MIRA INFORM REPORT

1. Summary Information

		Country	India
Company Name	DR. REDDY’S LABORATORIES LIMITED	Principal Name 1	Mr. G V Prasad
Status	Regular	Principal Name 2	Mr. Satish Reddy
		Registration #	01-004507
Street Address	8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500034, Andhra Pradesh, India
Established Date	24.02.1984	SIC Code	--
Telephone#	91-40-49002900	Business Style 1	Manufacturer
Fax #	91-40-49002999	Business Style 2	Seller
Homepage	www.drreddys.com	Product Name 1	Bulk Drugs
# of employees	16504 (Approximately)	Product Name 2	Formulations
Paid up capital	Rs. 849,000,000/-	Product Name 3	Diagnostic Reagents
Shareholders	Promoter and Promoter Group – 31.13% Public shareholding - 68.87%	Banking	Allahabad Bank
Public Limited Corp.	Yes	Business Period	30 Years
IPO	Yes	International Ins.	-
Public Enterprise	Yes	Rating	Aa (79)
Related Company
Relation	Country	Company Name	CEO
Associates	India	Macred India Private Limited	--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2013		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	67,997,000,000	Current Liabilities	20,717,000,000
Inventories	1,966,000,000	Long-term Liabilities	15,891,000,000
Fixed Assets	23,870,000,000	Other Liabilities	5,449,000,000
Deferred Assets	0,000	Total Liabilities	42,057,000,000
Invest& other Assets	26,058,000,000	Retained Earnings	76,985,000,000
		Net Worth	77,834,000,000
Total Assets	119,891,000,000	Total Liab. & Equity	119,891,000,000
Total Assets (Previous Year)	103,406,000,000
P/L Statement as of	31.03.2013		(Unit: Indian Rs.)
Sales	84,340,000,000	Net Profit	12,655,000,000
Sales(Previous yr)	67,397,000,000	Net Profit(Prev.yr)	9,124,000,000

MIRA INFORM REPORT

Report Date :

09.06.2014

IDENTIFICATION DETAILS

Name :	DR. REDDY’S LABORATORIES LIMITED

Registered Office :	8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500034, Andhra Pradesh

Country :	India

Financials (as on) :	31.03.2013

Date of Incorporation :	24.02.1984

Com. Reg. No.:	01-004507

Capital Investment / Paid-up Capital :	Rs. 849.000 Millions

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 :	Manufacturer and Seller of Bulk Drugs, Formulations and Diagnostic Reagents and Kits.

No. of Employees :	16504 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Aa (79)

RATING

STATUS

PROPOSED CREDIT LINE

71-85

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 311000000

Status :	Excellent

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is an old, well established and a reputed company engaged in manufacturing and marketing of pharmaceuticals having excellent track record. The company manufacturers wide range of pharmaceuticals products in India and Overseas. The company is doing well. Financial position of the company is sound. Fundamentals are strong and healthy. Directors are reported to be experienced, respectable and resourceful businessmen. Trade relations are fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings under usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

US investment bank Goldman Sachs has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Fund based: “AA+”
Rating Explanation	High degree of safety and very low credit risk.
Date	08.05.2013

Rating Agency Name	ICRA
Rating	Non-fund based: “A1+”
Rating Explanation	Very strong degree of safety and carry lowest credit risk.
Date	08.05.2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DECLINED

MANAGEMENT NON-COOPERATIVE (Tel. No.91-40-49002900)

LOCATIONS

Registered / Corporate Office/ Active Pharmaceutical Ingredients :	8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500034, Andhra Pradesh, India
Tel. No.:	91-40-49002900
Fax No.:	91-40-49002999
E-Mail :	shares@drreddys.com drl@hd1.vsnl.net.in corpcom@drreddys.com vasudevan@drreddys.com pavanknvs@drreddys.com ssrinivasan@drreddys.com nikhilshah@drreddys.com
Website :	www.drreddys.com

Custom Pharmaceuticals Services :	Bollaram Road, Miyapur, Hyderabad – 500049, Andhra Pradesh, India
Tel No.:	91-40-44658888
Fax No.:	91-40-44658699
E-Mail :	cpsgen@drreddys.com

Branded Finished Dosages / Business Development :	Greenlands, Ameerpet, Hyderabad – 500016, Andhra Pradesh, India
Tel No.:	91-40-49048400
Fax No.:	91-40-23731955

Finished Dosage - Generics: (North America)	200 Somerset Corporation Blvd., Bridgewater, NJ 08807
Tel. No.:	1-908-203-4900
Fax No.:	1-908-203-4940

Finished Dosage - Generics: (Europe)	258 Bath Road, Slough, Berkshire, SL 1 4DX
Tel. No.:	0044 1753 5125 00
Fax No.:	0044 1753 6966 77

Dr. Reddy’s Foundation:	6-3-655/12, Somajiguda, Hyderabad – 500082, Andhra Pradesh, India.
Tel. No.:	91-40-65343424/ 23304199/ 1868
Fax No.:	91-40-23301085
E-Mail :	info@drreddysfoundation.org
Website :	www.drreddysfoundation.org

Facility Locations In India
API Manufacturing Facilities :	API Hyderabad Plant 1 Plot No. 137, 138, IDA Bollaram, Jinnaram Mandal Medak District - 502325, Andhra Pradesh, India API Hyderabad Plant 2 Plot No. 75B, 105, 110 and 111, IDA Bollaram, Jinnaram Mandal, Medak District - 502325, Andhra Pradesh, India API Hyderabad Plant 3 Plot No. 116, 116A and 126C and SY No. 157, IDA Bollaram, Jinnaram Mandal, Medak District - 502325, Andhra Pradesh, India API Hyderabad Plant 4 Plot No. 9/A, 9/B, 22A, 22B and 22C, Phase – III, IDA Jeedimetla, Ranga Reddy District – 502325, Andhra Pradesh, India API Nalgonda Plant Peddadevulapally, Tripuraram Mandal, Nalgonda District – 502325, Andhra Pradesh, India API Srikakulam Plant IDA, Pydibheemavaram Ransthal Mandal Srikakulam, District - 502325, Andhra Pradesh, India API Srikakulam Plant (SEZ) Sector No. 28 and 34 Devunipalavalasa Village, Ranastalam Mandal, Srikakulam District - 502325, Andhra Pradesh, India

