MIRA INFORM REPORT

Report Date :

29.07.2008

IDENTIFICATION DETAILS

Correct Name :	DR. REDDYS LABORATORIES LIMITED

Registered Office :	7-1-27, Ameerpet, Hyderabad – 500016, Andhra Pradesh

Country :	India

Financials (as on) :	31.03.2008

Date of Incorporation :	24.02.1984

Com. Reg. No.:	01-4507

CIN No.: [Company Identification No.]	L85195AP1984PLC004507

TAN No.: [Tax Deduction & Collection Account No.]	HYDD00080D

Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

Line of Business :	Manufacturers and Sellers of Bulk Drugs, Formulations and Diagnostic Reagents and Kits.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Maximum Credit Limit :	USD 240000000

Status :	Excellent

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is an old, well-established and reputed company engaged in manufacturing and marketing of pharmaceuticals. The company manufactures wide range of pharmaceutical products in India and overseas. The company is making satisfactory progress in its business and profitability. Directors are well-experienced and resourceful businessmen. Their trade relations are fair. Payments are usually correct and as per commitments. It can be considered good for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	7-1-27, Ameerpet, Hyderabad – 500 016, Andhra Pradesh, India
Tel. No.:	91-40-23731946/23731397/26511723
Fax No.:	91-40-23731955/23734504
E-Mail :	drl@hd1.vsnl.net.in corpcom@drreddys.com vasudevan@drreddys.com pavanknvs@drreddys.com
Website :	http://www.drreddys.com

Corporate Office :	Bollaram Road, Miyapur, Hyderabad – 500050, Andhra Pradesh, India
Tel No.:	91-40-2304543

Administrative Office:	Generics Survey No. 41, FTO Unit, 3 Bachupally Ranga Reddy Disc, Hyderabad - 500123, Andhra Pradesh, India

Plants (In India) :	Bulk Drugs – I, II, III and IV · Plot Nos. 137, 138 & 146, IDA Bollarum, Jinnaram Mandal, Medak District - 502 320, Andhra Pradesh · Plot Nos. 110 & 111, IDA Bollarum, Jinnaram Mandal, Medak District - 502 320, Andhra Pradesh · Plot Nos. 116, IDA Bollarum, Jinnaram Mandal, Medak District - 502 320, Andhra Pradesh · Plot No. 9/A, Phase III, IDA Jeedimetla Ranga Reddy District – 500 055, Andhra Pradesh · Bulk Drugs – V Peddadevulapally, Tripuraram Mandal, Nalgonda District – 508207, Andhra Pradesh, India · Bulk Drugs – VI IDA Pydibheemavaram, Ransthal Mandal, Srikakulam District – 532409, Andhra Pradesh · Bulk Drugs – IX IDA Pydibheemavaram, Ransthal Mandal, Srikakularrf Dist, AP 532 409 Formulations · I – IDA Bollaram Jinnaram Mandal, Medak District – 502320, Andhra Pradesh, India · II- Survey No. 42, Bachupally Quthbullapur Mandal, Ranga Reddy District – 500123, Andhra Pradesh, India · III – R S No. 63/3 and 63/4, Thiruvandarkoil Mannvipet, Pondicherry – 605102, Tamil Nadu, India · IV – Ward – F, Block –4, Adavipolam, Yanam, Pondicherry – 533465, Tamil Nadu, India · V – Plot No. A-3 to A-6, Phase 1-A, Verna Industiral Estate, Verna, Goa – 403722 · VI – Khol, Nalagarh, Solan, Nalagarh Road, Baddi – 173205, Himachal Pradesh Generics · Survey No. 41, Bachupally Quthbullapur Mandal, Ranga Reddy District – 500043, Andhra Pradesh, India Boitech/Critical Care/Diagnostics · Survey No.47, Bachupally Quthbullapur Mandal, Ranga Reddy District – 500043, Andhra Pradesh, India Custom Chemical Services/Discovery Research · Bollaram Road, Miyapure, Hyderabad – 500050, Andhra Pradesh, India

Plants (Outside India) :	Riverview Road, Beverly, East Yorkshire, HU 17 Old United Kingdom Huangpujiangzhonglu Kunshan Economic and Technologica Development Zone, Jiangsu Province, China 208-214, York Road, Battersea, London, SW 11-3SD, United Kingdom

DIRECTORS

Name :	Mr. Satish Reddy
Designation :	Managing Director

Name :	Dr. P. Satyanarayana Rao
Designation :	Director

Name :	Dr. V. Mohan
Designation :	Director

Name :	Dr. Omkar Goswami
Designation :	Director

Name :	Mr. Ravi Bhoothalingam
Designation :	Director

Name :	Mr. P.N. Devarajan
Designation :	Director

Name :	Dr. A. Venkateswarlu
Designation :	Director

Name :	Mr. Krishna G. Palepu
Designation :	Director

Name :	Mr. Anupam Puri
Designation :	Non – Executive Director

Name :	Mr. J P Moreau
Designation :	Director

Name :	Mrs. Kalpana Morparia
Designation :	Director

KEY EXECUTIVES

Name	Mr. K. Satish Reddy
Designation	Managing Director and Chief Operating Officer
Age	33 Years
Qualification	B. Tech., M. S.
Experience	9 Years
Date of Joining	18^th January, 1993
Previous Employment	Director – Globe Organics Limited
Other Directorships	1. Diana Hotels Limited 2. DRL Investments Limited 3. Compact Electric Limited 4. Cheminor Investments Limited

Name	Dr. K. Anji Reddy
Designation	Executive Chairman
Age	61 Years
Qualification	B. Sc. (Tech.), Ph. D.
Experience	31 Years
Date of Joining	1^st September, 1986
Previous Employment	Managing Director – Standard Organics Limited
Other Directorships	1. Diana Hotels Limited 2. ICICI Venture Funds 3. Deccan Hospitals Corporation Limited 4. Biotech Consortium India Limited 5. Viral Therapeutic, Inc.

Name	Mr. G V. Prasad
Designation	Executive Vice Chairman and CEO

Name	Mr. V. S. Vasudevan
Designation	Chief Financial Officer
Name	Dr. R. Rajagopalan
Designation	President

Name	Mr. Arun Sawhney
Designation	President

Name	Mr. Abhijit Mukherjee
Designation	President

Name	Mr. K. B. Sankara Rao
Designation	Executive Vice President

Name	Mr. Saumen Chakraborthy
Designation	Executive Vice President

Name	Mr. S. Venkatraman
Designation	Senior Vice President

Name	Mr. Vilas M. Dholye
Designation	Senior Vice President

Name	Mr. Ashwani Kumar Malhotra
Designation	Senior Vice President

Name	Mr. C. V. Narayana Rao
Designation	Vice President

Name	Mr. Ranjan Chakraborthy
Designation	Vice President

Name	Dr. N. R. Srinivas
Designation	Vice President

Name	Dr. Javed Iqbal
Designation	Distinguish Research Scientist

Name	Mr. Jaspal Singh Bajwa
Designation	President

Name	Dr. Jayaram Chigurupati
Designation	Executive Vice President

Name	Dr. G. Om Reddy
Designation	Senior Vice President

Name	Mr. B.R. Reddy
Designation	Senior Vice President

Name	Mr. Arvind Vasudeva
Designation	Vice President

Name	Dr. M. Satyanarayana Reddy
Designation	Vice President

Name	Dr. R. Buchi Reddy
Designation	General Manager

Name :	Dr. K. Anji Reddy
Designation :	Executive Chairman

Name :	Mr. G.V. Prasad
Designation :	Vice Chariman and Chief Executive Officer

Brief Profile of Dr. K. Anji Reddy:

He is the founder and the Executive Chairman of Dr. Reddy’s Laboratories Limited. He is also the founder of the Dr. Reddy’s Group, Dr. Reddy’s Research Foundation and Dr. Reddy’s Foundation for Human and Social Development. He is the chairman of the Academy of Human Resources Development and chairman of the Research and Development Committee of the Federation of Indian Chamber of Commerce and Industry (FICCI). He is a member of both the Board of Trade and the Task Force on pharmaceuticals and knowledge-based industries, which was instituted by the Prime Minister. He has been recently honoured with the Padmashree by the Government of India, for his distinguished service in the field of trade and commerce.

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.05.2008:-

Category	No. of shares	% of shareholding
promoters’ holdings
Individuals	4479484	2.66
Companies	37798290	22.48

Indian Financial Institutions	21326158	12.68
Banks	412900	0.25
Mutual funds	10241938	6.09

Foreign Holdings
Foreign Institutional Investors	42244567	25.12
NRIs	3204573	1.91
American Depository Receipts / Foreign National	27665081	16.45

Indian Public and Corporate	20831095	12.38

Grand Total	168204086	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Sellers of Bulk Drugs, Formulations and Diagnostic Reagents and Kits.

