GSK_Annual_Report_2021

Annual Report 2020-21 175 Note 1: Significant accounting policies A. GENERAL INFORMATION GlaxoSmithKline Pharmaceuticals Limited (‘the Group’) is a public company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. Its shares are listed on the BSE Ltd. (Bombay Stock Exchange) and the National Stock Exchange of India Ltd. (NSE). The registered office of the company is located at Dr. Annie Besant Road, Worli, Mumbai 400 030. The Group is engaged interalia, in the business of manufacturing, distributing and trading in pharmaceuticals. The subsidiary considered in these Consolidated Financial Statements is: Name of the Company Country of Incorporation % voting power held as at March 31, 2021 % voting power held as at March 31, 2020 Biddle Sawyer Limited (BSL) India 100.00 100.00 B. SIGNIFICANT ACCOUNTING POLICIES a) Basis of preparation The Consolidated Financial Statements of the Group have been prepared in accordance with Indian Accounting Standards (“Ind AS”) notified under the Companies (Indian Accounting Standards) Rules, 2015 and relevant provisions of the Companies Act, 2013 (“the Act”) (as amended from time to time). The Consolidated Financial Statements have been prepared on a historical cost basis, except for the following: • certain financial assets and liabilities that are measured at fair value; • assets held for sale - measured at lower of carrying amount or fair value less cost to sell; • defined benefit plans - plan assets measured at fair value; and • share-based payments. The financial statements are presented in INR and all values are rounded to the nearest lakhs (INR 00,000), except where otherwise indicated. b) Principles of consolidation The Consolidated Financial Statement have been prepared on the following basis: • The Group combines the financial statements of the parent and its subsidiary line by line adding together like items of assets, liabilities, equity, income and expenses. Intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiary have been changed where necessary to ensure consistency with the policies adopted by the group. • 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 has been amortised over a period of ten years. Notes to the Consolidated Financial Statements for the year ended March 31, 2021