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REGISTERED NUMBER: 01729064 (England and Wales)














Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31st March 2025

for

Dr Reddy's Laboratories (UK) Limited

Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064)






Contents of the Financial Statements
for the year ended 31st March 2025




Page

Company Information 1

Strategic Report 2

Report of the Directors 6

Report of the Independent Auditors 8

Statement of Comprehensive Income 12

Balance Sheet 13

Statement of Changes in Equity 14

Notes to the Financial Statements 15


Dr Reddy's Laboratories (UK) Limited

Company Information
for the year ended 31st March 2025







DIRECTORS: K S Reddy
V N Mannam
P Aghanian
M Yassar
K Oberte



SECRETARY: A K Baheti



REGISTERED OFFICE: 410 Cambridge Science Park
Milton Road
Cambridge
Cambridgeshire
CB4 0PE



REGISTERED NUMBER: 01729064 (England and Wales)



AUDITORS: Sadofskys
Statutory Auditors
Princes House
Wright Street
Hull
East Yorkshire
HU2 8HX



BANKERS: Bank of Scotland
300 Lawnmarket
Edinburgh
EH1 2PH

Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064)

Strategic Report
for the year ended 31st March 2025

The directors present their strategic report for the year ended 31st March 2025.

REVIEW OF BUSINESS
The key financial highlights are as follows:

2025 2024 2023
£    £    £   
Turnover 67,366,999 60,797,188 49,058,352
Turnover growth 10.8% 23.92% 21.8%

Profit before tax 7,072,034 17,758,151 6,499,304
Profit before tax margin 10.5% 29.2% 13.2%

The company continues to grow year after year, both in revenue and volume. Our commitment to serving the UK market, particularly in the hospital and retail sectors. Our strong performance is reflected in consistent growth across retail and hospital channels, driven by strategic new product launches and our focus on securing hospital tenders.

We're expanding into the OTC segment by introducing innovative products that meet evolving consumer needs. In the retail sector, we remain dedicated to our key clients, enhancing our service by strengthening our supply chain, developing our portfolio, and adding value through new product introductions. We have successfully started distribution of our first entry into the biosimilars market.

PRINCIPAL RISKS AND UNCERTAINTIES
The company has identified the principal areas of risk that it faces as:

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.

Impact of pharmaceutical regulations
The business is subject to various regulations and any tightening of these could have a negative impact on earnings.

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.

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.

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.

Liquidity risk
Liquidity risk 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.

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.


Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064)

Strategic Report
for the year ended 31st March 2025

SECTION 172(1) STATEMENT
The Board of Directors, in line with their duties under s172 of the Companies Act 2006, act in a way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, and in doing so have regard to a range of matters when making decisions for the long term. Key decisions and matters that are of strategic importance to the Company are appropriately informed by s172 factors.

At Dr. Reddy's, our Board of Directors, management and employees are committed to upholding high standards of corporate governance and business ethics. We firmly believe that timely disclosures, transparent accounting policies, rigorous internal control systems and a strong and independent Board go a long way in preserving shareholder trust while maximising long-term shareholder value.

This s172(1) statement explains how the Dr. Reddy's Directors:
- have engaged with employees, suppliers, customers and others; and
- have had regard to employee interests, the need to foster the company's business relationships with suppliers, customers and others, and the effect of that regard, including on the principal decisions taken by the company during the financial year.

The s172(1) statement focuses on matters of strategic importance to Dr. Reddy's, and the level of information disclosed is consistent with the size and the complexity of the business.

General confirmation of Directors' duties
Dr. Reddy's have a number of Committees appointed by the Board at group level to focus on specific areas and take informed decisions within the framework of delegated authority, and make specific recommendations to the Board. All decisions and recommendations of the committees are placed before the Board for information or for approval.

When making decisions, each Director ensures that they act in the way they consider, in good faith, would most likely promote the Company' success for the benefit of its members as a whole, and in doing so have regard (among other matters) to:

The likely consequences of any decision in the long term
The Directors understand the business and the demand to innovate the latest products in order to find the most effective treatments in the pharmaceutical market. Dr. Reddy's vision and goal of 'Good Health Can't Wait' is what the business drives and strives for. The strategy set by the Board as a leader in the pharmaceutical industry is to ensure good health can be delivered to those who need it, and to promote wellness among them.

