5 Research facilities
13 Manufacturing facilities
in 4 countries
Key Financials 5
Innovation 8
Industry Outlook 14
Risk Management 28
Corporate Information 29
Financial Statements 30
F rom the CEO’s Desk
Dear Friends,
In the last one year, we have seen a radical shift in the The key aspect of our strategy was to improve our cash
global pharmaceutical industry, perennially altering the flow position. We focused on cost optimization across
landscape that we operate in. operating markets and receivables were given utmost
On one hand, we have seen many large pharmaceutical priority. On the ground, we targeted improving the working
players shed their orthodox thinking and come up with out capital cycle that deteriorated in the previous financial year
of the box strategies to bolster their presence in the branded due to the recession and through our sustained efforts in FY
generics markets. The strategies include significant 10, we managed to reduce net working capital. At the same
investments in India and other emerging markets because of time, we deferred all capital expenditure and executed only
which we have seen some big ticket acquisitions by global those projects in which market demand was imminent. Our
pharma majors as they try to get a slice of India's fast growing acquisition plans were also put on hold temporarily.
pharmaceutical market. Simultaneously, there has been a
The key aspect of our strategy was to improve
significant slowdown in innovative R&D investment by these
our cash flow position
pharma majors. Nearly all of them have cut their innovative
R&D budgets sharply and also downsized their manpower. Simultaneously, we worked on improving our income by
At the same time, Indian companies that have been increasing sales across markets. We took a multi-pronged
operating in developed and emerging markets hit a approach towards this – first, by concentrating on 'power
roadblock. While the US FDA slowed down its ANDA brands' across geographies and second, by consistently
approval process impacting new launches, emerging introducing new products in every market we operate in.
markets lost much of their shine as they were still reeling The new product introductions were in line with our strategy
from the aftershocks of the severe depression that derailed to be dominant in certain therapeutic categories across
many of these economies. operating markets.
We began the financial year on an unsteady note against The other key long-term aspect of this strategy was the
this backdrop of tumultuous change in the industry and an decision of continuing with healthy investments in R&D. We
ongoing global recession. The preceding year was one of the believe innovation R&D has a bright future at Glenmark and
toughest Glenmark had ever faced – almost all our our conscious effort to maintain R&D as a priority in our
businesses were impacted severely in FY* 09. Our drug business plans is beginning to yield fruit once again. The
discovery R&D lost out on potential revenues as global recent deal with Sanofi-Aventis, where we out-licensed our
pharma was wary of acquiring any molecules that were first-in-class molecule for neuropathic pain - GRC 15300, is a
under development. In addition, as sales slumped across major achievement on this front, as Glenmark is arguably the
markets, we were hit badly as our fixed overheads continued first company globally that has managed to progress a
to be high due to significant investments we had made into TRPV3 molecule to clinical trials. It is for this reason that the
fixed assets just before the crisis emerged.
The deal with Sanofi-Aventis for GRC 15300 reaffirms
At the start of this year, the clouds of uncertainty still
our commitment to cutting-edge work in the area
loomed large over both the short-term and long-term
of drug discovery
horizon. We were confronted with several challenges and it
seemed like we were veering towards a situation that would fourth largest pharma company in the world, Sanofi-Aventis,
take us at least two financial years to get back on the growth has decided to invest in our molecule. This reaffirms our
track. commitment to cutting-edge work in the area of drug
However, we beat the odds and managed a discovery.
transformation in less than a year and the numbers at the On the specialty side, the India business continued to
end of the financial year speak for themselves. While sales for remain our shining jewel registering strong growth at 19 %.
the entire year grew by 18 %, the net profit for the company The Rest of World markets, particularly Russia and CIS,
increased by 71 % to Rs. 3,310.32 Mn. rebounded extremely fast to post a stunning growth of 64 %.
Glenmark's transformation was not in the least bit We have also seen a significant increase in operating margins
serendipitous. It was the result of a carefully crafted and from these businesses and their contribution has increased
efficiently implemented strategy that helped us recover sharply. Even though the Central Eastern Europe (CEE)
quickly and also laid the foundation for sustained growth in business registered good growth, we expect much more
the near future. from this region. While CEE has recovered quickly and
* Fiscal Year ending March 31st
04
K ey Financials
Revenue Trends
25,006.47
Total Revenue 21,160.33
20,092.01
Outlicensing Revenue
Consolidated Revenue
excluding Outlicensing 12,515.34
7,575.89
FY 06 FY 07 FY 08 FY 09 FY 10
Consolidated Revenue excluding
7,310.26 11,120.22 17,689.28 21,160.33 24,774.07
Outlicensing
Outlicensing Revenue 265.63 1,395.12 2,402.73 - 232.40
6.27
7.19
2.8%
80.93 3.2%
27.2%
159.33 297.31 221.62 151.45 56.71
53.8% 28.51 57.3% 42.7% 68.4% 25.6%
28.55
9.5%
FY 06 FY 07 FY 08 FY 09 FY 10
Rs Mn USD Mn Rs Mn USD Mn Rs Mn USD Mn Rs Mn USD Mn Rs Mn USD Mn
Turnover 7,575.89 171.09 12,515.34 283.54 20,092.01 498.81 21,160.33 455.35 25,006.47 523.81
Other Income 128.20 2.90 156.99 3.56 458.20 11.38 1,740.12 37.44 489.64 10.26
PBDIT 1,500.26 33.88 4,419.85 100.13 8,463.46 210.12 6,289.95 146.97 6,685.29 140.04
Interest 147.20 3.32 384.08 8.70 631.68 15.68 1,404.77 30.23 1,640.21 34.36
Depreciation 232.34 5.25 422.59 9.57 716.80 17.80 1,026.83 22.09 1,206.10 25.26
PBT 1,120.72 25.31 3,613.18 81.86 7,114.98 176.64 2,688.81 57.86 3,838.98 80.41
Tax 240.96 5.44 512.58 11.61 793.87 19.71 754.08 16.23 528.66 11.07
PAT 879.76 19.87 3,100.60 70.25 6,321.11 156.93 1,934.73 41.63 3,310.32 69.34
Highlights
For the financial year 2009-10, Glenmark's consolidated revenue increased to Rs. 25,006.47 Mn (USD 523.81
Mn) from Rs. 21,160.33 Mn (USD 455.35 Mn) in the previous year, registering a growth of 18 %. Revenue from the
generics business was at Rs. 10,580.37 Mn (USD 221.62 Mn) as against Rs. 9,857.43 Mn (USD 212.13 Mn) the previous
year, registering a growth of 7 %. The specialty formulations business grew by 26% to take the revenue to Rs.
14,193.70 Mn (USD 297.31 Mn) from Rs. 11,302.90 Mn (USD 243.23 Mn) registered the previous year. The
Consolidated Net Profit for the financial year was at Rs.3,310.32 Mn (USD 69.34 Mn) as compared to Rs. 1,934.73 Mn
(USD 41.63 Mn) for the previous financial year, an increase of 71 %
06
HIGHLIGHTS & OBJECTIVES
FY 11
Objectives
Glenmark Pharmaceuticals Limited Glenmark Generics Limited
Formulations Business
Build a pipeline of Metered Dose Inhalers (MDI's) and Dry
Powder Inhalers (DPI's) with filings in India and select
RoW markets
Initiate filings for oncology products across new
specialty business geographies
Strengthen presence in Egypt and UAE by pursuing
innovative business models
Initiate revenue generation in Hungary and Bulgaria
Invest in capacity expansion
Brazil: Commission a new semi-solid plant to serve
Latin America region
Sikkim, India: Commission a new plant to serve the
specialty business with multiple dosage forms
Aurangabad, India: Initiate a new niche API plant to
support the NCE business and meet the captive
consumption demand for select products
Baddi, India: Expand the respiratory facility to
enhance inhalers manufacturing capability
Creating a
New Way for a New World
08
INNOVATION
PEOPLE INFRASTRUCTURE
R & D EXCELLENCE
People
Glenmark attracts and nurtures the best talent in the To focus on differentiated formulation development as well
world in a swathe of areas, including critical ones such as as development of New Drug Delivery Systems, Glenmark's
R & D and Clinical Research. It's research efforts are driven by Formulation Development R&D facility at Sinnar, India, has
a globally experienced, and versatile group of leaders, who over 80 scientists committed to produce stable, clinically
guide the whole team towards the common goal of safe and effective formulations of high quality standards.
excellence in discovery research .
Equipped with the most modern infrastructure required to carry out research activities such as medicinal chemistry,
process & analytical chemistry, in-vitro & in-vivo studies and project management.
Complete end to end setup with expertise in all areas of NCE discovery and development ranging from target selection
to clinical development
Responsible for discovering 13 NCEs in a short span of eight years, with 8 molecules having reached clinics
The centre serves as a global hub for clinical development for both NCEs and NBEs
Aims to become a world class clinical development centre, efficiently delivering a stream of novel and valuable
products for patients globally
Dedicated to the discovery and development of novel monoclonal antibodies (mAbs) with capabilities to develop
mAbs from inception through preclinical and clinical studies
Know-how is in place to discover entirely novel molecules, engineer antibodies and also carry out process
development of mAbs
State-of-the art equipment installed for up- and down-stream research with substantial capacity
Houses a 200 liter manufacturing scale-up facility
Several patents on novel monoclonal antibodies have been filed and two Phase I approvals received
10
INNOVATION
GBR 500
12
INOVATION
GRC 15300
GBR 600
GRC 17536
Crofelemer
In an effort towards enriching its pipeline with truly differentiated products, Glenmark in-licensed the NCE Crofelemer from
Napo Pharmaceuticals, USA in 2005 and received the marketing rights of the molecule for 140 countries. Crofelemer is a
potential ‘first-in-class’ anti-secretory anti-diarrheal drug for HIV-induced diarrhea, and has the potential to expand in pediatric
diarrheal and cholera induced indications, where there is a large unmet need. The molecule has a sales potential of over USD 80
Mn in Glenmark territories for the indication of HIV-induced diarrhea alone. Crofelemer has advanced from Phase II trials stage at
in-licensing, to Phase IIb trials in India and Phase III trials in US by partner companies and is slated for global launch from FY 12.
The launch of Crofelemer stands to be a potential first NCE launch by an Indian company across the globe. It would be a
significant milestone in Glenmark’s evolution, as it shall validate the company’s long term commitment towards novel drug
research. The launch shall also establish Glenmark’s capability to take a new drug through the development process, as well as,
confer immense learning in terms of handling scale up, regulatory, and global branding & pricing processes. This learning will be
pivotal for driving subsequent in-licensed / acquired novel drug launches, preparing the platform for successful in-house NCE
launches across the globe from 2015 onwards.
14
MANAGEMENT DISCUSSION & ANALYSIS
In an effort to identify and exploit new drivers for manufacturers to move more and more of their discovery
growth, the industry is quickly learning to transition research and clinical trials activities to the subcontinent or to
away from the traditional models of business. establish administrative centers there, capitalizing on India's
Companies are now looking at various options to not high levels of scientific expertise as well as low wages.
only survive but also thrive in this tough environment - Recent big ticket acquisitions such as Daichii Sankyo'-
Focusing on high-value therapies - Apart from moving Ranbaxy and Abbott – Piramal serve to highlight the
away from primary care, companies are also shifting focus growing global interest in Indian pharma majors.
from small molecule driven sales towards targeting
specialist secondary care indications. This is mostly through In keeping with the global environment and as a
the use of high-value biologic therapies in the developed direct result of it, certain key trends are prevalent in the
markets. The biologics market is set to grow by USD 41 Bn India pharma market today -
between 2009 and 2014. There is also increasing focus on Collaboration and consolidation – Not only are global
therapies such as oncology, immunology and inflammation pharma majors keen to merge and acquire Indian
in order to counteract declining sales arising from expiring companies, global Indian companies are equally on the
patents on established molecules. lookout for suitable acquisition targets of their own. As this
Moving down the value chain to partake a share of the trend catches, the highly fragmented India pharma market is
'generics' pie. As governments across the world grapple with bound to coalesce, with top players capturing the major
increasing healthcare costs, the move to lower value but share of the market.
high quality generics is swiftly happening. Generic players Widening span of drug price control – India has
are set to benefit in the short term, a benefit that big pharma steadily increased cost-containment measures over the last
is equally keen to share. few years. A larger number of drugs under price control may
Expanding reach in the emerging markets through spell lowering margins for companies in India and slow
marketing of branded and off-patent medicines in the fast down the growth numbers that are currently expected from
growing emerging markets. Hitherto focusing on traditional the domestic market.
innovative products, pharma majors are moving quickly to Increasing restrictions on pharma marketing –
acquire a portfolio of complementary generics and branded- Regulatory bodies in India have ramped up their activity
generics in keeping with the pharmaceutical market against inappropriate promotion and inadequate
requirements in key emerging markets. This access to the representation of drug side effects. Promotional activities of
emerging markets is often driven by acquisition of domestic pharma companies are increasingly under the scanner and
generics and manufacturing companies. ethical guidelines are being drawn out
Maintaining margins by cutting down costs – In the Intellectual Property landscape - The new patent
effort to improve cost, margins and hence profitability, regime, post 2005, has led to the return of the
companies are increasingly off-shoring activities such as pharmaceutical multinationals, many of which had left India
manufacturing, data management, pharmacovigilance and during the 1970s. Domestic companies are also gearing up
contract research to markets such as India and China. to the changing IP scenario by means of collaborations with
Following a reassessment of growth strategy, innovative companies, in-licensing specialty products or
collaboration through mergers and acquisitions has investing in internal research.
emerged as a key trend in the current environment. The past Overall, as global pharma majors look towards strong
few years have seen a steady spate of take-overs and 'pharmerging' markets such as India, the time is also rife for a
mergers across the industry thereby providing quick access large number of Indian players to make the best of the
to newer revenue streams. changing in dynamics. Companies now have unpreced-
Indian generic players are being viewed as attractive ented opportunities to expand in a number of fields. They are
acquisition/ merger targets, mainly due to several poised to reap significant benefits as producers of high-
established strengths that big pharma is keen to build on. quality generics while patents on key molecules expire. They
Indian companies have long been viewed as successful are being highly valued as partners in collaboration due to
generic players and have wide spread operations across key their strengths in manufacturing, low cost structures and
emerging markets. Apart from traditional strengths in presence in key generic and branded generic markets. At the
manufacturing and abundant qualified workforce, India is same time, few companies are also investing significant
also being viewed as an attractive location for carrying out resources into world-class innovative research in an effort to
low cost research and for conduct of clinical trials. Soaring move up the value chain, into a domain that was hitherto
costs of R&D and administration are persuading drug occupied entirely by the western majors.
When Glenmark spun off its generics business into Glenmark Generics Limited, it had one core philosophy in mind:
“To excel, both as an innovator company and a generics player, it is imperative to re-align the existing resources into two
separate but more competent business entities”
2 years hence, the philosophy continues to drive Glenmark as a company. The two companies, Glenmark Pharmaceuticals
Limited and Glenmark Generics Limited, have been functioning efficiently as two operationally and legally distinct entities and
this has been giving rich dividends in terms of revenue gains, as well as, resource utilization. Both the companies have clear-cut
short term and long term strategies in place that shall be driving them in the future
GGL GPL
Move down the value chain into pure generics Move up the value chain from branded
and API space generics to discovery innovation
GPL
2010 2015
Branded Transition from a branded generics player to Innovative
Generics an innovator company in a span of 5 years Drugs
Drivers & Roadmap
16
GLENMARK : THE WAY AHEAD
The company strives to establish three Representative Market Evolution Tracker across key GPL markets
focus therapy segments, viz. Dermatology,
Growth Stage
Maturity Stage
Respiratory and Oncology, as its core Brazil
strength in each of its markets, by optimizing Dermatology
Respiratory
their coverage and penetration, before Oncology
India
moving on to another therapy or geography. Dermatology
Respiratory
As a strategic monitoring tool, GPL
Russia Oncology
Therapy presence
continuously tracks its markets on a Market Respiratory Cardio-Metabolic
Evolution Tracker, which gives a clear Dermatology
GGL
High-value product selection Develop GGSA as the global Increase vertical integration
Focus on niche therapeutic manufacturing hub for level from current 20% to
areas of Dermatology, oncological products 40% to get best value
Modified Release, Hormones File oncology products in both structure
Foray into new regulated GGL and GPL geographies Enter more regulated
markets markets
A Snapshot
Specialty Business
India Formulations
As per ORG-MARG March’10, Glenmark Pharmaceuti- The India formulations unit has increasingly
cals registered a growth of 21.7% vs. Indian Pharmaceutical strengthened its business fundamentals and control on field
Market growth of 17.7%. The March'09 MAT Market Share % activities and a significant step in this direction was the
increased from last year to 1.46%. The overall revenue for FY l a u n c h o f n e w m o d u l e s w i t h i n ' G Fo r c e ' i . e .
10 grew at 19% vis-à-vis the previous year. The growth was Glenmark–Focused Reporting for complete efficiency. This
driven by significant gains in market share and rankings of has proven to be an effective business intelligence tool
top brands. which is currently live with 11 divisions and manages all field
TELMA (Telmisartan) gained 59 ranks to be at 135 employees. The newer modules bring key advantages such
(March'09 MAT ranked 194) as business intelligence, faster information flow, enhanced
TELMA-H (Telmisartan, Hydrochlorthiazide) has gained productivity and database warehousing.
63 ranks to be at 195 (March'09 MAT ranked 258)
ASCORIL (Expectorant + Mucolytic) and CANDID-B
(Clotrimazole + Beclomethasone) have maintained
ranks at 102 and 132 respectively. (March'09MAT ranked Driving growth through
194) top brands,
CANDID (Clotrimazole) has entered the annals of Top
300 brands with March' 09 MAT ranking of 290. Strengthening business
The company strengthened its footing in therapeutic fundamentals
segments such as cardiology and dermatology where
market share grew to 2.0 % (Market share March'09 MAT -
1.6%) and 8.0% (Market share March'09 MAT - 7.7%)
respectively.
