DRIVIN G ROWTH - Dr. Reddy's

34
directors’ report
DEAR MEMBERS
OUR DIRECTORS take great
pleasure in bringing you this report
for the financial year 2001-2002, a
year that witnessed tremendous growth for
the Company.
Table 1
|
The financial highlights of the year
were
RS. IN THOUSANDS
2001-2002 2000-2001
Income 16,516,347 10,016,002
Gross profit 5,181,915 2,180,628
Depreciation 474,187 425,145
Profit before tax 4,707,728 1,755,483
Taxation
Y
Current tax 395,280 310,810
Deferred tax expense/(benefit) (284,057) —
Net profit for the year
Add: Profit and loss
4,596,505 1,444,673
brought forward
Less: Loss of erstwhile American Remedies
149,871 6,363
Limited for the year ended March 31, 2000
Add: Transferred from investment
— (114,711)
allowance reserve
Add: Transferred from debenture
— 287
redemption reserve 142,494 —
Total available for appropriation
Appropriations:
4,888,870 1,336,612
Transfer to debenture redemption reserve — 47,498
Interim dividend paid 382,580 —
Tax on interim dividend 39,023 —
Proposed dividend on equity shares
*(subject to deduction of tax)
191,290* 126,355
Tax on proposed dividend — 12,888
Transfer to general reserve 3,500,000 1,000,000
Balance carried forward 775,977 149,871
DR. REDDY’S LABORATORIES LTD. | DIRECTORS’ REPORT | ANNUAL REPORT 2001-2002
DIVIDEND
THE BOARD OF DIRECTORS of the
Company at its meeting held on October
31, 2001, declared a special interim
dividend of Rs. 5/- for each equity share of
Rs. 5/-. The dividend was paid to the
shareholders on November 26, 2001.
Your Directors are pleased to recommend
a dividend of Rs. 2.50 per equity share of
Rs. 5/- for the financial year 2001-2002.
The dividend, if approved at the ensuing
annual general meeting, will be paid to
those shareholders whose name appear on
the register of members of the Company on
August 20, 2002.
This dividend along with the interim
dividend of 100%, which has already been
paid, raises the total dividend for the
financial year 2001-2002 to 150%.
MERGER WITH AMERICAN
REMEDIES LTD.
THE ASSETS AND LIABILITIES of
erstwhile American Remedies Ltd. were
transferred and vested with the Company
pursuant to the orders of High Courts and
Madras and Andhra Pradesh respectively.
The merger has been made effective from
April 1, 1999 as per the orders of the courts
above.
As provided in the scheme of merger,