Currency is different from the parent companys

currency is different from the parent company’s
functional currency, the assets and liabilities of
such foreign operations, including goodwill and
fair value adjustments arising upon acquisition, are
translated to the reporting currency at exchange
rates at the reporting date. The income and
expenses of such foreign operations are translated
to the reporting currency at the average exchange
rates prevailing during the year, resulting foreign
currency differences are recognized in other
comprehensive income/(loss) and presented within
equity as part of FCTR. When a foreign operation is
disposed off, in part or in full, the relevant amount
in the FCTR is transferred to the consolidated
statement of profit and loss.
3.5. Re v e nu e Re cognition
Sale of goods
Revenue is recognised when the significant risks
and rewards of ownership are transferred to
the buyer, there is no continuing management
involvement with the goods, the amount of
revenue can be measured reliably, recovery of
the consideration is probable and the associated
costs and possible return of goods can be estimated
reliably. Revenue from the sale of goods is

Annual Report 2016-17
204
Glenmark Pharmaceuticals Limited
(All amounts in million of Indian Rupees, unless otherwise stated)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
measured at the fair value of the consideration
received or receivable, net of returns, value added
tax and applicable trade discounts and allowances,
but inclusive of excise duty. Revenue includes
shipping and handling costs billed to the customer.
Sales of active pharmaceutical ingredients and
intermediates in India are made directly to
customers. Significant risks and rewards in respect
of ownership of active pharmaceuticals ingredients
are transferred upon delivery of the products to
the customers.
Revenue from contract research is recognised
in the statement of profit and loss when right to
receive a non- refundable payment from out-
licensing partner is established.
Provisions for chargeback, rebates, discounts and
medicaid payments are estimated and provided
for in the year of sales and recorded as reduction
from revenue. A chargeback is a claim made by the
wholesaler for the difference between the price
at which the product is initially invoiced to the
wholesaler and the net price at which it is agreed
to be procured. Provisions for such chargebacks are
accrued and estimated based on historical average
chargeback rate actually claimed over a period of
time, current contract prices with wholesalers/
other customers and estimated inventory holding
by the wholesaler. Such provisions are presented
as a reduction from revenues.
Services
Revenue from services rendered is recognised in
the statement of profit and loss over the period the
underlying services are performed.