18
BUSINESS UNIT PERFORMANCE
Latin America
Glenmark's revenue from its Latin American operations products in the country after a significant wait. Subsequently
registered a de-growth of 14% for FY 10, as against the the company generated its first sales in Venezuela in the
previous year. fourth quarter and is confident of building a strong presence
The growth numbers were impacted mainly on account in the country. Glenmark Venezuela set up and trained its
of the operational and systems overhaul in the Brazilian sales force and the team is now ready to rapidly ramp up
subsidiary which currently contributes the major chunk to operations.
the revenues. The company realigned the field force into Overall, the region built a growth momentum from the
strategically focused units, redeployed the over 110 strong fourth quarter as the re-organization efforts in the largest
sales force and overhauled the complete system of sales and market, Brazil, began to show results. The Latin American and
operations. The strategic intent was to increase sales force Caribbean operations posted a 30% growth in sales over the
effectiveness and the key aspects targeted were coverage same quarter in FY 09.
and call effectiveness amongst others. With steady growth registering in Brazil, the region
Into its second year, the Mexico subsidiary recorded its should register strong sales growth and margin
first sale with the successful launches of three new improvements in the coming year on the back of new
dermatology products. The operations also expanded to product launches in Brazil, Mexico, Venezuela, Peru and
include important drugstore chains into the distribution Ecuador. For the entire year, Glenmark filed 65 product (SKU)
channel, hence widening the reach for its dermatology dossiers and received 51 product (SKU) approvals across the
portfolio. Latin American region, reflecting its commitment towards
In the third quarter, the Venezuela unit received rapid expansion of business in this geography.
authorization from the government to import and distribute
The Africa and Middle East region achieved its highest After the tough economic conditions prevalent in 2008
ever sales with secondary sales growth exceeding 40% for FY the CIS economy substantially recovered in 2009 thus
10. The 9 regional power brands proved to be the engine of fuelling growth in the overall pharmaceutical industry.
this growth, contributing to more than 75 % of the sales of Glenmark outperformed the overall industry with strong
the region. A number of countries within the region showed growth numbers as the Russian operations registered an
a significant rise in sales led by South Africa, Kenya, Sudan, overall sales increase of 65% (RuR) over the previous financial
Nigeria, Tanzania and Yemen. The year also saw the opening year. The secondary sales for the Russian subsidiary also
of two new high potential markets – Egypt and UAE which showed a good growth in FY 10. According to Pharmexpert
have a total market size exceeding USD 3 Bn. Both the market data, on a MAT basis, the company grew at a rate of 50% (the
saw new products being launched by Glenmark in its core overall market grew at 22%) in FY 10 and the market share
therapy areas to build its presence and prescription base. consistently improved, thereby improving market rankings
to 77 in March’10 from 90 in March’09.
Africa and Middle East region achieved
its highest ever sales with a growth Outperformed the overall industry
exceeding 40% for FY10 with strong growth numbers as the
Russian operations registered
Glenmark consolidated its position as one of the an overall sales increase of 65%
dominant players in the industry in Kenya, Sudan, Zambia,
Malawi and Mauritius. The focus on its core therapies and The company continued with its focus on brand building
power brand strategy saw it emerge as a strong leader in in the region. The year was marked by several successful
dermatology, respiratory and oncology. In terms of launches in the dermatology segment such as Powercort
therapies, dermatology and respiratory contributed more (Clobetasol), Momate S (Mometasone + Salicylic acid) and
than 50 % of the total sales of the region. In Kenya, Glenmark Elovera (Aloevera + Vitamin E). The company has
launched a range of new products in the metabolic segment consolidated its position in the dermatology segment and is
and a special task force was setup to build its brands in this one of the fastest growing companies in the segment. The
fast growing segment. This heralds the entry of Glenmark in period also saw Glenmark strengthen its position from 26
hitherto untapped but fast growing chronic market. (RuR, March’09, Pharmexpert) to 21 (RuR , March‘10
Glenmark is already a leading pharmaceutical company in Pharmexpert) in dermatology. Innovative medico-
the acute market in Kenya and will now be able to leverage its marketing and image-building activities were carried out
equity in metabolic and respiratory segments. with key dermatologists to strengthen relationships in this
In Sudan Glenmark further consolidated its position as focus therapeutic area for Glenmark. The company targets to
the No.1 company in dermatology by launching be among the top few dermatology players within the next
cosmeceutical preparations, which complement its existing two years.
dermatology products. Glenmark is also a leading player in In the respiratory segment, Ascoril tablets - a line
anti- diabetic market in Sudan and had a few ‘first-to-market’ extension of the power brand Ascoril cough syrup was
combination product launches in the therapy launched and it received an encouraging response from
Glenmark South Africa increased its focus on prescribers, further consolidating its position in the
dermatology with the launch of 4 cosmeceutical expectorant market. All other power brands of the company
preparations under the umbrella brand 'Synacare' that continued to show a healthy growth.
support its already strong dermatology franchise. A number On the regulatory front, 15 new product dossiers were
of in-licensing agreements were signed for launch of filed with the Russian regulatory authorities. These future
differentiated and high potential products which will further launches are expected to sustain the high growth
consolidate Glenmark's standing in dermatology in South momentum currently prevailing at Glenmark Russia.
Africa. The dermatology market in South Africa is worth more Amongst the CIS markets, the company continued to
than USD 100 Mn and is growing at an impressive rate. focus on the key markets of Ukraine, Kazakhstan and
Nigeria saw a significant expansion of Glenmark Uzbekistan which demonstrated a steady positive trend in
operations with a new distribution structure being created secondary sales. Leading national distributors were
along with the launch of a specialty team branded “Acme” to appointed in all three countries thus ensuring wider and
specifically focus on dermatology and gynecology. This faster availability of all Glenmark products. Glenmark
novel distribution structure will ensure greater amount of products are being increasingly well accepted in the CIS
brand building efforts by the field force, thereby increasing markets and the company is continuing to focus on the
field force effectiveness, especially in specialized therapy therapeutic areas of respiratory and dermatology through
areas. doctor promotions.
20
BUSINESS UNIT PERFORMANCE
Asia
The Asian markets continued to show steady growth in expected growth figure of 6% in the market. The Polish
FY 10. Glenmark Asia witnessed a 33 % increase in secondary operations have now undergone a complete overhaul and
sales over FY 09. In Sri Lanka, Glenmark entered the league of strong growth numbers are expected to emerge in the
the top 20 pharmaceutical companies in the country (IMS Q4 coming financial year.
2009). Ascoril and Candid-B rank amongst the top 100 Effective April 1, 2009, the Czech subsidiary changed its
products in the country. The change in political climate also name from Medicamenta to Glenmark Pharmaceuticals.
led to spread of coverage in North and East Sri Lanka leading Glenmark’s business in Czech Republic and Slovakia
to an expansion in the overall market. performed well in FY 10 with strong growth on focus brands.
Consequently, market rankings for Glenmark in Czech
Witnessed a 33% increase in secondary Republic moved to the 42nd position (Q4/FY10) from 45th in
previous year (Q4/FY09).
sales with Sri Lanka operations entering
The Romanian business continued on its path of strong
the league of the top 20 pharmaceutical performance, nearly doubling its secondary sales as
companies in the country compared to the previous financial year. Glenmark Romania
moved up in market rankings to 49 on March’10 MAT basis
South East Asian markets such as Malaysia and and 45 on a monthly basis in March'10. The year saw several
Philippines continued on a steady growth path with focus on successful product launches in the market including anti-
brand building and strengthening of prescription trends. hypertensives such as Nebivolol and Perindopril which were
Glenmark Malaysia launched a new anti-infective Kefnir the first generics to be launched in the market. Both the
(cefdinir) which has been well accepted by Malaysian launches have met with a high degree of success and have
doctors. The suspension formulation of Kefnir was a market share in units of over 10% (amongst generics).
‘first-to-market' launch in the country, thereby leading to Amongst the innovator products Glenmark Romania
high focus on concept-building activities amongst the reported a continuing positive performance with both Aflen
prescribers. The Philippines subsidiary expanded its sales (Triflusal) and Eneas (Enalapril + Nitrendipine) in just a year
force during the year, thereby strengthening its presence.
Glenmark Philippines moved up in market ranking to 45 in Registered 37% growth
March’10 from 68 in March'09. on the back of highly successful
Vietnam operations continued to perform and gained brand launches
entry into many large hospitals in Ho Chi Minh City, Mekong
Delta and Hanoi region, in keeping with its strategy to tap and a half of sales. Aflen has garnered 10% market share in
into the institutional sector. The company also launched its units and is ranked 3rd in the anti-platelet aggregant
dermatology product portfolio with a basket of 6 brands prescription market. Eneas holds a 17% unit market share
including key products viz. Klenzit C (Adapalene+ and is ranked 3rd in its segment after 1 year of sales. The
Clindamycin), Supirocin B (Mupirocin + Beclomethasone), company has also had a successful launch of Trogan
Tacroz (Tacrolimus) Ointment and Tacroz forte ointment. The (clopidogrel) and is confident of making it a top ranking
overall focus in Asia markets remains on brand building in generic in the respective market.
the core therapeutic segments of dermatology and As the company forges ahead with plans to expand
respiratory along with creating a strong presence in the business in Central and Eastern Europe, the year saw inroads
hospital & institutional sector. being built into Baltic markets – Latvia, Estonia and
Lithuania. Distributors were appointed and the company
expects to initiate business soon. Roadmaps for entry into
Central & Eastern Europe Hungary and revamping commercial operations in Bulgaria
have also been determined.
A subsidiary of Glenmark Pharmaceuticals Limited, GGL focuses on developing, manufacturing, selling and distribution of
generics through wholesalers, retailers and pharmacy chains, with a mission to provide high quality affordable healthcare across
the globe. GGL has been growing phenomenally, with Glenmark Generics Inc. (US) growing three folds in the last few years to
become one of the top 3 Indian generics companies by the number of approvals in the US. Glenmark holds the distinction of
being the only Indian company to have launched dermatology products in the US, with 22 filings and 18 approvals thus far. The
company was the also first Indian company to launch oral contraceptives and hormones on the US market. GGI is already
authorised to market 4 such products and has 8 filings in the pipeline. With such laurels under its wings, GGL is well set to take its
growth story forward across its markets in the coming years.
US Formulations
Glenmark Generics Inc., USA registered revenue of Rs. average of ANDA approvals by 60% for this period and
7,230.45 Mn for the FY 10, against revenue positioning it within the top 3 ranking of
of Rs. 7,337.73 Mn in the previous year, a Despite being generic companies by number of
de-growth of 1%. a late entrant approvals. The ANDA's received were
The company was granted a total of 16 Calcipotriene ointment, Moexipril HCl
into the US market,
ANDA approvals by the US FDA in FY 10 of tablets, Moexipril HCl + HCTZ tablets and
which 6 applications were tentative Glenmark
Ropinirole tablets for which Glenmark has
approvals. This summary demonstrates Generics Inc. (USA) accomplished successful launch of the
Glenmark's commitment to strengthening figures among three oral solid formulations in the U.S.
its pipeline and increasing the breadth of market. Glenmark also received tentative
their marketing portfolio by registering a
the Top 25 Generics
approval from the US FDA for Trandolapril
growth of 44% in comparison to the companies in the US + Verapamil extended-release tablets.
number of applications approved in FY 09. and is the 3rd largest During the 12 months ending March 31,
During the fourth quarter, the 2010, 13 ANDA's were filed with the agency
company was granted final approval on
Indian generics
by Glenmark, as well as a number of
four applications, beating the industry company. applications submitted through
22
BUSINESS UNIT PERFORMANCE
partnerships for which Glenmark is entitled to exclusive U.S. The licensing arm of the business made significant
marketing rights upon approval. progress through multiple out-licensing deals with Pan-
Glenmark's current marketing portfolio consists of 61 European and local companies in Europe. As part of its plan
generic products authorized for distribution in the U. S. to expand coverage across the EU, Glenmark considers
market. The company currently has 47 applications at licensing deals as a valuable means to grow its business and
various stages of the approval process with the US FDA. Also, the year saw these efforts being rewarded through initiation
the company has filed 11 Para IV applications to date for of supplies for several products in 7 EU markets.
which it is the sole ‘first-to-file’ for four products. Glenmark During the year, GGEL had 4 product dossiers approved
will realize new business potential resulting from the (Olanzapine Tablets, Olanzapine oro-dispersible Tablets,
settlement of patent actions regarding fluocinonide, the Ropinirole Tablets and Levocetirizine Tablets) and the
generic version of Medicis' Vanos® cream, and Ciclopirox company filed 5 new product dossiers (Atovaquone/
Olamine, the generic version of Medicis' Loprox® gel. Under Proguanil Tablets, Telmisartan Tablets, Rizatriptan Tablets,
the terms of the Settlement Agreement, Glenmark will be Rizatriptan oro-dispersible Tablets and Zolmitriptan Tablets).
able to market and distribute its generic version of Vanos® The year saw Decentralized Procedures (DCPs) concluded for
cream under license from Medicis no later than December three products in addition to Centralized Procedures (CPs)
2013, or earlier in certain circumstances. In addition, concluded for two products.
Glenmark will have a license to launch a generic version of Though on a small base, GGEL sales for the year recorded
Loprox® gel 0.77%, as supplied by Medicis. an increase of 104% over the previous year. As the company
executes its plan to spread its coverage in the generic
EU Formulations markets of Western Europe, it established presence in
Sweden in FY 10 and plans to launch the direct sales model in
Glenmark Generics Europe Ltd. (GGEL) based out of Germany and Netherlands in FY 11.
Hatfield, United Kingdom, ramped up its efforts to widen its
reach and up its revenues from generic products across Oncology
Europe. The company continues to work on the business
model that aims at three revenue streams viz. dossier Based out of Argentina, this business serves as the hub
licensing income, third party commercial supplies linked to for manufacturing and distribution of oncology products
licensing, and sales through its own front ends. across Glenmark markets. The business is spread over 20
The year saw Glenmark establish its local presence in the countries and deals in lyophilized and liquid injectable
UK and launch 6 products through established front ends cytotoxics.
over the course of the year. The products have been well Keeping in line with expanding presence outside Latin
timed with Mometasone being the 1st generic launch, America, several products were filed across geographies
Topiramate being a day 1 launch and Nebivolol 2.5 mg also including regions such as Middle East, Africa and Central
having a first mover advantage in the market. GGEL now has America. As part of the company's long term strategy to
full- fledged infrastructure to market and distribute products launch oncology injectables in the regulated markets, the
to the wholesaling and retail channels all across the UK. The construction of a state-of-the-art oncology injectables
business is positioned to grow on the back of a product manufacturing facility, spread over 30,000 sq ft, was
portfolio which contains a mix of vertically integrated and completed in Pilar (Buenos Aires, Argentina) and duly
difficult to develop products. inspected by local regulatory authorities.
24
G lobal Human Resource Development
Gaps in individual skill inventory are A collection of people does not People-Systems are processes that help
identified for each role. Based on these constitute a team till such time as they channelize both individual and group
gaps, design and delivery of learning share a common goal. The achievement capability towards achievement of
and development is carried out. Some of this common or shared goal requires organizational goals.
key interventions in this area were skills that many times transcend the
collective skill inventory of these
individuals.
Development and assessment A leadership capability matrix was The learning and development
centers were carried out in the sales developed and implemented in needs identification process and
groups in India and a few select select parts of the organization with creation of individual training
geographies and the process was very encouraging results. calendars became an integral part
institutionalized. In FY 10, this tool of organizational life. The significant
was successfully extended to our improvement was to make it an on-
manufacturing sites and select line system from this year.
geographies outside India.
Specific external programs were EDP/MDP programs for field ISO 14001:2004, 5S and Kaizen
identified for individuals occupying managers were enhanced and based initiatives were begun at
critical positions and for high appropriate versions developed for Ankleshwar and Goa plants. These
performers. non-field managers and line were welcomed and enthusiasti-
executives. cally embraced by teams there.
In addition to the focus on development, the human resources department continued on the path of continuous
improvement in the areas of talent management, enhanced performance assessment, creating an employee friendly
environment and appropriate rewards and recognition processes.
26
F inancials
Revenue Split (All figures in Rs Mn) Revenue from sale of API was Rs. 2,707.52 Mn as against Rs.
Generics Business 2009-10 2008-09 Growth 1,972.28 Mn in the previous year registering a growth of 37%.
North America/ US 7,230.45 7,337.73 -1% Dividend
Active Pharmaceutical 2,707.52 1,972.28 37%
Ingredients/ API
The Board of Directors have recommended a final dividend of
Oncology 343.02 400.48 -14% 40% (Rs 0.40 per equity share of Re 1 each) on the equity share
Europe 299.38 146.94 104% capital for FY 10 subject to the approval of shareholders.
Total Generics Ltd 10,580.37 9,857.43 7%
Equity Capital
Speciality Business The equity capital has increased from Rs. 250.52 Mn in FY 09 to Rs.
India 7,606.38 6,372.10 19% 269.84 Mn due to allotment of equity on conversion 604,860 stock
SRM 3,863.67 2,355.00 64% options and 18,712,935 Equity Shares of Re.1 each
Latin America 1,360.90 1,579.89 -14%
Europe
Securities Premium Account
1,362.75 995.91 37%
Total Speciality Business 14,193.70 11,302.90 26% Securities premium account has increased to Rs. 7,158.29 Mn
from Rs. 3,184.45 Mn mainly due to Premium on Issue of Shares to
Consolidated Revenue excluding 24,774.07 21,160.33 17%
Qualified Institutional Buyers.
Outlicensing
Outlicensing Revenue 232.40 - 0 General Reserves
Total Revenue 25,006.47 21,160.33 18% The general reserves increased from Rs.1,494.34 Mn to
Rs.1,622.80 Mn.
Consolidated Revenues: Profit and Loss Account
Glenmark's consolidated revenue increased to Rs. 25,006.47 Mn The balance of profit and loss account has increased from Rs.
from Rs. 21,160.33 Mn in the previous year, registering a growth of 18 11,215.45 Mn to Rs. 14,205.67 Mn on account of profit earned during
%. Excluding the out-licensing revenue of Rs. 232.40 Mn received in the years.
current year, the base business grew by 17% over FY 09. Secured Loans
Specialty Business: Secured loans decreased to Rs. 2,414.14 Mn in FY 10 compared
The Specialty formulation business registered revenue of Rs. with Rs. 3,826.55 Mn in FY 09.
