We have audited the accompanying standalone financial
statements of Glenmark Pharmaceuticals Limited ('the
Company'), which comprise the Balance Sheet as at 31 March
2025, the Statement of Profit and Loss (including other
comprehensive income), the Statement of Cash Flows and
the Statement of Changes in Equity for the year then ended,
and a summary of the material accounting policies and
other explanatory information (hereinafter referred to as the
"standalone financial statements").
In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid standalone
financial statements give the information required by the
Companies Act, 2013 ('the Act') in the manner so required and
give a true and fair view in conformity with the accounting
principles generally accepted in India including Indian
Accounting Standards ('Ind AS') prescribed under Section
133 of the Act, of the state of affairs of the Company as at
31 March 2025, and its profit (including other comprehensive
income), its cash flows and the changes in equity for the year
ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements
in accordance with the Standards on Auditing (SAs) specified
under Section 143(10) of the Act. Our responsibilities under
those standards are further described in the 'Auditor's
Responsibilities for the Audit of the Standalone Financial
Statements' section of our report. We are independent of the
Company in accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India ('ICAI') together
with the ethical requirements that are relevant to our audit
of the standalone financial statements under the provisions
of the Act and the rules thereunder, and we have fulfilled
our other ethical responsibilities in accordance with these
requirements and the Code of Ethics. We believe that the
audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion on the standalone financial
statements.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the
standalone financial statements for the year ended 31 March
2025. These matters were addressed in the context of our
audit of the standalone financial statements as a whole, and
in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
We have determined the matters described below to be the key audit matters to be communicated in our report.
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Key audit matter
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How our audit addressed the key audit matter
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Impairment of investments in and loss allowances of loans
given to subsidiaries [Refer note 5(i)(A)(a) and 5(ii) of the
standalone financial statements]
As at 31 March 2025, the Company has investments in
subsidiaries of ' 151,385.54 million (net of provision for
impairment) and has loans to subsidiaries of ' 57,542.54
million.
Investments in subsidiaries are accounted for at cost less
impairment loss, if any. Loans given to subsidiaries are
measured at amortised cost.
Loans are assessed for loss allowances and investments are
assessed for impairment annually or earlier if indicator exists.
If indicators exist, the loss allowances of loans and impairment
of the investments are estimated in order to determine the
extent of loss allowances and impairment losses, if any. Any
such losses are recognised in Statement of Profit and Loss.
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Our audit included, but was not limited to, the following
procedures:
• Assessed the appropriateness of accounting policy in
respect of impairment and loss allowances in accordance
with Ind AS.
• Obtained understanding of management's process
for loss allowances and for identification of indicators
of impairment. Evaluated the design and tested the
operating effectiveness of internal controls over loss
allowances and impairment assessment process.
• With the assistance of our internal valuation specialists
evaluated the reasonableness of the valuation
methodologies and discount rates used by the
management to determine the recoverable values.
• Evaluated the reasonableness of the management's
estimates and judgement based on our understanding
of the business of the respective subsidiaries, past
results and external factors.
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Key audit matter
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How our audit addressed the key audit matter
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Management judgement is required in assessing impairment
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• Tested the mathematical accuracy of the management
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indicators and recoverable amount for impairment testing.
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workings with regard to cash flows, sensitivity analysis
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The recoverable amounts have been determined by the
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and loss allowances.
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management using discounted cash flow valuation method.
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• Performed sensitivity analysis around aforesaid key
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Key assumptions underpinning management's assessment
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assumptions to assess the effect of reasonably possible
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of the recoverable amounts include but are not limited to
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variations on the estimated recoverable amounts of
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projection of future cash flows, revenue growth rates, terminal
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investments in and loans receivable from respective
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values operating profit margins, estimated future operating
capital expenditure, external market conditions and discount
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subsidiaries.
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rates.
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Changes to these assumptions could lead to material
changes in estimated recoverable amounts, resulting in either
impairment or reversals of impairment taken in prior years.
We determined impairment of investments in and loss
allowances of loans given to subsidiaries as a key audit matter
since these assessments are complex and involve significant
management estimation and judgement.
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Litigations
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Our audit included, but was limited to the following
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[Refer note 30 of the standalone financial statements]
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procedures:
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The Company is involved in various legal proceedings including
product liability, contracts, employment claims, and other
regulatory matters relating to the conduct of its business.
The Company assesses the need to make provision or to
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• Evaluated the design and tested the operating
effectiveness of controls in respect of the identification
and evaluation of litigations, the recording /
reassessment of the related liabilities, provisions, and
disclosures.
