIES: 

Proceeds from Fresh Issue of 

Share Capital (including Securities Premium) 4,142,780 350,586 

Proceeds/(Repayment) of Long Term Borrowings 4,365,679 (791) 

Proceeds/(Repayment) of Short Term Borrowings (6,426,451) 6,176,352 

Proceeds from Working Capital Facilities movement (464,470) (634,150) 

Redemption of FCCB (279,960) - 

FCCB Premium paid on redemption including TDS (105,288) - 

Interest Paid (1,009,833) (935,747) 

Dividend Paid (100,966) (72) 

Dividend Tax Paid (17,030) - 

Net Cash from Financing Activities 104,461 4,956,178 

Net Increase/(Decrease) in Cash & Cash Equivalents (66,105) 5,324 

Cash and Cash Equivalents as at 31st March, 2009 116,877 111,751 

Cash balance transferred to Glenmark Generics Ltd. - (198) 

Cash and Cash Equivalents as at 31st March, 2010 50,772 116,877 

Cash and Cash Equivalents Comprise: 

Cash 1,710 1,045 

Deposits with Scheduled banks 14,725 37,382 

Deposits with Non-scheduled Banks 113 126 

Balance with Scheduled Banks 33,022 76,173 

Balance with Non-scheduled Banks 1,202 2,151 

50,772 116,877 

Notes: 

1. The Cash Flow Statement has been prepared under the "Indirect Method" as set out in Accounting Standard - 3 on Cash Flow 

Statements issued by the Institute of Chartered Accountants of India. 

2. Cash and cash equivalents includes Rs. 3,122 which are not available for use by the Company. (Refer Schedule 13 to the Financial 

Statements) 

3. Figures in bracket indicate Cash outgo. 

This is the Cash Flow Statement referred to in our report of even date. 








Place: Mumbai 





Schedules annexed to and forming part of the Balance Sheet 

As at 


Rs. in (‘000s) 

As at 


1. CAPITAL 

Authorised 


4,000,000 (2009 – 4,000,000) Cumulative Redeemable non-convertible preference shares 

of Rs. 100 each 

400,000 400,000 

Issued, Subscribed and Paid-up 


TOTAL 269,838 250,520 

Notes: 

1. During the year ended 31st March, 2010 the Company, pursuant to Employee Stock Option Scheme 2003, has granted 236,500 

(2009 - 2,305,500) options at market price as defined in SEBI (ESOS) Guidelines and cancelled 601,100 (2009 - 1,697,500) options. 

2. During the year 604,860 (2009 - 500,300) options were converted into Equity Shares under the Employee Stock Option Scheme, 

2003. As at 31st March, 2010, 2,633,500 options were outstanding under Employee Stock Option Scheme, 2003. On exercise of the 

options so granted under Employee Stock Option Scheme 2003, the paid-up Equity Share Capital of the Company will increase by a 


3. During the year, Nil (2009 - 7,500) Zero Coupon Foreign Currency Convertible Bonds (FCCB) of USD 1,000 each aggregating USD Nil 

(2009 - USD 7.5 million) were converted into Nil (2009 - 1,293,706) equity shares of Re. 1 each. As at 31st March, 2010, FCC Bonds 

amounting to USD 30 million were outstanding. 

4. On 18th September, 2009 the Company allotted 18,712,935 Equity Shares of Re. 1 each at a premium of Rs. 220/- per share to Qualified 

Institutional Buyers pursuant to chapter VIII of the Securities Exchange Board of India (Issue of Capital and Disclosure Requirement) 

Regulation 2009. 

5. Of the above 158,371,140 (2009 - 158,371,140) Equity Shares of Re. 1 each are allotted as fully paid-up Bonus Shares by Capitalisation 

of Reserves. 

Rs. in (‘000s) 

As at 


As at 


2. RESERVES AND SURPLUS 

Securities Premium Account 


Add: Premium on Issue of Shares pursuant to Conversion of ESOP 36,659 22,636 

Add: Premium on Issue of Shares to Qualified Institutional Buyers 4,116,846 - 

Less: Issue expenses on issue of shares to QIBs 65,829 - 

Add: Premium on Issue of Shares pursuant to conversion of FCC Bonds - 326,156 

Add: Writeback of redemption premium for FCC Bonds converted during the year - 66,115 

Less: Redemption premium of FCC Bonds 149,623 127,296 

Add: Tax impact on FCCB redemption premium 35,787 - 


General Reserve 


Add: Transferred from Profit and Loss Account 128,463 217,926 

Add: Transfer to Fixed assets - 3,915 

Less: Transfer from Foreign Currency Monetary Item Translation Difference Account - 91,649 


Foreign Currency Monetary Item Translation Difference Account 

Balance at the beginning of the year (246,476) - 

Add: FCC Bond and ECB loan unrealised gain/(loss) as per notification issued by 

256,318 (391,995) 

Ministry of Corporate Affairs 

Amortisation of Foreign Currency Monetary Item Translation Difference 26,366 145,519 

Closing Balance 36,208 (246,476) 

Capital Redemption Reserve 200,000 200,000 

Capital Reserve 1,000 1,000 

Profit and Loss Account Balance 8,511,122 7,480,978 

TOTAL 17,464,316 12,049,185 



Notes 

As at 


Rs. in (‘000s) 

As at 


3. SECURED LOANS 

From Banks 

Term Loan 1 338,550 509,800 

Working Capital Facilities 2 147,853 612,323 

TOTAL 486,403 1,122,123 

Notes: 

1. Term loan is secured by way of exclusive charge as the case may be, at certain locations, on Company's fixed assets both present and 

future. 

2. Working Capital Facilities is secured by hypothecation of Stocks of raw materials, packing materials, finished goods, work in process, 

receivables and equitable mortgage on fixed assets at the manufacturing facility at Nasik and Research and Development centre at 

Sinnar, Nasik. 

Rs. in (‘000s) 

As at 


As at 


4. UNSECURED LOANS 

Short Term Loans from Banks 1,221,727 7,656,138 

Other Loans from Banks 4,481,731 - 

Foreign Currency Convertible Bonds (due within one year) [Refer Note 15 of Schedule 21] 1,354,200 1,835,280 

Security Deposit 53,492 45,532 

TOTAL 7,111,150 9,536,950 

5. DEFERRED TAX LIABILITY [Refer Note 1(xi) of Schedule 21] 

Depreciation 309,904 297,339 

FCC Bond/ECB Loan revaluation 17,809 113,893 

TOTAL 327,713 411,232 

6. FIXED ASSETS [Refer Note 1(ii), 1(iii), 1(iv), 1(v)(b), 1(x) and 1(xii) of Schedule 21] 

As at 

31st March, 

2009 

GROSS BLOCK DEPRECIATION/AMORTISATION NET BLOCK 

Additions Deductions 

during the 

year 

As at 

31st March, 

2010 

As at 

31st March, 

2009 

For the 

year 

On 

Deductions 

As at 

31st March, 

2010 

As at 

31st March, 

2010 

Rs. in (‘000s) 

As at 

31st March, 

2009 

Tangible assets 

Freehold Land 36,731 11,737 - 48,468 - - - - 48,468 36,731 

Leasehold Land 80,894 4,758 (54,400) 31,252 2,414 967 (1,098) 2,283 28,969 78,480 

Factory Buildings 351,416 114,889 - 466,305 55,484 15,298 - 70,782 395,523 295,932 

Other Buildings & 

Premises 201,122 5,822 - 206,944 24,273 3,340 - 27,613 179,331 176,849 

Plant and Machinery 240,266 56,861 (1,661) 295,466 48,909 12,620 (46) 61,483 233,983 191,357 

Furniture and Fittings 267,171 37,712 - 304,883 132,260 29,677 - 161,937 142,946 134,911 

Equipments 994,179 190,295 (2,518) 1,181,956 361,991 79,988 (1,689) 440,290 741,666 632,188 

Vehicles 40,818 2,037 (6,716) 36,139 17,033 5,543 (4,329) 18,247 17,892 23,785 

Intangible assets 

Computer software 59,496 39,212 (16,556) 82,152 22,866 13,808 (151) 36,523 45,629 36,630 

Brands 432,721 - - 432,721 311,515 51,537 - 363,052 69,669 121,206 

TOTAL 2,704,814 463,323 (81,851) 3,086,286 976,745 212,778 (7,313) 1,182,210 1,904,076 1,728,069 

Previous Year 4,837,377 408,920 (2,541,483) 2,704,814 1,162,046 191,045 (376,346) 976,745 - - 

Capital Work-in-progress 468,830 324,493 

Notes: 

1. Addition to Fixed assets includes Capital expenditure of Rs. 57,978 [2009 - Rs. 104,456] incurred at approved R & D centres. 

2. Addition to assets include Rs. 7,499 (2009 - Rs. 5,400) being borrowing costs. 



As at 


Rs. in (‘000s) 

As at 


7. INVESTMENTS [Refer Note 1(vi) and 14(e) of Schedule 21] 

Long Term Investments - At Cost - Fully Paid 

Quoted - non-trade 

Equity shares 

9,000 (2009 – 9,000) Bank of India of Rs. 10 each [Market Value Rs. 3,067 (2009 – Rs. 1,979)] 405 405 

1,209 (2009 – 1,209) IDBI Bank Limited of Rs. 10 each [Market Value Rs. 139 (2009 – Rs. 55)] 34 34 

439 439 

Investment in Government Securities 

National Savings Certificate - Sixth Issue 22 22 

Unquoted - non-trade 

1 (2009 – 1) Time Share of Dalmia Resorts Limited 20 20 

1 (2009 – 1) Equity Share of Esquados 340,000 of Glenmark Pharmaceutica Limitada., 

48 48 

Lisbon (Portugal) 

213,032 (2009 - 213,032) Equity Shares of Bharuch Eco-Aqua Infrastructure Limited of 

2,130 2,130 

Rs. 10 each, fully paid-up 

1,350,000 (2009 - 1,350,000) 7% cumulative preference shares of Rs. 100 each fully paid-up 

135,000 135,000 

of Marksans Pharma Ltd. 