14,193.70 Mn as against Rs. 11,302.90 Mn, registering growth of 26%. Unsecured Loans
Sales for the formulation business in India increased to Rs. Unsecured loans (excluding FCCB) decreased to Rs.14,925.57 Mn
7,606.38 Mn for the financial year as against Rs. 6,372.10 Mn in the in FY 10 compared with Rs.15,281.64 Mn in FY 09. Outstanding
previous year, recording a growth of 19%. liability towards FCCB decreased to Rs.1,354.20 Mn in FY 10
Glenmark Europe's operations registered revenue growth of 37% compared with Rs.1,835.28 Mn in FY 09 mainly due to repayment of
at Rs. 1,362.75 Mn as against Rs. 995.91 Mn of the previous year. USD 6 Mn during the year.
Semi regulated markets registered growth of 64% at Rs. 3,863.67 Fixed Assets
Mn as against Rs. 2,355.00 Mn. The gross block increased to Rs. 21,755.43 Mn as at FY 10 mainly
Glenmark's revenue from its Latin American and Caribbean on expansion and upgradation of the manufacturing facilities,
operations was at Rs. 1,360.90 Mn as against Rs. 1,579.89 Mn the additions made in the R & D division and acquisitions of brands etc.
previous year. The Latin American region was impacted mainly on Investment
account of the operational and systems overhaul in the Brazilian Investments remained at Rs. 181.23 Mn in FY 10, equivalent to
subsidiary, which are expected to start giving dividends in terms of investments in FY 09.
revenues from the coming year. Inventory
Research and Development: Materials inventory increased from Rs. 1,446.98 Mn in FY 09 to Rs.
The company has a pipeline of 13 NCE and NBE molecules. In 1,933.28 Mn in FY 10, mainly to support the increase in sale of
addition, the company has one in-licensed molecule, Crofelemer. formulation and API business. Finished goods and work-in-process
Crofelemer is already in it Phase III trials in UA and in Phase IIb rials in inventory increased from Rs. 4,810.04 Mn in FY 09 to Rs. 5,101.50 Mn
India. Glenmark's leading NCE Melogliptin expected to start Phase III in FY 10 being in line with the increase in sales.
trials in FY11. Receivables
Generics Business: Increase in the receivables from Rs. 9,553.43 Mn in FY 09 to Rs.
Revenue from the generics business was at Rs. 10,580.37 Mn, as 10,782.78 Mn in FY 10 was mainly attributable to the increased
against Rs. 9,857.43 Mn, registering growth of 7%. revenue in the various overseas markets.
Glenmark Generics Inc., U.S.A. posted revenue of Rs. 7,230.45 Mn Loans and Advances
as against revenue of Rs. 7,337.73 Mn, a marginal decline of 1% over Loans and advances increased from Rs. 4,220.88 Mn in FY 09 to Rs.
the previous year. 5,273.09 Mn in FY 10.
The European business registered a strong revenue growth of Cash and Bank Balance
104% at Rs. 299.38 Mn as against Rs. 146.94 Mn of the previous year. Cash and bank balance increased to Rs. 1,070.20 Mn from Rs.
The European business continues to grow through product sales 714.82 Mn.
and expansion into new markets. Current Liabilities and Provisions
Glenmark's revenue from the Argentina operations was Rs. Current liabilities and provisions increased from Rs. 4,563.29 Mn
343.02 Mn of as against Rs. 400.48 Mn of the previous year reflecting in FY 09 to Rs. 5,186.21 Mn in FY 10.
a decrease of 14 %.
Glenmark's short-term and long-term outlook is segments. The company's domestic revenues have been
encouraging for several reasons. On the discovery front, the accompanied by its growing presence in international
pipeline is progressing well with 7 molecules in clinics, of markets, both regulated and the semi-regulated, where
which two are ready for Phase III trials. The company will also Glenmark has invested in setting up competent local
continue with its approach of out-licensing its molecules. On management teams. Depending on the type and stage of
the generics front, with high value patented drugs going off business in its various markets, Glenmark has offerings
patent in the coming years, there is huge potential for the across the pharmaceutical value chain.
generics business. Glenmark is actively increasing its base in Research Risk Management : Glenmark is vigilantly
major generics markets of US and Western Europe. At the balancing the risk involved in its drug discovery program.
same time, GPL will continue to build differentiated Targets are selected after exhaustive screening and research
pipelines in RoW markets, notably the 'Pharmerging' across various parameters. The company also works on
markets. Focus will be on building size and scale organically parallel targets to maximize success prospects. Strategic tie-
and the company will continue to build capabilities and ups for NCEs and NBEs minimize the inherent risk of failure in
nurture a talent pool with diverse skills sets to deliver a program. The company also has an organizational
continuous results structure and process organization that monitors internal
research and development products.
Internal Control Systems Competition Risk Management : Glenmark is a strong
player in the domestic Indian market, as well as, other key
The company's internal control procedures are tailored markets such as Brazil and Russia. As a research-led, fully
to match the organization's pace of growth and increasing integrated global pharmaceutical company based out of
complexity of operations. These ensure compliance with India, the company has an edge over competition in several
various policies, practices, regulations and statutes. The ways. With a rich human resource pool of technically
internal control systems are regularly checked by both qualified graduates, high skills in synthetic chemistry,
statutory and internal auditors. expertise in product engineering and a low-cost
manufacturing base, companies such as Glenmark have an
edge over players from other markets. At the same time, the
R isk Management rich innovative pipeline affords a research benefit over most
other domestic Indian players.
The ever changing business environment necessitates Economic, Political and Currency Risk Management :
continuous monitoring, evaluation and management of Currency risks are identified, analyzed and managed
significant risks faced by the organization. The company has systematically. Glenmark has selectively circumvented its
purchased insurance coverage, where it is available on foreign exchange (forex) positions in order to limit the
economically acceptable terms, in order to minimize the impact due to volatile forex movements. The company also
related financial impacts. Some key risk factors, that can has sound mechanisms to assess the economic and political
impact a company like Glenmark, are listed below. Also stability of a market at the time of new- market entry and
outlined are the key mechanisms followed to manage these regular monitoring to respond to any situations that may
risks. impact business
Strategy Risk Management : The strategy de-risking is Litigation Risk : The risk of litigation may arise in
mainly by growing multiple business domains in high situations pertaining to quality, intellectual property or may
opportunity areas. The innovative effort in discovery be of a business/ contractual nature. The company has put in
research is also accompanied by traditional branded place processes to avoid any such eventuality and has strong
generics sales from India and RoW markets, as well as, pure legal systems in place.
generics sales in regulated markets. The company now has a Environment Risk Management : The manufacture of
significant API business interest in regulated and semi- APIs and pharmaceutical formulations is subject to risks
regulated markets. The company also is able to de-risk its associated with the production, filling, storage of raw
strategic moves by being fully integrated, thus being able to materials, finished products and disposal of wastes.
support all market initiatives with a strong research and Glenmark is committed to managing its processes and waste
manufacturing back-end. in a sound and responsible manner and adhering to norms
Business Portfolio Risk Management : The company stipulated by the regulatory authorities.
has a diversified portfolio covering over ten therapeutic
28
C orporate Information
Chairman API
Mr. Gracias Saldanha 3109 – C, GIDC Industrial Estate,
Ankleshwar, Dist. Bharuch – 393002, Gujrat
Managing Director and CEO
Plot no 163- 165/170 – 172, Chandramouli Industrial Estate,
Mr. Glenn Saldanha Mohol Bazarpeth, Solapur – 413213, Maharashtra
30
Auditors’ Report
Auditors’ report to the Board of Directors of Glenmark Pharmaceuticals Limited on the Consolidated Financial Statements of Glenmark
Pharmaceuticals Limited
1. We have audited the attached consolidated balance sheet of Glenmark Pharmaceuticals Limited (the “Company”) and its subsidiaries
and its jointly controlled entity; hereinafter referred to as the “Group” (refer Note 1 on Schedule 21 to the attached consolidated
financial statements) as at 31st March, 2010, the related consolidated Profit and Loss Account and the consolidated Cash Flow
Statement for the year ended on that date annexed thereto, which we have signed under reference to this report. These consolidated
financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
3. We did not audit the financial statements of thirty three subsidiaries and one jointly controlled entity included in the consolidated
financial statements, which constitute total assets of Rs. 10,603,282 (‘000) and net assets of Rs. 5,254,257 (‘000) as at 31st March,
2010, total revenue of Rs. 16,886,790 (‘000), net profit of Rs. 2,076,632 (’000) and net cash flows amounting to Rs. 436,382 (‘000) for
the year then ended. These financial statements and other financial information have been audited by other auditors whose reports
have been furnished to us, and our opinion on the consolidated financial statements to the extent they have been derived from such
financial statements is based solely on the report of such other auditors.
4. We report that the consolidated financial statements have been prepared by the Company’s Management in accordance with the
requirements of Accounting Standard (AS) 21 - Consolidated Financial Statements and Accounting Standard (AS) 27 - Financial
Reporting of Interests in Joint Ventures notified under sub-section 3C of Section 211 of the Companies Act, 1956.
5. Based on our audit and on consideration of reports of other auditors on separate financial statements and on the other financial
information of the components of the Group as referred to above, and to the best of our information and according to the
explanations given to us, in our opinion, the attached consolidated financial statements give a true and fair view in conformity with
the accounting principles generally accepted in India:
(a) in the case of the consolidated Balance Sheet, of the state of affairs of the Group as at 31st March, 2010;
(b) in the case of the consolidated Profit and Loss Account, of the profit of the Group for the year ended on that date; and
(c) in the case of the consolidated Cash Flow Statement, of the cash flows of the Group for the year ended on that date.
Partha Ghosh
Partner
Membership Number: F-55913
Place: Mumbai
Date: 28th May, 2010
Rs. in (‘000s)
As at As at
Schedules 31st March, 2010 31st March, 2009
I. SOURCES OF FUNDS
1. SHAREHOLDERS' FUNDS
a) Capital 1 269,838 250,520
b) Reserves and Surplus 2 23,282,495 15,731,044
23,552,333 15,981,564
2. MINORITY INTEREST 130,075 31,552
3. LOAN FUNDS
a) Secured Loans 3 2,414,139 3,826,548
b) Unsecured Loans 4 16,279,767 17,116,917
18,693,906 20,943,465
4. DEFERRED TAX LIABILITY 5 1,275,009 1,054,748
TOTAL 43,651,323 38,011,329
This is the Consolidated Balance Sheet referred to in our report of even date.
Rs. in (‘000s)
Year ended Year ended
Schedules 31st March, 2010 31st March, 2009
INCOME
Sales & Operating Income 15 25,006,466 21,160,332
Other income 16 489,635 1,740,116
25,496,101 22,900,448
EXPENDITURE
Cost of Sales 17 10,193,390 8,750,997
Selling and Operating Expenses 18 7,844,662 6,976,794
Depreciation/Amortisation 6 1,206,104 1,026,827
Interest (net) 19 1,640,213 1,404,766
Research and Development Expenses 20 772,758 882,703
21,657,127 19,042,087
Profit before Tax and Exceptional items 3,838,974 3,858,361
Exceptional Item - 1,169,548
PROFIT BEFORE TAX 3,838,974 2,688,813
Provision for Taxation
- Current Year [includes wealth tax provision Rs. 200 (2009 - Rs. 288)] 914,730 651,299
- Mat Credit (Entitlement)/Utilisation (520,504) 395,278
- Deferred Tax 137,071 (383,148)
- Fringe Benefit Tax - 81,373
- Prior Period Tax (2,639) 9,282
NET PROFIT AFTER TAX BEFORE MINORITY INTEREST 3,310,316 1,934,729
Share of (profit)/loss transfer to Minority (65,608) (18,092)
NET PROFIT AFTER TAX & MINORITY INTEREST 3,244,708 1,916,637
Balance Profit Brought Forward 11,215,453 10,276,665
NET PROFIT AVAILABLE FOR APPROPRIATION 14,460,161 12,193,302
Proposed Dividend on Equity Shares 107,935 100,208
Tax on Proposed Dividend on Equity Shares 17,927 17,030
Residual Dividend and Dividend Tax 163 -
Transfer to Foreign Currency Monetary Item Translation Difference Account - 366,121
Transfer to General Reserve 128,463 494,490
BALANCE CARRIED TO BALANCE SHEET 14,205,673 11,215,453
Earnings Per Share (Rs.) [Refer Note 5 of Schedule 21]
Basic 12.4 7.7
Diluted 12.4 7.5
Face Value per Share 1.0 1.0
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 21
Schedules referred to above and notes attached thereto form an integral part of the
Consolidated Profit and Loss Account.
This is the Consolidated Profit and Loss Account referred to in our report of even date.
Rs. in (‘000s)
Year ended Year ended
31st March, 2010 31st March, 2009
A. CASH FLOW FROM OPERATING ACTIVITIES:
Net Profit before tax 3,838,974 2,688,813
Adjustments for:
Depreciation 1,206,104 1,026,827
Interest Expense 1,655,035 1,457,208
Interest Income (14,822) (52,442)
Income from Investment - Dividends (75) (38)
(Profit)/Loss on Fixed Assets sold 8,413 518
Bad Debts written off - 5,729
Provision for Bad & Doubtful Debts 32,932 54,181
Provision for Doubtful Advances (700) -
Provision for Gratuity & Leave Encashment 47,838 53,414
Unrealised foreign exchange (gain)/loss (282,149) 196,081
Operating Profit Before Working Capital Changes 6,491,550 5,430,291
Adjustments for changes in Working Capital:
- (Increase) in Sundry Debtors (1,168,169) (1,580,108)
- (Increase) in Other Receivables (571,227) (1,215,386)
- (Increase) in Inventories (782,338) (2,294,862)
- Increase in Trade and Other Payables 428,159 1,213,717
Cash Generated from Operations 4,397,975 1,553,652
- Taxes (Paid) (873,954) (1,394,571)
Net Cash from Operating Activities 3,524,021 159,081
B. CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of Fixed Assets (3,404,395) (7,662,729)
Capital Work-in-Progress (553,612) (2,081,793)
Proceeds from Sale of Fixed Assets 73,984 183,496
Proceeds/(Payment) for Sale/Purchase of Investments - 6,942
Interest Received 14,822 52,442
Dividend Received 75 38
Net Cash used in Investing Activities (3,869,126) (9,501,604)
Rs. in (‘000s)
Year ended Year ended
31st March, 2010 31st March, 2009
C. CASH FLOW FROM FINANCING ACTIVITIES:
Proceeds from Fresh Issue of
Share Capital (including Securities Premium) 4,142,780 350,586
Net Assets financed by Minority Shareholders 32,915 (1,336)
Exchange Fluctuation Reserves 16,015 (254,409)
Proceeds/(Payment) of Long Term Borrowings 6,639,196 164,905
Proceed from Short Term Borrowings (5,250,473) 8,059,154
Proceeds from Working Capital Facilities movement (2,713,047) 1,614,427
Redemption of FCCB (279,960) -
FCCB Premium paid on redemption including TDS (105,288) -
Interest Paid (1,663,660) (1,441,050)
Dividend Paid (100,966) -
Dividend Tax Paid (17,030) -
Net Cash from Financing Activities 700,482 8,492,277
This is the Consolidated Cash Flow Statement referred to in our report of even date.
Rs. in (‘000s)
As at As at
31st March, 2010 31st March, 2009
1. CAPITAL
Authorised
350,000,000 (2009 – 350,000,000) Equity Shares of Re. 1 each 350,000 350,000
4,000,000 (2009 – 4,000,000) Cumulative Redeemable Non-Convertible
Preference Shares of Rs. 100 each 400,000 400,000
Rs. in (‘000s)
As at As at
31st March, 2010 31st March, 2009
2. RESERVES AND SURPLUS
Securities Premium Account
Balance at the beginning of the year 3,184,454 2,896,843
Add: Premium on Issue of Shares pursuant to Conversion of ESOP 36,659 22,636
Add: Premium on Issue of Shares to Qualified Institutional Buyers 4,116,846 -
Less: Issue expenses on issue of shares to QIBs 65,829 -
Add: Premium on Issue of Shares pursuant to Conversion of FCC Bonds - 326,156
Add: Writeback of redemption premium for FCC Bonds converted during the year - 66,115
Less: Redemption premium of FCC Bonds outstanding at year end 149,623 127,296
Add: Tax impact on FCCB redemption premium 35,787 -
Closing Balance 7,158,294 3,184,454
General Reserve
Balance at the beginning of the year 1,494,336 1,487,026
Add: Transferred from Profit & Loss Account 128,463 494,490
Add: Transfer to Fixed assets (Refer Note 11 of Schedule 21) - 3,915
Less: Transfer from Foreign Currency Monetary Item Translation Difference Account
(Refer Note 11 of Schedule 21) - 491,095
Closing Balance 1,622,799 1,494,336
Rs. in (‘000s)
As at As at
31st March, 2010 31st March, 2009
4. UNSECURED LOANS
Short Term Loan from Banks 4,100,431 9,358,889
Other Loans from Banks 10,771,319 5,876,916
Foreign Currency Convertible Bonds (due within one year) [Refer Note 6 of Schedule 21] 1,354,200 1,835,280
Security Deposit 53,817 45,832
TOTAL 16,279,767 17,116,917
6. FIXED ASSETS [Refer Note 2(ii), 2(iii), 2(iv), 2(v)(b) and 2(xii) of Schedule 21]
Rs. in (‘000s)
GROSS BLOCK DEPRECIATION / AMORTISATION NET BLOCK
As on Acquisition Additions Consolidation Deduction As on As on Acquisition For the Consolidation On As on As on As on
31st March, during the during the Adjustment 31st March, 31st March, year Adjustment Deduction 31st March, 31st March, 31st March,
2009 year year 2010 2009 2010 2010 2009
Tangible assets
Freehold Land 52,067 - 11,737 (2,391) - 61,413 - - - - - - 61,413 52,067
Leasehold Land 203,208 - 162,692 (6,008) (54,400) 305,492 20,189 - 9,742 (2,364) (1,098) 26,469 279,023 183,019
Factory Buildings 2,194,377 - 648,971 68,995 - 2,912,343 182,621 - 73,164 (5,611) - 250,174 2,662,169 2,011,756
Other Buildings and 883,441 - 75,808 41,007 (1,872) 998,384 98,875 - 41,155 (5,604) (64) 134,362 864,022 784,566
Premises
Plant and Machinery 2,156,556 - 147,799 127,232 (1,661) 2,429,926 143,259 - 63,925 2,655 (46) 209,793 2,220,133 2,013,297
Furniture and 602,068 - 68,158 17,386 (262) 687,350 173,824 - 53,804 (806) (9) 226,813 460,537 428,244
Fixtures
Equipments 3,002,184 - 615,669 161 (4,776) 3,613,238 681,241 - 315,893 (15,421) (3,189) 978,524 2,634,714 2,320,943
Vehicles 110,284 - 25,688 (1,835) (14,315) 119,822 47,380 - 18,632 (1,709) (7,886) 56,417 63,405 62,904
Intangible assets
Goodwill 800,586 - 116,703 26,084 - 943,373 236,803 - 35,588 10,409 - 282,800 660,573 563,783
Computer software 480,743 - 85,001 41,236 (16,558) 590,422 103,936 - 42,039 2,981 (152) 148,804 441,618 376,807
Brands 7,900,272 - 1,677,821 (482,566) (1,862) 9,093,665 1,035,213 - 552,162 (19,189) - 1,568,186 7,525,479 6,865,059
TOTAL 18,385,786 - 3,636,047 (170,699) (95,706) 21,755,428 2,723,341 - 1,206,104 (34,659) (12,444) 3,882,342 17,873,086 15,662,445
Previous Year 11,241,021 - 9,327,763 521,104 (2,704,102) 18,385,786 2,055,881 - 1,026,827 81,670 (441,037) 2,723,341
Capital Work-in-progress 6,007,692 5,454,080
Notes:
1. Equipment and Other Premises include assets aggregating Rs. 162,435 (2009 – Rs. 26,539) [net book value as at 31st March, 2010 – Rs. 71,844 (2009 – Rs. Nil)], and Rs. 132,422 (2009 – Rs. 81,438) [net book value as
at 31st March, 2010 – Rs. 64,012 (2009 – Rs. 31,065)] respectively, which have been acquired on finance lease.
