DRIVIN G ROWTH - Dr. Reddy's

240
notes to the financial statements – DECEMBER 31, 2001
13.STAFF COSTS
S$
2001 2000
Staff costs 124,096 107,107
Cost of defined contribution plans included in staff costs 17,132 10,415
Number of employees at end of year 3 3
Defined contribution plans
The employees of the Company are members of a retirement defined contribution scheme operated by the local government. The
Company is required to contribute a specific percentage of their payroll costs to the retirement scheme to fund the benefits. The
only obligation of the Company with respect to the scheme is to make the specified contribution.
14.FINANCIAL INSTRUMENTS
a) Credit risk
The carrying amount of cash, trade and other receivables represents the Company’s maximum exposure to credit risk in relation
to financial assets.
The Company’s trade receivables related to sales of medicinal & pharmaceutical products, healthcare, beauty items to third
parties. The Company performs ongoing credit evaluation of its customers’ financial conditions and generally does not require
collateral on accounts receivables.
The credit risk on liquid funds is limited because the counter party is a bank with high credit ratings assigned by international
credit agencies.
No other financial assets carry a significant exposure to credit risk.
b) Foreign currency risk
The Company trades mainly in Singapore dollars and United States dollars. Foreign exchange exposures are minimised through
hedge to trade purchases and sales are denominated in the above currencies. This natural hedge reduces significantly the
financial impact of movements in the foreign exchange rates. Presently, no transaction in forward exchange contracts is
deemed necessary.
c) Net fair value
The carrying amounts of financial assets and financial liabilities recorded in the financial statements represented their respective
net fair values, determine in accordance with the accounting policies as disclosed in Note 2 to the financial statements. The
Company does not engage in financial derivative contracts.
15.OPERATING LEASE
S$
2001 2000
Minimum lease payments under operating lease 22,400 22,000
At the Balance Sheet date, the commitments in respect of
operating lease with a term than one year were as follows:
Non-cancelable operating payable
Due within one year 14,400 15,200
Due within 2 to 5 years – –
REDDY PHARMACEUTICALS SINGAPORE PTE LTD. | FINANCIALS | ANNUAL REPORT 2001
14,400 15,200