ManagementDaiichi full-year losses narrow down to $2.2 bn
Japanese drug maker Daiichi Sankyo, which has a controlling stake in Indian pharma major Ranbaxy Laboratories, has narrowed its full-year losses at 215.59 billion yen (about $2.2 billion) on account of changes related to accounting guidelines in Japan.
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Daiichi has revised its losses to 215.59 billion yen for the year ended March 31, 2009.
Earlier this month, Daiichi had reported a full-year loss of 335.8 billion yen.
Daiichi in a statement on Thursday said the narrowing of losses is due to accounting guidelines from Japan"s National Tax Agency related to loss on valuation of stocks of subsidiaries.
As a result, the losses on share valuation from its stake in Ranbaxy too came down.
"The Group posted a net loss of 215.4 billion yen (compared with net income of 97.6 billion yen in the previous year) as the result of recording 351.3 billion yen in extraordinary losses due to a one-time writedown of goodwill pertaining to the investment in Ranbaxy," the statement said.
Daiichi noted that the firm found it difficult for a "402,420 million yen component recorded in loss on valuation of stocks of subsidiaries and affiliates under extraordinary losses in the non-consolidated financial statements of the Company to be treated as a loss for tax purposes".
However, going by the guidelines it was clarified that the "said amount to be treated as a loss for tax purposes and corrections were made to figures in the consolidated financial statements, non-consolidated financial statements and related performance indices in the "Consolidated Financial Results for the Fiscal Year Ended March 31, 2009".