2. Addition to assets include Rs. 7,499 (2009 - Rs. 5,400) being borrowing costs.
Rs. in (‘000s)
As at As at
31st March, 2010 31st March, 2009
7. INVESTMENTS [Refer Note 2(vi) of Schedule 21]
LONG TERM INVESTMENTS - At Cost - fully paid
Quoted - non-trade
Equity shares
9,000 (2009 – 9,000) Bank of India of Rs. 10 each [Market Value Rs. 3,067 (2009 – Rs. 1,979)] 405 405
1,209 (2009 – 1,209) IDBI Bank Limited of Rs. 10 each [Market Value Rs. 139 (2009 – Rs. 55)] 34 34
439 439
Investment in Government Securities
National Savings Certificate - Sixth Issue 22 22
National Savings Certificate - Eighth Issue 10 10
Unquoted - non-trade
1 (2009 – 1) Time Share of Dalmia Resorts Limited 20 20
1 (2009 – 1) Equity Share of Esquados 340,000 of Glenmark Pharmaceutica Limitada.,
Lisbon (Portugal) 48 48
213,032 (2009 - 213,032) Equity Shares of Bharuch Eco-Aqua Infrastructure Limited of
Rs. 10 each, fully paid-up 2,130 2,130
1,350,000 (2009 - 1,350,000) 7% cumulative preference shares of Rs. 100 each fully
paid-up of Marksans Pharma Ltd. 135,000 135,000
Investment with Napo Pharmaceuticals Inc.
[1,176,471 (2009 - 1,176,471) Preferred shares of USD 0.85 each] 43,560 43,560
180,790 180,790
TOTAL 181,229 181,229
Aggregate book value of Investments
- Quoted [Market value Rs. 3,206 (2009 - Rs. 2,034)] 439 439
- Unquoted 180,790 180,790
TOTAL 181,229 181,229
Rs. in (‘000s)
As at As at
31st March, 2010 31st March, 2009
11. CASH AND BANK BALANCES
Cash in hand 3,839 6,123
Balances with Scheduled Banks
- Current Accounts 122,659 92,593
- Margin Money Account 31,214 51,126
- EEFC Account 23,156 76
Balances with Non-Scheduled Banks
- Current Accounts 886,503 564,779
- Deposit Accounts 2,829 126
TOTAL 1,070,200 714,823
The balances in the margin money accounts are given as security against guarantees
issued by banks on behalf of the Company.
12. LOANS AND ADVANCES (unsecured, considered good unless otherwise stated)
Advances recoverable in cash or kind or for value to be received
Considered good 2,439,132 1,767,369
Considered doubtful 29,100 29,800
2,468,232 1,797,169
Less: Provision for Doubtful advances (29,100) (29,800)
2,439,132 1,767,369
Advance to Vendors 773,046 772,069
Advance tax (net of provision) 491,526 531,737
MAT Credit Entitlement 685,253 164,749
Balance with Excise Authorities 702,579 800,335
Deposits 181,560 184,618
TOTAL 5,273,096 4,220,877
14. PROVISIONS
Proposed Dividend 107,935 100,208
Tax payable on Proposed Dividend 17,927 17,030
Provision for Wealth Tax 252 276
Provision for Fringe Benefit Tax - 2,050
Provident Fund Scheme payable 7,543 7,288
Provision for Gratuity and Leave Encashment 66,087 37,539
TOTAL 199,744 164,391
Rs. in (‘000s)
Year ended Year ended
31st March, 2010 31st March, 2009
15. SALES AND OPERATING INCOME [Refer Note 2(ix) of Schedule 21]
Sale of goods and IP assets 24,991,174 21,145,423
Income from services 15,292 14,909
TOTAL 25,006,466 21,160,332
Rs. in (‘000s)
Year ended Year ended
31st March, 2010 31st March, 2009
18. SELLING AND OPERATING EXPENSES
Salary, bonus and allowances 2,173,598 2,057,021
Contribution to Provident and other funds 144,732 103,402
Staff welfare expenses 75,509 69,133
Directors' salaries, allowances and commission 105,799 144,805
Incentive and commission 191,060 140,813
Sales promotion expenses 1,529,366 1,370,270
Export Commission 62,007 59,620
Commission on sales 125,238 45,193
Travelling expenses 654,307 690,247
Freight outward 514,716 465,045
Telephone expenses 90,112 59,673
Rates and taxes 39,942 56,049
Provision for doubtful debts 32,932 54,181
Bad debts written off - 5,729
Insurance premium 69,406 69,449
Electricity charges 25,399 24,084
Rent 284,082 270,158
Legal and Professional Expenses 406,242 390,847
Repairs and Maintenance - others 128,143 123,618
Auditors' remuneration and expenses
- Audit fees* 25,455 20,191
- Certification and other matters 485 1,500
- Reimbursement of out-of-pocket expenses 37 124
Loss on sale of fixed assets 8,413 518
Amortisation of Pre-operative/Preliminary expenses - 7,422
Exchange Loss 290,201 -
Other operating expenses 867,481 747,702
TOTAL 7,844,662 6,976,794
* Audit fees include fees paid to statutory auditors of subsidiary companies.
20. RESEARCH AND DEVELOPMENT EXPENSES [Refer Note 2(x) of Schedule 21]
Salary, bonus and allowances 409,688 237,275
Contribution to Provident and other funds 8,907 16,847
Staff welfare expenses 856 168
Directors' Remuneration 225 211
Incentive and commission 1,216 5,190
Consumable and Chemicals 62,989 106,084
Electricity charges 10,609 6,446
Repairs and maintenance - building 182 131
Repairs and maintenance - others 24,505 5,631
Insurance premium 1,696 1,980
Other expenses 251,885 502,740
TOTAL 772,758 882,703
1. BACKGROUND
The consolidated financial statements relate to Glenmark Pharmaceuticals Limited ( the “Company”) and its following subsidiaries
and Joint Venture company (the “Group”).
Name of the Subsidiary/Joint Venture Country of Ownership and Percentage
Incorporation either directly or through
subsidiaries as at 31st March
2010 2009
Glenmark Pharmaceuticals Europe Ltd.* United Kingdom 100% 100%
Glenmark Generics (Europe) Ltd.** (formerly Glenmark Pharmaceuticals (Europe) Ltd.) United Kingdom 100% 100%
Glenmark Pharmaceuticals S.R.O. (Formerly known as Medicamenta A.S., Czech Republic 100% 100%
Czech Republic)*
Glenmark Pharmaceuticals SK, S.R.O. * (Formerly known as Medicamenta SK SRO) Slovak Republic 100% 100%
Glenmark Pharmaceuticals S.A.* Switzerland 100% 100%
Glenmark Holding S.A. Switzerland 100% 100%
Glenmark Generics Holding S.A.** Switzerland 100% 100%
Glenmark Generics Finance S.A.** Switzerland 100% 100%
Glenmark Pharmaceuticals S.R.L.* Romania 100% 100%
Glenmark Pharmaceuticals Eood * Bulgaria 100% 100%
Glenmark Distributor SP z.o.o.* Poland 100% 100%
Glenmark Pharmaceuticals SP z.o.o.* Poland 100% 100%
Glenmark Generics Inc. **(formerly Glenmark Pharmaceuticals Inc.) USA 100% 100%
Glenmark Therapeutics Inc.* USA 100% 100%
Glenmark Farmaceutica Ltda* Brazil 100% 100%
Glenmark Generics S.A. ** (formerly Servycal S.A.) Argentina 100% 100%
Glenmark Pharmaceuticals Mexico, S.A. DE C.V. * Mexico 100% 100%
Glenmark Pharmaceuticals Peru SAC * Peru 100% 100%
Glenmark Pharmaceuticals Colombia Ltda.* Colombia 100% 100%
Glenmark Uruguay S.A. (formerly known as Badatur S.A., Uruguay)* Uruguay 100% 100%
Glenmark Pharmaceuticals Venezuela, C.A.* Venezuela 100% 100%
Glenmark Dominicana SRL, Dominican Republic (formerly known as Dominican Republic 100% 100%
Glenmark Dominicana S.A.)
Glenmark Pharmaceuticals Egypt S.A.E. Egypt 100% 100%
Glenmark Pharmaceuticals FZE U.A.E. 100% 100%
Glenmark Impex L.L.C Russia 100% 100%
Glenmark Philippines Inc. Philippines 100% 100%
Glenmark Pharmaceuticals (Nigeria) Ltd. Nigeria 100% 100%
Glenmark Pharmaceuticals Malaysia Sdn Bhd Malaysia 100% 100%
Glenmark Pharmaceuticals (Australia) Pty Ltd. Australia 100% 100%
Glenmark South Africa (pty) Ltd.* (formerly known as Glenmark Pharmaceuticals South Africa 100% 100%
Pty Ltd.)
Glenmark Pharmaceuticals South Africa (Pty) Ltd.*(formerly known as Bouwer South Africa 100% 100%
Bartlett Pty Ltd.)
Glenmark Pharmaceuticals (Thailand) Co. Ltd. Thailand 49% 49%
Glenmark Exports Ltd. India 100% 100%
Glenmark Generics Ltd. India 96.93% 98%
* held through Glenmark Holding S.A., Switzerland
** held through Glenmark Generics Ltd.
2. SIGNIFICANT ACCOUNTING POLICIES
i) Basis of preparation of Consolidated Financial Statements
The consolidated financial statements have been prepared and presented under the historical cost convention on the
accrual basis of accounting in accordance with the accounting principles generally accepted in India and comply with
the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India to the extent applicable.
The Consolidated Financial statements have been prepared using uniform accounting policies for like transactions and other
events in similar circumstances and are presented to the extent possible in the same manner as the Company’s separate
financial statements. However, it was not practicable to use uniform accounting policies for depreciation in the case of
following subsidiaries:
Rs. in (‘000s)
Gross Block as on Percentage of
31st March, 2010 Total Assets
Glenmark Pharmaceuticals S.A. 457,872 2.10%
Premises 20%
Vehicles 40%
Laboratory Instruments and Equipments 40%
Glenmark Pharmaceuticals South Africa (Pty) Ltd. 598 0.00%
Computer Software 50%
Glenmark Philippines Inc. 18,107 0.08%
Vehicles 33%
Equipments 33%
Furniture and fixtures 20%
Glenmark Pharmaceuticals (Australia) Pty Ltd. 136 0.00%
Equipments 25% to 40%
Glenmark Generics Inc. 57,610 0.26%
Leasehold Improvement 12.5%
Furniture and fixtures 14%
Glenmark Generics (Europe) Ltd. 13,701 0.06%
Equipments 25%
The Consolidated Financial Statements have been prepared on the following basis :
(a) In respect of Subsidiary Companies, the financial statements have been consolidated on a line-by-line basis by adding
together the book values of like item of assets, liabilities, incomes and expenses, after fully eliminating intra-group
balances and unrealised profits/losses on intra-group transactions as per Accounting Standard - AS 21 “Consolidated
Financial Statements”. In case of Joint Venture Companies, the financial statements have been consolidated as per
Accounting Standard (AS – 27) “Financial Reporting of Interests in Joint Ventures”.
(b) The excess of cost to the Company of its investment in the Subsidiary Company over the Company’s share of net assets
of the subsidiary company is recognised in the financial statements as Goodwill, which is tested for impairment, if any,
at each balance sheet date. The excess of Company’s share of net assets of the subsidiary company over the cost of
acquisition is treated as Capital Reserve.
(c) The results of operations of a subsidiary are included in the Consolidated Financial Statements from the date on which
the parent-subsidiary relationship comes into existence.
(d) The translations of financial statements into Indian Rupees relating to non-integral foreign operations have been carried
out using the following procedures :
- assets and liabilities have been translated at closing exchange rates at the year end; and
- income and expenses have been translated at an average of monthly exchange rates.
The resultant translation exchange gain/(loss) has been disclosed as Exchange Fluctuation Reserve under Reserves and
Surplus.
(e) The Notes and Significant Accounting Policies to the Consolidated Financial Statements are intended to serve as a guide
for better understanding of the Group’s position. In this respect, the Group has disclosed such notes and policies, which
represent the requisite disclosure.
ii) Fixed Assets (including Intangibles), Depreciation and Amortisation
Fixed assets are stated at cost less accumulated depreciation and amortisation. The Group capitalises all costs relating to the
acquisition and installation of fixed assets. Expenditure of revenue nature, incurred in setting up of new projects, is capitalised
as an indirect cost towards construction of the fixed assets.
Depreciation is provided using the straight line method, pro-rata to the period of use of assets, based on the useful lives of fixed
assets as estimated by management, or at the rates specified in Schedule XIV of the Companies Act, 1956, whichever is higher.
Brands/IP Rights are amortised from the month of products launch/commercial production, over the estimated economic life
not exceeding 10 years.
Fixed assets having aggregate cost of Rs. 5,000 or less are depreciated fully in the year of acquisition.
The Group has estimated the useful life of its assets as follows:
Category Estimated useful life (in years)
Plant and machinery 8 - 20
Vehicles 5-6
Equipments and Air Conditioners 4 - 20
Furniture and Fixtures 10
Computer Software 5
Brands 5 - 10
Leasehold land and improvement is amortised over the period of lease.
iii) Borrowing Costs
Borrowing costs that are attributable to the acquisition and construction of a qualifying asset are capitalised as a part of the
cost of the asset. Other borrowing costs are recognised as an expense in the year in which they are incurred.
iv) Impairment of Assets
The Group assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such
indication exist, the Group estimates the recoverable amount of the asset. If such recoverable amount of the asset or the
recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying
amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the Profit and
Loss Account. If at the Balance Sheet date there is an indication that if a previously assessed impairment loss no longer exist,
the recoverable amount is reassessed and the asset is reflected at the recoverable amount.
v) Foreign Currency Transactions
(a) Foreign currency transactions are recorded at the exchange rates prevailing on the date of such transactions. Monetary
assets and liabilities as at the Balance Sheet date are translated at the rates of exchange prevailing at the date of the
Balance Sheet. Gain/loss arising on account of differences in foreign exchange rates on settlement/translation of
monetary assets and liabilities are recognised in the Profit and Loss Account. Non-monetary foreign currency items are
carried at cost.
(b) Gain/loss on account of foreign exchange fluctuation in respect of liabilities in foreign currencies specific to acquisition
of fixed assets are recognised in the Profit and Loss Account.
vi) Investments
Long-term investments are stated at cost. Provision, where necessary, is made to recognize a decline, other than temporary, in
the value of the investments.
vii) Inventories
Inventories of finished goods, consumable store and spares are valued at cost or net realisable value, whichever is lower. Cost
of raw materials and packing materials is ascertained on a first-in-first-out basis. Cost of work-in-process and finished goods
include the cost of materials consumed, labour and manufacturing overheads. Excise and customs duty accrued on production
or import of goods, as applicable, is included in the valuation of inventories. Net realisable value is the estimate of the selling
price in the ordinary course of the business.
viii) Employee Benefits
Long-term Employee Benefits
In case of Defined Contribution plans, the Company’s contributions to these plans are charged to the Profit and Loss Account
as incurred. Liability for Defined Benefit plans is provided on the basis of valuations, as at the Balance Sheet date, carried
out by an independent actuary. The actuarial valuation method used for measuring the liability is the Projected Unit Credit
method. The estimate of future salary increases considered takes into account the inflation, seniority, promotion and other
relevant factors. The expected rate of return of plan assets is the Company’s expectation of the average long-term rate of return
expected on investments of the fund during the estimated term of the obligations. Plan assets are measured at fair value as at
the Balance Sheet date.
ix) Revenue Recognition
The Group recognises revenue on despatch of goods to customers. Revenues from services are recognized on completion of
such services. Revenue from IP asset/Marketing rights is recognized on transfer of ownership/right to use in accordance with
the terms of relevant agreements. Revenue from contract research being in the nature of product development activities is
recognized as per the terms of the agreement. Revenues are recorded at invoice value, inclusive of excise duty and sales-tax,
but net of returns and trade discounts.
4. During the year, the Company subscribed to 71,510,000 equity shares for a consideration of Rs. 7,151,000 (‘000) in its subsidiary
Glenmark Generics Limited for the balance Business sale consideration.
5. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the weighted average number of shares outstanding are adjusted for the
effects of all dilutive potential equity shares from the exercise of options on unissued share capital and on conversion of FCC Bonds.
The calculations of earnings per share (basic and diluted) are based on the earnings and number of shares as computed below.
Rs. in (‘000s)
31st March, 2010 31st March, 2009
Profit after tax and Minority Interest (attributable to equity shareholders) 3,244,708 1,916,637
In (‘000s)
Reconciliation of number of shares No. of Shares No. of Shares
Weighted average number of shares:
For basic earnings per share 260,759 250,025
Add:
Deemed exercise of options on unissued equity share capital and 565 5,237
Conversion of FCC Bonds
For diluted earnings per share 261,324 255,262
Earnings per share (nominal value Re. 1 each) Rs. Rs.
Basic 12.4 7.7
Diluted 12.4 7.5
(iii) Redeemable on maturity date on 16th February, 2010 at 134.07% of its principal amount if not redeemed or converted
earlier. The Redemption Premium of 34.07% payable on maturity of the Bond if there is no conversion of the Bond to
be debited to Securities Premium Account evenly over the period of 5 years from the date of issue of Bonds. During
the year, 5,000 FCC Bonds of USD 1,000 each aggregating to USD 5 Million were redeemed on 16th February, 2010 on
maturity. As of 31st March, 2010, NIL FCC Bonds (2009-5000) of USD 1,000 each are outstanding.
7. SEGMENT INFORMATION
Business segments
The Group is primarily engaged in a single segment business of manufacturing and marketing of pharmaceutical formulations and
active pharmaceutical ingredients and is governed by a similar set of risks and returns.
Geographical segments
In the view of the management, the Indian and export markets represent geographical segments.
Sales by market – The following is the distribution of the Company’s sale by geographical market:
Rs. in (‘000s)
2009-2010 2008-2009
Geographical segment
India 8,767,083 7,155,326
Other than India* 16,239,383 14,005,006
TOTAL 25,006,466 21,160,332
Assets and additions to fixed assets by geographical area – The following table shows the carrying amount of segment assets and
additions to fixed assets by geographical area in which the assets are located:
Rs. in (‘000s)
India Others* India Others*
2009-2010 2009-2010 2008-2009 2008-2009
Carrying amount of segment assets 17,886,600 30,386,073 16,077,552 26,011,583
Additions to fixed assets 1,459,979 2,176,068 1,620,088 7,707,675
* Others represent receivables from debtors located outside India including those related to deemed exports and cash and bank
balances of branches outside India.
9. LEASES
a) The Group has entered into operating and finance lease agreements for the rental of property, vehicles, computers, equipments
and other assets. Typically, lease agreements are for a period of three to fifteen years.
As at 31st March, 2010, the Group had commitments under non-cancellable finance leases as follows:
Rs. in (‘000s)
31st March, 2010 31st March, 2009
Minimum lease payments
Due within one year 53,104 10,355
Due later than one year and not later than five years 34,897 27,345
Due later than five years 36,330 33,141
Total 124,331 70,841
Present value of minimum lease payments
Due within one year 50,335 9,815
Due later than one year and not later than five years 29,887 23,206
Due later than five years 23,039 20,233
Total 103,261 53,254
b) Glenmark Generics Inc., USA (GGI) conducts its operations from facilities that are leased under a 97-month non-cancellable
operating lease expiring in September 2013. Additional office space were subleased under a 52-month non-cancellable
operating lease which expired in September 2008.
Glenmark Pharmaceuticals South Africa (PTY) Limited has entered into operation lease agreement for the rental of its office
premises. The lease agreement is for a period of 5 years.
Glenmark Philippines Inc. has entered into operating lease agreements for the rental of its warehouse and office premises. The
lease agreement is for a period of 4 years.
Glenmark Pharmaceuticals SP z.o.o. has entered into operating lease agreements for the rental of its office premises for a period
of 3 to 5 years.
Rs. in (‘000s)
31st March, 2010 31st March, 2009
Minimum lease payments
Due within one year 53,132 56,709
Due later than one year and not later than five years 83,813 179,790
Due later than five years - 21,674
Total 136,945 258,173
c) The Group has taken on lease/leave and licence godowns/residential & office premises at various locations.
i) The Group’s significant leasing arrangements are in respect of the above godowns & premises (Including furniture and
fittings therein, as applicable). The aggregate lease rentals payable are charged to Profit and Loss Account as Rent.
ii) The Leasing arrangements which are cancellable range between 11 months and 5 years. They are usually renewable by
mutual consent on mutually agreeable terms. Under these arrangements, generally refundable interest free deposits
have been given. An amount of Rs. 83,911 (2009 - Rs. 78,559) towards deposit and unadjusted advance rent is recoverable
from the lessor.
Rs. in ('000s)
2009-2010 2008-2009
Leave Leave
Gratuity Encashment Gratuity Encashment
(Funded plan) (Funded plan) (Funded plan) (Funded plan)
(viii) Principal actuarial assumptions used
Discount rate (p.a.) 8% 8% 7.5%-8% 7.5%-8%
Expected rate of return on plan assets (p.a.) 8%-9% 8%-9% 8%-9% 8%-9.25%
(ix) Experience Analysis
Actuarial gain/(loss) on change in assumptions 6,297 (1,922) - -
Experience (Gain)/Loss on Liabilities (3,748) 13,997 - -
Actuarial gain/(loss) on Obligation 2,549 12,075 - -
(x) Expected employer’s contribution for the next year is Rs. 29,351 ('000) for Gratuity and Leave Encashment.
11. “As per the transitional provision given in the notification issued by Ministry of Corporate Affairs dated 31st March, 2009 the Group
has opted for the option of adjusting the exchange difference on long term foreign currency monetary items:
i) To the cost of the assets acquired out of this foreign currency monetary item. During the year, the Group has decapitalised
exchange difference amounting to Rs. 105.46 lakhs on restatement of long-term loans used for acquiring the fixed assets.
ii) To the Foreign Currency Monetary Item Translation Difference account. During the year, the Group has transferred exchange
gain of Rs. 6,452.75 lakhs on restatement of long-term loans. Accordingly, proportionate amount of Rs. 2,023.62 lakhs is
amortised and Depreciation charged of Rs. 17.04 lakhs for the year ended 31st March, 2010. Due to the above profit for the year
is lower by Rs. 4,551.64 lakhs.”
12. Extracts of Assets and Liabilities as on 31st March, 2010 and Income and Expenses for the year ended 31st March, 2010 related to the
interest of the Company [without elimination of the effect of transactions between the Company and Glenmark Pharmaceuticals
(Thailand) Co. Ltd., Thailand] have been extracted from the audited accounts.
Rs. in (‘000s)
Particulars 2009-2010 2008-2009
Assets
Net Fixed Assets including CWIP 5 -
Deferred Tax Asset 236 52
Cash Bank Balances 1,029 1,114
Loans and Advances 57 59
Liabilities
Current Liabilities 144 66
Income
Net Sales - -
Expenses
Selling and Operating expenses 1,269 325
Depreciation 1 -
Provision for Taxation including Deferred Tax (191) (49)
Signatures to the Schedules 1 to 21 which form an integral part of the Financial Statements.
Your Directors have pleasure in presenting their 32nd Annual Report and Audited Accounts of the Company for the year ended 31st March,
2010.
FINANCIAL RESULTS
(Rs. in Millions)
Standalone Consolidated
2009-2010 2008-2009 2009-2010 2008-2009
Profit before Interest, Depreciation & Tax 1724.50 3206.13 6685.29 6289.95
Less: Interest 301.58 551.39 1640.21 1404.76
Less: Depreciation 212.78 191.04 1206.10 1026.83
Less: Tax (Current Year & Deferred Tax) (74.49) 281.46 528.66 754.08
Less: Exceptional Items - 2.98 - 1169.55
Profit after Tax 1284.63 2179.26 3310.32 1934.73
Share of (Profit)/Loss of Minority Interest - - (65.61) (18.09)
Profit after Tax and Minority Interest 1284.63 2179.26 3244.71 1916.64
Surplus brought forward from earlier years 7480.98 5636.88 11215.45 10276.66
Profit available for appropriations 8765.61 7816.14 14460.16 12193.30
APPROPRIATIONS
Proposed Dividend on Equity Shares 107.94 100.21 107.94 100.21
Tax on Proposed Dividend on Equity Shares 17.93 17.03 17.93 17.03
Transfer to Foreign Currency Monetary Item Translation Difference
Account - - - 366.12
Residual Dividend and Dividend Tax 0.16 - 0.16 -
Transfer to General Reserves 128.46 217.93 128.46 494.49
Balance carried to Balance Sheet 8511.12 7480.97 14205.67 11215.45
8765.61 7816.14 14460.16 12193.30
DIVIDEND Options by the eligible employees of the Company and its
subsidiaries.
Your Directors recommend a Dividend of 40% (Re. 0.40 per equity
share of Re. 1/ each) to be appropriated from the profits of the year Issue of shares under QIP:
2009-10 subject to the approval of the members at the ensuing
Annual General Meeting. The dividend will be paid in compliance During the year, the Company allotted 18,712,935 Equity Shares
with applicable regulations. The dividend, if approved, will result of Re. 1/- each at a premium of Rs. 220/- per share to Qualified
in an outflow of Rs. 125.87 million (including dividend tax). Institutional Buyers pursuant to Chapter VIII of the Securities
Exchange Board of India (Issue of Capital Disclosure Requirements)
CONSOLIDATED ACCOUNTS Regulations 2009. The issue proceeds were utilised towards
repayment of debts.
In accordance with the requirements of Accounting Standard
AS-21 prescribed by the Institute of Chartered Accountants of EMPLOYEE STOCK OPTION SCHEME
India, the Consolidated Accounts for the year ended 31st March,
2010, under Indian GAAP forms part of the Annual Report. During the year, Stock Options have been issued to the employees
of the Company. On exercising the convertible options so granted,
RESULTS OF OPERATIONS the paid-up equity share capital of the company will increase by a
like number of shares.
The Company achieved consolidated Gross revenue of
Rs. 25006.47 million (Rs. 21160.33 million) registering a growth of The details of stock options granted by the Company are disclosed in
18.18% over the previous year and the Consolidated operating compliance with clause 12 of the Securities Exchange Board of India
profit before interest, depreciation and tax was Rs. 6685.29 million (Employee Stock Options Scheme and Employee Stock Purchase
as compared to Rs. 6289.95 million in the previous year. Scheme), 1999 and set out in the Annexure-B to this Report.
On standalone basis the company achieved a gross revenue of LISTING AT STOCK EXCHANGES
Rs. 10296.87 million and the Standalone operating profit before
interest, depreciation & tax was Rs. 1724.50 million as compared The Equity shares of the Company continue to be listed on
to Rs. 3206.13 million in the previous year. Bombay Stock Exchange Ltd., and The National Stock Exchange
of India Ltd. Foreign Currency Convertible Bonds are listed on the
CHANGES IN CAPITAL STRUCTURE Singapore Stock Exchange.
Issue of shares on exercise of Employees’ Stock Options: SUBSIDIARY COMPANIES
During the year, the Company allotted 604,860 Equity Shares of During the year the name of Badatur S.A. was changed to
Re. 1/- each (on pari-passu basis) pursuant to exercise of Stock Glenmark Uruguay S.A. and Glenmark Dominicana S.A. to
Report on the Corporate Governance forms an integral part of (ii) appropriate accounting policies have been selected and
this Report. The Certificate of the Practicing Company Secretary applied consistently and have made judgments and
certifying compliance with the conditions of Corporate estimates that are reasonable and prudent so as to give a
Governance as stipulated in clause 49 of the Listing Agreement true and fair view of the state of affairs of the Company as
with Stock Exchanges is annexed with the report on Corporate at 31st March, 2010 and of the profit of the Company for the
Governance. year ended 31st March, 2010;
MANAGEMENT DISCUSSION AND ANALYSIS REPORT (iii) proper and sufficient care has been taken for maintenance
of adequate accounting records in accordance with the
The management discussion and analysis report on the operations provisions of the Companies Act, 1956 for safeguarding the
of the company, as required under the Listing agreements with assets of the Company and for preventing and detecting
the stock exchanges is provided in a separate section and forms a fraud and other irregularities;
part of this report.
(iv) the annual accounts have been prepared on a going concern
AUDITORS basis.
M/s. Price Waterhouse, Chartered Accountants, have been the APPRECIATION AND ACKNOWLEDGEMENTS
Statutory Auditors of the Company since F.Y. 2002-03. The Audit
Committee and the Board of Directors have decided that in Your Directors express their gratitude to the Company’s customers,
order to adhere to the best Corporate Governance practices, the shareholders, business partner’s viz. distributors and suppliers,
Statutory Auditors should be changed periodically on rotational medical profession, Company’s bankers, financial institutions
basis. The Company has received a Special Notice pursuant to including investors for their valuable sustainable support and
Section 225 of the Companies Act, 1956 from a member proposing Co-operation.
to move a resolution for the appointment of Walker, Chandiok & Your Directors commend the continuing commitment and
Co. Chartered Accountants, as Statutory Auditors of the Company dedication of employees at all levels.
in place of the retiring auditors, M/s. Price Waterhouse at the
ensuing Annual General Meeting.
For and on behalf of the Board of Directors
Your Directors propose the appointment of Walker, Chandiok &
Co., Chartered Accountants, as Statutory Auditors of the Company G. Saldanha
at the ensuing Annual General Meeting. Chairman
Walker, Chandiok & Co. is a member firm of M/s Grant Thornton Mumbai
who is a leading international firm rated among the top 10 firms. Date: 9th August, 2010
ANNEXURE-A
Information under Section 217(1)(e) of the Companies Act, 1956 read with Companies (Disclosure of Particulars in the Report of the Board
of Directors) Rules, 1988 and forming part of the Directors’ Report.
A. CONSERVATION OF ENERGY
Energy Generation Measures Taken
Particulars
a Options granted 10,134,900
b Pricing Formula Exercise Price shall be the latest available closing market price
of the equity shares of the company, prior to the date of grant
Pursuant to Clause 49 of the Listing Agreement, a Report on Corporate Governance is given below.
1. The Company’s philosophy on Code of Governance:
The Company’s philosophy on Code of Governance is aimed at assisting the top management of the Company in the efficient
conduct of its business and in meeting its obligations to shareholders. The Company has adopted a codified Corporate Governance
Charter, inter-alia, to fulfill its corporate responsibilities and achieve its financial objectives.
The Company believes in and has consistently practiced good corporate governance. The Company creates an environment for the
efficient conduct of the business and to enable management to meet its obligations to all its stakeholders, including amongst others,
shareholders, customers, employees and the community in which the Company operates.
2. Board of Directors:
A. Composition:
The Board comprises of 10 Directors, of whom, three are executive, and seven are non-executive Directors. The Chairman of the
Board is a Non-Executive Director.
The Non-Executive Directors are professionals with experience in management, pharmaceutical industry, legal, finance,
marketing and general administration who bring in a wide range of skills and experience to the Board.
a) Details of the Board of Directors:
Name of the Director Status Relationship with other No. of Board No. of other Committee
Directors Meetings Directorships Membership(s) ##
attended held #
Chairman Member
Gracias Saldanha - Non-Executive Father of Mr. Glenn Saldanha and 6 1 – –
Chairman – Promoter Ms. Cheryl Pinto and Husband of
Group Mrs. B. E. Saldanha
B. E. Saldanha (Ms.) * Non-Executive Mother of Mr. Glenn Saldanha and 3 1 – –
– Promoter Ms. Cheryl Pinto and wife of Mr.
Group Gracias Saldanha
Glenn Saldanha Executive Son of Mr. Gracias Saldanha and 5 3 – 2
Managing Director – Promoter Mrs. B. E. Saldanha and brother of
and CEO Group Ms. Cheryl Pinto
Cheryl Pinto (Ms.) Executive Daughter of Mr. Gracias Saldanha 5 – – 1
– Promoter and Mrs. B. E. Saldanha and Sister
Group of Mr. Glenn Saldanha
J. F. Ribeiro Non-Executive None 5 3 5 --
– Independent
A. S. Mohanty Executive None 6 – – –
Glenmark
BSE Sensex
12000
Aug-09 280.35 202.00 217.15 15,666.64
150.00 10000
Sep-09 239.90 213.05 237.50 17,126.84 8000
Oct-09 252.90 215.45 224.15 15,896.28 100.00
6000
Nov-09 258.65 210.00 231.35 16,926.22 50.00 4000
Dec-09 287.05 234.00 275.00 17,464.81 2000
Apr-09
May-09
Jun-09
Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Feb-10 268.00 240.25 251.60 16,429.55
Months
Mar-10 273.00 230.00 266.25 17,527.77 Glenmark BSE
On exercising the convertible options so granted under the ESOS of the Company, the paid-up equity share capital of the
company will increase by a like number of shares.
i. Convertible at the option of the bondholder at any time on or after 28th March, 2005 but prior to the close of business
on 2nd January, 2010 at a fixed exchange rate of Rs. 43.66 per 1 USD and price of Rs. 215.5985(post adjustment for bonus
and split) per share of Re. 1 each.
ii. Redeemable in whole but not in part at the option of the company on or after 15th February, 2008 if closing price of the
share for each of the 25 consecutive trading days immediately prior to the date upon which notice of such redemption is
given was at least 130% of the applicable Early Redemption Amount divided by the conversion ratio.
iii. Redeemable on maturity date on 16th February, 2010 at 133.74% of its principal amount if not redeemed or converted
earlier. The redemption premium of 33.74% payable on maturity of the bond if there is no conversion of the bond to be
debited to Securities Premium account evenly over the period of 5 years from the date of issue of bonds.
During the year, 1000 FCC bonds of USD 1000 each aggregating to USD 1 Million were redeemed on 16th February, 2010
on maturity. As of 31st March, 2010, NIL FCC Bonds (2009-1000) of USD 1000 each are outstanding.