Formulation Manufacturing Facilities :	Formulations Hyderabad Plant 1 Plot No. 146, IDA Bollaram, Jinnaram Mandal, Medak District – 502325, Andhra Pradesh, India Formulations Hyderabad Plant 2 S Y No. 42, 45, 46 and 54 Bachupally, Qutubullapur Mandal, Ranga Reddy District – 502325, Andhra Pradesh, India Formulations Hyderabad Plant 3 S Y No. 41 Bachupally, Qutubullapur Mandal, Ranga Reddy – 502325, Andhra Pradesh, India Formulations Yanam Plant Ward-F, Block-4, Adavipolam Yanam, Pondicherry – 533464, Tamilnadu, India Formulations Baddi Plant 1 Khol, Nalagarh Solan, Nalagarh Road, Baddi – 173205, Himachal Pradesh, India Formulations Vizag Sez Plant Plot No P1-P9, Phase III Duvvada, VSEZ, Visakapatanam – 530046, Andhra Pradesh, India Formulations Baddi Plant 2 Village Mauja Thana, Nalagarh Baddi Road, Baddi, District Solan – 173205, Himachal Pradesh, India Formulations Srikakulam Plant (SEZ) Sector No. 9-13 and 17-20 Devunipalavalasa Village, Ranastalam Mandal, Srikakulam District – 532409, Andhra Pradesh, India Biologics Survey No.47, Bachupally Quthbullapur Mandal, Ranga Reddy District – 500043, Andhra Pradesh, India

Research and Development Facility :	Integrated Product Development Organisation (IPDO) Bachupally Village, Qutubullapur Mandal, Ranga Reddy District - 500123, Andhra Pradesh, India Aurigene Discovery Technologies Limited (ADTL), Bangalore 39-40, KIADB Industrial Area, Electronic City Phase II, Hosur Road, Bangalore - 560100, Karnataka, India ADTL, Hyderabad Bollaram Road, Miyapur Hyderabad - 500049, Andhra Pradesh, India Technology Development Centre Hyderabad 1 Bollaram Road, Miyapur Hyderabad - 500049, Andhra Pradesh, India Technology Development Centre Hyderabad 2 Plot 31A, IDA, Jeedimetla Hyderabad - 500050, Andhra Pradesh, India

Facility Locations Outside India :	Located at: Kunshan Rotam Reddy Pharmaceutical Company Limited No. 258, Huang Pu Jiang (M) Road, Kunshan Development Zone, Jiangsu Province P. R. China 215300 API CUERNAVACA PLANT Industrias Quimicas Falcon de Mexico S.A. de C.V. Carretera Federal Cuernavaca-Cuautla KM 4.5 CIVAC, Jiutepec, Morelos Mexico 62578 Dr. Reddy’s Laboratories (UK) Limited 6, Riverview Road, Beverly, East Yorkshire HU 17 OLD, United Kingdom Dr. Reddy’s Laboratories (EU) Limited Steanard Lane, Mirfield, West Yorkshire, WF 14, 8HZ, United Kingdom Chirotech Technology Limited 410 Cambridge Science Park Milton Road, Cambridge CB4 0PE, United Kingdom Dr. Reddy’s Laboratories Louisiana LLC 8800 Line Avenue, Shreveport, Louisiana 71106. USA Dr. Reddy’s Laboratories Tennessee LLC P.O. Box 9002, 201 Industrial Drive Bristol, TN 37621- 9002, USA Dr. Reddy’s Laboratories New York Inc. 1974 Route 145, Middleburgh, New York 12122, USA Technology Development Centre leiden OctoPlus N.V. Zernikedreef 12, 2333 CL Leiden, The Netherlands

DIRECTORS

As on 31.03.2013

Name :	Mr. G V Prasad
Designation :	Vice-Chairman and Chief Executive Officer
Date of Birth/ Age:	53 Years
Date of Appointment:	30.03.2013
Qualification:	B.Sc. (Chem. Eng.), M.S. (Indl. Admn.)

Name :	Mr. Satish Reddy
Designation :	Vice chairman and Managing Director
Date of Birth/ Age :	46 Years
Qualification :	B. Tech., M.S. (Medicinal Chemistry)

Name :	Dr. Ashok Sekhar Ganguly
Designation :	Independent Director

Name :	Mr. Anupam Puri
Designation :	Independent Director
Date of Appointment :	04.06.2002

Name :	Ms. Kalpana Morparia
Designation :	Independent Director
Date of Appointment :	05.06.2007

Name :	Dr. Omkar Goswami
Designation :	Independent Director
Date of Appointment :	21.07.2008

Name :	Mr. Sridar Iyengar
Designation :	Independent Director

Name :	Mr. Bruce L A Carter
Designation :	Independent Director
Date of Appointment :	21.07.2008

Name :	Mr. J P Moreau
Designation :	Independent Director
Date of Appointment :	18.05.2007

Name :	Mr. Ravi Bhoothalingam
Designation :	Independent Director
Date of Appointment :	30.10.2000

KEY EXECUTIVES

Name :	Mr. Sandeep Poddar
Designation :	Company Secretary

Name :	Mr. Abhijit Mukherjee
Designation :	President Global Generics

Name :	Dr. Amit Biswas
Designation :	Executive Vice-President Integrated Product Development

Name :	Mr. Amit Patel
Designation :	Executive Vice-President North America Generics

Name :	Dr. Cartikeya Reddy
Designation :	Senior Vice-President Biologics

Name :	M V Ramana
Designation :	Senior Vice-President Emerging Markets, Global Generics

Name :	Dr. R Ananthanarayanan
Designation :	President Pharmaceutical Services and Active Ingredients

Name :	Dr. Raghav Chari
Designation :	Senior Vice President, Proprietory Products

Name :	Samiran Das
Designation :	Executive Vice-President FTO and GGPM

Name :	Mr. Saumen Chakraborthy
Designation :	Executive Vice-President FTO and GGPM

Name :	Mr. Umang Vohar
Designation :	Executive Vice-President and Chief Financial Officer

SHAREHOLDING PATTERN

As on 31.03.2014

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3688528	2.64
Bodies Corporate	39729284	28.49
Sub Total	43417812	31.13
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	43417812	31.13
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	8320359	5.97
Financial Institutions / Banks	102681	0.07
Insurance Companies	2278743	1.63
Foreign Institutional Investors	58353621	41.84
Sub Total	69055404	49.51
(2) Non-Institutions
Bodies Corporate	10955715	7.86
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	11953118	8.57
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1024876	0.73
Any Others (Specify)	3059708	2.19
Clearing Members	459993	0.33
Non Resident Indians	2276099	1.63
Foreign Nationals	6149	0.00
Trusts	317467	0.23
Sub Total	26993417	19.35
Total Public shareholding (B)	96048821	68.87
Total (A)+(B)	139466633	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	30642235	0.00
Sub Total	30642235	0.00
Total (A)+(B)+(C)	170108868	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Seller of Bulk Drugs, Formulations and Diagnostic Reagents and Kits.