Products :

Item Code No. [ITC Code] 29419003

Product Description Ciprofloxacin Hydrochloride

Item Code No. [ITC Code] 29420001

Product Description Norfloxacin

Item Code No. [ITC Code] 30049038

Product Description Omerprazole

Exports :

Products :

API’s Finished Formulations

Countries :

All Countries

Imports :

Products :

Chemicals
Packaging Materials
Packaging Machinery

PRODUCTION STATUS

Class of Goods	Unit	Actual Production

Formulations	Million Units	2816
Active Pharmaceutical ingredients and intermediates [API]	Tones	3101
Generics	Million Units	1939.48
Biotechnology – on single shift basis	Grams	73
Custom Pharmaceutical Services	Kilograms	219200

GENERAL INFORMATION

No. of Employees :	1449

Bankers :	Allahabad Bank, Industrial Finance Branch, Secunderabad, Andhra Pradesh, India Bank of Baroda, Khairatabad Branch, Hyderabad, Andhra Pradesh, India Canara Bank, Basheer Bagh, Hyderabad, Andhra Pradesh, India Canara Bank, India Citibank, Hyderabad, Andhra Pradesh, India Global Trust Bank Secunderabad, Andhra Pradesh, India HDFC Bank Hyderabad, Andhra Pradesh, India The Hongkong & Shanghai Banking Corporation Limited, Hyderabad, Andhra Pradesh, India State Bank of Hyderabad, Overseas Branch, Hyderabad, Andhra Pradesh, India State Bank of India, Industrial Finance Branch, Hyderabad, Andhra Pradesh, India State Bank of Mysore Industrial Finance Branch, Hyderabad, Andhra Pradesh, India Standard Chartered Grindlays Bank Limited, Hyderabad, Andhra Pradesh, India Andhra Bank, Balanagar Branch, Hyderabad – 500016, Andhra Pradesh, India

Banking Relations :	Good

Auditors :	Bharat S. Raut and Company Chartered Accountants

Associates :	Pathnet India Private Limited Aurantis Farmaceutica Limited Compact Electric Limited APR LLC Standard Organics Limited Dr. Reddy’s Exports Limited Sol Pharmaceuticals Limited

Subsidiaries :	JV Reddy Biomed Limited, Russia Reddy Pharmaceuticals Hong Kong Limited, Hong Kong Dr. Reddy’s Laboratories Inc., USA Reddy’s Cheminor S.A., France Reddy Antilles N.V. Aurigene Discovery Technologies Limited, India Dr. Reddy’s Laboratories {EU} Limited, UK [Formerly known as BMS Laboratories Limited, UK] Dr. Reddy’s Laboratories {EU} Limited, UK [Formerly known as Meridian Healthcare, UK] Chemnior Investments Limited, India DRL Investments Limited, India Dr. Reddy’s Laboratories Limited Dr. Reddy’s Laboratories [Proprietory] Limited, South Africa Dr. Reddy’s Biosciences Limited Reddy Netherlands B.V. , Netherlands Reddy Pharmaceuticals Singapore Pte. Limited, Singapore Reddy US Therapeutics Inc., USA AMPNH Inc. Zenovus Biotech Private Limited, India Compact Electric Limited, India Dr. Reddy’s Pharmaceutical Do Brasil Limited Kunshan Rotam Reddy Pharmaceutical Company Limited Globe Enterprises [a partnership firm in India] BMU Laboratories Limited Meridian Healthcare (U.K.) Limited

Membership :	Confederation of Indian Industry

CAPITAL STRUCTURE

(As on 31.03.2007):-

Authorised Capital :

No. of Shares	Type	Value	Amount

100000000	Equity Shares	Rs. 5/- each	Rs. 500.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

84090000	Equity Shares	Rs.10/- each	Rs.840.900 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		840.900	839.600	388.473
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		47277.200	42894.000	22237.944
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		48118.100	43733.600	22626.417
LOAN FUNDS
1] Secured Loans		34.000	19.200	1451.285
2] Unsecured Loans		4589.100	3279.800	7787.410
TOTAL BORROWING		4623.100	3299.000	9238.695
DEFERRED TAX LIABILITIES		0.000	0..000	530.847

TOTAL		52741.200	47032.600	32390.959

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		9874.200	6820.400	5618.151
Capital work-in-progress		2457.100	2806.100	1129.160

INVESTMENT		19306.200	8302.100	8217.937
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6409.300	4875.800	4430.968
	Sundry Debtors	8977.100	10557.000	5812.160
	Cash & Bank Balances	5373.400	14567.100	6509.429
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	12720.200	10285.600	6776.456
Total Current Assets		33480.000	40285.500	23529.013
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	7863.500	7319.500	5532.648
	Provisions	4512.800	3862.000	570.654
Total Current Liabilities		12376.300	11181.500	6103.302
Net Current Assets		21103.700	29104.000	17425.711

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		52741.200	47032.600	32390.959

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		34497.100	40472.200	21365.711
Other Income		1911.300	1150.300	0.000
Total Income		36408.400	41622.500	21365.711

Profit/(Loss) Before Tax		5841.000	13658.500	2637.646
Provision for Taxation		1088.800	1889.900	526.407
Profit/(Loss) After Tax		4752.200	11768.600	2111.239

Export Value		NA	NA	12100.041

Import Value		NA	NA	2744.535

Expenditures :
	Manufacturing Expenses	3765.200	2971.900	1720.500
	Administrative Expenses and Selling Expenses	8641.100	7532.400	5487.700
	Raw Material Consumed	11460.200	1040.18	7166.700
	Excise Duty	845.100	896.600	987.200
	Employee Cost	3156.600	2616.100	1524.165
	Interest and Financial Charges	146.900	519.600	246.200
	Power & Fuel	771.200	578.300	482.300
	Depreciation & Amortization	1619.900	1335.000	1113.300
	Other Expenditure	161.200	10473.920	0.000
Total Expenditure		30567.400	27964.000	18728.065

KEY RATIOS

PARTICULARS	31.03.2008	31.03.2007	31.03.2006
Debt Equity Ratio	0.09	0.19	0.28
Long Term Debt Equity Ratio	0.00	0.02	0.04
Current Ratio	2.37	2.20	1.85
TURNOVER RATIOS
Fixed Assets	2.27	3.45	2.05
Inventory	6.11	8.70	5.64
Debtors	3.53	4.94	4.21
Interest Cover Ratio	40.76	27.29	10.39
Operating Profit Margin (%)	22.05	38.33	17.44
Profit Before Interest and Tax Margin (%)	17.36	35.03	12.15
Cash Profit Margin (%)	18.47	32.38	14.12
Adjusted Net Profit Margin (%)	13.78	29.08	8.83
Return on Capital Employed (%)	12.00	35.94	9.24
Return on Net Worth (%)	10.35	35.47	8.57

LOCAL AGENCY FURTHER INFORMATION

HISTORY:

Subject was come to on track in the year 1984 in Hyderabad; it was established by Dr Anji Reddy with an initial capital outlay of Rs.2.500 Millions. It is a global pharmaceutical company with a presence in more than 100 countries and its doing well with wholly-owned subsidiaries in the US, UK, Russia, Germany and Brazil; joint ventures in China, South Africa and Australia; representative offices in 16 countries; and third-party distribution set ups in 21 countries. The company proven research capabilities and vertically integrated with a presence across the pharmaceutical value chain and it conducts research in the areas of diabetes, obesity, cardiovascular diseases, anti-infectives and inflammation. The Indian based company produces finished dosage forms, active pharmaceutical ingredients and biotechnology products which are marketed globally, with focus on India, US, Europe and Russia.

The company made its beginning with the manufacture of Active Pharmaceutical Ingredients and Intermediates (API) in 1984 and commenced operations with a single drug in a 60-tonne facility near Hyderabad, India. In 1986, the first consignment of that drug, Methyldopa, was shipped to West Germany. In 1988 the company acquired Benzex Laboratories Private Limited to expand its Bulk Actives business and in the next year it acquired American Remedies Limited, a pharmaceutical company based in India. In the year 1993 the company established Dr. Reddy's Research Foundation and started its Drug Discovery program. The company has membership in WTO since April 1994 and in the same year 1994 the company makes a GDR issue of USD 48 million.

