LITERATURE REVIEW

As part of the analysis on Dr. Reddys lab, some excerpts have been taken from various avenues of such information, in order to provide the reader with better discretion and various criteria with which to assess the performance of Dr. Reddys. In the analysts view, it makes more sense to dissect the revenue of the company into its various business/product segments- in order to rightly capture the companys performance in the relevant financial year across such segments. Following could be some ways to do so: Revenues from Pharmaceutical Services & Active Ingredients- representing an annual growth of 29%. This growth was mainly due to increased sales to generic customers and higher orders in the CPS business. Generics Biologics etc.

The analysis further shifts to comparing the performance of the company in relation to the condition and prospects of the industry at large, essentially giving the reader a peerperformance parameter to go by. The author takes the example of Global Biologics to provide some comparison for Dr.Reddys market performance. As per macro dynamics, the global biologics segment is expected to reach $200-$210 Billion by 2016- owing to increased sales of biosimilars and fortop patents. The company having shown consistent performance in the same segment, is therefore expected to reflect the increased momentum in the industry. The author gives the reader many such parameters and dimensions by which to analyse and judge the performance of the company. In conclusion, such works of clinical segmentation by analysts gives the reader of the companys annual report a more resourceful approach to the same- thereby adding tremendous value to the fundamental purpose of the company issuing such annual reports to all its investors.

ANALYSIS AND INTERPRETATION OF ANNUAL REPORT OF DR.REDDYS LABORATORIES LTD.

MAIN CONTENTS OF THE ANNUAL REPORT

CHAIRMANS LETTER A letter from the chairman of the board to shareholders reporting on the company's condition usually made part of the annual report. The report, typically no longer than two pages, includes a summary of initiatives, activities of the board, and personal perspective of the company's future.

The chairman's report refers to an optimistic look at the organization's activities and initiatives. The report is written to the shareholders, clients and other people the organization serves. The chairman say bye to leaders leaving and welcomes new members.

This section is a direct one to one correspondence by the Chairman and CEO, Mr. G V Prasad to the shareholders of the company. He highlights the key factors and issues that have driven the results in the financial year. In a nutshell it gives a snapshot of how the company has performed.

KEY FINANCIAL HIGHLIGHTS

Here the numbers are there for all to see in a compact 2 pager. Financial numbers like Revenues, EBITDA, PAT, EPS,CAGR, Future outlook are presented with graphs. Aim of this section is to familiarise the numbers and give the shareholders or stakeholders the exact figures to talk about and analyse. It basically reiterates what the CEO spoke about. Even key financial ratios are presented.

Financial ratios can provide a benchmark for a comparative analysis. Business owners use a comparative analysis to review their companys financial ratio indicators against
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a competing company or the industry standard. Small businesses with financial indicators below the industry standard usually are not operating as efficiently as possible. Indicators higher than the industry standard indicate the company is operating better than other companies under current market conditions.

Business owners often use a variety of management tools to gauge the effectiveness of their operations. Accounting is the function responsible for recording, reporting and analyzing a companys financial information. Financial statements are usually the final output of the company&s accounting system. Owners use financial ratios to break down their financial statements during the performance management process

BUSINESS RESPONSIBILITY

Businesses and consumers need each other. Consumers want the products and services that business provides, and businesses know that without consumers they have no reason to exist. Thats one of the reasons laws specifically written to protect consumers should be of interest to both businesses and consumers. Educational efforts in the consumer protection arena often focus on providing consumers with information on how to protect themselves from unscrupulous business practices. But business owners and managers also need consumer- protection information to both serve their customers better and to steer clear of potential problems with regulatory agencies. However, obtaining information that is specifically geared to business is often difficult.

Business Responsibility Report is a disclosure of adoption of responsible business practices by a listed company to all its stakeholders. This is important considering the fact that these companies have accessed funds from the public, have an element of public interest involved, and are obligated to make exhaustive disclosures on a regular basis.

