Operations in over 80 countries

Near 7000 employees globally

5 Research facilities

7 New molecules in clinics

13 Manufacturing facilities
in 4 countries

Leading the way

to a New World
A New Way for
A New World

Glenmark Research Facility

Mahape, Navi Mumbai, India
 C ontents

From the CEO's Desk 2

Key Financials 5

Highlights & Objectives 6

Innovation 8

Management Discussion & Analysis 14

Industry Outlook 14

Glenmark : The Way Ahead 16

Business Unit Performance 18

Global Human Resource Development 25

Corporate Social Responsibility 26

Risk Management 28
Corporate Information 29
Financial Statements 30
F rom the CEO’s Desk

Treading through tough

times, we have turned
around and emerged
much stronger.
With our fundamentals
robust and vision set,
we are bound to stretch
the horizons of excellence
in research and business
in the coming years

Mr. Glenn Saldanha

Managing Director & CEO
 FROM THE CEO'S DESK
Dear Friends,
In the last one year, we have seen a radical shift in the
global pharmaceutical industry, perennially altering the
landscape that we operate in.
On one hand, we have seen many large pharmaceutical
players shed their orthodox thinking and come up with out
of the box strategies to bolster their presence in the branded
generics markets. The strategies include significant
investments in India and other emerging markets because of
which we have seen some big ticket acquisitions by global
pharma majors as they try to get a slice of India's fast growing
pharmaceutical market. Simultaneously, there has been a
significant slowdown in innovative R&D investment by these
pharma majors. Nearly all of them have cut their innovative
R&D budgets sharply and also downsized their manpower.
At the same time, Indian companies that have been
operating in developed and emerging markets hit a
roadblock. While the US FDA slowed down its ANDA
approval process impacting new launches, emerging
markets lost much of their shine as they were still reeling
from the aftershocks of the severe depression that derailed
many of these economies.
We began the financial year on an unsteady note against
this backdrop of tumultuous change in the industry and an
ongoing global recession. The preceding year was one of the
toughest Glenmark had ever faced – almost all our
businesses were impacted severely in FY* 09. Our drug
discovery R&D lost out on potential revenues as global
pharma was wary of acquiring any molecules that were
under development. In addition, as sales slumped across
markets, we were hit badly as our fixed overheads continued
to be high due to significant investments we had made into
fixed assets just before the crisis emerged.
At the start of this year, the clouds of uncertainty still
loomed large over both the short-term and long-term
horizon. We were confronted with several challenges and it
seemed like we were veering towards a situation that would
take us at least two financial years to get back on the growth
track.
However, we beat the odds and managed a
transformation in less than a year and the numbers at the
end of the financial year speak for themselves. While sales for
the entire year grew by 18 %, the net profit for the company
increased by 71 % to Rs. 3,310.32 Mn.
Glenmark's transformation was not in the least bit
serendipitous. It was the result of a carefully crafted and
efficiently implemented strategy that helped us recover
quickly and also laid the foundation for sustained growth in
the near future.
The key aspect of our strategy was to improve our cash
flow position. We focused on cost optimization across
operating markets and receivables were given utmost
priority. On the ground, we targeted improving the working
capital cycle that deteriorated in the previous financial year
due to the recession and through our sustained efforts in FY
10, we managed to reduce net working capital. At the same
time, we deferred all capital expenditure and executed only
those projects in which market demand was imminent. Our
acquisition plans were also put on hold temporarily.
The key aspect of our strategy was to improve
our cash flow position
Simultaneously, we worked on improving our income by
increasing sales across markets. We took a multi-pronged
approach towards this – first, by concentrating on 'power
brands' across geographies and second, by consistently
introducing new products in every market we operate in.
The new product introductions were in line with our strategy
to be dominant in certain therapeutic categories across
operating markets.
The other key long-term aspect of this strategy was the
decision of continuing with healthy investments in R&D. We
believe innovation R&D has a bright future at Glenmark and
our conscious effort to maintain R&D as a priority in our
business plans is beginning to yield fruit once again. The
recent deal with Sanofi-Aventis, where we out-licensed our
first-in-class molecule for neuropathic pain - GRC 15300, is a
major achievement on this front, as Glenmark is arguably the
first company globally that has managed to progress a
TRPV3 molecule to clinical trials. It is for this reason that the
The deal with Sanofi-Aventis for GRC 15300 reaffirms
our commitment to cutting-edge work in the area
of drug discovery
fourth largest pharma company in the world, Sanofi-Aventis,
has decided to invest in our molecule. This reaffirms our
commitment to cutting-edge work in the area of drug
discovery.
On the specialty side, the India business continued to
remain our shining jewel registering strong growth at 19 %.
The Rest of World markets, particularly Russia and CIS,
rebounded extremely fast to post a stunning growth of 64 %.
We have also seen a significant increase in operating margins
from these businesses and their contribution has increased
sharply. Even though the Central Eastern Europe (CEE)
business registered good growth, we expect much more
from this region. While CEE has recovered quickly and
* Fiscal Year ending March 31st
ANNUAL REPORT 2009 - 2010 03
 managed to cut losses sharply – we still need to grow at a
much faster pace to turn cash-positive in this current
financial year. Business from the Latin American division,
which shrank in the last financial year, will remain a challenge
in this year as we need to put in place a sustainable growth
model in this region. However, as the long term outlook for
Latin America remains positive, and given its market size,
Glenmark is determined to succeed in this region.
On the generics front, the slowing down of ANDA
approvals by the US FDA impacted the growth of the US
generics business this year in a big way. While we have
continued filing ANDAs with the same vigor, we also remain
optimistic about our US generics strategy. We clearly have
built a pipeline which will generate consistent sales growth
in future. Most importantly, the kind of therapeutic
segments that we are venturing into will not only generate
good sales numbers, but will also provide higher operating
margins. Glenmark boasts of being the only Indian company
that has captured a share of two such niche therapies,
dermatology and hormone therapy. We have been
aggressively filling ANDAs in these two, amongst the other
key niche segment. The other strategy for our US generics
business is our Para IV strategy where we have presently four
opportunities where Glenmark is the sole 'first-to-file'
applicant.
The Europe generics business registered its first sale
during the financial year. This business will grow manifold in
subsequent years, with entry into new markets like Germany
and Netherlands planned this year. The API division grew by
37 % and is now a sizeable business. It has done a
phenomenal job of transitioning itself from focusing on
semi-regulated markets, to high value regulated markets.
The division is already making a mark for itself, with all the
top ten generic players doing business with us.
During the financial year, we concluded a Qualified
Institutional Placement (QIP) and successfully raised Rs.
4,135.56 Mn, which helped bring our debt down. Our
improved cash flows not only managed to reduce the overall
debt, but most importantly provided the cash to fund our
expansion programs. The resultant Debt: Equity ratio stands
at 0.8: 1 at the end of FY 10 and we will be able to bring this
down further.
As the cash flow position in the organization improved,
we decided to put on hold indefinitely our plan to list the
generics subsidiary Glenmark Generics Limited (GGL). The
objective of this listing was two-fold: To unlock value for the
parent shareholder i.e. Glenmark Pharmaceuticals Limited
(GPL) and reduce collective debt of the organization. The
announcement of the IPO did not provide any visibility to
04
value creation for the parent company's shareholders and
with the overall debt falling down sharply, the listing of the
subsidiary was not serving any objective. Thus we decided to
postpone the IPO indefinitely.
With all these efforts we have not only recovered from
the global recession but have also put in place structures
that will lead to sustainable growth in future. Having now
built a strong foundation in the last year, we intend to
accelerate the implementation of our growth plans.
We have not only recovered from the global
recession but have also put in place structures
which will lead to sustainable growth in future
In the next five years, we plan to move GPL up the value
chain from a branded generics player to a differentiated
innovator, while moving GGL down the value chain into pure
generics and API space. Our efforts shall be directed towards
the development of leadership in three key therapeutic
segments of dermatology, respiratory and oncology, across
the markets of GPL and GGL.
GPL's growth shall be fuelled by both expansion of the
branded generics portfolio, as well as enrichment of the
novel drug pipe line through in-licensing, mergers &
Our efforts shall be directed towards the development
of leadership in dermatology, respiratory and oncology,
across the markets of GPL and GGL
acquisitions of late stage new molecular entities (NMEs) and
focused development of our own NME portfolio. The
transition shall be marked by key novel product launches,
most imminent being Crofelemer- an in-licensed NCE, which
is slated for launch in FY 12.
GGL will continue to focus on developing its strengths in
niche therapeutic areas, while expanding its reach further
into new regulated markets.
We are all set to venture forth with the new-found
wisdom that only comes from overcoming adversity. We
continue to be innovative in our thinking and are confident
that our strategies will continue to create immense value for
each and every stakeholder of our organization. I take this
opportunity to thank each of you, our shareholders, for your
confidence in Glenmark and look forward to your continued
support.
Yours sincerely,
Glenn Saldanha
CEO & MD
 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

Total Revenue 7,575.89 12,515.34 20,092.01 21,160.33 25,006.47

(All values in Rs. Mn)

GPL Geography Split GGL / GPL Split GGL Geography Split

Glenmark Pharmaceuticals Ltd. Glenmark Generics Ltd.

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%

India Latin America GPL GGL US Formulations Oncology

SRM Europe Active Pharmaceutical EU Formulations
Ingredients API
(All values in USD Mn)

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

Average conversion rate for FY 10 of Rs. 47.74 / USD 1.00

for FY 09 of Rs. 46.47 / USD 1.00

ANNUAL REPORT 2009 - 2010 05

 FY 10
H ighlights & Objectives

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 %

Glenmark Pharmaceuticals Limited Glenmark Generics Limited

Research and Development
Signed an out-licensing agreement with Sanofi-Aventis
for its molecule for neuropathic pain, GRC 15300 in the
month of May, 2010. The company received an upfront
fee of USD 20 Mn for development and
commercialization rights of the ‘first-in-class’ TRPV3
antagonist, with a cumulative milestone payment
potential of USD 325 Mn over the course of development
Out-licensed a specialty topical pharmaceutical product
to Medicis Pharmaceutical Corporation for North
American markets
Completed the dose selection stage of Phase III trials for
Crofelemer, the in-licensed anti-diarrheal molecule from
Napo Pharmaceuticals USA. The potential ‘first-in-class’
anti-secretory molecule also progressed to final stage of
Phase III trials in the US
Initiated US Phase I trials on GBR 500, the first
monoclonal antibody (mAb) from Glenmark and
arguably from India, to enter the clinical trial phase
Formulations Business
Filed 250 product Stock Keeping Units (SKUs) across
various geographies, with 110 of them in top 10 focus
markets
Launched 10 ‘first-to-market’ products in the Indian
market. Amongst the most significant launches was
Aplet (Prasugrel)
Completed the construction of a new plant for inhaler
manufacturing at Baddi (India) to enhance focus on its
respiratory portfolio
Initiated revenue generation with new product launches
in Mexico, UAE, Egypt and Venezuela
Completed the acquisition of the Nalagarh
manufacturing facility in Baddi
Glenmark Generics Inc. (GGI) USA filed 13 Abbreviated
New Drug Applications (ANDAs) and received 16 ANDA
approvals by the United States Food and Drug
Administration (US FDA)
GGI received the US FDA approval for Glenmark's and
India's first hormone product for the US market from its
dedicated hormone facility in Goa, India
GGI entered into an exclusive licensing agreement with
Par Pharmaceuticals, USA to market Ezetimibe tablets,
and with Taro Pharmaceuticals, USA for a branded
product in May 2010
GGI settled its patent litigations in relation to
Fluocinonide cream and Ciclopirox Olamine Gel with
Medicis Pharmaceutical Corporation
GGI also settled its patent litigations in relation to
Atovaquone and Proguanil tablets with Glaxo
SmithKline LLC in April 2010 and for Ezetimibe tablets
with Merck & Co., Inc. in May 2010
Glenmark Generics Europe Limited (GGEL) submitted 5
new product dossiers, equivalent to 34 Marketing
Authorization Applications (MAAs) and received
approvals for 4 product dossiers, resulting in 31
Marketing Authorization Approvals (MAs). GGEL also
established its local presence in the UK with the launch of
6 products
Glenmark Generics Argentina (GGSA) commissioned a
new oncology injectables facility at Pilar, Argentina
GGL commissioned a new plant for oral solid dosage
(OSD) formulations at Indore SEZ, India
The formulations plant at Goa, India, successfully
completed audits by UK-MHRA, EMEA and USFDA
Initiated the project for a new Active Pharmaceutical
Ingredient (API) manufacturing facility at Dahej SEZ,
India

06
 HIGHLIGHTS & OBJECTIVES

FY 11

Objectives
Glenmark Pharmaceuticals Limited Glenmark Generics Limited

Research and Development

Advance Crofelemer along Phase III trials for HIV related
diarrhea
Initiate regulatory submission of Crofelemer in Rest of
the World (RoW) countries
Progress Tedalinab (GRC 10693) and Revamilast (GRC
4039) into Phase II trials
Advance GBR 500 into Phase II trials
Progress GRC 15300 and GBR 600 through Phase I trials
successfully
Bring one New Molecular Entity (NME) program into
clinical trials
Partner out at least 1 molecule from the current
innovative portfolio
File over 20 ANDAs in the US generics market with a focus
on niche categories and enter the segment of
ophthalmic products
Continue focus on niche therapeutic areas with the
launch of over 15 products in the US generic market
File atleast 10 Drug Master Files (DMFs)
File in-excess of 7 product dossiers across various EU
geographies
Launch atleast 4 products in UK
Foray into new markets in Europe, including the Nordic
region, Netherlands and Germany
Achieve ISO 14001: 2004 environmental management
certification for the formulations plant at Goa, India and
the API plant at Ankleshwar, India

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

ANNUAL REPORT 2009 - 2010 07

 I nnovation

Changing the paradigms of

innovation
Raising new questions,
new possibilities

Making real advances

in science

Discovering new opportunities,

better cures

Creating a
New Way for a New World

Glenmark stands at the forefront of discovery research in

India with a promising portfolio of 6 New Chemical Entities
(NCEs)/ New Biological Entities (NBEs) in the clinics and 1 in-
licensed NCE 'Crofelemer' in Phase III. This has been achieved
by investing steadily in people and infrastructure, over the
past 10 years, to develop a robust innovation model. These
efforts have helped Glenmark to consistently discover new
molecules, a number of them ‘first-in-class’ globally. The effort
is not limited to only NCEs / NBEs, but also pans out to
developing cutting edge New Drug Delivery Systems (NDDS)
and differentiated formulations. Glenmark continues to
invest substantially into its Research and Development (R&D)
efforts and is close to being a self sufficient innovator.

08
 INNOVATION

Drivers of Glenmark's R & D success

PEOPLE INFRASTRUCTURE

R & D EXCELLENCE

People
Glenmark attracts and nurtures the best talent in the
world in a swathe of areas, including critical ones such as
R & D and Clinical Research. It's research efforts are driven by
a globally experienced, and versatile group of leaders, who
guide the whole team towards the common goal of
excellence in discovery research .
To focus on differentiated formulation development as well
as development of New Drug Delivery Systems, Glenmark's
Formulation Development R&D facility at Sinnar, India, has
over 80 scientists committed to produce stable, clinically
safe and effective formulations of high quality standards.

Glenmark's unwavering focus on knowledge upgradation helps people from

diverse backgrounds to deepen domain expertise swiftly, enabling them to
bring well-informed, valuable, novel perspectives
to the research space
Glenmark's Small Molecule Research Center at Mahape, Glenmark’s clinical R&D for both small molecules and
India, is home to one of the most reputed medicinal biologics is coordinated out of the Oxford Facility (UK),
chemistry teams in India. It has over 450 qualified scientific working closely with the dedicated and experienced clinical
staff working on multiple targets in broad therapeutic areas team in Mumbai. The team consists of highly qualified
of inflammation, inflammatory pain and metabolic scientific staff, with global clinical development experience,
disorders. The Biologics Research Center at Switzerland spanning over 20 years in the industry. The global clinical
houses 50 scientists, with expertise in antibody discovery, team is currently managing seven projects in clinical
antibody engineering, process development and biologics development between   Phases I to III around the world.
product development.

ANNUAL REPORT 2009 - 2010 09

 Infrastructure
Small Molecule Research Mahape, Navi Mumbai, India

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

Clinical Research Oxford Science & Business Park, Oxford, UK

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

Biologics Research Canton of Neuchatel, Switzerland

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

Formulations Development R & D Facility Sinnar, India

Engaged in developing specialty/ branded formulations for global markets

Focusses on development of various NDDS projects and innovative formulations in areas of dermatology,
respiratory, oncology and metabolism amongst others
Houses a dedicated facility to develop HFA based MDI products, injectables and liposomal products

Small Molecule Research Facility,

Mahape, Navi Mumbai, India

10
 INNOVATION

Glenmark Research Pipeline

Pre-
Compound Primary Indications Target Phase 1 Phase 2 Phase 3 Approval
Clinical

Crofelemer Anti-diarrheal CFTR Inhibitor

In-licensed for RoW Markets

GRC 8200 Diabetes Mellitus (Type II) DPP IV Inhibitor

(Melogliptin)

GRC 4039 Asthma, COPD, PDE IV Inhibitor

(Revamilast) Rheumatoid Arthritis,
Infammatory disorders

GRC 10693 Neuropathic Pain, CB-2 Agonist

(Tedalinab) Osteoarthritis & other
Inflammatory pain

GBR 500 Multiple Sclerosis, VLA-2

Inflammatory disorders Antagonist

GRC 15300 Osteoarthritis pain, TRPV3

Neuropathic Pain, Antagonist Out-licensed to Sanofi-Aventis
Skin disorders

GBR 600 Anti-platelet, Adjunct to PCI/ Von Willebrand

Acute Coronary Syndrome Factor inhibitor

GRC 17536 Neuropathic Pain, TRPA1

Respiratory disorders inhibitor

ANNUAL REPORT 2009 - 2010 11

 GRC 8200 (Melogliptin)

Indication Status Market Opportunity

Diabetes Mellitus Ph IIb completed; expected to enter Ph III Market : USD 13 Bn
(Type II) Expected to have differentiating features worldwide
Mechanism of Action Had been out-licensed to Merck KGaA for a total deal size of USD 250 125 Mn patients worldwide
Dipeptidyl Peptidase Mn, but due to portfolio restructuring at Merck KGaA, Glenmark Potential Peak Sales
(DPP) IV Inhibitor received all rights back for further development and commercialization >USD 1 Bn worldwide
Currently under discussions for licensing with potential partners
Strengths of Program
Validated Mechanism of Action – clearly defined development pathway
Potential for offering class leading improvements in glycemic control,
lipid lowering and β-cell function improvement

GRC 4039 (Revamilast)

Indication Status Market Opportunity

Asthma Completed Phase I trials: Good safety, tolerability and exposure Asthma :
Chronic obstructive demonstrated Market : USD 15-18 Bn
pulmonary disease Phase IIb is being initiated for asthma 300 Mn patients globally
(COPD) Strengths of Program COPD :
Rheumatoid Arthritis Excellent safety profile in animal models across inflammatory conditions Market : USD 10-12 Bn
(RA) and other Good safety profile to achieve higher exposure levels in humans 210 Mn patients globally
Inflammatory Good bioavailability across species and a long half-life indicating the Rheumatoid Arthritis :
disorders potential for a once daily dosage regimen Market : USD 1.6 Bn; >20
Mechanism of Action Mn patients
Phosphodiesterase Potential Peak Sales
(PDE IV) Inhibitor > USD 2 Bn worldwide

GRC 10693 (Tedalinab)

Indication Status Market Opportunity

Neuropathic Pain Phase I trials completed Neuropathic Pain
(PHN and DPN) and Phase II to be initiated for cancer pain Market : USD 5 Bn;
other pain conditions. Strengths of Program >40mn patients
Mechanism of Action Potential first-in-class opportunity Osteoarthritis
Cannabinoid 2 (CB2) Broad application of CB2 can be explored in indications such as Market : USD 4 Bn;
Receptor Agonist neuropathic pain, osteoarthritis, cancer pain and atopic dermatitis > 200 Mn patients
Highly efficacious in several in-vivo pain models Potential Peak Sales
Well tolerated in Phase I at doses several fold higher than projected for >USD 2 Bn worldwide
efficacy

GBR 500

Indication Status Market Opportunity

MS, inflammatory Phase I completed in USA MS Market : USD 3 Bn
diseases including Phase II is being initiated for MS and IBD IBD biologics Market : USD
Inflammatory Bowel Strengths of Program 5 Bn;
Disease (IBD) Novel mechanism with broad anti-inflammatory potential > 4 Mn patients
Mechanism of Action First-in-class opportunity: No other monoclonal antibody (mAb) against Potential Peak Sales
Antagonist of the VLA- same target > USD 1 Bn
2 (Alpha2 Beta1) Potential to expand indications to other inflamatory disorders
integrin

12
 INOVATION

GRC 15300

Indication Status Market Opportunity

Neuropathic Pain, Phase I study ongoing in the UK Neuropathic Pain
Osteoarthritis and Strengths of Program Market : USD 5 Bn;
other Inflammatory Potential ‘first-in-class’ opportunity >40Mn patients
Pain Highly efficacious in several in-vivo pain models Osteoarthritis
Mechanism of Action Potential for equal or greater efficacy and better safety than other Market : USD 4 Bn;
Transient Receptor products, in a wide range of chronic pain disorders, without >200 Mn patients
Potential Vanilloid central/other significant side effects Potential Peak Sales
channel 3 (TRPV3) >USD 2 Bn worldwide
Antagonist

GBR 600

Indication Status Market Opportunity

Anti-platelet, Phase I has been initiated Market : USD 2 Bn
Microangiopathies Strengths of Program GBR-600 has the potential
(orphan), Adjunct to Novel anti-thrombotic monoclonal antibody to significantly expand the
PCI/ Acute Coronary High efficacy demonstrated by high potency as shown in in-vivo current market by offering
Syndrome primate model – large therapeutic window improved efficacy with a
Mechanism of Action Very low/ negligible bleeding liability that is a common short-coming of favourable adverse event
Von Willebrand Factor molecules in this class profile
Inhibition Potential Peak Sales
> USD 1 Bn

GRC 17536

Indication Status Market Opportunity

Neuropathic Pain, Candidate drug identified and preclinical studies indicate efficacy and Neuropathic Pain:
Respiratory disorders safety in animal models Market : USD 5 Bn
Mechanism of Action Phase I enabling toxicology studies initiated 40 Mn patients
TRPA1 Antagonist To enter Phase I in FY 11 Asthma:
Currently under discussions for licensing with potential partners Market : USD 15-18 Bn
Strengths of Program 300 Mn patients globally
First-in-class molecule with high potency and selectivity Potential Peak Sales
Potential OD dosing >USD 2 Bn worldwide
Addresses highly unmet medical need – treatment of neuropathic pain,
osteoarthritis and respiratory conditions

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.

