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3.2 PRESENTATION OF FINANCIAL STATEMENTS
The consolidated financial statements are presented in accordance with IAS 1 Presentation of Financial
Statements (Revised 2007), except as indicated in Note A-2.2 above. The Group has elected to present
the ‘Statement of comprehensive income’ in two statements: the ‘Consolidated Income statement’ and the
‘Consolidated Statement of Other Comprehensive Income’.
In future periods, two comparative periods will be presented for the statement of financial position when the Group:
(i) applies an accounting policy retrospectively,
(ii) makes a retrospective restatement of items in its financial statements, or
(iii) reclassifies items in the financial statements.
3.3 BASIS OF CONSOLIDATION
The Group’s financial statements consolidate those of the Company and all of its subsidiary undertakings drawn
up to the dates specified in Note B. Subsidiaries are all entities over which Glenmark Pharmaceuticals Limited
has the power to control the financial and operating policies. In assessing control, potential voting rights that
currently are exercisable are taken into account. The financial statements of subsidiaries are included in the
consolidated financial statements from the date that control commences until the date that control ceases.
Glenmark Pharmaceuticals Limited ob tains and exercises control through voting rights.
Unrealised gains and losses on transactions between the Company and its subsidiaries are eliminated. Where
unrealised losses on intra-group asset sales are reversed on consolidation, the underlying asset is also tested
for impairment losses from the group perspective. Amounts reported in the financial statements of subsidiaries
have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group.
Profit or loss and other comprehensive income of subsidiaries acquired or disposed off during the year are
recognised from the effective date of acquisition, or up to the effective date of disposal as appropriate.
Non-controlling interests are presented in the consolidated statement of financial position within equity,
separately from the equity of the owners of the parent.
Non-controlling interests represent the portion of a subsidiary’s profit or loss and net assets that is not held by
the Group. Profit or loss and each component of other comprehensive income are attributed to the owners of the
parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent
and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.
3.4 BUSINESS COMBINATIONS
Business combinations are accounted for using the purchase method. The purchase method involves the
recognition of the acquiree’s identifiable assets and liabilities, including contingent liabilities, regardless of
whether they were recorded in the financial statements prior to acquisition. On initial recognition, the assets
and liabilities of the acquired subsidiary are included in the consolidated statement of financial position at their
fair values, which are also used as the basis for subsequent measurement in accordance with the Group’s
accounting policies.
Goodwill is stated after separating out identifiable intangible assets. Goodwill represents the excess of
consideration transferred and any non-controlling interests over the fair value of the identifiable net assets of
the acquiree at the date of acquisition. Any excess of identifiable net assets over the consideration transferred
and any non-controlling interest is recognised in income statement immediately after acquisition as a ‘gain on
bargain purchase’.
3.5 FOREIGN CURRENCY TRANSLATION
The consolidated financial statements are presented in Indian Rupees (‘INR’), which is also the functional
currency of the parent company, Glenmark Pharmaceuticals Limited, being the currency of the primary economic
environment in which it operates.
Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of entities within the
Group at exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting
from the settlement of such transactions and from the remeasurement of monetary items at year-end exchange
rates are recognised in income statement. Non-monetary items measured at historical cost are translated using
the exchange rates at the date of the transaction (not retranslated). Non-monetary items measured at fair value
are translated using the exchange rates at the date when fair value was determined.
Foreign currency gains and losses are reported on a net basis.
Foreign operations
In the Group’s consolidated financial statements, the assets, liabilities and transactions of foreign operations
are translated into INR, the Group’s presentation currency upon consolidation. The functional currencies of the
entities in the Group have remained unchanged during the reporting period.
On consolidation, liabilities have been translated into INR at exchange rates at the reporting date. Goodwill and
fair value adjustments arising on the acquisition of a foreign entity have been treated as assets and liabilities of
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GLENMARK PHARMACEUTICALS LIMITED