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Company Information

Home » Market » Company Information

Dr. Reddy's Laboratories Ltd.

May 19
3928.05 +19.95 (+ 0.51 %)
 
VOLUME : 79507
Prev. Close 3908.10
Open Price 3850.00
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4014.20
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Offer PRICE (Qty.) 0.00 (0)
52 WK LOW / HIGH
3655.00
 
 
 
5613.65
May 19
3929.45 +23.65 (+ 0.61 %)
 
VOLUME : 1825811
Prev. Close 3905.80
Open Price 3886.00
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3829.05
 
 
 
4014.75
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Offer PRICE (Qty.) 0.00 (0)
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Company Information Menu

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Market Cap. ( ₹ ) 65396.21 Cr. P/BV 3.71 Book Value ( ₹ ) 1,060.03
52 Week High/Low ( ₹ ) 5615/3654 FV/ML 5/1 P/E(X) 33.51
Bookclosure 15/07/2021 TTM EPS ( ₹ ) 158.80 Div Yield (%) 0.64
DIRECTOR'S REPORT
You can view full text of the latest Director's Report for the company.
Year End :2021-03 

TABLE 1 | FINANCIAL HIGHLIGHTS

(f MILLION)

PARTICULARS

CONSOLIDATED

STANDALONE

FY2021

FY2020

FY2021

FY2020

Total income

193,389

181,376

141,502

125,936

Profit before depreciation, amortization, impairment and tax

47,411

46,694

39,062

35,650

Depreciation and amortization

12,288

11,631

8,350

7,892

Impairment of non-current assets

6,768

16,767

150

-

Profit before tax and before share of equity accounted investees

28,355

18,296

30,562

27,758

Share of profit of equity accounted investees, net of tax

480

561

-

-

Profit before tax

28,835

18,857

30,562

27,758

Tax expense

9,319

(1,403)

8,698

(1,619)

Net profit for the year

19,516

20,260

21,864

29,377

Opening balance of retained earnings

128,349

112,000

124,979

99,511

Net profit for the year

19,516

20,260

21,864

29,377

Other comprehensive income/(loss)

3

5

3

5

Dividend paid during the year

(4,147)

(3,314)

(4,147)

(3,314)

Tax on dividend paid

-

(602)

-

(600)

Transfer to general reserve

-

-

-

-

Transfer to SEZ re-investment reserve, net

(1,326)

-

(1,326)

-

Closing balance of retained earnings

142,395

128,349

141,373

124,979

*The conversion rate is considered as US$ 1 = ' 73.14.

Note: FY2021 represents fiscal year 2020-21, from April 1, 2020, to March 31, 2021, and analogously for FY2020 and other such labelled years.

nature of business of the company. Further, there was no significant change in the nature of business carried on by its subsidiaries.

MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY

There have been no such changes.

SUBSIDIARIES AND ASSOCIATES

The company had 52 subsidiaries and one joint venture company as on March 31, 2021. During FY2021, Dr. Reddy’s (Beijing) Pharmaceutical Company Limited in China and Dr. Reddy’s Formulations Limited in India were incorporated as a step-down subsidiary company and a wholly-owned subsidiary, respectively. Pursuant to sale of the membership interests in DRANU, LLC, it ceased to be a joint venture during the year. Further, the company sold its Contract Development and Manufacturing Organization (CDMO) division of Custom Pharmaceutical Services (CPS) business to Aurigene Pharmaceutical Services Limited (APSL), a wholly-owned subsidiary, on slump sale basis, for a consideration of ' 5,434.5 million.

Section 129(3) of the Act, states that where the company has one or more subsidiaries or associate companies, it shall, in addition to its financial statements, prepare a consolidated financial statements of the company and of all subsidiaries and associate companies in the same form and manner as that of its own and also attach along with its financial statements, a separate statement containing the salient features of the financial statements of its subsidiaries and associates.

Hence, the consolidated financial statements of the company and all its subsidiaries and associates, prepared in accordance with Ind AS 110 and 111 as specified in the Companies (Indian Accounting Standards) Rules, 2015, form part of the annual report. Moreover, a statement containing the salient features of the financial statements of the company’s subsidiaries and joint ventures in the prescribed Form AOC-1, is attached as Annexure I to the board’s report. This statement also provides details of the performance and financial position of each subsidiary and joint venture.

In accordance with Section 136 of the Act, the audited financial statements and related information of the company and its subsidiaries, wherever applicable, are available on the company's website: www.drreddys.com.

