Consolidated Balance Sheet of MSN Laboratories ------------------- in Rs. Cr.

-------------------
Mar '14 Mar '13 Mar '12 Mar '11 Mar

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds
Total Share Capital 85.10 84.90 84.80 84.60 84.40
Equity Share Capital 85.10 84.90 84.80 84.60 84.40
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Init. Contribution Settler 0.00 0.00 0.00 0.00 0.00
Preference Share Application Money 0.00 0.00 0.00 0.00 0.00
Employee Stock Opiton 0.00 0.00 0.00 0.00 0.00
Reserves 7,780.10 6,284.20 4,904.20 3,947.30 3,692.40
Networth 7,865.20 6,369.10 4,989.00 4,031.90 3,776.80
Secured Loans 94.70 80.20 30.80 28.30 26.90
Unsecured Loans 4,041.50 3,084.30 3,199.90 2,340.80 1,457.10
Total Debt 4,136.20 3,164.50 3,230.70 2,369.10 1,484.00
Minority Interest 0.00 0.00 0.00 0.00 0.00
Policy Holders Funds 0.00 0.00 0.00 0.00 0.00
Group Share in Joint Venture 0.00 0.00 0.00 0.00 0.00
Total Liabilities 12,001.40 9,533.60 8,219.70 6,401.00 5,260.80
Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds
Gross Block 7,185.90 6,156.40 5,214.40 4,844.80 6,446.80
Less: Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Less: Accum. Depreciation 2,545.10 2,105.80 1,802.70 1,459.30 4,094.60
Net Block 4,640.80 4,050.60 3,411.70 3,385.50 2,352.20
Capital Work in Progress 638.80 565.30 708.50 575.20 762.20
INVESTMENTS 1,066.80 197.00 207.90 0.90 358.00
Inventories 2,418.80 2,170.70 1,943.30 1,599.20 1,339.40
Sundry Debtors 3,325.30 3,180.40 2,536.80 1,761.10 1,159.90
Cash and Bank Balance 2,300.60 2,017.10 1,606.10 575.10 332.90
Total Current Assets 8,044.70 7,368.20 6,086.20 3,935.40 2,832.20
Loans and Advances 1,638.50 1,306.10 909.90 1,066.10 728.90
Fixed Deposits 0.00 0.00 0.00 0.00 327.10
Total CA, Loans & Advances 9,683.20 8,674.30 6,996.10 5,001.50 3,888.20
Deferred Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 3,156.20 3,228.10 2,574.40 2,120.10 1,749.60
Provisions 872.00 725.50 530.10 442.00 350.20
Total CL & Provisions 4,028.20 3,953.60 3,104.50 2,562.10 2,099.80
Net Current Assets 5,655.00 4,720.70 3,891.60 2,439.40 1,788.40
Minority Interest 0.00 0.00 0.00 0.00 0.00
Group Share in Joint Venture 0.00 0.00 0.00 0.00 0.00
Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00
Total Assets 12,001.40 9,533.60 8,219.70 6,401.00 5,260.80

Contingent Liabilities 693.40 403.80 812.20 139.30 756.00

Book Value (Rs) 462.36 375.01 294.23 238.22 223.68

Balance Sheet of MSN Laboratories ------------------- in Rs. Cr. -------------------

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds
Total Share Capital 85.10 84.90 84.80 84.60 84.40
Equity Share Capital 85.10 84.90 84.80 84.60 84.40
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 9,243.90 7,698.50 6,633.00 5,935.60 5,830.20
Networth 9,329.00 7,783.40 6,717.80 6,020.20 5,914.60
Secured Loans 1.30 3.50 0.50 0.70 0.80
Unsecured Loans 2,663.20 1,585.60 1,532.90 1,444.10 562.40
Total Debt 2,664.50 1,589.10 1,533.40 1,444.80 563.20
Total Liabilities 11,993.50 9,372.50 8,251.20 7,465.00 6,477.80
Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds
Gross Block 4,802.70 4,121.70 3,507.80 3,025.00 2,425.70
Less: Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Less: Accum. Depreciation 2,054.40 1,734.70 1,611.00 1,334.00 1,110.10
Net Block 2,748.30 2,387.00 1,896.80 1,691.00 1,315.60
Capital Work in Progress 576.10 423.20 637.60 570.40 745.40
INVESTMENTS
2,806.50 2,379.20 2,477.70 2,462.00 2,652.70

