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Consolidated Statement of Cash Flows (All amounts in millions of Indian Rupees, unless otherwise stated) Particulars Year ended 31 March 2011 (A) Cash inflow/(outflow) from operating activities Profit before tax 4,815.53 Adjustments to reconcile profit before tax to net cash provided by operating activities: Depreciation and amortisation 946.78 Employee share based compensation 82.71 Interest expense 1,604.55 Interest income (38.97) Profit on sale of assets (3.52) Other provisions 48.32 Bad debts and provision for doubtful debts 98.60 Unrealized exchange differences (net) (841.94) Operating profit before changes in operating assets and liabilities 6,712.06 Changes in operating assets and liabilities Restricted cash (3.21) Accounts receivable 3,011.77 Other assets (1,923.86) Accounts payable and other liabilities 2,443.39 Net changes in operating assets and liabilities 3,528.09 Income taxes paid (937.54) Net cash provided by operating activities 9,302.61 (B) Cash inflow/(outflow) from investing activities Interest received 38.97 Payments for purchase of property, plant and equipment and intangible assets (4,011.60) Proceeds from sale of property, plant and equipment 303.13 Net cash used in investing activities (3,669.50) (C) Cash inflow/(outflow) from financing activities Proceeds from long-term borrowings 8,346.01 Repayments of long-term borrowings (8,888.59) Repayments of short-term borrowings, net (2,037.36) Interest paid (1,458.97) Proceeds from issue of share capital 40.86 Acquisition of non-controlling interest (232.25) Dividend paid (including tax on dividend) (125.82) Net cash used in financing activities (4,356.12) Effect of exchange rate changes on cash (364.10) Net increase in cash and cash equivalents 912.89 Cash and cash equivalents at the beginning of the year 1,035.83 Cash and cash equivalents at the end of the year (refer NOTE C) 1,948.72 (The accompanying notes are an integral part of these consolidated financial statements) For Walker, Chandiok & Co. Chartered Accountants For and on behalf of the Board of Directors Khushroo B. Panthaky Glenn Saldanha Cheryl Pinto Partner Chairman & Managing Director Director Place: Mumbai Date: 10 May 2011 Marshall Mendonza Vice President - Legal & Company Secretary 82 GLENMARK PHARMACEUTICALS LIMITED
Notes to Consolidated Financial Statements (All amounts in millions of Indian Rupees, unless otherwise stated) NOTE A – BACKGROUND INFORMATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1. NATURE OF OPERATIONS Glenmark Pharmaceuticals Limited (“Glenmark” or ‘the Company’) and its subsidiaries (together referred to as ‘the Group’) are primarily engaged in the business of development, manufacture and marketing of pharmaceutical products. The Group has a significant presence in branded generics markets across emerging economies including India and also has a fast growing generics business in the United States and Europe. The Group also markets active pharmaceutical ingredients to regulated and semi-regulated markets. The Group is actively involved in the discovery of new molecules both NCEs (new chemical entities) and NBEs (new biological entities). The Group`s research and development facilities are located at Mahape, Sinnar and Taloja in India, North Oxford in the United Kingdom and at La Chaux-de-fonds in Switzerland. The manufacturing facilities of the Group in India are located at Nasik, Goa, Baddi, Nalagarh, Indore, Ankleshwar, Mohol and Kurkumbh. Overseas manufacturing facilities are located in Brazil, Czech Republic and Argentina. 2. GENERAL INFORMATION AND COMPLIANCE WITH SEBI CIRCULAR 2.1 GENERAL INFORMATION Glenmark Pharmaceuticals Limited, a public limited company, is domiciled in Mumbai, India and is the Group’s ultimate parent company. The registered office of Glenmark Pharmaceuticals Limited is at B/2, Mahalaxmi Chambers, 22 Bhulabhai Desai Road, Mumbai - 400 026, India. The Company’s shares are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE). The Company had issued Foreign Currency Convertible Debt instruments which were traded on the Singapore Stock Exchange (SGX). The consolidated financial statements of Glenmark Group are prepared and presented in millions of Indian Rupees (‘INR’), the Company’s functional currency. The financial statements for the year ended 31 March 2011 were approved by the Board of Directors on 10 May 2011. Financial statements once approved by the Board of Directors are generally not amended. 