Good Health Can’t Wait.

More documents

Recommendations

Info

Good Health Can’t Wait. Dr. Reddy’s Laboratories Limited NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in Indian Rupees millions, except share data and where otherwise stated) 2.26 (b): ADDITIONAL INFORMATION TO CONSOLIDATED FINANCIAL STATEMENTS SL. NO. NAME OF THE ENTITY 27 Industrias Quimicas Falcon de Mexico, S.A. de CV AS AT 31 MARCH 2015 FOR THE YEAR ENDED 31 MARCH 2015 NET ASSETS, i.e., TOTAL ASSETS MINUS TOTAL LIABILITIES AS % OF CONSOLIDATED NET ASSETS (CONTINUED) AMOUNT SHARE IN PROFIT OR LOSS AS % OF CONSOLIDATED PROFIT OR LOSS AMOUNT 0.06 57 1.10 257 28 Lacock Holdings Limited 0.15 151 0.08 19 29 OctoPlus Development B.V. 1.42 1,401 2.31 540 30 OctoPlus B.V. (formerly OctoPlus N.V.) 1.07 1,053 (0.13) (31) 31 OctoPlus PolyActive Sciences B.V. 0.00 1 - - 32 OctoPlus Sciences B.V. 0.07 68 (0.10) (23) 33 OctoPlus Technologies B.V. (3.12) (3,077) (1.41) (330) 34 OctoShare B.V. 0.75 743 (0.74) (173) 35 OOO Dr. Reddy’s Laboratories Limited 1.95 1,924 4.58 1,071 36 OOO DRS LLC 0.14 134 0.17 39 37 Promius Pharma LLC (5.07) (4,999) (9.41) (2,198) 38 Reddy Antilles N.V. (0.12) (121) (0.10) (24) 39 Reddy Cheminor S.A. (under liquidation) - - - - 40 Reddy Holding GmbH 13.46 13,260 28.51 6,661 41 Reddy Specialities GmbH 0.00 2 - - 42 Reddy Netherlands B.V. 3.85 3,796 (1.79) (417) 43 Reddy Pharma Iberia SA 0.05 46 0.07 17 44 Reddy Pharma Italia S.p.A (0.08) (77) (0.03) (7) Joint Ventures India 1 DRSS Solar Power Private Limited - - - - Foreign 1 Kunshan Rotam Reddy Pharmaceutical 0.86 850 0.92 216 Company Limited 2 DRANU LLC 0.04 43 (0.54) (125) Sub total 180.59 177,940 95.58 22,332 Less: Effect of inter-company adjustments/ eliminations 80.59 79,409 (4.42) (1,032) Total 100.00 98,531 100.00 23,364 Note: Net assets and share in profit or loss for parent company, subsidiaries and joint ventures are as per the standalone financial statements of the respective entities. 196
Consolidated Financial Statements Annual Report 2014 - 15 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in Indian Rupees millions, except share data and where otherwise stated) 2.27: CONTINGENT LIABILITIES AND COMMITMENTS (A) Contingent liabilities: PARTICULARS AS AT 31 MARCH 2015 AS AT 31 MARCH 2014 Claims against the Company not acknowledged as debts in respect of: (a) Income tax matters under dispute (refer note ‘o’ below) 1,181 1,264 (b) Excise matters (including service tax), under dispute (refer note ‘m’ below) 402 633 (c) Sales tax matters, under dispute (refer note ‘n’ below) 317 319 (d) DPCO matters The Company is contesting various demands for payment to the credit of the Drug Prices Equalisation Account under Drugs (Price Control) Order, 1995 for few of its products, including norfloxacin. Based on its best estimate, the Company has made a provision for the potential liability related to the overcharged amount including the interest thereon and believes that the possibility of any liability that may arise on account of penalty on this demand is not probable. In the event the Company is unsuccessful in its litigation in the Supreme Court, it will be required to remit the sale proceeds in excess of the notified selling prices to the Government of India with interest and including penalties, if any, which amounts are not readily ascertainable. (e) Ibandronate Sodium litigation In June 2012, the Company launched its ibandronate sodium 150 mg tablet product, a generic version of Boniva® tablets, which are marketed and distributed by Genentech USA, Inc., a member of the Roche Group.The Company is defending patent infringement actions brought by Hoffmann-La Roche Inc. and Genentech USA, Inc. (collectively, “Roche”) in the United States District Court for the District of New Jersey with respect to this product. These actions were first commenced in September 2007 and over time expanded to assert infringement of four patents – one formulation patent (U.S. patent number 6,294,196) and three method of use patents (numbers 7,192,938, 7,410,957 and 7,718,634). Claims regarding U.S. patent numbers 6,294,196 and 7,192,938 were dismissed in December 2008 and April 2010, respectively. On 7 May 2012, the Court granted the Company’s motion for summary judgment that U.S. patent number 7,718,634 was invalid based on obviousness. In June 2012, the Company launched its ibandronate sodium 150 mg tablet product. On 1 October 2012, the Court granted summary judgment in the Company’s favor finding