DRIVIN G ROWTH - Dr. Reddy's

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schedule to the balance sheet and profit and loss account
Computation of net profit and directors’ commission under section 309 (5) of the Companies Act, 1956 and commission payable to
directors.
(Rs. thousand)
For the year ended For the year ended
March 31, 2002 March 31, 2001
Profit after taxation before deferred tax as per profit and loss account
Add:
4,312,448 1,444,673
Provision for income tax 395,280 310,810
Provision for wealth tax 557 375
Directors sitting fees 280 127
Managerial remuneration including commission to non whole-time directors 204,483 72,575
Provision for diminution in value of investments – 155
Loss on sale of fixed assets 29,029 –
Depreciation as per books of accounts 474,187 425,145
Less:
5,416,264 2,253,860
Profit on sale of assets
Depreciation as envisaged under section 350 of the
– 14,333
Companies Act, 1956 *
Profit for the purpose of directors’ commission as per the provisions of the
474,187 425,145
Companies Act, 1956 4,942,077 1,814,382
Remuneration and commission payable to whole-time directors@ 4%
Commission payable to non-whole-time directors:
197,683 72,575
Maximum allowed as per the Companies Act, 1956 (1%) 49,421 –
Maximum approved by the shareholders (0.5%) 24,711 –
Commission approved by the Board 6,800 –
The company did not have a scheme of commission to non-whole-time directors for the year ended March 31, 2001. Hence the
previous year figures are not applicable.
* The Company depreciates fixed assets based on estimated useful lives that are lower than those implicit in schedule XIV to the
Companies Act, 1956. Accordingly, the rates of depreciation used by the Company are higher than the minimum rates prescribed
by Schedule XIV.
9. AUDITORS’ REMUNERATION
(Rs. thousand)
For the year ended For the year ended
March 31, 2002 March 31, 2001
a) Audit fees 4,500 1,000
b) Consultancy charges
Taxation matters 300 300
Other certifications 400 200
c) Reimbursement of out of pocket expenses 85 –
5,285 1,500
10.PUBLIC OFFERING IN THE UNITED STATES OF AMERICA
In April 2001, the Company made a public offering of its American Depositary Shares (ADS) to international investors. The offering
consisted of 13,225,000 ADS’s representing 13,225,000 equity shares having face value of Rs. 5 each (adjusted for share split), at
an offering price of US$ 10.04 per ADS. Consequently, the share capital has increased by Rs. 66,125 thousand and share premium
account has increased by Rs. 5,716,600 thousand net of share issue expenses amounting to Rs. 463,893 thousand The equity
shares represented by the ADS carry equivalent rights with respect to voting and dividends as the ordinary equity shares.
DR. REDDY’S LABORATORIES LTD. | FINANCIALS | ANNUAL REPORT 2001-2002