GSK_Annual_Report_2021

Notes to the Consolidated Financial Statements for the year ended March 31, 2021 (contd.) Annual Report 2020-21 199 Note 37 : Exceptional Items (net) ( ` in lakhs) Year ended March 31, 2021 Year ended March 31, 2020 Profit on sale of property 1,84.09 546,30.28 Impairment of Assets (Refer Note 3(b)) and Note (c) below (209,00.00) (677,75.85) Provision for product recall (Refer Note (a) below) 34,80.26 (108,08.80) Redundancy Costs (Refer Note (b) below) (24.04) (76,14.63) Impairment of Capital Work-in-Progress - (26,31.00) Sale of Brands - 50.69 (172,59.69) (341,49.31) Notes: a) The Ultimate Holding Company had been contacted by regulatory authorities regarding the detection of genotoxic nitrosamine NDMA in ranitidine products. Based on the information received and correspondence with regulatory authorities, the Ultimate Holding Company made the decision to suspend the release, distribution and supply of all dose forms of ranitidine hydrochloride products to all markets, including India, as a precautionary action. The Group manufactures Ranitidine Hydrochloride IP Tablets 150 mg and 300 mg (Zinetac) for supply to the Indian market. Further as a precautionary action, the Group had initiated voluntary pharmacy/retail level recall of the Zinetac products above from the Indian market. Consequently, the Group had during the previous year ended March 31, 2020 recognised provisions of ` 108,08.80 lakhs relating to estimates of loss on account of sales returns, stocks withdrawn and inventories held including incidental costs thereto and other related costs. During the year there has been reversal of these provisions of ` 34,80.26 lakhs. b) ` 24.04 lakhs (Previous Year ` 59,14.63 lakhs) is on account of restructuring of manufacturing and commercial organisation. Also charge during the previous year of ` 17,00.00 lakhs on account of outstanding litigation matter. c) Following the decision to initiate a global voluntary recall (pharmacy/retail level) by the Ultimate Holding Company of ranitidine products including Zinetac in India , the Group initiated a comprehensive strategic review of the impact of this recall on all related assets in India including the manufacturing site at Vemgal. After considering all the strategic options available, the Group during the quarter ended September 2020 had decided to proceed with the sale of the site and had classified the corresponding assets as held for sale. During the quarter ended March 31, 2021 the group entered into a binding agreement for the sale of these assets subject to necessary regulatory approvals. Consequently, the group has recognized an impairment of ` 249,45.00 lakhs (year ended March 31, 2020 ` 677,75.85 lakhs including costs to sell and associated costs) to reflect the estimated realizable value of the assets and reversal of associated costs ` 19,22.00 lakhs and reversal of cost to sell of ` 21,23.00 lakhs.