DRIVIN G ROWTH - Dr. Reddy's

THE STRENGTH OF INDIA’S SCIENTIFIC MANPOWER AND ITS
RELATIVELY LOW COSTS SHOULD ALLOW THE
PHARMACEUTICAL INDUSTRY TO ESTABLISH A LARGER
PRESENCE IN INDIA AND ABROAD.
report revenues, profits and capital employed
in each such segment for 2001-02 and
thereafter. Table 8 gives the financial details
according to the segments identified by
Dr. Reddy’s. Since segment reporting was not
mandatory in earlier years, the table cannot
compare the results with 2000-01.
RELATED PARTY TRANSACTIONS
ACCOUNTING STANDARD 18 (AS-18)
issued by ICAI mandates disclosure of all
related party transactions. These have been
disclosed in full in the chapter on Corporate
Governance in this report, as well as in
Note 6 of the Notes to Accounts
accompanying the audited financials.
CONTINGENT LIABILITIES
NOTE 2 OF THE NOTES to Accounts
accompanying the audited financials details
all contingent liabilities of Dr. Reddy’s. Of
these, two need to be noted. The first is a
contingent liability of Rs. 149 million on
account of a demand for payment into the
credit of the Drug Prices Equalisation Account
for its product, norfloxacin, which is being
disputed by the Company. At present, the
Andhra Pradesh High Court has granted an
interim stay in favour of Dr. Reddy’s. The
second is for Rs. 123 million, which is on
account of a guarantee given by Dr. Reddy’s
to ICICI for a loan to Pathnet India Pvt.
Ltd., the Company’s JV with Gribbles
Pathology of Australia.
CONSOLIDATED FINANCIALS
UNDER INDIAN GAAP
DR. REDDY’S HAS PRESENTED
consolidated accounts in this annual report.
For the purposes of consolidation under
Indian GAAP, we have identified 15
subsidiaries including step down
subsidiaries and a partnership firm. The list
is given in Note 2 of the Notes to Accounts
accompanying the consolidated balance
sheet and profit and loss account. Table 9
gives the abbreviated consolidated profit
Table 9
|
Abbreviated sales & profit
figures from consolidated
financials, 2001-02
RS. MILLION
2001-02
Sales 16,460
Income from services 79
License fees 344
Income from operations 16,883
Other Income 505
Total Income 17,388
Total Expenditure 12,115
EBITDA 5,273
PBT 4,613
Tax provision 65
PAT but before minority interest 4,548
Profit after tax and minority interest 4,579
EPS (Rs) 60.18
*Does not include adjustments for
inter-segment revenue and other
un-allocable income
DR. REDDY’S LABORATORIES LTD. | MANAGEMENT DISCUSSION AND ANALYSIS | ANNUAL REPORT 2001-2002
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