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Directors’ Report
Your Directors have pleasure in presenting their 33rd Annual Report and Audited Accounts of the Company for the year
ended 31 March 2011.
FINANCIAL RESULTS
(` in Millions)
Standalone
2010-2011 2009-2010
Indian GAAP Indian GAAP
Profit before Interest, Depreciation & Tax 3078.80 1724.49
Less: Interest 360.82 301.58
Less: Depreciation 209.88 212.78
Less: Tax (Current Year & Deferred Tax) 386.32 (74.50)
Profit after Tax 2121.78 1284.63
Surplus brought forward from earlier years 8511.12 7480.98
APPROPRIATIONS
Proposed Dividend on Equity Shares 108.11 107.94
Tax on Proposed Dividend on Equity Shares 17.96 17.93
Residual Dividend and Dividend Tax 0.50 0.16
Transfer to General Reserves 212.19 128.46
Balance carried to Balance Sheet 10294.14 8511.12
DIVIDEND
Your Directors recommend a Dividend of 40% (` 0.40
per equity share of ` 1/- each) to be appropriated from
the profits of the year 2010-11 subject to the approval of
the shareholders 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 ` 126.07 million (including dividend tax).
CONSOLIDATED ACCOUNTS
The Consolidated Financial Statements for the year ended
31 March 2011 have been prepared in accordance with
International Financial Reporting Standards as permitted
by SEBI. The Company has prepared information for the
previous year as per IGAAP and therefore current year
and previous year figures are not strictly comparable.
Accordingly, in preparation of these Financial Statements,
the Company has not provided comparative information or
related reconciliation as required by the SEBI Circular.
RESULTS OF OPERATIONS
On standalone basis the Company achieved a gross
revenue of ` 12122.48 million and the Standalone
operating profit before interest, depreciation & tax was
` 3078.80 million as compared to ` 1724.49 million in the
previous year.
CHANGES IN CAPITAL STRUCTURE
Issue of shares on exercise of Employees’ Stock Options:
During the year, the Company allotted 4,34,500 Equity
Shares of ` 1/- each (on pari-passu basis) pursuant to
exercise of Stock Options by the eligible employees of the
Company and its subsidiaries.
EMPLOYEE STOCK OPTION SCHEME
During the year, Stock Options have been issued to the
employees of the Company and its subsidiaries. On
exercising the convertible options so granted, the paid-up
equity share capital of the Company will increase by a like
number of shares.
The details of stock options granted by the Company are
disclosed in compliance with Clause 12 of the Securities
and 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.
SUBSIDIARY COMPANIES
During the year the Company has incorporated a subsidiary
i.e. Glenmark Arzneimittel GmbH, Germany.
The Ministry of Corporate Affairs has vide its General
Circular No.: 2, 2011 dated February 8, 2011 and 3, 2011
dated February 21, 2011 granted a general exemption
under Section 212(8) of the Companies Act, 1956 in
relation to the subsidiaries of the Company provided the
Board of Directors of the Company by a resolution in
writing give consent for not attaching the Balance Sheet,
the Profit and Loss account and the annexures thereto.
The Board of Directors at their meeting, consented for
not attaching the Balance Sheet, Profit and Loss Account
and annexures thereto of the Susidiaries. The Audited
Accounts of the subsidiaries together with its Directors’
Report and Auditors’ Report are available for inspection
of members on any working day at the Corporate Office
of the Company between 11 a.m. and 1 p.m.
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GLENMARK PHARMACEUTICALS LIMITED