ANNUAL REPORT 2009 - 2010 13

 M anagement Discussion & Analysis
Industry Outlook

The Global Pharmaceutical Industry continues to face

pressures on margins and hindrances to growth. Big pharma
is bracing for the impending erosion of USD 78 Bn in global
branded sales from drugs facing patent expiry over the
2010–14 period. This is in addition to the USD 32 Bn from
continued erosion of already expired brands. Increasing
pressure to lower healthcare costs, price and re-imbursement
restrictions and increasingly stringent regulatory bodies only
add to the challenges faced by the global pharmaceutical
majors in today's world.

14
 MANAGEMENT DISCUSSION & ANALYSIS
In an effort to identify and exploit new drivers for
growth, the industry is quickly learning to transition
away from the traditional models of business.
Companies are now looking at various options to not
only survive but also thrive in this tough environment -
Focusing on high-value therapies - Apart from moving
away from primary care, companies are also shifting focus
from small molecule driven sales towards targeting
specialist secondary care indications. This is mostly through
the use of high-value biologic therapies in the developed
markets. The biologics market is set to grow by USD 41 Bn
between 2009 and 2014. There is also increasing focus on
therapies such as oncology, immunology and inflammation
in order to counteract declining sales arising from expiring
patents on established molecules.
Moving down the value chain to partake a share of the
'generics' pie. As governments across the world grapple with
increasing healthcare costs, the move to lower value but
high quality generics is swiftly happening. Generic players
are set to benefit in the short term, a benefit that big pharma
is equally keen to share.
Expanding reach in the emerging markets through
marketing of branded and off-patent medicines in the fast
growing emerging markets. Hitherto focusing on traditional
innovative products, pharma majors are moving quickly to
acquire a portfolio of complementary generics and branded-
generics in keeping with the pharmaceutical market
requirements in key emerging markets. This access to the
emerging markets is often driven by acquisition of domestic
generics and manufacturing companies.
Maintaining margins by cutting down costs – In the
effort to improve cost, margins and hence profitability,
companies are increasingly off-shoring activities such as
manufacturing, data management, pharmacovigilance and
contract research to markets such as India and China.
Following a reassessment of growth strategy,
collaboration through mergers and acquisitions has
emerged as a key trend in the current environment. The past
few years have seen a steady spate of take-overs and
mergers across the industry thereby providing quick access
to newer revenue streams.
Indian generic players are being viewed as attractive
acquisition/ merger targets, mainly due to several
established strengths that big pharma is keen to build on.
Indian companies have long been viewed as successful
generic players and have wide spread operations across key
emerging markets. Apart from traditional strengths in
manufacturing and abundant qualified workforce, India is
also being viewed as an attractive location for carrying out
low cost research and for conduct of clinical trials. Soaring
costs of R&D and administration are persuading drug
manufacturers to move more and more of their discovery
research and clinical trials activities to the subcontinent or to
establish administrative centers there, capitalizing on India's
high levels of scientific expertise as well as low wages.
Recent big ticket acquisitions such as Daichii Sankyo'-
Ranbaxy and Abbott – Piramal serve to highlight the
growing global interest in Indian pharma majors.
In keeping with the global environment and as a
direct result of it, certain key trends are prevalent in the
India pharma market today -
Collaboration and consolidation – Not only are global
pharma majors keen to merge and acquire Indian
companies, global Indian companies are equally on the
lookout for suitable acquisition targets of their own. As this
trend catches, the highly fragmented India pharma market is
bound to coalesce, with top players capturing the major
share of the market.
Widening span of drug price control – India has
steadily increased cost-containment measures over the last
few years. A larger number of drugs under price control may
spell lowering margins for companies in India and slow
down the growth numbers that are currently expected from
the domestic market.
Increasing restrictions on pharma marketing –
Regulatory bodies in India have ramped up their activity
against inappropriate promotion and inadequate
representation of drug side effects. Promotional activities of
pharma companies are increasingly under the scanner and
ethical guidelines are being drawn out
Intellectual Property landscape - The new patent
regime, post 2005, has led to the return of the
pharmaceutical multinationals, many of which had left India
during the 1970s. Domestic companies are also gearing up
to the changing IP scenario by means of collaborations with
innovative companies, in-licensing specialty products or
investing in internal research.
Overall, as global pharma majors look towards strong
'pharmerging' markets such as India, the time is also rife for a
large number of Indian players to make the best of the
changing in dynamics. Companies now have unpreced-
ented opportunities to expand in a number of fields. They are
poised to reap significant benefits as producers of high-
quality generics while patents on key molecules expire. They
are being highly valued as partners in collaboration due to
their strengths in manufacturing, low cost structures and
presence in key generic and branded generic markets. At the
same time, few companies are also investing significant
resources into world-class innovative research in an effort to
move up the value chain, into a domain that was hitherto
occupied entirely by the western majors.
ANNUAL REPORT 2009 - 2010 15
 G lenmark : The way ahead

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

Develop Leadership in Dermatology, Respiratory and Oncology

across markets

Glenmark Pharmaceuticals Limited

In the next 5 years, GPL plans to move up the value chain
from a branded generics player to a differentiated innovator,
with the launch of the first NCE from Glenmark's own drug
discovery pipeline in 2015. This transition shall be marked by
becoming a more differentiated player along the years with
3 basic tactical approaches:
In-licensing
Mergers and Acquisitions (M&As) for Products and
Technologies
M&As and Joint Ventures (JVs) for front ends in new
geographies
In-licensing and M&As of new products and
technologies in later stages of development shall be of
utmost importance in order to differentiate the company, as
well as, to gather vital learning that can be leveraged for in-
house NCE launches. The most imminent of such in-licensed
product launches will be Crofelemer- an in-licensed NCE,
which is slated for launch in FY 12.
Glenmark shall also continue to invest and grow its
branded generics business, both in terms of new products,
as well as new geographies in the coming future.
GPL has always had a therapeutic segment based
approach, rather than a plain opportunistic outlook, when it
came to its portfolio expansion strategy.

GPL : The way ahead

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

Therapeutic segment In-Licensing Focused development

based portfolio expansion M&As of late stage of NCEs and NBEs in the
Focus on Derma, Products & Technologies areas of Respiratory,
Respiratory & Oncology M&As & JVs for new Pain & Inflammation
front ends

16
 GLENMARK : THE WAY AHEAD

The company strives to establish three Representative Market Evolution Tracker across key GPL markets
focus therapy segments, viz. Dermatology,

Market Introduction Stage

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

direction regarding the therapies in which Central & Eastern Europe

CNS
further filings need to be initiated. The
Cardio-Metabolic
objective of the organization is to drive its
markets through the growth phase into the
Mexico
maturity phase, by populating the core Dermatology
therapy areas with existing and new product
pipeline.
Time (presence in the market)

Glenmark Generics Limited

With increasing cost pressures on healthcare systems, hormones, oncology and controlled substances. They also
stringent payer-led price controls and high-value plan to enter new therapeutic niches like ophthalmic
proprietary drugs going off patent in the coming years, products in the coming years. GGL shall extend its reach into
increasing number of developed countries shall be shifting new regulated markets, especially in Western Europe,
to generics. To succeed in such high-volume, low-margin starting with the Netherlands and Germany in FY 11.
environment, it is imperative for companies to develop a Oncology will also be a driving segment for GGL in the
low-cost generic model that can help them attain the best coming years. The oncological injectables facility at Pilar,
value structure. The strategy for GGL stems from this very Argentina has been commissioned in April 2010 and
outlook. henceforth, GGSA shall act as a global supply hub for
GGL's future growth shall be driven by two major strategies: oncology products, for both GGL and GPL. The filings of
Expanding into new regulated markets, with a niche oncology ANDAs and EU dossiers will be underway starting
therapy focus FY 11.
Moving down the value chain into pure generics and The API business will continue in its efforts to increase
API space the vertical integration levels, taking it from current 20 % to
On the formulations front, GGI (US) and GGEL (EU) shall 40 % by 2015, hence capturing most of the value spectrum
continue to focus on high value products in the niche areas essential for the low-cost model. The company shall also
of dermatology, modified release, oral contraceptives and strive to enter new regulated markets in the near future.

GGL : The way ahead

GGL

Finished Dosage Oncology API Business

Formulations (US, EU)
Drivers & Roadmap

High-value product selection
Focus on niche therapeutic
areas of Dermatology,
Modified Release, Hormones
Foray into new regulated
markets
Develop GGSA as the global Increase vertical integration
manufacturing hub for level from current 20% to
oncological products 40% to get best value
File oncology products in both structure
GGL and GPL geographies Enter more regulated
markets

ANNUAL REPORT 2009 - 2010 17

 B usiness Unit Performance

Glenmark Pharmaceuticals Limited

A Snapshot

Specialty Business

Semi-regulated Central & Eastern

India Formulations Latin America
Markets Europe
Growth : 37%

7,606 19% 1,361 -14% 3,864 64% 1,363 37%

6,372 1,580 2,355 996

2042 187 435 124

FY 10 FY 09 = Field strength FY 10 All Values in Rs. Mn

India Formulations

As per ORG-MARG March’10, Glenmark Pharmaceuti-
cals registered a growth of 21.7% vs. Indian Pharmaceutical
Market growth of 17.7%. The March'09 MAT Market Share %
increased from last year to 1.46%. The overall revenue for FY
10 grew at 19% vis-à-vis the previous year. The growth was
driven by significant gains in market share and rankings of
top brands.
TELMA (Telmisartan) gained 59 ranks to be at 135
(March'09 MAT ranked 194)
TELMA-H (Telmisartan, Hydrochlorthiazide) has gained
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
194)
CANDID (Clotrimazole) has entered the annals of Top
300 brands with March' 09 MAT ranking of 290.
The company strengthened its footing in therapeutic
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.
The India formulations unit has increasingly
strengthened its business fundamentals and control on field
activities and a significant step in this direction was the
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 .
Glenmark–Focused Reporting for complete efficiency. This
has proven to be an effective business intelligence tool
which is currently live with 11 divisions and manages all field
employees. The newer modules bring key advantages such
as business intelligence, faster information flow, enhanced
productivity and database warehousing.
Driving growth through
top brands,
Strengthening business
fundamentals

18
 BUSINESS UNIT PERFORMANCE
FY 10 : Key Brand Launches, India Formulations
Division Brand
Majesta Ascovent (Acebrophylline)
Ascoril LS (Levosalbutamol + Ambroxol +
Guaifenesin)
Xaria (Montelukast + Levocetirizine)
LRN-P (Lornoxicam + Paracetamol)
Integrace Flexilor P (Lornoxicam + Paracetamol)
Flexilor SR (Lornoxicam SR)
Flexispaz (Lornoxicam +Thiocolchicoside)
Bonspark (Calcitonin Nasal Spray)
Gracewell Dewmis (Colloidal oatmeal 5% bar )
Glenmark Halovate F (Halobetasol + Fusidic acid)
Gracewell Triglow (Modified Kligman's formula)
Specialty
Strataderm (Silicone gel)
Onkos Erleva (Erlotinib)
Zoltan Razel F (Rosuvastatin + low dose
fenofibrate)
Vocarb MF (Voglibose + Metformin)
Aplet (Prasugrel)
Critica Vosicaz injection (Voriconazole)
Latin America
Glenmark's revenue from its Latin American operations
registered a de-growth of 14% for FY 10, as against the
previous year.
The growth numbers were impacted mainly on account
of the operational and systems overhaul in the Brazilian
subsidiary which currently contributes the major chunk to
the revenues. The company realigned the field force into
strategically focused units, redeployed the over 110 strong
sales force and overhauled the complete system of sales and
operations. The strategic intent was to increase sales force
effectiveness and the key aspects targeted were coverage
and call effectiveness amongst others.
Into its second year, the Mexico subsidiary recorded its
first sale with the successful launches of three new
dermatology products. The operations also expanded to
include important drugstore chains into the distribution
channel, hence widening the reach for its dermatology
portfolio.
In the third quarter, the Venezuela unit received
authorization from the government to import and distribute
Brand Proposition
Comprehensive mucoregulator with anti-inflammatory properties
Gives Majesta an entry in the mucus hypersecretory conditions'
market ruled by Ambroxol
Aims to strengthen the Ascoril franchise at the paediatric level
Strengthening presence with the chest physician fraternity
Consolidation of presence in the pain segment
Consolidation of presence in the pain segment
Combines an effective analgesic with an efficient muscle relaxant
Strengthening the orthopedic equity with launch
of Salmon calcitonin in osteoporosis therapy
Marked entry into medicated cleansing agents market
for various skin conditions
Combines a potent steroid with a well accepted anti-bacterial
First time launch in India marking entry into melasma
therapy segment
In-licensed product from Stratpharma, Switzerland. Marks entry
in scar management area
Strengthens the basket for lung cancer management
Unique formulation; fortifies the dyslipidemia portfolio
Broadening of Cardio-Diabetic portfolio
First time launch in India overcoming the limitations of current
oral anti-platelet therapy
Ideal therapy for invasive fungal infections in intensive care
settings
products in the country after a significant wait. Subsequently
the company generated its first sales in Venezuela in the
fourth quarter and is confident of building a strong presence
in the country. Glenmark Venezuela set up and trained its
sales force and the team is now ready to rapidly ramp up
operations.
Overall, the region built a growth momentum from the
fourth quarter as the re-organization efforts in the largest
market, Brazil, began to show results. The Latin American and
Caribbean operations posted a 30% growth in sales over the
same quarter in FY 09.
With steady growth registering in Brazil, the region
should register strong sales growth and margin
improvements in the coming year on the back of new
product launches in Brazil, Mexico, Venezuela, Peru and
Ecuador. For the entire year, Glenmark filed 65 product (SKU)
dossiers and received 51 product (SKU) approvals across the
Latin American region, reflecting its commitment towards
rapid expansion of business in this geography.
ANNUAL REPORT 2009 - 2010 19
 Africa & Middle East
The Africa and Middle East region achieved its highest
ever sales with secondary sales growth exceeding 40% for FY
10. The 9 regional power brands proved to be the engine of
this growth, contributing to more than 75 % of the sales of
the region. A number of countries within the region showed
a significant rise in sales led by South Africa, Kenya, Sudan,
Nigeria, Tanzania and Yemen. The year also saw the opening
of two new high potential markets – Egypt and UAE which
have a total market size exceeding USD 3 Bn. Both the market
saw new products being launched by Glenmark in its core
therapy areas to build its presence and prescription base.
Africa and Middle East region achieved
its highest ever sales with a growth
exceeding 40% for FY10
Glenmark consolidated its position as one of the
dominant players in the industry in Kenya, Sudan, Zambia,
Malawi and Mauritius. The focus on its core therapies and
power brand strategy saw it emerge as a strong leader in
dermatology, respiratory and oncology. In terms of
therapies, dermatology and respiratory contributed more
than 50 % of the total sales of the region. In Kenya, Glenmark
launched a range of new products in the metabolic segment
and a special task force was setup to build its brands in this
fast growing segment. This heralds the entry of Glenmark in
hitherto untapped but fast growing chronic market.
Glenmark is already a leading pharmaceutical company in
the acute market in Kenya and will now be able to leverage its
equity in metabolic and respiratory segments.
In Sudan Glenmark further consolidated its position as
the No.1 company in dermatology by launching
cosmeceutical preparations, which complement its existing
dermatology products. Glenmark is also a leading player in
anti- diabetic market in Sudan and had a few ‘first-to-market’
combination product launches in the therapy
Glenmark South Africa increased its focus on
dermatology with the launch of 4 cosmeceutical
preparations under the umbrella brand 'Synacare' that
support its already strong dermatology franchise. A number
of in-licensing agreements were signed for launch of
differentiated and high potential products which will further
consolidate Glenmark's standing in dermatology in South
Africa. The dermatology market in South Africa is worth more
than USD 100 Mn and is growing at an impressive rate.
Nigeria saw a significant expansion of Glenmark
operations with a new distribution structure being created
along with the launch of a specialty team branded “Acme” to
specifically focus on dermatology and gynecology. This
novel distribution structure will ensure greater amount of
brand building efforts by the field force, thereby increasing
field force effectiveness, especially in specialized therapy
areas.
20
Russia & CIS
After the tough economic conditions prevalent in 2008
the CIS economy substantially recovered in 2009 thus
fuelling growth in the overall pharmaceutical industry.
Glenmark outperformed the overall industry with strong
growth numbers as the Russian operations registered an
overall sales increase of 65% (RuR) over the previous financial
year. The secondary sales for the Russian subsidiary also
showed a good growth in FY 10. According to Pharmexpert
data, on a MAT basis, the company grew at a rate of 50% (the
overall market grew at 22%) in FY 10 and the market share
consistently improved, thereby improving market rankings
to 77 in March’10 from 90 in March’09.
Outperformed the overall industry
with strong growth numbers as the
Russian operations registered
an overall sales increase of 65%
The company continued with its focus on brand building
in the region. The year was marked by several successful
launches in the dermatology segment such as Powercort
(Clobetasol), Momate S (Mometasone + Salicylic acid) and
Elovera (Aloevera + Vitamin E). The company has
consolidated its position in the dermatology segment and is
one of the fastest growing companies in the segment. The
period also saw Glenmark strengthen its position from 26
(RuR, March’09, Pharmexpert) to 21 (RuR , March‘10
Pharmexpert) in dermatology. Innovative medico-
marketing and image-building activities were carried out
with key dermatologists to strengthen relationships in this
focus therapeutic area for Glenmark. The company targets to
be among the top few dermatology players within the next
two years.
In the respiratory segment, Ascoril tablets - a line
extension of the power brand Ascoril cough syrup was
launched and it received an encouraging response from
prescribers, further consolidating its position in the
expectorant market. All other power brands of the company
continued to show a healthy growth.
On the regulatory front, 15 new product dossiers were
filed with the Russian regulatory authorities. These future
launches are expected to sustain the high growth
momentum currently prevailing at Glenmark Russia.
Amongst the CIS markets, the company continued to
focus on the key markets of Ukraine, Kazakhstan and
Uzbekistan which demonstrated a steady positive trend in
secondary sales. Leading national distributors were
appointed in all three countries thus ensuring wider and
faster availability of all Glenmark products. Glenmark
products are being increasingly well accepted in the CIS
markets and the company is continuing to focus on the
therapeutic areas of respiratory and dermatology through
doctor promotions.
 BUSINESS UNIT PERFORMANCE
Asia
The Asian markets continued to show steady growth in
FY 10. Glenmark Asia witnessed a 33 % increase in secondary
sales over FY 09. In Sri Lanka, Glenmark entered the league of
the top 20 pharmaceutical companies in the country (IMS Q4
2009). Ascoril and Candid-B rank amongst the top 100
products in the country. The change in political climate also
led to spread of coverage in North and East Sri Lanka leading
to an expansion in the overall market.
Witnessed a 33% increase in secondary
sales with Sri Lanka operations entering
the league of the top 20 pharmaceutical
companies in the country
South East Asian markets such as Malaysia and
Philippines continued on a steady growth path with focus on
brand building and strengthening of prescription trends.
Glenmark Malaysia launched a new anti-infective Kefnir
(cefdinir) which has been well accepted by Malaysian
doctors. The suspension formulation of Kefnir was a
‘first-to-market' launch in the country, thereby leading to
high focus on concept-building activities amongst the
prescribers. The Philippines subsidiary expanded its sales
force during the year, thereby strengthening its presence.
Glenmark Philippines moved up in market ranking to 45 in
March’10 from 68 in March'09.
Vietnam operations continued to perform and gained
entry into many large hospitals in Ho Chi Minh City, Mekong
Delta and Hanoi region, in keeping with its strategy to tap
into the institutional sector. The company also launched its
dermatology product portfolio with a basket of 6 brands
including key products viz. Klenzit C (Adapalene+
Clindamycin), Supirocin B (Mupirocin + Beclomethasone),
Tacroz (Tacrolimus) Ointment and Tacroz forte ointment. The
overall focus in Asia markets remains on brand building in
the core therapeutic segments of dermatology and
respiratory along with creating a strong presence in the
hospital & institutional sector.
Central & Eastern Europe
The Central & Eastern European markets comprising
Czech Republic, Slovakia, Romania and Poland registered an
overall 37% growth in revenue over the previous financial
year. While all the countries registered very strong growth
numbers on the back of highly successful brand launches,
the performance in Poland fell short of expectations. The
Polish subsidiary experienced a delay in new product
launches due to intellectual property hurdles and also faced
few reversals in the sales channels resulting in a below
expected growth figure of 6% in the market. The Polish
operations have now undergone a complete overhaul and
strong growth numbers are expected to emerge in the
coming financial year.
Effective April 1, 2009, the Czech subsidiary changed its
name from Medicamenta to Glenmark Pharmaceuticals.
Glenmark’s business in Czech Republic and Slovakia
performed well in FY 10 with strong growth on focus brands.
Consequently, market rankings for Glenmark in Czech
Republic moved to the 42nd position (Q4/FY10) from 45th in
previous year (Q4/FY09).
The Romanian business continued on its path of strong
performance, nearly doubling its secondary sales as
compared to the previous financial year. Glenmark Romania
moved up in market rankings to 49 on March’10 MAT basis
and 45 on a monthly basis in March'10. The year saw several
successful product launches in the market including anti-
hypertensives such as Nebivolol and Perindopril which were
the first generics to be launched in the market. Both the
launches have met with a high degree of success and have
market share in units of over 10% (amongst generics).
Amongst the innovator products Glenmark Romania
reported a continuing positive performance with both Aflen
(Triflusal) and Eneas (Enalapril + Nitrendipine) in just a year
Registered 37% growth
on the back of highly successful
brand launches
and a half of sales. Aflen has garnered 10% market share in
units and is ranked 3rd in the anti-platelet aggregant
prescription market. Eneas holds a 17% unit market share
and is ranked 3rd in its segment after 1 year of sales. The
company has also had a successful launch of Trogan
(clopidogrel) and is confident of making it a top ranking
generic in the respective market.
As the company forges ahead with plans to expand
business in Central and Eastern Europe, the year saw inroads
being built into Baltic markets – Latvia, Estonia and
Lithuania. Distributors were appointed and the company
expects to initiate business soon. Roadmaps for entry into
Hungary and revamping commercial operations in Bulgaria
have also been determined.
ANNUAL REPORT 2009 - 2010 21
 Glenmark Generics Limited

