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REGISTERED NUMBER:
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Strategic Report, Report of the Directors and |
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Financial Statements |
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for the Year Ended 31st March 2019 |
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for |
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Dr Reddy's Laboratories (UK) Limited |
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REGISTERED NUMBER:
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Strategic Report, Report of the Directors and |
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Financial Statements |
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for the Year Ended 31st March 2019 |
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for |
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Dr Reddy's Laboratories (UK) Limited |
Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064) |
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Contents of the Financial Statements |
for the year ended 31st March 2019 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 4 |
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Report of the Independent Auditors | 6 |
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Income Statement | 8 |
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Other Comprehensive Income | 9 |
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Balance Sheet | 10 |
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Statement of Changes in Equity | 11 |
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Notes to the Financial Statements | 12 |
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Dr Reddy's Laboratories (UK) Limited |
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Company Information |
for the year ended 31st March 2019 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Statutory Auditors |
Princes House |
Wright Street |
Hull |
East Yorkshire |
HU2 8HX |
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BANKERS: |
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Aldgate House |
1/4 Market Place |
Hull |
HU1 1RA |
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SOLICITORS: |
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Merlin Place |
Milton Road |
Cambridge |
CB4 0DP |
Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064) |
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Strategic Report |
for the year ended 31st March 2019 |
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The directors present their strategic report for the year ended 31st March 2019. |
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REVIEW OF BUSINESS |
The key financial highlights are as follows: |
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31/3/19 | 31/3/18 | 31/3/17 | 31/3/16 |
£ | £ | £ | £ |
Turnover - United Kingdom | 20,772,782 | 34,516,287 | 30,593,377 | 27,528,529 |
Turnover Growth - United Kingdom | -39.8% | 12.8% | 11.1% | 24.9% |
Turnover - Europe and other countries | 5,886,001 | 5,913,609 | 7,092,169 | 5,920,467 |
Turnover Growth - Europe and other countries | -0.5% | -16.60% | 19.8% | -28.90% |
Profit before tax | 2,552,760 | 7,941,065 | 4,631,171 | 6,810,876 |
Profit before tax margin | 9.6% | 19.6% | 12.3% | 20.4% |
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This has been a tough year for Dr. Reddy's UK as compared with the previous year. The Retail business faced the full brunt of the |
GMP issue with the manufacturing site dedicated to EU Generics (FTO2). Even though the GMP was restored in Jan 2018, it has |
taken us a large part of the year to bring products back into full production and supply. The business also suffered from delay in |
some key product launches in the Hospital segment. The CCG business, largely driven by our brand Alzain in 2018 had severe |
headwinds due to generic entrants in the Pregabalin market in July 2018, post expiry of the neuropathic pain patent. However, this |
was partially compensated by above expectation performance of other brands like Alzest and Valios. |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The company has identified the principal areas of risk that it faces as: |
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Financial instrument risk |
The company has established a risk and financial management framework whose primary objectives are to protect the company |
from events that hinder the company's performance objectives. The objectives aim to ensure sufficient working capital exists and |
monitor the management of risk at a business unit level. |
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Impact of pharmaceutical regulations |
The business is subject to various regulations and any tightening of these could have a negative impact on earnings. |
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Price risk |
The company sells generic pharmaceutical products. The prices of such products tend to reduce on account of severe pricing |
pressure and competition. This risk is managed by maintaining adequate levels of stock and introducing new products on expiry of |
patents. |
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Foreign exchange risk |
The company sells and purchases some products in foreign currencies. The risk is mitigated by monitoring foreign exchange rates |
on a daily basis and taking foreign exchange cover, if required. |
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Credit risk |
Credit checks are carried out on all customers. Amounts outstanding for both time and credit limits are regularly monitored. The |
company has little experience of material bad debts in general. |
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Liquidity risk |
Liquidity is the risk that the company will encounter difficulty in meeting obligations associated with financial liabilities. The |
company manages its cash flow to ensure that sufficient liquid resources are available to meet its operating needs. |
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Interest rate and cash flow risk |
The company had a favourable cash balance during the year and therefore does not consider that interest rates or cash flow pose a |
significant risk. |
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Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064) |
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Strategic Report |
for the year ended 31st March 2019 |
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REVIEW OF CLOSING POSITION |
Overall, Dr Reddy's Laboratories (UK) Limited finds itself in a good financial position at the close of the 2018/19 financial year |