Investment with Napo Pharmaceuticals Inc. [1,176,471 (2009 - 1,176,471) Preferred shares 

43,560 43,560 

of USD 0.85 each] 

Investment in Joint Venture - Glenmark Pharmaceuticals (Thailand) Co. Ltd. [9,800 Ordinary 

2,508 1,348 

shares of THB 100 each and 16,415 Ordinary Shares of THB 100 each (Paid-up 50 THB) & 2 

Preference shares of THB 100 each (2009 - 9,800 Ordinary shares & 2 Preference shares) of 

THB 100 each] 

Investments in Subsidiary Companies - Unquoted - non-trade 

a) Glenmark Exports Limited, India 18,500 18,500 

[1,850,020 (2009 - 1,850,020) Equity Shares of Rs. 10 each] 

b) Glenmark Impex LLC, Russia 722,279 432,287 

[Roubles 455,701,648 (2009 - 266,741,126)] 

c) Glenmark Philippines Inc., Philippines 116,703 87,899 

[640,490 (2009 - 497,162) shares of Pesos 200 each] 

d) Glenmark Pharmaceuticals (Nigeria) Ltd., Nigeria 86,609 51,335 

[267,533,341 (2009 - 157,115,916) shares of Naira 1 each] 

e) Glenmark Pharmaceuticals Malaysia Sdn. Bhd., Malaysia 15,286 13,977 

[1,200,861 (2009 - 1,107,955) shares of RM 1 each] 

f) Glenmark Generics Ltd, India [Refer Note 4 of Schedule 21] 7,868,000 717,000 

[143,210,000 (2009 - 71,700,000) shares of Rs. 10 each] 

g) Glenmark Holding S. A., Switzerland 797,113 797,113 

[22,520,000 (2009 - 22,520,000) shares of CHF 1 each] 

h) Glenmark Pharmaceuticals (Australia) Pty. Ltd., Australia 65,047 60,734 

[1,976,002 (2009 - 1,861,002) shares of AUD 1 each] 

i) Glenmark Pharmaceuticals Egypt S.A.E., Egypt 42,940 1,980 

[4,975,154 (2009 - 250,000) shares of EGP 1 each] 

j) Glenmark Pharmaceuticals FZE (U.A.E.) 12,925 12,925 

[1 (2009 - 1) shares of AED 1,000,000 each] 

k) Glenmark Dominicana, SRL, Dominican Republic* 62 - 

[100 (2009 - 50) shares of RD 1000 each] 

9,928,752 2,375,878 

TOTAL 9,929,191 2,376,317 

Aggregate book value of Investments 

- Quoted [Market value Rs. 3,206 (2009 - Rs. 2,034)] 439 439 

- Unquoted 9,928,752 2,375,878 

TOTAL 9,929,191 2,376,317 

*denotes amount less than Rs. 1 ('000) 



Rs. in (‘000s) 

As at 


As at 


8. DEFERRED TAX ASSET [Refer Note 1(xi) of Schedule 21] 

Provision for Bad Debts and Doubtful Advances 68,017 62,306 

Others 28,710 25,754 

TOTAL 96,727 88,060 

9. INVENTORIES [Refer Note 1(vii) and 13(f) of Schedule 21] 

(As certified by the management) 

Raw Materials 523,450 370,141 

Packing Material 154,959 131,119 

Work-in-Process 182,197 72,468 

Stores and Spares 16,453 13,647 

Finished Goods 626,917 715,768 

TOTAL 1,503,976 1,303,143 

10. SUNDRY DEBTORS [Refer Note 14(c) of Schedule 21] 

Outstanding for more than six months 

Secured, considered good - - 


Unsecured, considered doubtful 176,098 158,598 

2,686,127 1,815,324 

Less: Provision for doubtful debts 176,098 158,598 

2,510,029 1,656,726 

Other debts - 

Secured, considered good - - 

Unsecured, considered good 790,886 2,441,464 

790,886 2,441,464 

TOTAL 3,300,915 4,098,190 

11. CASH AND BANK BALANCES 

Cash in hand 1,710 1,045 

Balances with Scheduled banks 


- Margin Money Account 14,725 37,382 

- EEFC Account 31 76 

Balances with Non-Scheduled Banks 


- Deposit Accounts 113 126 

TOTAL 50,772 116,877 

The balances in the margin money accounts are given as security against guarantees issued by banks on behalf of the Company. 

Bank balances with Non-Scheduled banks in current account includes: 

Rs. in (‘000s) 

As at 31st 

March, 2010 

Maximum amount outstanding 

during the year 2009-2010 

As at 31st 

March, 2009 


during the year 2008-2009 

Bank for Foreign Trade of Vietnam 58 404 92 1,502 

Imperial Bank 66 225 116 170 

Foreign Trade Bank of Cambodia 335 484 163 383 

State Export-Import Bank of Ukraine 32 1,826 183 2,395 

Taib Kazak Bank 461 948 64 838 

Alp Jamol Bank USD A/c 224 723 499 1,240 

Alp Jamol Bank Local Currency A/c 7 522 40 585 

HSBC Singapore USD 19 30 30 143 

Barclays Bank,New Maadi Branch - 345 346 800 

Bank of Kazakhstan – USD A/c - 1,222 618 775 

1,202 2,151 

Bank balances with Non-Schedule Banks in Deposit account includes: 

HSBC Call Deposit USD 113 126 126 126 



As at 


Rs. in (‘000s) 

As at 


12. LOANS AND ADVANCES (unsecured, considered good unless otherwise stated) 

Advances recoverable in cash or kind or for value to be received 

Considered good 375,370 576,056 

Considered doubtful 29,100 29,800 

404,470 605,856 

Less: Provision for Doubtful advances (29,100) (29,800) 

375,370 576,056 

Receivable from Glenmark Generics Ltd. 770,500 7,598,996 

Advances to subsidiaries [Refer Note 14(a) and (b) of Schedule 21] 8,508,090 6,649,554 

Share Application Money - pending allotment 

- [Egyptian Pound Nil (2009 - 1,158,308)] Glenmark Pharmaceuticals Egypt (S.A.E.) - 10,299 

Advance to Vendors 104,275 432,999 

Advance tax [net of provision of Rs. 1,524,636 (2009 - Rs. 1,313,135)] 204,699 91,382 

MAT Credit Entitlement [Refer Note 10 of Schedule 21] 232,304 2,509 

Balance with Excise Authorities 163,809 238,609 

Deposits 122,662 126,424 

TOTAL 10,481,709 15,726,828 

13. CURRENT LIABILITIES 

Acceptances 494,716 - 

Sundry creditors [Refer Note 8 of Schedule 21] 

- Total outstanding dues to Micro enterprises and small enterprises - 26,524 

- Total outstanding dues to creditors other than Micro enterprises and small enterprises 791,803 1,463,950 

Investor Education and Protection Fund shall be credited by 

- Unclaimed Dividend 3,122 3,717 

[There are no amounts due and outstanding to be credited to Investor Education 

and Protection Fund] 

Advances from Customer - 46,648 

Payable to Subsidiaries [Refer Note 14(d) of Schedule 21] 6,486 120,868 

Other Liabilities 157,073 152,337 

Interest accrued but not due 449,657 418,511 

TOTAL 1,902,857 2,232,555 

14. PROVISIONS 

Proposed Dividend 107,935 100,208 

Tax payable on Proposed Dividend 17,927 17,030 

Provision for Wealth Tax 252 276 

Provision for Fringe Benefit Tax - 2,050 

Provident Fund Scheme payable 7,543 7,288 

Provision for Gratuity and leave encashment [Refer Note 11 of Schedule 21] 40,262 32,560 

TOTAL 173,919 159,412 


Schedules annexed to and forming part of the Profit and Loss Account 

Year ended 


Rs. in (‘000s) 

Year ended 


15. SALES AND OPERATING INCOME [Refer Note 1(ix) and 13(b) of Schedule 21] 

Sale of goods* 10,281,576 8,647,288 

Income from services 15,292 14,436 

TOTAL 10,296,868 8,661,724 

* includes Sales Tax and Excise Duty aggregating Rs. 388,827 (2009 – Rs. 311,401) 

and Rs. 77,763 (2009 – Rs. 108,810) respectively. 

16. OTHER INCOME 

Dividend received on non trade Investments 75 38 

Exchange gain - 867,485 

Export Incentive 48,574 76,200 

Profit on Sale of Fixed Assets - 4,102 

Provision for Doubtful Advances Written back 700 - 

Guarantee Commission 26,062 29,135 

Miscellaneous income 16,486 17,963 

TOTAL 91,897 994,923 

17. COST OF SALES 

Salary, wages, bonus and allowances 143,388 127,402 


Labour charges 148,249 152,784 

Consumption of raw and packing materials [Refer Note 13(d) and (e) of Schedule 21] 2,002,785 1,678,637 

Purchase of Traded goods [Refer note 13(c) of Schedule 21] 841,496 687,227 

Excise Duty 75,924 116,132 

Sales Tax 388,827 311,401 

Power, fuel and water charges 61,239 54,783 

Consumption of stores and spares [Refer note 13(e) of Schedule 21] 42,272 43,013 

Repairs and maintenance - Plant and Machinery 21,087 14,785 

Repairs and maintenance - Building 5,056 2,809 

Rent 1,650 - 

Other manufacturing expenses 14,363 13,568 

(Increase)/Decrease in inventory (20,878) (151,620) 

TOTAL 3,730,510 3,055,159 

18. SELLING AND OPERATING EXPENSES 

Salary, bonus and allowances 888,179 818,658 



Directors' salaries, allowances and commission [Refer Note 12 of Schedule 21] 36,613 95,709 


Sales promotion expenses 919,629 556,614 

Export commission 34,368 21,360 

Commission on sales 44,864 29,590 


Freight outward 165,391 169,819 

Telephone expenses 19,247 22,005 

Rates and taxes 7,520 6,721 

Provision for doubtful debts 17,500 30,000 



Rent 87,016 89,831 


Schedules annexed to and forming part of the Profit and Loss Account 

Year ended 


Rs. in (‘000s) 