Inventories 1,592.10 1,526.50 1,326.70 1,063.20 897.40

Sundry Debtors 4,561.50 2,963.90 1,943.50 1,770.50 1,060.50
Cash and Bank Balance 665.10 919.10 93.10 66.20 47.90
Total Current Assets 6,818.70 5,409.50 3,363.30 2,899.90 2,005.80
Loans and Advances 1,558.50 1,390.20 1,291.40 1,663.80 1,321.40
Fixed Deposits 0.00 0.00 755.90 0.00 320.10
Total CA, Loans & Advances 8,377.20 6,799.70 5,410.60 4,563.70 3,647.30
Deferred Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 2,001.60 2,165.40 1,534.30 1,565.20 1,543.80
Provisions 513.00 451.20 637.20 256.90 339.40
Total CL & Provisions 2,514.60 2,616.60 2,171.50 1,822.10 1,883.20
Net Current Assets 5,862.60 4,183.10 3,239.10 2,741.60 1,764.10
Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00
Total Assets 11,993.50 9,372.50 8,251.20 7,465.00 6,477.80

Contingent Liabilities 2,051.80 2,097.30 2,018.90 1,526.00 2,016.10

Book Value (Rs) 548.41 458.29 396.19 355.69 350.30

BSE
NSE
 Mar
Mar '13 Mar '12 Mar '11 Mar '1
'14

INVESTMENT Valuation Ratios

Face Value 5.00 5.00 5.00 5.00 5.0

Dividend Per Share 18.00 15.00 13.75 11.25 11.2

162.3
Operating Profit Per Share (Rs) 116.92 109.80 72.05 64.4
5

571.8
Net Operating Profit Per Share (Rs) 496.60 394.33 306.55 260.3
7

Free Reserves Per Share (Rs) -- -- 380.00 346.32 341.1

Bonus in Equity Capital 65.64 65.80 65.87 66.03 66.1

Profitability Ratios

Operating Profit Margin(%) 28.38 23.54 27.84 23.50 24.7

Profit Before Interest And Tax Margin(%) 24.10 19.50 23.11 18.31 18.9

Gross Profit Margin(%) 24.47 19.83 23.34 18.72 19.7

Cash Profit Margin(%) 23.41 18.40 22.38 21.99 22.1

Adjusted Cash Margin(%) 23.41 18.40 22.38 21.99 22.1

Net Profit Margin(%) 19.56 14.75 13.51 16.84 18.4

Adjusted Net Profit Margin(%) 19.56 14.75 13.51 16.84 18.4

Return On Capital Employed(%) 21.11 19.36 19.22 14.20 15.8

Return On Net Worth(%) 20.71 16.25 13.58 14.84 14.3

Adjusted Return on Net Worth(%) 20.71 16.25 17.42 14.81 13.0

548.4
Return on Assets Excluding Revaluations 458.29 396.19 355.69 350.3
1

548.4
Return on Assets Including Revaluations 458.29 396.19 355.69 350.3
1

Return on Long Term Funds(%) 24.75 23.29 21.93 16.22 17.3

Liquidity And Solvency Ratios

Current Ratio 1.96 1.62 1.70 1.66 1.4

Quick Ratio 2.70 2.02 1.84 1.91 1.4

Debt Equity Ratio 0.29 0.20 0.23 0.24 0.1

Long Term Debt Equity Ratio 0.10 -- 0.08 0.09

Debt Coverage Ratios

Interest Cover 32.35 29.55 25.22 220.90 250.7

Total Debt to Owners Fund 0.29 0.20 0.23 0.24 0.1

Financial Charges Coverage Ratio 37.21 34.65 27.86 134.85 79.3

Financial Charges Coverage Ratio Post Tax 30.54 26.71 19.12 118.99 68.9

Management Efficiency Ratios

Inventory Turnover Ratio 6.11 5.53 5.54 5.36 5.3

Debtors Turnover Ratio 2.59 3.44 3.60 3.67 3.5

INVESTMENTS Turnover Ratio 6.11 5.53 5.54 5.36 5.3

Fixed Assets Turnover Ratio 2.05 2.07 1.94 1.75 1.8

Total Assets Turnover Ratio 0.81 0.90 0.82 0.70 0.6

Asset Turnover Ratio 0.91 0.96 0.85 0.74 0.7

Average Raw Material Holding -- -- 109.87 134.48 104.4

Average Finished Goods Held -- -- 19.27 22.23 18.2

217.3
Number of Days In Working Capital 178.52 177.90 199.95 144.4
6

Profit & Loss Account Ratios

Material Cost Composition 28.32 32.86 31.74 33.71 36.3

Imported Composition of Raw Materials Consumed 37.04 30.23 27.05 42.76 30.3

Selling Distribution Cost Composition -- -- 9.34 9.19 10.0

Expenses as Composition of Total Sales 78.13 76.22 73.83 72.23 71.9

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 15.84 20.13 25.54 21.31 22.4

Dividend Payout Ratio Cash Profit 13.23 16.14 18.59 16.29 17.4

Earning Retention Ratio 84.16 79.87 80.09 78.66 75.4

Cash Earning Retention Ratio 86.77 83.86 84.59 83.68 81.2

AdjustedCash Flow Times 1.15 1.01 1.01 1.24 0.5

Mar
Mar '13 Mar '12 Mar '11 Mar '1
'14

Earnings Per Share 113.62 74.51 53.81 52.78 50.