Products :

Product Description	Item Code No. [ITC Code]
Ciprofloxacin Hydrochloride	29419003
Norfloxacin	29420001
Omerprazole	30049038

GENERAL INFORMATION

No. of Employees :

16504 (Approximately)

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

· Citi Bank, Hyderabad, Andhra Pradesh, India

· Global Trust Bank, Secunderabad, Andhra Pradesh, India

· HDFC Bank, Hyderabad, Andhra Pradesh, India

· The Hongkong and 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

Facilities :

SECURED LOAN	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWING
Long term maturities of finance lease obligations	35.000	5.000
Total	35.000	5.000

Note:

Finance lease obligations are towards lease rentals payable for the vehicles leased by the Company. Lease rentals are paid in monthly installment, with the last installment due in November 2016.

Banking Relations :	--

Auditors :
Name :	BSR and Company Chartered Accountants
Address :	Hyderabad, Andhra Pradesh, India

Subsidiaries including step down subsidiaries :	· Aurigene Discovery Technologies (Malaysia) Sdn Bhd · Aurigene Discovery Technologies Inc., USA · Aurigene Discovery Technologies Limited, India · beta Institut gemeinnützige GmbH, Germany (formerly beta institute fur sozialmedizinische Forschung und Entwicklung GmbH) · betapharm Arzneimittel GmbH, Germany · Cheminor Investments Limited, India · Chienna B.V., Netherlands (from 15 February 2013) · Chirotech Technology Limited, UK · Dr. Reddy’s Bio-sciences Limited, India · Dr. Reddy’s Farmaceutica Do Brasil Ltda., Brazil · Dr. Reddy’s Laboratories (Australia) Pty. Limited, Australia · Dr. Reddy’s Laboratories (EU) Limited, UK · Dr. Reddy’s Laboratories (Proprietary) Limited, South Africa · Dr. Reddy’s Laboratories Inc., USA · Dr. Reddy’s Laboratories International SA, Switzerland · Dr. Reddy’s Laboratories Lousiana LLC, USA · Dr. Reddy’s Laboratories Romania SRL, Romania · Dr. Reddy’s Laboratories SA, Switzerland · Dr. Reddy’s New Zealand Limited, New Zealand (formerly Affordable Health Care Limited) · Dr. Reddy’s Pharma SEZ Limited, India · Dr. Reddy’s Srl, Italy (formerly Jet Generici Srl) · Dr. Reddy’s Laboratories New York, Inc., USA (from 24 May 2011) · Dr. Reddy’s Laboratories (Canada) Inc., Canada (till 20 September 2012) · Dr. Reddy’s Laboratories (UK) Limited, UK · Dr. Reddy’s Laboratories ILAC TICARET Limited SIRKETI, Turkey (till 04 December 2012) · Dr. Reddy’s Laboratories Tennessee LLC, USA · Dr. Reddy’s Laboratories LLC, Ukraine (from 11 May 2011) · Dr. Reddy’s Venezuela C.A., Venezuela · DRL Impex Limited, India (formerly DRL Investments Limited) · Eurobridge Consulting B.V., Netherlands · Idea2Enterprises (India) Private Limited, India · Industrias Quimicas Falcon de Mexico, S.A. de.C.V., Mexico · I-Ven Pharma Capital Limited, India · Lacock Holdings Limited, Cyprus · OctoPlus Development B.V., Netherlands (from 15 February 2013) · OctoPlus N.V., Netherlands (from 15 February 2013) · OctoPlus PolyActive Sciences B.V., Netherlands (from 15 February 2013) · OctoPlus Sciences B.V., Netherlands (from 15 February 2013) · OctoPlus Technologies B.V., Netherlands (from 15 February 2013) · OctoShare B.V., Netherlands (from 15 February 2013) · OOO Alfa, Russia (formerly OOO JV Reddy Biomed Limited) (till 16 July 2012) · OOO Dr. Reddy’s Laboratories Limited, Russia · OOO DRS LLC, Russia · Promius Pharma LLC, USA (formerly Reddy Pharmaceuticals LLC); · Reddy Antilles N.V., Netherlands · Reddy beta GmbH, Germany (formerly beta Healthcare Solutions GmbH) · Reddy Cheminor S.A., France · Reddy Holding GmbH, Germany · Reddy Netherlands B.V., Netherlands · Reddy Pharma Iberia SA, Spain · Reddy Pharma Italia S.p.A., Italy · Reddy Pharmaceuticals Hong Kong Limited, Hong Kong (till 19 October 2012) · Reddy US Therapeutics Inc., USA · Trigenesis Therapeutics Inc., USA (till 04 December 2012)

Associates :	Macred India Private Limited, India (from 19 July 2010 till 24 February 2012) (Enterprise in which the Company holds 20% of equity shares)

Joint venture :	· Kunshan Rotam Reddy Pharmaceutical Company Limited (“Reddy Kunshan”), China (Enterprise over which the Company exercises joint control with other joint venture partners and holds 51.33% of equity shares) · DRANU LLC, USA (from 9 July 2012) (Enterprise over which the Company’s step-down subsidiary exercises joint control with other joint venture partner and holds 50% of equity shares)

Enterprises where principal shareholders have control or significant influence (“Significant interest entities”)	· Dr. Reddy’s Research Foundation (Enterprise over which the principal shareholders have significant influence) · Dr. Reddy’s Institute of Life Sciences (formerly Institute of Life Sciences) (Enterprise over which principal shareholders have significant influence) · Ecologic Technologies Limited (Enterprise over which principal shareholders have significant influence) · Ecologic Chemicals Limited (Subsidiary of Ecologic Technologies Limited) (Subsidiary of enterprise over which principal shareholders have significant influence) · Stamlo Hotels Private Limited (Enterprise controlled by principal shareholders)

Others :	· Green Park Hotels and Resorts Limited (formerly Diana Hotels Limited) (Enterprise owned by relative of a director) · K Samrajyam (Spouse of former Chairman (Late Dr. K Anji Reddy) · G Anuradha (Spouse of Chairman and Chief Executive Officer) · Deepti Reddy (Spouse of Vice Chairman and Managing Director) · Dr. Reddy’s Foundation (Formerly Dr. Reddy’s Foundation for Human and Social development) (Enterprise where principal shareholders are trustees) · A. R. Life Sciences Private Limited (Enterprise in which relative of a director has significant influence)

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount

240000000	Equity Shares	Rs. 5/- each	Rs. 1200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

169836675	Equity Shares	Rs. 5/- each	Rs. 849.000 Millions

a) Reconciliation of the equity shares outstanding is set out below:

Particulars	31.03.2013
Particulars	Number of shares	Amount
Number of shares outstanding at the beginning of the year	169560346	848
Add : Share issued during the year	276129	1
Number of shares outstanding at the end of the year	169836475	849

b) Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 5/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. During the year ended 31 March 2013, the amount of per share dividend recognized as distributions to equity shareholders is Rs. 15/- (31 March 2012: Rs. 13.75/-). The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

c) Details of shareholders holding more than 5% shares in the company

Particulars	31.03.2013
Particulars	Number of shares	% of equity shares held
Dr. Reddy’s Holdings Limited	39729284	23.39
First state investments management (UK) Limited, First state investments International Limited and their associates	9667791	5.69
Life Insurance Corporation of India and its associates	7686575	4.563

d) 695259 (previous year: 654156) stock options are outstanding to be issued by the Company on exercise of the vested stock options in accordance with the terms of exercise under the “Dr. Reddy’s Employees Stock Option Plan, 2002” and 98,608 (previous year: 117899) stock options are outstanding to be issued by the Company on exercise of the vested stock options in accordance with the terms of exercise under the “Dr. Reddy’s Employees ADR Stock Option Plan 2007”.

e) Represents 200 (previous year: 200) equity shares of Rs. 5/- each, amount paid-up Rs. 500/- (rounded off in millions in the note above) forfeited due to non-payment of allotment money.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	849.000	848.000	846.000
(b) Reserves & Surplus	76985.000	66330.000	59356.000
(c) Money received against share warrants	0.000	0.000	0.000

(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	77834.000	67178.000	60202.000

(3) Non-Current Liabilities
(a) long-term borrowings	63.000	5130.000	5130.000
(b) Deferred tax liabilities (Net)	937.000	200.000	1008.000
(c) Other long term liabilities	28.000	63.000	60.000
(d) long-term provisions	298.000	212.000	197.000
Total Non-current Liabilities (3)	1326.000	5605.000	6395.000

(4) Current Liabilities
(a) Short term borrowings	15828.000	10204.000	9311.000
(b) Trade payables	7678.000	7334.000	8069.000
(c) Other current liabilities	13011.000	9844.000	5889.000
(d) Short-term provisions	4214.000	3241.000	2768.000
Total Current Liabilities (4)	40731.000	30623.000	26037.000

TOTAL	119891.000	103406.000	92634.000

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	23355.000	18967.000	16893.000
(ii) Intangible Assets	515.000	1.000	17.000
(iii) Capital work-in-progress	4232.000	6176.000	5460.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	21826.000	22707.000	24620.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	3501.000	6318.000	9117.000
(e) Other Non-current assets	209.000	0.000	0.000
Total Non-Current Assets	53638.000	54169.000	56107.000

(2) Current assets
(a) Current investments	1966.000	2070.000	0.000
(b) Inventories	15265.000	13267.000	10632.000
(c) Trade receivables	29639.000	19435.000	17705.000
(d) Cash and cash equivalents	9191.000	8490.000	662.000
(e) Short-term loans and advances	8885.000	5298.000	5778.000
(f) Other current assets	1307.000	677.000	1750.000
Total Current Assets	66253.000	49237.000	36527.000

TOTAL	119891.000	103406.000	92634.000

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	84340.000	67397.000	53045.000
		Other Income	1417.000	818.000	1196.000
		TOTAL (A)	85757.000	68215.000	54241.000

Less	EXPENSES
		Cost of material consumed (including packing material consumed)	22773.000	17386.000	13351.000
		Purchase of stock-in-trade (traded goods)	3931.000	3076.000	3310.000
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(1006.000)	(1048.000)	(790.000)
		Conversion charges	592.000	505.000	276.000
		Excise duty	636.000	534.000	617.000
		Employee benefits expense	11381.000	8661.000	7274.000
		Research and development	6509.000	5813.000	5128.000
		Other expenses	19444.000	15124.00	11467.000
		Provision for other than temporary diminution in the value of long-term investments	223.000	1925.000	557.000
		TOTAL (B)	64483.000	51976.000	41190.000

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		21274.000	16239.000	13051.000

Less	FINANCIAL EXPENSES (D)		614.000	636.000	53.000

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		20660.000	15603.000	12998.000

Less/ Add	DEPRECIATION/ AMORTISATION (F)		3128.000	3011.000	2479.000

	PROFIT BEFORE TAX (E-F) (G)		17532.000	12592.000	10519.000

Less	TAX (H)		4877.00	3468.000	1585.000

	PROFIT AFTER TAX (G-H) (I)		12655.000	9124.00	8934.000

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		36049.000	31397.000	25541.000

Add	TRANSFER FROM GENERAL RESERVE		0.000	0.000	5972.000

Less	APPROPRIATIONS
		Proposed dividend on equity shares	2548.000	2331.000	1904.000
		Tax on proposed dividend	433.000	378.000	309.000
		Credit of dividend distribution tax	(4.000)	0.000	0.000
		Dividend of previous years (including tax)	3.000	3.000	4.000
		Debenture Redemption Reserve	845.000	848.000	19.000
		Transfer to General Reserve	1265.000	912.000	893.000
		Issuance of Bonus Debentures as per scheme	0.000	0.000	5078.000
		Dividend Distribution Tax on distribution as per scheme	0.000	0.000	843.000
	BALANCE CARRIED TO THE B/S		43614.000	36049.000	31397.000

	EARNINGS IN FOREIGN CURRENCY
		Export on FOB Basis	61004.000	48405.000	36718.000
		Interest on loan to subsidiaries	181.000	249.000	336.000
		Service income and license fees	1684.000	581.000	310.000
		Royalty income	0.000	53.000	13.000
		Guarantee Commission	177.000	79.000	24.000
		Litigation settlement	1220.000	0.000	76.000
		Others	24.000	0.000	0.000
	TOTAL EARNINGS		64290.000	49367.000	37477.000

	IMPORTS
		Raw Materials	8837.000	6914.000	5337.000
		Capital equipment (including spares and components)	2650.000	2285.000	2773.000
	TOTAL IMPORTS		11487.000	9199.000	8110.000

	Earnings Per Share (Rs.)
	Basic		74.54	53.83	52.82
	Diluted		74.17	53.56	52.51

QUARTERLY RESULTS

PARTICULARS	30.06.2013 (Unaudited)	30.09.2013 (Unaudited)	31.12.2013 (Unaudited)	31.03.2014 (Unaudited)
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Net Sales	18216.000	27075.400	25837.700	26151.200
Total Expenditure	16685.600	17076.800	16684.200	19839.000
PBIDT (Excl OI)	1530.600	9998.600	9153.500	6312.200
Other Income	333.100	333.600	631.900	838.500
Operating Profit	1863.700	10332.200	9785.400	7150.700
Interest	139.200	241.600	212.500	189.800
Exceptional Items	0.000	0.000	0.000	0.000
PBDT	1724.500	10090.600	9572.900	6960.900
Depreciation	890.900	943.000	981.600	989.500
Profit Before Tax	833.600	9147.600	8591.300	5971.400
Tax	185.000	1413.800	2359.600	1257.100
Provisions and contingencies	0.000	0.000	0.000	0.000
Profit After Tax	648.600	7733.800	6231.700	4714.300
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	648.600	7733.800	6231.700	4714.300