after a difficult years trading. Cash reserves of £396k were held at the year end although down on previous years the company |
continues to hold sufficient cash reserves. Sales have decreased by 34.1%, and profit before tax has decreased from 19.6% to 9.6%. |
These results are lower comparing to the prior year, however 2018 was an exceptional year as a result of higher sales prices of the |
key products. These products are no longer obtaining the previous years prices as a result of the licences being expired and Dr |
Reddys competitors are now supplying these to the market. |
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These results are reflected in a healthy balance sheet showing Net Assets of £29.4m. |
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FUTURE DEVELOPMENTS |
Looking forward, the Board and the management team at Dr. Reddy's are continuing to progress with the strategy of delivering |
growth in turnover and profit, through portfolio expansion and further deepening our presence across all 3 channels - Retail, |
Hospital and CCG's (Clinical Commissioning Groups). Supplies from FTO2 are back to normal, which will support the Retail |
channel. Additionally, there are some exciting launches in the Hospital segment in the areas of HIV, Anti-infectives and Oncology, |
with some day 1 (patent expiry) and limited competition launches. We continue to grow our CCG channel in terms of gaining |
deeper penetration and market share of the existing brands. Finally, the Retail channel has seen further consolidation in the |
customer base, but we continue to deepen our relationships with the key wholesalers and national pharmacy chains in the UK. |
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ON BEHALF OF THE BOARD: |
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Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064) |
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Report of the Directors |
for the year ended 31st March 2019 |
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The directors present their report with the financial statements of the company for the year ended 31st March 2019. |
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DIVIDENDS |
No dividends will be distributed for the year ended 31st March 2019. |
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FUTURE DEVELOPMENTS |
Details of the company's future developments have been provided in the strategic report. |
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DIRECTORS |
The directors during the year under review were: |
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- resigned 31/1/19 |
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The directors holding office at 31st March 2019 did not hold any beneficial interest in the issued share capital of the company at |
1st April 2018 or 31st March 2019. |
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FINANCIAL INSTRUMENTS AND RISK MANAGEMENT |
The company's principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of |
these instruments is to raise funds and finance the company's operations. |
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Revenue maintenance |
The company actively markets and manages its portfolio of products to focus on revenue building and maintenance which, over the |
life cycle of the products can contribute to the future profits of the business. |
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Principle risks and uncertainties |
These have been provided in the strategic report of the company. |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in |
accordance with applicable law and regulations. |
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Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have |
elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United |
Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements |
unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the |
company for that period. In preparing these financial statements, the directors are required to: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in
the financial statements; |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue
in business. |
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The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's |
transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that |
the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company |
and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's |
website. |
Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064) |
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Report of the Directors |
for the year ended 31st March 2019 |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of |
which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order |
to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
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AUDITORS |
The auditors, cbaSadofskys, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
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ON BEHALF OF THE BOARD: |
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Report of the Independent Auditors to the Members of |
Dr Reddy's Laboratories (UK) Limited |
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Opinion |
We have audited the financial statements of Dr Reddy's Laboratories (UK) Limited (the 'company') for the year ended |
31st March 2019 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in |
Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting |
framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including |
Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United |
Kingdom Generally Accepted Accounting Practice). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31st March 2019 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our |
responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements |
section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit |
of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities |
in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide |
a basis for our opinion. |
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Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: |
- | the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
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the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt
about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and |
the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in |
our report, we do not express any form of assurance conclusion thereon. |
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In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider |
whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or |
otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are |
required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other |
information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, |
we are required to report that fact. We have nothing to report in this regard. |
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Opinion on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
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the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial
statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Dr Reddy's Laboratories (UK) Limited |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not |
identified material misstatements in the Strategic Report or the Report of the Directors. |
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We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our |
opinion: |
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not
visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities, the directors are responsible for the preparation of the |
financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors |
determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud |
or error. |
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In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going |
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the |
directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
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Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material |
misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance |
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a |
material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in |
the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial |
statements. |
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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's |
website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act |
2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to |
them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume |
responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the |
opinions we have formed. |
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for and on behalf of
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Statutory Auditors |
Princes House |
Wright Street |
Hull |
East Yorkshire |
HU2 8HX |
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Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064) |
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Income Statement |
for the year ended 31st March 2019 |
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2019 | 2018 |
Notes | £ | £ | £ | £ |
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TURNOVER | 3 |
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Cost of sales |
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GROSS PROFIT |
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Distribution costs |
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Administrative expenses |
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4,272,423 | 8,859,451 |
OPERATING PROFIT | 5 |
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Interest receivable and similar income |
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2,552,387 | 7,943,754 |
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Interest payable and similar expenses | 6 | ( |
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PROFIT BEFORE TAXATION |
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Tax on profit | 7 |
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PROFIT FOR THE FINANCIAL YEAR |
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Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064) |
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Other Comprehensive Income |
for the year ended 31st March 2019 |
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2019 | 2018 |
Notes | £ | £ |
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PROFIT FOR THE YEAR |
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OTHER COMPREHENSIVE INCOME |
Stock based compensation |
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Income tax relating to other comprehensive
income |
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OTHER COMPREHENSIVE INCOME FOR
THE YEAR, NET OF INCOME TAX |
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TOTAL COMPREHENSIVE INCOME FOR
THE YEAR |
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Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064) |
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Balance Sheet |
31st March 2019 |
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2019 | 2018 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
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Tangible assets | 9 |
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CURRENT ASSETS |
Stocks | 10 |
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Debtors | 11 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 12 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CAPITAL AND RESERVES |
Called up share capital | 13 |
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Other reserves | 14 |
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Retained earnings | 14 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors on
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Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064) |
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Statement of Changes in Equity |
for the year ended 31st March 2019 |
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Called up |
share | Retained | Other | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
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Balance at 1st April 2017 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31st March 2018 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31st March 2019 |
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Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064) |
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Notes to the Financial Statements |
for the year ended 31st March 2019 |
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1. | STATUTORY INFORMATION |
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Dr Reddy's Laboratories (UK) Limited is a
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company's registered number and registered office address can be found on the Company Information page. |
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The presentation currency of the financial statements is the Pound Sterling (£). |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as |
permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
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• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of Section 33 Related Party Disclosures paragraph 33.7. |
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Turnover |
Turnover represents invoiced sales of goods, excluding value added tax, less discounts and rebates. |
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Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any |
accumulated amortisation and any accumulated impairment losses. |
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Intangible assets |
Products using patents are capitalised at the date of the patent. The residual value of these patents are being amortised |
evenly over their estimated useful lives. |
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Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
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Freehold property | - | Straight line at 1% |
Improvements to property | - | Over the period of the lease |
Plant and machinery | - | 10% to 20% on cost and |
20% on reducing balance |
Fixtures and fittings | - | Straight line over 3 years |
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Stocks |
Raw materials, packing materials and work in progress are valued at cost. Finished goods are valued at the lower of cost |
and net realisable value. Stock is valued after making due allowance for obsolete and slow moving stock. |
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Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064) |
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Notes to the Financial Statements - continued |
for the year ended 31st March 2019 |
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2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent |
that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively |
enacted by the balance sheet date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in |
which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted |
or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be |
recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Research, regulatory and development cost |
Expenditure on research, regulatory and development cost is written off in the year in which it is incurred. |
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Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet |
date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. |
Exchange differences are taken into account in arriving at the operating result. |
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Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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Pension costs and other post-retirement benefits |
The company makes contributions to the private pension funds of directors and staff. Contributions payable for the year are |
charged in the profit and loss account. |
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Stock based compensation |
The stock options taken up in the ultimate parent company, Dr Reddy's Laboratories Limited, by staff members of |
subsidiary companies are accounted for in the accounts of the subsidiary company. |
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Regulatory and trade licence fees |
Expenditure in respect of the renewal of trade licences has been charged to the profit and loss account when it has been |
incurred. |
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Going concern |
The company has the long term support from the group and as a consequence, the directors believe that the company is well |
placed to manage its business risks successfully despite the uncertain economic outlook. |
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The directors have a reasonable expectation that the company has adequate resources to continue in operational existence |
for the foreseeable future. Thus they continue to adopt the going concern basis in preparing the annual financial statements. |
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Further information regarding the company's business activities, together with the factors likely to affect its future |
development, performance and position is set out in the Directors Report. |
Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064) |
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Notes to the Financial Statements - continued |
for the year ended 31st March 2019 |
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3. | TURNOVER |
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The turnover and profit before taxation are attributable to the principal activities of the company. |
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An analysis of turnover by geographical market is given below: |
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2019 | 2018 |
£ | £ |
United Kingdom | 20,772,782 | 34,516,287 |
Europe and other countries | 5,886,001 | 5,913,609 |
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4. | EMPLOYEES AND DIRECTORS |
2019 | 2018 |
£ | £ |
Wages and salaries |
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Social security costs |
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Other pension costs |
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The average number of employees during the year was as follows: |
2019 | 2018 |
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Directors and administration | 54 | 27 |
Production | 27 | 55 |
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2019 | 2018 |
£ | £ |
Directors' remuneration |
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5. | OPERATING PROFIT |
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The operating profit is stated after charging/(crediting): |
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2019 | 2018 |
£ | £ |
Hire of plant and machinery | 13,094 | 12,827 |
Depreciation - owned assets | 167,950 | 161,119 |
Profit on disposal of fixed assets | - | (5,158 | ) |
Patents and licences amortisation | 148,741 | 75,002 |
Auditors remuneration | 4,000 | 5,500 |
Auditors remuneration for non audit work | 2,500 | 2,000 |
Foreign exchange differences | (1,867,020 | ) | 2,196,133 |
Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064) |
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Notes to the Financial Statements - continued |
for the year ended 31st March 2019 |
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6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2019 | 2018 |
£ | £ |
Interest on corporation tax | ( |
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Disallowed interest and |
penalties |
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( |
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7. | TAXATION |
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Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2019 | 2018 |
£ | £ |
Current tax: |
UK corporation tax |
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Tax on profit |
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UK corporation tax has been charged at 19% (2018 - 19%). |
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Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained |
below: |
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2019 | 2018 |
£ | £ |
Profit before tax |
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Profit multiplied by the standard rate of corporation tax in the UK of
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Effects of: |
Capital allowances in excess of depreciation | ( |
) | - |
Depreciation in excess of capital allowances | - |
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Expenses not deductible for tax purposes | - | 511 |
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ESOP exercised in the year | 9,595 | (12,083 | ) |
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Total tax charge | 478,822 | 1,500,033 |
Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064) |
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Notes to the Financial Statements - continued |
for the year ended 31st March 2019 |
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7. | TAXATION - continued |
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Tax effects relating to effects of other comprehensive income |
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2019 |
Gross | Tax | Net |
£ | £ | £ |
Stock based compensation |
|
- | 158 |
|
2018 |
Gross | Tax | Net |
£ | £ | £ |
Stock based compensation |
|
- | 1,942 |
|
8. | INTANGIBLE FIXED ASSETS |
Patents |
and |
licences |
£ |
COST |
At 1st April 2018 |
|
Additions |
|
Disposals | ( |
) |
At 31st March 2019 |
|
AMORTISATION |
At 1st April 2018 |
|
Amortisation for year |
|
At 31st March 2019 |
|
NET BOOK VALUE |
At 31st March 2019 |
|
At 31st March 2018 |
|
Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064) |
|
Notes to the Financial Statements - continued |
for the year ended 31st March 2019 |
|
9. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
Freehold | to | Plant and | and |
property | property | machinery | fittings | Totals |
£ | £ | £ | £ | £ |
COST |
At 1st April 2018 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals |
|
|
( |
) |
|
( |
) |
At 31st March 2019 |
|
|
|
|
|
DEPRECIATION |
At 1st April 2018 |
|
|
|
|
|
Charge for year |
|
|
|
|
|
At 31st March 2019 |
|
|
|
|
|
NET BOOK VALUE |
At 31st March 2019 |
|
|
|
|
|
At 31st March 2018 |
|
|
|
|
|
|
10. | STOCKS |
2019 | 2018 |
£ | £ |
Packaging materials | 147,809 | 241,861 |
Work-in-progress |
|
|
Finished goods |
|
|
|
|
|
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Trade debtors |
|
|
Amounts due from fellow |
subsidiaries | 20,342,374 | 22,351,230 |
Amount due from ultimate |
parent company | - | 85,205 |
Prepayments and accrued income |
|
|
|
|
Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064) |
|
Notes to the Financial Statements - continued |
for the year ended 31st March 2019 |
|
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Trade creditors |
|
|
Amount due to ultimate parent company | 5,929,467 | 2,456,908 |
Amounts owed to fellow subsidiaries | 66,085 | 169,134 |
Taxation |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Accrued expenses |
|
|
Deferred income | 289,987 | 289,987 |
|
|
|
13. | CALLED UP SHARE CAPITAL |
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2019 | 2018 |
value: | £ | £ |
|
Ordinary | £1 | 1,000 | 1,000 |
|
14. | RESERVES |
Retained | Other |
earnings | reserves | Totals |
£ | £ | £ |
|
At 1st April 2018 |
|
|
27,311,298 |
Profit for the year |
|
|
Stock based compensation | - | 158 | 158 |
At 31st March 2019 |
|
|
29,385,394 |
|
15. | ULTIMATE PARENT COMPANY |
|
The company's immediate parent company is
Dr Reddy's Laboratories (EU) Limited
, a company registered in England and
Wales. The group financial statements are available to the public and may be obtained from Riverview Road, Beverley, East Yorkshire, HU17 0LD . |
|
The company's ultimate parent and controlling company is
Dr Reddy's Laboratories Limited
, a company incorporated in
India. The group financial statements are available to the public and may be obtained from Door No 8-2-337, Road No 3, Banjara Hills, Hyderabad - 500034, India . |
Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064) |
|
Notes to the Financial Statements - continued |
for the year ended 31st March 2019 |
|
16. | RELATED PARTY DISCLOSURES |
|
At the balance sheet date, the company owed the amounts to related parties: |
|
31/3/19 | 31/3/18 |
£ | £ |
Dr Reddy's Laboratories Limited | 5,929,467 | 2,456,908 |
Dr Reddy's S.A | Nil | 155,745 |
|
At the balance sheet date, the company was owed amounts from the following related parties: |
|
31/3/19 | 31/3/18 |
£ | £ |
Dr Reddy's Laboratories S.R.L | 1,596,339 | 1,676,534 |
Betapharm Arzneimittel GmbH | 7,722 | 35,853 |
Dr Reddy's Laboratories Limited | Nil | 85,205 |
Dr Reddy's Pharma Iberia | 397,069 | 782,989 |
Reddy Pharma SAS | 76,456 | 220,684 |
Dr Reddy's S.A | 18,264,788 | 19,635,170 |
|
During the year the company made purchases on normal commercial terms to the following related parties: |
|
31/3/19 | 31/3/18 |
£ | £ |
Dr Reddy's Laboratories Limited | 10,178,704 | 5,572,001 |
Industrias Quimicas Falcon | 698,964 | 297,062 |
Dr Reddy's S.A | 49,114 | 155,745 |
|
|
During the year the company paid for expenses on behalf of the following related parties: |
|
31/3/19 | 31/3/18 |
£ | £ |
Dr Reddy's Laboratories Limited | - | 85,205 |
Dr Reddy's S.A | 151,124 | Nil |
|
During the year the company made QC sales on normal commercial terms to the following related parties: |
|
31/3/19 | 31/3/18 |
£ | £ |
Betapharm Arzneimittel GmbH | 7,722 | 19,265 |
Dr Reddy's SA | Nil | 15,763 |
|
During the year the company made sales on normal commercial terms to the following related parties: |
|
31/3/19 | 31/3/18 |
£ | £ |
Dr Reddy's Pharma Iberia | 505,453 | 483,253 |
Betapharm Arzneimittel GmbH | 143,755 | 141,003 |
Dr Reddy's Laboratories S.R.L | 1,187,250 | 1,826,677 |
Reddy Pharma SAS | (37,643 | ) | 118,782 |
|
During the year the company had given a loan to the following related parties: |
|
Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064) |
|
Notes to the Financial Statements - continued |
for the year ended 31st March 2019 |
31/3/19 | 31/3/18 |
£ | £ |
Dr Reddy's S.A | Nil | 10,044,865 |
|
During the year the company had charged interest on the loans to the following related parties: |
|
31/3/19 | 31/3/18 |
£ | £ |
Dr Reddy's S.A | 477,868 | 377,484 |