Soak the red chilies in warm water for at least an hour. (One can deseed and soak, I have not deseeded)
Puree the red chillies in a blender and keep it aside.
In a heavy bottom work or a pan add the oil.
Once hot, add the chopped garlic and ginger.
Saute for a few minutes, until lightly translucent.
Add red chillies paste, tomato ketchup, soya sauce and vinegar and cook further on slow.
Cook this for a few minutes until you see the oil separating or leaving the edges.
Add Black pepper powder, sugar,salt and add 1/4 cup water and cook further for 2-3 minutes.
If you need sauce consistency, add more water and adjust consistency accordingly.