Good Health Can’t Wait.

Good Health Can’t Wait.
Dr. Reddy’s Laboratories Limited
NOTES TO FINANCIAL STATEMENTS (All amounts in Indian Rupees millions, except share data and where otherwise stated)
2.7: FIXED ASSETS
DESCRIPTION
Tangible assets
AS AT
1 APRIL
2014
GROSS BLOCK DEPRECIATION / AMORTISATION / IMPAIRMENT NET BLOCK
ADDITIONS DELETIONS
AS AT
31 MARCH
2015
AS AT
1 APRIL
2014
FOR THE
YEAR
IMPAIRMENT DELETIONS
AS AT
31 MARCH
2015
AS AT
31 MARCH
2015
AS AT
31 MARCH
2014
Land 1,256 6 - 1,262 - - - - - 1,262 1,256
Buildings 11,176 1,151 33 12,294 1,966 443 - 17 2,392 9,902 9,210
Plant and machinery 24,218 5,442 806 28,854 12,310 2,648 - 691 14,267 14,587 11,908
Electrical equipment 3,555 1,127 7 4,675 1,783 417 - 6 2,194 2,481 1,772
Laboratory equipment 4,429 797 146 5,080 2,498 465 - 99 2,864 2,216 1,931
Furniture and fixtures 861 63 23 901 591 96 - 20 667 234 270
Office equipment 1,776 334 107 2,003 1,233 275 - 85 1,423 580 543
Vehicles
Owned 176 14 44 146 145 22 - 44 123 23 31
Leased 34 1 - 35 18 8 - - 26 9 16
Total tangible assets (A) 47,481 8,935 1,166 55,250 20,544 4,374 - 962 23,956 31,294 26,937
Previous year 40,702 7,547 768 47,481 17,347 3,720 - 523 20,544 26,937
Intangible assets
Customer contracts 243 - - 243 243 - - - 243 - -
Technical know how 459 11 - 470 459 - - - 459 11 -
Product related intangible 631 1,164 - 1,795 85 504 208 - 797 998 546
Copyrights and patents
(including marketing /
183 - - 183 183 - - - 183 - -
distribution rights)
Others - 215 - 215 - 24 - - 24 191 -
Total intangible assets (B) 1,516 1,390 - 2,906 970 528 208 - 1,706 1,200 546
Previous year 1,628 202 314 1,516 1,113 85 - 228 970 546
Total (A+B) 48,997 10,325 1,166 58,156 21,514 4,902 208 962 25,662 32,494 27,483
Previous year 42,330 7,749 1,082 48,997 18,460 3,805 - 751 21,514 27,483
Note:
a) Depreciation and amortisation for the year includes an amount of ` 478 (previous year: ` 409) pertaining to assets used for research and development. During the year, Company incurred ` 689
(previous year: ` 724) towards capital expenditure for research and development. (Refer note 2.40)
b) The Company has capitalised borrowing cost of ` 31 (previous year: ` 77) during the year ended 31 March 2015.
c) Additions to intangible assets includes an amount of ` 1,093 paid to DRL Impex Limited, a wholly owned subsidiary of the Company, for acquisition of certain product related intangibles.
d) Based on the performance of and expected cash flows from some of the product related intangibles, the Company reassessed the recoverable amounts of such intangibles and determined
that their carrying amount was higher than the recoverable amount. Accordingly, an amount of ` 208 was recorded as an impairment loss during the year ended 31 March 2015 under “Other
expenses”.
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