DRIVIN G ROWTH - Dr. Reddy's

schedules forming part of the balance sheet
schedule 1.08
ACCOUNTING POLICIES
1. Accounting convention
The financial statements are prepared under the historical cost convention in accordance with the applicable accounting standards.
2. Capital Work-in-progress
Projects under commissioning and other capital work-in-progress are carried at cost comprising direct cost related incidental
expenses and interest on borrowings, if any.
3. Pre-operative expenses during the period
The expenses incurred during implementation of the project for the period carried out at cost will be capitalized as per the normal
accounting principles.
4. Foreign exchange transactions
Monetary assets related to foreign exchange transactions, remaining unrealised at the end of the year are translated at year-end
rates.
5. Recognition of expenditure is accounted for, on accrual basis except where stated other wise.
schedule 1.09
NOTES TO ACCOUNTS
Notes to accounts forming part of Balance Sheet as at March 31, 2002.
1. Contingent liabilities not provided for:
a) Guarantee given by the banks: Rs. 968,239/b)
Unexpired letters of guarantee: Rs. 12,602,000/-
2. Estimated amount of contracts remaining to be executed on capital account not provided for Rs. 18,014,506/-.
3. During the period the Company had received an amount of Rs. 5,272,908/- as unsecured loan and Rs. 100,000/- as Equity
contribution from M/s. Dr. Reddy’s Laboratories Limited, the holding Company.
4. By virtue of the investment made by M/s. Dr. Reddy’s Laboratories Ltd., in the share capital of the Company, the Company became
a public limited company in terms of clause (iv)(c) of subsection (1) of section 3 of the Companies Act, 1956. Accordingly, the
Company is in the process of deletion of the word “Private” from its name.
5. The information required as per clauses 4C and 4D and notes thereon of part II of schedule VI is not applicable to the Company, as
it has not started the manufacturing business and has not prepared Profit and Loss Account, except the value of imports calculated
on CIF basis by the Company during the period in respect of capital goods amounts to Rs. 1,584,505/-.
6. The Company does not owe a sum exceeding Rs. 1 Lakh, which is outstanding for more than 30 days to any Small Scale
Undertaking.
7. The Company has not commenced any commercial operations during the period and hence, the Profit and Loss Account is not
prepared the period.
However, the statement showing the pre-operative expenses incurred during the implementation period from January 23, 2001,
being the date of incorporation, is annexed as per schedule 1.03.
8. This being the first year of accounts, previous year figures are not available. The accounts have been drawn from the date of
incorporation i.e., January 23, 2001 to March 31, 2002.
9. The figures have been rounded off to the nearest rupee.
As per our report attached to the Balance Sheet For and on behalf of the Board
for A RAMACHANDRA RAO & CO. DR. JAYARAM CHIGURUPATI Managing Director
Chartered Accountants KALLAM SATISH REDDY Director
A RAMACHANDRA RAO
Partner
Hyderabad
April 30, 2002
ZENOVUS BIOTECH PVT. LTD. | FINANCIALS | ANNUAL REPORT 2001-2002
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