Year ended 


18. SELLING AND OPERATING EXPENSES (Contd.) 

Repairs & Maintenance - Others 59,126 63,835 

Auditors' remuneration 

- Audit fees 4,800 4,200 

- Other matters 96 126 

- Out of pocket expenses 33 124 

Loss on sale of assets 9,112 - 

Exchange Loss 1,143,543 - 

Other operating expenses 343,169 327,003 

TOTAL 4,473,195 2,880,774 

19. INTEREST (Net) 

On term loans from bank 345,803 150,042 

On other loans from bank 650,842 798,092 

996,645 948,134 

Less: Interest Income 

On deposits with banks [tax deducted at source Rs. 247 (2009 - Rs. 653)] 10,258 3,111 

On Loans given to Subsidiaries 684,803 393,637 

695,061 396,748 

TOTAL 301,584 551,386 

20. RESEARCH AND DEVELOPMENT EXPENSES [Refer Note 1(x) of Schedule 21] 

Salary and other allowances 180,181 180,474 



Incentive and commission 24 9,290 

Consumable and Chemicals 140,888 166,241 


Repairs and maintenance - Building 182 131 

Repairs and maintenance - Others 25,060 17,925 


Other expenses 84,708 110,408 

TOTAL 460,560 514,584 


Schedules annexed to and forming part of the Financial Statements 

SCHEDULE 21 - NOTES TO THE FINANCIAL STATEMENTS 

1. SIGNIFICANT ACCOUNTING POLICIES 

i) Basis of Accounting 

The Financial Statements are prepared to comply in all material aspects with all the applicable accounting principles in India, 

the applicable Accounting Standards notified u/s 211(3C) of the Companies Act,1956 and the relevant provisions of the 

Companies Act,1956. 

ii) Fixed Assets (including Intangibles), Depreciation and Amortisation 

Fixed assets are stated at cost less accumulated depreciation and amortisation. The Company capitalises all costs relating 

to the acquisition and installation of fixed assets. Expenditure of revenue nature, incurred in setting up of new projects, is 

capitalised as an indirect cost towards construction of the fixed assets. 

Depreciation is provided using the straight line method, pro-rata to the period of use of assets, based on the useful lives of fixed 

assets as estimated by management, or at the rates specified in Schedule XIV of the Companies Act, 1956, whichever is higher. 

Brands/IP Rights are amortised from the month of products launch/commercial production, over the estimated economic life 

not exceeding 10 years. 

Fixed assets having aggregate cost of Rs. 5,000 or less are depreciated fully in the year of acquisition. 

The Company has estimated the useful life of its assets as follows: 

Category 

Estimated useful life (in years) 

Plant and Machinery 8 - 20 

Vehicles 5 - 6 

Equipments and Air conditioners 4 - 20 

Furniture and Fixtures 10 

Computer Software 5 

Brands 5 - 10 

Leasehold land and improvement is amortised over the period of lease. 

iii) Borrowing Costs 

Borrowing costs that are attributable to the acquisition and construction of a qualifying asset are capitalised as a part of the 

cost of the asset. Other borrowing costs are recognised as an expense in the year in which they are incurred. 

iv) Impairment of Assets 

The Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such 

indication exist, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the 

recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying 

amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the Profit and 

Loss Account. If at the Balance Sheet date there is an indication that if a previously assessed impairment loss no longer exist, 

the recoverable amount is reassessed and the asset is reflected at the recoverable amount. 

v) Foreign Currency Transactions 

a) Foreign currency transactions are recorded at the exchange rates prevailing on the date of such transactions. Monetary 

assets and liabilities as at the Balance Sheet date are translated at the rates of exchange prevailing at the date of the 

Balance Sheet. Gain/loss arising on account of differences in foreign exchange rates on settlement/translation of 

monetary assets and liabilities are recognised in the Profit and Loss Account. Non-monetary foreign currency items are 

carried at cost. 

b) Gain/loss on account of foreign exchange fluctuation in respect of liabilities in foreign currencies specific to acquisition 

of fixed assets are recognised in the Profit and Loss Account. 

vi) Investments 

Long-term investments are stated at cost. Provision, where necessary, is made to recognize a decline, other than temporary, in 

the value of the investments. 

vii) Inventories 

Inventories of finished goods, consumable store and spares are valued at cost or net realisable value, whichever is lower. Cost 

of raw materials and packing materials is ascertained on a first-in-first-out basis. Cost of work-in-process and finished goods 

include the cost of materials consumed, labour and manufacturing overheads. Excise and customs duty accrued on production 

or import of goods, as applicable, is included in the valuation of inventories. Net realisable value is the estimate of the selling 

price in the ordinary course of the business. 

viii) Employee Benefits 

Long-term Employee Benefits 

In case of Defined Contribution plans, the Company's contributions to these plans are charged to the Profit and Loss Account as 

incurred. Liability for Defined Benefit plans is provided on the basis of valuations, as at the Balance Sheet date, carried out by an 

independent actuary. The actuarial valuation method used for measuring the liability is the Projected Unit Credit method. The 

estimate of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors. 

The expected rate of return on plan assets is the Company's expectation of the average long-term rate of return expected 

on investments of the fund during the estimated term of the obligations. Plan assets are measured at fair value as at the 

Balance Sheet date. 



ix) Revenue Recognition 

The Company recognizes revenue on despatch of goods to customers. Revenues from services are recognized on completion 

of such services. Revenue from IP asset/Marketing rights is recognized on transfer of ownership/right to use in accordance with 

the terms of relevant agreements. Revenue from contract research being in the nature of product development activities is 

recognized as per the terms of the agreement. Revenues are recorded at invoice value, inclusive of excise duty and sales-tax, 

but net of returns and trade discounts. 

x) Research and Development 

Capital expenditure on Research and Development (R & D) is capitalised as fixed assets. Development cost relating to the new 

and improved product and/or process development is recognised as an intangible asset to the extent that it is expected that 

such asset will generate future economic benefits. Other research and development costs are expensed as incurred. 

xi) Taxation 

Current Tax 

Current tax is determined as the amount of tax payable in respect of taxable income for the year. 

Deferred Tax 

Deferred tax is recognised, subject to the consideration of prudence, on timing differences being the difference between 

taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent 

period. Deferred tax assets are not recognised on unabsorbed depreciation and carry forward of losses unless there is virtual 

certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. 

Deferred tax assets/liabilities recognised as above is after excluding the amounts, which are getting reversed during the tax 

holiday period. 

xii) Leases 

Finance Leases 

Assets acquired under finance lease are recognised as assets with corresponding liabilities in the Balance Sheet at the inception 

of the lease at amounts equal to lower of the fair value of the leased asset or at the present value of the minimum lease 

payments. These leased assets are depreciated in line with the Company’s policy on depreciation of fixed assets. The interest is 

allocated to periods during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the 

liability for each period. 

Operating Leases 

Lease rent in respect of assets taken on operating lease are charged to the Profit and Loss Account as per the terms of lease 

agreements. 

xiii) Employee Stock Option Schemes (ESOS) 

The Company accounts for compensation expense under the Employee Stock Option Schemes using the intrinsic value 

method as permitted by the Guidance Note on "Accounting for Employee Share-based Payments" issued by the Institute of 

Chartered Accountants of India. The difference between the market price and the exercise price as at the date of the grant is 

treated as compensation expense and charged over the vesting period. 

xiv) Provisions and Contingent Liabilities 

The Company recognises a provision when there is a present obligation as a result of a past event that probably requires an 

outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability 

is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of 

resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no 

provision or disclosure is made. 

2. As per the transitional provision given in the notification issued by Ministry of Corporate Affairs dated 31st March, 2009 the Company 

has opted for the option of adjusting the exchange difference on long-term foreign currency monetary items: 

i) To the cost of the assets acquired out of this foreign currency monetary item. During the year, Company has decapitalised 

exchange difference amounting to Rs. 105.46 lakhs on restatement of long-term loans used for acquiring the fixed assets. 

ii) To the Foreign Currency Monetary Item Translation Difference account. During the year, Company has transferred exchange 

gain of Rs. 2,563.18 lakhs on restatement of long-term loans. Accordingly, Proportionate amount of Rs. 263.66 lakhs is amortised 

and Depreciation charged of Rs. 17.04 lakhs for the year ended 31st March, 2010. Due to the above profit for the year is lower by 

Rs. 1,988.50 lakhs (net of tax). 

3. CONTINGENT LIABILITIES NOT PROVIDED FOR 

Rs. in (‘000s) 


(a) Bank Guarantees 20,768 21,671 

Disputed Income Tax/Excise Duty/Sales Tax 26,765 27,285 

Claims against the Company not acknowledged as debts (Refer Note i) 386 380 

Open letters of credit 5,274 - 

Sundry debtors factored with recourse option (Refer Note ii) 3,500,000 2,800,000 

Indemnity Bond 345,366 331,876 

Call money payable to Glenmark Pharmaceuticals (Thailand) Co. Ltd. 

(16,415 shares @ 50 THB per Ordinary Share) 1,149 - 

Corporate Guarantee (Refer Note iii) 8,283,012 7,974,112 

Corporate Guarantee (Refer Note iv) 1,218,780 1,376,460 



Notes: 

i) In respect of labour/industrial disputes. 

ii) The amount related to Credit facilities given by bank against debtors. 

iii) Corporate guarantee given on behalf of various subsidiaries : 

Citibank [Given on behalf of Glenmark Holding SA, Switzerland (GHSA)] 4,514,000 5,098,000 

ICICI Bank [Given on behalf of Glenmark Holding SA, Switzerland (GHSA)] 645,502 729,014 

HSBC Bank (Given on behalf of Glenmark Farmaceutica Ltda, Brazil) - 101,960 

Citi Bank (Given on behalf of Glenmark Pharmaceuticals S.R.L. Romania) 5,204 5,804 

ALD Automotive (Given on behalf of Glenmark Impex, L.L.C. Russia) 98,026 109,334 

ING Vysya Bank (Given on behalf of Glenmark Generics Ltd.) 430,000 430,000 

Central Bank of India (Given on behalf of Glenmark Generics Ltd., India) 1,500,000 1,500,000 

Citibank (Given on behalf of Glenmark Pharmaceutica Ltda., Brazil) 90,280 - 

Yes Bank Ltd. (Given on behalf of Glenmark Generics Ltd.) 1,000,000 - 

iv) The Company's subsidiary, Glenmark Generics Inc., U.S.A. (GGI) [formerly known as Glenmark Pharmaceuticals Inc., U.S.A. 

