DRIVIN G ROWTH - Dr. Reddy's

226
notes to the financial statements
note 7
COMMITMENTS
Employment contracts
The Company has entered into an employment contract with its Chief Executive Officer. The contract terminates on March 31, 2004.
The Company has entered into three (3) year employment contracts with certain other executives. The contracts terminate on varying
dates through April 2005.
At March 31, 2002, the total minimum commitments under employment contracts are as follows:
US $
March 31, 2003 1,085,000
March 31, 2004 1,110,000
March 31, 2005 564,167
2,759,167
Consulting contract
On April 10, 2001, the Company entered into a consulting agreement for a period of one (1) year. The agreement automatically
renews for one (1) year, unless terminated by either party within sixty (60) days of the anniversary date. The minimum commitment
under the agreement is US$ 40,000 per year.
Sales
At March 31, 2002, the Company has sales commitments of US$ 21,128,456.
Operating leases
The Company has two (2) operating leases for commercial property in excess of one year. The first lease expires in May, 2008. Monthly
rental expenses is US$ 11,791 per month. The second lease expires in July, 2008. Monthly rental expenses is US$ 11,791 per month.
The second lease expires in July, 2008. Monthly rental expenses is US$ 3,551 per month.
The Company has one (1) operating lease for residential property in excess of one year. The lease expires in February, 2004. Monthly
rental expense is US$ 2,900 per month.
Rent expense for the years ended March 31, 2002 and 2001, was US$ 186,180 and US$ 3,729, respectively.
At March 31, 2002, the future minimum lease payments for the commercial property and residential property are as follows:
US $
March 31, 2003 218,900
March 31, 2004 215,171
March 31, 2005 184,100
March 31, 2006 184,100
March 31, 2007 184,100
Thereafter 221,884
note 8
STOCK REDEMPTION
1,208,255
On March 28, 2000, the Company redeemed to treasury 250 of the then outstanding 1,000 shares of common stock. The redemption
price is payable contingent upon the achievement of certain sales levels in the United States and Canada of the Company and its
affiliates for a period of ten (10) years from stock redemption date. If all sales levels are met within the time prescribed, the redemption
price will be US$ 14,000,000.
Payments made in connection with the stock redemption during the year ended March 31, 2002 were US$ 2,599,169 including
interest of US$ 258,675.
DR. REDDY’S LABORATORIES, INC. | FINANCIALS | ANNUAL REPORT 2001-2002