DRIVIN G ROWTH - Dr. Reddy's

notes to the financial statements
note 3
PROMISSORY NOTE RECEIVABLE
On July 26, 2001 a key employee of the Company borrowed US$ 65,000 from the Company. The Company received a promissory
note, which calls for payment in full on March 31, 2007 without interest. The Company, pursuant to applicable Internal Revenue Code
Sections, has imputed interest to the employee in the amount of US$ 850 for the year ended March 31, 2002.
note 4
FIXED ASSETS ARE COMPRISED AS FOLLOWS
(US $)
2002 2001 Useful Life
Land – 100,000
Building and improvements – 433,939 31.5 to 39 years
Furniture and fixtures 210,512 45,674 7 years
Equipment 136,271 118,837 5 to 7 years
Vehicles 124,154 16,958 5 years
470,937 715,408
Less: Accumulated depreciation (62,166) (227,179)
408,771 488,229
note 5
RELATED PARTY TRANSACTIONS
The Company is owned one hundred percent (100%) by Dr. Reddy‘s Laboratories Limited, an India Corporation. The Company
purchases substantially all of its products from its parent company or companies related or associated with the parent company.
The Company incurred interest expense to its parent of US$ 115,845 in 2002.
The Company has purchase commitments to the parent company of US$ 28,107,857 as of March 31, 2002.
note 6
MAJOR CUSTOMER
The Company had sales to major customers, whose revenues were 78.20% and 47.48%, in 2002 and 2001, respectively, of the
Company‘s total revenue as follows:
(US $)
2002 2001
Revenue Percent Revenue Percent
Customer 1 79,320,000 63.13 – –
Customer 2 – – 6,963,800 19.30
Customer 3 18,930,000 15.07 6,475,394 17.94
Customer 4 – – 3,694,750 10.24
98,250,000 78.20 17,133,944 47.48
DR. REDDY’S LABORATORIES, INC. | FINANCIALS | ANNUAL REPORT 2001-2002
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