(GPI)] on 2nd June, 2006 has entered into an Agreement with Paul Royalty Fund Holdings II (PRF) pursuant to which, PRF 

will pay upto USD 27 million to GGI for the development and commercialization of certain products for the US market. 

Further, the Company has entered into a Master Services, License, Manufacturing and Supply Agreement with GGI to 

develop and manufacture the aforesaid products, and also issued a financial guarantee in favour of PRF for an amount 

not exceeding USD 27 million for the benefits under the said agreement. 

b) Estimated amount of contracts remaining to be executed on capital account, net of advances, not provided for as at 31st March, 

2010 aggregate Rs. 137,151 (2009 – Rs. 120,170). 

4. During the year, the Company subscribed to 71,510,000 equity shares for a consideration of Rs. 7,151,000 ('000) in its subsidiary 

Glenmark Generics Limited for the balance Business sale consideration. 

5. EARNINGS PER SHARE 

Basic earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders by the weighted 

average number of equity shares outstanding during the year. 

For the purpose of calculating diluted earnings per share, the weighted average number of shares outstanding are adjusted for the 

effects of all dilutive potential equity shares from the exercise of options on unissued share capital and on conversion of FCC Bonds. 

The calculations of earnings per share (basic and diluted) are based on the earnings and number of shares as computed below. 

Rs. in (‘000s) 

2009-2010 2008-2009 

Profit after tax for the financial year (attributable to equity shareholders) 1,284,632 2,179,263 

In (‘000s) 

Reconciliation of number of shares No. of Shares No. of Shares 

Weighted average number of shares: 

For basic earnings per share 260,759 250,025 

Add: 

Deemed exercise of options on unissued equity share capital and conversion of FCC Bonds 565 5,237 

For diluted earnings per share 261 ,324 255,262 

Earnings per share (nominal value Re. 1 each) Rs. Rs. 

Basic 4.93 8.72 

Diluted 4.92 8.54 

6. SEGMENT INFORMATION 

Business segments 

The Company is primarily engaged in a single segment business of formulations and is managed as one entity, for its various activities 

and manufacturing and marketing of pharmaceutical is governed by a similar set of risks and returns. 

Geographical segments 

In the view of the management, the Indian and export markets represent geographical segments. 

Sales by market – The following is the distribution of the Company's sale by geographical market: 

Rs. in (‘000s) 

2009-2010 2008-2009 

Geographical segment 

India 7,528,626 6,146,628 

Other than India* 2,768,242 2,515,096 

TOTAL 10,296,868 8,661,724 

* includes deemed exports aggregating Rs. Nil (2009 – Rs. 354,036) 



Assets and additions to fixed assets by geographical area – The following table shows the carrying amount of segment assets and 

additions to fixed assets by geographical area in which the assets are located: 

Rs. in (‘000s) 

India Others* India Others* 

2009-2010 2009-2010 2008-2009 2008-2009 

Carrying amount of segment assets 25,558,999 2,080,470 23,303,046 2,370,871 

Additions to fixed assets 463,323 - 408,920 - 

* Others represent receivables from debtors located outside India including those related to deemed exports and cash and bank 

balances of branches outside India. 

7. RELATED PARTY DISCLOSURES 

In accordance with the requirements of Accounting Standard - 18 "Related Party Disclosures", the names of the related parties where 

control exists and/or with whom transactions have taken place during the year and description of relationships, as identified and 

certified by the management are as follows: 

a) Parties where direct/indirect control exists 

i) Subsidiary Companies 

Glenmark Pharmaceuticals Europe Ltd., U.K. 

Glenmark Generics (Europe) Ltd., U.K. [formerly known as Glenmark Pharmaceuticals (Europe) Ltd.] 

Glenmark Pharmaceuticals S.R.O. (formerly known as Medicamenta A.S., Czech Republic) 

Glenmark Pharmaceuticals SK, s.r.o., Slovak Republic (Formerly known as Medicamenta SK SRO) 

Glenmark Pharmaceuticals S.A., Switzerland 

Glenmark Holding S.A., Switzerland 

Glenmark Generics Holding S.A., Switzerland 

Glenmark Generics Finance S. A., Switzerland 

Glenmark Pharmaceuticals S.R.L., Romania 

Glenmark Pharmaceuticals Eood., Bulgaria 

Glenmark Distributor SP z.o.o., Poland 

Glenmark Pharmaceuticals SP. z.o.o., Poland 

Glenmark Generics Inc., USA 

Glenmark Therapeutics Inc., USA 

Glenmark Farmaceutica Ltda., Brazil 

Glenmark Generics S.A., Argentina 

Glenmark Pharmaceuticals Mexico, S.A. DE C.V., Mexico 

Glenmark Pharmaceuticals Peru SAC., Peru 

Glenmark Pharmaceuticals Colombia Ltda., Colombia 

Glenmark Uruguay S.A. (formerly known as Badatur S.A., Uruguay) 

Glenmark Pharmaceuticals Venezuela., C.A., Venezuela 

Glenmark Dominicana SRL, Dominican Republic (formerly known as Glenmark Dominicana S.A.) 

Glenmark Pharmaceuticals Egypt S.A.E., Egypt 

Glenmark Pharmaceuticals FZE., U.A.E. 

Glenmark Impex L.L.C., Russia 

Glenmark Philippines Inc., Philippines 

Glenmark Pharmaceuticals (Nigeria) Ltd., Nigeria 

Glenmark Pharmaceuticals Malaysia Sdn Bhd., Malaysia 

Glenmark Pharmaceuticals (Australia) Pty Ltd., Australia 

Glenmark South Africa (Pty.) Ltd., South Africa 

Glenmark Pharmaceuticals South Africa (Pty.) Ltd., South Africa 

Glenmark Exports Ltd., India 

Glenmark Generics Ltd., India 

ii) Investment in Joint Venture 

Glenmark Pharmaceuticals (Thailand) Co. Ltd., Thailand 

b) Related party relationships where transactions have taken place during the year 

Subsidiary Companies 

Glenmark Exports Ltd., India 

Glenmark Farmaceutica Ltda., Brazil 



Glenmark Philippines Inc., Philippines 

Glenmark Pharmaceuticals (Nigeria) Ltd., Nigeria 

Glenmark Pharmaceuticals S.A., Switzerland 

Glenmark Pharmaceuticals Malaysia Sdn. Bhd., Malaysia 

Glenmark Pharmaceuticals (Australia) Pty. Ltd., Australia 

Glenmark Impex L.L.C., Russia 

Glenmark Holding S.A., Switzerland 

Glenmark Generics Ltd., India 

Glenmark Pharmaceuticals Venezuela., C.A., Venezuela 

Glenmark Pharmaceuticals South Africa (Pty.) Ltd., South Africa 

Glenmark Dominicana SRL, Dominican Republic 

c) Key management personnel 

Mr. Gracias Saldanha 

Mrs. B.E. Saldanha 

Mr. Glenn Saldanha 

Mrs. Cheryl Pinto 

Mr. A.S. Mohanty 

d) Transactions with related parties during the year 

Rs. in (‘000s) 

2009-2010 2008-2009 

Subsidiary Company 

1. Sale of Finished Products & Services 1,101,531 1,314,750 

Glenmark Exports Ltd., India - 353,098 

Glenmark Pharmaceuticals S.A., Switzerland 461,465 523,189 

Glenmark Farmaceutica Ltda., Brazil 87,689 65,611 

Glenmark Pharmaceuticals Inc., Philippines 41,687 22,737 

Glenmark Impex L.L.C., Russia 481,562 304,968 

Glenmark Generics Ltd., India 249 22,400 

Glenmark Pharmaceuticals (Nigeria) Ltd., Nigeria 23,055 22,747 

Glenmark Pharmaceuticals South Africa (Pty) Ltd., South Africa 395 - 

Glenmark Pharmaceuticals Venezuela., C.A., Venezuela 5,429 - 

2. Purchase of Finished Products & Services 220,925 295,511 

Glenmark Generics Ltd., India 217,065 295,511 

Glenmark Generics S.A., Argentina 3,860 - 

3. Investment in Share Capital 7,552,874 789,315 

Glenmark Philippines Inc., Philippines 28,804 36,689 

Glenmark Pharmaceuticals Malaysia Sdn. Bhd., Malaysia 1,309 3,846 

Glenmark Pharmaceuticals (Nigeria) Ltd., Nigeria 35,274 - 


Glenmark Pharmaceuticals (Australia) Pty. Ltd., Australia 4,313 60,734 

Glenmark Pharmaceuticals Egypt S.A.E., Egypt 40,960 1,980 

Glenmark Pharmaceuticals (Thailand) Co. Ltd., Thailand 1,160 1,348 

Glenmark Pharmaceuticals FZE., (U.A.E.) - 12,925 

Glenmark Generics Ltd., India 7,151,000 380,000 

Glenmark Dominicana SRL, Dominican Republic 62 - 

4. Share Application Money - 10,299 

Glenmark Pharmaceuticals Egypt S.A.E., Egypt - 10,299 

5. Sale of Business to - 7,500,000 

Glenmark Generics Ltd., India - 7,500,000 

6. Sale of Fixed Assets to 19,150 94,268 

Glenmark Pharmaceuticals S.A., Switzerland 755 6,349 




Rs. in (‘000s) 