Dear Member,

Your directors are pleased to present the 37th annual report for the year ended March 31, 2021.

The financial year 2021 started with COVID-19 related lockdowns in India and several parts of our major markets. The pandemic which started about 15 months back impacted almost everyone and your company was no exception. There were challenges around movement of people and all the business operations were impacted — be it manufacturing, research and development (R&D), marketing or the supply chain and logistics. Our team accepted the situation as a challenge and solved the issues one by one to ensure that your company continues to make medicines and serve its patients across the globe.

We also collaborated with multiple global partners and have been developing a number of COVID-19 related drugs. We have successfully launched a vaccine. We found new ways of working by leveraging digitalization and undertaking several precautionary measures to ensure the health and safety of our employees and business partners. We contributed our bit to support the needy and front line workers. Our actions during the pandemic have been driven by our purpose of ‘Good Health Can’t Wait’ and reflect the dynamism and empathy which are core to us.

FINANCIAL HIGHLIGHTS AND COMPANY AFFAIRS*

Table 1 gives the consolidated and standalone financial highlights of the company based on Indian Accounting Standards (Ind AS) for FY2021 (i.e. from April 1, 2020, to March 31, 2021) compared to the previous financial year.

The company’s consolidated total income for the year was f 193.39 billion, which was up by 7% over the previous year. This amounted to US$ 2.64 billion. Profit before tax (PBT) was f 28.84 billion, representing an increase of 53% over the previous year. This translated to US$ 394 million.

The company’s standalone total income for the year was f 141.50 billion, which was up by 12% over the previous year. This was US$ 1.93 billion. PBT was f 30.56 billion (US$ 418 million), which was up by 10% in rupee terms over the previous year.

Revenues from Global Generics were up by 12% and stood at f 154.4 billion. There was growth across North America Generics, Emerging Markets and India, with strong growth in Europe.

Revenues from North America stood at f 70.5 billion, registering a year-on-year growth of 9%. This was largely on account of revenue contribution from new products launched, increase in volumes for some of our base products, and favorable foreign exchange movement, partly offset by high price erosions in some of our products.

During the year, the company filed 20 abbreviated new drug applications (ANDAs) and one new drug application (NDA) under Section 505(b)(2) in the USA. As of March 31, 2021, there were 95 generic filings awaiting approval with the US Food and Drug Administration (USFDA), comprising 92 ANDAs and three NDAs filed under Section 505(b)(2). Of the 92 ANDAs, 47 are Para IV applications, and we believe that 23 of these have ‘First to File’ status.

Revenues from Emerging Markets were f 35.1 billion, registering a year-on-year growth of 7%. Revenues from India stood at f 33.4 billion, showing a year-on-year growth of 15%. Revenues from Europe were f 15.4 billion, or a year-on-year growth of 32%.

Revenues from Pharmaceutical Services and Active Ingredients (PSAI) stood at f 32 billion, with a year-on-year growth of 24%. During the year, the company filed 149 drug master files (DMFs) worldwide, including 14 filings in the US.

SCHEME OF AMALGAMATION

During FY2020, the scheme of amalgamation of Dr. Reddy’s Holdings Limited with the company was approved by the board of directors, members and unsecured creditors of the company.

The no-observation letters from the BSE Limited and National Stock Exchange of India Limited were received on the basis of no comments received from the Securities and Exchange Board of India (SEBI). The petition for approval of the said scheme was filed with the Hon’ble National Company Law Tribunal (NCLT), Hyderabad Bench.

During FY2021, hearings on the petition took place and on April 20, 2021, the Hon’ble NCLT has reserved the order.

DIVIDEND

Your directors are pleased to recommend a dividend of f 25 (500%) for FY2021, on every equity share of f 5/-. The recommended dividend is in line with the dividend distribution policy of the company.

The dividend, if approved at the 37th annual general meeting (AGM) will be paid to those members whose names appear on the register of members of the company as of end of the day on July 12, 2021. In terms of the provisions of the Income Tax Act, 1961, such dividend will be taxable in the hands of the members.

In terms of Regulation 43A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations), the dividend distribution policy, is available on the company’s website on www.drreddys.com/ investors/governance/policies-and-documents/

TRANSFER TO RESERVES

The company has not proposed to transfer any amount to the general reserve.