Glenmark Generics Limited

US Formulations EU Formulations Oncology API

7230 -1% 299 104% 343 -14% 2708 37%

7338 147 400 1972

FY 10 FY 09 All Values in Rs. Mn

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.
7,230.45 Mn for the FY 10, against revenue
of Rs. 7,337.73 Mn in the previous year, a
de-growth of 1%.
The company was granted a total of 16
ANDA approvals by the US FDA in FY 10 of
which 6 applications were tentative
approvals. This summary demonstrates
Glenmark's commitment to strengthening
its pipeline and increasing the breadth of
their marketing portfolio by registering a
growth of 44% in comparison to the
number of applications approved in FY 09.
During the fourth quarter, the
company was granted final approval on
four applications, beating the industry
average of ANDA approvals by 60% for this period and
positioning it within the top 3 ranking of
Despite being generic companies by number of
a late entrant approvals. The ANDA's received were
Calcipotriene ointment, Moexipril HCl
into the US market,
tablets, Moexipril HCl + HCTZ tablets and
Glenmark
Ropinirole tablets for which Glenmark has
Generics Inc. (USA) accomplished successful launch of the
figures among three oral solid formulations in the U.S.
market. Glenmark also received tentative
the Top 25 Generics
approval from the US FDA for Trandolapril
companies in the US + Verapamil extended-release tablets.
and is the 3rd largest During the 12 months ending March 31,
2010, 13 ANDA's were filed with the agency
Indian generics
by Glenmark, as well as a number of
company. applications submitted through

Niche Area Focus in ANDA Filings*

Focus Therapy Pending Authorized to Distribute Total Filings Market Size (Mn USD)**
Dermatology 4 18 22 671.75
Hormones 8 4 12 781.70
Modified Release 4 3 7 251.92
P IV Filings 11 0 11 6,835.44
Controlled Substances 2 3 5 138.51
Immediate Release 18 33 51 8,022.15
Total 47 61 108 16,701.46
* Filings data as of 11th August, 2010
** IMS sales data for12 months ending June 2010

22
 BUSINESS UNIT PERFORMANCE
Glenmark's Para-IV ANDA filings with sole exclusivity
Product Brand Name Plaintiff Sales*
Ezetimibe Zetia® Schering Plough USD 1.4 Bn
Trandolapril + Tarka® Abbott / USD 58 Mn
Verapamil Sanofi - Aventis
Fluticasone Cutivate® Nycomed USD 45 Mn
Lotion 0.005%
Atovaquone + Malarone® Glaxosmithkline USD 58 Mn
Proguanil Hcl
*IMS Sales for FY ending March 2010
partnerships for which Glenmark is entitled to exclusive U.S.
marketing rights upon approval.
Glenmark's current marketing portfolio consists of 61
generic products authorized for distribution in the U. S.
market. The company currently has 47 applications at
various stages of the approval process with the US FDA. Also,
the company has filed 11 Para IV applications to date for
which it is the sole ‘first-to-file’ for four products. Glenmark
will realize new business potential resulting from the
settlement of patent actions regarding fluocinonide, the
generic version of Medicis' Vanos® cream, and Ciclopirox
Olamine, the generic version of Medicis' Loprox® gel. Under
the terms of the Settlement Agreement, Glenmark will be
able to market and distribute its generic version of Vanos®
cream under license from Medicis no later than December
2013, or earlier in certain circumstances. In addition,
Glenmark will have a license to launch a generic version of
Loprox® gel 0.77%, as supplied by Medicis.
EU Formulations
Glenmark Generics Europe Ltd. (GGEL) based out of
Hatfield, United Kingdom, ramped up its efforts to widen its
reach and up its revenues from generic products across
Europe. The company continues to work on the business
model that aims at three revenue streams viz. dossier
licensing income, third party commercial supplies linked to
licensing, and sales through its own front ends.
The year saw Glenmark establish its local presence in the
UK and launch 6 products through established front ends
over the course of the year. The products have been well
timed with Mometasone being the 1st generic launch,
Topiramate being a day 1 launch and Nebivolol 2.5 mg also
having a first mover advantage in the market. GGEL now has
full- fledged infrastructure to market and distribute products
to the wholesaling and retail channels all across the UK. The
business is positioned to grow on the back of a product
portfolio which contains a mix of vertically integrated and
difficult to develop products.
Litigation Status Approval Status Expected Launch
Case Settled Tentative Approval 2016
Received
Trials set for Final approval received Launched
Jan, 2011 for three of the 4 dosage
strengths
Case to be Awaited 2011
scheduled
Case Settled Awaited 2011
Expected Launch in calendar year
The licensing arm of the business made significant
progress through multiple out-licensing deals with Pan-
European and local companies in Europe. As part of its plan
to expand coverage across the EU, Glenmark considers
licensing deals as a valuable means to grow its business and
the year saw these efforts being rewarded through initiation
of supplies for several products in 7 EU markets.
During the year, GGEL had 4 product dossiers approved
(Olanzapine Tablets, Olanzapine oro-dispersible Tablets,
Ropinirole Tablets and Levocetirizine Tablets) and the
company filed 5 new product dossiers (Atovaquone/
Proguanil Tablets, Telmisartan Tablets, Rizatriptan Tablets,
Rizatriptan oro-dispersible Tablets and Zolmitriptan Tablets).
The year saw Decentralized Procedures (DCPs) concluded for
three products in addition to Centralized Procedures (CPs)
concluded for two products.
Though on a small base, GGEL sales for the year recorded
an increase of 104% over the previous year. As the company
executes its plan to spread its coverage in the generic
markets of Western Europe, it established presence in
Sweden in FY 10 and plans to launch the direct sales model in
Germany and Netherlands in FY 11.
Oncology
Based out of Argentina, this business serves as the hub
for manufacturing and distribution of oncology products
across Glenmark markets. The business is spread over 20
countries and deals in lyophilized and liquid injectable
cytotoxics.
Keeping in line with expanding presence outside Latin
America, several products were filed across geographies
including regions such as Middle East, Africa and Central
America. As part of the company's long term strategy to
launch oncology injectables in the regulated markets, the
construction of a state-of-the-art oncology injectables
manufacturing facility, spread over 30,000 sq ft, was
completed in Pilar (Buenos Aires, Argentina) and duly
inspected by local regulatory authorities.
ANNUAL REPORT 2009 - 2010 23
 In FY 10, overall sales of the unit shrunk by 14%. This was
attributed to a bulk of sales coming from institutional
tenders in the previous year. However sales in most markets,
including Argentina, grew compared to the previous year.
The oncology unit is poised to register significant growth
and better profitability in future as more of its products are
manufactured in-house at the new facility.
API
Glenmark's API business spans across 80 countries
including regulated markets like the US and Europe with
front ends in key markets. The company aspires to be a
preferred partner of leading global generic companies
offering advanced process chemistry skills and innovative
Intellectual Property solutions. With various product and
process patents filed, Glenmark's Intellectual Property (IP)
plays an integral role in developing a rich portfolio of APIs.
API Manufacturing Facility, Ankleshwar, India
24
The GGL research facility employs a scientific staff of over
50, is spread across 70,000 square feet and is equipped with
X-ray diffractors, in-house particle size detection
capabilities, and HPLCs with a variety of detection systems.
Leveraging this world class research capability, GGL API
division has been able to develop some truly unique and
challenging APIs.
GGL API division launched 3 new products in regulated
markets in FY 10 including Perindopril, Lercanidipine and
Topiramate. API business was re-initiated in China with new
launches and several products in registration. During FY 10
Glenmark also registered its first product sale in Russia. For
FY 10, revenue was Rs. 2,707.52 Mn (USD 56.71Mn)against Rs.
1,972.28 Mn (USD 42.44 Mn) for the previous year, recording
an increase of 37%. Also, a steady shift in the mix of the API
business towards regulated markets has resulted in higher
EBITDA margins from the API operations.
 G lobal Human Resource Development

The world economy went through a difficult phase

during 2008 and the most of 2009. Despite the trying times,
Glenmark was proactive in using a development based
approach to its design for human architecture. This paid
dividends when an upward swing in the global economy in
mid 2009 led to a sudden upsurge in the war for talent.
The development based approach that was set into
motion in the last two years was consolidated and
institutionalized in FY 10. Development of employees, teams
and enabling systems was the main intent of Glenmark’s
human resources strategy. The development interventions
can be broadly categorized into three blocks:

Individual oriented or Micro Team / Organization oriented Process oriented or People-

Development or Macro Development Systems Development

Gaps in individual skill inventory are
identified for each role. Based on these
gaps, design and delivery of learning
and development is carried out. Some
key interventions in this area were
A collection of people does not People-Systems are processes that help
constitute a team till such time as they channelize both individual and group
share a common goal. The achievement capability towards achievement of
of this common or shared goal requires organizational goals.
skills that many times transcend the
collective skill inventory of these
individuals.

Development and assessment
centers were carried out in the sales
groups in India and a few select
geographies and the process was
institutionalized. In FY 10, this tool
was successfully extended to our
manufacturing sites and select
geographies outside India.
A leadership capability matrix was
developed and implemented in
select parts of the organization with
very encouraging results.
The learning and development
needs identification process and
creation of individual training
calendars became an integral part
of organizational life. The significant
improvement was to make it an on-
line system from this year.

5 different education-at-work Strengthening of the learning Our internal customer satisfaction

programs were started in
collaboration with leading
institutions in India. These included
b u s i n e s s m a n a g e m e nt, s e l f -
development and technical
education programs.
culture through learning-
architecture design based on team
themes. Second line development
through technical and managerial
inputs and business projects is a
good example of this.
survey was also brought on-line in
FY 10 resulting in a faster process
that could reach out to a much
larger number of employees and
could focus early on specific areas of
need.

Specific external programs were
identified for individuals occupying
critical positions and for high
performers.
EDP/MDP programs for field
managers were enhanced and
appropriate versions developed for
non-field managers and line
executives.
ISO 14001:2004, 5S and Kaizen
based initiatives were begun at
Ankleshwar and Goa plants. These
were welcomed and enthusiasti-
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.

ANNUAL REPORT 2009 - 2010 25

 C orporate Social Responsibility

Glenmark CSR Activities for FY 10

Glenmark’s credo of enriching lives goes beyond
business. And this is amply evident in the organization’s
Corporate Social Responsibility (CSR) initiatives. The
company has begun to take small steps to make a difference
in the lives of people and is now making a conscious effort to
participate in causes that directly impact lives. Glenmark’s
initiatives during the financial year ranged from partnering
with various NGOs working in specialized community
projects to programmes managed by its employees. A major
partnering initiative during the year was with BMVSS
(Bhagwan Mahavir Vikalang Sahayata Samiti) better known
as ‘Jaipur Foot’, which provides artificial limbs(prosthetics) to
individuals who have lost them, thereby conferring them
with the gift of mobility. We began our association with
Jaipur Foot in Oct ’09 and through our contribution in this
financial year we managed to give this gift to 825 individuals
who lost atleast one of their limbs in some calamity. In the
current financial year, the company has made a commitment
of providing artificial limbs to over 3000 individuals at no
cost. This would also include their stay, food expenses and
travel when they visit BMVSS for treatment.
In the area of health, Glenmark continues to organise
free health checkup camps across India and also in overseas
destinations where it has established its presence and is Man with Jaipur Foot prostheses

committed to increasing the number of such camps several

folds in the next few years. Another major activity was
donating a princely sum to the Ankleshwar Industrial
Development Hospital in Gujarat for its new ICU which has
been constructed to service the medical needs of patients
who cannot afford treatment.
In overseas locations, while all Glenmark’ subsidiaries
continued to organise free health checkup camps as well as
conduct several CSR activities at a small scale, one major
initiative taken up by the organisation at a global level was
providing aid to victims of the devastating earthquake
which hit Haiti on the 12th January. The local team posted at
Glenmark team at Sneha Sadan Orphanage, Mumbai
Santo Domingo offered quick humanitarian aid by
dispatching medicines and food for the victims. Apart from
this, employees across locations donated additional funds in
an attempt to help the affected people rebuild their lives.

Blood Donation Camp

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 %.

ANNUAL REPORT 2009 - 2010 27

 Outlook
Glenmark's short-term and long-term outlook is
encouraging for several reasons. On the discovery front, the
pipeline is progressing well with 7 molecules in clinics, of
which two are ready for Phase III trials. The company will also
continue with its approach of out-licensing its molecules. On
the generics front, with high value patented drugs going off
patent in the coming years, there is huge potential for the
generics business. Glenmark is actively increasing its base in
major generics markets of US and Western Europe. At the
same time, GPL will continue to build differentiated
pipelines in RoW markets, notably the 'Pharmerging'
markets. Focus will be on building size and scale organically
and the company will continue to build capabilities and
nurture a talent pool with diverse skills sets to deliver
continuous results
Internal Control Systems
The company's internal control procedures are tailored
to match the organization's pace of growth and increasing
complexity of operations. These ensure compliance with
various policies, practices, regulations and statutes. The
internal control systems are regularly checked by both
statutory and internal auditors.
R isk Management
The ever changing business environment necessitates
continuous monitoring, evaluation and management of
significant risks faced by the organization. The company has
purchased insurance coverage, where it is available on
economically acceptable terms, in order to minimize the
related financial impacts. Some key risk factors, that can
impact a company like Glenmark, are listed below. Also
outlined are the key mechanisms followed to manage these
risks.
Strategy Risk Management : The strategy de-risking is
mainly by growing multiple business domains in high
opportunity areas. The innovative effort in discovery
research is also accompanied by traditional branded
generics sales from India and RoW markets, as well as, pure
generics sales in regulated markets. The company now has a
significant API business interest in regulated and semi-
regulated markets. The company also is able to de-risk its
strategic moves by being fully integrated, thus being able to
support all market initiatives with a strong research and
manufacturing back-end.
Business Portfolio Risk Management : The company
has a diversified portfolio covering over ten therapeutic
28
segments. The company's domestic revenues have been
accompanied by its growing presence in international
markets, both regulated and the semi-regulated, where
Glenmark has invested in setting up competent local
management teams. Depending on the type and stage of
business in its various markets, Glenmark has offerings
across the pharmaceutical value chain.
Research Risk Management : Glenmark is vigilantly
balancing the risk involved in its drug discovery program.
Targets are selected after exhaustive screening and research
across various parameters. The company also works on
parallel targets to maximize success prospects. Strategic tie-
ups for NCEs and NBEs minimize the inherent risk of failure in
a program. The company also has an organizational
structure and process organization that monitors internal
research and development products.
Competition Risk Management : Glenmark is a strong
player in the domestic Indian market, as well as, other key
markets such as Brazil and Russia. As a research-led, fully
integrated global pharmaceutical company based out of
India, the company has an edge over competition in several
ways. With a rich human resource pool of technically
qualified graduates, high skills in synthetic chemistry,
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
rich innovative pipeline affords a research benefit over most
other domestic Indian players.
Economic, Political and Currency Risk Management :
Currency risks are identified, analyzed and managed
systematically. Glenmark has selectively circumvented its
foreign exchange (forex) positions in order to limit the
impact due to volatile forex movements. The company also
has sound mechanisms to assess the economic and political
stability of a market at the time of new- market entry and
regular monitoring to respond to any situations that may
impact business
Litigation Risk : The risk of litigation may arise in
situations pertaining to quality, intellectual property or may
be of a business/ contractual nature. The company has put in
place processes to avoid any such eventuality and has strong
legal systems in place.
Environment Risk Management : The manufacture of
APIs and pharmaceutical formulations is subject to risks
associated with the production, filling, storage of raw
materials, finished products and disposal of wastes.
Glenmark is committed to managing its processes and waste
in a sound and responsible manner and adhering to norms
stipulated by the regulatory authorities.
 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

Directors Plot No. A80, MIDC Area, Kurkumbh, Daund,

Mr. A.S. Mohanty Pune – 413802, Maharashtra
Ms. B.E. Saldanha
Ms. Cheryl Pinto Manufacturing Facilities under construction
Formulations
Mr. D. R. Mehta
Growth Centre, Samlik-Marchak,
Mr. Hocine Sidi Said* Dist: East Sikkim, Sikkim
Mr. J. F. Ribeiro
Mr. M. Gopal Krishnan** API
Mr. N.B. Desai Z-103 I, Dahej SEZ, Dahej District,
Bharuch, Gujarat
Mr. Sridhar Gorthi
th
* With effect from 29 October 2009 Plot No. B-25, Five Star MIDC, Shendra,
** Upto 29th January 2010
Dist: Aurangabad, Maharashtra
Company Secretary
Mr. Marshall Mendonza R&D Centres
Plot No. A 607, TTC Industrial Area, MIDC Mahape,
Registered Office Vashi, Navi Mumbai – 400705, Maharashtra
B/2, Mahalaxmi Chambers, 22, Bhulabhai Desai
Road, Mumbai – 400026, Maharashtra Plot No. C 152, MIDC Sinnar Industrial Area,
Malegaon, Dist. Nasik – 422113, Maharashtra
Corporate Office
Plot No. M4, Taloja industrial area MIDC Taloja,
Glenmark House, HDO – Corporate Building, Wing A,
Taluka Panvel.410208, Dist - Raigad Maharashtra
BD Sawant Marg, Chakala, Off Western Express Highway,
Andheri (East), Mumbai – 400099, India
Tel. : +91 22 40189999 Clinical Research Centre
Site : http://www.glenmarkpharma.com Plot No. D 508, TTC Industrial Estate, MIDC
Email : webmaster@glenmarkpharma.com Turbhe, Navi Mumbai – 400705, Maharashtra

C2 7600, The Quorum, Oxford Business Park,

Manufacturing Facilities
North Oxford, OX$ 2JZ, UK
Formulations
E 37, MIDC Industrial Area, D Road, Satpur,
Nasik – 422007 Maharashtra Biotech Research Centre
Chemin de la Combeta 5,
Plot No. 7, Colvale Industrial Estate, Bardez – 403115, 2300 La Chaux-de-fonds, Switzerland
Goa
Auditors
D 42, Plot no. 50,Kundaim Industrial Estate, Price Waterhouse,
Kundaim – 403115, Goa Chartered Accountants, Mumbai

Village – Kishanpura, Baddi Nalagarh Road, Tehsil : Nalagarh, Cost Auditors

Dist. Solan, Baddi – 174101, Himachal Pradesh Sevekari Khare and Associates, Mumbai

Business Unit II, Village Bhattanwala, PO Rajpura, Solicitor

Nalagarh Dist. - Solan, Himachal Pradesh Kanga and Co. Mumbai
Trilegal, Mumbai
Plot No 2, Phase -II, Pharma Zone, Special Economic Zone Area,
Pithampur, Indore 454775, Madhya Pradesh Registrar and Transfer Agents
Karvy Comutershare Pvt. Ltd., Plot No. 17 to 24,
Rua Assahi, 33-1 Andar CEP 09633-0110, Rudge Near Image Hospital, Vittalrao Nagar, Madhapur,
Ramos Sao Bernardo Do Campo, Sao Paulo, Brazil Hyderabad – 500081
Tel.: 040 – 23420815; 23420818 – 828
Rua Frei Liberato De Gries, 548, Jardim Arpoadar Fax: 040 – 23420814
CEP: 05572-210, Sao Paulo, Brazil
Bankers
Glenmark Pharmaceuticals s.r.o., Fibichova 143, Bank of India
56617, Vysoke Myto, Czech Republic

Calle 9 Ing Meyer Oks N 593, Parque Industrial Pilar,

B1629MX Buenos Aires, Argentina

ANNUAL REPORT 2009 - 2010 29

 F inancial Statements

Consolidated Auditor's Report 31

Consolidated : Financial Statements 32
Profile of Directors 52
Director's Report 53
Report on Corporate Governance 60
Standalone : Auditor's Report 71
Standalone : Financial Statements 74

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.