SEBI has prescribed a format for 'Business Responsibility Report' as a mandatory requirement for top 100 listed companies by SEBIs Circular dated August 13, 2012. Other companies are encouraged to use the Business Responsibility Report for
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making disclosures to their stakeholders. Business Responsibility Report must be submitted as a part of the Annual Report.

A Business Responsibility Report contains a standardized format for companies to report the actions undertaken by them towards adoption of responsible business practices. Business Responsibility Report has been designed to provide basic information about the company, information related to its performance and processes, and information on principles and core elements of the Business Responsibility Reporting. The prescribed format of a Business Responsibility Report also provides a set of generic reasons which the company can use for explaining their inability to adopt the business responsibility policy.

Further, Business Responsibility Report has been designed as a tool to help companies understand the principles and core elements of responsible business practices and start implementing improvements which reflect their adoption in the manner the company undertakes its business.

Business Responsibility Reporting is applicable to all types of companies including manufacturing, services etc. The principles of Business Responsibility Reporting are generic in nature and are applicable to all the companies. The holding company and the subsidiary company are required to prepare separate Business Responsibility Reports. As stipulated in the Circular issued by SEBI, the requirement of including a Business responsibility Report is mandatory for the top 100 listed Companies.

Thus, any Company, Holding or Subsidiary, which falls among the top 100 listed Companies, has to mandatorily furnish a Business Responsibility Report.

No company can separate itself from the society. Its operations need to benefit the society and taking care of the society becomes a part of the sustainable development of the company and the society. In this particular report, the below Principles have been mentioned in detailed, backed up by figures and facts that they have been followed.

Principle 1: Ethics, Transparency and Accountability

Principle 2: Product Life Cycle sustainability

Principle 3: Employee well being

Principle 4: Stakeholder engagement

Principle 5: Human Rights

Principle 6: Environment

Principle 7: Policy Advocacy

Principle 8: Equitable development

Principle 9: Customer Value.

MD&A (MANAGEMENT DISCUSSION AND ANALYSIS)

This is one of the most important if not the most important sections of the Annual report. The Management literally talks to the wider audience through this report. They cover topics like o Description of segments o Segment performance o Revenues and why they earned how much they earned o Geographic performance o Sales and growth in sales o New products and Filings done in the year o Challenges the company faces o Opportunities
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o Consolidated numbers o GAAP wise numbers o Risk management o Human Resource o Outlook This section essentially covers almost everything about the current happenings in the company and also gives a lot of colour to the numbers provided in tables.

DIRECTORS REPORT The Directors' Report is a document produced by the board of directors under the requirements of UK company law, which details the state of the company and its compliance with a set of financial, accounting and corporate social responsibility standards. The Directors' Report arose out of a general move for greater transparency in corporate governance. It is useful for shareholders to find out issues such as whether the company has good finances, whether the market has potential, and whether the business has the structural capacity to expand into new opportunities. In order for shareholders to make informed decisions when casting their votes at annual or other meetings, the Directors' Report provides part of that essential minimum standard of information. It is complemented by the Director's Remuneration Report and the Company Accounts. Much of the Directors' Report requirements are basic harmonised standards in all European companies, through the Accounts Modernisation Directive, but the UK chose to go further in the interests of greater transparency and accountability.

The Directors' Report must be disclosed to the public, and so also serves as an important source of public information, as a form of social accounting.

CORPORATE GOVERNANCE:

Corporate governance refers to the system by which corporations are directed and controlled. The governance structure specifies the distribution of rights and responsibilities among different participants in the corporation (such as the board of directors, managers, shareholders, creditors, auditors, regulators, and other stakeholders) and specifies the rules and procedures for making decisions in corporate affairs. Governance provides the structure through which corporations set and pursue their objectives, while reflecting the context of the social, regulatory and market environment. Governance is a mechanism for monitoring the actions, policies and decisions of corporations. Governance involves the alignment of interests among the stakeholders The framework of rules and practices by which a board of directors ensures accountability, fairness, and transparency in a company's relationship with its all stakeholders (financiers, customers, management, employees, government, and the community).