SHARE CAPITAL

The paid-up share capital of your company increased by f 0.65 million to f 831.51 million in FY2021 due to allotment of 129,149 equity shares, on exercise of stock options by eligible employees through the ‘Dr. Reddy's Employees Stock Option Scheme, 2002’ and ‘Dr. Reddy’s Employees ADR Stock Option Scheme, 2007’.

On December 9, 2020, the company also listed its ADRs on NSE International Exchange in GIFT City, Gujarat (NSE IFSC).

PUBLIC DEPOSITS

The company has not accepted any deposits covered under Chapter V of the Companies Act, 2013 ("the Act"). Accordingly, there is no disclosure or reporting required in respect of details relating to deposits.

CHANGE IN THE NATURE OF BUSINESS, IF ANY

During the year, there was no change in the

These are also available for inspection during regular business hours at our registered office in Hyderabad, India and/or in electronic mode.

Any member desirous of inspecting such documents are requested to write to the company by sending an email to shares@drreddys.com.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

The company makes investments or extends loans/guarantees to its wholly-owned subsidiaries for their business purposes. Details of loans, guarantees and investments covered under Section 186 of the Act, along with the purpose for which such loan or guarantee was proposed to be utilized by the recipient, form part of the notes to the financial statements provided in this annual report.

CORPORATE GOVERNANCE AND ADDITIONAL SHAREHOLDERS’ INFORMATION

A detailed report on the corporate governance systems and practices of the company is given in a separate chapter of this annual report. Similarly, other information for shareholders is provided in the chapter on Additional Shareholders’ Information. A certificate from the statutory auditors of the company confirming compliance with the conditions of corporate governance is attached to the chapter on Corporate Governance.

MANAGEMENT DISCUSSION AND ANALYSIS

A detailed report on the Management Discussion and Analysis in terms of Regulation 34 of SEBI’s Listing Regulations is provided as a separate chapter in the annual report.

BOARD OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

During FY2021, members of the company approved the reappointment of Mr. G V Prasad as a whole-time director designated as co-chairman and managing director of the company for a further period of five years with effect from January 30, 2021. The members also approved the continuation of Mr. Prasad R Menon as an independent director, pursuant to regulation 17(1A) of the Listing Regulations, who attained the age of seventy five years.

Mr. G V Prasad retires by rotation at the forthcoming 37th AGM and being eligible, seeks reappointment.

Mr. Bharat N Doshi completed his term as an independent director on May 10, 2021, and does not seek reappointment. The board places on record its appreciation for his contributions as director of the company.

Mr. Saumen Chakraborty retired as chief financial officer of the company with effect from December 1, 2020. The board of directors, at its meeting held on October 28, 2020, appointed Mr. Parag Agarwal as chief financial officer of the company with effect from December 1, 2020. The board records its appreciation for the excellent work done by Mr. Chakraborty across various departments of the company, including finance, during his long stint at Dr. Reddy’s.

In accordance with Section 149(7) of the Act, each independent director has confirmed to the company that he or she meets the criteria of independence laid down in Section 149(6) of the Act, and is in compliance with Rule 6(3) of the Companies (Appointment and Qualifications of Directors) Rules, 2014 and Regulation 16(1)(b) of the Listing Regulations. Further, they have affirmed compliance to the code of conduct for independent directors as prescribed in Schedule IV of the Act.

For reference of the members, a brief profile of Mr. G V Prasad is given in the chapter on Corporate Governance and in the Notice convening the 37th AGM.

BOARD EVALUATION

As per provisions of the Act, and Regulation 17(10) of the Listing Regulations, an evaluation of the performance of the board, its committees and members was undertaken. For details, please refer to the chapter on Corporate Governance.

APPOINTMENT OF DIRECTORS AND REMUNERATION POLICY

Assessment and appointment of members to the board are based on a combination of criterion that includes ethics, personal and professional stature, domain expertise, gender diversity and specific qualifications required for the position. A potential board member is also assessed on the basis of independence criteria defined in Section 149(6) of the Act, and Regulation 16(1)(b) of the Listing Regulations.

In accordance with Section 178(3) of the Act, Regulation 19(4) of the Listing Regulations and on recommendation of the company’s nomination, governance and compensation committee, the board adopted a remuneration policy for directors, KMP, senior management and other employees. The policy is attached in the chapter on Corporate Governance.

NUMBER OF BOARD MEETINGS

The board of directors met five times during the year. In addition, an annual board retreat

was held to discuss strategic matters.

Details of board meetings and the board retreat are given in the chapter on Corporate Governance.

