DRIVIN G ROWTH - Dr. Reddy's

annexure to the auditors’ report
The Annexure referred to in paragraph 1 of the Auditors’ Report for the period ended March 31, 2002. We report that:
1. The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
We have been informed that all the fixed assets have been verified by the management and no material discrepancies have been
noticed on such verification.
2. None of the fixed assets have been revalued during the year.
3. The Company has neither accepted nor granted any loans from companies, firms or other parties listed in the registers maintained
under section 301 of the Companies Act, 1956.
4. The Company has neither accepted nor granted any loans from companies, firms or other parties to and from the companies under
the same management as defined under sub-section (1B) of section 370 of the Companies Act, 1956.
5. The Company has not given any loans or advances in the nature of loans to any parties except staff advance, which are being
recovered regularly.
6. In our opinion and according to the information and explanations given to us there is adequate internal control procedure
commensurate with the size of the Company and the nature of its business for the purchase of equipment and other assets.
7. In our opinion and according to the information and explanations given to us, no services, aggregating during the year to
Rs. 50,000/- or more in respect of each party, were sold, in the pursuance of contracts or arrangements entered in the register
maintained under section 301 of the Companies Act, 1956.
8. The Company has not accepted any deposits from the public and has not contravened any provision of section 58A of the
Companies Act, 1956.
9. According to the information and explanations given to us, the Company’s operations do not generate any by-products.
10. As the Paid up Share Capital of the Company has not exceeded Rs. 50 lakhs, as on the first day of the financial year and the
turnover of the current year does not exceed Rs. 2 Crores, therefore the Company does not come under the purview of this clause.
11. According to the information & explanations given to us the provisions of section 209 (1)(d) of the Companies Act, 1956 relating
to maintenance of cost records does not apply to the Company.
12. As per the information and explanations given to us the Provisions of Employees State Insurance Act and the Provident Fund Act
does not apply to this Company, as there are no employees in the rolls of the Company during the audit period.
13. According to the information and explanations given to us there were no undisputed amounts payable in respect of income tax,
wealth tax, sales tax, customs duty and excise duty which were outstanding as on March 31, 2002, for a period of more than six
months from the date on which they became payable.
14. According to the information and explanations given to us and examining of records of the Company by us, no personal expenses
have been charged to revenue account, other than those payable under contractual obligation or in accordance with generally
accepted business practice.
15. The Company is not a sick industrial company within the meaning of the clause (o) of subsection (1) of section 3 of Sick Industrial
Companies (Special Provision) Act, 1985.
16. There is a reasonable system of authorisation at proper levels and an adequate system of internal control commensurate with its
size and nature of its business.
17. The other clauses of the order are not applicable to the Company.
For AAGJ & CO.
Chartered Accountants
Bangalore M GURUPRASAD
April 19, 2002 Partner
AURIGENE DISCOVERY TECHNOLOGIES LTD. | FINANCIALS | ANNUAL REPORT 2001-2002
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