C) The company had issued 50,000 Zero Coupon Foreign Currency Convertible Bonds of USD 1000 each.
i. Convertible at the option of the bondholder at any time on or after 15th November, 2006 but prior to the close of
business on 2nd January 2010 at a fixed exchange rate of Rs. 43.66 per 1 USD and the price of Rs. 253.11(post adjustment
for split) per share of Re. 1/- each.
ii. Redeemable in whole but not in part at the option of the company on or after 15th February, 2009 if closing price of the
share for each of the 25 consecutive trading days immediately prior to the date upon which notice of such redemption is
given was at least 130% of the applicable Early Redemption Amount divided by the conversion ratio.
iii. Redeemable on maturity date on 16th February, 2010 at 134.07% of its principal amount if not redeemed or converted
earlier. The redemption premium of 34.07% payable on maturity of the bond if there is no conversion of the bond to be
debited to Securities Premium account evenly over the period of 5 years from the date of issue of bonds.
During the year, 5000 FCC Bonds of USD 1000 each aggregating to USD 5 Million were redeemed on 16th February, 2010
on maturity. As of 31st March, 2010 NIL FCC Bonds (2009-5000) of USD 1000 each are outstanding.
D) The company had issued 30,000 Zero Coupon Foreign Currency Convertible Bonds of USD 1000 each.
i. Convertible at the option of bondholder at any time on or after 11th November, 2007 and prior to the close of business
on 29th November, 2010 at a fixed exchange rate of Rs. 44.94 per 1 USD and the conversion price of Rs. 582.60 per share
of Re. 1/- each.
ii. Redeemable in whole but not in part at the option of the Company, at any time on or after 10th January, 2010, if the
closing price of shares (translated into US Dollars at the prevailing rate) for each of the 25 consecutive trading days
immediately prior to the date upon which notice of redemption is given was at least 130% of the applicable early
redemption amount divided by the applicable Conversion Ratio.
iii. Redeemable on 11th January, 2011 at 139.729% of its Principal amount if not redeemed or converted earlier. The
redemption premium of 39.729% payable on maturity of the bond if there is no conversion of the bond to be debited to
Securities Premium account evenly over the period of 5 years from the date of issue of bonds.
As of 31st March, 2010, 30000 FCC bonds of USD 1000 each aggregating to USD 30 Million are outstanding.
Shareholders are advised to opt for payment of dividend through ECS. The salient benefits of receiving dividend payment through
ECS amongst others may be listed as below:
a) There are no clearing charges in the hands of the investor/recipient, the same are borne by the Company;
b) Risk as to fraudulent encashment of the dividend warrants, loss/interception of dividend warrants in transit, are eliminated;
c) The facility ensures instant credit of the dividend amount in the desired account which to the recipient, means effortless and
speedier transaction and hassles as to revalidation etc are done away with;
To the Members of
Glenmark Pharmaceuticals Limited
1. We have audited the attached Balance Sheet of Glenmark Pharmaceuticals Limited (the “Company”) as at 31st March, 2010, and the
related Profit and Loss Account and Cash Flow Statement for the year ended on that date annexed thereto, which we have signed
under reference to this report. These financial statements are the responsibility of the Company’s Management. Our responsibility is
to express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by Management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor’s Report) Order, 2003, as amended by the Companies (Auditor’s Report) (Amendment) Order,
2004 (together the “Order”), issued by the Central Government of India in terms of sub-section (4A) of Section 227 of ‘The Companies
Act, 1956’ of India (the ‘Act’) and on the basis of such checks of the books and records of the Company as we considered appropriate
and according to the information and explanations given to us, we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the Order.
4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that:
(a) We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the
purposes of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our
examination of those books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books
of account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211 of the Act;
(e) On the basis of written representations received from the directors, as on 31st March, 2010 and taken on record by the Board
of Directors, none of the directors is disqualified as on 31st March, 2010 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Act;
(f) In our opinion and to the best of our information and according to the explanations given to us, the said financial statements
together with the notes thereon and attached thereto give, in the prescribed manner, the information required by the Act, and
give a true and fair view in conformity with the accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the company as at 31st March, 2010;
(ii) in the case of the Profit and Loss Account, of the profit for the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
For Price Waterhouse
Firm Registration Number: 301112E
Chartered Accountants
Partha Ghosh
Partner
Membership Number: F-55913
Place: Mumbai
Date: 28th May, 2010
Name of the statute Nature of Amount* Period to which Forum where the dispute is
dues (Rs. lakhs) the amount relates pending
The Central Excise Act, 1944 Excise Duty 247.02 2002 to 2006 The Central Excise and Service Tax
Appellate Tribunal
The Gujarat Sales Tax Act, 1969/The Sales Tax 20.64 2004 - 2005 Deputy Commissioner (CT) Appeals
Central Sales Act, 1956 (Gujarat)
* Net of amount deposited under protest
Partha Ghosh
Partner
Membership Number: F-55913
Place: Mumbai
Date: 28th May, 2010
Rs. in (‘000s)
As at As at
Schedules 31st March, 2010 31st March, 2009
I. SOURCES OF FUNDS
1. SHAREHOLDERS' FUNDS
a) Capital 1 269,838 250,520
b) Reserves and Surplus 2 17,464,316 12,049,185
17,734,154 12,299,705
2. LOAN FUNDS
a) Secured Loans 3 486,403 1,122,123
b) Unsecured Loans 4 7,111,150 9,536,950
7,597,553 10,659,073
3. DEFERRED TAX LIABILITY 5 327,713 411,232
TOTAL 25,659,420 23,370,010
II. APPLICATION OF FUNDS
1. FIXED ASSETS 6
a) Gross Block 3,086,286 2,704,814
b) Less: Depreciation 1,182,210 976,745
c) Net Block 1,904,076 1,728,069
d) Capital Work-in-progress 468,830 324,493
2,372,906 2,052,562
2. INVESTMENTS 7 9,929,191 2,376,317
3. DEFERRED TAX ASSETS 8 96,727 88,060
4. CURRENT ASSETS, LOANS AND ADVANCES
a) Inventories 9 1,503,976 1,303,143
b) Sundry Debtors 10 3,300,915 4,098,190
c) Cash and Bank Balances 11 50,772 116,877
d) Loans and Advances 12 10,481,709 15,726,828
15,337,372 21,245,038
LESS: CURRENT LIABILITIES AND PROVISIONS
a) Current Liabilities 13 1,902,857 2,232,555
b) Provisions 14 173,919 159,412
2,076,776 2,391,967
NET CURRENT ASSETS 13,260,596 18,853,071
TOTAL 25,659,420 23,370,010
NOTES TO THE FINANCIAL STATEMENTS 21
Schedules referred to above and notes attached there to form an integral part of the Balance Sheet.
This is the Balance Sheet referred to in our report of even date.
Rs. in (‘000s)
Year ended Year ended
Schedules 31st March, 2010 31st March, 2009
INCOME
Sales and Operating Income 15 10,296,868 8,661,724
Other Income 16 91,897 994,923
10,388,765 9,656,647
EXPENDITURE
Cost of Sales 17 3,730,510 3,055,159
Selling and Operating Expenses 18 4,473,195 2,880,774
Depreciation 6 212,778 191,045
Interest (net) 19 301,584 551,386
Research and Development Expenses 20 460,560 514,584
9,178,627 7,192,948
Profit before Tax and Exceptional items 1,210,138 2,463,699
Exceptional Item - 2,980
PROFIT BEFORE TAX 1,210,138 2,460,719
Provision for Taxation [Refer Note 1(xi) and 10 of Schedule 21]
- Current Year [includes wealth tax provision Rs. 200 (Prev. Year – Rs.275)] 247,487 272,275
- MAT Credit (Entitlement)/Utilisation (229,795) 557,518
- Deferred Tax (92,186) (632,382)
- Fringe Benefit Tax - 74,748
- Prior Period Tax - 9,297
NET PROFIT AFTER TAX 1,284,632 2,179,263
Balance Profit Brought Forward 7,480,978 5,636,879
NET PROFIT AVAILABLE FOR APPROPRIATION 8,765,610 7,816,142
Proposed Dividend on Equity Shares 107,935 100,208
Tax on Proposed Dividend on Equity Shares 17,927 17,030
Residual Dividend and Dividend Tax 163 -
Transfer to General Reserve 128,463 217,926
BALANCE CARRIED TO BALANCE SHEET 8,511,122 7,480,978
Earnings Per Share (Rs.) [Refer Note 5 of Schedule 21]
Basic 4.93 8.72
Diluted 4.92 8.54
Face Value Per Share 1.00 1.00
NOTES TO THE FINANCIAL STATEMENTS 21
Schedules referred to above and notes attached thereto form an integral part of the
Profit and Loss Account.
This is the Profit and Loss Account referred to in our report of even date.
Rs. in (‘000s)
Year ended Year ended
31st March, 2010 31st March, 2009
A. CASH FLOW FROM OPERATING ACTIVITIES:
Net Profit before Tax 1,210,138 2,460,719
Adjustments for:
Depreciation 212,778 191,045
Interest Expense 996,645 948,134
Interest Income (695,061) (396,748)
Income from Investment - Dividends (75) (38)
(Profit)/Loss on Fixed Assets sold 9,112 (4,102)
Provision for Doubtful Advances written back (700) -
Provision for Bad & Doubtful Debts 17,500 30,000
Provision for Gratuity & Leave Encashment 34,629 45,822
Exceptional Item - 2,980
Unrealised Foreign Exchange (Gain)/Loss 1,192,324 (744,988)
Operating Profit Before Working Capital Changes 2,977,290 2,532,824
Adjustments for changes in working capital:
- (Increase)/Decrease in Sundry Debtors 585,198 (1,173,745)
- (Increase)/Decrease in Other Receivables 7,225,571 (436,075)
- (Increase) in Inventories (200,833) (177,893)
- Increase/(Decrease) in Trade and Other Payables (392,699) 642,603
Cash Generated from Operations 10,194,527 1,387,714
- Taxes (Paid) (Net of Tax Deducted at Source) (362,878) (447,125)
Net Cash from Operating Activities 9,831,649 940,589
B. CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of Fixed Assets (463,034) (362,003)
Capital Work-in-Progress (144,337) 71,423
Proceeds from Sale of Fixed Assets 64,562 90,187
Purchase of Investments (7,542,575) (419,613)
Loans & Advances to Subsidiary Companies (2,564,114) (5,346,365)
Interest Received 647,208 74,890
Dividend Received 75 38
Net Cash used in Investing Activities (10,002,215) (5,891,443)
Rs. in (‘000s)
Year ended Year ended
31st March, 2010 31st March, 2009
C. CASH FLOW FROM FINANCING ACTIVITIES:
Proceeds from Fresh Issue of
Share Capital (including Securities Premium) 4,142,780 350,586
Proceeds/(Repayment) of Long Term Borrowings 4,365,679 (791)
Proceeds/(Repayment) of Short Term Borrowings (6,426,451) 6,176,352
Proceeds from Working Capital Facilities movement (464,470) (634,150)
Redemption of FCCB (279,960) -
FCCB Premium paid on redemption including TDS (105,288) -
Interest Paid (1,009,833) (935,747)
Dividend Paid (100,966) (72)
Dividend Tax Paid (17,030) -
Net Cash from Financing Activities 104,461 4,956,178
Net Increase/(Decrease) in Cash & Cash Equivalents (66,105) 5,324
This is the Cash Flow Statement referred to in our report of even date.
Rs. in (‘000s)
As at As at
31st March, 2010 31st March, 2009
1. CAPITAL
Authorised
350,000,000 (2009 – 350,000,000) Equity Shares of Re. 1 each 350,000 350,000
4,000,000 (2009 – 4,000,000) Cumulative Redeemable non-convertible preference shares 400,000 400,000
of Rs. 100 each
Rs. in (‘000s)
As at As at
Notes 31st March, 2010 31st March, 2009
3. SECURED LOANS
From Banks
Term Loan 1 338,550 509,800
Working Capital Facilities 2 147,853 612,323
TOTAL 486,403 1,122,123
Notes:
1. Term loan is secured by way of exclusive charge as the case may be, at certain locations, on Company's fixed assets both present and
future.
2. Working Capital Facilities is secured by hypothecation of Stocks of raw materials, packing materials, finished goods, work in process,
receivables and equitable mortgage on fixed assets at the manufacturing facility at Nasik and Research and Development centre at
Sinnar, Nasik.
Rs. in (‘000s)
As at As at
31st March, 2010 31st March, 2009
4. UNSECURED LOANS
Short Term Loans from Banks 1,221,727 7,656,138
Other Loans from Banks 4,481,731 -
Foreign Currency Convertible Bonds (due within one year) [Refer Note 15 of Schedule 21] 1,354,200 1,835,280
Security Deposit 53,492 45,532
TOTAL 7,111,150 9,536,950
6. FIXED ASSETS [Refer Note 1(ii), 1(iii), 1(iv), 1(v)(b), 1(x) and 1(xii) of Schedule 21]
Rs. in (‘000s)
GROSS BLOCK DEPRECIATION/AMORTISATION NET BLOCK
As at Additions Deductions As at As at For the On As at As at As at
31st March, during the 31st March, 31st March, year Deductions 31st March, 31st March, 31st March,
2009 year 2010 2009 2010 2010 2009
Tangible assets
Freehold Land 36,731 11,737 - 48,468 - - - - 48,468 36,731
Leasehold Land 80,894 4,758 (54,400) 31,252 2,414 967 (1,098) 2,283 28,969 78,480
Factory Buildings 351,416 114,889 - 466,305 55,484 15,298 - 70,782 395,523 295,932
Other Buildings &
Premises 201,122 5,822 - 206,944 24,273 3,340 - 27,613 179,331 176,849
Plant and Machinery 240,266 56,861 (1,661) 295,466 48,909 12,620 (46) 61,483 233,983 191,357
Furniture and Fittings 267,171 37,712 - 304,883 132,260 29,677 - 161,937 142,946 134,911
Equipments 994,179 190,295 (2,518) 1,181,956 361,991 79,988 (1,689) 440,290 741,666 632,188
Vehicles 40,818 2,037 (6,716) 36,139 17,033 5,543 (4,329) 18,247 17,892 23,785
Intangible assets
Computer software 59,496 39,212 (16,556) 82,152 22,866 13,808 (151) 36,523 45,629 36,630
Brands 432,721 - - 432,721 311,515 51,537 - 363,052 69,669 121,206
TOTAL 2,704,814 463,323 (81,851) 3,086,286 976,745 212,778 (7,313) 1,182,210 1,904,076 1,728,069
Previous Year 4,837,377 408,920 (2,541,483) 2,704,814 1,162,046 191,045 (376,346) 976,745 - -
Capital Work-in-progress 468,830 324,493
Notes:
1. Addition to Fixed assets includes Capital expenditure of Rs. 57,978 [2009 - Rs. 104,456] incurred at approved R & D centres.
2. Addition to assets include Rs. 7,499 (2009 - Rs. 5,400) being borrowing costs.
Rs. in (‘000s)
As at As at
31st March, 2010 31st March, 2009
7. INVESTMENTS [Refer Note 1(vi) and 14(e) of Schedule 21]
Long Term Investments - At Cost - Fully Paid
Quoted - non-trade
Equity shares
9,000 (2009 – 9,000) Bank of India of Rs. 10 each [Market Value Rs. 3,067 (2009 – Rs. 1,979)] 405 405
1,209 (2009 – 1,209) IDBI Bank Limited of Rs. 10 each [Market Value Rs. 139 (2009 – Rs. 55)] 34 34
439 439
Investment in Government Securities
National Savings Certificate - Sixth Issue 22 22
Unquoted - non-trade
1 (2009 – 1) Time Share of Dalmia Resorts Limited 20 20
1 (2009 – 1) Equity Share of Esquados 340,000 of Glenmark Pharmaceutica Limitada., 48 48
Lisbon (Portugal)
213,032 (2009 - 213,032) Equity Shares of Bharuch Eco-Aqua Infrastructure Limited of 2,130 2,130
Rs. 10 each, fully paid-up
1,350,000 (2009 - 1,350,000) 7% cumulative preference shares of Rs. 100 each fully paid-up 135,000 135,000
of Marksans Pharma Ltd.
