DRIVIN G ROWTH - Dr. Reddy's

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annexure to notice
Explanatory statement pursuant to section 173 (2) of the Companies Act, 1956
Item Nos. 6 and 7
The Board appointed Dr. Krishna G Palepu and Mr. Anupam Puri as Additional Directors of the Company at the meeting of Board of
Directors held on January 29, 2002 and June 4, 2002 respectively.
As per section 260 of the Companies Act, 1956 the above appointments will be valid upto the forthcoming annual general meeting
of the Company. The Company has received notices under section 257 of the Companies Act, 1956, from a shareholder proposing
them for the Directorship on the Board of the Company.
The brief resume’ of Dr. Krishna G Palepu and Mr. Anupam Puri are given in the additional shareholders information.
Your Directors recommend the resolution for your approval.
None of the Directors except Dr. Krishna G Palepu and Mr. Anupam Puri are deemed to be concerned or interested in the above
resolution except as members.
Item No. 8, 9 and 10
The financial year 2001-2002 witnessed tremendous growth for the Company’s revenues and profits. Looking to the net profit earned
by the Company and the amount paid as remuneration to the managerial personnel, it is proposed to reduce the commission payable
to Dr. K Anji Reddy, Mr. G V Prasad and Mr. Satish Reddy and authorise the Board to decide the amount of commission on year to
year basis. The maximum rate of commission proposed to be paid exclusive of salary and perquisites is 1%, 0.5% and 0.5% to
Dr. K Anji Reddy, Mr. G V Prasad and Mr. Satish Reddy respectively.
After such reduction in remuneration the terms and conditions of appointment would be as under:
NOTICE | FINANCIALS | ANNUAL REPORT 2001-2002
Dr. K Anji Reddy Mr. G V Prasad Mr. Satish Reddy
Salary 100,000 60,000 60,000
Housing Rent free accommodation Rent free accommodation Rent free accommodation
or HRA of Rs. 50,000 or HRA of Rs. 30,000 or HRA of Rs. 30,000
Medical reimbursement As per rules of the Company As per rules of the Company As per rules of the Company
Leave travel assistance As per rules of the Company As per rules of the Company As per rules of the Company
not exceeding not exceeding not exceeding
one month’s salary one month’s salary one month’s salary
Personal accident insurance Rs. 10,000 Rs. 6,000 Rs. 6,000
Contribution to PF, As per rules of the As per rules of the As per rules of the
Superannuation and
annuity funds
Company Company Company
Encashment of leave As per rules of the Company As per rules of the Company As per rules of the Company
Car For Company’s business For Company’s business For Company’s business
Telephone For Company’s business For Company’s business For Company’s business
Commission Upto 1% of the net profits Upto 0.5% of the net profits Upto 0.5% of the net profits
as decided by the board in as decided by the board in as decided by the board in
addition to the salary and addition to the salary and addition to the salary and
perquisites perquisites perquisites
The terms as provided hereinabove should be deemed to be abstract of the variation of terms and conditions of appointment of
managerial personnel issued to the members of the Company pursuant to Section 302 of the Companies Act, 1956.
Your Directors recommend the resolution for your approval.
None of the Directors except Dr. K Anji Reddy, Mr. G V Prasad and Mr. Satish Reddy are deemed to be concerned or interested in the
above resolution except as members.