2009-2010 2008-2009 

7. Purchase of Fixed Assets 23,400 86,872 


Glenmark Generics Ltd., India - 4,220 

8. Advance received - 1,920 

Glenmark Pharmaceuticals (Australia) Pty. Ltd., Australia - 1,920 

9. Advances given 2,405 107 

Glenmark Pharmaceuticals (Australia) Pty. Ltd., Australia - 107 

Glenmark Pharmaceuticals (Nigeria) Ltd., Nigeria 2,405 - 

10. Loan given to 3,417,084 5,719,717 

Glenmark Holding S.A., Switzerland 3,410,337 4,775,744 

Glenmark Pharmaceuticals (Nigeria) Ltd., Nigeria - 20,765 



Glenmark Pharmaceuticals Egypt S.A.E., Egypt 6,747 - 

11. Loan repaid by 1,598,644 798,190 

Glenmark Holding S.A., Switzerland 997,570 - 


Glenmark Philippines Inc., Philippines - 19,484 


Glenmark Pharmaceuticals Egypt S.A.E., Egypt 6,747 - 

12. Interest on Loan Given 684,803 393,637 

Glenmark Philippines Inc., Philippines - 228 


Glenmark Holding S.A., Switzerland 260,734 118,103 

Glenmark Pharmaceuticals (Australia) Pty. Ltd., Australia - 965 



Glenmark Pharmaceuticals Egypt S.A.E., Egypt 237 - 

13. Expenses paid on behalf of Glenmark Pharmaceuticals Ltd., India 54,216 22,122 

Glenmark Farmaceutica Ltda., Brazil 243 815 



Glenmark Pharmaceuticals FZE., U.A.E. 26,069 - 

14. Expenses paid on behalf of Glenmark Generics Ltd., India 85,219 90,019 

15. Reimbursement of expenses to Glenmark Exports Ltd., India 45,780 45,661 

16. Other Income from 30,352 29,135 

Glenmark Generics Ltd., India 4,290 - 

Glenmark Holding S.A., Switzerland 26,062 29,135 

17. Labour Charges to Glenmark Generics Ltd., India 592 5,260 

18. Factory rent to Glenmark Generics Ltd., India 1,650 - 

Key management personnel 

Remuneration 36,073 95,429 

Mr. Gracias Saldanha 120 25,882 

Mrs. B. E. Saldanha 60 40 

Mr. Glenn Saldanha 18,282 34,093 

Mrs. Cheryl Pinto 9,409 15,011 

Mr. R. V. Desai (resigned from the board effective from 

1st April, 2009) 

- 9,190 

Mr. A. S. Mohanty 8,202 11,213 



Rs. in (‘000s) 

2009-2010 2008-2009 

e) Related party balances 

Receivable/(Payable) from/(to) Subsidiary companies 9,888,720 15,199,299 

Glenmark Exports Ltd., India 159,479 661,603 




Glenmark Holding S.A., Switzerland 7,422,429 5,519,684 


Glenmark Generics Ltd., India 770,500 7,858,349 


Glenmark Pharmaceuticals South Africa (Pty.) Ltd., South Africa 395 - 

Glenmark Pharmaceuticals FZE., U.A.E. (6,486) - 

Glenmark Generics SA., Argentina 1,091 - 


8. OUTSTANDING DUES TO MICRO, SMALL AND MEDIUM SCALE BUSINESS ENTITIES 

The Company has not received any information from the "suppliers" regarding their status under the Micro, Small and Medium 

Enterprises Development Act, 2006 & hence disclosures, if any, relating to the amounts as at year end together with interest paid/ 

payable as required under the said Act have not been given. 

9. LEASES 

The Company has taken on lease/leave and licence godowns/residential & office premises at various locations in the country. 

i) The Company's significant leasing arrangements are in respect of the above godowns & premises (including furniture and 

fittings therein, as applicable). The aggregate lease rentals payable are charged to Profit and Loss Account as Rent. 

ii) The Leasing arrangements which are cancellable range between 11 months and 5 years. They are usually renewable by mutual 

consent on mutually agreeable terms. Under these arrangements, generally refundable interest free deposits have been given. 

An amount of Rs. 83,911 ('000) [2009 - Rs. 78,559 ('000)] towards deposit and unadjusted advance rent is recoverable from the 

lessor. 

10. TAXATION 

Provision for current taxation for the Company of Rs. 211,500 ('000) represents Minimum Alternate Tax pursuant to the provisions of 

Section 115JB of the Income Tax Act, 1961 of India. 

The Finance Act, 2005 inserted sub-section (1A) to Section 115JAA to grant tax credit in respect of MAT paid under Section 115JB of the 

Act with effect from Assessment Year 2006-07 and carry forward the credit for a period of 10 years. In accordance with the Guidance 

Note issued on “Accounting For Credit Available in Respect of Minimum Alternative Tax (MAT) under the Income Tax Act, 1961” by the 

Institute of the Chartered Accountants of India, the Company has recognised MAT Credit which is expected to be set-off against the 

tax liability, other than MAT in future years. Accordingly, an amount of Rs. 232,304 ('000) for the current year is included as MAT Credit 

Entitlement in Schedule 12 - Loans and Advances. 

11. EMPLOYEE BENEFITS 

The disclosures as required as per the revised AS 15 are as under: 

1. Brief description of the Plans 

The Company has various schemes for long-term benefits such as Provident Fund, Superannuation, Gratuity and Leave 

Encashment. In case of funded schemes, the funds are recognised by the Income tax authorities and administered through 

appropriate authorities. The Company's defined contribution plans are Superannuation and Employees' Provident Fund and 

Pension Scheme (under the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952) since the 

Company has no further obligation beyond making the contributions. The Company's defined benefit plans include Gratuity 

and Leave Encashment. 

Rs. in (‘000s) 

2009-2010 2008-2009 

2. Charge to the Profit and Loss Account based on contributions: 

Superannuation 2,331 2,326 

Provident fund 55,092 50,642 

57,423 52,968 



3. Disclosures for defined benefit plans based on actuarial reports as on 31st March, 2010: Rs. in ('000s) 

2009-2010 2008-2009 

Gratuity 

(Funded 

plan) 

Leave 

Encashment 

(Funded 

plan) 

Gratuity 

(Funded 

plan) 

Leave 

Encashment 

(Funded 

plan) 

(i) Change in Defined Benefit Obligation 

Opening defined benefit obligation 109,641 55,509 103,127 48,330 


Interest cost 7,919 3,719 7,711 3,169 

Actuarial loss/(gain) 721 6,728 1,958 8,299 

Benefits paid (8,117) (11,853) (18,191) (19,368) 

Closing defined benefit obligation 126,818 68,286 109,641 55,509 

(ii) Change in Fair Value of Assets 

Opening fair value of plan assets 107,981 24,609 76,559 29,790 


Actuarial gain/(loss) 2,906 (198) (4,758) (386) 

Contributions by employer 10,117 16,810 46,219 12,152 

Benefits paid (8,117) (11,853) (18,191) (19,369) 

Closing fair value of plan assets 122,968 31,874 107,981 24,609 

(iii) Reconciliation of Present Value of Defined Benefit Obligation 

and the Fair Value of Assets 

Present value of funded obligations as at year end 126,818 68,286 109,641 55,509 


Funded Liability/(Asset) recognised in the Balance Sheet 3,850 36,412 1,660 30,900 

Present Value of Unfunded Obligation as at year end - - - - 

Unrecognised Actuarial Gain/(Loss) - - - - 

Unfunded Liability/(Asset) recognised in the Balance Sheet - - - - 

(iv) Amount recognised in the Balance Sheet 

Present value of obligations as at year end 126,818 68,286 109,641 55,509 


Amount not recognised as an asset - - - - 

Net (asset)/liability recognised as on 31st March, 2010 3,850 36,412 1,660 30,900 

(v) Expenses recognised in the Profit and Loss Account 


Interest on defined benefit obligation 7,919 3,719 7,711 3,169 

Expected return on plan assets (10,081) (2,506) (8,152) (2,422) 

Net actuarial loss/(gain) recognised in the current year (2,185) 6,926 6,715 8,686 

Total expenses 12,307 22,322 21,310 24,512 

(vi) Actual Return on Plan Assets 


Actuarial gain/(loss) on Plan Assets 2,906 (198) (4,758) (386) 

Actual Return on Plan Assets 12,987 2,308 3,394 2,036 

(vii) Asset information 

Administered by Birla Sunlife Insurance Co. Ltd. and LIC of India 100% 100% 100% 100% 

(viii) Principal actuarial assumptions used 

Discount rate (p.a.) 8.00% 8.00% 7.50% 7.50% 

Expected rate of return on plan assets (p.a.) 9.00% 9.00% 9.00% 9.25% 

(ix) Experience Analysis 

Actuarial gain/(loss) on change in assumptions 6,297 (1,922) - - 

Experience (Gain)/Loss on Liabilities (5,576) 8,650 - - 

Actuarial gain/(loss) on Obligation 721 6,728 - - 

(x) Expected employer’s contribution for the next year is Rs. 23,355 ('000) for Gratuity and Leave Encashment. 



12. MANAGERIAL REMUNERATION 

Rs. in (‘000s) 

2009-2010 2008-2009 

(a) Paid/payable to directors* 

Salaries, Perquisites & Other benefits 23,821 53,060 

Commission (Previous period amount includes commission Payable to 

957 27,766 

Non-executive director @ 1% of Profit computed under Section 349). 

Sitting Fees 720 350 

Contribution to Provident Fund & Superannuation Fund 11,115 14,533 

36,613 95,709 

Name of Directors 

1. Mr. Gracias Saldanha 120 25,882 

2. Mrs. B. E. Saldanha 60 40 

3. Mr. Glenn Saldanha 18,282 34,093 

4. Mrs. Cheryl Pinto 9,409 15,011 

5. Mr. R. V. Desai (resigned from the board effective from 1st April, 2009) - 9,190 

6. Mr. A. S. Mohanty 8,202 11,213 

7. Other Directors 540 280 

* Excludes contributions to Gratuity and Leave Encashment Fund, which is 

based on actuarial valuation. 

(b) Computation of net profits in accordance with Section 349 and Section 309(5) 

of the Companies Act, 1956. 

Profit before taxation as per Statement of Profit and Loss 1,210,138 2,460,719 

Add: Depreciation as per Statement of Profit and Loss 212,778 191,045 

Loss on sale of Generic business - 2,980 

Provision for Doubtful Debts 17,500 30,000 

1,440,416 2,684,744 

Less: Depreciation calculated under Section 350 of the Companies Act, 1956 212,778 191,045 

Profit on sale of assets - 4,212 

Net profit in accordance with Section 349 1,227,638 2,489,487 

Add: Managerial remuneration paid/payable to directors 36,613 95,709 

Net profit in accordance with Section 309(3) of the Companies Act, 1956 1,264,251 2,585,196 

Maximum managerial remuneration allowed under Section 198 of the Companies 

Act, 1956, 11 per cent of the above 139,068 284,372 

13. CAPACITY, PRODUCTION, SALES AND STOCKS 

(a) Capacities and actual production (including samples) 

Class of goods UoM Installed Capacity Actual Production 

2009-2010 2008-2009 2009-2010 2008-2009 

Injections Ltrs - - 210,901 192,422 

Liquid Orals Ltrs 12,036,666 8,166,666 4,175,057 5,002,682 

Lotions and Externals Ltrs 2,367,500 626,250 708,052 511,193 

Ointments and Creams Kgs 4,357,500 1,087,500 834,457 631,728 

Solids and Powders Kgs 113,000 113,000 311,173 231,673 

Tablets and Capsules Nos 1,182,950,000 1,180,800,000 784,299,349 752,893,839 

Others - - 132,131 343,864 

Notes: 

i) The products of the Company are exempt from licencing procedures. 

ii) Installed capacity, being a technical matter, has not been verified by the auditors. However, the management has certified 

the same. 

iii) Actual production includes goods manufactured at third party manufacturing facilities on loan licence basis and at 

leased facilities. 