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	14.76	13.38	16.47

Net Profit Margin (PBT/Sales)	(%)	20.79	18.68	19.83

Return on Total Assets (PBT/Total Assets}	(%)	18.68	16.90	16.82

Return on Investment (ROI) (PBT/Networth)		0.23	0.19	0.17

Debt Equity Ratio (Total Debt /Networth)		0.20	0.23	0.24

Current Ratio (Current Asset/Current Liability)		1.63	1.61	1.40

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	846.000	848.000	849.000
Reserves & Surplus	59356.000	66330.000	76985.000
Net worth	60202.000	67178.000	77834.000

long-term borrowings	5130.000	5130.000	63.000
Short term borrowings	9311.000	10204.000	15828.000
Total borrowings	14441.000	15334.000	15891.000
Debt/Equity ratio	0.240	0.228	0.204

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	53045.000	67397.000	84340.000
		27.056	25.139

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	53045.000	67397.000	84340.000
Profit	8934.000	9124.000	12655.000
	16.84%	13.54%	15.00%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------
22]	Litigations that the firm / promoter involved in	----------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------
26]	Buyer visit details	----------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	90258811	05/08/2002	12,000,000.00	STATE BANK OF INDIA	INDUSTRAIL FINANCE BRANCH, SOMAJIGUDA, HYDERABAD, ANDHRA PRADESH, INDIA	-
2	90258687	23/02/2001	150,000,000.00	STATE BANK OF HYDERABAD	OVERSEAS BRANCH, SOMAJIGUDA, HYDERABAD, ANDHRA PR ADESH, INDIA	-
3	90258523	20/10/1999 *	1,710,000,000.00	CANARA BANK	BASHIRBAGH, HYDERABAD - 500029, ANDHRA PRADESH, INDIA	-
4	90134184	31/12/1998 *	1,000,000.00	ICICI LIMITED	L.B. BHAVAN, 6-3-550; SOMAJIGUDA, HYDERABAD - 500082, ANDHRA PRADESH, INDIA	-
5	90258324	17/08/1997	26,000,000.00	BANK OF BARODA B	KHAIRTABAD BRANCH, HYDERABAD, ANDHRA PRADESH, INDIA	-
6	90132444	19/06/1997	150,000,000.00	THE INDUSTRIAL CREDIT and INVESTMENT CORP. OF INDIA LIMITED	163, BACKBAY RECLAMATION, MUMBAI - 400020, MAHARASHTRA, INDIA	-
7	90258244	15/12/2000 *	1,000,000.00	THE HONG KONG AND SHANGHAI BANKING CORP. LIMITED	BAHRAIN OFFSHORE BANKING UNIT, MANAMA, MANAMA, , BAHRAIN	-
8	90132335	12/11/1996 *	100,000,000.00	THE INDUSTRIAL CREDIT and INVESTMENT CORP. OF INDIA LIMITED	163, BACKBAY RECLAMATION, MUMBAI - 400020, MAHARASHTRA, INDIA	-
9	90132312	28/08/1996 *	40,000,000.00	SCICI LIMITED	4 NAGARJUNA HILLS, PUNJAGUTTA, HYDERABAD - 500482, ANDHRA PRADESH, INDIA	-
10	90132308	13/08/1996 *	50,000,000.00	THE INDUSTRIAL CREDIT and INVESTMENT CORP. OF INDIA LIMITED	163, BACKBAY RECLAMATION, MUMBAI - 400020, MAHARASHTRA, INDIA	-
11	90135598	02/08/1996	100,000,000.00	GLOBALTRUST BANK LIMITED	303/48/3, SARDAR PATEL ROAD, SECUNDERABAD - 500003, ANDHRA PRADESH, INDIA	-
12	90135585	18/06/1996	130,000,000.00	ANZ GRINDLAYS BANK	5/9/234; M.G.ROAD, POST BOX NO. 117, HYDERABAD - 500001, ANDHRA PRADESH, INDIA	-
13	90132215	19/02/1996	100,000,000.00	GLOBALTRUST BANK LIMITED	303/48/3, SARDAR PATEL ROAD, SECUNDERABAD - 500003, ANDHRA PRADESH, INDIA	-
14	90135537	20/12/1995	50,000,000.00	GLOBAL TRUST BANK LIMITED	303/48/3, SARDAR PATEL ROAD, SECUNDERABAD - 500003, ANDHRA PRADESH, INDIA	-
15	90135533	04/12/1995	26,000,000.00	GLOBAL TRUST BANK LIMITED	303/48/3, SARDAR PATEL ROAD, SECUNDERABAD - 500003, ANDHRA PRADESH, INDIA	-
16	90132130	06/07/1995	55,000,000.00	GLOBAL TUST BANK LIMITED	303/48/3, SARDAR PATEL ROAD, SECUNDERABAD - 500003, ANDHRA PRADESH, INDIA	-
17	90132063	04/01/1995	40,000,000.00	THE INDUSTRIAL CREDIT and INVESTMENT CORP. OF INDIA LIMITED	163, BACKBAY RECLAMATION, MUMBAI - 400020, MAHARASHTRA, INDIA	-
18	90257991	30/06/1998 *	1,060,000,000.00	CANARA BANK	BASHIRBAGH, HYDERABAD, ANDHRA PRADESH, INDIA	-
19	90257988	03/08/1994	318,000,000.00	CANARA BANK	BASHIRBGH, HYDERABAD, ANDHRA PRADESH, INDIA	-
20	90131989	14/07/1994	50,000,000.00	THE INDUSTRIAL CREDIT and INVESTMENT CORP. OF INDIA LIMITED	163, BACKBAY RECLAMATION, MUMBAI - 400020, MAHARASHTRA, INDIA	-
21	90131913	13/08/1996 *	60,000,000.00	EXPORT IMPORT BANK OF INDIA	CENTRE ONE, WORLD TRADE CENTRE CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	-
22	90131852	28/08/1996 *	1,000,000.00	NEW INDIA ASSURANCE COMPANY LIMITED	MAHATMA GANDHI ROAD, MUMBAI - 400001, MAHARASHTRA, INDIA	-
23	90257824	15/09/1992	195,000,000.00	STATE BNAK OF INDIA	INDUSTRIAL FINANCE BRANCH, SOMAJIGUDA, HYDERABAD, ANDHRA PRADESH, INDIA	-
24	90257820	16/10/1993 *	15,000,000.00	BANK OF BARODA	KHAIRTABAD, HYDERABAD, ANDHRA PRADESH, INDIA	-
25	90259573	03/08/1992	20,400,000.00	STATE BANK OF INDIA	INDUST. FINANCE BRANCH, SOMAJIGUDA, HYDERABAD, ANDHRA PRADESH, INDIA	-
26	90257815	16/10/1993 *	15,000,000.00	BANK OF BARODA	KHAIRTABAD, HYDERABAD, ANDHRA PRADESH, INDIA	-
27	90131842	24/07/1992	25,000,000.00	STATE BANK OF MYSORE	BANJARA HILLS BRANCH, HYDERABAD, ANDHRA PRADESH, INDIA	-
28	90257810	07/07/1992	30,000,000.00	CANARA BANK	BASHIRBAGH, HYDERABAD, ANDHRA PRADESH, INDIA	-
29	90131831	16/05/1996 *	25,000,000.00	STATE BANK OF MYSORE	BANJARA HILLS BRANCH, BANJARA HILLS, HYDERABAD, ANDHRA PRADESH, INDIA	-
30	90131814	06/12/1993 *	15,000,000.00	THE INDUSTRIAL CREDIT and INVESTMENT CORP. OF INDIA LIMITED	163; BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA	-
31	90133552	28/08/1996 *	15,000,000.00	THE INDUSTRIAL CREDIT and INVESTMENT CORP. OF INDIA LIMITED	163, BACKBAY RECLAMATION, MUMBAI - 400020, MAHARASHTRA, INDIA	-
32	90131803	11/09/1991	4,500,000.00	INDUSTRIAL FINANCE CORP. OF INDIA	BANK OF BARODA BUILDING, 16; SANSAD MARG; P.B. NO. 363, NEW DELHI - 110001, INDIA	-
33	90259520	20/02/1992 *	22,500,000.00	CANARA BANK	BASHIRBAGH, HYDERABAD, ANDHRA PRADESH, INDIA	-
34	90257684	20/12/1990	22,500,000.00	CANARA BANK	BASHIRBAGH, HYDERABAD, ANDHRA PRADESH, INDIA	-
35	90131756	19/12/1990	320,000.00	GENERAL INSURANCE CORPORATION OF INDIA	INDUSTRIAL ASSURANCE BUILDING, CHURCHGATE, MUMBAI - 400020, MAHARASHTRA, INDIA	-