Investment with Napo Pharmaceuticals Inc. [1,176,471 (2009 - 1,176,471) Preferred shares 43,560 43,560
of USD 0.85 each]
Investment in Joint Venture - Glenmark Pharmaceuticals (Thailand) Co. Ltd. [9,800 Ordinary 2,508 1,348
shares of THB 100 each and 16,415 Ordinary Shares of THB 100 each (Paid-up 50 THB) & 2
Preference shares of THB 100 each (2009 - 9,800 Ordinary shares & 2 Preference shares) of
THB 100 each]
Investments in Subsidiary Companies - Unquoted - non-trade
a) Glenmark Exports Limited, India 18,500 18,500
[1,850,020 (2009 - 1,850,020) Equity Shares of Rs. 10 each]
b) Glenmark Impex LLC, Russia 722,279 432,287
[Roubles 455,701,648 (2009 - 266,741,126)]
c) Glenmark Philippines Inc., Philippines 116,703 87,899
[640,490 (2009 - 497,162) shares of Pesos 200 each]
d) Glenmark Pharmaceuticals (Nigeria) Ltd., Nigeria 86,609 51,335
[267,533,341 (2009 - 157,115,916) shares of Naira 1 each]
e) Glenmark Pharmaceuticals Malaysia Sdn. Bhd., Malaysia 15,286 13,977
[1,200,861 (2009 - 1,107,955) shares of RM 1 each]
f) Glenmark Generics Ltd, India [Refer Note 4 of Schedule 21] 7,868,000 717,000
[143,210,000 (2009 - 71,700,000) shares of Rs. 10 each]
g) Glenmark Holding S. A., Switzerland 797,113 797,113
[22,520,000 (2009 - 22,520,000) shares of CHF 1 each]
h) Glenmark Pharmaceuticals (Australia) Pty. Ltd., Australia 65,047 60,734
[1,976,002 (2009 - 1,861,002) shares of AUD 1 each]
i) Glenmark Pharmaceuticals Egypt S.A.E., Egypt 42,940 1,980
[4,975,154 (2009 - 250,000) shares of EGP 1 each]
j) Glenmark Pharmaceuticals FZE (U.A.E.) 12,925 12,925
[1 (2009 - 1) shares of AED 1,000,000 each]
k) Glenmark Dominicana, SRL, Dominican Republic* 62 -
[100 (2009 - 50) shares of RD 1000 each]
9,928,752 2,375,878
TOTAL 9,929,191 2,376,317
Aggregate book value of Investments
- Quoted [Market value Rs. 3,206 (2009 - Rs. 2,034)] 439 439
- Unquoted 9,928,752 2,375,878
TOTAL 9,929,191 2,376,317
*denotes amount less than Rs. 1 ('000)
Rs. in (‘000s)
As at As at
31st March, 2010 31st March, 2009
8. DEFERRED TAX ASSET [Refer Note 1(xi) of Schedule 21]
Provision for Bad Debts and Doubtful Advances 68,017 62,306
Others 28,710 25,754
TOTAL 96,727 88,060
Bank balances with Non-Scheduled banks in current account includes: Rs. in (‘000s)
As at 31st Maximum amount outstanding As at 31st Maximum amount outstanding
March, 2010 during the year 2009-2010 March, 2009 during the year 2008-2009
Bank for Foreign Trade of Vietnam 58 404 92 1,502
Imperial Bank 66 225 116 170
Foreign Trade Bank of Cambodia 335 484 163 383
State Export-Import Bank of Ukraine 32 1,826 183 2,395
Taib Kazak Bank 461 948 64 838
Alp Jamol Bank USD A/c 224 723 499 1,240
Alp Jamol Bank Local Currency A/c 7 522 40 585
HSBC Singapore USD 19 30 30 143
Barclays Bank,New Maadi Branch - 345 346 800
Bank of Kazakhstan – USD A/c - 1,222 618 775
1,202 2,151
Bank balances with Non-Schedule Banks in Deposit account includes:
HSBC Call Deposit USD 113 126 126 126
Rs. in (‘000s)
As at As at
31st March, 2010 31st March, 2009
12. LOANS AND ADVANCES (unsecured, considered good unless otherwise stated)
Advances recoverable in cash or kind or for value to be received
Considered good 375,370 576,056
Considered doubtful 29,100 29,800
404,470 605,856
Less: Provision for Doubtful advances (29,100) (29,800)
375,370 576,056
Receivable from Glenmark Generics Ltd. 770,500 7,598,996
Advances to subsidiaries [Refer Note 14(a) and (b) of Schedule 21] 8,508,090 6,649,554
Share Application Money - pending allotment
- [Egyptian Pound Nil (2009 - 1,158,308)] Glenmark Pharmaceuticals Egypt (S.A.E.) - 10,299
Advance to Vendors 104,275 432,999
Advance tax [net of provision of Rs. 1,524,636 (2009 - Rs. 1,313,135)] 204,699 91,382
MAT Credit Entitlement [Refer Note 10 of Schedule 21] 232,304 2,509
Balance with Excise Authorities 163,809 238,609
Deposits 122,662 126,424
TOTAL 10,481,709 15,726,828
14. PROVISIONS
Proposed Dividend 107,935 100,208
Tax payable on Proposed Dividend 17,927 17,030
Provision for Wealth Tax 252 276
Provision for Fringe Benefit Tax - 2,050
Provident Fund Scheme payable 7,543 7,288
Provision for Gratuity and leave encashment [Refer Note 11 of Schedule 21] 40,262 32,560
TOTAL 173,919 159,412
Rs. in (‘000s)
Year ended Year ended
31st March, 2010 31st March, 2009
15. SALES AND OPERATING INCOME [Refer Note 1(ix) and 13(b) of Schedule 21]
Sale of goods* 10,281,576 8,647,288
Income from services 15,292 14,436
TOTAL 10,296,868 8,661,724
* includes Sales Tax and Excise Duty aggregating Rs. 388,827 (2009 – Rs. 311,401)
and Rs. 77,763 (2009 – Rs. 108,810) respectively.
Rs. in (‘000s)
Year ended Year ended
31st March, 2010 31st March, 2009
18. SELLING AND OPERATING EXPENSES (Contd.)
Repairs & Maintenance - Others 59,126 63,835
Auditors' remuneration
- Audit fees 4,800 4,200
- Other matters 96 126
- Out of pocket expenses 33 124
Loss on sale of assets 9,112 -
Exchange Loss 1,143,543 -
Other operating expenses 343,169 327,003
TOTAL 4,473,195 2,880,774
20. RESEARCH AND DEVELOPMENT EXPENSES [Refer Note 1(x) of Schedule 21]
Salary and other allowances 180,181 180,474
Contribution to Provident and other funds 6,733 6,583
Staff welfare expenses 2,120 2,241
Incentive and commission 24 9,290
Consumable and Chemicals 140,888 166,241
Electricity charges 18,970 19,481
Repairs and maintenance - Building 182 131
Repairs and maintenance - Others 25,060 17,925
Insurance premium 1,694 1,810
Other expenses 84,708 110,408
TOTAL 460,560 514,584
Notes:
i) In respect of labour/industrial disputes.
ii) The amount related to Credit facilities given by bank against debtors.
iii) Corporate guarantee given on behalf of various subsidiaries :
Citibank [Given on behalf of Glenmark Holding SA, Switzerland (GHSA)] 4,514,000 5,098,000
ICICI Bank [Given on behalf of Glenmark Holding SA, Switzerland (GHSA)] 645,502 729,014
HSBC Bank (Given on behalf of Glenmark Farmaceutica Ltda, Brazil) - 101,960
Citi Bank (Given on behalf of Glenmark Pharmaceuticals S.R.L. Romania) 5,204 5,804
ALD Automotive (Given on behalf of Glenmark Impex, L.L.C. Russia) 98,026 109,334
ING Vysya Bank (Given on behalf of Glenmark Generics Ltd.) 430,000 430,000
Central Bank of India (Given on behalf of Glenmark Generics Ltd., India) 1,500,000 1,500,000
Citibank (Given on behalf of Glenmark Pharmaceutica Ltda., Brazil) 90,280 -
Yes Bank Ltd. (Given on behalf of Glenmark Generics Ltd.) 1,000,000 -
iv) The Company's subsidiary, Glenmark Generics Inc., U.S.A. (GGI) [formerly known as Glenmark Pharmaceuticals Inc., U.S.A.
(GPI)] on 2nd June, 2006 has entered into an Agreement with Paul Royalty Fund Holdings II (PRF) pursuant to which, PRF
will pay upto USD 27 million to GGI for the development and commercialization of certain products for the US market.
Further, the Company has entered into a Master Services, License, Manufacturing and Supply Agreement with GGI to
develop and manufacture the aforesaid products, and also issued a financial guarantee in favour of PRF for an amount
not exceeding USD 27 million for the benefits under the said agreement.
b) Estimated amount of contracts remaining to be executed on capital account, net of advances, not provided for as at 31st March,
2010 aggregate Rs. 137,151 (2009 – Rs. 120,170).
4. During the year, the Company subscribed to 71,510,000 equity shares for a consideration of Rs. 7,151,000 ('000) in its subsidiary
Glenmark Generics Limited for the balance Business sale consideration.
5. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the weighted average number of shares outstanding are adjusted for the
effects of all dilutive potential equity shares from the exercise of options on unissued share capital and on conversion of FCC Bonds.
The calculations of earnings per share (basic and diluted) are based on the earnings and number of shares as computed below.
Rs. in (‘000s)
2009-2010 2008-2009
Profit after tax for the financial year (attributable to equity shareholders) 1,284,632 2,179,263
In (‘000s)
Reconciliation of number of shares No. of Shares No. of Shares
Weighted average number of shares:
For basic earnings per share 260,759 250,025
Add:
Deemed exercise of options on unissued equity share capital and conversion of FCC Bonds 565 5,237
For diluted earnings per share 261 ,324 255,262
Earnings per share (nominal value Re. 1 each) Rs. Rs.
Basic 4.93 8.72
Diluted 4.92 8.54
6. SEGMENT INFORMATION
Business segments
The Company is primarily engaged in a single segment business of formulations and is managed as one entity, for its various activities
and manufacturing and marketing of pharmaceutical is governed by a similar set of risks and returns.
Geographical segments
In the view of the management, the Indian and export markets represent geographical segments.
Sales by market – The following is the distribution of the Company's sale by geographical market:
Rs. in (‘000s)
2009-2010 2008-2009
Geographical segment
India 7,528,626 6,146,628
Other than India* 2,768,242 2,515,096
TOTAL 10,296,868 8,661,724
* includes deemed exports aggregating Rs. Nil (2009 – Rs. 354,036)
Assets and additions to fixed assets by geographical area – The following table shows the carrying amount of segment assets and
additions to fixed assets by geographical area in which the assets are located:
Rs. in (‘000s)
India Others* India Others*
2009-2010 2009-2010 2008-2009 2008-2009
Carrying amount of segment assets 25,558,999 2,080,470 23,303,046 2,370,871
Additions to fixed assets 463,323 - 408,920 -
* Others represent receivables from debtors located outside India including those related to deemed exports and cash and bank
balances of branches outside India.
7. RELATED PARTY DISCLOSURES
In accordance with the requirements of Accounting Standard - 18 "Related Party Disclosures", the names of the related parties where
control exists and/or with whom transactions have taken place during the year and description of relationships, as identified and
certified by the management are as follows:
a) Parties where direct/indirect control exists
i) Subsidiary Companies
Glenmark Pharmaceuticals Europe Ltd., U.K.
Glenmark Generics (Europe) Ltd., U.K. [formerly known as Glenmark Pharmaceuticals (Europe) Ltd.]
Glenmark Pharmaceuticals S.R.O. (formerly known as Medicamenta A.S., Czech Republic)
Glenmark Pharmaceuticals SK, s.r.o., Slovak Republic (Formerly known as Medicamenta SK SRO)
Glenmark Pharmaceuticals S.A., Switzerland
Glenmark Holding S.A., Switzerland
Glenmark Generics Holding S.A., Switzerland
Glenmark Generics Finance S. A., Switzerland
Glenmark Pharmaceuticals S.R.L., Romania
Glenmark Pharmaceuticals Eood., Bulgaria
Glenmark Distributor SP z.o.o., Poland
Glenmark Pharmaceuticals SP. z.o.o., Poland
Glenmark Generics Inc., USA
Glenmark Therapeutics Inc., USA
Glenmark Farmaceutica Ltda., Brazil
Glenmark Generics S.A., Argentina
Glenmark Pharmaceuticals Mexico, S.A. DE C.V., Mexico
Glenmark Pharmaceuticals Peru SAC., Peru
Glenmark Pharmaceuticals Colombia Ltda., Colombia
Glenmark Uruguay S.A. (formerly known as Badatur S.A., Uruguay)
Glenmark Pharmaceuticals Venezuela., C.A., Venezuela
Glenmark Dominicana SRL, Dominican Republic (formerly known as Glenmark Dominicana S.A.)
Glenmark Pharmaceuticals Egypt S.A.E., Egypt
Glenmark Pharmaceuticals FZE., U.A.E.
Glenmark Impex L.L.C., Russia
Glenmark Philippines Inc., Philippines
Glenmark Pharmaceuticals (Nigeria) Ltd., Nigeria
Glenmark Pharmaceuticals Malaysia Sdn Bhd., Malaysia
Glenmark Pharmaceuticals (Australia) Pty Ltd., Australia
Glenmark South Africa (Pty.) Ltd., South Africa
Glenmark Pharmaceuticals South Africa (Pty.) Ltd., South Africa
Glenmark Exports Ltd., India
Glenmark Generics Ltd., India
ii) Investment in Joint Venture
Glenmark Pharmaceuticals (Thailand) Co. Ltd., Thailand
b) Related party relationships where transactions have taken place during the year
Subsidiary Companies
Glenmark Exports Ltd., India
Glenmark Farmaceutica Ltda., Brazil
Rs. in (‘000s)
2009-2010 2008-2009
7. Purchase of Fixed Assets 23,400 86,872
Glenmark Pharmaceuticals S.A., Switzerland 23,400 82,652
Glenmark Generics Ltd., India - 4,220
8. Advance received - 1,920
Glenmark Pharmaceuticals (Australia) Pty. Ltd., Australia - 1,920
9. Advances given 2,405 107
Glenmark Pharmaceuticals (Australia) Pty. Ltd., Australia - 107
Glenmark Pharmaceuticals (Nigeria) Ltd., Nigeria 2,405 -
10. Loan given to 3,417,084 5,719,717
Glenmark Holding S.A., Switzerland 3,410,337 4,775,744
Glenmark Pharmaceuticals (Nigeria) Ltd., Nigeria - 20,765
Glenmark Pharmaceuticals (Australia) Pty. Ltd., Australia - 19,875
Glenmark Generics Ltd., India - 903,333
Glenmark Pharmaceuticals Egypt S.A.E., Egypt 6,747 -
11. Loan repaid by 1,598,644 798,190
Glenmark Holding S.A., Switzerland 997,570 -
Glenmark Pharmaceuticals (Australia) Pty. Ltd., Australia - 16,200
Glenmark Philippines Inc., Philippines - 19,484
Glenmark Generics Ltd., India 594,327 762,506
Glenmark Pharmaceuticals Egypt S.A.E., Egypt 6,747 -
12. Interest on Loan Given 684,803 393,637
Glenmark Philippines Inc., Philippines - 228
Glenmark Impex L.L.C., Russia 14,080 14,085
Glenmark Holding S.A., Switzerland 260,734 118,103
Glenmark Pharmaceuticals (Australia) Pty. Ltd., Australia - 965
Glenmark Pharmaceuticals (Nigeria) Ltd., Nigeria 3,203 2,687
Glenmark Generics Ltd., India 406,549 257,569
Glenmark Pharmaceuticals Egypt S.A.E., Egypt 237 -
13. Expenses paid on behalf of Glenmark Pharmaceuticals Ltd., India 54,216 22,122
Glenmark Farmaceutica Ltda., Brazil 243 815
Glenmark Generics Ltd., India 3,435 2,927
Glenmark Impex L.L.C., Russia 24,469 18,380
Glenmark Pharmaceuticals FZE., U.A.E. 26,069 -
14. Expenses paid on behalf of Glenmark Generics Ltd., India 85,219 90,019
15. Reimbursement of expenses to Glenmark Exports Ltd., India 45,780 45,661
16. Other Income from 30,352 29,135
Glenmark Generics Ltd., India 4,290 -
Glenmark Holding S.A., Switzerland 26,062 29,135
17. Labour Charges to Glenmark Generics Ltd., India 592 5,260
18. Factory rent to Glenmark Generics Ltd., India 1,650 -
Rs. in (‘000s)
2009-2010 2008-2009
e) Related party balances
Receivable/(Payable) from/(to) Subsidiary companies 9,888,720 15,199,299
Glenmark Exports Ltd., India 159,479 661,603
Glenmark Farmaceutica Ltda., Brazil 63,628 36,637
Glenmark Philippines Inc., Philippines 18,085 24,505
Glenmark Pharmaceuticals S.A., Switzerland 918,438 559,214
Glenmark Holding S.A., Switzerland 7,422,429 5,519,684
Glenmark Pharmaceuticals (Nigeria) Ltd., Nigeria 47,239 61,799
Glenmark Generics Ltd., India 770,500 7,858,349
Glenmark Impex L.L.C., Russia 488,619 477,508
Glenmark Pharmaceuticals South Africa (Pty.) Ltd., South Africa 395 -
Glenmark Pharmaceuticals FZE., U.A.E. (6,486) -
Glenmark Generics SA., Argentina 1,091 -
Glenmark Pharmaceuticals Venezuela., C.A., Venezuela 5,303 -
8. OUTSTANDING DUES TO MICRO, SMALL AND MEDIUM SCALE BUSINESS ENTITIES
The Company has not received any information from the "suppliers" regarding their status under the Micro, Small and Medium
Enterprises Development Act, 2006 & hence disclosures, if any, relating to the amounts as at year end together with interest paid/
payable as required under the said Act have not been given.
9. LEASES
The Company has taken on lease/leave and licence godowns/residential & office premises at various locations in the country.
i) The Company's significant leasing arrangements are in respect of the above godowns & premises (including furniture and
fittings therein, as applicable). The aggregate lease rentals payable are charged to Profit and Loss Account as Rent.
ii) The Leasing arrangements which are cancellable range between 11 months and 5 years. They are usually renewable by mutual
consent on mutually agreeable terms. Under these arrangements, generally refundable interest free deposits have been given.
An amount of Rs. 83,911 ('000) [2009 - Rs. 78,559 ('000)] towards deposit and unadjusted advance rent is recoverable from the
lessor.
10. TAXATION
Provision for current taxation for the Company of Rs. 211,500 ('000) represents Minimum Alternate Tax pursuant to the provisions of
Section 115JB of the Income Tax Act, 1961 of India.
The Finance Act, 2005 inserted sub-section (1A) to Section 115JAA to grant tax credit in respect of MAT paid under Section 115JB of the
Act with effect from Assessment Year 2006-07 and carry forward the credit for a period of 10 years. In accordance with the Guidance
Note issued on “Accounting For Credit Available in Respect of Minimum Alternative Tax (MAT) under the Income Tax Act, 1961” by the
Institute of the Chartered Accountants of India, the Company has recognised MAT Credit which is expected to be set-off against the
tax liability, other than MAT in future years. Accordingly, an amount of Rs. 232,304 ('000) for the current year is included as MAT Credit
Entitlement in Schedule 12 - Loans and Advances.
11. EMPLOYEE BENEFITS
The disclosures as required as per the revised AS 15 are as under:
1. Brief description of the Plans
The Company has various schemes for long-term benefits such as Provident Fund, Superannuation, Gratuity and Leave
Encashment. In case of funded schemes, the funds are recognised by the Income tax authorities and administered through
appropriate authorities. The Company's defined contribution plans are Superannuation and Employees' Provident Fund and
Pension Scheme (under the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952) since the
Company has no further obligation beyond making the contributions. The Company's defined benefit plans include Gratuity
and Leave Encashment.