For Price Waterhouse

Firm Registration Number: 301112E
Chartered Accountants

Partha Ghosh
Partner
Membership Number: F-55913

Place: Mumbai
Date: 28th May, 2010

ANNUAL REPORT 2009-2010 31

 Consolidated Balance Sheet

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

II. APPLICATION OF FUNDS

1. FIXED ASSETS 6
a) Gross Block 21,755,428 18,385,786
b) Less: Depreciation 3,882,342 2,723,341
c) Net Block 17,873,086 15,662,445
d) Capital Work-in-progress 6,007,692 5,454,080
23,880,778 21,116,525
2. INVESTMENTS 7 181,229 181,229
3. DEFERRED TAX ASSET 8 564,860 485,489
4. CURRENT ASSETS, LOANS AND ADVANCES
a) Inventories 9 7,084,591 6,302,253
b) Sundry Debtors 10 10,782,779 9,553,428
c) Cash and Bank Balances 11 1,070,200 714,823
d) Loans and Advances 12 5,273,096 4,220,877
24,210,666 20,791,381
LESS: CURRENT LIABILITIES AND PROVISIONS
a) Current Liabilities 13 4,986,466 4,398,904
b) Provisions 14 199,744 164,391
5,186,210 4,563,295
NET CURRENT ASSETS 19,024,456 16,228,086
TOTAL 43,651,323 38,011,329
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 21
Schedules referred to above and notes attached thereto form an integral part of the
Consolidated Balance Sheet.

This is the Consolidated Balance Sheet referred to in our report of even date.

For Price Waterhouse For and on behalf of the Board of Directors

Firm Registration Number: 301112E
Chartered Accountants

Partha Ghosh Glenn Saldanha Cheryl Pinto A. S. Mohanty

Partner Managing Director & CEO Director Director
Membership Number: F-55913

Place: Mumbai Marshall Mendonza

Date: 28th May, 2010 Vice President - Legal & Company Secretary

32 GLENMARK PHARMACEUTICALS LIMITED

Consolidated Profit and Loss Account

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.

For Price Waterhouse For and on behalf of the Board of Directors

Firm Registration Number: 301112E
Chartered Accountants

Partha Ghosh Glenn Saldanha Cheryl Pinto A. S. Mohanty

Partner Managing Director & CEO Director Director
Membership Number: F-55913

Place: Mumbai Marshall Mendonza

Date: 28th May, 2010 Vice President - Legal & Company Secretary

ANNUAL REPORT 2009-2010 33

 Consolidated Cash lo State ent

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)

34 GLENMARK PHARMACEUTICALS LIMITED

Consolidated Cash lo State ent

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

Net Increase/(Decrease) in Cash and Cash Equivalents 355,377 (850,246)

Cash and Cash Equivalents as at 31st March, 2009 714,823 1,565,069

Cash and Cash Equivalents as at 31st March, 2010 1,070,200 714,823

Cash and Cash Equivalents Comprise:

Cash 3,839 6,123
Deposits with Scheduled Banks 31,214 51,126
Deposits with Non-Scheduled Banks 2,829 126
Balance with Scheduled Banks 145,815 92,669
Balance with Non-Scheduled Banks 886,503 564,779
1,070,200 714,823
Notes:
1. The Cash Flow Statement has been prepared under the "Indirect Method" as set out in Accounting Standard - 3 on Cash Flow
Statements issued by the Institute of Chartered Accountants of India.
2. Cash and Cash Equivalents includes Rs. 3,122 which are not available for use by the Company. (Refer Schedule 13 to the Consolidated
Financial Statements)
3. Figures in bracket indicate Cash outgo.

This is the Consolidated Cash Flow Statement referred to in our report of even date.

For Price Waterhouse For and on behalf of the Board of Directors

Firm Registration Number: 301112E
Chartered Accountants

Partha Ghosh Glenn Saldanha Cheryl Pinto A. S. Mohanty

Partner Managing Director & CEO Director Director
Membership Number: F-55913

Place: Mumbai Marshall Mendonza

Date: 28th May, 2010 Vice President - Legal & Company Secretary

ANNUAL REPORT 2009-2010 35

 Schedules annexed to and forming part of the Consolidated Balance Sheet

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

Issued, Subscribed and Paid-up

269,837,553 (2009 – 250,519,758) Equity Shares of Re. 1 each 269,838 250,520
TOTAL 269,838 250,520
Notes:
1. During the year ended 31st March, 2010 the Company, pursuant to Employee Stock Option Scheme 2003, has granted 236,500
(2009 - 2,305,500) options at market price as defined in SEBI (ESOS) Guidelines and cancelled 601,100 (2009 - 1,697,500) options.
2. During the year 604,860 (2009 - 500,300) options were converted into Equity Shares under the Employee Stock Option Scheme,
2003. As at 31st March, 2010 2,633,500 options were outstanding under Employee Stock Option Scheme 2003. On exercise of the
options so granted under Employee Stock Option Scheme 2003, the paid up Equity Share Capital of the Company will increase by a
like number of shares.
3. During the year, Nil (2009 - 7,500) Zero Coupon Foreign Currency Convertible Bonds (FCCB) of USD 1,000 each aggregating USD Nil
(2009 - USD 7.5 million) were converted into Nil (2009 - 1,293,706) equity shares of Re. 1 each. As at 31st March, 2010, FCC Bonds
amounting to USD 30 million were outstanding.
4. On 18th September, 2009 the Company allotted 18,712,935 Equity Shares of Re. 1 each at a premium of Rs. 220/- per share to Qualified
Institutional Buyers pursuant to chapter VIII of the Securities Exchange Board of India (Issue of Capital and Disclosure Requirement)
Regulation 2009.
5. Of the above 158,371,140 (2009 - 158,371,140) Equity Shares of Re. 1 each are allotted as fully paid-up Bonus Shares by Capitalisation
of Reserves.

36 GLENMARK PHARMACEUTICALS LIMITED

Schedules annexed to and forming part of the Consolidated Balance Sheet

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

Foreign Currency Monetary Item Translation Difference Account

Balance at the beginning of the year (178,259) -
Addition/(Reduction) during the year 645,275 (289,670)
Amortisation of Foreign Currency Monetary Item Translation Difference (202,362) 111,411
Closing Balance 264,654 (178,259)

Capital Redemption Reserve 200,000 200,000

Capital Reserve 1,000 1,000

Exchange Fluctuation Reserves

Balance at the beginning of the year (185,940) 68,469
Addition/(Reduction) during the year 16,015 (254,409)
Closing Balance (169,925) (185,940)

Profit and Loss Account Balance 14,205,673 11,215,453

TOTAL 23,282,495 15,731,044
3. SECURED LOANS
From Banks Note
Term Loan 1 2,266,286 873,080
Working Capital Facilities 2 147,853 2,860,900
Other Loans 3 - 92,568
TOTAL 2,414,139 3,826,548
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.
3. Other Loans are secured by way of Hypothecation of certain Premises, Equipment and Vehicles.

ANNUAL REPORT 2009-2010 37

 Schedules annexed to and forming part of the Consolidated Balance Sheet

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

5. DEFERRED TAX LIABILITY [Refer Note 2(xi) of Schedule 21]

Depreciation 1,158,540 880,151
Foreign Currency Long Term Loans and Others 17,809 174,597
Others 98,660 -
TOTAL 1,275,009 1,054,748

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.

38 GLENMARK PHARMACEUTICALS LIMITED

Schedules annexed to and forming part of the Consolidated Balance Sheet

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

8. DEFERRED TAX ASSET [Refer Note 2(xi) of Schedule 21]

Provision for Bad Debts and Doubtful Advances 79,968 69,784
Unabsorbed Losses and Depreciation 421,839 307,669
Others 63,053 108,036
TOTAL 564,860 485,489

9. INVENTORIES [Refer Note 2(vii) of Schedule 21]

(As certified by the management)
Raw Materials 1,588,410 1,187,623
Packing Materials 344,867 259,356
Work-in-Process 1,143,752 951,568
Stores and Spares 49,811 45,235
Finished Goods 3,957,751 3,858,471
TOTAL 7,084,591 6,302,253

10. SUNDRY DEBTORS

Outstanding for more than six months
Secured, considered good 98,460 -
Unsecured, considered good 3,541,547 1,524,610
Unsecured, considered doubtful 234,927 191,959
3,874,934 1,716,569
Less: Provision for doubtful debts 234,927 191,959
3,640,007 1,524,610
Other debts -
Secured, considered good 41,275 2,543
Unsecured, considered good 7,101,497 8,026,275
7,142,772 8,028,818
TOTAL 10,782,779 9,553,428

ANNUAL REPORT 2009-2010 39

 Schedules annexed to and forming part of the Consolidated Balance Sheet

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

13. CURRENT LIABILITIES

Acceptances 821,134 -
Sundry Creditors
- Total outstanding dues to Micro enterprises and small enterprises - 26,524
- Total outstanding dues to creditors other than Micro enterprises and small enterprises 2,971,576 3,408,255
Investor Education and Protection Fund shall be credited by
- Unclaimed Dividend 3,122 3,717
[There are no amounts due and outstanding to be credited to Investor Education and
Protection Fund]
Advances from Customers - 46,648
Other Liabilities 732,644 491,478
Interest accrued but not due 457,990 422,282
TOTAL 4,986,466 4,398,904

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

40 GLENMARK PHARMACEUTICALS LIMITED

Schedules annexed to and forming part of the Consolidated Profit and Loss Account

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

16. OTHER INCOME

Lease Rent 2,184 11,431
Dividend received on non-trade Investments 75 38
Exchange gain - 1,352,331
Export Incentive 237,605 297,093
Provision for Doubtful Advances Written back 700 -
Miscellaneous Income 249,071 79,223
TOTAL 489,635 1,740,116

17. COST OF SALES

Salary, wages, bonus and allowances 495,374 485,023
Contribution to Provident and other Funds 10,320 8,838
Labour charges 316,135 325,489
Consumption of raw & packing materials 5,441,962 4,917,533
Purchase of Traded goods 2,692,326 3,774,902
Excise Duty 201,880 295,483
Sales Tax 680,848 462,829
Power, fuel and water charges 293,220 231,447
Consumption of stores and spares 174,600 153,144
Repairs and maintenance - plant and machinery 64,040 61,395
Repairs and maintenance - building 21,193 18,600
Rent, rates and taxes 13,633 8,027
Other manufacturing expenses 79,323 119,990
(Increase)/Decrease in inventory (291,464) (2,111,703)
TOTAL 10,193,390 8,750,997

ANNUAL REPORT 2009-2010 41

 Schedules annexed to and forming part of the Consolidated Profit and Loss Account

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.

19. INTEREST (Net)

On term loans from bank 969,981 810,305
On other loans from bank 685,054 646,903
1,655,035 1,457,208
Less: Interest Income
On deposits with banks 14,822 52,442
14,822 52,442
TOTAL 1,640,213 1,404,766

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

42 GLENMARK PHARMACEUTICALS LIMITED

Schedules annexed to and forming part of the Consolidated Financial Statements

SCHEDULE 21 - NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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:

ANNUAL REPORT 2009-2010 43

 Schedules annexed to and forming part of the Consolidated Financial Statements

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.

44 GLENMARK PHARMACEUTICALS LIMITED

Schedules annexed to and forming part of the Consolidated Financial Statements

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.

ANNUAL REPORT 2009-2010 45

 Schedules annexed to and forming part of the Consolidated Financial Statements

x) Research and Development

Capital expenditure on Research and Development (R & D) is capitalised as fixed assets. Development cost relating to the new
and improved product and/or process development is recognised as an intangible asset to the extent that it is expected that
such asset will generate future economic benefits. Other research and development costs are expensed as incurred.
xi) Taxation
Current Tax
Current tax is determined as the amount of tax payable in respect of taxable income for the year.
Deferred Tax
Deferred tax is recognised, subject to the consideration of prudence, on timing differences being the difference between
taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent
period. Deferred tax assets are not recognised on unabsorbed depreciation and carry forward of losses unless there is virtual
certainty that sufficient future taxable income will be available against which such deferred assets can be realised.
Deferred tax assets/liabilities recognised as above is after excluding the amounts, which are getting reversed during the tax
holiday period.
xii) Leases
Finance Leases
Assets acquired under finance lease are recognised as assets with corresponding liabilities in the Balance Sheet at the inception
of the lease at amounts equal to lower of the fair value of the leased asset or at the present value of the minimum lease
payments. These leased assets are depreciated in line with the Group’s policy on depreciation of fixed assets. The interest is
allocated to periods during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the
liability for each period.
Operating Leases
Lease rent in respect of assets taken on operating lease are charged to the Profit and Loss Account as per the terms of lease
agreements.
xiii) Employee Stock Option Schemes (ESOS)
The Company accounts for compensation expense under the Employee Stock Option Schemes using the intrinsic value
method as permitted by the Guidance Note on “Accounting for Employee Share-based Payments” issued by the Institute of
Chartered Accountants of India. The difference between the market price and the exercise price as at the date of the grant is
treated as compensation expense and charged over the vesting period.
xiv) Provisions and Contingent Liabilities
The Group recognises a provision when there is a present obligation as a result of a past event that probably requires an
outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability
is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of
resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no
provision or disclosure is made.

3. CONTINGENT LIABILITIES NOT PROVIDED FOR

Rs. in (‘000s)
2010 2009
(a) Bank guarantees 74,147 71,532
Disputed Income Tax/Excise Duty/Sales Tax 33,249 33,769
Claims against the Company not acknowledged as debts (Refer Note i) 386 380
Open letters of credit (Refer Note ii) 141,615 92,726
Sundry debtors factored with recourse option (Refer Note iii) 3,911,451 2,800,000
Guarantees for Rent 7,691 7,689
Indemnity Bond 345,366 331,876
Corporate Guarantee (USD 27 million) 1,218,780 1,376,460
Note:
i) In respect of labour/industrial disputes.
ii) The total amount related to LC outstanding as on 31st March, 2010.
iii) The amount related to Credit facilities given by Bank against debtors.
(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. 430,447 (2009 - Rs. 271,734).

46 GLENMARK PHARMACEUTICALS LIMITED

Schedules annexed to and forming part of the Consolidated Financial Statements

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

6. FOREIGN CURRENCY CONVERTIBLE BOND ISSUED

A) The Company had issued 30,000 Zero Coupon Foreign Currency Convertible Bonds of USD 1,000 each (Rs. 1,331,700 at issue)
(i) Convertible at the option of the bondholder at any time on or after 11th November, 2007 but 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 on or after 10th January, 2010 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 atleast 130% of the applicable Early Redemption Amount divided by the Conversion Ratio.
(iii) Redeemable on maturity date 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, 30,000 FCC bonds (2009 - 30,000) of USD 1,000 each aggregating to USD 30 million are outstanding.
B) The Company had issued 20,000 Zero Coupon Foreign Currency Convertible Bonds of USD 1,000 each (Rs. 873,200 at issue)
(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. 215.60 (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 atleast 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, 1,000 FCC Bonds of USD 1,000 each aggregating to USD 1 Million were redeemed on 16th February, 2010 on
maturity. As of 31st March, 2010, NIL FCC Bonds (2009 - 1,000) of USD 1,000 each are outstanding.
C) The Company had issued 50,000 Zero Coupon Foreign Currency Convertible Bonds of USD 1,000 each (Rs. 2,183,000 at issue)
(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 atleast 130% of the applicable Early Redemption Amount divided by the Conversion Ratio.

ANNUAL REPORT 2009-2010 47

 Schedules annexed to and forming part of the Consolidated Financial Statements

(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.

8. 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) Key Management Personnel
Mr. Gracias Saldanha
Mrs. B. E. Saldanha
Mr. Glenn Saldanha
Mrs. Cheryl Pinto
Mr. R. V. Desai
Mr. A. S. Mohanty
b) Transactions with related parties during the year
Rs. in (‘000s)
2009-2010 2008-2009
Managerial Remuneration
Name of Directors
1. Mr. Gracias Saldanha 120 25,882
2. Mrs. B. E. Saldanha 60 40
3. Mr. Glenn Saldanha 18,282 34,093
4. Mrs. Cheryl Pinto 9,409 15,011
5. Mr. R. V. Desai - 9,190
6. Mr. A. S. Mohanty 8,202 11,213

48 GLENMARK PHARMACEUTICALS LIMITED

Schedules annexed to and forming part of the Consolidated Financial Statements

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.

10. EMPLOYEE BENEFITS

The disclosures as required as per the revised AS 15 are as under:
1. Brief description of the Plans
The Group has various schemes for long-term benefits such as Provident Fund, Superannuation, Gratuity, Pension Fund, Social
Securities and Leave Encashment. In case of funded schemes, the funds are recognised by the Income tax authorities and
administered through appropriate authorities. The Group's defined contribution plans are Superannuation and Employees'
Provident Fund and Pension Scheme since the Company has no further obligation beyond making the contributions. The
Group's defined benefit plans include Gratuity and Leave Encashment.

ANNUAL REPORT 2009-2010 49

 Schedules annexed to and forming part of the Consolidated Financial Statements

2. Charge to the Profit and Loss Account based on contributions:

Rs. in (‘000s)
2009-10 2008-09
Superannuation 2,331 2,326
Provident Fund, Pension Fund and Social Securities 165,351 129,087
167,682 131,413
3. Disclosures for defined benefit plans based on actuarial reports as on 31st March, 2010:
Rs. in ('000s)
2009-2010 2008-2009
Leave Leave
Gratuity Encashment Gratuity Encashment
(Funded plan) (Funded plan) (Funded plan) (Funded plan)
(i) Change in Defined Benefit Obligation
Opening defined benefit obligation 121,429 68,839 103,127 48,330
Current service cost 20,086 16,881 15,036 15,079
Interest cost 9,112 4,873 7,710 3,169
Actuarial loss/(gain) 2,549 12,075 5,095 13,209
Benefits paid (8,720) (15,062) (9,539) (10,948)
Closing defined benefit obligation 144,456 87,606 121,429 68,839
(ii) Change in Fair Value of Assets
Opening fair value of plan assets 117,459 35,271 76,559 29,790
Expected return on plan assets 10,815 2,506 8,152 2,422
Actuarial gain/(loss) 3,628 789 (4,781) 91
Contributions by employer 10,117 20,019 47,067 13,917
Benefits paid (8,720) (15,062) (9,539) (10,949)
Closing fair value of plan assets 133,299 43,523 117,458 35,271
(iii) Reconcilation of Present Value of Defined Benefit
Obligation and the Fair Value of Assets
Present Value of Funded Obligation as at end of the 144,456 87,607 121,429 68,839
year
Fair Value of Plan Assets as at end of the year (133,299) (43,523) (117,458) (35,271)
Funded Liability/(Asset) recognised in the Balance Sheet 11,157 44,084 3,971 33,568
Present Value of Unfunded Obligation as at end of the - - - -
year
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 144,456 87,607 121,429 68,839
Fair value of plan assets as at year end (133,299) (43,523) (117,458) (35,271)
Amount not recognised as an asset - - - -
Net (asset)/liability recognised as on 31st March, 2010 11,157 44,084 3,971 33,568
(v) Expenses recognised in the Profit and Loss Account
Current service cost 20,086 16,881 15,036 15,079
Interest on defined benefit obligation 9,112 4,873 7,710 3,169
Expected return on plan assets (10,815) (2,506) (8,152) (2,422)
Net actuarial loss/(gain) recognised in the current year (1,079) 11,286 9,876 13,118
Total expense 17,304 30,534 24,470 28,944
(vi) Actual Return on Plan Assets
Expected return on plan assets 10,815 2,506 8,152 2,422
Actuarial gain/(loss) on Plan Assets 3,628 789 (4,781) 91
Actual Return on Plan Assets 14,443 3,295 3,371 2,513
(vii) Asset information
Administered by Birla Sunlife Insurance Co. Ltd. 100% 100% 100% 100%
and LIC of India

50 GLENMARK PHARMACEUTICALS LIMITED

Schedules annexed to and forming part of the Consolidated Financial Statements

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)

13. PRIOR YEAR COMPARATIVES

Prior year’s figures have been regrouped or reclassified wherever necessary to confirm to current year’s classification.

Signatures to the Schedules 1 to 21 which form an integral part of the Financial Statements.

