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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 anannual 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 peer-

performance 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.

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ANALYSIS AND INTERPRETATION OF ANNUAL REPORT OF

DR.REDDYS LABORATORIES LTD.

MAIN CONTENTS OF THE ANNUAL REPORT

CHAIRMANS LETTERA letter from thechairman of the board toshareholders reporting on

thecompany'scondition usually made part of theannual report.The report, typically

no longer than two pages,includes a summary of initiatives,activities of the board,

andpersonalperspective of the company'sfuture.

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.

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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 segmentso Segment performanceo Revenues and why they earned how much they earnedo Geographic performanceo Sales and growth in saleso New products and Filings done in the yearo Challenges the company faceso Opportunities

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o Consolidated numberso GAAP wise numberso Risk managemento Human Resourceo 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 REPORTThe Directors' Reportis a document produced by theboard of directors under the

requirements ofUK company law,which details the state of the company and its

compliance with a set of financial, accounting andcorporate 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 theDirector's Remuneration Report and the

Company Accounts. Much of the Directors' Report requirements are basic harmonised

standards in all European companies, through theAccounts 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 animportant source of public information, as a form ofsocial accounting.

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CORPORATE GOVERNANCE:Corporate governancerefers 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 otherstakeholders)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

Theframework ofrules andpracticesby which aboard of directors ensuresaccountability,

fairness, andtransparency in acompany'srelationship with its

allstakeholders (financiers,customers,management,employees,government,and

thecommunity).

The corporategovernance framework consists of (1) explicit andimplicit contractsbetween

the company and the stakeholders fordistribution ofresponsibilities,rights,andrewards,

(2)procedures forreconciling the sometimes conflictinginterests of stakeholders inaccordance with theirduties,privileges,androles,and (3) procedures for

propersupervision,control,andinformation-flows to serve as asystem ofchecks-and-

balances.

Hence the company states all this in its corporate governance report.

RATIO ANALYSISA 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 analysisis 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

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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 trendanalysis 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 STATEMENTSA 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 amanagement

discussion and analysis:

1. Statement of financial position:also referred to as a balance sheet, reports on acompany'sassets,liabilities,andownership equity at a given point in time.

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2. Statement of comprehensive income:reports on a company's income, expenses, andprofits 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 itsoperating, investing and financing activities.

For large corporations, these statements are often complex and may include an extensive set

ofnotes to the financial statementsand 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 thatprovide an indication of an individuals, organizations,

or business financial status. There are four basic types: balance sheets, income statements,

cash-flow statements, and statements ofretained 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 thebalance 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 reportis a formalopinion,ordisclaimer thereof, issued by either aninternal

auditor or an independentexternal auditor as a result of an internal or

externalaudit orevaluationperformed on alegal entity or subdivision thereof (called an

"auditee"). The report is subsequently provided to a "user" (such as an individual, a group ofpersons, acompany,agovernment,or even thegeneral public,among others) as

anassurance 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'sreport 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 inglobal revenues.

5. Appreciable improvement in operationsRevenues 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 Americafor FY13 at Rs. 37.8 billion, recorded year-on-yeargrowth 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.

o Significant contribution from new products launched during the year. 14 newproducts 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.

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

status.

o Revenues from Emerging Marketsfor FY13 at Rs. 22.4 billion recorded year-on-yeargrowth of 31%.

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

product launches.

o Revenues from Other CISmarkets for FY13 stood at Rs. 2.9 billion recorded year-on-year growth of 28%.

o Revenues from Rest of World (RoW)territories at Rs. 5.5 billion recorded year-on-year 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.

o Revenues from India forFY13 atRs.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 24 new brands were launched.o IMS Mar 13, Dr.Reddys MAT Gr% 13.7% Vs IPM MAT Gr% of 10.2%. (Source:

IMS).

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

Pharmaceutical Services and Active Ingredients (PSAI)

o Revenues from PSAI for FY13 at Rs. 30.7 billion, recorded Year-on-year growth of 29%.o High growth on account of increased sales to generic customers on account of patent

expirations and higher customer orders in the custom pharmaceutical business.

o 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 forthe 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. 33.6billion 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.

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

o During the year Dr. Reddys benefited by an amount of USD 22.5 Mn from one-timesettlement 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 unbrandedOvertheCounter (OTC) drug products business.

Pharmaceutical Services and Active Ingredients (PSAI) segment: this consists ofActive 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-yeargrowth 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 of26%.

EBITDA of Rs. 27.8 billion in FY13, 24% of revenues, with year-on-year growthof 9.5%.

EBITDA of Rs. 9.3 billion in Q4 FY13, 28% of revenues, with year-on-yeargrowth of 37%.

Profit after tax for FY13 at Rs. 17.5 billion, 15% of revenues with year-on-yeargrowth of 17%

Profit after tax of Rs. 5.7 billion in Q4 FY13, 17% of revenues with year-on-yeargrowth of 67%.

During the year, the company launched 78 new generic products, filed 56 newproduct registrations and filed 47 DMFs globally.

During the quarter, the company launched 18 new generic products, filed 14 newproduct registrations and filed 17 DMFs globally.

The companys performance in the FY2013 surpassed the FY2012 performance inall 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 FY2012 FY2013 Increase/Decrease

Consolidated

Revenue

96,737 116,266 +20%

EBITDA 25,409 27,819 +9.5%

Profit After Tax 14,262 16,776 +18%

Earnings per Share 83.8 98.4 +17%

Business

Performance:

Global Generics 70,243 82,563 +18%

PSAI 23,812 30,702 +29%

Revenue

distribution:

North America 31,889 37,846 +19%

Russia & CIS

Countries

13,260 16,908 +28%

India 12,931 14,560 +13%

Revenue showed a compounded annual growth rate (CAGR) of 14% and EBITDA

showed CAGR of 16% over a 5 year period from FY2009FY2013. EPS improved

from Rs 50 in FY2009 to Rs 103 in FY2013. ROCE improved from 16% in FY2009

to 23% in FY2013.

ParticularsFY13 FY12

($) (Rs.) ($) (Rs.)

PBT 398 21,677 339 18,466

Interest and Income from Mutual Funds (2 ) (94 ) 13 690

Depreciation 71 3,859 67 3,628

Amortization & Impairment 44 2,378 48 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 financeincome 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. 689million.

Net interest expense of Rs. 118 million in FY13 compared to net interest expenseof 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 by17% 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 unbrandedOvertheCounter (OTC) drug products business.

Pharmaceutical Services and Active Ingredients (PSAI) segment: this consists ofActive 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 wontget 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,

Educationand 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 touched2, 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 anintegrated, 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 individualsin the healthcare

value chain by 2012.

Dr. Reddys drives development initiatives in the vicinity of our manufacturing units,

primarily in the areas of Healthand 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 Non-

Governmental 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 themwith 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

http://www.bseindia.com/http://www.investopedia.com/http://www.cliffsnotes.com/http://www.wisegeek.org/http://www.caclubindia.com/http://www.caclubindia.com/http://www.wisegeek.org/http://www.cliffsnotes.com/http://www.investopedia.com/http://www.bseindia.com/