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)
2.36: FINANCIAL RISK MANAGEMENT (CONTINUED)
Trade receivables that are impaired
The age analysis of the trade receivables that are impaired is given below:
PERIOD (IN DAYS)
AS AT
31 MARCH 2015
AS AT
31 MARCH 2014
1-90 - -
91-180 - -
More than 180 305 218
Total 305 218
Reconciliation of the allowance account for credit losses
The details of changes in provision for doubtful debts during the year ended 31 March 2015 and 31 March 2014 are as follows:
PARTICULARS 2014-15 2013-14
Balance as at 1 April 218 190
Provision made during the year 129 33
Trade receivables written off during the year (11) (1)
Provision reversed during the year (31) (4)
Balance as at 31 March 305 218
Loans and advances
Loans and advances are predominantly given to subsidiaries for the purpose of working capital and other business requirements.
The details of changes in provision for doubtful loans and advances to subsidiaries during the year ended 31 March 2015 and 31 March 2014 are as
follows:
PARTICULARS 2014-15 2013-14
Balance as at 1 April 874 1,232
Provision made during the year 176 147
Loans and advances written off during the year - -
Provision reversed during the year - (525)
Effect of change in the foreign exchange rates 17 20
Balance as at 31 March 1,067 874
b. Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by
ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without
incurring unacceptable losses or risk to the Company’s reputation.
As at 31 March 2015 and 2014, the Company had unutilized credit limits from banks of ` 10,438 and ` 13,565, respectively.
As at31 March 2015, the Company had working capital (i.e. current assets less current liabilities) of ` 57,247 including cash and bank balances of ` 9,014
and current investments of ` 21,022. As at31 March 2014, the Company had working capital of ` 47,936 including cash and bank balances of ` 6,651 and
current investments of ` 10,664.
The table below provides details regarding the contractual maturities of significant financial liabilities (other than finance leases which have been disclosed
in Note 2.45).
154