The Company's Custom Pharmaceutical Services (CPS) business was formed in the year 2001, and in 2002 conducts its first overseas acquisition - BMS Laboratories Limited and Meridian Healthcare in UK, the company received ASIASTAR Award for Packaging Excellence 2002 for Mintop Forte - Customer Convenience Pack by Asian Packaging Federation in the year. Announced a 15-year exclusive product development and marketing agreement for OTC drugs with Leiner Health Products in the US by the company in the year 2003 and launched Ibuprofen, first generic product to be marketed under the "Dr. Reddy's" label in the US and it conferred WordStar Award for Packaging Excellence 2003 For Omez capsules pack with Anti-Counterfeiting Features. The acquisition of Trigenesis gives the company to access drug delivery technology platforms in the year 2004. Dr. Reddy's Lab increased focus point in CPS business after the acquisition of Roche's API manufacturing unit, Mexico in the year 2005 and in the same year the company acquired Roche's API Business at the state-of-the-art manufacturing site in Mexico with a total investment of USD 59 million. Announced the formation of Perlecan Pharma: India's First Integrated Drug Development Company and again announced India's first major co-development and commercialization deal for it's molecule Balaglitazone (DRF 2593), with Rheoscience. It made unique partnership for the commercialization of ANDAs with ICICI Venture, the Best Management Award 2005 by Labour Department; Govt. of Andhra Pradesh, India came to the company. In the year 2006 the company acquired Betapharm- the fourth-largest generics company in Germany for a total enterprise value of? 480 million and received Finance Asia Achievement Awards 2006 for Best India Deal - acquisition of Betapharm. Dr. Reddy's Lab becomes No.1 pharmaceutical company in India in turnover and profitability as on 2007.

The appreciation and recognition is a role to boost, as part the company has received plenty of awards and applications already, continued that, the company got Pharma Excellence Awards 2006-07 under the category of Sustained Growth by The Indian Express, Dun and Bradstreet American Express in Corporate Awards 2007, Best Corporate Social Responsibility Initiative 2007 by BSE - India and Amity Leadership Award for Best Practices in HR in Pharmaceutical Sector. 4th HR Summit '08.

Company has entered into a settlement agreement with Novartis Pharma AG on January 2008, which involves a stipulation of dismissal of the lawsuits in the United States relating to the Abbreviated New Drug Applications filed by the company for a generic version of rivastigmine tartrate capsules sold under the trade-name Exelon and in same month and year the company has launched Supanac (Diclofenac potassium immediate release 50 mg tablets) in India, increasing its offering in the Rs.27000.000 Millions in NSAID market. Supanac is in-licensed from Applied Pharma Research (APR), Switzerland and is used for Acute Pain management. On February, 2008 the company has entered into an agreement with Skye Pharma PLC to undertake a feasibility study of a product utilizing two of SkyePharma's proprietary drug delivery systems. Dr. Reddy's Laboratories announced that it has entered into a definitive agreement with The Dow Chemical Company to acquire a portion of Dowpharma Small Molecules business associated with its United Kingdom sites in Mirfield and Cambridge on 1st April 2008. In the same month of same year Company and 7TM Pharma has announced the signing of drug discovery collaboration on selected drug targets in the area of metabolic disorders. Under the terms of the agreement, Dr. Reddy's and 7TM Pharma will collaborate to identify clinical candidates for pre-selected targets. Both the parties will jointly develop these candidates from the pre-clinical stage up to Phase IIa (proof-of-concept). As on April 2008, the company has acquired Jet Generici Srl, a company engaged in the sale of generic finished dosages in Italy. The deal has been completed via Dr Reddy's Italian subsidiary.

SHARE CAPITAL:

The paid up Share Capital of The Company increased by Rs.1.302 Millions in the financial year ended 31 March 2008, due to allotment of 260,566 equity shares on exercise of Stock Options by the eligible employees under Dr. Reddy's Employees Stock Option Scheme, 2002.

MANAGEMENT DISCUSSION AND ANALYSIS

These were: creating a lean manufacturing organization across all the businesses; strengthening Company position in existing markets and in developing new geographies, building infrastructure to drive greater production, creating a faster and more focused product development process, building wider technical capabilities, leveraging the new acquisitions and optimizing efforts across the entire Company through best-in-class information technology networks.

These are not one-off processes and, therefore, have continued throughout 2007-08 as they will over the next several years. The Company believes that in the fast changing and increasingly competitive world of global pharmaceuticals, these processes will eventually differentiate company from many other players in the business.

Notwithstanding the organizational and operational gains achieved by the Company through these processes and building blocks for growth, it is a fact that 2007-08 saw a fall in Company consolidated revenues and profits vis-a-vis the previous year. There were four reasons for this.

First, the lack of any major US generics launch in 2007-08, either as authorized generics or under the 180-day exclusivity provisions of the hatch Waxman act.

This was very different from the year earlier, when the Company launched simvastatin and finasteride, the generic versions of Zocor. and Proscar. Respectively, of Merck as authorized generic products and ondansetron, the generic version of Zofran., under 180-days exclusivity. In addition, the Company had also launched Fexofenadine, the generic version of Allegra. During 2006-07, Simvastatin and Finasteride had contributed to Rs.15,813 million or 24 percent of Dr. Reddy's total revenues and the Company's market share for Fexofenadine was 11 percent as on 31 March 2007. The current year, 2007-08, saw no such launch -which led to a fall in revenues compared to 2006-07. Second, there were issues regarding betapharm, the Company's generics acquisition in Germany. For one, the German generics market remained very challenging. During the year, the government introduced further amendments in its health care law, which now requires patients to use medicines endorsed by their sick funds. This increased the bargaining power of these funds and resulted in lower prices. For another, in the first half of the year there were supply chain problems with betapharm's contract manufacturer, Salutas, which led to reductions in the quantity of formulations for the market. The supply chain problem was a blessing in disguise. It helped accelerate the process of migrating the production of a large number of betapharm's products to Dr. Reddy's operating facilities in India -and the supply pipeline has been restored. This is discussed in detail later in chapter. Nevertheless, the combination of lower realizations and supply chain constraints led to the revenues from betapharm remaining at same level; Rs.8,189 million in 2007-08 versus Rs.8,004 million a year earlier. They believe that the worst in Germany is probably over and that, thanks to migrating production to more efficient and lower cost facilities in India, Dr. Reddy's is well poised to profitably leverage demand growth in 2008-09. Third, the Company's Custom Pharmaceutical Services (CPS) business out of Mexico was also hindered by supply chain constraints in the beginning of 2007-08. These were linked to the supply of a key material for naproxen, the largest manufactured product in the Mexico facility. This, too, has had a positive outcome. The Company has now set up its own plant near Hyderabad at a cost of U.S.$. 14 million for manufacturing the necessary raw material to ensure uninterrupted supply. Fourth, 2007-08 saw exceptional fluctuations in the Indian rupee-US dollar exchange rate. The average daily US dollar value for 2007-08 was Rs.40.28 compared to Rs.45.24 during the previous year. While the Company took adequate foreign exchange cover against its exports, depreciation of the US dollar adversely affected realizations. Company key financial highlights for 2007-08 are given below. Despite the fall in revenue and profits, the Company's underlying business drivers have actually strengthened over the year. Here are some facts: The Branded Formulations business grew by 16 percent to generate revenue of Rs.15241 million in 2007-08, was driven by growth in both India as well as international markets. Revenues in India grew by 16 percent to Rs.8060 million, while revenue from international markets increased by 17 percent to Rs.7,181 million. In the international market, growth was primarily in Russia, the other CIS countries, Romania, Vietnam and Venezuela. Today, the Company sells over U.S.$. 100 million worth of branded formulations in Russia alone. In India, 2007-08 saw Dr. Reddy's launching Red ituxTM, a monoclonal antibody. The product contributed to a revenue of Rs.154 million, and demonstrated the Company's technological prowess in manufacturing a product in the biologics space. We launched 10 new products in the US generics market in 2007-08, including two over-the-counter (OTC) products. We have filed 122 cumulative Abbreviated New Drug Applications (ANDAs) up to date.

As on 31 March 2008, there were 70 ANDAs pending for approval at the US Food and Drug Authority (USFDA), including 10 tentative approvals. O Regarding Active Pharmaceutical Ingredients (APIs), the Company filed 23 Drug Master Files (DMFs) in the US during the year, taking the total filings to 127. It also filed 9 DMFs in Canada, 13 in Europe and 9 in the rest of the world. ‘The Company has also completed three acquisitions after 31 March 2008. These are: a. a part of the Dow Pharma small molecules business in the UK. We have acquired relevant customer contracts, associated products, process technologies, intellectual property rights, trademarks and the Dow Pharma small molecules facilities at Mirfield and Cambridge. The two sites and the business employ approximately 80 people.

They have also acquired a non-exclusive license to Dow's Pf nex ExpressionTechnologyTM for bio-catalysis development. b. Jet Generici Srl in Italy, which provides us with access to an essential product portfolio, a pipeline of registration applications, and a sales and marketing organization. c. BASF's pharmaceutical contract manufacturing business and manufacturing facility at Shreveport, Louisiana, USA. The business involves contract in the previous year manufacturing of generic prescription and OTC products for branded and generic companies in the US. It also includes customer contracts, related ANDAs, NDAs and trademarks as well as the Shreveport facility-which is designed to manufacture solid, semi-solid and liquid dosage forms, and employs about 150 people. O During the year, the Company invested Rs.6293 million on manufacturing, R&D facilities and other capital expenditure-the highest level of investment in a single financial year up to date. These investments will create the capacity to support Dr. Reddy's strategic growth agenda.

