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Dividend accounts represent balances maintained in specific bank accounts for payment of dividends. The use of these
funds is restricted and can only be used to pay dividends. The corresponding liability for payment of dividends is included
in ‘Other Current Liabilities’.
Time deposits represent fixed deposits placed with banks and deposits under lien for bank guarantees and margin deposits.
Most of these deposits have been placed for a one-year period, and are automatically renewed.
NOTE E - ACCOUNTS RECEIVABLE, NET
Particulars 31 March 2011
Accounts receivables 11,695.63
Provision for doubtful debts (387.49)
Total 11,308.14
Trade receivables are usually due within 60-180 days. Generally and by practise most customers enjoy a credit period of
approximately 180 days and are not interest bearing. All trade receivables are subject to credit risk exposure. However,
Group does not identify specific concentrations of credit risk with regard to trade and other receivables, as the amounts
recognised represent a large number of receivables from various customers.
Given below is ageing of accounts receivable spread by period of six months:
Particulars 31 March 2011
Outstanding for more than 6 months 3,094.39
Others 8,213.75
Total 11,308.14
The trade receivables have been recorded at their respective carrying amounts and are not considered to be materially
different from their fair values as these are expected to realise within a short period from the date of statement of financial
position. All of the Group’s trade receivables have been reviewed for indicators of impairment. Certain trade receivables
were found to be impaired and an allowance for credit losses of ` 152.56 has been recorded. The movement in the
allowance for credit losses can be reconciled as follows:
Particulars 31 March 2011
Opening balance 234.93
Amounts written off (uncollectible) -
Impairment loss 152.56
Impairment loss reversed -
Closing balance 387.49
NOTE F - INVENTORIES
Inventories comprise the following:
Particulars 31 March 2011
Raw materials 1,837.33
Packing material 502.74
Work-in-process 1,345.01
Stores and spares 71.29
Finished goods 4,313.75
Total 8,070.12
No reversal of previous write-downs was recognised as a reduction of expense in the year ended 31 March 2011. Inventories
at certain locations are pledged as securities for borrowings used for financing the working capital requirements.
NOTE G - OTHER CURRENT ASSETS
Other current assets comprise the following:
Particulars 31 March 2011
Input taxes receivables 822.05
Advance to vendors 406.96
Short term deposits 109.00
Other receivables 605.16
Deposits and advances receivable in cash and kind 2,029.48
Total 3,972.65
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GLENMARK PHARMACEUTICALS LIMITED