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Cash Flow Management - DR Reddy
Cash Flow Management - DR Reddy
1. Introduction
2. Theoretical framework of cash flow management
3. Methodology
I.
Need of the study
II.
Scope and period of the study
III.
Objectives of the study
IV.
Methodology
V.
Limitations of cash flow analysis
4. Profile of the industry
5. Profile of the company
6. Analysis and interpretation
7. Findings and suggestions
8. Conclusions
9. Bibliography
3-15
18-34
35-48
1-2
16-17
49-91
92
93
94
INTRODUCTION
in the
year 1979 as compared to the year 1978. The cash statement explains
the reasons for such inflows or out flows cash, as the case might be. It
also helps management in making plans for the immediate future. A
projected sash flow statement of a cash budget will help the management
in ascertaining how much cash will be available to meet obligations to
trade creditors, to pay bank loans and to pay dividend to the
shareholders. A proper planning of cash resources will enable the
management to have cash available whenever needed and put it to some
profitable or productive use in case there is surplus cash available.
The term cash here stands for cash and bank balances it has
already been explained in the previous chapter that the term funds will
exclude from its purview all other current assets and current liabilities
and the terms funds flow statement and cash flow statement will have
synonymous meanings. However, for the purpose of this study, we are
3
calling this part of this study cash flow analysis and not funds flow
analysis.
external.
1. Internal sources:
Cash from operations is the main internal source. The net profit
shown by the profit and loss account will have to be adjusted for noncash items for finding out from operations. Some of these items as
follows:
i.
Depreciation:
Depreciation does not result in out flow of cash and therefore net profit
will have increased by the amount of depreciation or development rebate
charged in order to find out the real cash generated from operations.
ii.
against profits
reduce the net profits without effecting the cash balance. The amounts
written off should, therefore ,be added back to profits to find out the
cash form operations.
iii.
v.
Creation of reserves :
If profit for the year has been arrived at after charging transfers to
reserves, such transfers should be added back to profits .in case
operations show a net loss, such net loss after making adjustments
for non cash items will be shown as an application of cash.
Thus ,cash
form
operations
is computed
on the
pattern
of
In the illustration given above the cash from operations has been
computed on the same pattern on which funds from operations are
computed. As a matter of fact, the funds from operations in this case.
This is because of the presumptions that are all cash transactions and
all goods have been sold . however, there may be credit purchases ,credit
sales, outstanding and prepaid expenses,etc.
In such a case from operations. This has been explained in the
following pages :
In business there are both case sales and credit sales. In case, the total
sales are Rs .30000 out of which the credit sales are Rs.10000 it means
sales have contributed only on the extent of Rs.20000in providing cash
from operations.
Thus, while computing cash from operations. It will be necessary
that suitable adjustments for outstanding debtors are also made.
which will result I out flow of cash. On the other hand increase in
creditors from operations from because less payment has been made to
the creditors for goods supplied which will result in increase of cash
balance at the disposal of the business.
Thus, the effect of credit purchases can be shown with the help of
the following equation in computing cash from operations:
+ increase in creditors
Cash from operations =Net profit
or
-decrease in creditors
+Decrease in stock
or
- Increase in stock
decrease net profit for the year but it decrease cash from operations
.similarly, income earned during a year is credited to the profit and loss
account whether it has been received or not. Thus, income, which has
not been received but which has become due, increases the net profit for
the year without increasing cash form operations.
Thus, the effect of prepaid expenses and accrued incomes in cash
from operations can be shown in the following equation:
+decrease in prepaid expenses
+decrease in accrued income
+ Decrease in debtors
Cash from operations =Net profit
+Decrease in stock
-increase in prepaid expenses
+ Decrease in prepaid expenses
-increase
in accrued
income
+ Decrease
in accrued
income
creditors expenses,
The over all effect of stock, debtors, +Increase
creditors, in
outstanding
+Increase
outstanding
income, received advance, prepaid expenses
and in
accrued
incomeexpenses
can be
shown in the form of the following formula:
Cash from operations= Net profit
- Increase in debtors
- Increase in stock
11
AND
12
13
Payment of tax:
Payment of tax will result in decrease if cash and hence it is an
application of cash.
Payment of dividend:
14
16
CASH FORECASTS
The cash forecasts help in determining the amount of cash
required and the sources from which it will be obtained during different
time periods. This is also known as cash budgeting .the different
methods of cash budgeting or making cash forecasts are explained in the
chapter budgetary control given later in the book.
..
Bank balance ..
..
..
..
..
..
..
..
Tax paid
Dividend paid
Closing balance *
Cash balance
..
Bank balance
for the
companys growth.
It is beneficial to the management of the company as it provides a clear
cut picture with regard to the cash flow statements.
METHODOLOGY:
For the study of cash flows of Dr. Reddys laboratories limited. The
secondary data that is, the financial report of the company from the year
2013-2014 are taken into consideration.
The theoretical contents are gathered from eminent text books and
reference library at Dr. Reddys laboratories limited.
TITLE OF STUDY:
The title of the study is CASH FLOW MANAGEMENT in
DR.REDDYS LABORATORIES LTD, tech ops, unit-1, bollaram.
20
well as non cash items and, therefore, net cash flow does not
necessarily mean net income of the business.
The cash balance as disclosed by the cash flow statement may not
represent the real liquid position of the business since it can be
easily influenced by postponing purchases and other payments.
INDUSTRIAL PROFILE:-
1. Introduction
Indias pharmaceutical sector has been the subject of much
conjecture recently because evolving intellectual property (IP) laws are
sure to alter the status quo. As a knowledge driven industry,
pharmaceuticals are especially sensitive to regulatory changes that affect
IP. In the past, Indian pharmaceutical firms have derived considerable
revenues by selling copies of Western companies patented products. In
21
2012, this practice will likely come to an end, when India implements
stronger IP protection laws. What is less obvious is how the industry
will react in the post-2012 environment. Existing research has analyzed
2012 from a number of angles, ranging from consumer-focused to
investor-focused, and used both theoretical (top-down) and companyspecific (bottom-up) methods.
By focusing on the strategic activities of twelve influential
companies, this paper makes projections about how the Indian
pharmaceutical industry might develop in the coming decades. It can be
argued that this method puts too much emphasis on the role of the firm
in the larger industry context, and overlooks other factors such as patent
enforcement, market segmentation, and demand. However, given that
firm strategies are derived from assessments of external factors, it is
reasonable to invest some confidence in them. Furthermore, the extent to
which pharmaceutical companies control their own destinies must be
observed. Consider, for example, the prospect of creating new drugs in
India. Indias capacity to produce its own IP is very much contingent on
the success of firms such as Dr. Reddys
Laboratories (DRL) and Ranbaxy.