36	90257680	05/03/1992 *	14,400,000.00	ANZ GRINDLAYS BANK	ABIDS, HYDERABAD, ANDHRA PRADESH, INDIA	-
37	90257677	27/08/1996 *	22,400,000.00	ANZ GRINDLAYS BANK	HYDERABAD, HYDERABAD, ANDHRA PRADESH, INDIA	-
38	90263248	12/11/1990	63,000,000.00	BANK OF BARODA	KHAIRTABAD BRANCH, HYDERABAD - 500004, ANDHRA PRADESH, INDIA	-
39	90257676	05/03/1992 *	22,400,000.00	ANZ GRINDLAYS BANK	ABIDS, HYDERABAD, ANDHRA PRADESH, INDIA	-
40	90257648	03/08/1992 *	9,000,000.00	STATE BANK OF INDIA	INDUST. FINANCE BRANCH, SOMAJIGUDA, HYDERABAD, ANDHRA PRADESH, INDIA	-
41	90257626	18/08/1994 *	24,000,000.00	CANARA BANK	BASHIRBAGH, HYDERABAD, ANDHRA PRADESH, INDIA	-
42	90257622	20/08/1992 *	15,000,000.00	BANK OF BARODA	KHARITABAD BRANCH, HYDERABAD, ANDHRA PRADESH, INDIA	-
43	90131694	28/08/1996 *	10,000,000.00	THE INDUSTRIAL CREDIT and INVESTMENT CORP. OF INDIA LIMITED	163, BACKBAY RECLAMATION, MUMBAI - 400020, MAHARASHTRA, INDIA	-
44	90257610	27/11/1989	3,000,000.00	STATE BNAK OF INDIA	INDUSTRIAL FINANCE BRANCH, SOMAJIGUDA, HYDERABAD, ANDHRA PRADESH, INDIA	-
45	90133492	13/11/1989	7,000,000.00	STATE BANK OF INDIA	R.P. ROAD, SECUNDERABAD, ANDHRA PRADESH, INDIA	-
46	90263099	30/10/1989	181,255.00	DCL FINANCE LIMITED	DECCAN CHAMBERS, SOMAJIGUDA, HYDERABAD - 500482, ANDHRA PRADESH, INDIA	-
47	90263098	18/08/1989	612,527.00	DCL FINANCE LIMITED	DECCAN CHAMBERS, SOMAJIGUDA, HYDERABAD - 500482, ANDHRA PRADESH, INDIA	-
48	90131663	30/06/1989	7,500,000.00	THE INDUSTRIAL CREDIT and INVESTMENT CORP. OF INDIA LIMITED	163, BACKBAY RECLAMATION, MUMBAI - 400020, MAHARASHTRA, INDIA	-
49	90131652	13/08/1996 *	16,000,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA	IDBI TOWER, CUFFE PARADE COLABA, BOMBAY, MAHARASH TRA - 400005, INDIA	-
50	90257559	13/02/1989	79,712.00	CANARA BANK	BASHIRBAGH, HYDERABAD - 500029, ANDHRA PRADESH, INDIA	-
51	90257549	15/12/1988	79,712.00	CANARA BANK	BASHIRBAGH, HYDERABAD - 500029, ANDHRA PRADESH, INDIA	-
52	90257547	07/12/1988	339,326.00	CANARA BANK	BASHIRBAGH, HYDERABAD - 500029, ANDHRA PRADESH, INDIA	-
53	90263097	03/11/1988	1,221,000.00	DCL FINANCE LIMITED	DECCAN CHAMBERS, SOMAJIGUDA, HYDERABAD - 500482, ANDHRA PRADESH, INDIA	-
54	90257538	18/08/1994 *	18,500,000.00	CANARA BANK	BASHIRBAGH, HYDERABAD, ANDHRA PRADESH, INDIA	-
55	90263095	13/10/1988	151,921.00	DCL FINANCE LIMITED	DECCAN CHAMBERS, SOMAJIGUDA, HYDERABAD - 500482, ANDHRA PRADESH, INDIA	-
56	90257537	12/10/1988	210,183.00	CANARA BANK	BASHIRBAGH, HYDERABAD - 500029, ANDHRA PRADESH, INDIA	-
57	90257536	11/10/1988	18,500,000.00	CANARA BANK	BASHIRBAGH, HYDERABAD - 500029, ANDHRA PRADESH, INDIA	-
58	90257534	07/10/1988	339,326.00	CANARA BANK	BASHIRBAGH, HYDERABAD - 500029, ANDHRA PRADESH, INDIA	-
59	90257533	16/12/1992 *	18,500,000.00	CANARA BANK	BASHIRBAGH, HYDERABAD - 500029, ANDHRA PRADESH, INDIA	-
60	90131606	28/08/1996 *	6,000,000.00	THE INDUSTRIAL CREDIT and INVESTMENT CORP. OF INDIA LIMITED	163, BACKBAY RECLAMATION, MUMBAI - 400020, MAHARASHTRA, INDIA	-
61	90259469	07/09/1988	161,200.00	CANARA BANK	BASHIRBAGH, HYDERABAD - 500029, ANDHRA PRADESH, INDIA	-
62	90133416	22/09/1987	2,000,000.00	THE ICICI LIMITED	MUMBAI, MAHARASHTRA, INDIA	-
63	90131551	12/01/1989 *	8,000,000.00	THE INDUSTRIAL CREDIT and INVESTMENT CORP. OF INDIA LIMITED	163, BACKBAY RECLAMATION, MUMBAI - 400020, MAHARASHTRA, INDIA	-
64	90259446	25/06/1987	6,000,000.00	ANZ GRINDLAYS BANK	HYDERABAD, ABIDS, HYDERABAD, ANDHRA PRADESH, INDI A	-
65	90257463	03/06/1987	2,000,000.00	CANARA BANK	BASHIRBAGH, HYDERABAD - 500029, ANDHRA PRADESH, INDIA	-
66	90257457	03/06/1987 *	7,500,000.00	CANARA BANK	BASHIRBAGH, HYDERABAD - 500029, ANDHRA PRADESH, INDIA	-
67	90131537	27/03/1987	5,000,000.00	THE INDUSTRIAL CREDIT and INVESTMENT CORP. OF INDIA LIMITED	163, BACKBAY RECLAMATION, MUMBAI - 400020, MAHARASHTRA, INDIA	-
68	90257446	24/02/1987	8,000,000.00	CANARA BANK	BASHIRBAGH, HYDERABAD - 500029, ANDHRA PRADESH, INDIA	-
69	90131526	31/05/2000 *	44,000,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, SOMAJIGUDA, HYDERABAD, ANDHRA PRADESH, INDIA	-
70	90133393	29/10/1996 *	48,000,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, SOMAJIGUDA, HYDERABAD, ANDHRA PRADESH, INDIA	-
71	90135052	25/10/1997 *	48,000,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, SOMAJIGUDA, HYDERABAD, ANDHRA PRADESH, INDIA	-
72	90257443	12/01/1987	143,700.00	CANARA BANK	BASHIRBAGH, HYDERABAD - 500029, ANDHRA PRADESH, INDIA	-
73	90131520	03/11/1986	6,500,000.00	THE INDUSTRIAL CREDIT and INVESTMENT CORP. OF INDIA LIMITED	163, BACKBAY RECLAMATION, MUMBAI - 400020, MAHARASHTRA, INDIA	-
74	90257427	06/09/1986	4,000,000.00	CANARA BANK	BASHIRBAGH, HYDERABAD - 500029, ANDHRA PRADESH, INDIA	-
75	90257425	02/09/1986	24,500,000.00	CANARA BANK	BASHIRBAGH, HYDERABAD - 500029, ANDHRA PRADESH, INDIA	-
76	90257422	21/06/1986	2,000,000.00	CANARA BANK	BASHIRBAGH, HYDERABAD - 500029, ANDHRA PRADESH, INDIA	-
77	90257413	11/04/1986	500,000.00	CANARA BANK	BASHIRBAGH, HYDERABAD - 500029, ANDHRA PRADESH, INDIA	-
78	90135024	25/02/1986	2,000,000.00	CANARA BANK	BASHIRBAGH, HYDERABAD - 500029, ANDHRA PRADESH, INDIA	-
79	90131485	11/10/1985	1,000,000.00	ANDHRA BANK	BALANAGAR, HYDERABAD, ANDHRA PRADESH, INDIA	-
80	90136505	24/08/1985	184,600.00	DCL FINANCE LIMITED	SOMJIGUDA, HYDERABAD, ANDHRA PRADESH, INDIA	-
81	90257374	03/06/1987 *	1,950,000.00	CANARA BANK	BASHIRBAGH, HYDERABAD - 500029, ANDHRA PRADESH, INDIA	-
82	90259419	03/06/1987 *	1,400,000.00	CANARA BANK	BASHIRBAGH, HYDERABAD - 500029, ANDHRA PRADESH, INDIA	-
83	90257360	03/06/1987 *	1,500,000.00	CANARA BANK	BASHIRBAGH, HYDERABAD - 500029, ANDHRA PRADESH, INDIA	-
84	90131456	05/09/1984	1,500,000.00	ANDHRA BANK	BALANAGAR, HYDERABAD, ANDHRA PRADESH, INDIA	-
85	90131021	03/01/1984	394,000.00	ANDHRA PRADESH STATE FINANCIAL CORP.	CHIRAG ALI LANE, HYDERABAD, ANDHRA PRADESH, INDIA	-
86	90263087	19/02/1980	188,612.00	DCL FINANCE LIMITED	DECCAN CHAMBERS, SOMAJIGUDA, HYDERABAD - 500482, ANDHRA PRADESH, INDIA	-

