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On transition to IFRS, as mentioned in Note EE.4 of these consolidated financial statements, based on the Group’s evaluation of product development assets and intangibles under development, certain intangible assets have been derecognised in the preparation of the opening statement of financial position with a corresponding adjustment to retained earnings. NOTE J - GOODWILL Goodwill appearing as on 1 April 2010 is in relation to business combinations done prior to the transition date. As mentioned in note EE.1 the Group has availed exemption under IFRS 1 in respect of such business combinations. The net carrying amount of goodwill can be analysed as follows: Particulars 31 March 2011 Opening balance 660.57 Acquired through business combination - Impairment loss recognised - Net exchange difference (54.87) Closing balance 605.70 For the purpose of annual impairment testing, goodwill is allocated to a single cash generating unit. NOTE K - OTHER LIABILITIES Other liabilities comprise the following: Particulars 31 March 2011 Statutory dues 147.24 Employee dues 117.34 Accrued expenses 365.63 Other liabilities 286.01 Unclaimed dividend 3.66 Total 919.88 NOTE L - LONG-TERM BORROWINGS/SHORT-TERM BORROWINGS Non-current portion of borrowings Particulars 31 March 2011 Notes payable 3.24 Security deposits 31.83 Term loan from banks 6,279.12 Total Long-term liabilities 6,314.19 Less: Current portion of borrowings 111.70 Total 6,202.49 Short-term borrowings Particulars 31 March 2011 Short-term borrowings 13,548.78 Sale of receivables 1,250.00 Notes payable 3.48 Total 14,802.26 Foreign Currency Convertible Bonds (FCCB) Particulars 31 March 2011 Opening liability 1,839.02 Accrued interest 114.08 Exchange loss/(gain) 6.38 Less: Repurchase of FCCB 1,959.48 Total - The Group, on January 2006 issued ‘Zero coupon convertible bonds due 2010’ (the “Bonds”) of USD 1,000 each. The bonds are convertible at any time on and after 11 August 2007 and up to the close of business on 29 November 2010 by the holders of the Bonds (the “Bondholders”) into newly issued, ordinary shares of ` 1 each of the Group (the “Shares”) at the option of the Bondholder, at an initial conversion price of ` 582.60 per share with a fixed rate of exchange on conversion of ` 44.94 to USD 1. The bonds were redeemable at the option of the Company, on or after 10 January 2010 if the closing price of the shares for each of the 25 consecutive trading days immediately prior to the date of notice of such redemption was at least 130% of the applicable Early Redemption Amount divided by the conversion ratio or compulsorily redeemable on the maturity date of 11 January 2011 at 139.729% of its principal amount. Term loans are secured by way of exclusive charge, as the case may be, at certain locations, on Group’s fixed assets both present and future. 96 GLENMARK PHARMACEUTICALS LIMITED
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 of certain locations. Maturity profile of long-term borrowings Year ending 31 March, Amount 2012 111.70 2013 4,494.81 2014 1,676.45 2015 - And thereafter 31.23 Total 6,314.19 The fair value of long-term debt is estimated by the management to be approximate to their carrying value, since the average interest rate on such debt is within the range of current interest rates prevailing in the market. NOTE M - EMPLOYEE OBLIGATIONS Employee obligations comprise the following: Particulars 31 March 2011 Provision for compensated absences 45.14 Provision for gratuity benefit plan 86.27 Others 9.61 Total 141.02 NOTE N - TAXES Taxes for the year comprise the following: Particulars 31 March 2011 Current income tax expense 504.92 Deferred income tax benefit (267.72) Total 237.20 The relationship between the expected tax expense based on the applicable tax rate of the Group and the tax expense actually recognised in the income statement can be reconciled as follows: Particulars 31 March 2011 Effective tax rate 33.99% Expected tax expense at prevailing tax rate 1,599.61 Tax adjustment for tax-exempt income - Income exempt from tax (1,320.66) Other tax adjustments - Additional deduction for R & D Expenditure (95.60) - Unrecognised tax benefit on losses of subsidiaries 285.54 - Disallowance under income tax 98.56 - Disallowed expenditure on share based payments 16.94 - Taxes for previous periods (140.58) - Impact on account of rate change on deferred tax for future years (40.80) - Impact of tax rate difference in subsidiaries (165.52) - Others (0.29) Actual tax expense net 237.20 No temporary differences resulting from investments in subsidiaries or associates qualified for recognition as deferred tax assets or liabilities. The tax effect of significant temporary differences that resulted in deferred income tax assets and liabilities and a description of the items that create those differences are given below: Particulars 31 March 2011 Deferred income tax assets - Non-current Provision for credit losses 72.59 Unused tax losses 1,358.05 Minimum Alternative Tax credit entitlement 1,057.19 Other financial assets 58.41 Employee Benefits 11.42 Total 2,557.66 Annual Report 2010-2011 97
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Profiles of Directors Mr. Gracias S
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DIRECTORS Mr. D. R. Mehta, Mrs. B.
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3. Metformin ER Tablets 1000 mg 4.
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ANNEXURE - B Disc losure in the Dir
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Report on Corporate Governance Purs
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5. Shareholders’/Investors’ Gri
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Distribution Schedule as on 31 Marc
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Page 59 and 60: Cash Flow Statement (All amounts in
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Page 83 and 84: Consolidated Statement of Financial
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Page 113 and 114: Depreciation Further, depreciation
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