DRIVIN G ROWTH - Dr. Reddy's

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corporate governance
the risks of adverse exchange rate movement,
and
■ non-compliance of any regulatory, statutory
nature or listing requirements as well as share
holder services such as non-payment of
dividend and delays in share transfer.
The Board of Dr. Reddy’s is routinely
presented with all information under the
above heads, whenever applicable and
significant. These are submitted either as
part of the agenda papers well in advance of
the board meetings or are presented or
tabled in the course of the meetings.
RELATED PARTY TRANSACTIONS
• Dr. Reddy’s Research Foundation (DRF) is
a company incorporated under Section 25
of the Companies Act, 1956. Dr. K Anji
Reddy, Chairman of Dr. Reddy’s is a
promoter of DRF. Moreover, he along
with Satish Reddy and G V Prasad, are
governing council members of DRF.
Dr. Reddy’s sponsors R&D in DRF and
patents arising out of such research are
assigned to the Dr. Reddy’s. In 2001-02,
Dr. Reddy’s contributed Rs. 449 million
to DRF.
• Dr. Reddy’s Holdings Limited (DRH) is a
principal shareholder of Dr. Reddy’s. The
shareholders of DRH are Dr. K Anji Reddy,
Satish Reddy, G V Prasad and their family
members. During 2001-02, Dr. Reddy’s
purchased goods worth Rs. 11.9 million,
and sold goods worth Rs. 3.3 million from
the entities specified above. The amount
due from these entities was Rs. 0.3
million and amount due to these entities
was Rs. 1.9 million.
• Dr. Reddy’s has 15 subsidiary companies
(for details, see Schedule 20(6)(Clause b)
of Notes to Accounts accompanying the
audited financials).
▲ Sales of Dr. Reddy’s to these subsidies
for 2001-02 was Rs. 6,310 million.
▲ Purchase by Dr. Reddy’s from these
subsidiaries for 2001-02 was Rs. 166
million.
▲ Dr. Reddy’s received dividend from
these subsidiaries worth Rs. 4.2 million.
▲ DRL incurred operating expenses on
them worth Rs. 47.3 million.
▲ As on March 31, 2002, dues from these
subsidiaries to (including loans and
advances and sundry debtors) Dr.
Reddy’s amounted to Rs. 2,569 million,
while Dr. Reddy’s dues to these entities
were Rs. 57 million.
• Other related parties include:
(i) Diana Hotels (owned by relatives of
G V Prasad), (ii) Ms. K Samarajyam
(spouse of Dr. K. Anji Reddy),
DR. REDDY’S LABORATORIES LTD. | CORPORATE GOVERNANCE | ANNUAL REPORT 2001-2002