2.2 COMPLIANCE WITH SEBI CIRCULAR As permitted by Securities Exchange Board of India (‘SEBI’) circular CIR/CFD/DIL/1/2010 dated 5 April 2010 (hereinafter referred to as ‘SEBI Circular’), the Group has voluntarily chosen to present its consolidated financial statements in accordance with International Financial Reporting Standards after taking benefit of the additional exemptions provided vide the SEBI Circular (hereinafter referred to as ‘IFRS’). Accordingly, the Group has: • prepared and presented the financial statements for the year ended 31 March 2011 in accordance with IFRS instead of the accounting standards specified in Section 211(3C) of the Companies Act, 1956 (‘Indian GAAP’); • elected to provide the figures for the comparative period as per Indian GAAP as permitted by the SEBI Circular and not as per IFRS as required by International Financial Reporting Standard 1, ‘First time adoption of International Financial Reporting Standards’ and International Accounting Standard 1, ‘Presentation of Financial Statements’. However, as the classification of the individual line items is not consistent and comparable between the two periods, the figures for the comparative period are not presented alongside that of the current year. Accordingly, these consolidated financial statements should be read along with the consolidated financial statements for the year ended 31 March 2010 presented in the Annual Report for the year ended 31 March 2010; • not presented reconciliations between the equity and comprehensive income as per IFRS and Indian GAAP for the comparative period, as the Group has not prepared financial information in accordance with IFRS for the comparative period as indicated above; and • not presented a reconciliation of significant differences between the figures as disclosed as per IFRS for the year ended 31 March 2011 and the figures as they would have been if Indian GAAP was adopted for the year ended 31 March 2011 as required by the SEBI Circular as the Group has not prepared consolidated financial statements in accordance with Indian GAAP for this period. These are the Group’s first financial statements prepared in accordance with IFRS (see Note EE for explanation of the transition to IFRS). 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 3.1 OVERALL CONSIDERATIONS The consolidated financial statements have been prepared using accounting policies specified by those IFRS that are in effect as at 31 March 2011. The significant accounting policies that have been used in the preparation of these consolidated financial statements are summarised below. These accounting policies have been used throughout the periods presented in the financial statements, except where the Group has applied certain accounting policies and exemptions upon transition to IFRS (see Note EE for details). An overview of standards, amendments and interpretations to IFRSs issued but not yet effective, and which have not been adopted early by the Group are presented in Note A - 6. The consolidated financial statements have been prepared on a going concern basis. Annual Report 2010-2011 83
Page 35 and 36: Profiles of Directors Mr. Gracias S
Page 37 and 38: DIRECTORS Mr. D. R. Mehta, Mrs. B.
Page 39 and 40: 3. Metformin ER Tablets 1000 mg 4.
Page 41 and 42: ANNEXURE - B Disc losure in the Dir
Page 43 and 44: Report on Corporate Governance Purs
Page 45 and 46: 5. Shareholders’/Investors’ Gri
Page 47 and 48: Distribution Schedule as on 31 Marc
Page 49 and 50: Market Price Data: High, low during
Page 51 and 52: Certification by the Chief Executiv
Page 53 and 54: Auditors’ Report To, The Members
Page 55 and 56: (b) The dues outstanding in respect
Page 57 and 58: Profit and Loss Account (All amount
Page 59 and 60: Cash Flow Statement (All amounts in
Page 61 and 62: Schedules annexed to and forming pa
Page 81 and 82: Additional information as required
Page 83 and 84: Consolidated Statement of Financial
Page 85: Consolidated Statement of Comprehen
Page 89 and 90: the foreign entity and translated i
Page 91 and 92: The Group’s internal drug develop
Page 93 and 94: Financial liabilities are recognise
Page 95 and 96: In those cases where the possible o
Page 97 and 98: NOTE B - BASIS OF CONSOLIDATION The
Page 99 and 100: NOTE H - PROPERTY, PLANT AND EQUIPM
Page 101 and 102: Working Capital Facilities is secur
Page 103 and 104: NOTE R - MATERIALS CONSUMED Materia
Page 105 and 106: Net compensated absence cost for th
Page 107 and 108: NOTE Y - SEGMENT REPORTING The Chie
Page 109 and 110: The Group’s trade and other recei
Page 111 and 112: As at 31 March 2011, the Group’s
Page 113 and 114: Depreciation Further, depreciation
Page 116 and 117: GLENMARK PHARMACEUTICALS LIMITED Re
Page 118: GLENMARK PHARMACEUTICALS LIMITED Re

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