1.1 Structure of paper
The principal objective of this paper is to project the effects that
2012 IP laws are likely tohave on the Indian pharmaceutical industry.
Section 2 provides background on pharmaceuticals in India, while
section 3 strikes at the heart of the issue in question by reporting and
analyzing how companies are preparing for 2012.
1.2 Summary of findings
This research supports a number of conclusions about the impact
of reforms on the pharmaceutical industry. Increased patent protection
need not spell disaster for Indian pharmaceutical companies, even
though the current practice of profiting from other companies
IP will likely cease to be a strategic option. The future success of Indian
pharmaceutical companies hinges on their ability to find productive roles
for themselves in the post-2012 environment.
The most publicized reaction of Indian firms to 2012 has been the
development of drug discovery programs by companies such as DRL,
Ranbaxy, Wockhardt, and Dabur, who plan to use product patent
protection as an incentive to produce their own IP. To be sure, Indian
drug discovery programs are still in their infancy and there remain
considerable obstacles on the horizon. Indian companies have neither
22
2. Overview
trademark office (PTO) currently spends $330,000 per year, whereas its
U.S. counterpart operates on a $300 million budget.19 Obviously, New
Delhi will have to allocate more resources to its PTO if it is to function
effectively. In addition, India lacks other complementary private sector
features that are required of a well-functioning patent system, such as
patent attorneys and a general appreciation of IP issues.20
3.1.3 Firms views
In the final analysis, patents will probably not be as strong or as
well enforced as the OPPI firms and Western governments want, but the
post-2012 scenarioagainst the apparent wishes of New Delhiis sure
to represent a significant departure from the status quo. The potential
range of possible outcomes poses significant problems for firms
attempting to draft post-2012 strategies. Several of the MNCs covered in
this study have decided to refrain from making a judgement about 2012
until after the fact, but have devised expansion plans to distribute higher
revenue, easily prepared, first generation drugs in India. Other firms,
such as Sun Pharmaceuticals, have made detailed guesses about the
degree of patent protection they will receive, and have initiated costly,
irreversible investments based on their assumptions. A third set of firms,
such as Wockhardt, is more forward-looking than the first group, but
places a higher value on workable contingency strategies than the
second.
3.2 Capabilities
Because different companies have different strengths and
weaknesses, two companies may well put forth identical analyses of the
post-2012 patent environment, yet react in completely different ways.
This subsection attempts to highlight some of the features that
differentiate companies from one another. Figure 1 presents a qualitative
snapshot of the functional capabilities of the companies that comprise
this papers sample. According to the sample, in all four areas of the
product cycle, the most prominent Indian companies are competitive with
MNCs in the domestic market. Indian companies excel particularly in
domestic marketing and distribution. For the MNCs, the domestic figures
may be somewhat misleading, because MNC subsidiaries often rely upon
their parent companies for assistance in specific areas, rather than
duplicating work themselves.
3.3.1 Size
Historically, large companies have dominated the global
pharmaceutical industry. This has been the case primarily because
certain phases of the product cycle (see section 2.2), such as clinical
32
of the production process under their own control (through forward and
backward integration) while simultaneously sharpening their existing
R&D practices. Lupine, for example, prides itself on its innovative line
extensions. Even if these companies had more capital at their disposal,
they would be unlikely to pursue new drug discovery programs because
their managers firmly believe that technological competence needs to be
fostered gradually.
3.3.2 Redefining New Drug Discovery
Several Indian companies (e.g., Ranbaxy, DRL, Dabur, and
Wockhardt) are turning the prospect of increased patent protection to
their advantage by spearheading new drug discovery programs. Their
efforts have attracted much attention. Skeptics assert that Indian
companies are not large enough to discover and develop their own drugs
successfully. Indian companies also lack the experience of the major
players; leading MNCs have spent the better part of the twentieth century
honing R&D skills.
3.3.3 Public research
Most individuals surveyed for this paper were decidedly negative
about Indias public research facilities. In theory, public R&D labs should
be an invaluable resource to Indias smaller drug companies because
they allow them access to lead molecules and other specialized R&D
functions that they could not otherwise afford. In practice, however, the
current quality of such labs is so poor that relying on them for survival,
in the opinion of most experts, is one of the biggest mistakes companies
can make. A notable exception to this maxim is the Indian Institute of
Science (IIS), which has been quite successful at conducting clinical
trials. Whether or not other public research labs can follow IIS example
remains to be seen.
3.3.4 Leveraging Nontechnological Strengths
On the surface, 2012 seems to call for Indian companies to become
more technologically focused, and indeed, a number of Indias more
prominent firms (e.g. Ranbaxy, DRL, and Wockhardt) are pursuing this
goal by developing U.S. FDA-approved processes and drug discovery
programs. As 2012 draws nearer, however, Indias pharmaceutical
companies must also expand and develop their nontechnological
strengths to keep pace with MNC competition. In keeping with this
broader development strategy, some companies (e.g. Sun, Lupin, etc.) are
undertaking less technologically oriented initiatives. Sun, for example,
recently expanded its R&D operations to place greater emphasis on
34
lobbies in New Delhi, HMR, like other MNCs, is unsure of what to expect
of the post-2012 patent regime. Rather than subjecting itself to such
uncertainty, it has pursued a strategy of relying on headquarters in
Frankfurt for products, technology, and marketing programs on an asneeded basis. Meanwhile, it has divested itself of its local primary/bulk
R&D facilities. Interestingly, HMR has filed more patents in India than
any other drug company, and pending attractive patent protection, it may
well reinvest in its Indian operations after 2012. Whether or not it does
so will have almost no impact on the types of products it is able to
produce and sell in India.
4.6 Knoll Pharmaceuticals Ltd. (BASF Pharma)
Mr. D.M. Gavaskar, Managing Director & President
Dr. A.V. Prabhu, Vice President
In 1997, BASF acquired UK-based Boots Pharmaceuticals.
Subsequently, Boots India was restructured under Knoll, BASFs U.S.based pharmaceutical subsidiary. In India, Knoll acts with considerable
autonomy from its corporate parent. D.M. Gavaskar, its managing
director and president, believes that autonomy is necessary for Knoll to
serve its markets adequately. Two reasons underlie this belief. First,
complex matrix structures, in which employees perform both regional
and functional duties, tend to inhibit distribution relationships, which
are critical to success in India. Second, in many respects the Indian
market differs fundamentally from the global market. For example, cough
and cold medicines are currently the second largest functional segment
in India, although they are of trivial importance on the world scene.
Adopting a more centralized approach would weaken Knolls individual
capacity to promote cough and cold remedies. In general, a certain
degree of autonomy is necessary to capitalize on Knolls strengthsa
strong distribution network and an intimate knowledge of the Indian
market for drugs. Knoll does not involve itself in exports (only 3 percent
of its products are exported).
