DRIVIN G ROWTH - Dr. Reddy's

INVESTMENTS
INVESTMENTS reduced to Rs. 639.4
million as at March 31, 2002 from
Rs. 789.8 million as at March 31, 2001
primarily due to provision for permanent
diminution of investment in Compact
Electric Ltd., Aurantis Farmaceutica Ltd.
and Biomed Russia Ltd. However the
decrease was partially offset by allotment of
shares in Pathnet India Pvt. Ltd., Zenovus
Biotech Pvt. Ltd., Kunshan Rotam Reddy
Pharmaceutical Co. Ltd. and Aurigene
Discovery Technologies Ltd.
CURRENT ASSETS, LOANS AND
ADVANCES
INVENTORIES AS ON March 31, 2002
stood at Rs. 1,898.1 million as compared to
Rs. 1,576.0 million. This was primarily due to
increase in raw materials and finished goods
stock for meeting the increased sales demand/
forecast.
Sundry debtors amount to Rs. 4,449.5
million (net of provisions of doubtful debts
amounting to Rs. 96.3 million) as at March
31, 2002 as compared to Rs. 2,849.7 million
(net of provision of doubtful debts
amounting to Rs. 17.4 million) as at March
31, 2001. These debts are considered good
and realisable and are in line with increase
in sales. Days of sales outstanding were
104 days in fiscal 2002 as compared
to 106 days in fiscal 2001.
As on March 31, 2002, Dr. Reddy’s had
cash and bank balances of Rs. 4,885.6
million. This includes ADS proceeds held in
fixed deposits in banks outside India.
Loans and advances stood at Rs. 1,213.3
million (net of provision for doubtful
advances of Rs. 8.1 million) as at March 31,
2002 as compared with Rs. 861.7 million as
at March 31, 2001. Loans and advances
increased primarily due to increase in
advances to wholly owned subsidiary
companies, staff loans and payment of share
application money to Joint Ventures and
subsidiaries, allotment in respect thereof was
pending as on March 31, 2002.
Long term deposits amounting to Rs. 113.8
million as at March 31, 2002 pertains to the
un-amortised balance paid towards purchase
of brands and non-compete arrangements.
These amounts are written off over a period
of 10 years.
CURRENT LIABILITIES
SUNDRY CREDITORS represents the
amount payable to vendors for supply of
goods and services. Current liabilities stood at
Rs. 1,726.1 million as at March 31, 2002
compared to Rs. 1,139.6 million as at March
31, 2001. The increase was primarily due to
better credit terms from suppliers and
increased business activities.
DR. REDDY’S LABORATORIES LTD. | MANAGEMENT DISCUSSION AND ANALYSIS | ANNUAL REPORT 2001-2002
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