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Particulars 31 March 2011
Deferred income tax liabilities - Non-current
Other current assets 25.14
Difference in depreciation on Property, plant and equipment 1,451.16
1,476.30
Net deferred income tax asset 1,081.36
In assessing the reliability of deferred income tax assets, management considers whether it is more likely than not that
some portion or all of the deferred income tax assets will be realised. The ultimate realisation of deferred income tax assets
is dependent upon the generation of future taxable income during the periods in which the temporary differences become
deductible. The amount of the deferred income tax assets considered realisable, however, could be reduced in the near
term if estimates of future taxable income during the carry forward period are reduced.
NOTE O - EQUITY AND RESERVES
a) Ordinary shares
The Company presently has only one class of ordinary shares. For all matters submitted to vote in the shareholders
meeting, every holder of ordinary shares, as reflected in the records of the Company on the date of the shareholders’
meeting, has one vote in respect of each share held. All shares are equally eligible to receive dividends and the
repayment of capital in the event of liquidation of the Company.
The Company has an authorised share capital of 350,000,000 equity shares of ` 1 each.
b) Dividends
Indian statutes mandate that dividends be declared out of distributable profits only after the transfer of up to 10
percent of net income computed in accordance with regulations to a general reserve. Should the Company declare
and pay dividends, such dividends are required to be paid in INR to each holder of equity shares in proportion to the
number of shares held.
The Company had declared dividend payout of ` 0.40 per share.
c) Reserves
Additional paid-in capital – The amount received by the Company over and above the par value of shares issued
(share premium) is shown under this head.
Statutory reserves – The Capital redemption reserve has been created as per the requirement of Section 80 of The
Companies Act, 1956. Such reserve is not currently available for distribution to the shareholders.
Currency translation reserve – Assets and liabilities of foreign subsidiaries are translated into INR at the rate of
exchange prevailing as at the date of statement of financial position. Revenue and expenses are translated into INR
by averaging the exchange rates prevailing during the period. The exchange difference arising out of the year-end
translation is being debited or credited to Currency translation reserve account.
Accumulated earnings – Accumulated earnings include all current and prior period results as disclosed in the
income statement.
Stock compensation reserve – Stock compensation reserve consists of employee compensation cost allocated over
the vesting period of options granted to employees. Such cost is recognised in income statement and is credited to the
reserve. Upon exercise of options, such reserves are reclassified to other components of equity.
NOTE P - OPERATING REVENUE
Operating revenue comprises the following:
Particulars
Year ended
31 March 2011
Sale of goods and out licensing of intangible assets 29,473.98
Income from services 16.72
Total 29,490.70
NOTE Q - OTHER INCOME
Other income comprises the following:
Particulars
Year ended
31 March 2011
Profit on sale of property, plant and equipment 3.52
Exchange gain, others 1,300.47
Lease rent 2.20
Others 98.99
Total 1,405.18
98
GLENMARK PHARMACEUTICALS LIMITED