4.7 Lupin Laboratories Ltd.
Mr. Lalit Kumar, President
Mr. Shrikant Kulkarni, General Manager
Lupin is a twenty-seven year-old Indian pharmaceutical company.
In the past, Lupin derived a considerable portion of its revenues from
producing bulk and intermediate drugs with no infringing processes,
many of which were bound by product patents in more developed
countries. It specializes in anti-TB medications and cephalosporins
(antibiotics derived from the Cephalosporium genus of fungi).
38
40
COMPANY PROFILE
Introduction
and
markets
solutions
pharmaceutical health
developing
and
commercializing
innovative
MISSION :
43
To be the
first
pharmaceutical
company
that
successfully
discovers
takes its products from discovery to commercial launch globally.
CORE PURPOSE :
STATEMENT : To help people lead healthier lives.
The purpose
of
this statement
innovating
to meet
making
pharmaceutical
unmet medical
products
affordable
needs
and
and
available
by
to a
mankind.
steps:
we
seek opportunities
to
build
process
for it
in spite
of the
complicated
nature of the
Asia pacific
to be listed
on the
1993 and within three years it achieved its first break through by out
licensing an anti-diabetes molecule to novo nor disk in march 1997.with
this very small but significant step, the Indian industry went through a
paradigm shift
in its
image
from being
innovators!
Through
drug discovery in
in the companys
company
manufactures
and
markets API(bulk
very promising
drug discovery
and
marketing
bulk
domestic(Indian)market to manufacturing
manufacture
overseas
bulk actives
such as
and exporting
methyldopa
to
the
difficult-to-
to highly
regulated
quality-low-cost
advantage
in delivering
safe
and effective
pharmaceuticals .
This transition although and often-perilous one, was made
possible thanks to the pioneering efforts of companies such as
Dr.
Reddys laboratories.
Today, Dr. Reddys continues its journey. Leveraging on its low
cost, high intellect advantage. Foraying
into new
markets
and new
businesses .
Taking
on new
challenges
and growing
capable . Each failure and each success renewing the sense of purpose
and
helping
the
company
working
company
continues its
and deliver a
breakthrough
make a difference to
peoples lives worldwide . and when it does that, it would only one the
beginning an yet it would be the most important step. As Lao Tzu
wrote long time ago, Even a 1000 mile journey starts with a single
step.
BUSINESSES :
47
DR. Reddys
core businesses
branded
formulations are
well established
with an impressive
pharmaceutical
ingredients
major
state-of the art facilities, which offer over 100 varieties of bulk actives
and several key intermediates. our
are
exported
both
in this
emerging as well as
business
segment
48
bulk actives
challenge
formulators
in regulated
markets .
Dr. Reddys offers an unparalleled portfolio to its customers ,
who include
products
innovators
and generic
formulators
200 scientists
working on process
innovation and
selection developing
the
techniques in the
central
to the
active
pharmaceutical ingredients
50
and
generics
in the world
target identification
screening.
51
and
through put
DIMENSIONS :
Chemisorbs drugs ltd. merged in to Dr. Reddys labs in the year
2000-01 restructured as strategic business units, and presently
notified as business units {BU}
o Bulk
o Branded formulation
o Generics
o R&D emerging business
o Corporate center
ORGANIZATION UNITS :
SBU BULK has 6 units
3 units in boll ram.
I unit in Jeedimetla.
1unit in miryalaguda.
1unit in pydi bhimavaram
CHART PRESENTATION
OF
DR.REDDYS
ORGANISATION
DIMENSIONS
52
Oncology
Biologys
53
QUALITY POLICY :
The policy undertaken in Dr. Reddys in the following steps
Customer focus :
They are committed to delegable customers by providing
products And services that exceed expectations consistently in terms
of quality Speed to mark, delivery and competitiveness.
Execution excellence :
We will constantly improve systems technologies information
regulatory compliances and technical support.
Competency building:
We
will ensure high level of competency by attracting and
retaining
Talented personnel in all areas through essential education and
Development.
Beneficial partnerships: We will develop and maintain mutually
beneficial relationships with all business associates and provide fasting
value to all stake holders.
KEY MILESTONES:2014 --- It has become one of the leading pharmaceutical company in
India in turnover and profitability.
54
Acquires
Roches API Business
at the
state -of-the-art
manufacturing site in Mexico with the total investment of USD
59 Million.
Announces the formation of Perl can Parma : Indias First
Integrated Drug Development Company.
Announces
Indias
first major co-development and
commercialization deal for its molecule BALAGLITZONE (DRF2593), with RHEO science .
Announces a unique partnership for the commercialization of
ANDAS
with ICICI Venture.
2011 --Acquires
in the
marketing agreement for OTC drugs with linier Health products in the
US.
2002 --Conducts its first overseas acquisitions BMS Laboratories Limited
and Meridian Healthcare in UK.