The corporate governance framework consists of (1) explicit and implicit contracts between the company and the stakeholders for distribution of responsibilities, rights, and rewards, (2) procedures for reconciling the sometimes conflicting interests of stakeholders in accordance with their duties, privileges, and roles, and (3) procedures for proper supervision, control, and information-flows to serve as a system ofchecks-andbalances. Hence the company states all this in its corporate governance report.

RATIO ANALYSIS

A tool used by individuals to conduct a quantitative analysis of information in a company's financial statements. Ratios are calculated from current year numbers and are then compared to previous years, other companies, the industry, or even the economy to judge the performance of the company. Ratio analysis is predominately used by proponents of fundamental analysis. Ratio analysis is used to evaluate relationships among financial statement items. The ratios are used to identify trends over time for one company or to compare two or more companies

at one point in time. Financial statement ratio analysis focuses on three key aspects of a business: liquidity, profitability, and solvency. Ratio Analysis is a form of Financial Statement Analysis that is used to obtain a quick indication of a firm's financial performance in several key areas. The ratios are categorized as Short-term Solvency Ratios, Debt Management Ratios, Asset Management Ratios, Profitability Ratios, and Market Value Ratios. Ratio Analysis as a tool possesses several important features. The data, which are provided by financial statements, are readily available. The computation of ratios facilitates the comparison of firms which differ in size. Ratios can be used to compare a firm's financial performance with industry averages. In addition, ratios can be used in a form of trend analysis to identify areas where performance has improved or deteriorated over time. Because Ratio Analysis is based upon Accounting information, its effectiveness is limited by the distortions which arise in financial statements due to such things as Historical Cost Accounting and inflation. Therefore, Ratio Analysis should only be used as a first step in financial analysis, to obtain a quick indication of a firm's performance and to identify areas which need to be investigated further. There are many ratios that can be calculated from the financial statements pertaining to a company's performance, activity, financing and liquidity. Some common ratios include the price-earnings ratio, debt-equity ratio, earnings per share, asset turnover and working capital.

FINANCIAL STATEMENTS

A financial statement (or financial report) is a formal record of the financial activities of a business, person, or other entity. Relevant financial information is presented in a structured manner and in a form easy to understand. They typically include basic financial statements, accompanied by a management discussion and analysis: 1. Statement of financial position: also referred to as a balance sheet, reports on a company's assets, liabilities, and ownership equity at a given point in time.

2. Statement of comprehensive income: reports on a company's income, expenses, and profits over a period of time. A profit and loss statement provides information on the operation of the enterprise. These include sales and the various expenses incurred during the processing state. 3. Statement of cash flows: reports on a company's cash flow activities, particularly its operating, investing and financing activities.

For large corporations, these statements are often complex and may include an extensive set of notes to the financial statements and management discussion and analysis. The notes typically describe each item on the balance sheet, income statement and cash flow statement in further detail. Notes to financial statements are considered an integral part of the financial statements.

Financial statements are records that provide an indication of an individuals, organizations, or business financial status. There are four basic types: balance sheets, income statements, cash-flow statements, and statements of retained earnings. Typically, they are used in relation to business endeavors. Balance sheets are used to provide insight into a companys assets and debts at a particular point in time. Information about the companys shareholder equity is included as well. Typically, a company lists its assets on the left side of the balance sheet and its debts and liabilities on the right. Sometimes, however, this statement has assets listed at the top, debts in the middle, and shareholders equity at the bottom.

