Good Health Can’t Wait.

Statutory Reports • Board’s Report
Annual Report 2014 - 15
FY2015 also saw 13 product filings in the
USA. Cumulatively, 68 Abbreviated New
Drug Applications (ANDAs) are currently
awaiting approval from the US Food and
Drug Administration (USFDA). 43 of
these are Para IVs, out of which the
Company believes 13 are potentially
‘First to File’ status.
Revenue from Emerging Markets was
` 32.49 billion, registering year-on-year
growth of 14%. Revenue from India stood
at ` 17.87 billion, registering year-on-year
growth of 14%.
PSAI revenue grew by 6% to ` 25.46
billion. Despite moderate sales growth,
margins improved significantly due to
better product mix. During the year,
77 Drug Master Files (DMFs) were filed
globally, including 12 in the USA, 16 in
Europe and 49 in other markets. The
cumulative number of DMF filings as on
31 March 2015 was 735.
DIVIDEND
Your Directors are pleased to
recommend a dividend amounting to
` 20/- on every equity share of ` 5/-
(400%) for FY2015. The dividend, if
approved at the 31st Annual General
Meeting (AGM), will be paid to those
shareholders whose names appear on
the register of members of the Company
as on 14 July 2015. The dividend will be
tax-free in the hands of the shareholders.
TRANSFER TO RESERVES
The Company proposes to transfer
` 1,679 million to the general reserve.
SHARE CAPITAL
The paid-up share capital of your Company
increased by ` 1.36 million in FY2015, due
to the allotment of 272,306 equity shares,
on exercise of stock options by eligible
employees of Dr. Reddy’s, through the
‘Employees Stock Option Scheme, 2002’
and ‘Dr. Reddy’s Employees ADR Stock
Option Scheme, 2007’.
FIXED DEPOSITS
The Company has not accepted any
deposits covered under Chapter V of
the Companies Act, 2013. Accordingly
no disclosure or reporting is required
in respect of details relating to deposits
covered under this Chapter.
CHANGE IN THE NATURE OF
BUSINESS, IF ANY
During the year, there was no change in
the nature of business of the Company or
any of its subsidiaries.
MATERIAL CHANGES AND
COMMITMENTS AFFECTING
THE FINANCIAL POSITION OF
THE COMPANY
In April 2015, the Company entered
into a definitive agreement with UCB
India Private Limited and other UCB
group companies (together referred to
as “UCB”), to acquire a select portfolio
of established product business in the
territories of India, Nepal, Sri Lanka and
Maldives. The purchased business was
acquired on a slump sale basis (transfer
of a business as a going concern without
values being assigned to individual
assets and liabilities). The transaction
includes approximately 350 employees
engaged in operations of the acquired
India business. The acquisition, once
completed is expected to strengthen our
presence in the areas of dermatology,
respiratory and pediatric products. The
total purchase consideration is ` 8,000
million.
SUBSIDIARIES, ASSOCIATES
AND JOINT VENTURES
The Company has 51 subsidiaries and
2 joint venture companies as on 31
March 2015. During FY2015, Dr. Reddy’s
Laboratories SAS, Columbia and DRSS
Solar Power Private Limited have become
a subsidiary and joint venture company
respectively. Further, I-Ven Pharma
Capital Limited ceased to be a subsidiary
of the Company on its liquidation.
As per Section 129(3) of the Companies
Act, 2013, where the Company has one
or more subsidiaries, it shall, in addition
to its financial statements, prepare a
consolidated financial statement of
the Company and of all subsidiaries
in the same form and manner as that
of its own and also attach along with
its financial statement, a separate
statement containing the salient
features of the financial statement of its
subsidiaries.
In accordance with the above, the
consolidated financial statement of the
Company and all its subsidiaries and
joint ventures prepared in accordance
with Accounting Standards 21 and 27 as
specified in the Companies (Accounts)
Rules, 2014, form part of the annual
report. Further, a statement containing
the salient features of the financial
statement of our subsidiaries and joint
ventures in the prescribed Form AOC-
1, is attached as “Annexure I” to the
Board’s Report. This statement also
provides the details of the performance
and financial position of each subsidiary.
In accordance with Section 136 of the
Companies Act, 2013, the audited
financial statements and related
information of the subsidiaries, where
applicable, will be available for
inspection during regular business
hours at the Company’s registered
office in Hyderabad, India. These will
also be available on our website
www.drreddys.com.
PARTICULARS OF LOANS,
GUARANTEES OR INVESTMENTS
The Company makes investments or
extends loans/guarantees to its wholly
owned subsidiaries for their business
purpose. Details of loans, guarantees
and investments covered under Section
186 of the Companies Act, 2013, along
with the purpose for which such loan or
guarantee is proposed to be utilized by
the recipient, form part of the notes to
the financial statements provided in this
annual report.
CORPORATE GOVERNANCE
AND ADDITIONAL
SHAREHOLDERS’
INFORMATION
A detailed report on the corporate
governance systems and practices of the
Company is given in a separate chapter
of this annual report. Similarly, other
detailed information for shareholders
is provided in the chapter Additional
Shareholders’ Information.
A certificate from the Auditors of the
Company confirming compliance with
the conditions of corporate governance
is attached to the report on corporate
governance.
MANAGEMENT DISCUSSION
AND ANALYSIS
A detailed report on the Management
Discussion and Analysis is provided as a
separate chapter in the annual report.
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