2001 ---
55
2000 --
DR.REDDYS Laboratories
becomes
Indias
third largest
1999 --Acquisition
of
the
1994 --56
BALANCE SHEET AS AT 31ST MARCH 2015 (All amounts in Indian rupees except
share data and where otherwise state)
PARTICULARS
SHEDULES
SOURCES OF FUNDS
Shareholders funds
Share capital
Reserves and surplus
1
2
Loan funds
Secured loans
Un secured loans
3
4
20(3)
APPLICATION OF FUNDS
Fixed asset and intangibles
Gross block
Less: accumulated depreciation and
amortization
57
AS AT 31ST
MARCH2015
AS AT 31ST
MARCH2014
840,865
47,277,814
48,118,049
839,561
42,894,005
34,022
4,589,052
4,623,074
19,225
3,279,794
3,299,019
868,575
53,609,698
577,404
47,609,989
17,502,108
(7,627,956)
12,911,921
(6,091,535)
43,733,566
Net block
Capital work-in-progress (including
capital advances)
Investment
Current assts loans and advances
Inventories
Sundry debtors
Cash and bank balance
Loans and advances
6
7
8
9
10
11
12
20
Notes to accounts
The schedules referred to above form
integral part of the balance sheet
9,874,152
6,820,386
2,457,106
12,331,258
19,306,197
2,806,081
9,626,467
8,302,126
6,409,343
8,977,086
5,373,417
8,921,846
29,681,692
4,875,836
10,557,008
14,567,111
7,044,177
37,044,132
6,808,568
900,881
7,709,449
29,972,243
6,334,275
1,028,461
7,362,736
29,681,396
53,609,698
47,609,989
PARTICULARS
DULE
INCOME
Sales, gross
Less: Excise duty on sales
Sales, net
License fees
Service income
Other income
13
58
FOR THE
YEARENDED 31ST
MARCH 2015
33 ,864,865
(558,308)
33,306,557
215,832
416,373
1,911,313
35,850,075
FOR THE
YEARENDED 31ST
MARCH 2014
38,280,381
(779,390))
37,500,991
1,744,737
447,040
1,150,2802
40,843,048
EXPENDITURE
Material costs
Conversion charges
Excise duty
Personal cost
Operating and other expenses
Research and development expenses
Provision for decline in the value of long
term investments
14
15
16
17
Finance charges
Depreciation and amortization
18
19
12,534,602
558,264
286,808
3,686,203
7,869,051
3,219,204
133,171
11,215,910
1,132,043
117,191
2,797,652
7,177,926
2,457,109
472,069
101,883
1,619,862
30,009,048
5,841,027
(1,088,808)
4,752,219
13,036,395
479,682
1,335,009
27,184,591
13,658,457
(1,889,864)
11,768,593
3,196,508
17,788,614
14,965,101
PARTICULARS
DULE
59
FOR THE
YEARENDED 31ST
MARCH 2015
FOR THE
YEARENDED 31ST
MARCH 2014
APPROPRIATION
Proposed dividend on equity share
Tax and proposed dividend
Dividend of previous year
Transfer to general reserve
Balance carried forward
Earnings for share
Basic par value Rs.5 par share
Diluted par value Rs.5par share
20(4)
630,648
107,179
604
475,222
16,574,961
17,788,614
629,671
107,013
242
1,176,859
13,051,316
14,965,101
28.27
28.09
74.23
73.74
SHEDULES BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH 2015
(All amounts in Indian rupees thousands, except share data and where otherwise stated)
60
Particulars
As At31march2015
As At 31march2014
1,000,000
1,000,000
840,865
839,562
839,560
839,561
840,865
839,561
839,561
SHEDULES BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH 2015
(All amounts in Indian rupees thousands, except share data and where otherwise stated)
Particulars
As
As
At31march2015
At31march2014
61
Capital reserve
Balance at the beginning and end of the year
Securities premium account
Balance at the beginning of the year
Add:- Received during the year on exercise of
employee stock options
Add:- Reserved during the year on issue of
American depository shares(ADS)
Less:- utilized for issue of shares
Less:-utilization to words ADS issue expenses
Employee stock options outstanding
Balance at the beginning of the year
Add : options granted during the year
Less : options forfeited during he year
Less : options exercised during the year
Balance at the end of the year (A)
Deferred stock compensation cost
Balance at the beginning of the year
Add : options granted during the year
Less: amortization during the year, net of
forfeiture
Less: options forfeited during he year
Balance at the end of the year(B)
(A)-(B)
General reserve
Balance at the beginning of he year
Add: transferred from P&L Account
Foreign currency translation reserve
Balance at the beginning of the year
Additions/deductions during the year
Hedging reserve
Additions/deductions during the year
Profit and loss account
Balance in P&L account
7,276
17,519,76
3
7,276
7,877,812
122,574
83,880
------------------17,642,337
10,169,700
(383,789)
(227,290)
17,519,763
448,486
401,502
(162,261)
(108,657)
579,070
261,053
292,251
(36,350)
(68,468)
448,486
220,882
401,502
(207,125)
(162,261)
252,998
146,952
292,251
(181,611)
(36,350)
220,882
326,072
227,604
12,137,044
475,222
12,612,266
10,960,185
1,176,859
12,137,044
(48,498)
173,334
124,336
(10,064)
-----(48,498)
48,998
------
(10,064)
16,574,961
-----13,051,316
47,277,154
42,894,005
SHEDULES BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH 2015
(All amounts in Indian rupees thousands, except share data and where otherwise stated)
Particulars
As
As
At31march2015
At31march2014
62
13,305
19,255
20,717
------
34,022
19,255
SHEDULES BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH 2015
(All amounts in Indian rupees thousands, except share data and where otherwise stated)
Particulars
As
As
At31march2015
At31march2014
SCHEDULE 4 UN SECURED LOANS
Sales tax deferment loan from the government
of Andhra pradesh(interest free )
63,246
68,708
4,090,878
434,928
2,684,700
526,386
4,589,052
3,279,794
From banks
Packing credit loans
Bank over draft
63
SHEDULES BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH 2015
(All amounts in Indian rupees thousands, except share data and where otherwise stated)
Particulars
As
As
At31march2015 At31march2014
64
SCHEDULE 6 : INVESTMENTS
Brought forward
Unquoted trade investments
In joint venture
Equity shares held in kunshan rotham reddy
pharmaceutical co ltd china
In other companies
28,693(previous year 28,693)ordinary shares of
roubles 1,000 each of biomed Russia ltd
In capital of partnership firm (a subsidiary)
Globe enterprises ,India
(a partnership firm with Dr reddys holdings private
ltd organized under the Indian
Partnership act 1932 wherein the company and Dr
reddys holdings private ltd share the profit &loss
for year in the ratio of 95:5(respectively)
Partner capital account :
Dr. reddys laborataries limited Rs 2,396
Dr.reddys holdings private limited Rs.101
Non trade
(a)in debentures