Whilst investing for the future, the Board also recognises that we must focus on meeting the current supply and demand of pharmaceuticals.

The Directors are guided by our principles - Empathy and Dynamism - which provide both guidance for our current behaviour and inspiration for our future actions.

The interests of the company's employees
At Dr. Reddy's employees are at the heart of our business. The Management team invites a fair and open two-way relationship with all employees. We believe in respecting every individual, regardless of position. At Dr Reddy's employees are heard and have the opportunity to express their opinion. The Company believes in equality and discourages any discrimination based on any caste, creed, race, religion, age, or gender etc. We are committed to employees' safety and well-being. Our HR policies are well documented and available to each employee. Management assumes responsibility to ensure that such policies are adhered to.

The talented and capable people have played a major role in powering and defining the growth of Dr. Reddy's. We believe that when people with diverse skills are bound together by a common purpose and value system, they can make magic.








Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064)

Strategic Report
for the year ended 31st March 2025

The need to foster the company's business relationships with suppliers, customers and others
Customers and suppliers are the key stakeholders in our business. In a competitive price driven environment, stock is the vital component at the keenest price. We engage in regular communication with our suppliers as well as customers. We recognise the fact that the stronger the relationships with suppliers the more we are able to serve our customers better. We remain committed to all our stakeholders for ethical business practices. The Company has put in practice a code of business conduct and ethics (CoBE) , and every employee at Dr Reddy's is required to sign an undertaking, at least annually, that they have read such code and comply with its principles.

The impact of the company's operations on the community and environment
At Dr. Reddy's, Good Health Can't Wait is not just a slogan, but a belief that guides our thoughts, our behaviour and our actions. There are a number of initiatives that we've taken - from product development to patient management to helping doctors and partners deliver good health to patients.

Some of these were-life changing, for the patients. Like creating affordable option of complex, difficult to make medicines.

All of this is aimed at bringing good health to the community directly via the retail market or via being part of the supply chain to the NHS. The Company strives to ensure that it is focused on the larger community.

The desirability of the company maintaining a reputation for high standards of business conduct
Dr. Reddy's Board periodically reviews their Corporate Governance requirements as the commitment to upholding the highest standards are set at board level but is filtered down throughout the whole group organisation.

The need to act fairly as between members of the company
The Directors consider and focus their attention to ensure that the company's performance is in line with their strategic vision for both the short and long term objectives. The impact of this on all of the stakeholders is reviewed. The Directors believe they act fairly.

The Board has created a culture of honesty, integrity and respect of the Dr. Reddy's core values and principles. The company has set a number of guidelines on Code of Business Conduct and Ethics (COBE) through to various Environment and Employment policies.

Principal decisions
We define principal decisions taken by the Board as those decisions in 2024/25 that are of a strategic nature and that are significant to any of our key stakeholder groups. As outlined in the FRC Guidance on the Strategic Report, we include decisions related to capital allocation and dividend policy.

REVIEW OF CLOSING POSITION
Overall, Dr Reddy's Laboratories (UK) Limited finds itself in a good financial position at the close of the 2024/25.

Cash reserves of £1.35m were held at the year-end which is in line with last year. The company continues to hold sufficient cash reserves.

Overall sales have increased by 10.81%, and profit before tax is 10.5% on sales mainly on account of the increased sales and other income.

These results are reflected in a healthy balance sheet showing Net Assets of £51.9m compared to £56.1m last year.


Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064)

Strategic Report
for the year ended 31st March 2025

FUTURE DEVELOPMENTS
The company remains firmly committed to serving the UK market while continuously evaluating associated risks. With strong processes and mitigation plans in place, we are well-positioned to ensure uninterrupted supply of essential medicines and fulfil our obligations to partners and customers throughout the 2025/26 fiscal year.

Additionally, ongoing negotiations regarding the Voluntary Scheme for Branded Medicines Pricing, Access, and Growth (VPAG) will influence the UK market's attractiveness for new product launches.

Given the complexities of the current geopolitical landscape and the UK's economic outlook, the business environment remains uncertain, with expected pressures on both costs and pricing.

ON BEHALF OF THE BOARD:





A K Baheti - Secretary


29th April 2025

Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064)

Report of the Directors
for the year ended 31st March 2025

The directors present their report with the financial statements of the company for the year ended 31st March 2025.

