DRIVIN G ROWTH - Dr. Reddy's

238
notes to the financial statements – DECEMBER 31, 2001
2.5 Income tax
The tax expense is determined on the basis of tax effect accounting, using the liability method and is applied to all significant
timing differences. Deferred tax benefits are not recognised unless there is reasonable expectation of their realisation.
2.6 Foreign currencies transactions
Foreign currency transactions are recorded at the approximate rates of exchange ruling at the transactions dates. Monetary
assets and liabilities denominated in foreign currencies at the Balance Sheet date are translated at the rates of exchange ruling
at the date. Exchange adjustments are dealt with in the Profit and Loss Statement.
2.7 Retirement benefits
Payments to defined contribution retirement benefit plans (including state managed retirement benefit schemes) are charged
as expenses as they fall due.
2.8 Financial assets
Financial assets include cash and trade and other receivables. Trade and other receivables are stated at their nominal value as
reduced by appropriate allowance for estimated irrecoverable amounts.
2.9 Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered
into. Financial liabilities include trade and other payables and are stated at their nominal value. Equity instruments are recorded
at the proceeds received, net or direct issue costs.
3. HOLDING COMPANY
The Company is a subsidiary of Reddy Antilles N.V., incorporated in Netherlands. The Company’s ultimate holding Company is
Dr. Reddy Laboratories Ltd, incorporated in India. Related Company in these financial statements refer to members of the ultimate
holding Company’s group of companies.
Some of the Company’s transactions and arrangements are between members of the group and the effect of these on the basis
determined between the parties are reflected in these financial statements. The inter-company balances are unsecured, interestfree
and without fixed repayment terms unless stated otherwise.
Significant inter-company transactions
REDDY PHARMACEUTICALS SINGAPORE PTE LTD. | FINANCIALS | ANNUAL REPORT 2001
S$
2001 2000
Management fee from related Company 140,000 140,000
Purchases from ultimate holding Company (621,374) (1,365,481)
4. FIXED ASSETS
S$
Furniture Office
& fixtures equipment Computers Total
COST
At January 1, 2001 9,147 2,837 24,687 36,671
Additions – – 5,735 5,735
At December 31, 2001
DEPRECIATION
9,147 2,837 30,422 42,406
At January 1, 2001 8,906 2,710 22,358 33,974
Charged for the year 60 32 3,659 3,751
At December 31, 2001 8,966 2,742 26,017 37,725
Charged for 2000
NET BOOK VALUE
400 595 4,387 5,382
At December 31, 2001 181 95 4,405 4,681
At December 31, 2000 241 127 2,329 2,697