5(previous year :5 ) 0-9%based on offer side fixed
rate of 12 month (MIOI S) convictable debentures
of Rs 50,000,000 each of Citicorp finance India ltd
10(previous year 10)0-9.5%based on offer side
fixed rate of 12 month MIOIS convertible
debentures of Rs 50,000,000 each of Citicorp
finance India ltd
5(previous year:5)0-12.35%based on offer side
fixed rate of 12month MIOIS convertible
debentures of rs 100,000,000 each city crop
finanindia ltd
15,544,012
7,914,423
429,048
429,029
65,557
65,557
2,396
2,396
250,000
250,000
500,000
500,000
500,000
500,000
65
Particulars
As
At31march2015
As
At31march2014
2,000
2,000
965
965
2,400
2,400
-----
20
17,296,378
9,666,809
200,663
-------
297,785
------
509,098
------
1,000,000
------
1,000,000
------
500,127
-------
3,507,673
20,807,147
------9,669,905
(1,500,950)
19,306,197
(1,367,779)
8,302,126
3,096
20,804,051
19,203
3,515,963
3,096
9,666,809
11,993
61
SHEDULES BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH 2015
(All amounts in Indian rupees thousands, except share data and where otherwise stated)
PARTICULARS
As
66
As
At31march2015
SHEDULE 7 INVENTORIES
Stores, spares and packing materials
Raw materials
Work-in progress
Finished good
PARTICULARS
SCHEDULE 8 SUNDRY DEBTORS
(unsecured )
Debts outstanding for period exceeding six
months
Considered good
Considered doubtful
Other debts
Considered good
Less :provision for doubtful debts
At31march2014
596,214
2,533,789
2,226,873
1,052,467
435,663
2,099,552
1,643,466
647,155
6,409,343
4,875,836
As
At31march2015
As
At31march2014
349,164
213,342
455,156
211,240
8,627,922
9,190,428
10,101,852
10,786,248
(213,342)
8,977,086
(211,240)
10,557,008
SHEDULES BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH 2015
(All amounts in Indian rupees thousands, except share data and where otherwise stated)
SHEDULES BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH 2015
(All amounts in Indian rupees thousands, except share data and where otherwise stated)
67
PARTICULARS
SCHEDULE 9 CASH AND BANK
BALENCES
Cash in hand
Balances with schedule banks
In current account
In EEFC current account
In deposit account
In un claimed dividend account
In un claimed fractional share pay order
account
Balances with non-schedule bank India
Incurrent accounts
As
At31march2015
As
At31march2014
17,490
5,284
454,228
69,686
4,701,537
14.372
666
579,622
673,180
13,081,066
12,620
666
115,438
5,373,417
214,633
14,567,111
SHEDULES BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH 2015
(All amounts in Indian rupees thousands, except share data and where otherwise stated)
68
PARTICULARS
As
As
At31march2015 At31march2014
5,536,287
4,872,227
20,158
89,716
382,152
12,957
27,985
1,937,289
307,058
16,317
5,630
1,102,344
24,760
874,113
106,145
----546,888
103,997
Considered doubtful
Advances towards investments
Staff loans and advances
Loans and advances to a wholly owned subsidiary
company and associate
Other advances recoverable in cash or in kind of
for value to be received
8,056
6,500
361,732
8,056
6,500
357,699
54,507
9,352,641
52,671
7,469,103
(430,795)
(424,926)
8,921,846
7,044,177
SHEDULES BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH 2015
(All amounts in Indian rupees thousands, except share data and where otherwise stated)
69
PARTICULARS
SCHEDULE 11 CURRENT LIABILI9TIES
Sundry creditors
Due to small scale industrial undertakings
Others
Payable to subsidiary companies and joint venture
Interest accrued but not due on loan
Unclaimed dividends*
Trade deposits
Other liabilities
As At31march2015
31,821
6,100,949
492,376
5,326
14,372
38,095
125,629
6,808,568
As At31march2014
27,086
5,957,837
211,071
1,226
12,620
40,445
83,990
6,334,275
SHEDULES BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH 2015
(All amounts in Indian rupees thousands, except share data and where otherwise stated)
PARTICULARS
As At31march2015 As At31march2014
SCHEDULE 12 PROVISIONS
Proposed dividend
Tax on proposed dividend (including dividend tax)
Provision for tax (net of advance tax Rs.
3,611,941,previous year Rs.2,832,253)
630,648
107,179
629,621
107,013
106,183
234,902
30,191
26,680
900,881
21,661
35,214
1,028,461
Provision for
Gratuity
Leave enhancement
PARTICULARS
As
At31march2015
As
At31march2014
654,02
489,058
258,773
212,825
23,315
16,925
110,269
200,105
---2,754
447,677
197,466
1,911,313
3,000
21,941
869
206,994
45,618
1,780
119,386
67,822
1,169,293
PARTICULARS
SCHEDULE 14 MATERIAL COSTS
(a)Net (increase )decrease in stock
Opening
Work in progress
Finished good
Closing
Work in process
Finished good
Net (increase )
(b)Raw materials consumed*
Opening stock of raw materials
Add: purchases
Less: closing stock
As At31march2015
1,643,466
697,155
2,226,873
1,052,467
2,099,552
9,200,496
11,300,048
(2,533,789)
2,340,621
3,279,340
(938,719)
As At31march2014
1,278,837
829,504
1,643,466
697,155
2,108,341
2,340,621
(232,280)
1,978,164
8,996,886
10,975,050
8,766,259 (2,099,552)
8,875,498
2,013,205
1,046,408
2,693,857
12,534,60
2
1,526,284
11,215,910
PARTICULARS
As
At31march2015
As
At31march2014
2,875,341
200,923
402,814
207,125
2,189,197
127,651
299,193
181,611
3,686,203
2,797,652
PARTICULARS
SCHEDULE 16 OPERATING AND
OTHER EXPENSES
Power and fuel
Repairs and maintenance
Buildings
Plant and machinery
Others
Rent
Rates and taxes
Insurance
Traveling and conveyance
Communication
Advertisements
Commission on sales
Carriage out wards
Other selling expenses
Printing and stationery
Donations
Legal and professional
Bad debts written off
Provision for doubtful advances
Provision for doubtful debts
Directors sitting fees
Directors remuneration
Auditors remuneration
Bank charges
Exchange loss ,net
Sundry expenses
As At31march2015
As At31march2014
771,163
578,289
53,199
745,197
395,309
111,381
56,998
180,666
407,064
104,045
85,941
210,606
1,102,033
2,355,162
77,211
125,455
538,817
30,468
5,869
2,102
365
183,770
7,872
45,018
3,319
270,021
7,869,051
79,100
424,287
290,147
91,903
31,550
193,690
317,119
82,580
33,025
204,619
987,239
2,009,118
80,871
79,181
660,474
7,467
197,671
41,900
350
374,361
8,465
39,883
.
364637
7,177,926
PARTICULARS
As
At31march2015
As
At31march2014
1,033,282
885,372
880,875
184,781
102,965
221,704
797,023
1,237,999
833,626
92,262
78,182
243,422
3,308,709
3,282,514
89,505
3,219,204
825,405
2,457,109
PARTICULARS
As
At31march2015
As
At31march2014
645,274
(24,760)
1,729,971
..