(b) 

(c) 

Sales 

Class of goods UoM 2009-2010 2008-2009 

Qty Value Qty Value 

Rs. in ('000s) 

Rs. in ('000s) 

Injectibles Ltrs 360,800 674,558 255,206 566,494 

Liquid Orals Ltrs 4,464,608 1,411,501 4,859,858 1,676,725 

Lotions and Externals Ltrs 845,595 1,033,321 697,124 820,983 

Ointments and Creams Kgs 872,132 2,016,108 620,370 1,435,520 

Solids and Powders Kgs 316,939 166,081 197,963 107,263 

Tablets and Capsules Nos 1,124,223,930 4,153,827 757,502,380 3,408,056 

Cardiac diagnostic services 15,292 14,436 

Others 826,180 632,247 

TOTAL 10,296,868 8,661,724 

Notes: 

1. Sales are net of sales returns. 

2. Sales quantities does not include free issues, samples and breakages. 

Finished goods purchased (includes samples) 

Class of goods UoM 2009-2010 2008-2009 


Rs. in ('000s) 

Rs. in ('000s) 

Injectibles Ltrs 151,626 241,784 83,444 151,925 

Liquid Orals Ltrs 137,390 45,539 176,880 52,408 

Lotions and Externals Ltrs 100,869 41,752 249,752 115,818 

Ointments and Creams Kgs 17,347 16,792 48,343 20,884 

Solids and Powders Kgs - - - - 

Tablets and Capsules Nos 322,750,466 436,830 105,128,406 345,779 

Others - 58,799 - 413 

TOTAL 841,496 687,227 

(d) 

Raw and packing materials consumed 

Products 2009-2010 2008-2009 


in kgs Rs. in ('000s) in kgs Rs. in ('000s) 

Telmisartan BP 7,363 95,306 - - 

Sugar S/30 Ih 1,461,206 49,841 1,862,804 35,153 

Mupirocin Usp 316 49,087 268 39,074 

100ML Amber Pet Bottles (25 mm Neck) 28,442,845 46,044 30,532,524 49,293 

Propylene Glycol IP 366,813 33,319 - - 

Lornoxicam IH 295 33,214 326 41,144 

Eplerenone 101 31,604 84 33,632 

Levofloxacin Hemihydrate IP 11,537 31,353 10,910 42,671 

Miglitol IH 479 31,290 455 34,018 

Linezolid IH 1,560 31,205 1,242 25,134 

Others 1,570,522 1,378,518 

TOTAL 2,002,785 1,678,637 



(e) 

(f) 

Break-up of Materials and Consumable stores consumed 

2009-2010 2008-2009 

Value Per cent Value Per cent 

Rs. in ('000s) 

Rs. in ('000s) 

Materials 

Imported materials 76,623 3.83 143,370 8.54 

Indigenously procured 1,926,162 96.17 1,535,267 91.46 

2,002,785 100.00 1,678,637 100.00 

Consumable stores and spares 

Imported - - - - 

Indigenously procured 42,272 100.00 43,013 100.00 

42,272 100.00 43,013 100.00 

Inventories of finished goods (manufactured and traded) 

Opening Stock 

Closing Stock 

2009-2010 2008-2009 2009-2010 2008-2009 

Class of goods UoM Qty Value Qty Value Qty Value Qty Value 

Rs. in (‘000s) Rs. in (‘000s) Rs. in (‘000s) Rs. in (‘000s) 

Injectibles Ltrs 55,583 64,554 34,668 44,877 57,315 85,396 55,583 64,554 

Liquid Orals Ltrs 719,115 96,640 394,256 61,613 566,946 63,978 719,115 96,640 

Lotions and Externals Ltrs 190,778 59,852 136,458 38,028 154,111 51,401 190,778 59,852 

Ointments and Creams Kgs 134,285 100,676 78,975 84,389 113,959 73,922 134,285 100,676 

Solids and Powders Kgs 55,170 11,513 21,523 5,974 49,405 10,797 55,170 11,513 

Tablets and Capsules Nos 207,546,567 378,131 163,171,004 427,357 190,372,456 233,737 207,546,567 378,131 

Bulk Drugs Kgs - - 3,067 58,157 - - - - 

Others - 4,402 - 25,216 - 107,686 - 4,402 

TOTAL 715,768 745,611 626,917 715,768 

14. SUBSIDIARY COMPANIES Rs. in (‘000s) 


during the year 

As at 

2009-2010 2008-2009 31st March, 2010 31st March, 2009 

a) Loans and Advances to Subsidiaries 

Glenmark Pharmaceuticals S.A., Switzerland 953,721 553,244 911,657 553,244 

Glenmark Holding S.A., Switzerland 8,204,910 5,519,683 7,422,429 5,519,683 

Glenmark Farmaceutica Ltda., Brazil 2,746 4,935 2,411 2,988 

Glenmark Pharmaceuticals (Nigeria) Ltd., Nigeria 39,141 36,711 31,746 36,711 

Glenmark Impex L.L.C., Russia 156,708 156,708 138,756 156,708 

Glenmark Generics Ltd., India 52,754 533,427 - 380,220 

Glenmark Pharmaceuticals Egypt S.A.E., Egypt 6,962 - - - 

Glenmark Generics SA., Argentina 2,219 399 1,091 - 

8,508,090 6,649,554 

b) Interest-bearing loans to Subsidiary Companies 

Glenmark Holding S.A., Switzerland. 8,112,070 4,836,426 7,011,506 4,836,426 

Glenmark Pharmaceuticals (Nigeria) Ltd., Nigeria 31,226 26,757 29,341 26,757 

Glenmark Impex L.L.C., Russia 144,117 137,358 135,417 137,358 

Glenmark Pharmaceuticals Egypt S.A.E., Egypt 6,747 - - - 


c) Receivable from Subsidiary Companies 






Glenmark Exports Ltd., India 159,479 661,603 

Glenmark Pharmaceuticals South Africa (Pty) Ltd., 

395 - 

South Africa 


d) Payable to Subsidiaries 

Glenmark Pharmaceuticals FZE., U.A.E. 6,486 - 




e) Movement of shares during the year 

As at 

1st April, 2009 

No. of Shares in ('000) 

Invested during 

the Year 

Sale during 

the Year 

Balance 

as at 31st 

March, 2010 

Investments in Subsidiary Companies - Unquoted 

- non-trade 

Glenmark Impex L.L.C., Russia 266,741 188,961 - 455,702 

Glenmark Philippines Inc., Philippines 497 143 - 640 

Glenmark Pharmaceuticals (Nigeria) Ltd., Nigeria 157,116 110,417 - 267,533 

Glenmark Pharmaceuticals Malaysia Sdn. Bhd., Malaysia 1,108 93 - 1,201 


Glenmark Pharmaceuticals (Australia) Pty Ltd., Australia 1,861 115 - 1,976 

Glenmark Pharmaceuticals Egypt S.A.E., Egypt 250 4,725 - 4,975 

Glenmark Dominicana, SRL, Dominican Republic* 0* 0* - 0* 

Investment in Joint Venture 

Glenmark Pharmaceuticals (Thailand) Co. Ltd. 

- Ordinary shares (Paid-Up 50 THB) - 16 - 16 

* number less than 1,000 

15. FOREIGN CURRENCY CONVERTIBLE BOND ISSUED 

A) The Company had issued 30,000 Zero Coupon Foreign Currency Convertible Bonds of USD 1,000 each (Rs. 1,331,700 at issue) 

(i) Convertible at the option of the bondholder at any time on or after 11th November, 2007 but prior to the close of business 

on 29th November, 2010 at a fixed exchange rate of Rs. 44.94 per 1 USD and the conversion price of Rs. 582.60 per share 

of Re. 1 each. 

(ii) Redeemable in whole but not in part at the option of the Company on or after 10th January, 2010 if closing price of the 


given was at least 130% of the applicable Early Redemption Amount divided by the Conversion Ratio. 

(iii) Redeemable on maturity date on 11th January, 2011 at 139.729% of its principal amount if not redeemed or converted 

earlier. The redemption premium of 39.729% payable on maturity of the bond if there is no conversion of the bond 

to be debited to Securities Premium Account evenly over the period of 5 years from the date of issue of bonds. As of 

31st March, 2010, 30,000 FCC bonds (2009-30,000) of USD 1,000 each aggregating to USD 30 million are outstanding. 

B) The Company had issued 20,000 Zero Coupon Foreign Currency Convertible Bonds of USD 1,000 each (Rs. 873,200 at issue) 

(i) Convertible at the option of the bondholder at any time on or after 28th March, 2005 but prior to the close of business on 

2nd January, 2010 at a fixed exchange rate of Rs. 43.66 per 1 USD and price of Rs. 215.60 (Post adjustment for bonus and 

split) per share of Re. 1 each. 

(ii) Redeemable in whole but not in part at the option of the Company on or after 15th February, 2008 if closing price of the 

Share for each of the 25 consecutive trading days immediately prior to the date upon which notice of such redemption is 


(iii) Redeemable on maturity date on 16th February, 2010 at 133.74% of its principal amount if not redeemed or converted 

earlier. The redemption premium of 33.74%payable on maturity of the Bond if there is no conversion of the Bond to be 

debited to Securities Premium Account evenly over the period of 5 years from the date of issue of Bonds. During the year, 

1,000 FCC Bonds of USD 1,000 each aggregating to USD 1 Million were redeemed on 16th February, 2010 on maturity. 