Income statements present information concerning the revenue earned by a company in a specified time period. Income statements also show the companys expenses in attaining the income and shareholder earnings per share. At the bottom of the income statement, a total of the amount earned or lost is included. Often, income statements provide a record of revenue over a years time. Cash-flow statements provide a look at the movement of cash in and out of a company. These financial statements include information from operating, investing, and financing activities.
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The statement can be important in determining whether or not a company has enough cash to pay its bills, handle expenses, and acquire assets. At the bottom of a cash-flow statement, thenet cash increase or decrease can be found.

AUDITORS REPORT:

The auditor's report is a formal opinion, or disclaimer thereof, issued by either an internal auditor or an independent external auditor as a result of an internal or external audit or evaluation performed on a legal entity or subdivision thereof (called an "auditee"). The report is subsequently provided to a "user" (such as an individual, a group of persons, a company, a government, or even the general public, among others) as an assurance service in order for the user to make decisions based on the results of the audit. An auditor's report is considered an essential tool when reporting financial information to users, particularly in business. Since many third-party users prefer, or even require financial information to be certified by an independent external auditor, many auditees rely on auditor reports to certify their information in order to attract investors, obtain loans, and improve public appearance. Some have even stated that financial information without an auditor's report is "essentially worthless" for investing purposes. It is important to note that auditor's reports on financial statements are neither evaluations nor any other similar determination used to evaluate entities in order to make a decision. The report is only an opinion on whether the information presented is correct and free from material misstatements, whereas all other determinations are left for the user to decide. There are four common types of auditor's reports, each one presenting a different situation encountered during the auditor's work. The four reports are as follows:

Unqualified Opinion Qualified Opinion report Adverse Opinion report Disclaimer of Opinion report

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NOTICE OF ANNUAL GENERAL MEETING:

Here, the particulars of the next annual general meeting are given in detail, for the shareholders.

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KEY FACTORS INFLUENCING THE COMPANYS FINANCIAL PERFORMANCE

The company recorded a rise in consolidated revenue growth of 20% in FY2013, largely due to 1. Growing demand in North America and Emerging Markets in Global Generics. 2. Overall growth of Pharmaceutical Services and Active Ingredients (PSAI) segment. 3. Launching of 104 new generic products which contributed significantly to the revenues. 4. Global Generics market in India grew 13% contributing significantly to the rise in global revenues. 5. Appreciable improvement in operations Revenues from Global Generics segment for FY13 are at Rs. 82.6 billion with a year-on-year growth of 18%, primarily driven by North America and Emerging Markets.
o

Revenues from North America for FY13 at Rs. 37.8 billion, recorded year-on-year growth of 19%. Excluding the beneficial impact of olanzapine exclusivity in FY12, registered year-on-year growth of 38%.
o

Growth is largely driven by key limited competition products such as ziprasidone, fondaparinux, ramp-up in our antibiotics portfolio and products from our Shreveport facility.

Significant contribution from new products launched during the year. 14 new products have been launched during the year, major contributors being finasteride 1mg (180 day exclusivity), montelukast granules, atorvastatin, metoprolol, clopidogrel, ibandronate and zoledronic acid 4mg/5mL.

19 product filings (18 ANDAs and 1 NDA). Cumulatively, 65 ANDAs are pending for approval with the USFDA of which 38 are Para IVs and 8 have First To File status.

Revenues from Emerging Markets for FY13 at Rs. 22.4 billion recorded year-on-year growth of 31%.

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Revenues from Russia for FY13 stood at Rs. 14.0 billion and recorded year-on-year growth of 27%, largely driven by volume growth in the major brands and new product launches.

Revenues from Other CIS markets for FY13 stood at Rs. 2.9 billion recorded yearon-year growth of 28%.

Revenues from Rest of World (RoW) territories at Rs. 5.5 billion recorded year-onyear growth of 42%. Of this Venezuela and Australia have shown strong growth in FY13 on the back of higher volumes for existing products and new product launches.

Revenues from India for FY13 at Rs. 14.6 billion recorded year-on-year growth of 13%.
o

Growth driven by volume increase across most key brands and new products launches.

o o

24 new brands were launched. IMS Mar 13, Dr. Reddys MAT Gr% 13.7% Vs IPM MAT Gr% of 10.2%. (Source: IMS).