For Price Waterhouse For and on behalf of the Board of Directors

Firm Registration Number: 301112E
Chartered Accountants

Partha Ghosh Glenn Saldanha Cheryl Pinto A. S. Mohanty

Partner Managing Director & CEO Director Director
Membership Number: F-55913

Place: Mumbai Marshall Mendonza

Date: 28th May, 2010 Vice President - Legal & Company Secretary

ANNUAL REPORT 2009-2010 51

 Profiles of Directors

Mr. Gracias Saldanha (Chairman)

Mr. Gracias Saldanha, 72, is the founder of the Company. He
has over 38 years experience in the industry. His educational
qualifications include a M.Sc. from Bombay University with a
Diploma in Management Studies from Jamnalal Bajaj Institute
of Management Studies, Mumbai. He has worked with leading
pharmaceutical companies like Abbott Laboratories and E. Merck.
Mrs. Cheryl Pinto (Director - Corporate Affairs)
Mrs. Cheryl Pinto, 43, is a graduate in Pharmacy from the
University of Bombay. She has over 22 years experience in the
pharmaceuticals business.
Mrs. B. E. Saldanha (Non-Executive Director)

Mrs. B. E. Saldanha, 70, has graduated in B.Sc., B.Ed., from Bombay

Mr. Glenn Saldanha (Managing Director & CEO)
Mr. Glenn Saldanha, 40, is a B.Pharm from Bombay University
and was awarded the Watumall Foundation Award for overall
excellence. His other educational qualifications include an MBA
from New York University’s Leonard N. Stern School of Business
(US). He has worked for Eli Lilly in the US and was a Management
Consultant with Price Waterhouse Coopers. His services have been
used by Smithkline Beecham, Rhorer, Astra, Merck and Johnson
and Johnson, among others.
Mr. A. S. Mohanty (Director – Corporate Communications & CSR)
Mr. A. S. Mohanty, 56, is M.Sc., and looks after Corporate
Communications & CSR activities. He has over 32 years experience
in pharmaceutical sales and marketing as well as healthcare
sectors.
Mr. N. B. Desai (Non-Executive Director)
Mr. N. B. Desai, 83, is a retired General Manager of Bank of Baroda.
He has over 46 years experience in the Banking Sector. He has
worked in India and overseas. He was Chairman of Bank of Baroda
Uganda Ltd. He was the founder and Managing Director of
Equitorial Bank PLC, UK from which he retired in 1992.
Mr. Sridhar Gorthi (Non-Executive Director)
Mr. Sridhar Gorthi, 38 is a B.A., L.L.B., (Hons.) from the National
Law School of India University. Mr. Sridhar Gorthi is presently a
partner in Trilegal and has worked with Arthur Anderson and Lex
Inde, Mumbai. He is involved in legal advisory services to various
multinational and domestic corporations on restructuring, debt
finance, joint ventures, acquisition/mergers etc.
University and was a Whole-time Director of the Company from
1982 to 2005. She was responsible to a large extent in developing
the Company’s export business.
Mr. Julio F. Ribeiro (Non-Executive Director)
Mr. Julio F. Ribeiro, 81, is a retired government official and has
served the country under various assignments. Amongst the
major positions held, he has been the Ex-commissioner of Police,
Mumbai, former Special Secretary to Government of India,
Ministry of Home Affairs, former Director General of Police, Punjab,
Ex-Adviser to the Governor of Punjab, Ex-Ambassador of India to
Romania.
Mr. Hocine Sidi Said (Non-Executive Director)
Mr. Hocine Sidi Said, 45, has graduated in B.A (International
Marketing). He is the Founder & Director of Bio-nAbler, an
investment company that partners with Sovereign Wealth Funds
and Private Equity Firms across Asia and the MENA region to
identify and execute product and company acquisitions. He has
over 20 years of experience in the pharmaceuticals industry and
has worked with companies like Pfizer and UCB. During his stint
at UCB, he was incharge of the entire Emerging Markets Region
and designated as Senior Vice President. Prior to joining UCB, he
spent close to 17 years with Pfizer in various senior management
and developmental roles in the Middle East, Central and Eastern
Europe and Asia.

Mr. D. R. Mehta (Non-Executive Director)

Mr. D. R. Mehta, 73, has graduated in Arts and law from

Rajasthan University. He also studied at Royal Institute of Public
Administration, London, UK and the Alfred Sloan school of
Management, Boston, U.S.A. He has over 40 years experience in
civil services and has held various positions in the Government of
Rajasthan and Government of India. He was the Deputy Governor
of Reserve Bank of India and also the chairman of the Securities
and Exchange Board of India.

52 GLENMARK PHARMACEUTICALS LIMITED

Directors’ Report

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

ANNUAL REPORT 2009-2010 53

 Glenmark Dominicana, SRL. The Company has also incorporated a
subsidiary i.e. Glenmark Generics B.V., Netherlands.
Pursuant to the provisions of Section 212 (8) of the Companies
Act, 1956, the Company has obtained exemption from Ministry of
Corporate Affairs, New Delhi, vide its letter No. 47/420/2010-CL-III
dated 28th June, 2010 to attach Audited Accounts of its subsidiaries
together with Directors’ Report and Auditor’s Report. The Audited
Accounts of the subsidiaries together with its Directors’ Report
and Auditor’s Report are available for inspection of members on
any working day at the Corporate Office of the Company between
11 a.m. to 1 p.m.
DIRECTORS
Mr. Glenn Saldanha, Mr. Sridhar Gorthi and Mr. J. F. Ribeiro retire
by rotation at the ensuing Annual General Meeting and being
eligible, offer themselves for re-appointment.
Mr. M. Gopal Krishnan resigned as Director of the Company
w.e.f. 29th January, 2010. Your Directors wish to place on record
their sincere appreciation of the valuable contribution made by
Mr. Gopal Krishnan during his tenure on the Board.
Mr. Hocine Sidi Said has been appointed as Additional Director
w.e.f. 29th October, 2009. He holds office as Director upto the date
of the ensuing Annual General Meeting. Notice has been received
from a member of the Company pursuant to the provisions of
Section 257 of the Companies Act, 1956 signifying his intention
to appoint Mr. Hocine Sidi Said as Director on the board of the
Company.
CORPORATE GOVERNANCE
Report on the Corporate Governance forms an integral part of
this Report. The Certificate of the Practicing Company Secretary
certifying compliance with the conditions of Corporate
Governance as stipulated in clause 49 of the Listing Agreement
with Stock Exchanges is annexed with the report on Corporate
Governance.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The management discussion and analysis report on the operations
of the company, as required under the Listing agreements with
the stock exchanges is provided in a separate section and forms a
part of this report.
AUDITORS
M/s. Price Waterhouse, Chartered Accountants, have been the
Statutory Auditors of the Company since F.Y. 2002-03. The Audit
Committee and the Board of Directors have decided that in
order to adhere to the best Corporate Governance practices, the
Statutory Auditors should be changed periodically on rotational
basis. The Company has received a Special Notice pursuant to
Section 225 of the Companies Act, 1956 from a member proposing
to move a resolution for the appointment of Walker, Chandiok &
Co. Chartered Accountants, as Statutory Auditors of the Company
in place of the retiring auditors, M/s. Price Waterhouse at the
ensuing Annual General Meeting.
Your Directors propose the appointment of Walker, Chandiok &
Co., Chartered Accountants, as Statutory Auditors of the Company
at the ensuing Annual General Meeting.
Walker, Chandiok & Co. is a member firm of M/s Grant Thornton
who is a leading international firm rated among the top 10 firms.
54 GLENMARK PHARMACEUTICALS LIMITED
They have a large international network and would be helpful and
useful to the Company in managing its international operations.
They have representations on various Accounting Board &
committees in India and cater to leading companies.
HUMAN RESOURCES
Company’s industrial relations continued to be harmonious
during the year under review.
PARTICULARS OF EMPLOYEES
Information as required under the provisions of Section 217(2A)
of the Companies Act, 1956 read together with the Companies
(particulars of Employees) Rules, 1975, as amended, are given in
an Annexure forming part of this report.
CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT,
TECHNOLOGY ABSORPTION, FOREIGN EXCHNAGE EARNINGS AND
OUTGO
The particulars as prescribed under Section 217(1)(e) of the
Companies Act, 1956, read with the Companies (Disclosure of
particulars in the report of Board of Directors) Rules, 1988 are set
out in the Annexure-A to this Report.
DIRECTORS’ RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, the
directors confirm that –
(i) in the preparation of the annual accounts, the applicable
accounting standards have been followed along with
proper explanation relating to material departures, if any;
(ii) appropriate accounting policies have been selected and
applied consistently and have made judgments and
estimates that are reasonable and prudent so as to give a
true and fair view of the state of affairs of the Company as
at 31st March, 2010 and of the profit of the Company for the
year ended 31st March, 2010;
(iii) proper and sufficient care has been taken for maintenance
of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the
assets of the Company and for preventing and detecting
fraud and other irregularities;
(iv) the annual accounts have been prepared on a going concern
basis.
APPRECIATION AND ACKNOWLEDGEMENTS
Your Directors express their gratitude to the Company’s customers,
shareholders, business partner’s viz. distributors and suppliers,
medical profession, Company’s bankers, financial institutions
including investors for their valuable sustainable support and
Co-operation.
Your Directors commend the continuing commitment and
dedication of employees at all levels.
For and on behalf of the Board of Directors
G. Saldanha
Chairman
Mumbai
Date: 9th August, 2010
Annexures to the Directors’ Report

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

A. Power and Fuel Consumption 2009-10 2008-09

1. Electricity
(a) Purchased
Unit (in ‘000 Kwhrs) 7995.98 6210.77
Total Amount (Rs. in ‘000s) 35385.00 27587.12
Rate/Unit (Rs.) 4.43 4.44
(b) Own Generation
i) Through Diesel Generator
Unit (in ‘000 Kwhrs) 1187.92 992.99
Units per Ltr. of Diesel Oil 3.33 3.50
Cost/Unit (Rs.) 9.51 10.64
ii) Through Steam Turbine/Generator NIL NIL
2. Coal NIL NIL
Qty.
Total Cost
Avg. Rate
3. Furnace Oil/Light Diesel Oil
Qty. (K. Ltr.) 52.40 54
Total Amount (Rs. in ‘000s) 2391.40 2395.32
Avg. Rate (Rs./K. Ltr.) 45.64 44.35
4. i) Internal generation
Light Diesel Oil
Qty. (In Ltr. ‘000’s) NIL NIL
Total Cost (Rs. in ‘000s) NIL NIL
Rate/Unit (Rs.) NIL NIL
ii) Natural Gas
Qty. (M3 ‘000s) NIL NIL
Total Cost (Rs. in ‘000s) NIL NIL
Rate/Unit (Rs.) NIL NIL

B. Consumption preformulation studies, formulation and

standardization of dosage forms for selected
The Company manufactures several Drug Formulations
drug molecules on laboratory scale.
in different pack sizes. In view of this, it is impracticable to
apportion the consumption and cost of utilities to each R & D has developed the new formulations for new
Product/Formulation. and existing molecules and drug combinations.
Which includes its standardization and execution
B. TECHNOLOGY ABSORPTION, RESEARCH & DEVELOPMENT
at production site, evaluation of these batches
(R & D)
against reference samples for pharmaceutical and
1. Specific areas in which R & D is carried out by the bio-equivalence.
Company and its subsidiaries and benefits derived
as a result of the same. The following products are ready for commercialization and
commecialized during the financial year 2009-2010.
Formulation Development:
a) Pharmaceutical Formulation Development: Anti inflammatory and analgesic

Development of formulations as immediate 1. Lornoxicam + Paracetamol Tablets (4 mg+500 mg)

release, delayed release, enteric release, (commecialized)
sustained release and various platform 2. Lornoxicam + Paracetamol Tablets (8 mg+500 mg)
technologies. This includes literature survey, (commecialized)

ANNUAL REPORT 2009-2010 55

 3. Lornoxicam SR Tablets 16 mg (commecialized)
4. Dexibuprofen tablets 300 mg (commecialized)
5. Dexibuprofen tablets 400 mg (commecialized)
6. Dexibuprofen + Paracetamol tablets 300 + 500 mg
(commecialized)
7. Diacerein ER capsules 100 mg (Ready for
commercialization)
Anti Allergic
Liquid Orals
1 Levosalbutamol Sulphate + Guaiphenesin + Ambroxol
Hydrochloride Expectorant (commecialized)
2. Amantadine Hydrochloride + Paracetamol +
Phenylephrine Hydrochloride + Chlorpheniramine
Maleate Oral Solution (commecialized)
Oncology

1. Levocetirizine + Phenylephrine capsules 1. Pemetrexed for Injection (commecialized)

(5mg + 10 mg) (commecialized)
Anti Diabetic
1. Metformin Hydrochloride Extended Release Tablets
1000 mg (Ready for commercialization)
2. Miglitol and metformin Hydrochloride SR Tablets
(25 mg + 500 mg) and (50 mg + 500 mg)
(commecialized)
Anti Asthmatic
1. Acebrophylline Capsule 100 mg (commecialized)
2. Montelukast & Levocetirizine Tablets (Ready for
commercialization)
3. Doxofylline & Salbutamol Capsules (400 + 2 & 400
+ 4) (Ready for commercialization)
Anti Hypertensive
1. Telmisartan & Metoprolol tablets  (40 mg + 25 mg)
(Ready for commercialization)
2. Telmisartan & Metoprolol tablets  (40 mg + 50 mg)
(Ready for commercialization)
3. Olmesartan Tablets 40mg (commecialized)
4. Olmesartan + Hydrochlorothiazide Tablets (40 mg
+12.5 mg) (commecialized)
2. Bortezomib for Injection (commecialized)
3. Erlotinib Tablets (commecialized)
NCE Formulation Development
1. Formulation Development for NCE 8200 - tablet
batch for clinical bridging study 50/100 mg
(Completed)
2. Formulation Development NCE 4039-Tablet and
capsule batches for clinical study.
3. Formulation Development NCE 10693- Preclinical
development & clinical development
4. Formulation Development NCE 15300 - Preclinical
development and clinical studies.
5. Formulation Development NCE 15691 - Preclinical
development and clinical studies.
6. Formulation Development NCE 17536 - Preclinical
development and clinical studies.
7. Formulation Development NCE 17173 - Preclinical
development.
US market
1. Omeprazole capsule 10 mg, 20 mg, 40 mg (Ready for
commercialization)
Analytical Method Development:

Hormones a) Development of new analytical test procedures for

Establishing the quality and setting up specification for the
1. Buserelin Injection 1 mg / ml (commecialized) release testing of Dosage Forms and Active Pharmaceutical,
2. Cyproteronoe Acetate & Ethinyl Estradiol tablets Finished Intermediates is the responsibility of Analytical
(Ready for commercialization) Method Development group at Glenmark R & D. These
Anti Bacterial methods are validated as per International Regulatory
Standards.
1. Tigecycline Injection (commecialized)
2. Ofloxacin and Ornidazole Tablet (commecialized) The responsibilities of this department also include the
3. Colistimethate Injection 1 Million IU (Ready for evaluation of the stability of the products developed at
commercialization) R&D under various Climatic Conditions as ICH Guidelines
of Stability. This data is used as a basis to predict the shelf
Dermatology
life of the products and also to prepare the stability study
1. Benzoyl Peroxide Gel 2.5% (Ready for protocols for the commercial products manufactured as
commercialization) drug products/drug substance.
2. Benzoyl Peroxide Gel 5% (Ready for
commercialization) Category Method Methods Methods
Developed Validated Transferred
3. Sertaconazole + Beclomethasone Dipropionate Cream
to the
(Ready for commercialization)
manufacturing
4. Hydroquinone+Tretinoin+Fluocinolone Acetonide Site
Cream (commecialized)
Oral Solid Dosages 87 46 19
5. Clotrimazole + Beclomethaosne Dipropionate +
Derma products 29 33 17
Lidocaine + Ofloxacin Ear Drops (commecialized)
Oncology products 10 5 4
6. Tretinoin cream (Ready for commercialization)
API 3 9 9
Topical Solutions
Documents for Drug – – 49
1. Minoxidil 10% + Aminexil 1.5% Topical Solution Substance
(Ready for commercialization) (STP, Specs etc.)

56 GLENMARK PHARMACEUTICALS LIMITED

In Analytical Research activities for NCE research: - Development of formulations for US market.
a) We developed new analytical test procedures to establish - Antihypertensive molecules
the structure and evaluate the quality of NCE prior to - Metered dose inhaler products for India market.
initial biological screening. During pre-clinical studies, - Metered dose inhaler products for Brazil market
we generated analytical data for establishing the quality
and setting up specification for the release testing of - Development of specialized NDDS products for
Drug substances. The methods used to release the drug Indian/SRM.
substances which are used in clinical trials, are validated as TECHNOLOGY ABSORPTION, ADOPTION AND INNOVATION:
per International Regulatory Standards.
1. Efforts in brief towards technology absorption,
b) We evaluated physicochemical properties of new chemical adoption and innovation.
entity; did the characterization studies, stability studies
(under various Climatic Conditions as per ICH Guidelines of Most of our efforts in the area of technology
Stability). absorption, adoption and innovation are based on
our own efforts in R & D. They include improvement
c) CMC related Dossiers, study protocols and study reports in yield and quality, improvement of processes and
were prepared to support various pre-clinical studies and development of new processes with validation
clinical trial applications with Regulatory Agencies. studies.
d) We performed polymorphic evaluation and salt selection 2. Benefits derived:
studies on various NCEs drug substance and drug products.
Benefits derived are enhanced production of our
e) Reference standards of NCE were generated and supplied to products, improvement in the yield and quality of
CROs and manufacturing sites. products and introduction of new products, cost
reduction of products and processes without affecting
Category Numbers the quality of the products and process efficacy.
Methods developed 131
Our R & D Centre is recognised by D.S.I.R., Ministry of
Methods Validated 3
Science and Technology, Government of India.
Methods Transferred to the Manufacturing 4
Sites Information regarding technology imported during
Reference Standards for NCEs 9 the last five years – Nil.
Stability Studies 136 3. Expenditure on R & D:
Developmental Studies 15 (Rs. in Million)
Documents for Drug Substance (Dossiers, 413 2009-10 2008-09
Specs, CoA, TTD, etc.) a) Capital Expenditure 57.98 104.46
2. Future plan of action b) Revenue Expenditure 460.56 514.58
R & D is working on new molecules in the following segment; c) Total 518.54 619.04
d) R & D Expenditure as a 4.99% 6.41%
- Oncology Products percentage of total turnover
- Antifungal molecules
C. FOREIGN EXCHANGE EARNINGS AND OUTGO
- Antibacterial molecules
1. Activities relating to exports; initiatives taken to
- Antiasthmatic molecules
increase exports; development of new export markets
- Antidiabetic products for products and services; and export plans. The
- Antiaging products Management Discussion and Analysis report forming
- Antiinflammatory products a part of the Directors Report deals with the same.
- Atihyperlipidemic products 2. Total foreign exchange earned was Rs. 2953.47 million
- Antiosteoporosis products and outflow was Rs. 596.83 million.
- Antiemetic products
- Sunscreens Products
- Technology – such as microspheres & aerosols foam For and on behalf of the Board of Directors
Mousse.
- Technology – to replace solvents used in film coating
by water. G. Saldanha
- Development of formulations for Semi regulatory Chairman
market. Mumbai
- Development of formulations for Latin American market. Date: 9th August, 2010

ANNUAL REPORT 2009-2010 57

 ANNEXURE-B
Disclosure in the Directors’ Report as per SEBI Guidelines:

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

c Options Vested** 5,764,000

d Options Exercised** 2,252,500
e Total no. of shares arising as result of exercise of Options 2,252,500
f Options lapsed * 5,248,900
g Variation in terms of Options None
h Money realised by exerise of Options (in lakhs) 952.85
i Total number of options in force** 2,633,500
** The number of options have been reported as on 31.03.2010
* Lapsed Options includes options cancelled/lapsed
j Employee wise details of options granted to :
- Senior Management Name of the employee No. of options granted
Chanakya Mishra 10000
Jaswinder Gill 10000
Paulo Tadeu Resende 27500
Penny Ward 35000
Rajeev Sibal 10000
Rick Finnegan 25000
Sanjay Gupta 20000
- any other employee who receives a grant in any one year of
option amounting to 5% or more of option granted during that None
year
- employees who were granted option, during any one year,
equal to or exceeding 1% of the issued capital (excluding None
warrants and conversions) of the Company at the time of grant
Diluted earnings per share pursuant to issue of shares on exercise
k
of option calculated in accordance with AS 20 'Earnings per Share'
l Pro Forma Adjusted Net Income and Earning Per Share
Particulars Rs. in Lakhs
Net Income 12,846.32
As Reported
Add: Intrinsic Value Compensation Cost Nil
Less: Fair Value Compensation Cost 24.58
Adjusted Pro Forma Net Income 12,821.74
Earning Per Share: Basic
As Reported 4.93
Adjusted Pro Forma 4.92
Earning Per Share: Diluted
As Reported 4.92
Adjusted Pro Forma 4.91

58 GLENMARK PHARMACEUTICALS LIMITED

m Weighted average exercise price of Options granted during the
year whose
(a) Exercise price equals market price 228.63
(b) Exercise price is greater than market price N.A.
(c) Exercise price is less than market price N.A.
Weighted average fair value of options granted during the year
whose
(a) Exercise price equals market price 141.95
(b) Exercise price is greater than market price N.A.
(c) Exercise price is less than market price N.A.
n Description of method and significant assumptions used to The fair value of the options granted has been estimated using
estimate the fair value of options the Black-Scholes option pricing model. Each tranche of vesting
have been considered as a separate grant for the purpose of
valuation. The assumptions used in the estimation of the same
has been detailed below:
Weighted average values for options granted during the year
Variables
Stock Price 230.16
Volatility 57.43%
Risk-free Rate 7.75%
Exercise Price 228.63
Time to Maturity 6.00
Dividend yield 22.00%
141.95
Stock Price : Closing price on NSE as on the date of grant has been considered for valuing the grants.
Volatility : We have considered the historical volatility of the stock till the date of grant to calculate the fair value.
Risk-free rate of return : The risk-free interest rate being considered for the calculation is the interest rate applicable for a maturity equal to
the expected life of the options based on the zero-coupon yield curve for Government Securities.
Exercise Price : The Exercise Price is the latest available closing market price of the equity shares of the Company, prior to the date of grant,
for the respective grants.
Time to Maturity : Time to Maturity / Expected Life of options is the period for which the Company expects the options to be live. The
minimum life of a stock option is the minimum period before which the options cannot be exercised and the maximum life is the maximum
period after which the options cannot be exercised.
Expected divided yield : Expected dividend yield has been calculated as an average of dividend yields for the four financial years preceding
the date of the grant.