Rs. in (‘000s)
2009-2010 2008-2009
2. Charge to the Profit and Loss Account based on contributions:
Superannuation 2,331 2,326
Provident fund 55,092 50,642
57,423 52,968
3. Disclosures for defined benefit plans based on actuarial reports as on 31st March, 2010: Rs. in ('000s)
2009-2010 2008-2009
Gratuity Leave Gratuity Leave
(Funded Encashment (Funded Encashment
plan) (Funded plan) (Funded
plan) plan)
(i) Change in Defined Benefit Obligation
Opening defined benefit obligation 109,641 55,509 103,127 48,330
Current service cost 16,654 14,183 15,036 15,079
Interest cost 7,919 3,719 7,711 3,169
Actuarial loss/(gain) 721 6,728 1,958 8,299
Benefits paid (8,117) (11,853) (18,191) (19,368)
Closing defined benefit obligation 126,818 68,286 109,641 55,509
(ii) Change in Fair Value of Assets
Opening fair value of plan assets 107,981 24,609 76,559 29,790
Expected return on plan assets 10,081 2,506 8,152 2,422
Actuarial gain/(loss) 2,906 (198) (4,758) (386)
Contributions by employer 10,117 16,810 46,219 12,152
Benefits paid (8,117) (11,853) (18,191) (19,369)
Closing fair value of plan assets 122,968 31,874 107,981 24,609
(iii) Reconciliation of Present Value of Defined Benefit Obligation
and the Fair Value of Assets
Present value of funded obligations as at year end 126,818 68,286 109,641 55,509
Fair value of plan assets as at year end (122,968) (31,874) (107,981) (24,609)
Funded Liability/(Asset) recognised in the Balance Sheet 3,850 36,412 1,660 30,900
Present Value of Unfunded Obligation as at year end - - - -
Unrecognised Actuarial Gain/(Loss) - - - -
Unfunded Liability/(Asset) recognised in the Balance Sheet - - - -
(iv) Amount recognised in the Balance Sheet
Present value of obligations as at year end 126,818 68,286 109,641 55,509
Fair value of plan assets as at year end (122,968) (31,874) (107,981) (24,609)
Amount not recognised as an asset - - - -
Net (asset)/liability recognised as on 31st March, 2010 3,850 36,412 1,660 30,900
(v) Expenses recognised in the Profit and Loss Account
Current service cost 16,654 14,183 15,036 15,079
Interest on defined benefit obligation 7,919 3,719 7,711 3,169
Expected return on plan assets (10,081) (2,506) (8,152) (2,422)
Net actuarial loss/(gain) recognised in the current year (2,185) 6,926 6,715 8,686
Total expenses 12,307 22,322 21,310 24,512
(vi) Actual Return on Plan Assets
Expected return on plan assets 10,081 2,506 8,152 2,422
Actuarial gain/(loss) on Plan Assets 2,906 (198) (4,758) (386)
Actual Return on Plan Assets 12,987 2,308 3,394 2,036
(vii) Asset information
Administered by Birla Sunlife Insurance Co. Ltd. and LIC of India 100% 100% 100% 100%
(viii) Principal actuarial assumptions used
Discount rate (p.a.) 8.00% 8.00% 7.50% 7.50%
Expected rate of return on plan assets (p.a.) 9.00% 9.00% 9.00% 9.25%
(ix) Experience Analysis
Actuarial gain/(loss) on change in assumptions 6,297 (1,922) - -
Experience (Gain)/Loss on Liabilities (5,576) 8,650 - -
Actuarial gain/(loss) on Obligation 721 6,728 - -
(x) Expected employer’s contribution for the next year is Rs. 23,355 ('000) for Gratuity and Leave Encashment.
(b) Sales
Class of goods UoM 2009-2010 2008-2009
Qty Value Qty Value
Rs. in ('000s) Rs. in ('000s)
Injectibles Ltrs 360,800 674,558 255,206 566,494
Liquid Orals Ltrs 4,464,608 1,411,501 4,859,858 1,676,725
Lotions and Externals Ltrs 845,595 1,033,321 697,124 820,983
Ointments and Creams Kgs 872,132 2,016,108 620,370 1,435,520
Solids and Powders Kgs 316,939 166,081 197,963 107,263
Tablets and Capsules Nos 1,124,223,930 4,153,827 757,502,380 3,408,056
Cardiac diagnostic services 15,292 14,436
Others 826,180 632,247
TOTAL 10,296,868 8,661,724
Notes:
1. Sales are net of sales returns.
2. Sales quantities does not include free issues, samples and breakages.
d) Payable to Subsidiaries
Glenmark Pharmaceuticals FZE., U.A.E. 6,486 -
Glenmark Generics Ltd., India - 120,868
16. Extracts of Assets and Liabilities as on 31st March, 2010 and Income and Expenses for the year ended 31st March, 2010 related to
the interest of the Company [without elimination of the effect of transactions between the Company and Glenmark Pharmaceuticals
(Thailand) Co. Ltd., Thailand] have been extracted from the audited accounts.
Rs. in (‘000s)
Particulars 2009-2010 2008-2009
Assets
Net Fixed Assets including CWIP 5 -
Deferred Tax Asset 236 52
Cash Bank Balances 1,029 1,114
Loans and Advances 57 59
Liabilities
Current Liabilities 144 66
Income
Net Sales - -
Expenses
Selling and Operating expenses 1,269 325
Depreciation 1 -
Provision for Taxation including Deferred Tax (191) (49)
Signatures to the Schedules 1 to 21 which form an integral part of the Financial Statements.
Rs. in (‘000s)
(a) Registration Details
Registration No. 1 9 9 8 2 State Code 1 1
Date Month Year
Balance Sheet Date 3 1 0 3 2 0 1 0
(b) Capital raised during the year
Public Issue Rights Issue
N I L N I L
Bonus Issue Qualified Institutions Placement Issue
N I L 1 8 7 1 3
Preferential offer of shares under
Employee stock option scheme Conversion of FCC Bond
6 0 5 N I L
(c) Position of mobilisation and deployment of funds
Total Liabilities including Shareholders Funds Total Assets
2 7 7 3 6 1 9 6 2 7 7 3 6 1 9 6
SOURCES OF FUNDS
Paid-up Capital Reserves and Surplus
2 6 9 8 3 8 1 7 4 6 4 3 1 6
Secured Loans Unsecured Loans
4 8 6 4 0 3 7 1 1 1 1 5 0
Deferred Tax Liability
3 2 7 7 1 3
APPLICATION OF FUNDS
Net Fixed Assets Investments
2 3 7 2 9 0 6 9 9 2 9 1 9 1
Net Current Assets Miscellaneous Expenditure
1 3 2 6 0 5 9 6 N I L
Deferred Tax Assets Accumulated Losses
9 6 7 2 7 N I L
(d) Performance of the Company
Turnover (Total Income) Total Expenditure
1 0 3 8 8 7 6 5 9 1 7 8 6 2 7
Profit/(Loss) Before Tax Profit/(Loss) After Tax
1 2 1 0 1 3 8 1 2 8 4 6 3 2
Basic Earnings per Share in Rs. Diluted Earnings per Share in Rs.
4 . 9 3 4 . 9 2
Dividend Rate %
4 0
(e) Generic Names of Three Principal Products of Company
Item Code No. (ITC code) Product Description
3 0 0 4 2 0 . 3 9 Levofloxacin
3 0 0 4 9 0 . 6 9 Lornoxicam
3 0 0 4 9 0 . 7 9 Telmisartan
1. The financial 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10
year of the
Subsidiary
Companies
ended
2. Date from 10-Sep-96 15-Sep-04 7-May-01 Not Not 28-Jan-04 Not 28-Apr-04 1-Jun-04 22-Jul-04 Not Not Not 31-Mar-06 Not Applicable. 17-May-06 Not Not Not Not Not Not Not Not Not 6-Nov-08 Not 19-Nov-08 Not Not Not Not Not
which they Applicable. Applicable. Applicable. Applicable. Applicable. Applicable. (Wholly owned Applicable. Applicable. Applicable. Applicable. Applicable. Applicable. Applicable. Applicable. Applicable. Applicable. Applicable. Applicable. Applicable. Applicable Applicable.
became (Wholly (Wholly (Wholly (Wholly (Wholly (Wholly subsidiary of (Wholly (Wholly (Wholly (Wholly (Wholly (Wholly (Wholly (Wholly (Wholly (Wholly (Wholly (Wholly (Wholly (Wholly (Wholly
subsidiary owned owned owned owned owned owned Glenmark South owned owned owned owned owned owned owned owned owned owned owned owned owned owned owned
subsidiary subsidiary subsidiary subsidiary subsidiary subsidiary Africa (Pty) Ltd. subsidiary subsidiary subsidiary subsidiary subsidiary subsidiary subsidiary subsidiary subsidiary subsidiary subsidiary subsidiary subsidiary subsidiary subsidiary
of Glenmark of of Glenmark of Glenmark of Glenmark of Glenmark of of Glenmark of Glenmark of Glenmark of of of of of of of Glenmark of Glenmark of Glenmark of Glenmark of Glenmark
Holding S.A., Glenmark Generics Holding S.A., Holding S.A., Generics Glenmark Holding S.A) Holding Generics Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Uruguay, Uruguay, Holding Pharma- Holding
Switzerland) Generics Holding Switzerland) Switzerland) Holding S.A.) Holding S.A) Finance Generics Holding Uruguay Uruguay Holding Holding S.A.) S.A..) S.A.) ceuticals SRO) S.A.)
Limited) S.A.) S.A) S.A) Limited) S.A.) S.A.) S.A.) S.A.) S.A.)
3. a. Number of 1,850,020 143,210,000 455,701,648 Not Not 640,490 Not 267,533,341 RD 100,000 1,200,861 Not Applicable Not Not 1,976,002 shares Not Applicable.( 22,520,000 Not Not Not Not Not Not Not Not Not 4,975,154 Not 1 share Not Not Not Not Not
shares held Equity Equity Equity Applicable Applicable shares of Applicable Ordinary shares divided into Ordinary shares (3,000,000 Applicable Applicable. of AUD 1 each 500 Equity shares Shares Applicable. Applicable. Applicable. Applicable. Applicable. Applicable. Applicable Applicable. Applicable. shares Applicable of AED Applicable. Applicable. Applicable. Applicable. Applicable.
by Glenmark Shares of Shares Shares (177,084,654 (6,285,121 200 Pesos (42,665,819 of Naira 1 each. 100 shares of RM 1 each. shares of CHF (83,656 (1,686,487 of R 1 each held of CHF 1 (297,371 (1,551,136 (4,100,708 (215,600,000 (2,750,000 (5 shares (9000 2,800 5,570,000 of EGP 1 4,400 1,000,000 37,792,360 10,691 152,082,634 6,639 shares 3,700 shares
Pharma- Rs.10/- of Rs.10 of RUB 1 shares of BRL Ordinary each shares of of RD 1,000 1 each held Ordinary shares held by Glenmark each shares shares of share of shares of shares of of BGN shares shares of shares of each shares each shares of 1 shares of shares of 1 of EUR 1 of PLN 500
ceuticals each fully each fully each. 1 each held shares of US$ 1 each each. by Glenmark shares of R by Glenmark South Africa of CZK RON 1 each GBP 1 each CHF 1 each CHF 1 each 1000 each of Cop Sole 1 each USD 1 each of PLN Mexican Peso Bs 1 each Uruguayan each held by each held by
Ltd. in the paid up paid up. by Glenmark GBP 1 each held by Holding S.A.) 1.00 (Rand) Generics (Pty) Ltd.) 760 each held by held by held by held by held by 1000 each held by held by 500 each each held held by Peso each Glenmark Glenmark
subsidiary Holding S.A.) held by Glenmark each held by (Europe) Ltd,. held by Glenmark Glenmark Glenmark Glenmark Glenmark hedl by Glenmark Glenmark held by Glenmark Glenmark held by Pharma- Holding S.A.
companies Glenmark Generics Glenmark & 92,500,610 Glenmark Holding S.A) Holding Generics Generics Holding Glenmark Uruguay Holding Glenmark Uruguay, S.A Uruguay, Glenmark ceuticals
at the end of Generics Holding Holding S.A., shares of 1 Holding S.A) Finance Limited) S.A.) Uruguay S.A. S.A. Holding S.A. Holding SRO
financial year Limited) S.A) Switzerland) AR$ each held S.A.) S.A) S.A.) S.A. S.A.
of Subsidiary by Glenmark
Companies Generics
Holding S.A.)
3.b. Extent of 100% 97% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
interest of
holding
Company at
the end of
the financial
year of the
subsidiary
companies
4. The net
aggregate
amount
of the
subsidiary
companies’
Profit/ (Loss)
so far as it
concerns the
members of
the holding
company:
4.a. Not dealt
within the
holding
company’s
accounts:
4.a.1. For the Nil 1,489,076 664,392 173,744 (23,700) (9,871) 254,092 4,627 (133) (3,024) (674,621) (108) (56,242) (15,349) 13,583 493,452 (318,953) (98,045) 5,620 17,772 (63,675) (2,928) (131) 3,906 (9,196) (18,109) 20,350 6,181 (96,745) (84,763) (32,084) 3,686 (1,546)
financial year
ended 31st
March, 2010
(Rs ' 000)
4.a.2. For the 7,378 1,038,118 415,823 1,519,440 (14,344) (26,743) 493,282 (33,950) Nil (10,567) 1,557,098 (5,455) (157,333) (57,440) (19,530) 6,026,205 (250,509) (54,412) (8,221) (86,374) (148,157) (20,446) N.A. (20,300) (15,668) (2,250) (43,671) (3,977) (15,555) (19,631) (1499) (2,134) (1,948)
previous
financial
years of the
Subsidiary
Companies
since they
became
the holding
company’s
subsidiaries
(Rs. ‘000)
4.b. Dealt within
the holding
company’s
accounts:
4.b.1. For the Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
financial year
ended 31st
March, 2010
(Rs ' 000)
4.b.2. For the Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
previous
financial
years of the
subsidiary
companies
since they
became
99
100
Statement Pursuant to Section 212 of the Companies Act, 1956.
Relating to Company’s interest in Subsidiary Companies; (Contd.)
(Rs. ' 000)
No. Name of the Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark Glenmark
Company Exports Generics Impex Farmaceutica Generics Philippines Generics Pharmaceuticals Dominicana Pharmaceuticals Pharmaceu- South Generics S.A. Pharmaceuticals Pharmaceuticals Holding Pharma- Pharmaceu- Pharma- Generics Generics Pharma- Pharma- Pharma- Therapeu- Pharma- Pharma- Pharma- Pharmaceu- Pharma- Uruguay Pharma- Distributors
Limited Limited L.L.C. ltda. (Europe) Inc., Inc., USA (Nigeria) Ltd. SRL (Malaysia) ticals S.A., Africa (Pty) Argentina (Australia) South Africa S.A. ceuticals ticals S.R.L. ceuticals Holding Finance ceuticals ceuticals ceuticals tics Inc., ceuticals ceuticals ceuticals ticals Mexico, ceuticals SA ceuticals SK SP Z.O.O.
Ltd. SDN.BHD Switzerland Ltd. Pty Ltd. (Pty) Ltd. SRO Europe S.A. S.A. EOOD Colombia Peru USA Egypt SP. Z.O.O. F.Z.E. SA DE CV Venezuela, SRO
Ltd. Ltda S.A.C S.A.E. CA
5. Currency Rs. Rs. US$ BRL GBP PHP US$ NGN RD RM CHF ZAR PESO AUD ZAR CHF CZK RON GBP CHF CHF BGN US$ PEN US$ EGY PLN AED MXN US$ UYU EURO PLN
6. Exchanfge - - 45.14 25.14 67.87 1.00 45.14 0.30 1.25 13.70 42.32 6.11 11.64 41.41 6.11 42.32 2.38 14.92 67.87 42.32 42.32 30.98 45.14 16.03 45.14 8.24 15.65 12.26 3.63 45.14 2.35 60.59 15.65
Rate
7. Share Capital 18,500 1,496,030 722,279 4,364,104 518,089 116,703 1,925,935 86,609 122 15,286 106,761 219,441 1,096,620 65,047 25,905 797,113 143,016 252,887 329,555 9,793,802 120,827 32,523 3,662 79,747 257,552 42,940 39,419 12,925 159,298 2,009 331,273 457 27,689
9. Total Assets 185,357 19,260,112 2,501,448 7,005,704 862,189 117,910 10,037,467 105,486 - 2,085 4,996,426 169,327 1,065,024 978 158,176 20,991,673 2,214,775 391,803 283,533 13,708,990 13,030,275 8,745 4,528 67,987 256,989 23,014 130,718 17,674 71,293 56,160 329,154 55,139 215,646
10. Total 159,479 8,800,988 751,646 282,135 468,448 28,985 7,369,031 48,878 - 58 3,707,351 95 154,386 205 136,869 12,434,804 973,427 288,991 7,268 4,666,233 12,771,920 372 989 5,117 29,352 1,182 16,689 3,101 23,082 90,189 991 52,793 189,846
Liabilities
11. Investment - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
(except
in case of
investment
in
subsidiaries)
12. Turnover - 8,261,754 2,260,350 1,208,920 299,381 119,543 7,793,249 90,101 - - 24,669 - 346,876 - 269,831 - 1,059,502 315,395 116,343 - - - - - - 408 318,293 - 32,034 3,678 - 122,114 347,797
13. Profit - 1,708,169 836,019 186,254 (37,368) (9,766) 438,089 6,097 (133) (3,024) (670,978) (108) (82,451) (15,349) 21,844 525,330 (321,531) (97,864) 5,623 26,921 (59,978) (2,928) (129) 3,906 (8,989) (17,573) 27,827 6,181 (105,724) (84,763) (30,585) 4,696 (1,615)
before Tax
14. Provision - 219,093 171,627 12,510 (13,668) 105 183,998 1,470 - - 3,643 - (26,209) - 8,261 31,878 (2,578) 181 3 9,149 3,697 - 2 - 207 536 7,477 - (8,979) - 1,499 1,010 (69)
for Tax
15. Profit - 1,489,076 664,392 173,744 (23,700) (9,871) 254,092 4,627 (133) (3,024) (674,621) (108) (56,242) (15,349) 13,583 493,452 (318,953) (98,045) 5,620 17,772 (63,675) (2,928) (131) 3,906 (9,196) (18,109) 20,350 6,181 (96,745) (84,763) (32,084) 3,686 (1,546)
after Tax
16. Proposed - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Dividend