SUBSIDIARY COMPANIES:

The Company had 34 subsidiary companies as on 31 March 2008. The members may refer to the Statement under Section 212 of the Companies Act, 1956 and information on the financials of subsidiaries appended to the above Statement under Section 212 of the Companies Act, 1956 in this Annual Report for further information on these subsidiaries. The Ministry of Company Affairs vide its letter No. 47/310/2008-CL-III dated 19 May 2008 granted approval to the Company for not attaching the financials of subsidiary companies to the financials of the Company for the financial year 2007-08. The members, if they desire, may write to Company Secretary at Company 7-1-27, Ameerpet, and Hyderabad - 500016 to obtain a copy of the financials of the subsidiary companies.

TRENDS IN GLOBAL MARKETS

Note: Global market share numbers referred to in this and subsequent sections are based on latest available reports from IMS Health Inc. According to IMS Health Inc., the global pharmaceutical market is forecast to grow to U.S.$897 billion by 2011, at a compounded annual growth rate (CAGR) of 6.9 percent over the next five years. The forecast also predicts global pharmaceutical sales to expand to U.S.$. 735 billion to U.S.$. 745 billion in 2008, compared to U.S.$. 665 to U.S.$. 685 billion in 2007.

They Launched 10 New Products in the US generics market in2007-08, including two over-the-counter (OTC) products. They have filed 122 cumulative Abbreviated New Drug Applications (ANDAs) up to date.

NOTE: Unless otherwise stated, financial data given in this Management Discussion and Analysis is based on consolidated US GAAP financials.

GLOBAL REGIONAL PERFORMANCE

In the US, market growth slowed down to 4-5 percent in 2007 compared with the 6-7 percent in 2006. The Medicare Part D prescription drug benefit expanded the overall US market by nearly 1 percent in 2006, with a further expansion of 1-2 percent in 2007. However, the loss of patent protection for several key brands valued at U.S.$. 10 billion will significantly impact the market. Growth from new products will not be sufficient to offset the volume of branded drugs that shift to generics. In Europe, the top five markets (France, Germany, the UK, Italy and Spain) combined grew at 3-4 percent in 2007 - down from the 4-5 percent growth witnessed in 2006. While these countries are seeing increased demand from an ageing population, growth is being affected by cost-containment measures, incentives for using generics and increased scrutiny of the cost / benefit of drugs. The Japanese market grew at 5-6 percent in 2007. Emerging markets, including China and India, grew by more than 10 percent in 2006 and 2007, largely due to their expanding economies, increased affordability and broader access to healthcare. Growth in China was 15-16 percent, and the market size was around U.S.$. 15-U.S.$. 16 billion. Generally, locally manufactured generics dominate these markets.

Globally, an ageing population and improved diagnostics have increased demand for oncology treatment-a challenge that has been met with a strong innovation pipeline. Products used in the treatment of oncology reached a global value of U.S. $. 40-U.S. $. 45 billion in 2007, and contributed to nearly a fifth of total market growth. Among other major therapy classes, lipid-lowering medicines have grown to U.S. $. 30-U.S. $. 33 billion in 2007.

KEY MARKET TRENDS:

* Emerging markets are growing fast, while mature markets are slowing down In the US, Canada and the five largest European markets (France, Germany Italy, Spain and the UK) sales growth in 2008 is expected to range from 4 percent to 5 percent. The seven emerging markets of China, Brazil, Mexico, South Korea, India, Turkey and Russia are expected to grow at 12-13 percent in 2008, to U.S.$. 85 billion -U.S.$. 90 billion. This is due to increased availability of health care, and the growing need for treatments associated with chronic diseases.

* The wave of genericization will continue Drugs with approximately U.S.$. 20 billion in annual sales will face patent expiry in 2008-similar to levels seen over the past two years. Increased use of generics will be driven by an ageing population in the mature markets, higher level of generics prescriptions written in the US, new government contracting initiatives and a distinctly pro-generics thrust in Europe.

* Specialty and niche products are increasing in share It is anticipated that up to 29 innovative new medicines will be launched in 2008, of which 80 percent will be primarily prescribed by specialists. Products used in the treatment of oncology are expected to be between U.S.$. 40 billion and U.S.$. 45 billion in 2008, contributing nearly 17 percent of audited market growth. Overall growth in the audited specialty-driven market is forecasted at U.S.$. 295 billion to U.S. $. 305 billion or a 14-15 percent growth in 2008.

* Higher safety standards for pharmaceutical products The USFDA have established a Risk Communication Committee, a new arm designed to improve risk communication to the public. It will make critical decisions in 2008 regarding post-marketing surveillance, in light of the provisions of the Food and Drug Administration Amendments Act (FDAAA) of 2007, designed to enhance the agency's ability to safeguard and advance public health. It is expected that there will be greater limitation on the claims of newly approved medicines, the use of more 'black box' warnings on labels, greater clinical evidence being required by the regulators and slower approvals. Overall, these will raise the level of uncertainty faced by companies, as well as their ability to make products available to patients.

Intellectual property rights challenged on multiple fronts:

Intellectual property issues under review in 2008 could potentially have significant long-term effects on the patent-holders. The issue of compulsory licensing by nations, court rulings on composition of product and process patents, granting of patents in India, enforcement of IP rights in China, and reform of patent laws in the US and Europe will all play out to some extent during 2008 and 2009. Each of these adds uncertainty to the fundamental model that underpins the R&D-based pharmaceutical industry.

TRENDS IN INDIA

NOTE:

Information in this section is based on the Indian Pharmaceutical Overview Report, published by ORG IMS Research Private Limited. for the year ended December 2007. The Indian pharmaceutical market continues to be highly fragmented and dominated by Indian companies. Dr. Reddy's is listed in the Top-10. The industry has recorded retail sales of U.S.$. 7.76 billion, representing a value growth of 13 percent and volume growth of 12 percent. All the growth elements- new product introductions (8 percent growth), price (1 percent growth) and volume (4 percent growth) showed positive trends. Towns and cities are the highest contributors, growing at 13 percent. However, rural markets are showing a high growth potential - 19 percent-albeit over a lower base. While acute therapy dominates, accounting for 75 percent of the overall market in value terms, the chronic segments are growing at a faster pace-21 percent versus 11 percent for the acute segments.

Brand building has been the key growth driver for 2007, with new product introductions reaching new heights. The top-300 brands account for more than a fourth of the incremental value and 77 percent of the growth in market value in India has been contributed by brands launched after 2000. The pharmaceutical market is projected to grow at 11-13 percent per annum between fiscal 2008 and fiscal 2020, achieving a terminal market value of U.S.$. 30 billion. The major growth influencers will be population dynamics, high disease prevalence, increased health care access, changing health care models and greater capacity to spend.

DR. REDDY'S MARKET PERFORMANCE

REVENUES

The Company's consolidated revenues decreased by 23 percent to Rs.50,006 million in 2007-08 (U.S.$. 1 .25 billion). This was largely on account of four reasons discussed earlier in the overview. These are: a. No major US generics launch in 2007-08. In contrast, in 2006-07, the Company launched Simvastatin and Finasteride, the generic versions of Zocor and Proscar. respectively of Merck, as authorized generic products and Ondansetron, the generic version of Zofran., under 180-days exclusivity. During 2006-07, Simvastatin and Finasteride had contributed to Rs.15,813 million or 24 percent of Dr. Reddy's total revenues. However, post-patent expiry, their prices decreased significantly leading to considerable reduction in revenues from these products. b. The revenues from betapharm have largely remained at the same level at Rs.8189 million in 2007-08 versus Rs.8004 million a year earlier. This was due to pricing pressures in the German generics market as well as supply chain problems with betapharm's contract manufacturer, Salutas. The latter problem has been subsequently resolved with the manufacture of a large number betapharm's products migrating to Dr. Reddy's facility in India. c. The Company's Custom Pharmaceutical Services (CPS) business out of Mexico was also hindered by supply chain constraints in the beginning of 2007-08. The Company has now set up its own plant near Hyderabad for manufacturing the necessary raw materials. d. Exceptional fluctuations in the Indian rupee-US dollar exchange rate and a significant weakening of the US dollar vis-a-vis the rupee. Having said this, it is important to note Dr. Reddy's overall growth in revenues from 1999-2000 to 2007-08. Chart a plots the data in US dollars. It shows a 27 percent exponential trend rate of growth (i.e. trend CAGR) over the last nine years. It also shows that the Company, despite its lower performance in 2007-08, is solidly positioned as a more than U.S.$. 1 billion entity - and is poised for further growth.