Biosimilars portfolio has grown by 25% in FY13 compared to FY12.

Pharmaceutical Services and Active Ingredients (PSAI)

o o

Revenues from PSAI for FY13 at Rs. 30.7 billion, recorded Year-on-year growth of 29%. High growth on account of increased sales to generic customers on account of patent expirations and higher customer orders in the custom pharmaceutical business.

During the year, 47 DMFs were filed globally, including 5 in the US and 10 in Europe. The cumulative number of DMF filings as of March 31, 2013 is 577.

Income Statement Highlights:

o

Gross profit margin stood at 52.1% in FY13 as compared to 55.1% in FY12. Adjusted for the olanzapine exclusivity in FY12, the gross profit margins remained stable. Gross profit

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margin for Global Generics and PSAI business segments are at 59.0% and 32.5% respectively for FY13.
o

Selling, General and Administration (SG&A) expenses including amortization at Rs. 33.6 billion increased Year-on-year by 16%. The increase is primarily on account of regular year-on-year increments in manpower costs, selling costs and the effect of rupee depreciation against multiple currencies. SG&A as a percentage to sales stood at 29% in FY13 and compared to previous year there is a fall of 100 bps indicating improved operating leverage.

Research & development expenses for FY13 at Rs. 7.7 billion is at 6.6% of revenues as against Rs. 5.9 billion at 6.1% of revenues in FY12.

During the year Dr. Reddys benefited by an amount of USD 22.5 Mn from one-time settlement done with Nordion Inc [which is formerly MDS Inc]. The settlement is towards the damages sustained by the Company due to the breach by Nordion of the then existing Laboratory services agreement for bioequivalence studies.

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PRIMARY ASSETS HELD BY THE COMPANY:

Global Generics (CG) segment: This includes the companys branded and unbranded Over the Counter (OTC) drug products business. Pharmaceutical Services and Active Ingredients (PSAI) segment: this consists of Active Pharmaceutical Ingredient (API) business and Custom Pharmaceutical Services (CPS) business. Proprietary Products Segment: this consists of the companys New Chemical Entities (NCE), Differentiated Formulations and dermatology focused specialty business. Technical Knowhow: Copyrights and patents

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COMPANYS PERFORMANCE
The companys three core businesses and their business growth for the FY2013 are as under: 1. Global Generics (GG) Revenues increased by 18% and stood at Rs.82.6 billion. Growth was primarily driven by North America and the Emerging Markets. 2. Pharmaceutical Services and Active Ingredients (PSAI) 3. Proprietary Products

Key Highlights Consolidated revenues for FY13 at Rs. 116.3 billion, recorded year-on-year growth of 20%. Excluding the beneficial impact of olanzapine exclusivity in FY12, registered year-on-year growth of 26%. Growth primarily driven by North America and Emerging Markets (which include Russia, other CIS countries and Rest of World (RoW) territories) in the Global Generics segment; and overall performance by Pharmaceutical Services and Active Ingredients segment. Consolidated revenues of Rs. 33.4 billion in Q4 FY13, year-on-year growth of 26%. EBITDA of Rs. 27.8 billion in FY13, 24% of revenues, with year-on-year growth of 9.5%. EBITDA of Rs. 9.3 billion in Q4 FY13, 28% of revenues, with year-on-year growth of 37%. Profit after tax for FY13 at Rs. 17.5 billion, 15% of revenues with year-on-year growth of 17% Profit after tax of Rs. 5.7 billion in Q4 FY13, 17% of revenues with year-on-year growth of 67%. During the year, the company launched 78 new generic products, filed 56 new product registrations and filed 47 DMFs globally. During the quarter, the company launched 18 new generic products, filed 14 new product registrations and filed 17 DMFs globally.

