Annual Report - Glenmark

Glenmark Pharmaceuticals Limited
Figures in Rs. /Mn.
Head 2004-05 2003-04 2002-03 2001-02 2000-01
Interest 167.31 100.58 106.88 129.13 83.23
EBITDA 1186.50 734.89 645.43 502.13 320.33
Interest cover [times] 7.09 7.31 6.04 3.89 3.85
Research and Development
Expenses
The Research and Development
expenditure was Rs. 325.82 million in
2004-05 compared with Rs. 248.07
million in 2003-04, a rise of 31.34
percent. The R&D revenue expenditure
was 6.07 percent of the turnover in
2004-05 compared with 6.52% in 2003-
04. The increase was in line with the
growth of the R&D staff strength and
increase in research activity. The
detailed break up of the R&D
expenditure is as below:
Figures in Rs. /Mn.
Head March 2005 March 2004
Salaries and other benefits 124.77 78.48
Chemicals and consumables 85.64 80.56
Other expenses 115.41 89.03
325.82 248.07
Provision for Taxation
The taxation charge for the financial
year 2004-05 was Rs. 143.28 million
compared with Rs. 90.30 million in 2003-
04.
Provision for Deferred
Taxation
A provision for deferred tax of Rs. 91.27
million was made as per Accounting
Standard 22 'Accounting for Taxes on
Income' issued by the Institute of
Chartered Accountants of India. The
deferred tax provision for the future tax
consequences was attributable to
timing differences between the financial
statement, determination of income,
and its recognition for tax purposes.
Dividend
The Company paid an interim dividend
of 35 percent on the enhanced equity
capital after issue of bonus shares of 1:1
for 2004-05 and a dividend of 7 percent
on preference shares.
Equity Capital
The equity capital has been increased
from Rs.118.49 million in 2003-04 to Rs.
237.24 million in FY 2004-05 due to
allotment of 59,310,570 equity shares of
Rs. 2.00 each by way of bonus shares
and conversion of 65,000 stock options
into equity shares of Rs. 2.00 each.
Preference Shares
The Company has redeemed 1,000,000
preference shares of Rs. 100.00 each
issued to UTI Bank Ltd. and issued
2,000,000, 7 percent preference shares
of Rs. 100.00 each to IDBI Bank.
Securities Premium Account
Securities premium account has been
decreased to Rs. 758.69 million from Rs.
991.97 million mainly due to debit of
the FCCB issue expenses and
redemption premium of Rs. 116.92
million and issue of bonus shares of Rs.
118.62 million.
General Reserves
The general reserves increased from Rs.
610.77 million to Rs. 705.69 million due
to transfer of Rs. 65 million from the
Profit & Loss Account and Rs. 29.92
million from Debenture Redemption
Reserves Account.
Profit and Loss Account
The balance of Profit and Loss Account
has been increased from Rs. 496.94
million to Rs. 964.08 million on account
of the profit earned during the year.
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Annual Report 2004-2005