ACTIVE PHARMACEUTICALS INGREDIENTS AND INTERNATIONAL (API):

Revenues from API remained largely at the same level amounting to Rs.11,805 million in 2007-08 compared to Rs.11,883 million in 2006-07. Sales outside India accounted for 80 percent of this business' revenues, compared to 83 percent in the previous year. The international business of API slightly declined to Rs.9,453 million in 2007-08, from Rs.9,806 million in the previous year. In 2006-07, the Company had posted significant sales of sertraline hydrochloride, largely driven by launch of its generic version in US. In the current year, the prices of this product and revenues from it have significantly decreased. However, this was partially offset by launch of other products in 2007-08. Revenue from Europe increased by 19 percent to Rs.2,521 million in 2007-08, primarily on account of increased sale of products such as olanzapine, escitalopram, ramipril and losartan. There was, however, a fall in sales of sertraline and amlodipine maleate. North America revenue grew by 13 percent, from Rs.2,030 million to Rs.2,289 million in 2007-08, mostly on account of increased sales of finastride and olanzapine. Sales in the emerging markets reduced by 18 percent -from Rs.5,659 million in 2006-07 to Rs.4,644 million in 2007-08. This was largely on account of de-growth in Israel due to lower revenues from sertraline hydrochloride, which was partially offset by growth in Turkey, Japan, South Korea and Mexico. Revenue from India increased by 13 percent to Rs.2,352 million in 2007-08, due to growth in the sales of clopidogrel, ramipril and fexofenadine. Chart C gives the geographical distribution of API revenues during 2007-08. Table 2 gives the revenues from the Company's top 10 API products in 2007-08 and 2006-07, and their growth.

INDIA

Revenues in India grew by 16 percent to Rs.8060 million in 2007-08, thanks to the performance of the top-10 brands, especially Omez, Razo and Atocor.

Omez, the Company's brand of omeprazole, grew by 16 percent compared to overall market growth of 7 percent, driven by continued success of a line extension, Omez D. Dr. Reddy's Omez now accounts for 47 percent of the total market.

Revenues from sales of Razo, Dr. Reddy's brand of rabeprazole, grew by 38 percent compared to overall market growth of 23 percent. The growth was aided by a specific market campaigns, and the brand now has a market share of around 12 percent. It also features in the industry's list of Top 300 Brands.

Atocor, Dr. Reddy's brand of Atorvastatin, grew by 29 percent compared to overall market growth of 38 percent. The growth was largely due to the launch of a line extension, Atocor N. The brand is currently ranked 4th with an 8 percent market share.

The Company launched Rituximab, the first monoclonal antibody bio-similar, under the brand name of Red ituxTM. The product contributed Rs.154 million in revenues in 2007-08. The Company's top-10 brands accounted for revenues worth Rs.3,724 million (46 percent of Branded Formulation's Indian revenues), and grew by 17 percent.

INTERNATIONAL:

Revenue from international markets increased by 17 percent to Rs.7181 million in 2007-08, from Rs.6122 million in 2006-07. This growth was primarily driven by Russia, CIS countries, Romania, Vietnam and Venezuela. The Russian pharmaceutical market witnessed a growth of 15 percent for calendar year 2007. In this high growth market, Dr. Reddy's revenues grew by 13 percent- due to strong contributions in the OTC segment as well as by prescription sales. The growth was largely led by key brands such as Omez, Nize, Keterol and Cetrine. Due to the Company's robust growth, it maintained its rank at 14th (Pharmexpert MQT March 2008), with a market share of 1.2 percent. Fiscal 2008 saw Dr. Reddy's Russian sales cross the U.S.$. 100 million mark. Revenue from CIS countries increased by 25 percent, largely contributed by Ukraine, Belarus and Uzbekistan. Romania grew by 38 percent, Vietnam by 21 percent and Venezuela by 68 percent. Chart D gives the geographical distribution of the Branded Formulations business.

GENERICS:

The Company's revenues from Generics decreased from Rs.33,224 million in 2006-07 to Rs.17,782 million in 2007-08. This was largely due to the lack of sales of authorized generics (AG) in 2007-08-which had contributed 48 percent of this segment's revenues in 2006-07.

North American revenue reduced from Rs 23,617 million in 2006-07 to Rs.8,024 million in 2007-08, again due to lower sales of AG products, which had accounted for 67 percent of this geography's revenues in 2006-07. Excluding AG, the rest of the Company's North American generics portfolio witnessed significant volume growth which more than offset pricing pressure. Company commenced its own OTC business with the launch of Ranitidine and Cetirizine. These products contributed Rs.263 million of revenues. Revenues from Europe grew to Rs.9,715 in 2007-08 from Rs.9,603 million in 2006-07. betapharm revenues increased to Rs.8189 million from Rs.8,004 million despite an unfavorable pricing and supply environment. With German demand looking up and given the transfer of production of many products to India, we expect improvements in betapharm's revenues as well as profits in 2008-09. Revenues from rest of Europe declined from Rs.1599 million in 2006-07 to Rs.1526 million in 2007-08, largely on account of decline in prices in UK.

2007-08 Also Saw the Highest Number of approvals for the Company's ANDA filings; 13 final approvals from the US and 4 from Canada, in addition to 7 tentative approvals from US. As of 31 March 2008, the Company's US Generic pipeline comprises 60 ANDAs pending with the USFDA.

CUSTOM PHARMACEUTICAL SERVICES (CPS)

Revenue in this segment reduced to Rs.4818 million in 2007-08 from Rs.6,600 million in 2006-07. As discussed earlier, this was on account of decrease in revenues from our key products- naproxen and naproxen sodium - on account of severe shortage of raw material at the beginning of the year. The problem has been resolved with the Company setting up its own plant at Miryalaguda, near Hyderabad, for manufacturing the necessary raw materials for its CPS business.

REGULATORY ACTIVITY:

A strong product pipeline strengthens the foundation of any pharmaceutical company. Dr. Reddy's has continued with its commitment to build a robust generics and API pipeline. In 2007-08, the Company filed 19 ANDAs in US including 10 Para IV filings. These ANDAs address innovator revenues of about U.S.$. 7.9 billion (IMS MAT, December 2007). Dr. Reddy's has filed 122 cumulative AN DAs as of 31 March 2008. 2007-08 also saw the highest number of approvals for the Company's ANDA filings: 13 final approvals from the US and 4 from Canada, in addition to 7 tentative approvals from the US. As of 31 March 2008, the Company's US Generic pipeline comprises 70 ANDAs pending with the USFDA, including 10 tentative approvals. Regarding APIs, the Company filed 54 DMFs in 2007-08. Of these, 23 were filed in US, 9 in Canada, 13 in Europe and 9 in other countries. As on 31 March 2008, the Company had cumulative filings of 281 DMFs, with 127 in the US.

BUILDING NEW CAPACITIES:

Growth requires state-of-the-art capacities. Realizing this, Dr. Reddy's has invested considerable efforts and funds to create new manufacturing and R&D capacities. A total of Rs.6293 million has been spent on building these capacities in 2007-08, Table 6 as above shows significant investments during the year.

OUTLOOK

Notwithstanding the setbacks in 2007-08, Dr. Reddy's looks forward to a strong performance in 2008-09. They believe that their core businesses of API and Formulations will show robust revenue growth and consequently, greater margin contribution. The Company's North American Generics business is expected to deliver stronger performance with new launches and upsides.

The Generics business in Europe should see stabilization after the effects of significant regulatory and industry changes in 2007-08. Their initiative to shift some of the betapharm's supplies to India has already started delivering value. With more products being shifted in 2008-09, the business will be further de-risked. By setting up a dedicated facility at Miryalaguda, near Hyderabad, for supplying inputs to Mexico, the Company believes that it has taken necessary steps to ensure that supply chain constraints do not affect the CPS business. They expect healthy growth of this segment in 2008-09. In addition, their strategic acquisitions in US and UK are also expected to create value for shareholders. They have been steadily building capabilities and resources over the years, and strengthened these further with several initiatives at improving productivity and reducing costs. They see these initiatives coming to bear in 2008-09 and thereafter-thus contributing to greater value creation. Moreover, they have committed significant investments in infrastructure and facilities for almost all their businesses to support revenue scale-ups in the near future. In line with their stated philosophy and strategy, we will continue to pursue both organic and inorganic options to achieve faster and more profitable growth. Having set aggressive targets across geographies and businesses, they look forward to a good 2008-09.

PRESS RELEASE:

Dr. Reddy’s acquires Jet Generici Srl. Acquisition to establish Generics business in Italy.

Hyderabad, India, April 3, 2008:

Dr. Reddy’s Laboratories Limited (NYSE:RDY) announced today that it has acquired Jet Generici Srl, a company engaged in the sale of generic finished dosages in Italy The deal has been completed via Dr Reddy’s Italian subsidiary, Reddy Pharma Italia SpA, which has been engaged in building a pipeline of registrations since its incorporation. The acquisition provides access to an essential product portfolio, a pipeline of registration applications, and a sales and marketing organisation. Financial terms and conditions of the transaction are not being disclosed.

