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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.
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