As of 31st March, 2010, NIL FCC Bonds (2009 -1,000) of USD 1,000 each are outstanding. 

C) The Company had issued 50,000 Zero Coupon Foreign Currency Convertible Bonds of USD 1,000 each (Rs. 2,183,000 at issue) 

(i) Convertible at the option of the bondholder at any time on or after 15th November, 2006 but prior to the close of business 

on 2nd January, 2010 at a fixed exchange rate of Rs. 43.66 per 1 USD and the price of Rs. 253.11 (post adjustment for split) 


(ii) Redeemable in whole but not in part at the option of the Company on or after 15th February, 2009 if closing price of the 



(iii) Redeemable on maturity date on 16th February, 2010 at 134.07% of its principal amount if not redeemed or converted 

earlier. The Redemption Premium of 34.07% payable on maturity of the Bond if there is no conversion of the Bond to be 

debited to Securities Premium Account evenly over the period of 5 years from the date of issue of Bonds. During the year, 

5,000 FCC Bonds of USD 1,000 each aggregating to USD 5 Million were redeemed on 16th February, 2010 on maturity. 

As of 31st March, 2010, NIL FCC Bonds (2009 - 5,000) of USD 1,000 each are outstanding. 

96 

GLENMARK PHARMACEUTICALS LIMITED


16. Extracts of Assets and Liabilities as on 31st March, 2010 and Income and Expenses for the year ended 31st March, 2010 related to 

the interest of the Company [without elimination of the effect of transactions between the Company and Glenmark Pharmaceuticals 

(Thailand) Co. Ltd., Thailand] have been extracted from the audited accounts. 

Rs. in (‘000s) 

Particulars 2009-2010 2008-2009 

Assets 

Net Fixed Assets including CWIP 5 - 

Deferred Tax Asset 236 52 

Cash Bank Balances 1,029 1,114 

Loans and Advances 57 59 

Liabilities 

Current Liabilities 144 66 

Income 

Net Sales - - 

Expenses 

Selling and Operating expenses 1,269 325 

Depreciation 1 - 

Provision for Taxation including Deferred Tax (191) (49) 

17. VALUE OF IMPORTS ON CIF BASIS 

Capital Goods 77,916 182,620 

Materials 150,438 114,254 

228,354 296,874 

18. EARNINGS IN FOREIGN CURRENCY 

Export of goods calculated on FOB basis 2,649,149 2,068,524 

Guarantee Commission 26,062 29,135 

Interest on loan to subsidiaries 278,254 136,067 

2,953,465 2,233,726 

19. EXPENDITURE IN FOREIGN CURRENCY 


Professional and Consultancy charges 36,940 19,756 

Export promotional expenses and export commission 132,000 114,164 

Salary and related expenses 99,650 115,908 

Product registration expenses 47,584 36,892 

Interest expenses 12,881 29,983 

Others 222,218 159,216 

596,834 528,150 

20. DIVIDEND REMITTANCE IN FOREIGN CURRENCY 

Number of Non-resident Shareholders 22 - 

Number of Equity Shares held by them 163,240 - 

Amount of dividend paid (Gross), TDS Rs. Nil (2009 – Rs. Nil) 65 - 

Year to which dividend relates 2008-2009 - 

21. PRIOR YEAR COMPARATIVES 

Prior year's figures have been regrouped or reclassified wherever necessary to confirm to current year's classification. 

Signatures to the Schedules 1 to 21 which form an integral part of the Financial Statements. 








Place: Mumbai 





Additional information as required under Part IV of Schedule VI to the Companies Act, 1956. 

Balance Sheet Abstract & Company’s General Business Profile 

(a) 

(b) 

(c) 

(d) 

(e) 

Rs. in (‘000s) 

Registration Details 

Registration No. 1 9 9 8 2 State Code 1 1 

Date Month Year 

Balance Sheet Date 3 1 0 3 2 0 1 0 

Capital raised during the year 

Public Issue 

Rights Issue 

N I L N I L 

Bonus Issue 

Qualified Institutions Placement Issue 

N I L 1 8 7 1 3 

Preferential offer of shares under 

Employee stock option scheme 

Conversion of FCC Bond 

6 0 5 N I L 

Position of mobilisation and deployment of funds 

Total Liabilities including Shareholders Funds 

Total Assets 

2 7 7 3 6 1 9 6 2 7 7 3 6 1 9 6 

SOURCES OF FUNDS 

Paid-up Capital 

Reserves and Surplus 

2 6 9 8 3 8 1 7 4 6 4 3 1 6 

Secured Loans 

Unsecured Loans 

4 8 6 4 0 3 7 1 1 1 1 5 0 

Deferred Tax Liability 

3 2 7 7 1 3 

APPLICATION OF FUNDS 

Net Fixed Assets 

Investments 

2 3 7 2 9 0 6 9 9 2 9 1 9 1 

Net Current Assets 

Miscellaneous Expenditure 

1 3 2 6 0 5 9 6 N I L 

Deferred Tax Assets 

Accumulated Losses 

9 6 7 2 7 N I L 

Performance of the Company 

Turnover (Total Income) 

Total Expenditure 

1 0 3 8 8 7 6 5 9 1 7 8 6 2 7 

Profit/(Loss) Before Tax 

Profit/(Loss) After Tax 

1 2 1 0 1 3 8 1 2 8 4 6 3 2 

Basic Earnings per Share in Rs. 

Diluted Earnings per Share in Rs. 

4 . 9 3 4 . 9 2 

Dividend Rate % 

4 0 

Generic Names of Three Principal Products of Company 

Item Code No. (ITC code) 

Product Description 

3 0 0 4 2 0 . 3 9 Levofloxacin 

3 0 0 4 9 0 . 6 9 Lornoxicam 

3 0 0 4 9 0 . 7 9 Telmisartan 


Statement Pursuant to Section 212 of the Companies Act, 1956. 

Relating to Company’s interest in Subsidiary Companies; 

No. Name of the Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark 

Glenmark Glenmark Glenmark Glenmark Glenmark 

Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark 

Company Exports Generics Impex Farmaceutica Generics Philippines Generics Pharmaceuticals Dominicana Pharmaceuticals Pharmaceuticals 

S.A., Africa (Pty) Argentina (Australia) South Africa S.A. ceuticals ticals S.R.L. ceuticals Holding Finance ceuticals ceuticals ceuticals tics Inc., ceuticals ceuticals ceuticals ticals Mexico, ceuticals SA 

ceuticals SK SP Z.O.O. 

South Generics S.A. Pharmaceuticals Pharmaceuticals Holding Pharma- 

Pharmaceu- 

Pharma- 

Generics Generics Pharma- 

Pharma- 

Pharma- 

Therapeu- 

Pharma- 

Pharma- 

Pharma- 

Pharmaceu- 

Pharma- 

Uruguay Pharma- 

Distributors 

Limited Limited L.L.C. ltda. 

(Europe) Inc., 

Inc., USA (Nigeria) Ltd. SRL 

(Malaysia) 

Ltd. 

SDN.BHD 

Switzerland Ltd. 

Pty Ltd. 

(Pty) Ltd. 

SRO 

Europe S.A. 

S.A. EOOD Colombia Peru USA Egypt SP. Z.O.O. F.Z.E. SA DE CV Venezuela, 

SRO 

Ltd. 

Ltda S.A.C 

S.A.E. 

CA 

1. The financial 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 

year of the 

Subsidiary 

Companies 

ended 

2. Date from 10-Sep-96 15-Sep-04 7-May-01 Not 

Not 28-Jan-04 Not 

28-Apr-04 1-Jun-04 22-Jul-04 Not 

Not 

Not 

31-Mar-06 Not Applicable. 17-May-06 Not 

Not 

Not 

Not 

Not Not 

Not 

Not Not 

6-Nov-08 Not 

19-Nov-08 Not 

Not 

Not 

Not 

Not 

which they 

Applicable. Applicable. 

Applicable. 

Applicable. Applicable. Applicable. 

(Wholly owned 

Applicable. Applicable. Applicable. Applicable. Applicable. Applicable. Applicable. Applicable. Applicable. 

Applicable. 

Applicable. Applicable. Applicable. Applicable Applicable. 

became 

(Wholly (Wholly 

(Wholly 

(Wholly (Wholly (Wholly 

subsidiary of 

(Wholly (Wholly (Wholly (Wholly (Wholly (Wholly (Wholly (Wholly (Wholly 

(Wholly 

(Wholly (Wholly (Wholly (Wholly (Wholly 

subsidiary 

owned owned 

owned 

owned owned owned 

Glenmark South 

owned owned owned owned owned owned owned owned owned 

owned 

owned owned owned owned owned 

subsidiary subsidiary 

subsidiary 

subsidiary subsidiary subsidiary 

Africa (Pty) Ltd. 

subsidiary subsidiary subsidiary subsidiary subsidiary subsidiary subsidiary subsidiary subsidiary 

subsidiary 

subsidiary subsidiary subsidiary subsidiary subsidiary 

of Glenmark of 

of Glenmark 

of Glenmark of Glenmark of Glenmark 

of 

of Glenmark of Glenmark of Glenmark of 

of 

of 

of 

of 

of 

of Glenmark of Glenmark of Glenmark of Glenmark of Glenmark 

Holding S.A., Glenmark 

Generics 

Holding S.A., Holding S.A., Generics 

Glenmark Holding S.A) Holding Generics Glenmark Glenmark Glenmark Glenmark Glenmark 


Uruguay, Uruguay, Holding Pharmaceuticals 

SRO) S.A.) 

Holding 

Switzerland) Generics 

Holding 

Switzerland) Switzerland) Holding S.A.) 

Holding 

S.A) 

Finance Generics Holding Uruguay Uruguay Holding 

Holding 

S.A.) 

S.A..) S.A.) 

Limited) 

S.A.) 

S.A) 

S.A) 

Limited) S.A.) S.A.) S.A.) S.A.) 

S.A.) 