Commenting on the acquisition, Mr VS Vasudevan, President & Head – Europe Operations said, "Dr Reddy’s has taken a significant step forward by establishing its business in the third largest pharmaceutical market in Europe. The acquisition has been well timed, since Dr Reddy’s will be able to immediately supplement the Jet Generici portfolio via its own pipeline. We already have registration for one significant Dr Reddy’s product, and a strong pipeline of registration applications. We believe that this strategic investment will generate substantial opportunities for long-term value creation in one of the fastest growing generic markets of the world.”

Disclaimer

This press release includes forward-looking statements, as defined in the U.S. Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on their current expectations and projections about future events. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such factors include, but are not limited to, changes in local and global economic conditions, their ability to successfully implement their strategy, the market acceptance of and demand for their products, their growth and expansion, technological change and their exposure to market risks. By their nature, these expectations and projections are only estimates and could be materially different from actual results in the future.

About Dr. Reddy’s

Dr. Reddy’s Laboratories was established in 1984 in Hyderabad, India, and is a global pharmaceutical company with proven research capabilities. Dr. Reddy’s conducts research in the areas of diabetes, obesity, cardiovascular diseases, anti-infectives and inflammation. The Indian based company produces finished dosage forms, active pharmaceutical ingredients and biotechnology products which are marketed globally, with focus on India, US, Europe and Russia.

Dr. Reddy’s signs definitive agreement to acquire Dowpharma Small Molecules business associated with Dow’s Mirfield and Cambridge, UK Sites

Hyderabad, India, April 1, 2008:

Dr. Reddy’s Laboratories (NYSE:RDY) today announced that it has entered into a definitive agreement with The Dow Chemical Company (NYSE:DOW) to acquire a portion of Dowpharma Small Molecules business associated with its United Kingdom sites in Mirfield and Cambridge. The financial terms and conditions of the transaction are not being disclosed at this point in time. The transaction is scheduled to close on April 30, 2008 pending regulatory approval.

The acquistion will include the relevant business, customer contracts, associated products, process technology, intellectual property, trademarks as well as the transfer of the facilities at Mirfield and Cambridge in the United Kingdom. The two sites and the business employ around 80 people. Dr. Reddy’s will also have a non-exclusive license to Dow’s Pfēnex Expression Technology™ for biocatalysis development.

Satish Reddy, Managing Director & Chief Operating Officer, Dr. Reddy’s Laboratories, said, “The proprietary chiral and biocatalysis technology at the Cambridge site and the scale up capability in the Mirfield site will add significant value to the company. This acquisition will also bring strengths in industrial synthesis of complex prostaglandins and carbohydrate chemistry. These newer capabilities will add to their existing R&D and commercial infrastructure to position Dr. Reddy’s as a leading provider of Custom Pharmaceutical Services globally.”

About The Dow Chemical Company

With annual sales of $54 billion and 46000 employees worldwide, Dow is a diversified chemical company that combines the power of science and technology with the "Human Element” to constantly improve what is essential to human progress. The Company delivers a broad range of products and services to customers in around 160 countries, connecting chemistry and innovation with the principles of sustainability to help provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. References to “Dow” or the “Company” mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

May 29, 2008, Hyderabad :

Dr. Reddy’s Laboratories Ltd. (NYSE: RDY) has launched Atocor-R (Atorvastatin + Ramipril) in India. It is the first such combination to be approved by DCGI and has completed a multicentre clinical trial data on Indian Patients.

It is a one of its kind combination that has two blockbuster molecules, Atorvastatin and Ramipril combined together for the first time as a fixed dose combination. Atocor-R It is used in the treatment of patients with both essential hypertension and hypercholesterolemia. It is available in two fixed dose combinations of Atocor-R 2.5 (Atorvastatin 10mg + Ramipril 2.5 mg ) and Atocor-R 5 (Atorvastatin 10mg + ramipril 5 mg) and comes is packs of 10.

Notes to the Editor:

· Atorvastatin market is currently valued at ~ Rs 3000.000 millions growing at over 34% annually

· Ramipril market is about Rs 1450.000 millions growing at over 15% annually

Brief mode of action of Atocor - R:

· Atocor (atorvastatin) is an HMG CoA reductase (3-hydroxy-3-methyl-glutaryl-CoA reductase enzyme) proven in lipid management and in secondary prevention of Cardiovascular events.

· Ramipril (cardiopril) is a proven cardioprotective agent.

· Atocor-R acts by inhibiting cholesterol synthesis in the liver and also by inhibiting the angiotensin 2 production in the tissue.

· Dr. Reddy’s is a leader in the Cardiovascular segment in India. Other brands of Dr. Reddy’s in the Cardiovascular segment are Atocor, Atocor –E and Atocor-N.

Disclaimer
This press release includes forward-looking statements, as defined in the U.S. Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on their current expectations and projections about future events. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such factors include, but are not limited to, changes in local and global economic conditions, their ability to successfully implement their strategy, the market acceptance of and demand for their products, their growth and expansion, technological change and their exposure to market risks. By their nature, these expectations and projections are only estimates and could be materially different from actual results in the future.

About Dr. Reddy’s

Established in 1984, Dr. Reddy's Laboratories (NYSE: RDY) is an emerging global pharmaceutical company with proven research capabilities. The Company is vertically integrated with a presence across the pharmaceutical value chain. It produces finished dosage forms, active pharmaceutical ingredients and biotechnology products and markets them globally, with focus on India, US, Europe and Russia. The Company conducts research in the areas of diabetes, cardiovascular, anti-infectives, inflammation and cancer.

May 22, 2008, Hyderabad :

Dr. Reddy’s Laboratories Ltd. (NYSE: RDY) has launched Omez Insta (Omeprazole 20mg + Sodium bicarbonate 1680mg buffer), an innovative powder formulation that offers instant relief with a lasting effect in acute gastritis and is also ideal for critically ill patients on Ryle’s tube feeding.

It is an advanced formulation of Omeprazole, internationally referred to as IR –Ome (Immediate Release Omeprazole). IR-Ome is the first and only immediate release oral Proton Pump Inhibitor (PPI) available as powder for oral suspension with significantly improved pharmacokinetic profile. The formulation is approved by the USFDA and is available in the US market since October 2004. It reduces the intragastric acidity (acid concentration in stomach) by 78% within first 30 mins of ingestion.

Omez Insta fills the gap which was present in the PPI market by offering a PPI formulation available in drinkable form. It is available in sachets in a pleasant mint flavor.

Notes to the Editor:

· The PPI market is about Rs 5400.000 millions growing at the rate of 14%.(Source: ORG IMS)

Brief mode of action of Omez Insta:

· Omez Insta raises intragastric pH and thereby protects Omeprazole from acid degradation.

· This leads to fast and effective absorption of Omeprazole resulting in rapid inhibition of acid secretion.

· Buffer present in Omez Insta stimulates gastrin release which in turn stimulates parietal cells and switch on the proton pumps which enable Omeprazole to shut these pumps more effectively.

· It provides instant relief with a lasting effect by bringing up the pH level to > 6 within a minute.

· Omez is the leading brand of Dr. Reddy’s in the Gastrointestinal segment and is the number one brand in 14 countries.

· Other brands of Dr.Reddy’s in the Gastrointestinal segment are Omez-Dsr, Omez FF, Razo and Razo-D.

Disclaimer

About Dr. Reddy’s

Dr. Reddy’s FY08 Revenue at Rs. 50,006 million;

EBITDA at Rs. 9,736 million

Hyderabad, India, May 20, 2008: Dr. Reddy’s Laboratories Ltd. (NYSE: RDY) today announced its audited financial results for the year ended March 31, 2008.

FY08 Key highlights

· Revenues at Rs.50 billion ($1,250 million) in FY08 as against Rs.65 billion ($1,627 million) in FY07.

· EBITDA at Rs.10 billion ($243 million) in FY08 as against Rs.16 billion ($408 million) in FY07.

· PAT at Rs.4.7 billion ($117 million) in FY08 as against Rs.9.3 billion ($233 million) in FY07

· Revenues in India (finished dosage) cross $200 million in FY08.

Revenues increase by 16% to Rs. 8 billion ($201 million) in FY08 from Rs. 7 billion ($174 million) in FY07, driven by performance of key brands as well as new product launches.

Reditux, launched in April 2007, contributes Rs. 154 million in revenues.

Company ranked 10th in India. (Source: ORG IMS MAT Mar 08)

Revenues in Russia (finished dosage) cross $100 million in FY08.

Revenues increase by 13% ($ growth rate of 22%) to Rs. 4.1 billion ($102 million) in FY08 from Rs. 3.6 billion ($90 million) in FY07 driven by growth in key brands as well as contribution from new product launches.

