Page 78 - GlaxoSmithKline Pharmaceuticals AR 2012

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Notes to the Consolidated Financial Statements for the year
ended 31st December, 2012
1A GROUP INFORMATION
GlaxoSmithKline Pharmaceuticals Limited ('the Company') is a public limited company and is listed on the Bombay Stock Exchange
(BSE) and the National Stock Exchange (NSE). The Company and its subsidiary (jointly referred to as the ‘Group’ hereinunder) are
engaged interalia, in the business of manufacturing, distributing and trading in pharmaceuticals.
The subsidiary considered in the consolidated financial statements is :
Name of the Company Country of
incorporation
% voting power held as at
31st December, 2012
% voting power held as at
31st December, 2011
Biddle Sawyer Limited (BSL) India 100 100
1B STATEMENT OF ACCOUNTING POLICIES
(i) Basis for preparation of accounts
The consolidated financial statements are prepared under the historical cost convention and comply in all material aspects with the
applicable accounting principles in India and the accounting standards notified under sub-section (3C) of Section 211 of the
Companies Act, 1956 and the other relevant provisions of the Companies Act, 1956.
All assets and liabilities have been classified as current or non-current as per the Group’s normal operating cycle and other criteria
set out in the Revised Schedule VI to the Companies Act, 1956.
(ii) Principles of consolidation
The consolidated financial statements relate to GlaxoSmithKline Pharmaceuticals Limited (the ‘Company’) and its wholly owned
subsidiary. The consolidated financial statements have been prepared on the following basis:
– The financial statements of the Company and its subsidiary have been combined on a line-by-line basis by adding together the
book values of like items of assets, liabilities, income and expenses, after fully eliminating intra-group balances and intra-group
transactions resulting in unrealised profits or losses.
– 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.
– The excess of cost to the Company of its investment in the subsidiary is recognised in the financial statements as goodwill,
which is amortised over a period of ten years.
(iii) Other Significant Accounting Policies
These are set out in the notes to the financial statements under “Statement of Accounting Policies” of the financial statements of
the Company and BSL.
Rupees
in lakhs
Previous year
Rupees
in lakhs
2 SHARE CAPITAL
AUTHORISED
9,00,00,000 equity shares of Rs. 10 each .. .. .. .. .. 90,00.00 90,00.00
ISSUED
8,47,07,710 equity shares of Rs. 10 each, fully paid up .. .. .. .. 84,70.77 84,70.77
SUBSCRIBED AND PAID-UP
8,47,03,017* equity shares of Rs. 10 each, fully paid up .. .. .. .. 84,70.30 84,70.30
* excludes 4,693 equity shares of Rs. 10 each of the Company [3,352 equity shares of Rs. 10 each of erstwhile Burroughs Wellcome
(India) Limited] held in abeyance.