* Date of charge modification

UNSECURED LOANS:

Particular	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Debentures
9.25% Redeemable Non convertible Debentures of Rs. 5/- each (a)	0.000	5078.000
Deferred payment liabilities
Sales tax deferment loan from the Government of Andhra Pradesh (interest free) (b)	28.000	47.000
SHORT TERM BORROWINGS
Packing Credit Loans (c)	15786.000	10204.000
Bank overdraft	42.000	0.000
Total	15856.000	15329.000

Note:

(a) Debentures are due for redemption on 24 March 2014 and accordingly, the same are disclosed under other current liabilities as at 31 March 2013

(b) Sales tax deferment loan is repayable in 10 installments, with the last installment due on 31 March 2019.

(c) Packing Credit loans for the current year comprised of USD / EUR denominated Foreign Currency Packing Credit loans carrying interest rates of LIBOR plus 50 - 125 bps and RUB denominated loans carrying fixed interest rate of 7.25% - 8.00% per annum and are repayable within 1 to 6 months from the date of drawdown. Packing Credit loans for the previous year comprised of USD / EUR denominated Foreign Currency Packing Credit loans carrying interest rates of LIBOR plus 100 - 150 bps or fixed rate of 2.21% - 3.06% per annum and were repayable within 1 to 6 months from the date of drawdown.