291,171
90,039
177,123
1,088,808
69,854
1,889,864
CASH FROM OPERATION for the year ended 31st march 2015
(All amounts in Indian rupees thousands, except share data and where otherwise stated)
76
31St MARCH
2015
PARTICULAR
Profit before taxation
Add:- Non operating expenses
Depreciation and amortization
Provision for wealth tax
Bad debts written off
Income from redemption of mutual funds
units Amortization of deferred stock
compensation expense, net
Unrealized foreign exchange (gain) / loss
Provision for decline in the value of longterm investments, net
Interest income
Finance charges
(Profit) / loss on sale of fixed assets, net
Provision for doubtful debts
Provision for doubtful advances
Operating cash flows before working
capital changes
Less:- Non operational income
Increase / Decrease in sundry debtor
Increase in inventories
Increase in loans and advances
Decrease in current liabilities and provisions
Cash generated from operations
Less:-Income taxes paid
Cash from operations
77
31St
MARCH
2014
5,841,027 13,658,457
1,619,862
2,574
30,468
(110,269)
207,125
1,335,009
2,147
7,467
(869)
181,611
214,067
133,171
(151,539)
472,069
(936,117)
101,883
3,319
2,102
5,689
7,115,081
(704,883)
479,682
(45,618)
41,900
197,671
15,473,10
4
1,446,616
1,533,507)
4,618,321
1,185,982)
444,868
(+645,411)
683,341
6,487,619 (+392,864)
928,931 10,119,43
8
5,558,688
1,181,490
8,937,948
CASH FLOW STATEMENT for the year ended 31st march 2015
(All amounts in Indian rupees thousands, except share data and where otherwise stated)
PARTICULAR
31ST MARCH 2015
31ST MARCH 2014
SOURCES OF CASH
Opening balance
14,567,111
6,509,429
Proceed from issue of share
15,220
10,029,571
capital
Less:-Repayment of long term
19,921
8,193
barrowing
Less:- Repayment of short term
barrowing
1,941,458 (-1,946,159) 7,071,859
2,949,519
Proceed from short term
3,242,740
1,147,500
barrowing
Less:- Interest paid
97,783
493,618
Less:- Dividend paid (including
2,407,669
216,386
737,288
437,497
dividend tax)
Cash from operation
5.558.688
8,937,948
20,587,309
18,613,282
APPLICATIONS OF CASH
Cash in hand
17,490
5,284
Balance with bank
In current A\C
569,666
794,294
In deposit A\C
4,700,269
13,079,445
In EEFC current A\C
69,686
673,180
In unclaimed dividend A\C
14,372
12,620
In unclaimed fractional share
666
666
pay order A\C
In margin money
1,268
5,355,867
1,621
14,561,827
Purchase of fixed assets
4,548,560
3,884,309
Less:- Proceeds from sale of
fixed assets
4,520,819
3,804,272
27,741
80,637
Purchase of investment
23,489,477
745,971
Less:- proceeds form sale of
11,026,973
414,102
12,462,504
331,869
investment
Loan and advances given to
525,268
454,056
subsidiaries joint ventures &
associates
212,020
(-245,196)
737,288
699,252
Less:- Interest received
Effected exchange given on cash
on cash equivalences.
78
54,594
72,993
20,587,309
18,613,282
In cash from operations the net profit during the year amount is Rs. 5,841,027.
Compared to lost year cash from operation on decreasing due to decreasing in non
operation income.
79
BLANCE SHEET AS AT 31ST MARCH 2014 All amounts in India rupees thousands,
except share data and where otherwise state)
PARTICULARS
SHEDULES
AS AT 31ST
MARCH2014
AS AT 31ST
MARCH2013
SOURCES OF FUNDS
Shareholders funds
Share capital
Reserves and surplus
1
2
839,561
42,894,005
383,473
22,237,944
Loan funds
Secured loans
Un secured loans
3
4
43,733,566
------------------19,225
3,279,794
22,621,417
-------------------1,451,285
7,787,410
1
9(3)
3,299,019
577,404
9,238,695
530,847
47,609,989
32,390,959
12,911,921
(6,091,535)
10,528,977
(4,910,826)
96,820,386
2,806,081
5,618,151
1,129,160
9,626,467
8,302,126
6,747,311
8,217,937
4,875,836
10,557,008
14,567,111
7,045,430
37,045,385
4,430,968
5,812,160
6,509,429
6,776,456
23,529,013
6,570,430
793,559
7,363,989
29,681,396
47,609,989
5,532,,648
570,654
6,103,302
17,425,711
32,390,959
APPLICATION OF FUNDS
Fixed asset and intangibles
Gross block
Less: accumulated depreciation and
amortisation
Net block
Capital work-in-progress (including
capital advances)
Investment
Current assts loans and advances
Inventories
Sundry debtors
Cash and bank balance
Loans and advances
Current liabilities and provisions
Current liabilities
Provisions
6
7
8
9
10
11
12
19
80
PARTICULARS
DULE
INCOME
Sales, gross
Less: Excise duty on sales
Sales, net
License fees
Service income
Other income
13
EXPENDITURE
Material costs
Conversion charges
Excise duty
Personal cost
Operating and other expenses
Research and development expenses
Loss on sale of non trade investment ,net
Provision for decline in the value of long
term investments
Investment written off
14
15
16
Finance charges
Depreciation and amortisation
17
18
81
FOR THE
YEARENDED
31ST MARCH
2014
FOR THE
YEARENDED 31ST
MARCH 2013
38,280,381
(779,390))
37,500,991
1,744,737
447,040
1,150,2802
40,843,048
20,955,141
(910,673)
20,044,468
29,982
60,550
1,230,711
21,365,711
11,215,910
1,132,043
117,191
2,797,652
7,177,926
2,457,109
--472,069
7,561,526
514,234
76,454
2,128,442
5,200,993
1,725,404
18,434
175,000
------
----
479,682
1,335,009
27,184,591
13,658,457
(1,889,864)
11,768,593
3,196,508
214,241
1,113,337
18,728,065
2,637,646
(526,407)
2,111,239
1,815,464
14,965,101
3,926,703
PARTICULARS
DULE
APPROPRIATION
Proposed dividend on equity share
Tax and proposed dividend
Dividend of previous year
Transfer to general reserve
Balance carried forward
Earnings for share
Basic par value Rs.5 par share
Diluted par value Rs.5par share
19(4)
82
FOR THE
YEARENDED
31ST MARCH
2014
FOR THE
YEARENDED 31ST
MARCH 2013
629,671
107,013
242
1,176,859
13,051,316
14,965,101
383,473
53,782
114
211,124
3,278,210
3,926,703
74.23
73.74
13.79
13.72
SHEDULES BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH 2014
(All amounts in Indian rupees thousands, except share data and where otherwise stated)
As At31march2014
As At 31march2013
Particulars
1,000,000
500,000
839,562
383,474
839,560
83
383,472
839,561
839,561
383,473
383,473
SHEDULES BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH 2014
(All amounts in Indian rupees thousands, except share data and where otherwise stated)
Particulars
As
As
At31march2014
At31march2013
SCHEDULE 2: RESERVES AND SURPLUS
Capital reserve
Balance at the beginning and end of the year
Securities premium account
Balance at the beginning of the year
Add : Received during the year on exercise of
employee stock options
Add : Reserved during the year on issue of
American depository shares(ADS)
Less: utilized for issue of shares
Less :utilization to words ADS issue expenses
Employee stock options outstanding
Balance at the beginning of the year
Add : options granted during the year
Less : options forfeited during he year
Less : options exercised during the year
Balance at the end of the year (A)
Deferred stock compensation cost
Balance at the beginning of the year
Add : options granted during the year
Less: amortization during the year, net of
forfeiture
Less: options forfeited during he year
Balance at the end of the year(B)
7,276
7,275
7,877,812
7,734,005
83,880
143,807
10,169,700
(383,789)
(227,290)
17,519,763
..