3. a. Number of 1,850,020 143,210,000 455,701,648 Not 

Not 640,490 Not 

267,533,341 RD 100,000 1,200,861 

Not Applicable Not 

Not 

1,976,002 shares Not Applicable.( 22,520,000 Not 

Not 

Not 

Not 

Not Not 

Not 

Not Not 

4,975,154 Not 

1 share Not 

Not 

Not 

Not 

Not 

shares held Equity Equity Equity Applicable Applicable shares of Applicable Ordinary shares divided into Ordinary shares (3,000,000 Applicable Applicable. of AUD 1 each 500 Equity shares Shares Applicable. Applicable. Applicable. Applicable. Applicable. Applicable. Applicable Applicable. Applicable. shares Applicable of AED Applicable. Applicable. Applicable. Applicable. Applicable. 

by Glenmark Shares of Shares Shares (177,084,654 (6,285,121 200 Pesos (42,665,819 of Naira 1 each. 100 shares of RM 1 each. shares of CHF (83,656 (1,686,487 

of R 1 each held of CHF 1 (297,371 (1,551,136 (4,100,708 (215,600,000 (2,750,000 (5 shares (9000 2,800 5,570,000 of EGP 1 4,400 1,000,000 37,792,360 10,691 152,082,634 6,639 shares 3,700 shares 

Pharmaceuticals 

each fully each fully each. 1 each held shares of 

US$ 1 each 

each. 

by Glenmark shares of R by Glenmark 

South Africa 

of CZK RON 1 each GBP 1 each CHF 1 each CHF 1 each 1000 each of Cop Sole 1 each USD 1 each 

of PLN 

Mexican Peso Bs 1 each Uruguayan each held by each held by 

Rs.10/- of Rs.10 of RUB 1 shares of BRL Ordinary each shares of 

of RD 1,000 

1 each held Ordinary shares held 

by Glenmark each shares shares of share of shares of shares of of BGN shares shares of shares of each shares each shares of 1 shares of shares of 1 of EUR 1 of PLN 500 

Ltd. in the paid up paid up. 

by Glenmark GBP 1 each 

held by 

Holding S.A.) 1.00 (Rand) Generics 

(Pty) Ltd.) 

760 each held by held by held by held by held by 1000 each held by held by 

500 each 

each held held by Peso each Glenmark Glenmark 

subsidiary 

Holding S.A.) held by 


each held by (Europe) Ltd,. 

held by Glenmark Glenmark Glenmark Glenmark Glenmark hedl by Glenmark Glenmark 

held by 

Glenmark Glenmark held by Pharmaceuticals 

Holding S.A. 

companies 


Generics 

Glenmark & 92,500,610 

Glenmark Holding S.A) Holding Generics Generics Holding Glenmark Uruguay Holding 


Uruguay, S.A Uruguay, Glenmark 

at the end of 

Generics 

Holding 

Holding S.A., shares of 1 

Holding 

S.A) 

Finance Limited) S.A.) Uruguay S.A. 

S.A. 

Holding 

S.A. 

Holding SRO 

financial year 

Limited) 

S.A) 

Switzerland) AR$ each held 

S.A.) 

S.A) 

S.A.) 

S.A. 

S.A. 

of Subsidiary 

by Glenmark 

Companies 

Generics 

Holding S.A.) 

3.b. Extent of 100% 97% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 

interest of 

holding 

Company at 

the end of 

the financial 

year of the 

subsidiary 

companies 

4. The net 

aggregate 

amount 

of the 

subsidiary 

companies’ 

Profit/ (Loss) 

so far as it 

concerns the 

members of 

the holding 

company: 

4.a. Not dealt 

within the 

holding 

company’s 

accounts: 

4.a.1. For the Nil 1,489,076 664,392 173,744 (23,700) (9,871) 254,092 4,627 (133) (3,024) (674,621) (108) (56,242) (15,349) 13,583 493,452 (318,953) (98,045) 5,620 17,772 (63,675) (2,928) (131) 3,906 (9,196) (18,109) 20,350 6,181 (96,745) (84,763) (32,084) 3,686 (1,546) 


ended 31st 

March, 2010 

(Rs ' 000) 

4.a.2. For the 7,378 1,038,118 415,823 1,519,440 (14,344) (26,743) 493,282 (33,950) Nil (10,567) 1,557,098 (5,455) (157,333) (57,440) (19,530) 6,026,205 (250,509) (54,412) (8,221) (86,374) (148,157) (20,446) N.A. (20,300) (15,668) (2,250) (43,671) (3,977) (15,555) (19,631) (1499) (2,134) (1,948) 

previous 

financial 

years of the 

Subsidiary 

Companies 

since they 

became 

the holding 

company’s 

subsidiaries 

(Rs. ‘000) 

4.b. Dealt within 

the holding 

company’s 

accounts: 

4.b.1. For the Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil 


ended 31st 

March, 2010 

(Rs ' 000) 

4.b.2. For the Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil 

previous 

financial 

years of the 

subsidiary 

companies 

since they 

became 

the holding 

company’s 

subsidiaries 

ANNUAL REPORT 2009-2010 

99

Statement Pursuant to Section 212 of the Companies Act, 1956. 

Relating to Company’s interest in Subsidiary Companies; (Contd.) 

(Rs. ' 000) 

No. Name of the Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark 

Glenmark Glenmark Glenmark Glenmark Glenmark 

Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark 

Company Exports Generics Impex Farmaceutica Generics Philippines Generics Pharmaceuticals Dominicana Pharmaceuticals Pharmaceuticals 

S.A., Africa (Pty) Argentina (Australia) South Africa S.A. ceuticals ticals S.R.L. ceuticals Holding Finance ceuticals ceuticals ceuticals tics Inc., ceuticals ceuticals ceuticals ticals Mexico, ceuticals SA 

ceuticals SK SP Z.O.O. 

South Generics S.A. Pharmaceuticals Pharmaceuticals Holding Pharma- 

Pharmaceu- 

Pharma- 

Generics Generics Pharma- 

Pharma- 

Pharma- 

Therapeu- 

Pharma- 

Pharma- 

Pharma- 

Pharmaceu- 

Pharma- 

Uruguay Pharma- 

Distributors 

Limited Limited L.L.C. ltda. 

(Europe) Inc., 

Inc., USA (Nigeria) Ltd. SRL 

(Malaysia) 

Ltd. 

SDN.BHD 

Switzerland Ltd. 

Pty Ltd. 

(Pty) Ltd. 

SRO 

Europe S.A. 

S.A. EOOD Colombia Peru USA Egypt SP. Z.O.O. F.Z.E. SA DE CV Venezuela, 

SRO 

Ltd. 

Ltda S.A.C 

S.A.E. 

CA 

5. Currency Rs. Rs. US$ BRL GBP PHP US$ NGN RD RM CHF ZAR PESO AUD ZAR CHF CZK RON GBP CHF CHF BGN US$ PEN US$ EGY PLN AED MXN US$ UYU EURO PLN 

6. Exchanfge 

Rate 

- - 45.14 25.14 67.87 1.00 45.14 0.30 1.25 13.70 42.32 6.11 11.64 41.41 6.11 42.32 2.38 14.92 67.87 42.32 42.32 30.98 45.14 16.03 45.14 8.24 15.65 12.26 3.63 45.14 2.35 60.59 15.65 

7. Share Capital 18,500 1,496,030 722,279 4,364,104 518,089 116,703 1,925,935 86,609 122 15,286 106,761 219,441 1,096,620 65,047 25,905 797,113 143,016 252,887 329,555 9,793,802 120,827 32,523 3,662 79,747 257,552 42,940 39,419 12,925 159,298 2,009 331,273 457 27,689 

8. Reserves 7,378 8,963,094 1,027,523 2,359,465 (124,348) (27,778) 742,501 (30,001) (122) (13,259) 1,182,314 (50,209) (185,982) (64,274) (4,598) 7,759,756 1,098,332 (150,075) (53,290) (751,045) 137,528 (24,150) (123) (16,877) (29,915) (21,108) 74,610 1,648 (111,087) (36,038) (3,110) 1,889 (1,889) 

9. Total Assets 185,357 19,260,112 2,501,448 7,005,704 862,189 117,910 10,037,467 105,486 - 2,085 4,996,426 169,327 1,065,024 978 158,176 20,991,673 2,214,775 391,803 283,533 13,708,990 13,030,275 8,745 4,528 67,987 256,989 23,014 130,718 17,674 71,293 56,160 329,154 55,139 215,646 

10. Total 

Liabilities 

159,479 8,800,988 751,646 282,135 468,448 28,985 7,369,031 48,878 - 58 3,707,351 95 154,386 205 136,869 12,434,804 973,427 288,991 7,268 4,666,233 12,771,920 372 989 5,117 29,352 1,182 16,689 3,101 23,082 90,189 991 52,793 189,846 

11. Investment - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 

(except 

in case of 

investment 

in 

subsidiaries) 

12. Turnover - 8,261,754 2,260,350 1,208,920 299,381 119,543 7,793,249 90,101 - - 24,669 - 346,876 - 269,831 - 1,059,502 315,395 116,343 - - - - - - 408 318,293 - 32,034 3,678 - 122,114 347,797 

13. Profit 

before Tax 

- 1,708,169 836,019 186,254 (37,368) (9,766) 438,089 6,097 (133) (3,024) (670,978) (108) (82,451) (15,349) 21,844 525,330 (321,531) (97,864) 5,623 26,921 (59,978) (2,928) (129) 3,906 (8,989) (17,573) 27,827 6,181 (105,724) (84,763) (30,585) 4,696 (1,615) 

14. Provision 

for Tax 

- 219,093 171,627 12,510 (13,668) 105 183,998 1,470 - - 3,643 - (26,209) - 8,261 31,878 (2,578) 181 3 9,149 3,697 - 2 - 207 536 7,477 - (8,979) - 1,499 1,010 (69) 

15. Profit 

after Tax 

- 1,489,076 664,392 173,744 (23,700) (9,871) 254,092 4,627 (133) (3,024) (674,621) (108) (56,242) (15,349) 13,583 493,452 (318,953) (98,045) 5,620 17,772 (63,675) (2,928) (131) 3,906 (9,196) (18,109) 20,350 6,181 (96,745) (84,763) (32,084) 3,686 (1,546) 

16. Proposed 

Dividend 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 


Glenn Saldanha Cheryl Pinto A. S. Mohanty 

Managing Director & CEO Director Director 

Place: Mumbai Marshall Mendonza 

Date: 28th May, 2010 Vice President - Legal & Company Secretary

Download - Glenmark

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