ANNUAL REPORT 2009-2010 59

 Report on Corporate Governance

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 – – –

N. B. Desai Non-Executive None 2 1 – 3

– Independent
Sridhar Gorthi Non-Executive None 5 2 – 3
– Independent
D. R. Mehta* Non-Executive None 3 6 – –
– Independent
Hocine Sidi-Said** Non-Executive None 1 – – –
– Independent
M. Gopal Krishnan*** Non-Executive None 1 – – –
– Independent
# Includes Directorship(s) in Indian Companies. The Directorships held by Directors as mentioned above, do not include
Alternate Directorships and Directorships of Foreign Companies, Section 25 Companies and Private Limited Companies.
## In accordance with Clause 49 of the Listing Agreement, Membership/Chairmanship of only the Audit Committee and
Shareholders/Investors Grievance Committee of all Public Limited Companies have been considered.
* Appointed as Director w.e.f. 14th August, 2009
** Appointed as Director w.e.f. 29th October, 2009
*** Ceased to be a Director w.e.f. 29th January, 2010
b) During the Financial Year ended 31st March, 2010, Six board meetings were held on the following dates:
17th April 2009, 26th June 2009, 27th July 2009, 14th August 2009, 29th October 2009 and 29th January 2010
B. None of the Non-Executive Directors of the Company, have any pecuniary relationship or transactions with the Company other
than sitting fees paid for attending board meeting/ committee meetings and those already disclosed in the note 7 of schedule
21 to the Financial Statement in the Annual Report.
C. Mr. Gracias Saldanha, Mr. Glenn Saldanha, Mrs. Cheryl Pinto and Mr. J. F. Ribeiro attended the last Annual General Meeting of
the Company held on 25th September, 2009.

60 GLENMARK PHARMACEUTICALS LIMITED

3. Audit Committee:
i) Your Company has a qualified and independent Audit Committee. During the Financial Year ended 31st March, 2010, the
committee met five times on 30th May, 2009, 26th June, 2009, 27th July, 2009, 28th October, 2009 and 29th January, 2010. The
attendance of the Committee members at the meetings was as follows:
ii)
Name No. of meetings attended Remarks
1. J. F. Ribeiro 4 Chairman
2. Sridhar Gorthi 3 Member
3. N. B. Desai 2 Member
4. M. Gopal Krishnan 1 (Ceased to be a member w.e.f.
29th January, 2010)
Mr. Glenn Saldanha, Managing Director & CEO, Mr. R. V. Desai, CFO and Mr. Prakash Sevekari, Cost Auditor are invitees to the
Meeting of the Audit Committee. The Company Secretary acts as a Secretary to the Committee. The terms of reference of this
committee are wide enough covering matters specified in the Companies Act, 1956 read together with Clause 49 of the Listing
Agreement of the Stock Exchange. The current Charter of the Audit Committee is in line with international best practices and the
regulatory changes formulated by SEBI and the listing agreements with the stock exchanges on which your company is listed.
iii) Terms of Reference:
a) Approving and implementing the audit procedures and techniques.
b) Reviewing audit reports of both statutory and internal auditors with auditors and management.
c) Reviewing financial reporting systems, internal control systems and control procedures.
d) Ensuring compliance with regulatory guidelines.
e) Reviewing the quarterly, half-yearly and annual financial results of the Company before submission to the Board.
4. Remuneration of Directors:
A. The remuneration of the executive and non-executive Directors of your Company is decided by the Board of Directors on the
terms and conditions as per the recommendation by the Compensation Committee.
B. Given below are the details of remuneration/fees/commission paid to Directors during the financial year ended 31st March , 2010:
Name of Director Salaries Retirement Commission Sitting Fees Total
Amount (Rs.) benefits/other Amount (Rs.) Amount (Rs.) Amount (Rs.)
reimbursements
Amount (Rs.)
1. Gracias Saldanha – – – 120,000 120,000
2. B. E. Saldanha – – – 60,000 60,000
3. Glenn Saldanha 9,720,000 8,562,309 – – 18,282,309
4. Cheryl Pinto 7,900,512 1,508,443 – – 9,408,955
5. J. F. Ribeiro – – – 1,80,000 1,80,000
6. N. B. Desai – – – 80,000 80,000
7. M. Gopal Krishnan* – – – 40,000 40,000
8. Sridhar Gorthi – – – 1,60,000 160,000
9. A. S. Mohanty 6,200,508 1,044,163 957,000 – 82,01,671
10. D. R. Mehta – – – 60,000 60,000
11. Hocine Sidi Said – – – 20,000 20,000
23,821,020 11,114,915 957,000 720,000 36,612,935
Notes:
1. The Executive Directors have been reappointed on 16th May, 2007 for the term of five years. The service contract can be
terminated with a notice of six months.
2. Sitting fees of Rs. 1,60,000 of Mr. Sridhar Gorthi was paid to Trilegal on his behalf.
* Ceased to be director w.e.f. 29th January, 2010
Shares held by non-executive/Independent directors as on 31st March, 2010
Name of Director Equity Shares (Nos.)
Gracias Saldanha 654744
B. E. Saldanha 537598
J. F. Ribeiro 45800
N. B. Desai 30000
Sridhar Gorthi 559
D. R. Mehta NIL
Hocine Sidi Said NIL

ANNUAL REPORT 2009-2010 61

 5. Shareholders’/Investors’ Grievance Committee:
The following Committee reviews shareholders’ complaints and resolution thereof.
Name of committee Members No. of meetings held Attendance at the meeting
Shareholders’ and Investors’ Grievance 1) J. F. Ribeiro – Chairman 7 7
Committee. 2) Glenn Saldanha – Member 7 6
3) N. B. Desai – Member 7 3
4) Cheryl Pinto – Member 7 5
Compliance Officer: Mr. Sanjay Chowdhary – Jt. Company Secretary acts as the Compliance officer of the Company.
 Details of investor’s complaints received during the year ended 31st March, 2010:
No. of complaints 2009-2010 2008-2009
Received 20 50
Disposed 20 50
Pending NIL Nil
 The Company’s Registrars, Karvy Computershare Private Ltd., had received letters/complaints during the financial year, all of
which were replied/resolved to the satisfaction of the shareholders.
6. Compensation Committee:
i) Broad terms of reference of the Compensation Committee:
 To recommend and review remuneration package of Executive/Non-Executive Directors.
 To approve issue of stock options to the employees.
ii) The Compensation Committee comprises of following members of the Board:
1. J. F. Ribeiro - Chairman
2. Glenn Saldanha - Member
3. N. B. Desai - Member
4. S. Gorthi - Member
iii) During the year ended 31st March, 2010, four meetings were held: 17th April 2009, 14th July 2009, 29th January 2010 and 25th
February 2010.
iv) Compensation Policy:
The Company follows a market linked remuneration policy, which is aimed at enabling the Company to attract and retain the
best talent. Compensation is also linked to individual and team performance as they support the achievement of Corporate
Goals. The Company has formulated an Employee Stock Option Scheme for rewarding & retaining performers.
7. Disclosures by Management:
a) No material, financial and commercial transactions were reported by the management to the Board, in which the management
had personal interest having a potential conflict with the interest of the company at large.
b) There are no transactions with the Director or Management, their associates or their relatives etc. that may have potential
conflict with the interest of the Company at large.
c) There was no non-compliance during the last three years by the Company on any matter related to capital market.
Consequently, there were neither penalties imposed nor strictures passed on the Company by Stock Exchanges, SEBI or any
statutory authority.
d) Though there is no formal Whistle Blower Policy, the Company takes cognizance of the complaints made and suggestions
given by the employees and others. Even anonymous complaints are looked into and whenever necessary, suitable corrective
steps are taken. No employee of the Company has been denied access to the Audit Committee of the Board of Directors of the
Company.
e) The company has fulfilled a non-mandatory requirement as prescribed in Annexure I D to Clause 49 of the Listing Agreement
with the Stock Exchanges, related to Remuneration Committee (Compensation Committee). Please see the Para on
Compensation Committee.
8. Shareholders information:
a) The relevant information relating to the Directors to be re-appointed at the ensuing Annual General Meeting to be held on
27th September, 2010 are given below:
i) Mr. Glenn Saldanha – 40, is a B. Pharm from Bombay University and was awarded the Watumall Foundation Award for
overall excellence. His other educational qualifications include an MBA from New York University’s Leonard N. Stern
School of Business (US). He has worked for Eli Lilly in the US and was a Management Consultant with Price Waterhouse
Coopers. His Services have been used by Smithkline Beecham, Rhorer, Astra, Merck and Johnson and Johnson, among
others. He has been the Managing Director of the Company since May’2002. He is also a Director of following Companies/
Body Corporates:

62 GLENMARK PHARMACEUTICALS LIMITED

 Names of the companies/firms Position
Glenmark Exports Ltd. Director
Glenmark Generics Inc., USA. Director
Glenmark Dominicana, S.R. L. Director
Glenmark Pharmaceuticals S.A. Director
Glenmark Holding S.A. Director
Glenmark Generics Ltd. Chairman
Glenmark Generics Holding S.A. Director
Glenmark Generics Finance S.A. Director
Glenmark Therapeutics Inc. USA Director
Talwalkar Better Value Fitness Ltd. Director
ii) Mr. J. F. Ribeiro – 81, is a retired Government official and has served the country under various assignments. Amongst
the major positions held, he has been the Ex-Commissioner of Police, Mumbai, Former Special Secretary to Government
of India, Ministry of Home Affairs, former Director General of Police, Punjab, Ex-Adviser to the Governor of Punjab,
Ex-Ambassador of India to Romania. He is also a Director of following Companies/Body Corporates:
Names of the companies/firms Position
Glenmark Generics Ltd. Non-Executive Director
VVF Ltd. Non-Executive Director
Fullerton India Credit Company Ltd. Non-Executive Director
iii) Mr. Sridhar Gorthi – 38, is a B.A., LLB (Hons.) from the National Law School of India University. He is presently a partner in
Trilegal and has worked with Arthur Anderson and Lex Inde, Mumbai. He is involved in legal advisory services to various
multinational and domestic corporations on restructuring, debt finance, joint ventures, acquisition/mergers etc. He is
also a Director of following Companies/Body Corporates:
Names of the companies/firms Position
Trilegal Partner
Triconsult India Pvt. Ltd. Director
Glenmark Generics Ltd. Director
Hathway Cable & Datacom Limited Director
Pay Pal Payment Pvt. Ltd. Director
Aurous Communications & Events (I) Pvt. Ltd. Director
Insite India adviser Limited Director
Scottish & Newcastle India Pvt. Ltd Director
RPS Research India Pvt. Ltd. Director
Petro Tiger Services India Private Limited Director
iv) Mr. Hocine Sidi Said – 45, is the Founder & Director of Bio-nAbler, an investment company that partners with Sovereign
Wealth Funds and Private Equity Firms across Asia and the MENA region to identify and execute product and company
acquisitions. He has over 20 years of experience in the pharmaceuticals industry and has worked with companies
like Pfizer and UCB. During his stint at UCB, he was incharge of the entire Emerging Markets Region and designated
as Senior Vice President. Prior to joining UCB, he spent close to 17 years with Pfizer in various senior management
and developmental roles in the Middle East, Central and Eastern Europe and Asia. He is also a Director of following
Companies/Body Corporates:-
Names of the companies/firms Position
Moksha 8 Inc. Member
Fuelogical Pte Ltd. Director
Bio-nAbler LLC Director
b) Share Transfer Process: The shares are sent/received for physical transfer at R & T’s office and all valid transfer requests are
processed and returned within a period of 30 days from the date of receipt. The Share transfers are approved on weekly basis
by the Share Transfer Committee.
c) Dematerialisation of shares: As of 31st March, 2010, 99.05% of shares have been dematerialised and held in electronic form
through NSDL and CDSL. The shares of your company are permitted to be traded only in dematerialised form.
d) Share Holding Pattern as at 31st March, 2010:
Description No. of Shareholders Shares held % to Equity
Company Promoters 16 130507963 48.37
Foreign Institutional Investors 182 72432081 26.84
Residential Individuals 63881 29896297 11.08
Bodies Corporate 1363 11521963 4.27
Indian Financial Institutions 9 7905087 1.45
Mutual Funds 43 12063032 4.47
Non Resident Indians 1779 1804779 0.67
Foreign Nationals 7 112108 0.04

ANNUAL REPORT 2009-2010 63

 Description No. of Shareholders Shares held % to Equity
Banks 12 1286450 0.48
H.U.F. 1399 867228 0.32
Employees 63 512497 0.19
Clearing Members 290 779960 0.29
Directors 6 123824 0.05
Trusts 12 24284 0.01
TOTAL 69062 269837553 100.00
e) General Body Meetings:
i) The last three Annual General Meetings of the Company were held at the venue and time as under:
AGM No. Date Time Venue
29 20th September, 2007 11.00 a.m. Sunville Banquet & Conference Hall
3rd floor, Dr. Annie Besant Road,
Worli, Mumbai - 400 018.
30 26th September, 2008 11.00 a.m. Sunville Banquet & Conference Hall
3rd floor, Dr. Annie Besant Road,
Worli, Mumbai - 400 018.
31 25th September, 2009 11.00 a.m. Sunville Banquet & Conference Hall
3rd floor, Dr. Annie Besant Road,
Worli, Mumbai - 400 018.
All resolutions moved at the last Annual General Meeting were passed by a show of hands by requisite majority of
members who attended the meeting.
ii) Whether any special resolution passed in the previous three AGMs?
Yes.
iii) Whether any special resolution passed last year through postal ballot?
Yes
iv) Who conducted the postal ballot?
Mr. S. S. Rauthan, Practising Company Secretary.
v) Whether any special resolution is proposed to be conducted through postal ballot?
No.
vi) Procedure for postal ballot.
One resolution was passed by Postal ballot on 2nd September, 2009. Mr. S. S. Rauthan, Practising Company Secretary was
appointed as the scrutinizer for conducting the Postal Ballot and the Scrutinizer submitted his report to the Chairman of
the Board of Directors of the Company and the results were announced at the deemed Extra-Ordinary General Meeting
held on 2nd September, 2009 at the corporate office of the Company at Glenmark House, HDO Corporate Building,
Wing-A, B. D. Sawant Marg, Andheri (E), Mumbai - 400 099.
The following is the result of the Postal Ballot as per the Scrutinizer’s Report.
Item No. 1 of Notice: Approval of the shareholders under Section 81(1A) and other applicable provisions, if any, of the
Companies Act, 1956 for issue of shares or Convertible instruments by the company.
Particulars No. of Postal No. of Shares % of the total paid
Ballot Forms up equity shares
Total Postal Ballot forms received (A) 1332 145984726 58.27
Less: Invalid Postal Ballot forms (B) 36 114998 0.05
Net valid Postal Ballot forms (as per register) (A-B) 1296 145869728 58.22
Postal Ballot forms with assent for the resolution 1239 135004939 53.89
Postal Ballot forms with dissent for the resolution 57 10864789 4.33
f) Date, Time and Venue of the Ensuing Annual General Meeting : Annual General Meeting shall be held on Monday,
27th September, 2010 at 11 a.m. at Sunville Banquet & Conference Hall, 3rd Floor, Dr. Annie Besant Road, Worli,
Mumbai - 400 018.
Record Date/Book Closure:
 Book Closure: Monday, 20th September, 2010 to Monday, 27th September, 2010 (both days inclusive)
g) Date of declaration of dividend:
A dividend of Re. 0.40 per share has been recommended by the Board of Directors on 28th May, 2010 subject to the approval
of the shareholders at the ensuing Annual General Meeting.

64 GLENMARK PHARMACEUTICALS LIMITED

 h) Financial Calendar (Tentative and Subject to change)
Financial reporting for the first quarter ending June 30, 2010. July 2010
Financial reporting for the second quarter ending September 30, 2010. October 2010
Financial reporting for the third quarter ending December 31, 2010. January 2011
Financial results for the year ending March 31, 2011. May 2011
i) Members can avail of nomination facility by filing Form 2B with the Company. Blank forms can be downloaded from the
website of the Company.
j) Members may kindly note that consequent to split in the face value of equity shares of the company from Rs. 10/- to Rs. 2/- and
subsequently from Rs. 2/- to Re. 1/-, the share certificates in the face value of Rs. 10/-or Rs. 2/- have ceased to be valid for any
purpose whatsoever. Members who are holding share certificates of the face value of Rs. 10/- or Rs. 2/- each are requested to
kindly send their respective share certificates to the R & T Agents for receiving ten or two equity shares of face value of Re. 1/-
each in exchange of one equity share of face value of Rs. 10/- each or Rs. 2/-.
k) Pursuant to the provisions of Section 205A (5) of the Companies Act,1956, dividend for the financial year ended March 31,
2001 and thereafter, which remain unclaimed for a period of seven years will be transferred by the Company to the Investor
Education and Protection Fund (IEPF) established by the Central Government pursuant to Section 205C of the Companies Act,
1956.
Information in respect of such unclaimed dividend when due for transfer to the said Fund is given below :
Financial Year Date of declaration Date of transfer to unpaid/ Last date for claiming Due date for transfer
Ended of Dividend unclaimed dividend account unpaid Dividend to IEP Fund
31.03.2003 15.05.2003 15.06.2003 14.06.2010 14.07.2010
31.03.2004 29.03.2004 29.04.2004 28.04.2011 28.05.2011
31.03.2005 26.04.2005 26.05.2005 25.05.2012 24.06.2012
31.03.2006 31.01.2006 02.03.2006 01.03.2013 31.03.2013
31.03.2007 26.12.2006 25.01.2007 24.01.2014 23.02.2014
31.03.2008 31.10.2007 30.11.2007 29.11.2014 29.12.2014
31.03.2009 25.09.2009 25.10.2009 24.10.2016 23.11.2016
Shareholders who have not so far encashed their dividend warrant(s) are requested to seek issue of duplicate warrant (s)
by writing to the Company’s Registrar and Transfer Agents, M/s. Karvy Computershare Pvt. Ltd. immediately. Shareholders
are requested to note that no claims shall lie against the Company or the said Fund in respect of any amounts which were
unclaimed and unpaid for a period of seven years from the dates that they first became due for payment and no payment shall
be made in respect of any such claims.
l) Means of Communication:
a) Quarterly/Half Yearly and Annual Financial Results of the Company are published in the Financial Express and Punyanagri
newspapers.
b) Your Company’s results & official news releases are displayed on the company’s website.
c) All items required to be covered in the Management Discussion & Analysis are included in the Directors’ Report to
Members.
d) Company has its own web site and all the vital information relating to the company and its products is displayed on its
web site: www.glenmarkpharma.com.
e) Whether presentation made to institutional investors or to the analysts – Yes.
Your Company also regularly provides information to the stock exchanges as per the requirements of the Listing
Agreements. The Company’s website is updated periodically to include information on new developments and business
opportunities of your Company.
The Management Discussion & Analysis forms a part of the Annual Report.
9. Company’s Scrip Information:
 Listing on stock exchanges: The shares of the Company are listed on Bombay Stock Exchange Limited & the National Stock
Exchange of India Ltd.
 Listing fees for the year 2010-11 have been paid to the Stock Exchanges.
 Stock Code: 532296 on the BSE
 Electronic Form No. INE935A01035
 Scrip Name
 GLENMARK PHA- BSE
 GLENMARK - NSE

ANNUAL REPORT 2009-2010 65

 Market Price Data: High, low during each month in last financial year. Performance in comparison to broad based indices namely BSE
Sensex.
(All figures in Indian Rupees)
Months High Low Closing BSE Sensex Glenmark Vs. BSE SENSEX
Apr-09 217.50 147.50 179.80 11,403.25  300.00 20000
May-09 268.00 161.90 227.10 14,625.25  18000
250.00
Jun-09 266.80 199.05 217.60 14,493.84  16000

Jul-09 274.45 203.35 249.80 15,670.31  200.00 14000

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

Jan-10 290.00 235.30 242.15 16,357.96  0

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

10. Plant Locations:

The Company’s plants are located at:
i) E-37, MIDC Industrial Area, D Road, Satpur, Nasik - 422 007, Maharashtra.
ii) Village: Kishanpura, Baddi Nalagarh Road, Tehsil: Nalagarh, Dist.: Solan - 174 101, Himachal Pradesh.
iii) Business Unit II, Village Bhattanwala, PO Rajpura, Nalagarh Dist.: Solan, Himachal Pradesh.
iv) D-42, Plot No. 50, Kundaim Industrial Estate, Kundaim - 403 115, Goa.
11. Outstanding GDR’s/ADR’s/Warrants or any Convertible instruments exercised, date and likely impact on equity:
A) The Company had issued 2,36,500 new options under Employees Stock Option Scheme viz. ESOS’ 2003. During the Financial
Year 2009-2010, 6,01,100 options were cancelled and 6,04,860 options were exercised. As of 31st March, 2010, 26,33,500
options were outstanding and are due for exercise on the following dates:

ESOS’ 2003 ESOS’ 2003

Date Number of Options Date Number of Options
April 27, 2010 95,200 August 22, 2011 46,800
May 22, 2010 14,500 October 9, 2011 27,200
May 29, 2010 62,300 October 12, 2011 2,400
July 4, 2010 6,000 December 9, 2011 1,11,150

July 9, 2010 9,000 January 9, 2012 68,100

August 14, 2010 64,800 February 5, 2012 2,91,850

February 25, 2012 9,500
August 22, 2010 46,800
March 21, 2012 77,200
September 16, 2010 49,800
July 9, 2012 27,000
October 9, 2010 13,600
July 14, 2012 27,900
October 12, 2010 3,600
August 22, 2012 62,400
November 8, 2010 92,000
October 9, 2012 40,800
December 9, 2010 1,11,150
December 9, 2012 1,48,200
January 9, 2011 68,100
January 9, 2013 90,800
January 24, 2011 75,800 February 5, 2013 17,400
February 5, 2011 2,34,850 February 25, 2013 19,000
February 16, 2011 40,000 July 9, 2013 36,000
March 21, 2011 1,15,800 July 14, 2013 41,850
April 27, 2011 88,800 October 9, 2013 54,400
May 22, 2011 10,000 February 5, 2014 23,200
July 9, 2011 18,000 February 25, 2014 28,500
July 14, 2011 13,950 July 14, 2014 55,800
August 14, 2011 54,000 February 25, 2015 38,000

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.