AUDIT COMMITTEE

As on March 31, 2021, the audit committee of the board of directors consisted entirely of independent directors: Mr. Sridar Iyengar (chairman), Ms. Kalpana Morparia,

Mr. Bharat N Doshi and Ms. Shikha Sharma. Mr. Bharat N Doshi ceased to be a member of the committee on completing his term as a director on May 10, 2021. Further details are given in the chapter on Corporate Governance. The board has accepted all recommendations made by the audit committee during the year.

DIRECTORS’ RESPONSIBILITY STATEMENT

In terms of Section 134(5) of the Act, your directors state that:

1. applicable accounting standards have been followed in the preparation of the annual accounts;

2. accounting policies have been selected and applied consistently. Judgments and estimates made are reasonable and prudent, so as to give a true and fair view of the state of affairs of the company at the end of the FY2021 and of the profit of the company for that period;

3. proper and sufficient care has been taken to maintain adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

4. annual accounts have been prepared on a going concern basis;

5. adequate internal financial controls for the company to follow have been laid down and these are operating effectively; and

6. proper and adequate systems have been devised to ensure compliance with the provisions of all applicable laws and these systems are operating effectively.

ADEQUACY OF INTERNAL FINANCIAL CONTROL SYSTEMS

The company has in place adequate internal financial controls with reference to its financial statements. These controls ensure the accuracy and completeness of the accounting records and the preparation of reliable financial statements.

ENTERPRISE RISK MANAGEMENT

The company has a risk management committee of the board, consisting entirely of independent directors, and chaired by Ms. Shikha Sharma. Details of the committee and its terms of reference are set out in the chapter on Corporate Governance.

The audit and risk management committees review key risk elements of the company’s business, finance, operations and compliance, and their respective mitigation strategies. The risk management committee reviews strategic, business, compliance and operational risks, while issues around ethics and fraud, internal control over financial reporting (ICOFR), as well as process risks and their mitigation, are reviewed by the audit committee.

The company’s finance, investment and risk management council (FIRM council) and the compliance council are management level committees which operate under a charter and focus on risks associated with the company’s business and compliance matters. The FIRM council and the compliance council periodically review matters pertaining to risk management and compliance and ethics respectively. Additionally, the enterprise wide risk management (ERM) function helps management and the board to prioritize, review and measure business risks against a pre-determined risk appetite, and their suitable response, depending on whether such risks are internal, strategic or external.

During FY2021, focus areas of risk management committee included review of cyber security, ethics and compliance program across the company and monitoring environmental and climate change related risks and other operating risk exposures.

RELATED PARTY TRANSACTIONS

In accordance with Section 134(3)(h) of the Act, and Rule 8(2) of the Companies (Accounts) Rules, 2014, the particulars of the contracts or arrangements with related parties referred to in Section 188(1) of the Act, in Form AOC-2 is attached as Annexure II to the board’s report. All contracts and arrangements with related parties were at arm’s length and in the ordinary course of business of the company. Details of related party disclosures form part of the notes to the financial statements provided in the annual report.

VIGIL MECHANISM/WHISTLE-

BLOWER/OMBUDSPERSON

POLICY

The company has an ombudsperson policy (whistle-blower/vigil mechanism) to report concerns. Reporting channels under the vigil mechanism include an independent hotline, a web based reporting site (drreddys.ethicspoint.com) and a dedicated e-mail to chief compliance officer. The ombudsperson policy also safeguards against retaliation of those who use this mechanism. The audit committee chairperson is the chief ombudsperson.

The policy also provides for raising concerns directly to the chief ombudsperson. Details of the policy are available on the company’s website: www.drreddys.com/investors/ governance/ombudsperson-policy.

STATUTORY AUDITORS

M/s. S.R. Batliboi & Associates LLP, chartered accountants (firm registration no. 101049W/E300004) were appointed as statutory auditors of the company at the 32nd AGM held on July 27, 2016, for a period of five years till the conclusion of the 37th AGM.

Consequently, M/s. S.R. Batliboi & Associates LLP, chartered accountants, complete their first term of five consecutive years as the statutory auditors of the company at the conclusion of 37th AGM of the company.

Pursuant to section 139(2) of the Act, the company can appoint an auditors firm for a second term of five consecutive years.

M/s. S.R. Batliboi & Associates LLP, have consented to the said reappointment, and confirmed that their reappointment, if made, would be within the limits specified under Section 141(3)(g) of the Act. They have further confirmed that they are not disqualified to be reappointed as statutory auditor in terms of the provisions of the Act, and the provisions of the Companies (Audit and Auditors) Rules, 2014, as amended from time to time.

