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DRIVIN G ROWTH - Dr. Reddy's

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32<br />

intangibles accounting<br />

market value added<br />

“MARKET VALUE ADDED” is a<br />

supplementary technique used to evaluate a<br />

company’s performance in stakeholder<br />

value creation. Market Value Added (MVA)<br />

is the excess of the market value of the<br />

Company over the value of investors’<br />

capital. In contrast to the economic profit,<br />

Table 3<br />

|<br />

MVA–Market Value Added<br />

RS. IN MILLION<br />

which is the value added by the Company<br />

over a given period, the MVA is a measure<br />

of the investor’s perception of value added.<br />

MVA: Current Market Value of Debt &<br />

Equity – Book value of Debt & Equity.<br />

2002 2001 2000 1999<br />

Current Market Value of debt 138 3754 3963 3021<br />

No of O/s shares ( Mn) 77 32 32 32<br />

Share price details<br />

High for 2001-02 1150 1494 1500 616<br />

Low for 2001-02 * 432 1159 939 396<br />

Average price 2001-02 791 1327 1213 506<br />

Average market value of equity 60527 41992 38391 16011<br />

Market value of debt & equity 60666 45746 42354 19032<br />

Book value of debt & equity 14718 9287 8731 7226<br />

Market Value Added 45948 36459 33623 11806<br />

* High price recorded in November 2001 post stock split. Low recorded in April 2001 – adjusted for stock split<br />

DR. REDDY’S LABORATORIES LTD. | INTANGIBLES ACCOUNTING | ANNUAL REPORT 2001-2002

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