66 GLENMARK PHARMACEUTICALS LIMITED

 B) The company had issued 20,000 Zero Coupon Foreign Currency Convertible Bonds of USD 1000 each.

i. Convertible at the option of the bondholder at any time on or after 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.

12. Electronic Clearing System (ECS):

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;

ANNUAL REPORT 2009-2010 67

 d) Once the payment is made through ECS/NECS company issues intimation letters to the investors as to credit/payment of
dividend, providing therein the details of the account and amount. Investors may download the ECS Mandate Form from the
company’s website and send the same duly filled in to registrars for updating of records.

13. Investor Helpdesk: for clarifications/assistance, if any, please contact:

Corporate Office Registrars & Transfer Agents

Persons to contact Mr. Sanjay Chowdhary Mr. M. R. V.Subrahmanyam

Add: Glenmark Pharmaceuticals Ltd. Karvy Computershare Pvt. Ltd.

Glenmark House, HDO Corporate Building, Wing A, B. D. Plot No. 17 to 24, Near Image Hospital, Vittalrao
Sawant Marg, Chakala, Off. Western Express Highway, Nagar, Madhapur, Hyderabad - 500 081.
Andheri (E), Mumbai - 400 099.

Telephone (022) 40189999 (040) 23420818-828

Fax No. (022) 40189986 (040) 23420814

E-mail webmaster@glenmarkpharma.com mrvs@karvy.com

Website: www.glenmarkpharma.com www.karvy.com

Investor Redressal: complianceofficer@glenmarkpharma.com -

Declaration regarding affirmation of Code of Conduct

In terms of the requirements of the amended Clause 49 of the Listing Agreement, this is to confirm that all the members of the Board and
the senior management personnel have affirmed compliance with the Code of Conduct for the year ended 31st March, 2010.

Place: Mumbai Glenn Saldanha

Date: 9th August, 2010 Managing Director & CEO

68 GLENMARK PHARMACEUTICALS LIMITED

Certification by the Chief Executive Officer (CEO) and Chief Financial Officer (CFO) on Financial
Statements of the Company
We, Glenn Saldanha, Managing Director & Chief Executive Officer and R. V. Desai, Chief Financial Officer, of Glenmark Pharmaceuticals Ltd.,
certify that:
(a) We have reviewed financial statements and cash flow statement for the year and that to the best of our knowledge and belief:
i) these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be
misleading;
ii) these statements together present a true and fair view of the company’s affairs and are in compliance with existing accounting
standards, applicable laws and regulations.
(b) There are, to the best of our knowledge and belief, no transactions entered into by the company during the year which are fraudulent,
illegal or violative of the company’s code of conduct.
(c) We accept responsibility for establishing and maintaining the internal controls for financial reporting and that we have evaluated the
effectiveness of internal control systems of the company pertaining to financial reporting and we have disclosed to the auditors and
the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps we
have taken or propose to take to rectify these deficiencies.
(d) We have indicated to the auditors and the Audit Committee:
i) significant changes in internal control over financial reporting during the year;
ii) significant changes in accounting policies during the year and that the same have been disclosed in the notes to the financial
statements:
iii) during the year there were no instances of fraud which we have become aware. The management and its employees have a
significant role in the Company’s internal control system.

Glenn Saldanha R. V. Desai

Managing Director & Chief Executive Officer Chief Financial Officer
Place: Mumbai
Date: 28th May, 2010

ANNUAL REPORT 2009-2010 69

 Certificate on Corporate Governance

To the Members of:

GLENMARK PHARMACEUTICALS LIMITED
We have reviewed the implementation of Corporate Governance procedures by Glenmark Pharmaceuticals Limited during the year ended
31st March, 2010, with the relevant records and documents maintained by the Company, furnished to us for our review and report on
Corporate Governance as approved by the Board of Directors.
The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination was limited to a review
of procedures and implementation thereof, adopted by the Company for ensuring the compliances of the conditions of Corporate
Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
In our opinion and to the best of our information and explanations given to us, we certify that the Company has complied with the
conditions of Corporate Governance as stipulated in the Listing Agreement.
On the basis of our review and according to the information and explanations given to us, the conditions of Corporate Governance as
stipulated in Clause 49 of the Listing Agreement(s) with the stock exchanges have been complied with in all material respect by the
Company and that no investor grievance is pending for a period exceeding one month against the Company as per the records maintained
by the Shareholders/Investors Grievance Committee.
We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness
with which the management has conducted the affairs of the Company.

For and on behalf of

S. S. Rauthan & Associates
Company Secretaries

Surjan Singh Rauthan

Proprietor
Place : Mumbai M. No. - FCS-4807
Date : 9th August, 2010. COP-3233

70 GLENMARK PHARMACEUTICALS LIMITED

Auditors’ Report

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

ANNUAL REPORT 2009-2010 71

 ANNEXURE TO AUDITORS’ REPORT
Referred to in paragraph 3 of the Auditors’ Report of even date to the members of Glenmark Pharmaceuticals Limited on the financial
statements for the year ended 31st March, 2010
1. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed
assets.
(b) The fixed assets are physically verified by the Management according to a phased programme designed to cover all the items
over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its
assets. Pursuant to the programme, a portion of the fixed assets has been physically verified by the Management during the
year and no material discrepancies between the book records and the physical inventory have been noticed.
(c) In our opinion and according to the information and explanations given to us, a substantial part of fixed assets has not been
disposed off by the Company during the year.
2. (a) The inventory (excluding stocks with third parties) has been physically verified by the Management during the year. In respect
of inventory lying with third parties, these have substantially been confirmed by them. In our opinion, the frequency of
verification is reasonable.
(b) In our opinion, the procedures of physical verification of inventory followed by the Management are reasonable and adequate
in relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our opinion, the Company is maintaining proper records of
inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material.
3. (a) The Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register
maintained under Section 301 of the Act.
(b) The Company has not taken any loans, secured or unsecured, from companies, firms or other parties covered in the register
maintained under Section 301 of the Act.
4. In our opinion and according to the information and explanations given to us, there is an adequate internal control system
commensurate with the size of the Company and the nature of its business for the purchase of inventory, fixed assets and for the
sale of goods and services. Further, on the basis of our examination of the books and records of the Company, and according to the
information and explanations given to us, we have neither come across nor have been informed of any continuing failure to correct
major weaknesses in the aforesaid internal control system.
5. According to the information and explanations given to us, there have been no contracts or arrangements referred to in Section 301
of the Act during the year to be entered in the register required to be maintained under that Section. Accordingly, the question of
commenting on transactions made in pursuance of such contracts or arrangements does not arise.
6. The Company has not accepted any deposits from the public within the meaning of Sections 58A and 58AA of the Act and the rules
framed there under.
7. In our opinion, the Company has an internal audit system commensurate with its size and nature of its business.
8. We have broadly reviewed the books of account maintained by the Company in respect of products where, pursuant to the Rules
made by the Central Government of India, the maintenance of cost records has been prescribed under clause (d) of sub-section (1) of
Section 209 of the Act, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained.
We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
9. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the
Company is generally regular in depositing the undisputed statutory dues including provident fund, investor education and
protection fund, employees’ state insurance, income-tax, sales-tax, wealth-tax, service tax, customs duty, excise duty, cess and
other material statutory dues as applicable with the appropriate authorities.
(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues
of income-tax, wealth-tax, service-tax, customs duty and cess which have not been deposited on account of any dispute.
The particulars of dues of sales-tax and excise duty as at 31st March, 2010 which have not been deposited on account of a
dispute, are as follows:

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

72 GLENMARK PHARMACEUTICALS LIMITED

10. The Company has no accumulated losses as at 31st March, 2010 and it has not incurred any cash losses in the financial year ended on
that date or in the immediately preceding financial year.
11. According to the records of the Company examined by us and the information and explanation given to us, the Company has not
defaulted in repayment of dues to any financial institution or bank as at the balance sheet date.
12. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other
securities.
13. The provisions of any special statute applicable to chit fund/nidhi/mutual benefit fund/societies are not applicable to the Company.
14. In our opinion, the Company is not a dealer or trader in shares, securities, debentures and other investments.
15. In our opinion and according to the information and explanations given to us, the terms and conditions of the guarantees given by
the Company, for loans taken by others from banks or financial institutions during the year, are not prejudicial to the interest of the
Company.
16. In our opinion, and according to the information and explanations given to us, on an overall basis, the term loans have been applied
for the purposes for which they were obtained.
17. On the basis of an overall examination of the balance sheet of the Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short-term basis which have been used for long-term investment.
18. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under
Section 301 of the Act during the year.
19. The Company has not issued any debentures.
20. The Company has not raised any money by public issues during the year.
21. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance
of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the Management.

For Price Waterhouse

Firm Registration Number: 301112E
Chartered Accountants

Partha Ghosh
Partner
Membership Number: F-55913

Place: Mumbai
Date: 28th May, 2010

ANNUAL REPORT 2009-2010 73

 Balance Sheet

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.

For Price Waterhouse For and on behalf of the Board of Directors

Firm Registration Number: 301112E
Chartered Accountants

Partha Ghosh Glenn Saldanha Cheryl Pinto A. S. Mohanty

Partner Managing Director & CEO Director Director
Membership Number: F-55913

Place: Mumbai Marshall Mendonza

Date: 28th May, 2010 Vice President - Legal & Company Secretary

74 GLENMARK PHARMACEUTICALS LIMITED

Profit and Loss Account

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.

For Price Waterhouse For and on behalf of the Board of Directors

Firm Registration Number: 301112E
Chartered Accountants

Partha Ghosh Glenn Saldanha Cheryl Pinto A. S. Mohanty

Partner Managing Director & CEO Director Director
Membership Number: F-55913

Place: Mumbai Marshall Mendonza

Date: 28th May, 2010 Vice President - Legal & Company Secretary

ANNUAL REPORT 2009-2010 75

 Cash Flow Statement

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)

76 GLENMARK PHARMACEUTICALS LIMITED

Cash Flow Statement

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

Cash and Cash Equivalents as at 31st March, 2009 116,877 111,751

Cash balance transferred to Glenmark Generics Ltd. - (198)

Cash and Cash Equivalents as at 31st March, 2010 50,772 116,877

Cash and Cash Equivalents Comprise:
Cash 1,710 1,045
Deposits with Scheduled banks 14,725 37,382
Deposits with Non-scheduled Banks 113 126
Balance with Scheduled Banks 33,022 76,173
Balance with Non-scheduled Banks 1,202 2,151
50,772 116,877
Notes:
1. The Cash Flow Statement has been prepared under the "Indirect Method" as set out in Accounting Standard - 3 on Cash Flow
Statements issued by the Institute of Chartered Accountants of India.
2. Cash and cash equivalents includes Rs. 3,122 which are not available for use by the Company. (Refer Schedule 13 to the Financial
Statements)
3. Figures in bracket indicate Cash outgo.

This is the Cash Flow Statement referred to in our report of even date.

For Price Waterhouse For and on behalf of the Board of Directors

Firm Registration Number: 301112E
Chartered Accountants

Partha Ghosh Glenn Saldanha Cheryl Pinto A. S. Mohanty

Partner Managing Director & CEO Director Director
Membership Number: F-55913

Place: Mumbai Marshall Mendonza

Date: 28th May, 2010 Vice President - Legal & Company Secretary

ANNUAL REPORT 2009-2010 77

 Schedules annexed to and forming part of the Balance Sheet

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

Issued, Subscribed and Paid-up

269,837,553 (2009 – 250,519,758) Equity Shares of Re. 1 each 269,838 250,520
TOTAL 269,838 250,520
Notes:
1. During the year ended 31st March, 2010 the Company, pursuant to Employee Stock Option Scheme 2003, has granted 236,500
(2009 - 2,305,500) options at market price as defined in SEBI (ESOS) Guidelines and cancelled 601,100 (2009 - 1,697,500) options.
2. During the year 604,860 (2009 - 500,300) options were converted into Equity Shares under the Employee Stock Option Scheme,
2003. As at 31st March, 2010, 2,633,500 options were outstanding under Employee Stock Option Scheme, 2003. On exercise of the
options so granted under Employee Stock Option Scheme 2003, the paid-up Equity Share Capital of the Company will increase by a
like number of shares.
3. During the year, Nil (2009 - 7,500) Zero Coupon Foreign Currency Convertible Bonds (FCCB) of USD 1,000 each aggregating USD Nil
(2009 - USD 7.5 million) were converted into Nil (2009 - 1,293,706) equity shares of Re. 1 each. As at 31st March, 2010, FCC Bonds
amounting to USD 30 million were outstanding.
4. On 18th September, 2009 the Company allotted 18,712,935 Equity Shares of Re. 1 each at a premium of Rs. 220/- per share to Qualified
Institutional Buyers pursuant to chapter VIII of the Securities Exchange Board of India (Issue of Capital and Disclosure Requirement)
Regulation 2009.
5. Of the above 158,371,140 (2009 - 158,371,140) Equity Shares of Re. 1 each are allotted as fully paid-up Bonus Shares by Capitalisation
of Reserves.
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 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 1,429,229 1,299,037
Add: Transferred from Profit and Loss Account 128,463 217,926
Add: Transfer to Fixed assets - 3,915
Less: Transfer from Foreign Currency Monetary Item Translation Difference Account - 91,649
Closing Balance 1,557,692 1,429,229
Foreign Currency Monetary Item Translation Difference Account
Balance at the beginning of the year (246,476) -
Add: FCC Bond and ECB loan unrealised gain/(loss) as per notification issued by 256,318 (391,995)
Ministry of Corporate Affairs
Amortisation of Foreign Currency Monetary Item Translation Difference 26,366 145,519
Closing Balance 36,208 (246,476)
Capital Redemption Reserve 200,000 200,000
Capital Reserve 1,000 1,000
Profit and Loss Account Balance 8,511,122 7,480,978
TOTAL 17,464,316 12,049,185

78 GLENMARK PHARMACEUTICALS LIMITED

Schedules annexed to and forming part of the Balance Sheet

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

5. DEFERRED TAX LIABILITY [Refer Note 1(xi) of Schedule 21]

Depreciation 309,904 297,339
FCC Bond/ECB Loan revaluation 17,809 113,893
TOTAL 327,713 411,232

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.

ANNUAL REPORT 2009-2010 79

 Schedules annexed to and forming part of the Balance Sheet

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)

80 GLENMARK PHARMACEUTICALS LIMITED

Schedules annexed to and forming part of the Balance Sheet

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

9. INVENTORIES [Refer Note 1(vii) and 13(f) of Schedule 21]

(As certified by the management)
Raw Materials 523,450 370,141
Packing Material 154,959 131,119
Work-in-Process 182,197 72,468
Stores and Spares 16,453 13,647
Finished Goods 626,917 715,768
TOTAL 1,503,976 1,303,143

10. SUNDRY DEBTORS [Refer Note 14(c) of Schedule 21]

Outstanding for more than six months
Secured, considered good - -
Unsecured, considered good 2,510,029 1,656,726
Unsecured, considered doubtful 176,098 158,598
2,686,127 1,815,324
Less: Provision for doubtful debts 176,098 158,598
2,510,029 1,656,726
Other debts -
Secured, considered good - -
Unsecured, considered good 790,886 2,441,464
790,886 2,441,464
TOTAL 3,300,915 4,098,190

11. CASH AND BANK BALANCES

Cash in hand 1,710 1,045
Balances with Scheduled banks
- Current Accounts 32,991 76,097
- Margin Money Account 14,725 37,382
- EEFC Account 31 76
Balances with Non-Scheduled Banks
- Current Accounts 1,202 2,151
- Deposit Accounts 113 126
TOTAL 50,772 116,877
The balances in the margin money accounts are given as security against guarantees issued by banks on behalf of the Company.

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

ANNUAL REPORT 2009-2010 81

 Schedules annexed to and forming part of the Balance Sheet

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

13. CURRENT LIABILITIES

Acceptances 494,716 -
Sundry creditors [Refer Note 8 of Schedule 21]
- Total outstanding dues to Micro enterprises and small enterprises - 26,524
- Total outstanding dues to creditors other than Micro enterprises and small enterprises 791,803 1,463,950
Investor Education and Protection Fund shall be credited by
- Unclaimed Dividend 3,122 3,717
[There are no amounts due and outstanding to be credited to Investor Education
and Protection Fund]
Advances from Customer - 46,648
Payable to Subsidiaries [Refer Note 14(d) of Schedule 21] 6,486 120,868
Other Liabilities 157,073 152,337
Interest accrued but not due 449,657 418,511
TOTAL 1,902,857 2,232,555

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

82 GLENMARK PHARMACEUTICALS LIMITED

Schedules annexed to and forming part of the Profit and Loss Account

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.

16. OTHER INCOME

Dividend received on non trade Investments 75 38
Exchange gain - 867,485
Export Incentive 48,574 76,200
Profit on Sale of Fixed Assets - 4,102
Provision for Doubtful Advances Written back 700 -
Guarantee Commission 26,062 29,135
Miscellaneous income 16,486 17,963
TOTAL 91,897 994,923

17. COST OF SALES

Salary, wages, bonus and allowances 143,388 127,402
Contribution to Provident and other funds 5,052 4,238
Labour charges 148,249 152,784
Consumption of raw and packing materials [Refer Note 13(d) and (e) of Schedule 21] 2,002,785 1,678,637
Purchase of Traded goods [Refer note 13(c) of Schedule 21] 841,496 687,227
Excise Duty 75,924 116,132
Sales Tax 388,827 311,401
Power, fuel and water charges 61,239 54,783
Consumption of stores and spares [Refer note 13(e) of Schedule 21] 42,272 43,013
Repairs and maintenance - Plant and Machinery 21,087 14,785
Repairs and maintenance - Building 5,056 2,809
Rent 1,650 -
Other manufacturing expenses 14,363 13,568
(Increase)/Decrease in inventory (20,878) (151,620)
TOTAL 3,730,510 3,055,159

18. SELLING AND OPERATING EXPENSES

Salary, bonus and allowances 888,179 818,658
Contribution to Provident and other funds 41,915 39,821
Staff welfare expenses 34,988 23,206
Directors' salaries, allowances and commission [Refer Note 12 of Schedule 21] 36,613 95,709
Incentive and commission 179,431 120,616
Sales promotion expenses 919,629 556,614
Export commission 34,368 21,360
Commission on sales 44,864 29,590
Travelling expenses 403,386 430,773
Freight outward 165,391 169,819
Telephone expenses 19,247 22,005
Rates and taxes 7,520 6,721
Provision for doubtful debts 17,500 30,000
Insurance premium 17,317 16,234
Electricity charges 15,952 14,529
Rent 87,016 89,831

ANNUAL REPORT 2009-2010 83

 Schedules annexed to and forming part of the Profit and Loss Account

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

19. INTEREST (Net)

On term loans from bank 345,803 150,042
On other loans from bank 650,842 798,092
996,645 948,134
Less: Interest Income
On deposits with banks [tax deducted at source Rs. 247 (2009 - Rs. 653)] 10,258 3,111
On Loans given to Subsidiaries 684,803 393,637
695,061 396,748
TOTAL 301,584 551,386

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

84 GLENMARK PHARMACEUTICALS LIMITED

Schedules annexed to and forming part of the Financial Statements

SCHEDULE 21 - NOTES TO THE FINANCIAL STATEMENTS

1. SIGNIFICANT ACCOUNTING POLICIES
i) Basis of Accounting
The Financial Statements are prepared to comply in all material aspects with all the applicable accounting principles in India,
the applicable Accounting Standards notified u/s 211(3C) of the Companies Act,1956 and the relevant provisions of the
Companies Act,1956.
ii) Fixed Assets (including Intangibles), Depreciation and Amortisation
Fixed assets are stated at cost less accumulated depreciation and amortisation. The Company 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 Company 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 Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such
indication exist, the Company 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 on 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.