Company ranked among the fastest growing international branded generic companies in volume terms. (Source: Pharmexpert MAT Dec 07)

Improvement in market rank to 14th position (Source: Pharmexpert MQT Mar 08)

· In North America, revenues at Rs.8 billion ($201 million) in FY08 as against Rs.23.6 billion in FY07.

Revenues increase by 39% ($ growth rate of 49%) to Rs.7.7 billion ($193 million) excluding the benefit of upsides from authorized generics and ondansetron exclusivity in FY07 of Rs.18.1 billion.

· Revenues from Germany (betapharm) at Rs.8.2 billion ($205 million) & EBITDA at $27 million in FY08. YoY sales volume growth of 26%.

FY08 revenues reflect the impact of (a) higher rebates to insurance companies being deducted from revenues from FY08 onwards ; (b) pricing pressure ; (c) supply constraints for a large part of the year

Improvement in the supply situation in Q4 FY08 results in increase in market share of betapharm to 2.96% in Mar 08 as against 1.74% in Apr 07. (Source: Market Report NVI volume, March 2008)

· Revenues from organic segment of custom pharmaceuticals services business increase by 53% to Rs.1.9 billion ($47 million) in FY08 from Rs.1.2 billion ($31 million) in FY07.

· Revenues in API at Rs.12 billion ($295 million) in FY08. Growth across key markets offset by upsides from sertraline & rabeprazole in FY07.

· During the year, the Company launched 89 generic products and made 397 filings across all markets.

(All figures in millions, except EPS)
All dollar figures based on convenience translation rate of 1USD = Rs 40.02

Extracted from the Audited Income Statement for the year ended March 31, 2008

	FY 08			FY 07
Particulars	($)	(Rs.)	%	($)	(Rs.)	(%)	Growth %
Total Revenues	1250	50006	100	1627	65095	100	(23)
Cost of revenues	615	24598	49	855	34220	53	(28)

Gross profit	635	25408	51	772	30876	47	(18)

Selling, General & Administrative Expenses	379	15175	30	351	14051	22	8
R & D Expenses ⁽¹⁾	88	3533	7	62	2463	4	43
Amortization Expenses	40	1615	3	39	1571	2	3
Write down of Intangible assets	62	2489	5	44	1770	3	41
Impairment of Goodwill	2	90	0	-	-	-
Foreign Exchange (gain)/loss, net	(19)	(745)	(1)	(3)	(137)	(0)	445
Other operating (income)/expense net	(3)	(107)	(0)	(2)	(67)	(0)	59

Operating income/ (loss)	84	3,358	7	280	11,224	17	(70)

Equity in (loss)/income of affiliates, net	0	2	0	(2)	(63)	(0)
Other income/(expenses), net	1	30	0	(17)	(661)	(1)

Income before income taxes and minority interest	85	3390	7	262	10,500	16	(68)

Income taxes (expense)/benefit	32	1279	3	(29)	(1177)	(2)
Minority interest	0	9	0	0	3	0	147

Net income	117	4,678	9	233	9327	14	(50)

DEPS	0.69	27.73		1.46	58.56

Exchange rate		40.02			40.02

Key Balance Sheet Items
	As on 31st Mar 08		As on 31st Mar 07
Cash and cash equivalents	185	7421	464	18588
Investment in securities (current & non-current)	119	4756	28	1105
Borrowings from Banks (short+long)	488	19542	619	24754
Accounts receivable, net of allowances	171	6824	188	7519
Inventories	278	11133	189	7546
Property, Plant and equipment, net	419	16765	311	12428

Income recognition under Generics R & D partnership with ICICI Venture amounted to Rs. nil in FY08 compared to Rs. 453 million in FY07. Reimbursement of expenses from Perlecan Pharma Private Limited of Rs.90 million in FY08 as against Rs 373 million in FY07.

SEGMENTAL ANALYSIS

Active Pharmaceutical Ingredients (APIs)

· Revenues at Rs. 11805 million in FY08 as against Rs. 11883 million in FY07. Revenues in FY07 included the benefit of upsides in sertraline & rabeprazole.

· Revenues outside India at Rs.9.5 billion in FY 08 as against Rs.9.8 billion in FY07.

· Revenues in North America increase by 88% to Rs.3.8 billion in FY08 from Rs.2 billion in FY07 primarily led by sales of certain development products & commercialized products.

· Revenues in India at Rs.2.4 billion in FY08 as against Rs.2.1 billion in FY07. YoY growth of 13% primarily on account of increase in sales of ramipril.

· Revenues in rest of the world decrease to Rs.3.1 billion in FY08 from Rs.5.7 billion in FY07. Growth in key markets offset by normalization of sales in sertraline in FY08 following the upside in FY07.

· Revenues in Europe at Rs.2.5 billion in FY08 as against Rs.2.1 billion in FY07. YOY growth of 19% led by increase in sales of certain development products & commercialized products.

· The Company filed 23 US DMFs during the year taking the total filings to 127. The company also filed 9 DMFs in Canada, 13 DMFs in Europe and 11 DMFs in RoW.

Generic Finished Dosages

· Revenues in this segment at Rs.17.8 billion in FY08 as against Rs.33.2 billion in FY07.

· North America contributed 45% and Europe contributed 55% to the segment revenues.

· In North America, revenues at Rs.8 billion ($ 201 million) in FY08 as against Rs.23.6 billion in FY07.

o Revenues increase by 39% to Rs.7.7 billion in FY08 from Rs.5.6 billion in FY07 excluding the benefit of upsides from Authorized Generics & ondansetron exclusivity.

o Revenues from new products launches at Rs.617 million in FY08; 11 new products (including 2 OTC products) launched in FY 08.

o Commenced sales of OTC products ; Revenues for FY08 at Rs.267 million.

o Combined revenues of fexofenadine & finasteride at Rs.3,871 million in FY 08.

o During the year, the Company filed 18 ANDAs taking the total filings to 122. Total of 58 ANDAs pending at the USFDA addressing innovator sales of $ 78 billion as per IMS December 2007. During the year, the company also received 20 approvals including tentative approvals.

· In Europe revenues at Rs.9.7 billion in FY08 as against Rs.9.6 billion in FY07.

o Revenues from betapharm (Germany) at Rs.8.2 billion ($205 million) in FY08 as against Rs.8 billion in FY07. YoY sales volume growth of 26%.

§ FY08 revenues reflect the impact of (a) higher rebates to insurance companies being deducted from revenues from FY08 onwards ; (b) pricing pressure ; (c) supply constraints for a large part of the year

§ Improvement in the supply situation in Q4 FY08 results in increase in market share of betapharm to 2.96% in Mar 08 as against 1.74% in Apr 07. (Source: Market Report NVI volume, March 2008)

§ 8 new products launched during the year.

o Revenues from UK market remains unchanged at Rs.1.4 billion in FY08.

o Revenues from Spain at Rs.51 million in FY08 as against Rs.61 million in FY07.

o During the year the company filed 16 dossiers across Europe.

Branded Finished Dosages – International

· Revenues at Rs.7.2 billion, an increase of 17% over FY07. This growth was primarily driven by the performance of Russia, Romania, Venezuela & Other CIS markets.

· Revenues in Russia increase by 13% to Rs.4.1 billion ($102 million) in FY 08 as against Rs.3.6 billion in FY07. This growth was primarily driven by increase in sales of key brands of Keterol, Bion, Omez and new products launches.

Revenues from Russia in FY08 cross $100 million milestone.

Combined revenues in OTC & Hospital segment contributed 28% to total revenues in FY08.

Improvement in market rank to 14th position. (Source: Pharmexpert MQT March 2008)

The company recorded 18% growth as against the market growth of 17%. (Source: Pharmexpert MAT Dec 2007, retail segment)

Revenues in the CIS markets increase by 25% to Rs.1.5 billion in FY08 as against Rs.1.2 billion in FY07. This growth was primarily driven by increase in sales from Ukraine, Kazakhistan & Belarus.

Revenues in Ukraine at Rs.768 million ($19 million) for FY08 representing a growth of 25% over the previous year.

· Revenues in RoW markets increase by 16% to Rs.1.2 billion as against Rs.1 billion in FY07. The growth was primarily driven by increase in sales from key markets.

· Revenues in Central and Eastern Europe increase by 33% to Rs.501 million as against Rs.377 million in FY07.

· Revenues in Romania at Rs.466 million ($12 million) representing a growth of 38% over the previous year.

During the year, the company filed 307 dossiers.

Branded Finished Dosages – India

· Revenues in India cross $200 million milestone in FY08.

· Revenues in India increase by 16% to Rs.8.1 billion in FY08 from Rs.7 billion in FY07. Growth was primarily driven by key brands of Omez, Razo, Stamlo Beta and Reditux.

Revenues from Reditux launched in April 2007 at Rs.154 million in FY08.