The companys performance in the FY2013 surpassed the FY2012 performance in all its areas. The key financial indicators of the company during the last two years
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FY2013 and FY2012 are tabulated below with the comparative percentage analysis in the last column. (Rs million) Financial Indicator Consolidated Revenue EBITDA Profit After Tax Earnings per Share Business Performance: Global Generics PSAI Revenue distribution: North America Russia & CIS Countries India 12,931 14,560 +13% 31,889 13,260 37,846 16,908 +19% +28% 70,243 23,812 82,563 30,702 +18% +29% 25,409 14,262 83.8 27,819 16,776 98.4 +9.5% +18% +17% FY2012 96,737 FY2013 116,266 Increase/Decrease +20%

Revenue showed a compounded annual growth rate (CAGR) of 14% and EBITDA showed CAGR of 16% over a 5 year period from FY2009 FY2013. EPS improved from Rs 50 in FY2009 to Rs 103 in FY2013. ROCE improved from 16% in FY2009 to 23% in FY2013.

FY13 Particulars ($) PBT Interest and Income from Mutual Funds Depreciation Amortization & Impairment 398 (2 71 44 (Rs.) 21,677 ) (94 3,859 2,378

FY12 ($) 339 ) 13 67 48 (Rs.) 18,466 690 3,628 2,626

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EBITDA

510

27,820

466

25,409

Net Finance income in FY13 is at Rs. 460 million compared to the net finance income of Rs. 160 million in FY12. The change is on account of: Net forex gain of Rs. 365 million in FY13 compared to net forex gain of Rs. 689 million. Net interest expense of Rs. 118 million in FY13 compared to net interest expense of Rs. 690 million in FY12. Incremental income from mutual funds of Rs. 51 million in FY13 over FY12. EBITDA for FY13 is Rs. 27.8 billion, 24% of revenues and increased by 9.5% as compared to the previous year. Profit after Tax in FY13 at Rs. 17.5 billion, 15% of revenues and increased by 17% as compared to the previous year. Diluted earnings per share in FY13 are Rs. 98.4 Capital expenditure for FY13 is Rs. 6.6 billion.

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FUTURE PROSPECTS
Dr Reddys 3 main business segments are described as under: Global Generics (CG) segment: This includes the companys branded and unbranded Over the Counter (OTC) drug products business. Pharmaceutical Services and Active Ingredients (PSAI) segment: this consists of Active Pharmaceutical Ingredient (API) business and Custom Pharmaceutical Services (CPS) business. Proprietary Products Segment: this consists of the companys New Chemical Entities (NCE), Differentiated Formulations and dermatology focused specialty business.

The company has a strong presence in highly regulated markets such as the United States, UK and Germany and also in other markets such as Russia, South Africa, India and others.

The revenue details of the company including geographical location wise is given in the key financial indicators as above.

Outlook for the Pharmaceutical Industry:

The global pharmaceutical market is expected to cross USD 1 trillion in 2013. This growth will be largely contributed by what is called the Pharmerging markets, generics and biologics space. At the same time, the developed markets are expected to register slower growth. The global pharma market is at an interesting point in time. To understand this, we need to focus on the opportunities and challenges.

The Opportunities: The scientific foundation of pharma industry is growing exponentially thanks to the huge increase in computing and processing power, significant advances in genetics and genomics and powerful data management tools. This has transformed bio medical research. By 2020, genetic testing will be part of the mainstream medical practice in some countries. There is general shift in the mindset of the people from post facto to
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preventive medication. This has increased the demand for diagnosis and preventive medication. Research shows that over 30% of the population wont get sufficient physical exercise, more than 20% will be overweight or obese and more than 30% will be 60 years or older. All these factors increase the risk of developing heart disease, diabetes or cancer.

Favourable outlook for pharmerging markets and increase in genericization in key markets will drive growth in the near future. Recent advances in biologics indicate previously unmet areas of oncology and auto-immune diseases will be brought under medicine.