The audit committee and the board of directors recommend the reappointment of M/s. S.R. Batliboi & Associates LLP, chartered accountants, as statutory auditors of the company from the conclusion of the 37th AGM till the conclusion of 42nd AGM, to the members.

SECRETARIAL AUDITOR

Pursuant to Section 204 of the Act, and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, M/s. Makarand M. Joshi & Co., practicing company secretaries (certificate

of practice no. 3662), Mumbai, India, were appointed as secretarial auditors of the company for FY2021. The secretarial audit report for FY2021 is annexed as Annexure III to this report.

Based on the consent received from M/s. Makarand M. Joshi & Co., practicing company secretaries (certificate of practice no. 3662), Mumbai, India and on the recommendation of the audit committee, the board has approved their appointment as the secretarial auditor of the company for FY2022.

COST AUDITORS

Pursuant to Section 148(1) of the Act, read with the relevant Rules made thereunder, the company maintains the cost records in respect of its 'pharmaceuticals' business.

On the recommendation of the audit committee, the board has appointed M/s. Sagar & Associates, cost accountants (firm registration no. 000118) as cost auditors of the company for the FY2022 at a remuneration of ? 700,000/- plus reimbursement of out-of-pocket expenses at actuals and applicable taxes. The provisions also require that the remuneration of the cost auditors be ratified by the members. As a matter of record, relevant cost audit reports for FY2020 were filed with the Central Government on August 28, 2020, within the stipulated timeline. The cost audit report for FY2021 will also be filed within the timeline.

AUDITORS’ QUALIFICATIONS, RESERVATIONS OR ADVERSE REMARKS OR DISCLAIMERS MADE

There are no qualifications, reservations or adverse remarks by the statutory auditors in their report, or by the practicing company secretary in the secretarial audit report. During the year, there were no instances of frauds reported by auditors under Section 143(12) of the Act.

SECRETARIAL STANDARDS

In terms of Section 118(10) of the Act, the company complies with Secretarial Standards 1 and 2, relating to the ‘Meetings of the Board of Directors’ and ‘General Meetings’ respectively as specified by the Institute of Company Secretaries of India and approved by the Central Government. The company has also voluntarily adopted the recommendatory Secretarial Standard-3 on ‘Dividend’ and Secretarial Standard-4 on ‘Report of the Board of Directors’ issued by the Institute of Company Secretaries of India.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE COURTS/REGULATORS/ TRIBUNALS

Securities class-action lawsuit in the USA

On August 25, 2017, a securities class action lawsuit was filed against the company, its then chief executive officer (CEO) and its then chief financial officer (CFO) in the United States District Court for the District of New Jersey. The company’s co-chairman, its chief operating officer (COO) of that time (since retired), and Dr. Reddy’s Laboratories, Inc., USA, were subsequently named as defendants in the case. The operative complaint alleges that the company made false or misleading statements or omissions in its public filings, in violation of the US federal securities laws, that the company’s share price dropped and its investors were affected.

On March 21, 2019, the District Court issued its decision (dated March 20, 2019) granting in part and denying in part the motion to dismiss. Pursuant to that decision, the Court dismissed the plaintiff’s claims on 17 out of the 22 alleged misstatements/omissions.

On May 15, 2020, Dr. Reddy’s Laboratories Limited, Dr. Reddy’s Laboratories, Inc., and certain of the company’s current or former directors and officers (collectively, the “Defendants”), have entered into a Stipulation and Agreement of Settlement (the “Stipulation”) with lead plaintiff i.e. the Public Employees’ Retirement System of Mississippi in the putative securities class action filed against the Defendants in the United States District Court for the District of New Jersey. As consideration for the settlement of the class action, the company has agreed to pay US$ 9 million. The settlement is subject to the approval of the court and may be terminated prior to court's approval pursuant to the grounds for termination set forth in the Stipulation.

Subject to the terms of the Stipulation, in exchange for the settlement consideration, the lead plaintiff and members of the settlement class who do not opt-out of this settlement would release, among other things, the claims that were asserted, or that they could have asserted, in this class action. In entering into the settlement, the Defendants do not admit, and explicitly deny, any liability or wrongdoing of any kind. Subject to the terms of the Stipulation, the settlement resolves the remainder of the litigation.

On December 23, 2020, the court issued a final order and judgment approving the settlement. Pursuant to the settlement/court order, the escrow was funded on January 4, 2021. The effective date of the settlement occurred on February 1, 2021, upon transfer of the settlement fund balance into the final escrow account.