..
7,887,812
261,053
292,251
(36,350)
(68,468)
448,486
275,402
155,600
(98,900)
(71,059)
261,053
146,952
292,251
(181,611)
(36,350)
220,882
222,965
155,600
(133,073)
(71,049)
146,592
227,604
114,161
10,960,185
1,176,859
12,137,044
(48498)
48998
13,051,316
42,894,005
10,749,061
211,124
10,960,185
..
..
..
3,278,210
22,237,994
(A)-(B)
General reserve
Balance at the beginning of he year
Add: transferred from P&L Account
Foreign currency translation reserve
Balance at the beginning of the year
Additions/deductions during the year
Profit and loss account
Balance in P&L account
84
SHEDULES BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH 2014
(All amounts in Indian rupees thousands, except share data and where otherwise stated)
Particulars
As
As
At31march2014
At31march2013
SCHEDULE 3 SECURED LOANS
Loan from Indian renewable energy
19,255
25,145
development agency
Short term loans from banks
Loan from state bank of India
.
19,255
1,426,140
1,451,285
SHEDULES BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH 2014
(All amounts in Indian rupees thousands, except share data and where otherwise stated)
Particulars
As
As
At31march2014
At31march2013
SCHEDULE 4 UN SECURED LOANS
Sales tax deferment loan from the government
of Andhra pradesh(interest free )
68,708
70,980
2,684,700
526,386
6,893,018
823,412
3,279,794
7,787,410
From banks
Packing credit loans
Bank over draft
85
86
SHEDULES BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH 2014
(All amounts in Indian rupees thousands, except share data and where otherwise stated)
Particulars
SCHEDULE 6 : INVESTMENTS
Brought forward
Unquoted trade investments
In joint venture
Equity shares held in kunshan rotham reddy
pharmaceutical co ltd china
In other companies
28,693(previous year 28,693)ordinary shares of
roubles 1,000 each of biomed Russia ltd
Incapital of partnership firm (a subsidiary)
Globe enterprises ,India
(a partnership firm with Dr reddys holdings private
ltd organized under the Indian
Partnership act 1932 wherein the company and Dr
reddys holdings private ltd share the profit &loss
for year in the ratio of 95:5(respectively)
Partner capital account :
Dr. reddys laborataries limited Rs 2,396
Dr.reddys holdings private limited Rs.101
Non trade
(a)in debentures
5(previous year :5 ) 0-9%based on offer side fixed
rate of 12 month mumbai inter bank
Overnite interest swap (MIOI S) convictable
debentures of Rs 50,000,000 each of Citicorp
finance India ltd
10(previous year 10)0-9.5%based on offer side
fixed rate of 12 month MIOIS convertible
debentures of Rs 50,000,000 each of Citicorp
finance India ltd
5(previous year:5)0-12.35%based on offer side
fixed rate of 12month MIOIS convertible
debentures of rs 100,000,000 each city crop
finanindia ltd
87
As
At31march2014
As
At31march2013
7,914,423
7,447,439
429,029
339,774
65,557
65,557
2,396
2,396
250,000
250,000
500,000
500,000
500,000
500,000
As
At31march2014
As
At31march2013
2,000
2,000
965
965
2,400
2,400
20
20
9,666,809
9,110,551
9,669,905
(1,367,779)
9,113,647
(859,710)
8,302,126
8,217,937
3,096
9,666,809
11,993
61
3,096
9,110,551
11,582
64
88
SHEDULES BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH 2014
(All amounts in Indian rupees thousands, except share data and where otherwise stated)
PARTICULARS
As
At31march2014
SHEDULE 7 INVENTORIES
Stores, spares and packing materials
Raw materials
Work-in progress
Finished good
As
At31march2013
435,663
2,099,552
1,643,466
647,155
344,463
1,978,164
1,278,837
829,504
4,875,836
4,430,968
SHEDULES BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH 2014
(All amounts in Indian rupees thousands, except share data and where otherwise stated)
PARTICULARS
As
At31march2014
89
As
At31march2013
455,156
211,240
144,267
169,340
10,101,852
10,786,248
(211,240)
5,667,893
5,667,893
(169,340)
10,557,008
5,812,160
SHEDULES BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH 2014
(All amounts in Indian rupees thousands, except share data and where otherwise stated)
As
At31march2014
PARTICULARS
SCHEDULE 9 CASH AND BANK
BALENCES
Cash in hand
Balances with schedule banks
In current account
In EEFC current account
In deposit account
In un claimed dividend account
In un claimed fractional share pay order account
Balances with non-schedule bank India
Incurrent accounts
90
As
At31march2013
5,284
9
,333
579,622
673,180
13,081,066
12,620
666
160,581
40,185
6,254,412
12,110
669
214,633
14,567,111
32,139
6,509,429
SHEDULES BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH 2014
(All amounts in Indian rupees thousands, except share data and where otherwise stated)
PARTICULARS
As
As
At31march2014 At31march2013
SCHEDULE 10 LOANS AND ADVENCES
(un secured)
Considered good
Loans and advances to wholly owned subsidiary
companies step down subsidiary companies joint
venture and associates
Advance recoverable from perlecan pharma private
ltd
Advances to material suppliers
Staff loans and advances
Interest accrued on investments
Other advance recoverable in cash or in kind of or
for value to be received
Advance tax (net of provision for current taxes Rs
3,068,408 previous year Rs 280,674)
MAT credit entitlement
Balances with customers central excise etc.
Deposits
Considered doubtful
Advances towards investments
Staff loans and advances
Loans and advances to a wholly owned subsidiary
company and associate
Other advances recoverable in cash or in kind of
for value to be received
Less: provision for doubtful debts
91
4,872,227
4,600,342
89,716
234,541
307,048
16,317
5,360
1,102,344
310,483
20,339
..
670,728
1,253
334,536
.
546,888
103,997
141,082
371,539
92,866
8,056
6,500
357,699
8,056
6,500
183,431
52,671
29,268
7,470,356
(424,926)
7,045,430
7,003,711
(227,255)
6,776,456
SHEDULES BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH 2014
(All amounts in Indian rupees thousands, except share data and where otherwise stated)
PARTICULARS
As
As
At31march2014 At31march2013
SCHEDULE 11 CURRENT LIABILI9TIES
Sundry creditors
Due to small scale industrial undertakings
Others
Payable to subsidiary companies and joint venture
Interest accrued but not due on loan
Unclaimed dividends*
Trade deposits
Other liabilities
27,086
5,957,837
211,071
1,226
12,620
40,445
320,145
6,570,430
27,569
5,157,920
226,187
15,162
12,110
41,241
52,459
5,532,648
SHEDULES BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH 2014
(All amounts in Indian rupees thousands, except share data and where otherwise stated)
PARTICULARS
As
As
At31march2014 At31march2013
SCHEDULE 12 PROVISIONS
Proposed dividend
Tax on proposed dividend (including dividend tax)
629,621
107,013
383,473
53,782
21,661
35,214
..