The Challenges:

The industry also faces some serious challenges. The rate of innovation is declining. Regulations are becoming more onerous. Market conditions are getting seriously competitive. The health costs everywhere continue to rise.

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CORPORATE SOCIAL RESPONSIBILITY OF THE COMPANY Key areas in corporate social responsibility of the company: The Securities and Exchange Board of India (SEBI) regulates corporate governance for listed companies through Clause 49 of its Listing Agreement. Dr. Reddys is in full compliance with Clause 49. It is also in compliance with the applicable corporate governance standards of the New York Stock Exchange (NYSE).

Corporate social responsibility at Dr. Reddy's is about enhancing healthcare, imparting education, developing skills, providing opportunities and unlocking the doors of progress. It is not an expense, but an investment into our collective future. The companys focus has primarily been on three life-altering areas: Patient Care, Education and Livelihood. The company channels its wide network of social activities through Dr. Reddys Foundation (DRF), addresses health education needs and patient care activities through Dr. Reddys Foundation for Heath Education (DRFHE) and creates positive impact on communities through Corporate Social Responsibility (CSR) teams in each location. Dr. Reddys Foundation (DRF): DRF is a non-profit partner of Dr. Reddys Laboratories and its interventions span two sectors: Livelihoods: Through a wide array of vocational training programs, DRF addresses the issues of employability, income generation and consequent improvement in quality of life. As of now, the program has touched 2, 63,000 livelihoods. Education: DRF strives to provide various opportunities for learning to those who have never been to school, or have dropped out of it; it also works to improve the quality of education in schools. Dr. Reddys Foundation for Health Education (DRFHE): Dr. Reddys instituted the Dr. Reddys Foundation for Health Education (DRFHE) with a vision to be a globally admired provider of healthcare education.

DRFHE aims to create professionals who work with the medical fraternity to offer an integrated, multi-disciplinary approach to good health.
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The Programs are aimed at building necessary soft skills with an objective of strengthening the healthcare delivery system for better patient care.

DRFHE has a vision of to become a globally admired provider of innovative healthcare vistas by making a difference to 100,000 individuals in the healthcare value chain by 2012. Dr. Reddys drives development initiatives in the vicinity of our manufacturing units, primarily in the areas of Health and Education.

Community care: The company does research on community needs, develop and pilot new projects, scale them up, and once proven, collaborate with the government and various NonGovernmental Organizations (NGOs) to roll them out. Their commitment to care for community transcends boundaries across nations.

Sustainability thinking: People, Purpose, Planet: Sustainability is embedded in our DNA. Transparency, governance and ethical behavior are inherent at Dr. Reddys and evident caring for community and providing affordable and innovative medicines are the key ingredients of our business strategy. Sustainability Framework comprises of six key material issues: 1. Provide affordable and innovative medicines: To enhance the reach of our affordable generics we regularly enlarge our footprint by entering new geographies and penetrating deeper in our existing markets. 2. Being an employee of choice: Vibrant work environment allows employees to perform at peak potential, encourages transparent employee communication and policies, provides ample growth opportunities and rewards merit and results.

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3. Product Responsibility: The quality, benefits and safety - including reliable storage and supply are integral to our drugs. All our products meet regulatory and safety standards and approvals. 4. Environment Management and Climate Change: Integrate environment concerns right at the development and process design stage and analyze every decision through a green prism. 5. Sustainable Sourcing: From raising awareness, to empowering them through training, to equipping them with technology and best practices, to extending resource assistance, proactively help supply partners raise their sustainability quotient. 6. Caring for Communities: The company gives philanthropic assistance to create real opportunities for those who do not have access to them. The focus is on three life-altering areas: patient care, education and livelihood.

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REFERENCES & BIBLIOGRAPHY

BIBLIOGRAPHY

www.bseindia.com www.investopedia.com ww.prenhall.com www.cliffsnotes.com www.wisegeek.org www.caclubindia.com

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