U.S. patent number 7,410,957 invalid. On 15 November 2012, the Court issued a final judgment in favor of the Company. Roche filed a motion for reconsideration on 16 November 2012 which was denied by the Court on 25 January 2013. Roche has appealed both of the Court’s summary judgment decisions. Argument of the appeal was heard on 6 December 2013, and on 11 April 2014, the Court of Appeals affirmed that the U.S. patent numbers 7,718,634 and 7,410,957 are invalid as obvious. A petition for rehearing and rehearing en banc was filed by Roche on 12May2014, and the Company filed its response on 9 June 2014. On 11 July 2014, the Court denied the petition for rehearing and rehearing en banc. (f) Nexium litigations Five federal antitrust class action lawsuits have been brought on behalf of direct purchasers of Nexium, and ten federal class action lawsuits have been brought under both state and federal law on behalf of end-payors of Nexium. These actions have been filed against various generic manufacturers, including the Company and its U.S. subsidiary Dr. Reddy’s Laboratories, Inc. These actions have been consolidated in the United States District Court for the District of Massachusetts. The complaints allege that, beginning in 2005, AstraZeneca sued various generic manufacturers, including the Company, for infringement with respect to patents purporting to cover AstraZeneca’s branded drug, Nexium. Plaintiffs allege that AstraZeneca’s settlement agreements with these various generic manufacturers, including the Company, violated federal and state antitrust laws, as well as state unfair competition laws. The complaints seek unspecified damages for class members as a result of an alleged delay in the entry of generic versions of Nexium. The Company believes that each of these complaints lacks merit and that the Company’s conduct complied with all applicable laws and regulations. All of the defendants, including the Company, filed motions to dismiss the complaints, which motions were denied in April 2013. The defendants also filed motions for summary judgment. Arguments regarding these motions were heard on 21 January 2014. On 12 February 2014, the Court issued an order granting the Company’s motion in part, finding that the plaintiffs have failed to demonstrate that the Company’s settlement of patent litigation with AstraZeneca included a large and unjustified reverse payment. On 20 October 2014, the Company reached a settlement with a majority of the plaintiffs, subject to the Court’s approval. Under the terms of the settlement, the Company will not make any payment to the plaintiffs. On 28 January 2015, the Court granted the Company’s consent motion for approval of the settlement agreements. In addition, two complaints, similar in nature to those referenced above, were filed in the Court of Common Pleas in Philadelphia, Pennsylvania by plaintiffs who chose to opt out of the class action lawsuit. No dispositive motions have been filed in these actions. 197
Page 1 and 2:
ANNUAL REPORT 2014-15 Good Health C
Page 3 and 4:
Our Brand We are in the business of
Page 5 and 6:
Corporate Overview Annual Report 20
Page 7 and 8:
Page 9 and 10:
Page 11 and 12:
Page 13 and 14:
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Page 21 and 22:
Page 23 and 24:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Statutory Reports • Business Resp
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
Page 41 and 42:
Page 43 and 44:
Statutory Reports • Management Di
Page 45 and 46:
Page 47 and 48:
Page 49 and 50:
Page 51 and 52:
Page 53 and 54:
Page 55 and 56:
Page 57 and 58:
Statutory Reports • Corporate Gov
Page 59 and 60:
Page 61 and 62:
Page 63 and 64:
Page 65 and 66:
Page 67 and 68:
Page 69 and 70:
Page 71 and 72:
Page 73 and 74:
Statutory Reports • Additional Sh
Page 75 and 76:
Page 77 and 78:
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Statutory Reports • Board’s Rep
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Standalone Financial Statements Ann
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148: Standalone Financial Statements Ann
Page 165 and 166: Consolidated Financial Statements A
Page 197: Consolidated Financial Statements A
Page 227 and 228: Notice Annual Report 2014 - 15 NOTI
Page 229 and 230: E-Voting Annual Report 2014 - 15 IN
Page 231: Dr. Reddy’s Laboratories Limited
Page 235 and 236: The future belongs, not to those wh
show all

Good Health Can’t Wait.

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?