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Given below is the summary of financial assets as categorised in IAS 39: Particulars 31 March 2011 Non-current assets Available - for - sale 2.68 Held - to - maturity 278.58 281.26 Current assets Available - for - sale - Loans and receivables (including Cash and cash equivalents) 17,229.51 NOTE AA - OTHER FINANCIAL LIABILITIES Trade and other payables principally comprise amounts outstanding for trade purchases and ongoing costs. The management consider that the carrying amount of trade payables approximates to their fair value. Given below is the summary of financial liabilities as categorised in IAS 39: Particulars 31 March 2011 Non-current liabilities Borrowings: Financial liabilities at amortised cost 6,202.49 Current liabilities Borrowings: Financial liabilities at amortised cost 14,913.96 Trade and other payables: Financial liabilities at amortised cost 7,493.94 NOTE BB - FAIR VALUE HIERARCHY The following table presents financial assets and liabilities measured at fair value in the statement of financial position in accordance with the fair value hierarchy. This hierarchy groups financial assets and liabilities into three levels based on the significance of inputs used in measuring the fair value of the financial assets and liabilities. The fair value hierarchy has the following levels: - Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; - Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and - Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). The level within which the financial asset or liability is classified is determined based on the lowest level of significant input to the fair value measurement. The financial assets and liabilities measured at fair value in the Consolidated statement of financial position are grouped into the fair value hierarchy as follows: Particulars Level 1 Level 2 Level 3 Total Assets Available - for - sale financial assets – Investment in unlisted securities - - 2.64 2.64 Liabilities - - - - Measurement of fair value The methods and valuation techniques used for the purpose of measuring fair value are unchanged from the previous year. Investments in unlisted securities The fair value of the investment cannot be determined as there are no quoted market prices at the reporting date for unlisted securities and hence they have been valued at cost. Such investments have been categorised in Level 3. NOTE CC - RISK MANAGEMENT OBJECTIVES AND POLICIES The Group is exposed to a variety of financial risks which results from the Group’s operating and investing activities. The Group’s risk management is co-ordinated by its parent company, in close co-operation with the board of directors and the core management team of the subsidiaries, and focuses on actively securing the Group’s short to medium term cash flows by minimising the exposure to financial markets. The Group does not actively engage in the trading of financial assets for speculative purposes nor does it write options. Financial assets that potentially subject the Group to concentrations of credit risk consist principally of cash equivalents, accounts receivables, other receivables, investment securities and deposits. By their nature, all such financial instruments involve risk including the credit risk of non-performance by counter parties. The Group’s cash equivalents and deposits are invested with banks. 104 GLENMARK PHARMACEUTICALS LIMITED
The Group’s trade and other receivables are actively monitored to review credit worthiness of the customers to whom credit terms are granted and also avoid significant concentrations of credit risks. The Group’s interest-rate risk arises from long-term borrowings. Borrowings obtained at variable rates expose the Group to cash flow interest-rate risk. Borrowings issued at fixed rates expose the Group to fair value interest-rate risk. Foreign Currency sensitivity The overseas entities of the Group operate in different countries. The functional currency of such entities is the currency being used in that particular country. The bulk of contributions to the Group’s assets, liabilities, income and expenses in foreign currency are denominated in US Dollar and EURO. Apart from US Dollar, foreign currency transactions are entered into by entities in GBP, Swiss Francs and several other currencies as applicable in the country in which the particular entity operates. However, the size of these entities relative to the total Group and the volume of transactions in such currencies are not material. Thus, the foreign currency sensitivity analysis has been performed in relation to US Dollar (USD) and Euro (EUR). US Dollar conversion rate was ` 44.74 at the beginning of the year and scaled to a high of ` 47.51 and to low of ` 44.05. The closing rate is ` 44.68. Considering the volatility in direction of strengthening dollar upto 5%, the sensitivity analysis has been disclosed at 5% movements on strengthening and weakening effect for presenting comparable movement due to currency fluctuations. Foreign currency denominated financial assets and liabilities, translated into USD at the closing rate, are as follows: Nominal amounts 31 March 2011 USD INR Short-term exposure Financial assets 39.08 1,745.87 Financial liabilities 236.69 10,575.15 Short-term exposure 275.77 12,321.02 Long-term exposure Financial assets - - Financial liabilities 116.45 5,202.96 Long-term exposure 116.45 5,202.96 If the INR had strengthened against the US Dollar by 5% then this would have had the following impact: 31 March 2011 USD INR Net results for the year 15.70 701.60 Equity - - If the INR had weakened against the US Dollar by 5% then this would have had the following impact: 31 March 2011 USD INR Net results for the year (15.70) (701.60) Equity - - EUR conversion rate was ` 60.37 at the beginning of the year and scaled to a high of ` 63.98 and to low of ` 55.99. The closing rate is ` 63.22. Considering the volatility in direction of strengthening EUR upto 5%, the sensitivity analysis has been disclosed at 5% movements on strengthening and weakening effect for presenting comparable movement due to currency fluctuations. Foreign currency denominated financial assets and liabilities, translated into EUR at the closing rate, are as follows: Nominal amounts 31 March 2011 EUR INR Short-term exposure Financial assets 1.63 103.25 Financial liabilities 9.79 619.22 Short-term exposure 11.42 722.47 Long-term exposure Financial assets - - Financial liabilities 8.93 564.46 Long-term exposure 8.93 564.46 Annual Report 2010-2011 105
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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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Market Price Data: High, low during
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Certification by the Chief Executiv
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Auditors’ Report To, The Members
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(b) The dues outstanding in respect
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Page 113 and 114: Depreciation Further, depreciation
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