PRINCIPAL ACTIVITIES
The principal activities of the company in the year under review were those of manufacturing and distributing pharmaceutical products.

DIVIDENDS
An interim dividend of £10,000 per share was paid on 16th December 2024. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31st March 2025 will be £ 10,000,000 .

FUTURE DEVELOPMENTS
Details of the company's future developments have been provided in the strategic report.

DIRECTORS
The directors shown below have held office during the whole of the period from 1st April 2024 to the date of this report.

K S Reddy
V N Mannam
P Aghanian
M Yassar

Other changes in directors holding office are as follows:

K Oberte - appointed 30th April 2024

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.

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.

Principal risks and uncertainties
These have been provided in the strategic report of the company.

ENGAGEMENT WITH EMPLOYEES
These details have been provided in the company's section 172(1) statement which is included in the strategic report.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS
These details have been provided in the company's section 172(1) statement which is included in the strategic report.

STATEMENT OF CORPORATE GOVERNANCE ARRANGEMENTS
The company believes that timely disclosure and transparent accounting policies coupled with a strong board go a long way in maintaining good corporate governance, preserving all stakeholders' trust and maximizing long-term corporate value.

The company's corporate governance framework is based on the following main principles:

- Ethical business conduct by the board, management and employees.
- Well-developed systems of internal controls.
- Compliance to applicable local and international laws and financial reporting.
- Protection and facilitation of all stakeholders' rights.
- Adequate, timely and accurate disclosure of all material operational and financial information to relevant stakeholders.

STREAMLINED ENERGY AND CARBON REPORTING
2025 2024 Movement Movement

Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064)

Report of the Directors
for the year ended 31st March 2025

KwH KwH KwH %
Electricity Not applicable Not applicable - -
Gas Not applicable Not applicable - -
Total - - - -

Reduction in utilities is due to packaging operations closure during 2023. The company reports its energy usage within the group accounts of the parent entity Dr Reddy's Laboratories (EU) Limited.

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.

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:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website.

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Sadofskys, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:



A K Baheti - Secretary


29th April 2025

Report of the Independent Auditors to the Members of
Dr Reddy's Laboratories (UK) Limited

Opinion
We have audited the financial statements of Dr Reddy's Laboratories (UK) Limited (the 'company') for the year ended 31st March 2025 which comprise the Statement of 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).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31st March 2025 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.

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.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

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.

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.

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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- 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


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.

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:
- 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.

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.

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.

Report of the Independent Auditors to the Members of
Dr Reddy's Laboratories (UK) Limited


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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the pharmaceutical industry;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, UK taxation legislation, and data protection, anti-bribery, employment, environmental, and health and safety legislation, along with industry specific regulations and requirements such as compliance with regulations set out by the Department of Health and the Medicines and Healthcare products Regulatory Agency (MHRA);
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators, and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Report of the Independent Auditors to the Members of
Dr Reddy's Laboratories (UK) Limited


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.




Alan Brocklehurst (Senior Statutory Auditor)
for and on behalf of Sadofskys
Statutory Auditors
Princes House
Wright Street
Hull
East Yorkshire
HU2 8HX

29th April 2025

Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064)

Statement of Comprehensive
Income
for the year ended 31st March 2025

2025 2024
Notes £    £    £   

TURNOVER 3 67,366,999 60,797,188

Cost of sales 50,353,367 45,789,340
GROSS PROFIT 17,013,632 15,007,848

Distribution costs 1,243,927 932,602
Administrative expenses 10,387,531 8,230,820
11,631,458 9,163,422
5,382,174 5,844,426

Other operating income 4 - 9,570,137
OPERATING PROFIT 6 5,382,174 15,414,563

Interest receivable and similar income 1,706,566 2,343,588
7,088,740 17,758,151

Interest payable and similar expenses 7 16,706 -
PROFIT BEFORE TAXATION 7,072,034 17,758,151

Tax on profit 8 1,268,289 4,442,567
PROFIT FOR THE FINANCIAL YEAR 5,803,745 13,315,584

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

5,803,745

13,315,584

Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064)

Balance Sheet
31st March 2025

2025 2024
Notes £    £    £   
FIXED ASSETS
Intangible assets 10 549,260 1,016,426
Tangible assets 11 65,285 58,630
614,545 1,075,056

CURRENT ASSETS
Stocks 12 17,511,397 14,702,220
Debtors 13 51,946,722 61,512,751
Cash at bank 1,357,415 1,363,850
70,815,534 77,578,821
CREDITORS
Amounts falling due within one year 14 19,427,471 22,456,677
NET CURRENT ASSETS 51,388,063 55,122,144
TOTAL ASSETS LESS CURRENT
LIABILITIES

52,002,608

56,197,200

PROVISIONS FOR LIABILITIES 15 16,321 14,658
NET ASSETS 51,986,287 56,182,542

CAPITAL AND RESERVES
Called up share capital 16 1,000 1,000
Other reserves 17 879,601 879,601
Retained earnings 17 51,105,686 55,301,941
SHAREHOLDERS' FUNDS 51,986,287 56,182,542

The financial statements were approved by the Board of Directors and authorised for issue on 29th April 2025 and were signed on its behalf by:





M Yassar - Director


Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064)

Statement of Changes in Equity
for the year ended 31st March 2025

Called up
share Retained Other Total
capital earnings reserves equity
£    £    £    £   
Balance at 1st April 2023 1,000 41,986,357 879,601 42,866,958

Changes in equity
Total comprehensive income - 13,315,584 - 13,315,584
Balance at 31st March 2024 1,000 55,301,941 879,601 56,182,542

Changes in equity
Dividends - (10,000,000 ) - (10,000,000 )
Total comprehensive income - 5,803,745 - 5,803,745
Balance at 31st March 2025 1,000 51,105,686 879,601 51,986,287

Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064)

Notes to the Financial Statements
for the year ended 31st March 2025

1. STATUTORY INFORMATION

Dr Reddy's Laboratories (UK) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d);
the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirement of paragraph 33.7.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Critical accounting judgements and key sources of estimation uncertainty
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the actual related results. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying value of assets and liabilities within the next financial year are addressed below.

- Useful life and residual value
An estimation of the residual values and useful lives of tangible assets and intangible assets is required to be made at least annually. Judgement is required in estimating the useful lives of fixed asset categories. The residual value is the estimated amount that would be currently obtained from the disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

Turnover
Turnover represents invoiced sales of goods, excluding value added tax, less discounts and rebates.

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.

Patents
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.

Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064)

Notes to the Financial Statements - continued
for the year ended 31st March 2025

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

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

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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

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.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

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.

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.

Research, regulatory and development cost
Expenditure on research, regulatory and development cost is written off in the year in which it is incurred.

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.

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.

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.

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.

Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064)

Notes to the Financial Statements - continued
for the year ended 31st March 2025

2. ACCOUNTING POLICIES - continued

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.

Going concern
The company has 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.

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.

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 Strategic Report.

3. TURNOVER

The turnover and profit before taxation are attributable to the principal activities of the company.

An analysis of turnover by geographical market is given below:

2025 2024
£    £   
United Kingdom 63,456,899 56,636,883
Europe and other countries 3,910,100 4,160,305
67,366,999 60,797,188

4. OTHER OPERATING INCOME
2025 2024
£    £   
Other income - 9,570,137

Other income for the year ended 31st March 2024 included £9,550,000 which related to settlement of a product related litigation by the company and its affiliates in the United Kingdom.

5. EMPLOYEES AND DIRECTORS
2025 2024
£    £   
Wages and salaries 4,526,069 2,577,158
Social security costs 368,222 274,968
Other pension costs 566,874 380,150
5,461,165 3,232,276

The average number of employees during the year was as follows:
2025 2024

Directors and administration 7 6
Production and other 33 30
40 36

Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064)

Notes to the Financial Statements - continued
for the year ended 31st March 2025

5. EMPLOYEES AND DIRECTORS - continued

2025 2024
£    £   
Directors' remuneration 348,062 150,880
Directors' pension contributions to money purchase schemes 44,609 18,780

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 1

Information regarding the highest paid director for the year ended 31st March 2025 is as follows:
2025
£   
Emoluments etc 205,099
Pension contributions to money purchase schemes 25,067

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2025 2024
£    £   
Other operating leases 158,458 77,158
Depreciation - owned assets 21,455 21,278
Patents and licences amortisation 803,679 161,003
Auditors' remuneration 15,350 8,000
Taxation compliance services 4,800 4,500
Other assurance services 3,250 2,000
Other non- audit services 14,582 12,526
Foreign exchange differences 93,047 59,156
Interest on loans to group undertakings (1,612,048 ) (2,341,346 )

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2025 2024
£    £   
Interest on corporation tax 16,706 -

Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064)

Notes to the Financial Statements - continued
for the year ended 31st March 2025

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2025 2024
£    £   
Current tax:
UK corporation tax 1,204,048 4,465,687
Prior year adjustment 62,578 (9,601 )
Total current tax 1,266,626 4,456,086

Deferred taxation 1,663 (13,519 )
Tax on profit 1,268,289 4,442,567

UK corporation tax has been charged at 25% (2024 - 25%).

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:

2025 2024
£    £   
Profit before tax 7,072,034 17,758,151
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2024 - 25%)

1,768,009

4,439,538

Effects of:
Adjustments to tax charge in respect of previous periods 62,578 (9,601 )
Stock-based compensation 14,284 12,630
Group relief claimed (576,582 ) -
Total tax charge 1,268,289 4,442,567

9. DIVIDENDS
2025 2024
£    £   
Interim 10,000,000 -

Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064)

Notes to the Financial Statements - continued
for the year ended 31st March 2025

10. INTANGIBLE FIXED ASSETS
Patents
and
licences
£   
COST
At 1st April 2024 2,247,686
Additions 336,513
At 31st March 2025 2,584,199
AMORTISATION
At 1st April 2024 1,231,260
Amortisation for year 803,679
At 31st March 2025 2,034,939
NET BOOK VALUE
At 31st March 2025 549,260
At 31st March 2024 1,016,426

11. TANGIBLE FIXED ASSETS
Fixtures
Plant and and
machinery fittings Totals
£    £    £   
COST
At 1st April 2024 96,367 234,887 331,254
Additions 28,110 - 28,110
At 31st March 2025 124,477 234,887 359,364
DEPRECIATION
At 1st April 2024 54,144 218,480 272,624
Charge for year 21,455 - 21,455
At 31st March 2025 75,599 218,480 294,079
NET BOOK VALUE
At 31st March 2025 48,878 16,407 65,285
At 31st March 2024 42,223 16,407 58,630

12. STOCKS
2025 2024
£    £   
Finished goods 17,511,397 14,702,220

Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064)

Notes to the Financial Statements - continued
for the year ended 31st March 2025

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2025 2024
£    £   
Trade debtors 20,619,416 12,319,666
Amounts due from parent companies 30,993,708 48,483,400
Taxation 167,211 558,011
Prepayments and accrued income 166,387 151,674
51,946,722 61,512,751

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2025 2024
£    £   
Trade creditors 4,463,023 2,670,192
Amount due to ultimate parent company 7,615,862 13,765,853
Amounts owed to group undertakings 1,004,333 903,578
Social security and other taxes 1,767,455 1,186,071
Other creditors 449,952 159,417
Accrued expenses 4,126,846 3,738,179
Deferred income - 33,387
19,427,471 22,456,677

15. PROVISIONS FOR LIABILITIES
2025 2024
£    £   
Deferred tax
Accelerated capital allowances 16,321 14,658

Deferred
tax
£   
Balance at 1st April 2024 14,658
Charge to Statement of Comprehensive Income during year 1,663
Balance at 31st March 2025 16,321

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2025 2024
value: £    £   
1,000 Ordinary £1 1,000 1,000

Ordinary share capital includes full rights on voting dividends and repayment of capital.

Dr Reddy's Laboratories (UK) Limited (Registered number: 01729064)

Notes to the Financial Statements - continued
for the year ended 31st March 2025

17. RESERVES
Retained Other
earnings reserves Totals
£    £    £   

At 1st April 2024 55,301,941 879,601 56,181,542
Profit for the year 5,803,745 5,803,745
Dividends (10,000,000 ) (10,000,000 )
At 31st March 2025 51,105,686 879,601 51,985,287

18. ULTIMATE PARENT COMPANY

The company's immediate parent company is Dr Reddy's Laboratories (EU) Limited, a company registered in England and Wales. The results of this company are consolidated within the group financial statements for the immediate parent are available to the public and may be obtained from Steanard Lane, Mirfield, West Yorkshire, WF14 8HZ.

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.