In the rabeprazole category, Razo is the no. 1 prescribed brand among the gastroenterologists as per CMARC Nov-Feb 08.

· 20 new products launched during the year, contributing Rs.309 million in revenues.

New product launches in the last 30 months contributed 18% to total revenues in FY08.

Custom Pharmaceutical Services (CPS)

· Revenues from CPS business at Rs.4.8 billion in FY08 as against Rs.6.6 billion in FY07.

· Revenues from organic business increase from Rs.1.2 billion in FY07 to Rs.1.9 billion in FY08, driven by growth in customer base and product portfolio. YoY growth of 53%.

· Revenues from Mexico at Rs.3 billion in FY08 as against Rs.5.4 billion in FY07.

Income Statement Highlights

· Gross profit at Rs.25.4 billion in FY08 as against Rs.30.9 billion in FY07. Gross profit margins on total revenues at 51% as against 47% in FY07. In FY07 revenues from authorized generics contributed 22% to total revenues and earned gross margin significantly below company average gross margin.

· R & D investments (net) at 7% of total revenues in FY08 as against 4% in FY07. Gross R & D investments increase by 10% to Rs. 3.6 billion in FY08 as against Rs.3.3 billion in FY07. During the year, the Company recognized Rs. 90 million under its R&D partnerships as a benefit to the R&D line item as compared to Rs.826 million in FY07.

· Selling, General & Administration (SG&A) expenses increase by 8% to Rs.15.2 billion in FY08 from Rs.14.1 billion in FY07. The SG&A ratio to revenue is at 30% in FY08 as against 22% in FY07.

· Other income (net) at Rs. 30 million in FY08 as against other expenses (net) of Rs. 661 million in FY07. This is primarily on account of net interest expense of Rs. 378 million in FY08 as against net interest expense of Rs. 1,055 million in FY07.

· Write down of intangibles & impairment of goodwill amounting to Rs. 2.6 billion in FY08 comprising :

o Write down of Rs. 128 million of product related intangibles at Spain, recorded in Q4 FY08.

o Impairment of goodwill of Rs. 90 million relating to the subsidiary in Atlanta, recorded in Q4 FY08.

o Write down of Rs. 2.4 billion of product related intangibles at betapharm, recorded in Q3 FY08.

· Amortization expenses are at Rs. 1.62 billion as compared to Rs. 1.57 billion in FY07. This largely relates to amortization of intangibles in betapharm, Spain (acquisition of products) and acquisition in Mexico.

· Net income at Rs. 4.7 billion (9% of total revenues) as against Rs. 9.3 billion (14% of total revenues) in FY07. This translates to a diluted EPS of Rs. 27.73 as against Rs. 58.56 in FY07.

· During FY08, the Company incurred capital expenditure (net) of Rs. 5.6 billion.

(All figures in millions, except EPS)
All dollar figures based on convenience translation rate of 1USD = Rs 40.02

Q4FY08 Financial Snapshot

Extracted from the Audited Income Statement for the Quarter ended 31st March, 2008

	FY 08			FY 07
Particulars	($)	(Rs.)	%	($)	(Rs.)	(%)	Growth %

Total Revenues	331	13252	100	389	15,573	100	(15)
Cost of revenues	156	6229	47	145	5818	37	7

Gross profit	175	7023	53	244	9755	63	(28)

Selling, General & Administrative Expenses	107	4275	32	86	3433	22	24
R & D Expenses ⁽¹⁾	26	1023	8	21	852	5	20
Amortization Expenses	12	475	4	11	451	3	5
Write down of Intangible assets	3	128	1	44	1770	11	(93)
Impairment of Goodwill	2	90		-	-	0
Foreign Exchange (gain)/loss, net	(3)	(118)	(1)	(5)	(205)	(1)	(43)
Other operating (income)/expense net	(3)	(106)	(1)	1	25	0

Operating income/ (loss)	31	1,257	9	86	3429	22	(63)

Equity in (loss)/income of affiliates, net	(0)	(0)	(0)	(0)	(14)	(0)	(97)
Other income/(expenses), net	(2)	(62)	(0)	2	98	1	(164)

Income before income taxes and minority interest	30	1194	9	88	3513	23	(66)

Income Taxes (expense)/ benefit	(4)	(168)	(1)	(6)	(260)	(2)	(35)
Minority interest	0	2	0	(0)	(1)	(0)	(274)

Net income	26	1028	8	81	3252	21	(68)

DEPS	0.15	6.09		0.51	20.42

Exchange rate		40.02			40.02

Reimbursement of expenses from Perlecan Pharma Private Limited of Rs. 17 million in Q4 FY08 as against Rs. 85 million in Q4 FY07.

Business Highlights

Overall global revenues at Rs. 13.2 billion in Q4 FY08 as against Rs. 15.6 billion in Q4 FY07, representing a decrease of 15%.

Overall EBITDA at Rs. 2.6 billion ($65 million) in Q4 FY08 as against Rs. 6.2 billion ($156 million) in Q4 FY07.

Revenues from North America generics business at Rs. 2.5 billion in Q4 FY08 as against Rs. 5.6 billion in Q4 FY07.

Revenues in branded formulations business increase by 22% to Rs. 3.5 billion in Q4 FY08 from Rs. 2.9 billion in Q4 FY07 driven by growth across key markets.

Revenues from India increase by 24% to Rs. 2 billion in Q4 FY08, driven by growth in key brands.

Revenues from international markets increase by 19% to Rs. 1.5 billion in Q4 FY08, driven by growth in Romania & other CIS markets.

Revenues from organic Custom Pharmaceuticals Services (CPS) business increase by 60% at Rs. 698 million in Q4 FY08 as against Rs. 437 million in Q4 FY07.

Overall revenues from CPS business at Rs. 1.4 billion in Q4 FY08 as against Rs. 1.9 billion in Q4 FY07.

Revenues from betapharm at Rs. 2.4 billion in Q4 FY08 as against Rs. 747 million in Q4 FY 07.

Income Statement Highlights

· Gross profit at Rs. 7 billion in Q4 FY08 as against Rs. 9.8 billion in Q4 FY07. Gross profit margins on total revenues at 53% as against 63% in Q4 FY07. In Q4 FY07 revenues from ondansetron exclusivity contributed 16% to total revenues & earned gross margins significantly above company average gross margin.

· R & D investments (net) at 8% of total revenues in Q4 FY08 as against 5% in Q4 FY07, an increase of 20%. Gross

· R & D investments increase by 11% to Rs. 1040 million in Q4 FY08 as against Rs. 937 million in Q4 FY07. During the quarter, the Company recognized Rs. 17 million under its R & D partnerships as a benefit to the R & D line item as compared to Rs. 85 million in Q4 FY07.

· Selling, General & Administration (SG&A) expenses increase by 24% to Rs. 4.3 billion in Q4 FY08 as against Rs. 3.4 billion in Q4 FY07. The SG & A ratio to revenue is at 32% in Q4 FY08 as against 22% in Q4 FY07.

· Other expenses (net) at Rs. 62 million in Q4 FY08 as against other income (net) of Rs. 98 million in Q4 FY07.

· Amortization expenses at Rs. 475 million in Q4 FY08 as compared to Rs. 451 million in Q4 FY07. This majorly relates to intangibles in betapharm, Spain (acquisition of products) and acquisition in Mexico.

· Net income at Rs. 1 billion (8% of total revenues) as against Rs. 3.3 billion (21% of total revenues) in Q4 FY07.

About Dr. Reddy's

Established in 1984, Dr. Reddy's Laboratories (NYSE: RDY) is an emerging global pharmaceutical company with proven research capabilities. The Company is vertically integrated with a presence across the pharmaceutical value chain. It produces finished dosage forms, active pharmaceutical ingredients and biotechnology products and markets them globally, with focus on India, US, Europe and Russia. The Company conducts research in the areas of cancer, diabetes, cardiovascular, inflammation and bacterial infection.

Disclaimer

This press release includes forward-looking statements, as defined in the U.S. Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on their current expectations and projections about future events. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such factors Include, but are not limited to, changes in local and global economic conditions, their ability to successfully implement their strategy, the market acceptance of and demand for our products, our growth and expansion, technological change and our exposure to market risks. By their nature, these expectations and projections are only estimates and could be materially different from actual results in the future.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.42.30
UK Pound	1	Rs.84.03
Euro	1	Rs.66.42

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	10
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	9
--CREDIT LINES	1~10	9
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	YES
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		81

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

MIRA INFORM REPORT

Category

No. of shares

% of shareholding

promoters’ holdings

PRODUCTION STATUS

6409.300

4875.800

8977.100

10557.000

5373.400

14567.100

0.000

0.000

12720.200

10285.600

33480.000

40285.500

23529.013

7863.500

7319.500

4512.800

3862.000

12376.300

11181.500

21103.700

29104.000

Unit