ANNUAL REPORT 2009-2010 85

 Schedules annexed to and forming part of the Financial Statements

ix) Revenue Recognition

The Company recognizes 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.
x) Research and Development
Capital expenditure on Research and Development (R & D) is capitalised as fixed assets. Development cost relating to the new
and improved product and/or process development is recognised as an intangible asset to the extent that it is expected that
such asset will generate future economic benefits. Other research and development costs are expensed as incurred.
xi) Taxation
Current Tax
Current tax is determined as the amount of tax payable in respect of taxable income for the year.
Deferred Tax
Deferred tax is recognised, subject to the consideration of prudence, on timing differences being the difference between
taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent
period. Deferred tax assets are not recognised on unabsorbed depreciation and carry forward of losses unless there is virtual
certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.
Deferred tax assets/liabilities recognised as above is after excluding the amounts, which are getting reversed during the tax
holiday period.
xii) Leases
Finance Leases
Assets acquired under finance lease are recognised as assets with corresponding liabilities in the Balance Sheet at the inception
of the lease at amounts equal to lower of the fair value of the leased asset or at the present value of the minimum lease
payments. These leased assets are depreciated in line with the Company’s policy on depreciation of fixed assets. The interest is
allocated to periods during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the
liability for each period.
Operating Leases
Lease rent in respect of assets taken on operating lease are charged to the Profit and Loss Account as per the terms of lease
agreements.
xiii) Employee Stock Option Schemes (ESOS)
The Company accounts for compensation expense under the Employee Stock Option Schemes using the intrinsic value
method as permitted by the Guidance Note on "Accounting for Employee Share-based Payments" issued by the Institute of
Chartered Accountants of India. The difference between the market price and the exercise price as at the date of the grant is
treated as compensation expense and charged over the vesting period.
xiv) Provisions and Contingent Liabilities
The Company recognises a provision when there is a present obligation as a result of a past event that probably requires an
outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability
is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of
resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no
provision or disclosure is made.
2. As per the transitional provision given in the notification issued by Ministry of Corporate Affairs dated 31st March, 2009 the Company
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, Company 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, Company has transferred exchange
gain of Rs. 2,563.18 lakhs on restatement of long-term loans. Accordingly, Proportionate amount of Rs. 263.66 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. 1,988.50 lakhs (net of tax).

3. CONTINGENT LIABILITIES NOT PROVIDED FOR

Rs. in (‘000s)
31st March, 2010 31st March, 2009
(a) Bank Guarantees 20,768 21,671
Disputed Income Tax/Excise Duty/Sales Tax 26,765 27,285
Claims against the Company not acknowledged as debts (Refer Note i) 386 380
Open letters of credit 5,274 -
Sundry debtors factored with recourse option (Refer Note ii) 3,500,000 2,800,000
Indemnity Bond 345,366 331,876
Call money payable to Glenmark Pharmaceuticals (Thailand) Co. Ltd.
(16,415 shares @ 50 THB per Ordinary Share) 1,149 -
Corporate Guarantee (Refer Note iii) 8,283,012 7,974,112
Corporate Guarantee (Refer Note iv) 1,218,780 1,376,460

86 GLENMARK PHARMACEUTICALS LIMITED

Schedules annexed to and forming part of the Financial Statements

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)

ANNUAL REPORT 2009-2010 87

 Schedules annexed to and forming part of the Financial Statements

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

88 GLENMARK PHARMACEUTICALS LIMITED

Schedules annexed to and forming part of the Financial Statements

Glenmark Philippines Inc., Philippines

Glenmark Pharmaceuticals (Nigeria) Ltd., Nigeria
Glenmark Pharmaceuticals S.A., Switzerland
Glenmark Pharmaceuticals Malaysia Sdn. Bhd., Malaysia
Glenmark Pharmaceuticals (Australia) Pty. Ltd., Australia
Glenmark Impex L.L.C., Russia
Glenmark Holding S.A., Switzerland
Glenmark Generics Ltd., India
Glenmark Pharmaceuticals Venezuela., C.A., Venezuela
Glenmark Pharmaceuticals South Africa (Pty.) Ltd., South Africa
Glenmark Dominicana SRL, Dominican Republic
c) Key management personnel
Mr. Gracias Saldanha
Mrs. B.E. Saldanha
Mr. Glenn Saldanha
Mrs. Cheryl Pinto
Mr. A.S. Mohanty
d) Transactions with related parties during the year
Rs. in (‘000s)
2009-2010 2008-2009
Subsidiary Company
1. Sale of Finished Products & Services 1,101,531 1,314,750
Glenmark Exports Ltd., India - 353,098
Glenmark Pharmaceuticals S.A., Switzerland 461,465 523,189
Glenmark Farmaceutica Ltda., Brazil 87,689 65,611
Glenmark Pharmaceuticals Inc., Philippines 41,687 22,737
Glenmark Impex L.L.C., Russia 481,562 304,968
Glenmark Generics Ltd., India 249 22,400
Glenmark Pharmaceuticals (Nigeria) Ltd., Nigeria 23,055 22,747
Glenmark Pharmaceuticals South Africa (Pty) Ltd., South Africa 395 -
Glenmark Pharmaceuticals Venezuela., C.A., Venezuela 5,429 -
2. Purchase of Finished Products & Services 220,925 295,511
Glenmark Generics Ltd., India 217,065 295,511
Glenmark Generics S.A., Argentina 3,860 -
3. Investment in Share Capital 7,552,874 789,315
Glenmark Philippines Inc., Philippines 28,804 36,689
Glenmark Pharmaceuticals Malaysia Sdn. Bhd., Malaysia 1,309 3,846
Glenmark Pharmaceuticals (Nigeria) Ltd., Nigeria 35,274 -
Glenmark Impex L.L.C., Russia 289,992 291,793
Glenmark Pharmaceuticals (Australia) Pty. Ltd., Australia 4,313 60,734
Glenmark Pharmaceuticals Egypt S.A.E., Egypt 40,960 1,980
Glenmark Pharmaceuticals (Thailand) Co. Ltd., Thailand 1,160 1,348
Glenmark Pharmaceuticals FZE., (U.A.E.) - 12,925
Glenmark Generics Ltd., India 7,151,000 380,000
Glenmark Dominicana SRL, Dominican Republic 62 -
4. Share Application Money - 10,299
Glenmark Pharmaceuticals Egypt S.A.E., Egypt - 10,299
5. Sale of Business to - 7,500,000
Glenmark Generics Ltd., India - 7,500,000
6. Sale of Fixed Assets to 19,150 94,268
Glenmark Pharmaceuticals S.A., Switzerland 755 6,349
Glenmark Generics Ltd., India 18,395 87,919

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 Schedules annexed to and forming part of the Financial Statements

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 -

Key management personnel

Remuneration 36,073 95,429
Mr. Gracias Saldanha 120 25,882
Mrs. B. E. Saldanha 60 40
Mr. Glenn Saldanha 18,282 34,093
Mrs. Cheryl Pinto 9,409 15,011
Mr. R. V. Desai (resigned from the board effective from - 9,190
1st April, 2009)
Mr. A. S. Mohanty 8,202 11,213

90 GLENMARK PHARMACEUTICALS LIMITED

Schedules annexed to and forming part of the Financial Statements

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

ANNUAL REPORT 2009-2010 91

 Schedules annexed to and forming part of the Financial Statements

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.

92 GLENMARK PHARMACEUTICALS LIMITED

Schedules annexed to and forming part of the Financial Statements

12. MANAGERIAL REMUNERATION

Rs. in (‘000s)
2009-2010 2008-2009
(a) Paid/payable to directors*
Salaries, Perquisites & Other benefits 23,821 53,060
Commission (Previous period amount includes commission Payable to 957 27,766
Non-executive director @ 1% of Profit computed under Section 349).
Sitting Fees 720 350
Contribution to Provident Fund & Superannuation Fund 11,115 14,533
36,613 95,709
Name of Directors
1. Mr. Gracias Saldanha 120 25,882
2. Mrs. B. E. Saldanha 60 40
3. Mr. Glenn Saldanha 18,282 34,093
4. Mrs. Cheryl Pinto 9,409 15,011
5. Mr. R. V. Desai (resigned from the board effective from 1st April, 2009) - 9,190
6. Mr. A. S. Mohanty 8,202 11,213
7. Other Directors 540 280
* Excludes contributions to Gratuity and Leave Encashment Fund, which is
based on actuarial valuation.
(b) Computation of net profits in accordance with Section 349 and Section 309(5)
of the Companies Act, 1956.
Profit before taxation as per Statement of Profit and Loss 1,210,138 2,460,719
Add: Depreciation as per Statement of Profit and Loss 212,778 191,045
Loss on sale of Generic business - 2,980
Provision for Doubtful Debts 17,500 30,000
1,440,416 2,684,744
Less: Depreciation calculated under Section 350 of the Companies Act, 1956 212,778 191,045
Profit on sale of assets - 4,212
Net profit in accordance with Section 349 1,227,638 2,489,487
Add: Managerial remuneration paid/payable to directors 36,613 95,709
Net profit in accordance with Section 309(3) of the Companies Act, 1956 1,264,251 2,585,196
Maximum managerial remuneration allowed under Section 198 of the Companies
Act, 1956, 11 per cent of the above 139,068 284,372

13. CAPACITY, PRODUCTION, SALES AND STOCKS

(a) Capacities and actual production (including samples)
Class of goods UoM Installed Capacity Actual Production
2009-2010 2008-2009 2009-2010 2008-2009
Injections Ltrs - - 210,901 192,422
Liquid Orals Ltrs 12,036,666 8,166,666 4,175,057 5,002,682
Lotions and Externals Ltrs 2,367,500 626,250 708,052 511,193
Ointments and Creams Kgs 4,357,500 1,087,500 834,457 631,728
Solids and Powders Kgs 113,000 113,000 311,173 231,673
Tablets and Capsules Nos 1,182,950,000 1,180,800,000 784,299,349 752,893,839
Others - - 132,131 343,864
Notes:
i) The products of the Company are exempt from licencing procedures.
ii) Installed capacity, being a technical matter, has not been verified by the auditors. However, the management has certified
the same.
iii) Actual production includes goods manufactured at third party manufacturing facilities on loan licence basis and at
leased facilities.

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 Schedules annexed to and forming part of the Financial Statements

(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.

(c) Finished goods purchased (includes samples)

Class of goods UoM 2009-2010 2008-2009
Qty Value Qty Value
Rs. in ('000s) Rs. in ('000s)
Injectibles Ltrs 151,626 241,784 83,444 151,925
Liquid Orals Ltrs 137,390 45,539 176,880 52,408
Lotions and Externals Ltrs 100,869 41,752 249,752 115,818
Ointments and Creams Kgs 17,347 16,792 48,343 20,884
Solids and Powders Kgs - - - -
Tablets and Capsules Nos 322,750,466 436,830 105,128,406 345,779
Others - 58,799 - 413
TOTAL 841,496 687,227

(d) Raw and packing materials consumed

Products 2009-2010 2008-2009
Qty Value Qty Value
in kgs Rs. in ('000s) in kgs Rs. in ('000s)
Telmisartan BP 7,363 95,306 - -
Sugar S/30 Ih 1,461,206 49,841 1,862,804 35,153
Mupirocin Usp 316 49,087 268 39,074
100ML Amber Pet Bottles (25 mm Neck) 28,442,845 46,044 30,532,524 49,293
Propylene Glycol IP 366,813 33,319 - -
Lornoxicam IH 295 33,214 326 41,144
Eplerenone 101 31,604 84 33,632
Levofloxacin Hemihydrate IP 11,537 31,353 10,910 42,671
Miglitol IH 479 31,290 455 34,018
Linezolid IH 1,560 31,205 1,242 25,134
Others 1,570,522 1,378,518
TOTAL 2,002,785 1,678,637

94 GLENMARK PHARMACEUTICALS LIMITED

Schedules annexed to and forming part of the Financial Statements

(e) Break-up of Materials and Consumable stores consumed

2009-2010 2008-2009
Value Per cent Value Per cent
Rs. in ('000s) Rs. in ('000s)
Materials
Imported materials 76,623 3.83 143,370 8.54
Indigenously procured 1,926,162 96.17 1,535,267 91.46
2,002,785 100.00 1,678,637 100.00
Consumable stores and spares
Imported - - - -
Indigenously procured 42,272 100.00 43,013 100.00
42,272 100.00 43,013 100.00

(f) Inventories of finished goods (manufactured and traded)

Opening Stock Closing Stock
2009-2010 2008-2009 2009-2010 2008-2009
Class of goods UoM Qty Value Qty Value Qty Value Qty Value
Rs. in (‘000s) Rs. in (‘000s) Rs. in (‘000s) Rs. in (‘000s)
Injectibles Ltrs 55,583 64,554 34,668 44,877 57,315 85,396 55,583 64,554
Liquid Orals Ltrs 719,115 96,640 394,256 61,613 566,946 63,978 719,115 96,640
Lotions and Externals Ltrs 190,778 59,852 136,458 38,028 154,111 51,401 190,778 59,852
Ointments and Creams Kgs 134,285 100,676 78,975 84,389 113,959 73,922 134,285 100,676
Solids and Powders Kgs 55,170 11,513 21,523 5,974 49,405 10,797 55,170 11,513
Tablets and Capsules Nos 207,546,567 378,131 163,171,004 427,357 190,372,456 233,737 207,546,567 378,131
Bulk Drugs Kgs - - 3,067 58,157 - - - -
Others - 4,402 - 25,216 - 107,686 - 4,402
TOTAL 715,768 745,611 626,917 715,768

14. SUBSIDIARY COMPANIES Rs. in (‘000s)

Maximum amount outstanding
during the year As at
2009-2010 2008-2009 31st March, 2010 31st March, 2009
a) Loans and Advances to Subsidiaries
Glenmark Pharmaceuticals S.A., Switzerland 953,721 553,244 911,657 553,244
Glenmark Holding S.A., Switzerland 8,204,910 5,519,683 7,422,429 5,519,683
Glenmark Farmaceutica Ltda., Brazil 2,746 4,935 2,411 2,988
Glenmark Pharmaceuticals (Nigeria) Ltd., Nigeria 39,141 36,711 31,746 36,711
Glenmark Impex L.L.C., Russia 156,708 156,708 138,756 156,708
Glenmark Generics Ltd., India 52,754 533,427 - 380,220
Glenmark Pharmaceuticals Egypt S.A.E., Egypt 6,962 - - -
Glenmark Generics SA., Argentina 2,219 399 1,091 -
8,508,090 6,649,554
b) Interest-bearing loans to Subsidiary Companies
Glenmark Holding S.A., Switzerland. 8,112,070 4,836,426 7,011,506 4,836,426
Glenmark Pharmaceuticals (Nigeria) Ltd., Nigeria 31,226 26,757 29,341 26,757
Glenmark Impex L.L.C., Russia 144,117 137,358 135,417 137,358
Glenmark Pharmaceuticals Egypt S.A.E., Egypt 6,747 - - -
Glenmark Generics Ltd., India 344,327 523,500 - 344,327

c) Receivable from Subsidiary Companies

Glenmark Pharmaceuticals S.A., Switzerland 6,781 5,969
Glenmark Farmaceutica Ltda., Brazil 61,217 33,649
Glenmark Pharmaceuticals (Nigeria) Ltd., Nigeria 15,493 25,088
Glenmark Philippines Inc., Philippines 18,085 24,505
Glenmark Impex L.L.C., Russia 349,863 320,800
Glenmark Exports Ltd., India 159,479 661,603
Glenmark Pharmaceuticals South Africa (Pty) Ltd., 395 -
South Africa
Glenmark Pharmaceuticals Venezuela., C.A., Venezuela 5,303 -

d) Payable to Subsidiaries
Glenmark Pharmaceuticals FZE., U.A.E. 6,486 -
Glenmark Generics Ltd., India - 120,868

ANNUAL REPORT 2009-2010 95

 Schedules annexed to and forming part of the Financial Statements

e) Movement of shares during the year

No. of Shares in ('000)
As at Invested during Sale during Balance
1st April, 2009 the Year the Year as at 31st
March, 2010
Investments in Subsidiary Companies - Unquoted
- non-trade
Glenmark Impex L.L.C., Russia 266,741 188,961 - 455,702
Glenmark Philippines Inc., Philippines 497 143 - 640
Glenmark Pharmaceuticals (Nigeria) Ltd., Nigeria 157,116 110,417 - 267,533
Glenmark Pharmaceuticals Malaysia Sdn. Bhd., Malaysia 1,108 93 - 1,201
Glenmark Generics Ltd., India 71,700 71,510 - 143,210
Glenmark Pharmaceuticals (Australia) Pty Ltd., Australia 1,861 115 - 1,976
Glenmark Pharmaceuticals Egypt S.A.E., Egypt 250 4,725 - 4,975
Glenmark Dominicana, SRL, Dominican Republic* 0* 0* - 0*
Investment in Joint Venture
Glenmark Pharmaceuticals (Thailand) Co. Ltd.
- Ordinary shares (Paid-Up 50 THB) - 16 - 16
* number less than 1,000

15. FOREIGN CURRENCY CONVERTIBLE BOND ISSUED

A) The Company had issued 30,000 Zero Coupon Foreign Currency Convertible Bonds of USD 1,000 each (Rs. 1,331,700 at issue)
(i) Convertible at the option of the bondholder at any time on or after 11th November, 2007 but 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 on or after 10th January, 2010 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 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, 30,000 FCC bonds (2009-30,000) of USD 1,000 each aggregating to USD 30 million are outstanding.
B) The Company had issued 20,000 Zero Coupon Foreign Currency Convertible Bonds of USD 1,000 each (Rs. 873,200 at issue)
(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. 215.60 (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,
1,000 FCC Bonds of USD 1,000 each aggregating to USD 1 Million were redeemed on 16th February, 2010 on maturity.
As of 31st March, 2010, NIL FCC Bonds (2009 -1,000) of USD 1,000 each are outstanding.
C) The Company had issued 50,000 Zero Coupon Foreign Currency Convertible Bonds of USD 1,000 each (Rs. 2,183,000 at issue)
(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,
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 - 5,000) of USD 1,000 each are outstanding.

96 GLENMARK PHARMACEUTICALS LIMITED

Schedules annexed to and forming part of the Financial Statements

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)

17. VALUE OF IMPORTS ON CIF BASIS

Capital Goods 77,916 182,620
Materials 150,438 114,254
228,354 296,874
18. EARNINGS IN FOREIGN CURRENCY
Export of goods calculated on FOB basis 2,649,149 2,068,524
Guarantee Commission 26,062 29,135
Interest on loan to subsidiaries 278,254 136,067
2,953,465 2,233,726
19. EXPENDITURE IN FOREIGN CURRENCY
Travelling expenses 45,561 52,231
Professional and Consultancy charges 36,940 19,756
Export promotional expenses and export commission 132,000 114,164
Salary and related expenses 99,650 115,908
Product registration expenses 47,584 36,892
Interest expenses 12,881 29,983
Others 222,218 159,216
596,834 528,150
20. DIVIDEND REMITTANCE IN FOREIGN CURRENCY
Number of Non-resident Shareholders 22 -
Number of Equity Shares held by them 163,240 -
Amount of dividend paid (Gross), TDS Rs. Nil (2009 – Rs. Nil) 65 -
Year to which dividend relates 2008-2009 -

21. PRIOR YEAR COMPARATIVES

Prior year's figures have been regrouped or reclassified wherever necessary to confirm to current year's classification.

Signatures to the Schedules 1 to 21 which form an integral part of the Financial Statements.

For Price Waterhouse For and on behalf of the Board of Directors

Firm Registration Number: 301112E
Chartered Accountants

Partha Ghosh Glenn Saldanha Cheryl Pinto A. S. Mohanty

Partner Managing Director & CEO Director Director
Membership Number: F-55913

Place: Mumbai Marshall Mendonza

Date: 28th May, 2010 Vice President - Legal & Company Secretary

ANNUAL REPORT 2009-2010 97

 Additional information as required under Part IV of Schedule VI to the Companies Act, 1956.
Balance Sheet Abstract & Company’s General Business Profile

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

98 GLENMARK PHARMACEUTICALS LIMITED

 Statement Pursuant to Section 212 of the Companies Act, 1956.
Relating to Company’s interest in Subsidiary Companies;
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

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

ANNUAL REPORT 2009-2010

the holding
company’s
subsidiaries

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

GLENMARK PHARMACEUTICALS LIMITED

8. Reserves 7,378 8,963,094 1,027,523 2,359,465 (124,348) (27,778) 742,501 (30,001) (122) (13,259) 1,182,314 (50,209) (185,982) (64,274) (4,598) 7,759,756 1,098,332 (150,075) (53,290) (751,045) 137,528 (24,150) (123) (16,877) (29,915) (21,108) 74,610 1,648 (111,087) (36,038) (3,110) 1,889 (1,889)

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

For and on behalf of the Board of Directors

Glenn Saldanha Cheryl Pinto A. S. Mohanty

Managing Director & CEO Director Director

Place: Mumbai Marshall Mendonza

Date: 28th May, 2010 Vice President - Legal & Company Secretary