548.4
Book Value 458.29 396.19 355.69 350.3
1
 RATIO

Key Financial Ratios of Dr Reddys Laboratories

Consolidated Key Financial Ratios of Dr Reddys ------------------- in Rs. Cr. -------------------

Laboratories

Mar
Mar '13 Mar '12 Mar '11 Mar '10
'14
INVESTMENT Valuation Ratios

Face Value 5.00 5.00 5.00 5.00 5.00

Dividend Per Share -- -- -- -- --

191.1
Operating Profit Per Share (Rs) 160.12 146.49 89.00 85.82
0

785.3
Net Operating Profit Per Share (Rs) 696.71 575.67 434.21 413.91
3

Free Reserves Per Share (Rs) -- -- 265.59 208.74 196.97

Bonus in Equity Capital 65.64 65.80 65.87 66.03 66.19

Profitability Ratios

Operating Profit Margin(%) 24.33 22.86 24.77 20.71 20.73

Profit Before Interest And Tax Margin(%) 19.24 18.00 19.23 15.30 14.62

Gross Profit Margin(%) 19.48 18.23 19.49 15.40 14.82

Cash Profit Margin(%) 19.29 17.69 19.64 18.50 17.44

Adjusted Cash Margin(%) 19.29 17.78 19.46 18.79 17.44

Net Profit Margin(%) 14.51 12.74 13.26 13.38 4.96

Adjusted Net Profit Margin(%) 14.51 12.67 13.07 13.23 4.96

Return On Capital Employed(%) 23.10 24.32 24.88 18.86 21.10

Return On Net Worth(%) 24.96 23.97 26.07 24.77 9.30

Adjusted Return on Net Worth(%) 24.96 24.82 27.06 24.24 21.24

462.3
Return on Assets Excluding Revaluations 375.01 294.23 238.21 223.68
6

462.3
Return on Assets Including Revaluations 375.01 294.23 238.21 223.68
6

Return on Long Term Funds(%) 27.89 30.37 29.67 26.11 23.62

Liquidity And Solvency Ratios

Current Ratio 1.59 1.48 1.48 1.13 1.46

Quick Ratio 1.76 1.60 1.58 1.28 1.18

Debt Equity Ratio 0.53 0.50 0.65 0.59 0.39

Long Term Debt Equity Ratio 0.26 0.20 0.33 0.13 0.24

Debt Coverage Ratios

Interest Cover 21.89 23.12 19.37 49.08 38.28

Total Debt to Owners Fund 0.53 0.50 0.65 0.59 0.39

Financial Charges Coverage Ratio 27.00 28.61 22.14 50.11 40.08

Financial Charges Coverage Ratio Post Tax 21.61 21.71 17.30 45.08 21.37

Management Efficiency Ratios

Inventory Turnover Ratio 5.52 5.48 5.05 4.69 5.69

Debtors Turnover Ratio 4.11 4.16 4.57 5.13 5.37

INVESTMENTS Turnover Ratio 5.52 5.51 5.44 5.01 5.69

Fixed Assets Turnover Ratio 2.12 2.27 2.24 1.98 2.34

Total Assets Turnover Ratio 1.20 1.38 1.33 1.40 3.73

Asset Turnover Ratio 1.24 1.33 1.34 1.92 2.34

Average Raw Material Holding -- -- 121.89 145.24 100.18

Average Finished Goods Held -- -- 33.50 38.63 30.05

149.4
Number of Days In Working Capital 143.62 142.72 118.12 92.12
7

Profit & Loss Account Ratios

Material Cost Composition 28.09 32.00 29.20 32.25 32.98

Imported Composition of Raw Materials Consumed -- -- -- -- --

Selling Distribution Cost Composition -- -- 10.08 10.13 9.88

Expenses as Composition of Total Sales -- -- -- -- --

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 18.24 19.52 20.82 30.59 63.04
Dividend Payout Ratio Cash Profit 13.72 14.35 14.56 21.46 28.25

Earning Retention Ratio 81.76 81.15 79.94 68.74 72.39

Cash Earning Retention Ratio 86.28 86.02 85.81 78.21 82.07

AdjustedCash Flow Times 1.58 1.48 1.69 1.69 1.20

FINANCIAL CHARTS

TOTAL ASSETS AND RATIOS

NETSALES:
PROFIT BEFORE TAX:
PROFIT AFTER TAX: