Dr Reddy's Laboratories, two years after floating its American depository shares issue, is still maintaining $30 million in bank deposits to meet its future investment needs.

Of the $125.4 million proceeds of the issue made in April 2001, the company has thus far utilised $74.1 million to liquidate debt and other liabilities.

As per the data available in its latest annual report, Dr Reddy's has invested Rs 92.7 crore (Rs 927 million) in the last fiscal in its Indian and overseas subsidiaries, taking the total investments to Rs 156.6 crore (Rs 1,566 million).

The investments include Rs 56.67 crore (Rs 566.7 million) for acquiring the United Kingdom-based BMS Laboratories and its wholly owned subsidiary Meredian Healthcare Ltd.

These are now called Dr. Reddy's Laboratories (EU) Ltd and Dr Reddy's Laboratories (UK) Ltd, respectively.

The other major investments of Dr Reddy's in 2002-03 include Rs 24.99 crore (Rs 249.9 million) in Aurigene Discovery Technologies to fund research activities at Bangalore and Boston, United States.

Further, a Rs 9 crore (Rs 90 million) extended to the loss making subsidiary Compact Electric Ltd was converted into equity last fiscal.

According to the ADS issue prospectus, Dr Reddy's had broadly indicated $30 million for drug discovery and development and $75 million for acquisitions and/or the establishment of marketing operations in the US.

The company has, however, made it clear in the prospectus, that it will have significant flexibility in applying the net proceeds of ADS issue.