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disclose contingent liability on a case-to-case basis considering
the underlying facts of each litigation.
The eventual outcome of the litigations is uncertain
and estimation at balance sheet date involves extensive
judgement of management including input from legal counsel
due to complexity of each litigation. Adverse outcomes could
significantly impact on the Company's reported results and
balance sheet position.
Considering the judgement involved in determining the need
to make a provision or disclose as contingent liability, the
matter is considered a key audit matter.
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• Obtained a list of litigations from the Company's in¬
house legal counsel; identified material litigations from
the aforementioned list and performed inquiries with
the said counsel; obtained and read the underlying
documents to assess the assumptions used by
management in arriving at the conclusions.
• Circulated, obtained, and read legal confirmations from
Company's external legal counsels in respect of material
litigation and considered that in our assessment.
• Verified the disclosures related to provisions and
contingent liabilities in the standalone Ind AS financial
statements to assess consistency with underlying
documents.
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Information other than the Financial Statements and Auditor's Report thereon
The Company's Board of Directors is responsible for the other information. The other information comprises the information
included in the Annual Report but does not include the standalone financial statements and our auditor's report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the standalone financial statements, or our
knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we
conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing
to report in this regard.
Management's and Board of Directors' Responsibilities for the Standalone Financial Statements
The Company's Management and Board of Directors are responsible for the matters stated in Section 134(5) of the Act with
respect to the preparation of these standalone financial statements that give a true and fair view of the financial position,
financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance
with the accounting principles generally accepted in India,
including the Indian Accounting Standards (Ind AS) specified
under Section 133 of the Act. This responsibility also includes
maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding of the assets of
the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate
accounting policies; making judgements and estimates that
are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant to the
preparation and presentation of the financial statements
that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the
Management and the Board of Directors are responsible for
assessing the Company's ability to continue as a going concern
disclosing as applicable, matters related to going concern and
using the going concern basis of accounting unless the Board
of Directors either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the
Company's financial reporting process.
Auditor's Responsibilities for the Audit of the
Standalone Financial Statements
Our objectives are to obtain reasonable assurance about
whether the standalone financial statements as a whole
are free from material misstatement, whether due to fraud
or error, and to issue an auditor's report that includes our
opinion. Reasonable assurance is a high level of assurance
but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic
decisions of users taken on the basis of these standalone
financial statements.
As part of an audit in accordance with SAs, we exercise
professional judgement and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement
of the standalone financial statements, whether due to
fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or
the override of internal control.
• Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances. Under Section 143(3)
(i) of the Act, we are also responsible for expressing our
opinion on whether the Company has in place adequate
internal financial controls with reference to standalone
financial statements and the operating effectiveness of
such controls.
• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by the Management and
the Board of Directors.
• Conclude on the appropriateness of the Management's
and the Board of Directors' use of the going concern
basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related
to events or conditions that may cast significant doubt
on the Company's ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor's report to the
related disclosures in the standalone financial statements
or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor's report. However,
future events or conditions may cause the Company to
cease to continue as a going concern.
• Evaluate the overall presentation, structure, and content
of the standalone financial statements, including the
disclosures, and whether the standalone financial
statements represent the underlying transactions and
events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the
standalone financial statements that, individually or in
aggregate, makes it probable that the economic decisions of
a reasonably knowledgeable user of the standalone financial
statements may be influenced. We consider quantitative
materiality and qualitative factors in (i) planning the scope of
our audit work and in evaluating the results of our work; and
(ii) to evaluate the effect of any identified misstatements in
the standalone financial statements.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the standalone financial statements
of the current period and are therefore the key audit matters.
We describe these matters in our auditor's report unless law
or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory
Requirements
1. As required by the Companies (Auditor's Report) Order,
2020 ('the Order') issued by the Central Government of
India in terms of Section 143(11) of the Act, we give in
the "Annexure A" a statement on the matters specified
in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, based on our
audit, we report that:
a) We have sought and obtained all the information
and explanations which to the best of our knowledge
and belief were necessary for the purpose of our
audit of the accompanying standalone financial
statements;
b) In our opinion, proper books of account as required
by law have been kept by the Company so far as
it appears from our examination of those books,
except for the matter stated in the paragraph 3(vi)
below on reporting under Rule 11(g);
c) The balance sheet, statement of profit and
loss (including other comprehensive income),
statement of cash flows and statement of changes
in equity dealt with by this report are in agreement
with the books of account;
d) In our opinion, the aforesaid standalone financial
statements comply with Ind AS specified under
Section 133 of the Act;
e) On the basis of the written representations
received from the directors and taken on record
by the Board of Directors, none of the directors
is disqualified as on 31 March 2025 from being
appointed as a director in terms of Section 164(2)
of the Act;
f) With respect to adequacy of internal financial
controls with reference to standalone financial
statements of the Company and the operating
effectiveness of such controls, refer our separate
report in Annexure B. Our report expresses an
unmodified opinion on the adequacy and operating
effectiveness of the Company's internal financial
controls with respect to standalone financial
statements; and
g) The modification relating to the maintenance of
accounts and other matters connected therewith
are stated in paragraph (b) above on reporting
under Section 143(3)(b) and paragraph 3(vi) below
on reporting under Rule 11(g).
