Good Health Can’t Wait.

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)
2.30: RELATED PARTY DISCLOSURES (CONTINUED)
PARTICULARS
FOR THE YEAR ENDED
31 MARCH 2015
FOR THE YEAR ENDED
31 MARCH 2014
ix. Remuneration to key management personnel (1)(2) 526 476
(1)
The above amounts do not include stock compensation expense.
(2)
In addition to the above, the Company has accrued an amount of ` 67 towards a long term incentive plan, for the services rendered by key
management personnel during the year ended 31 March 2015. Refer to Note 2.35 for further details.
d. The Company has the following dues from / to related parties:
PARTICULARS
AS AT
31 MARCH 2015
AS AT
31 MARCH 2014
i. Due from related parties:
Rental deposit to key management personnel and their relatives 8 8
ii.
Due to related parties (included in trade payables and other current liabilities):
Dr. Reddy’s Research Foundation 18 18
Green Park Hotels & Resorts Limited 1 -
Dr. Reddy’s Institute of Life Sciences 3 -
Total 22 18
2.31: SEGMENT REPORTING
The primary and secondary reportable segments are business and geographic segments, respectively.
Business segments:
The Company is organised on a worldwide basis into the following businesses which are reportable segments:
Pharmaceutical Services and Active Ingredients (“PSAI”);
Global Generics; and
Proprietary Products.
Pharmaceutical Services and Active Ingredients: This segment includes active pharmaceutical ingredients and intermediates, also known as active
pharmaceutical products or bulk drugs, which are the principal ingredients for finished pharmaceutical products. Active pharmaceutical ingredients and
intermediates become finished pharmaceutical products when the dosages are fixed in a form ready for human consumption such as a tablet, capsule or
liquid using additional inactive ingredients. This segment also includes contract research services and the manufacture and sale of active pharmaceutical
ingredients and steroids in accordance with the specific customer requirements.
Global Generics: This segment consists of finished pharmaceutical products ready for consumption/ use by the patient, marketed under a brand name
(branded formulations) or as generic finished dosages with therapeutic equivalence to branded formulations (generics). This segment includes the
operations of the Company’s biologics business.
Proprietary Products: This segment consists of the Company’s differentiated formulations business, New Chemical Entities (“NCEs”) business, and the
dermatology focused specialty business operated through Promius Pharma.
Others: This includes the operations of the Company’s wholly-owned subsidiary, Aurigene Discovery Technologies Limited, a discovery stage biotechnology
company developing novel and best-in-class therapies in the fields of oncology and inflammation and which works with established pharmaceutical and
biotechnology companies in early-stage collaborations, bringing drug candidates from hit generation through Investigational New Drug (“IND”) filing.
Geographic segments:
The Company’s business is organised into five key geographic segments viz. India, North America, Russia and other CIS countries, Europe and Others.
Revenues are attributable to individual geographic segments based on the location of the customer.
Segment revenues and expenses: All segment revenues and expenses are directly attributable to the segments.
Segment assets and liabilities: As certain assets of the Company including manufacturing facilities, development facilities, and treasury assets and
liabilities are often deployed interchangeably across business segments, it is impractical to allocate these assets and liabilities to each business segment.
Inter-segment transfers: Segment revenue, segment expenses and segment result include transfers between business segments. Inter-segment transfers
are accounted for at cost to the transferring segment. Such transfers are eliminated on consolidation.
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