GSK_ Annual_Report_2021-22

GlaxoSmithKline Pharmaceuticals Limited | Annual Report 2021-22 Notes to the Standalone Financial Statements for the year ended March 31, 2022 142 Note 39 : Expenses towards CSR Expense towards activities relating to Corporate Social Responsibility in compliance with section 135 of the Companies Act, 2013 is as under: ( ` in lakhs) Year ended March 31, 2022 Year ended March 31, 2021 a) Amount required to be spent by the company during the year* 12,53.68 10,86.04 b) Amount of expenditure incurred 12,53.73 10,87.29 c) Nature of CSR activities Partnering India to eliminate lymphatic filariasis (LF) ; GSK Scholars – Enabling future healthcare professionals; Healthy School Environment - The right of every child. Partnering India to eliminate lymphatic filariasis (LF) ; GSK Scholars – Enabling future healthcare professionals; Healthy School Environment - The right of every child. d) Details of related party transactions 6,65.55 3,23.43 e) Where the provision is made with respect to a liability incurred by entering into a contractual obligation , the movement in provision NA NA *The above includes allocation of ` 62.68 lakhs (Previous Year ` 54.30 lakhs) towards Corporate Social Responsibility which are shown under Employee Benefits Expenses in note 34. Note 40 : Exceptional Items ( ` in lakhs) Year ended March 31, 2022 Year ended March 31, 2021 Profit on sale of property 31,40.01 1,84.09 Impairment of Assets (Refer Note (b) below) - (209,00.00) Associated cost to Impairment (Refer Note (c) below) 1,70.10 - Provision for product recall (Refer Note (a) below) - 34,80.26 Impairment of Nashik Assets (1,44.02) - Redundancy Costs (Refer Note (d) below) (20,08.43) (24.04) 11,57.66 (172,59.69) Notes: a) The Ultimate Holding Company had been contacted by regulatory authorities in 2019 regarding the detection of genotoxic nitrosamine NDMA in ranitidine products. Based on the information received and correspondence with regulatory authorities, the Ultimate Holding Company had 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. Consequently, the Company had in prior years recognised provisions relating to estimates of loss on account of sales returns, stocks withdrawn and inventories held including incidental costs thereto and other related costs.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 previous year there has been reversal of these provisions of ` 34,80.26 Lakhs. b) 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 Company 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 Company decided to proceed with the sale of the site and had classified the corresponding assets as held for sale for the previous year ended March 31, 2021. During the previous year the company entered into a binding agreement for the sale of these assets subject to necessary regulatory approvals. Consequently, the company had recognized an impairment of ` 249,45.00 lakhs 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. The sale of the site has been concluded in the current year after all necessary approvals in December 2021. c) Post-transaction closing adjustments consequent to disposal of Asset held for sale at Vemgal. d) Restructuring cost of manufacturing and commercial organisation.