133,399
793,559
570,654
Provision for
Gratuity
Leave enhancement
92
93
..
29
489,058
567,380
212,825
36,213
3,000
21,941
869
206,994
45,618
1,780
119,386
48,809
85,874
26,433
14,510
101,589
330,148
3,982
64,553
1,150,280
1,230,711
1,278,837
829,504
1,643,466
697,155
1,978,164
8,996,886
10,975,050
(2,099,552)
94
2,108,341
2,340,621
(232,280)
8,875,498
1,008,575
732,561
1,278,837
829,504
992,425
5,980,521
6,972,946
(1,978,164)
1,741,136
2,108,341
(367,205)
4,994,782
1,046,408
762,062
1,526,284
11,215,910
2,171,882
7,561,526
95
2,189,197
127,651
299,193
181,611
1,690,864
84,825
219,680
133,073
2,797,652
2,128,442
96
578,289
482,293
79,100
424,287
290,147
91,903
31,550
193,690
317,119
82,580
33,025
204,619
987,239
2,009,118
80,871
79,181
660,474
7,467
197,671
41,900
350
374,361
8,465
39,883
.
364637
22,373
235,264
186,524
68,338
58,885
167,904
209,627
69,335
39,785
189,848
747,926
1,453,909
55,739
60,039
628,969
27,349
11,793
12,852
360
63,159
8,602
32,015
103,574
264531
7,177,926
5,200,993
323
318,385
161,297
479,682
175,477
38,441
214,241
97
1,729,971
..
279,418
(141,082)
90,039
319,275
69,854
68,795
1,889,864
526,407
CASH FROM OPERATION for the year ended 31st march 2014
(All amounts in Indian rupees thousands, except share data and where otherwise stated)
PARTICULAR
31ST March 2014
31ST March 2013
Profit before taxation
Add:-Non operating expenses
Depreciation and amortization
Provision for wealth tax
Bad debts written off
Income from redemption of mutual funds
units
Amortization of deferred stock
compensation expense, net
Un realized foreign exchange (gain)/loss
Loss on sale of long term investment, net
Provision for decline in the value of long
term investments
Interest income
Divided income
Finance charge
Profit and sale of fixed assets net
Provision for doubtful debt
Provision for doubtful advances
Less:- Non operating income
Increase in sundry debtors
Increase in inventories
Increase in loans & advances
Increase in current liabilities & provisions
Cash generate from operations
Less:- Income tax paid
Cash from operations
98
13,658,457
2,637,646
1,335,009
2,147
7,467
(869)
1,113,337
1,505
27,349
(14,510)
181,611
133,073
(151,539)
----472,069
64,192
18,434
175,000
(704,883)
--479,682
(45,618)
41,900
197,671
15,473,104
(689,467)
(29)
214,241
(33,148)
12,852
11,793
3,375,268
4,618,321
444,868
683,341
(+392,864)
1,698,293
1,392,860
762,117
(+1,483,140)
10,119,438
1,181,490
8,937,948
1,005,138
208,411
767,727
CASH FLOW STATEMENT for the year ended 31st march 2014
(All amounts in Indian rupees thousands, except share data and where otherwise stated)
PARTICULAR
31ST MARCH 2014
31ST MARCH 2013
SOURCES OF CASH
8,917,227
Opening balance
6,509,571
Proceed from issue of share
10,029,571
73,638
capital net of issue of expenses
Less:-Repayment of long term
8,193
9,882
barrowing
Less:- Repayment of short term
barrowing
7,071,859
2,949,519 7,700,859 (-7,637,103)
Proceed from short term
1,147,500
14,202,482
barrowing
493,618
199,079
Less:- Interest paid
216,386
13,561,035
437,497
436,368
Less:- Dividend paid (including
dividend tax)
8,937,948
796,727
Cash from operation
18,613,282
15,643,886
APPLICATIONS OF CASH
Cash in hand
Balance with bank
In current A\C
In deposit A\C
In EEFC current A\C
In unclaimed dividend A\C
In unclaimed fractional share
pay order A\C
In margin money
Purchase of fixed assets
Less:- Proceeds from sale of
fixed assets
Purchase of investment
Less:- proceeds form sale of
investment
Loan and advances given to
subsidiaries joint ventures &
associates
Less:- Interest received
Less:-Dividend received
Effected exchange given on cash
on cash equivalences.
5,284
794,294
13,079,445
673,180
12,620
666
1,621
3,884,309
80,637
745,971
331,869
192,720
6,252,361
40,185
12,110
669
14,561,827
3,804,272
2,051
1,843,207
683,727
414,102
10,020,482
5,274,899
454,056
699,252
---
6,500,096
1,185,480
4,745,583
3,913,477
(-245,196)
72,993
18,613,282
99
9,333
705,087
29
3,208,361
(-4,967)
15,643,88
The income tax is paid, but the decreases of cash available for business. And
hence it is an application of cash.
In cash from operations the net profit during the year amount is Rs.13,658,457
100
1. Even throw the company have good profitability the company shows
concentrating on operating expenses to decrease in profitability. Compared to last
year it is decreased.
2. The company should raise its equity share capital to fit and to company with
generally accepted norms.
3. The current ratio of the company is 3.8:1 which is moderate. It needs to be further
improved.
4. The company should keep its inventory at optimum levels. Trade creditors should
also be kept at minimum that is to say that trade creditors should be paid and the
company should avail cash discount on account of prompt payment which helps
in improving the profitability and maintaining, the current ratio at a rate higher
then the present.
5. The working capital is better, the excess of working capital converted in to
purchase of fixed assets.
CONCLUSIONS
101
1. By the observation we can say that the profit before tax is decreasing in this year,
i.e. the profit before tax previous year 2014 is 13,658,457,and in the present year
2015 is 5,841,027.
2. It can be concluded from the cash flow statement that the company should rise,
the long term funds rising by share capital.
3. The overall financial position of the Dr. reddys labs Ltd is satisfactory and needs
to be improved further in the future.
4. The debt equity ratio decreased, i.e. by the observation we can say the company is
in a position to pay all the debts.
5. The working capital increased, the excess of working capital is a converted in to
the purchase of fixed assets.
BIBLIOGRAPHY
Financial management - Khan - Jain
102
103