As the company is adequately insured with respect to the aforesaid liability, the settlement did not have any impact on the company’s consolidated income statement for the year ended March 31, 2021.

INFORMATION REQUIRED UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013 The company has a policy to ensure prevention, prohibition and redressal of sexual harassment at the workplace. It has an apex committee and an internal complaints committee which operate under a defined framework for complaints pertaining to sexual harassment at workplace. Details are available in the principle 3 of the Business Responsibility Report forming part of this annual report.

CORPORATE SOCIAL RESPONSIBILITY (CSR) INITIATIVES

As per Section 135 of the Act, the company has a board-level CSR committee consisting of Mr. Prasad R Menon (chairman), Mr. G V Prasad and Mr. K Satish Reddy. Based on the recommendation of the CSR committee, the board has adopted a revised CSR policy that provides guiding principles for selection, implementation and monitoring of CSR activities and formulation of the annual action plan. During the year, the committee monitored the spend and implementation and adherence to the CSR policy. Details of the CSR policy and initiatives taken by the company during the year are available on the company’s website: www.drreddys.com. The report on CSR activities is attached as Annexure IV to the board’s report.

BUSINESS RESPONSIBILITY REPORT

A detailed Business Responsibility Report as required under Regulation 34 of the Listing Regulations, is given as a separate chapter in this annual report.

TRANSFER OF UNPAID AND UNCLAIMED AMOUNTS TO INVESTOR EDUCATION AND PROTECTION FUND (IEPF)

Pursuant to the provisions of the Act, read with IEPF Authority (Accounting, Audit,

Transfer and Refund) Rules, 2016, as amended, declared dividends and interest on debentures which remained unpaid or unclaimed for a period of seven years have been transferred by the company to the IEPF, which has been established by the Central Government.

The above Rules also mandate transfer of shares on which dividends are lying unpaid and unclaimed for a period of seven consecutive years to IEPF. The company has issued individual notices to the members whose equity shares are liable to be transferred to IEPF, advising them to claim their dividend on or before August 18, 2021. Details of transfer of unpaid and unclaimed amounts to IEPF are given in the chapter on Additional Shareholders Information.

EMPLOYEES STOCK OPTION SCHEMES

During the year, there has been no change in the ‘Dr. Reddy’s Employees Stock Option Scheme, 2002’, the ‘Dr. Reddy’s Employees ADR Stock Option Scheme, 2007', and 'Dr. Reddy’s Employees Stock Option Scheme, 2018’ (collectively referred as ‘the schemes’).

The schemes are in compliance with the SEBI (Share Based Employee Benefits) Regulations, 2014.

Details are available on the company’s website: www.drreddys.com/investors/ governance/policies-and-documents/. The details also form part of note 2.24 of the notes to accounts of the standalone financial statements.

PARTICULARS OF EMPLOYEES

Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Act, read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are attached as Annexure V to the board’s report

In terms of Section 197(12) of the Act, read with Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, a statement showing the names and other particulars of the employees drawing remuneration in excess of limits set out in said rules forms part of the annual report.

Considering the first proviso to Section 136(1) of the Act, the annual report, excluding the aforesaid information, is being

sent to the members of the company and others entitled thereto. The said information is available for inspection at the registered office of the company or through electronic mode during business hours on working days up to the date of the forthcoming 37th AGM, by members. Any member interested in obtaining a copy thereof may write to the company secretary in this regard.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

The particulars as prescribed under Section 134(3)(m) of the Act, read with Rule 8(3) of the Companies (Accounts) Rules, 2014 are attached as Annexure VI to the board’s report.

ANNUAL RETURN

The annual return of the company as on March 31, 2021, in terms of the provisions of Section 134(3)(a) of the Act, is available on the company’s website: www.drreddys.com/investors/reports-and-filings/annual-reports/

ACKNOWLEDGMENT

Your directors place on record their sincere appreciation for the significant contribution made by its employees through their dedication, hard work and commitment, as also for the trust reposed in the company by the medical fraternity and patients. The board of directors also acknowledge the support extended by the analysts, bankers, government agencies, media, customers, business partners, members and investors at large.

It looks forward to your continued support in the company’s endeavor to accelerate access to innovative and affordable medicines, because Good Health Can’t Wait.

For and on behalf of the board of directors

K Satish Reddy

Chairman

Place: Hyderabad Date: May 14, 2021