3. With respect to the other matters to be included
in the Auditor's Report in accordance with rule 11
of the Companies (Audit and Auditors) Rules, 2014
(as amended), in our opinion and to the best of our
information and according to the explanations given to
us:
i. The Company has disclosed the impact of pending
litigations as at 31 March 2025 on its financial
position in its standalone financial statements
- refer Note 30 (i) to the standalone financial
statements.
ii. The Company did not have any long-term contracts
including derivative contracts for which there were
any material foreseeable losses.
iii. There has been no delay in transferring amounts,
required to be transferred, to the Investor
Education and Protection Fund by the Company
during the year ended 31 March 2025.
iv. a) The Management has represented that, to
the best of its knowledge and belief no funds
have been advanced, loaned, invested by the
Company to or in any other person or entity,
including foreign entities ("Intermediaries"),
with the understanding, whether recorded in
writing or otherwise, that the Intermediary
shall, whether, directly or indirectly lend or
invest in other persons or entities identified
in any manner whatsoever by or on behalf
of the Company ("Ultimate Beneficiaries") or
provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.
b) The Management has represented that, to
the best of its knowledge and belief, no funds
have been received by the Company from any
person or entity, including foreign entities
("Funding Parties"), with the understanding,
whether recorded in writing or otherwise,
that the Company shall, whether, directly or
indirectly, lend or invest in other persons or
entities identified in any manner whatsoever
by or on behalf of the Funding Party ("Ultimate
Beneficiaries") or provide any guarantee,
security or the like on behalf of the Ultimate
Beneficiaries.
c) Based on audit procedures that has been
considered reasonable and appropriate in
the circumstances, nothing has come to our
notice that has caused us to believe that the
representations under sub-clause (i) and (ii) of
Rule 11(e), as provided under sub clause (a) &
(b) above, contain any material misstatement.
v. The final dividend proposed for the previous year,
declared, and paid by the Company during the year is in
accordance with Section 123 of the Act, as applicable.
As stated in Note 36 to the financial statements, the
Board of Directors of the Company have proposed final
dividend for the year which is subject to the approval of
the members at the ensuing Annual General Meeting.
The dividend declared is in accordance with Section
123 of the Act to the extent it applies to declaration of
dividend.
vi. Based on our examination which included test checks and
in accordance with requirements of the Implementation
Guide on Reporting on Audit Trail under Rule 11(g) of
the Companies (Audit and Auditors) Rules, 2014, except
for the instances mentioned below, the Company has
used accounting softwares for maintaining its books of
account, which have a feature of recording audit trail
(edit log) facility and the same has operated throughout
the year for all relevant transactions recorded in the
respective softwares:
(a) The feature of recording audit trail (edit log) facility
was not enabled at the database layer to log any
direct data changes for the accounting software.
(b) We are unable to comment if the audit trail (edit
log) facility was enabled at the database layer to
log any direct data changes in respect of secondary
software used by Warehouse Partner for recording
Sales in absence of independent auditor's report
in relation to controls at the third-party service
provider.
Further, where audit trail (edit log) facility was
enabled and operated throughout the year, we did
not come across any instance of audit trail feature
being tampered with during the course of our audit.
Additionally, the audit trail has been preserved by
the Company as per the statutory requirements for
record retention.
4. With regards to the other matters to be included in the
Auditor's Report in accordance with the requirement of
Section 197(16) of the Act, as amended in our opinion
and to the best of our information and according to
the explanations given to us, the remuneration paid/
provided by the Company to its directors during the
current year is in accordance with the provisions of
Section 197 of the Act.
For Suresh Surana & Associates LLP
Chartered Accountants
Firm's Registration No.: 121750W / W100010
Vinodkumar Varma
Partner
Membership No. 105545
UDIN: 25105545BMNVNT1750
Place: Mumbai
Date: 23 May 2025
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