BUSINESS PERFORMANCE

Business Performance

Global Generics Global Generics segment grew by 18% to Rs. 82563.000 millions in FY2013 from Rs. 70243.000 millions in FY2012. Excluding the beneficial impact of Olanzapine exclusivity from FY2012 revenues, the year-on-year growth was 26%.

Revenue from North America grew by 19% to Rs. 37846.000 millions in FY2013 from Rs. 31889.000 millions in FY2012. Excluding the beneficial impact of olanzapine exclusivity from FY2012 revenues, the year-on-year growth was 38%.

Revenue from Russia and other CIS countries grew by 28% to Rs. 16908.000 millions in FY2013 from Rs. 13260.000 millions in FY2012. India showed a revenue growth of 13% to Rs. 14560.000 millions in FY2013 from R12931.000 millions in FY2012.

PHARMACEUTICAL SERVICES AND ACTIVE INGREDIENTS

Revenues grew by 29% to Rs. 30702.000 millions from Rs. 23812.000 millions in FY2012. This growth was largely driven by new product launches to generic customers and improved customer orders.

MANAGEMENT DISCUSSION AND ANALYSIS

Established in 1984, they are an integrated global pharmaceutical company committed to providing affordable and innovative medicines through their three core businesses: Global Generics, Pharmaceutical Services and Active Ingredients and Proprietary Products.

Dr. Reddy’s business segments are described as under:

Global Generics(GG) segment, which includes their branded and unbranded prescription and over-the-counter (OTC) drug products business. This segment also includes the operations of their Biologics business;

Pharmaceutical Services and Active Ingredients (PSAI) segment, which consists of their Active Pharmaceutical

Ingredients (API) business and Custom Pharmaceutical Services (CPS) business; and

Proprietary Products segment, which consists of their New Chemical Entities (NCEs), Differentiated Formulations and dermatology focused specialty business operated through Promius™ Pharma.

They have a strong presence in highly regulated markets such as the United States, the United Kingdom and Germany, as well as in other key markets such as India, Russia, Venezuela, Romania, South Africa and certain countries of the former Soviet Union.

Given below is a brief outline of the businesses. Further details are to be found in subsequent sections of this chapter.

OUTLOOK FOR THE GLOBAL

Pharmaceutical Industry The global pharmaceutical market is estimated to cross USD 1 trillion in 2013. It is expected to grow at a CAGR of 6% to reach USD 1.2 trillion by 2016 (IMS, The Global Use of Medicines: Outlook through 2016).

This growth will be largely contributed by what is called the ‘pharmerging’ markets1, generics and the biologics space. For the period from 2011 to 2016, pharmerging markets have been estimated to grow at a CAGR of 12% to 15%; generics at a CAGR of 11% to 12%; and biologics at a CAGR of 5% to 6%.

During the same period, developed markets, coping with patent expiries, are expected to register much lower growth —estimated at a CAGR of 1% to 4%. Of all developed markets, the US still continues to be the largest, followed by Japan and Germany. However, what needs noting is that by growing at a significantly higher rate, the pharmerging markets are expected to account for 30% of the global market in 2016, from 20% in 2012. In doing so, the pharmerging markets will, in the aggregate, match the size of the US market in 2016.

The global pharmaceutical industry is at an interesting point in time. To understand its characteristics and offerings, one needs to examine the opportunities and challenges.

KEY GROWTH SEGMENTS

Having stated the challenges, it is equally important to touch upon the growth areas. These are expected to be:

THE PHARMERGING MARKETS

The pharmerging market—predominantly comprising branded generics—currently accounts for a fifth of the global market. As mentioned earlier, it is expected to nearly double its size by adding USD 150 billion to USD 165 billion by 2016 and, in doing so, reach 30% of the global pharmaceutical market.

GENERICS

This market is estimated to increase from USD 242 billion at present to somewhere between USD 400 and USD 430 billion by 2016. A sizeable generic opportunity exists with the impending patent expiries. The total value of patent expiries beyond 2012 is estimated at USD 101 billion over the next four years.

BIOLOGICS

The global biologics market is expected to reach USD 200 to USD 210 billion by 2016. Biosimilars are estimated to reach around USD 4 billion to USD 6 billion. With patent for top selling biologics expiring between 2012 and 019, biosimilars are expected to witness stronger growth in the future. Passing of the Biologics Price Control and Innovation (BPCI) Act of 2009 in the US for creating a regulatory pathway for biosimilars, and establishment of biosimilar monoclonal antibodies guidelines in Europe, are other positive factors expected to drive the growth momentum.

OUTLOOK

The Company believes that its focus on profitable growth and targeting a leadership position in GG and PSAI will create significant value in the near term. In GG, improving depth through portfolio expansion, cost leadership, consistent delivery of limited competition products and supply chain excellence should lead to a leadership position in key markets. In PSAI, the objective is to be the partner of choice by creating compelling value for customers through leveraging IP, technology and cost leadership. In Proprietary Products, the aim is to create a viable business by calibrating investments to produce a self sustainable model.

The Company has a positive outlook for the next year. The largest increment of growth is expected to be contributed by the North America generics business. It also expects continued momentum from its key Emerging Markets.

OUTLOOK FOR THE GLOBAL PHARMACEUTICAL INDUSTRY

The global pharmaceutical market is estimated to cross USD 1 trillion in 2013. It is expected to grow at a CAGR of 6% to reach USD 1.2 trillion by 2016 (IMS, The Global Use of Medicines: Outlook through 2016).

During the same period, developed markets, coping with patent expiries, are expected to register much lower growth estimated at a CAGR of 1% to 4%. Of all developed markets, the US still continues to be the largest, followed by Japan and Germany. However, what needs noting is that by growing at a significantly higher rate, the pharmerging markets are expected to account for 30% of the global market in 2016, from 20% in 2012. In doing so, the pharmerging markets will, in the aggregate, match the size of the US market in 2016.

The global pharmaceutical industry is at an interesting point in time. To understand its characteristics and offerings, one needs to examine the opportunities and challenges.

CONTINGENT LIABILITIES:

PARTICULARS	31.03.2013 (Rs. in millions)	31.03.2012 (Rs. in millions)
Guarantees:
(a) Issued by the Company on behalf of subsidiaries, associates and joint ventures	16274.000	17039.000
Claims against the Company not acknowledged as debts in respect of:
(a) Income tax matters, pending decisions on various appeals made by the Company and by the Department	446.000	432.000
(b) Excise matters (including service tax), under dispute	301.000	250.000
(c) Sales tax matters, under dispute	379.000	237.000
(d) The Company has received demand for payment to the credit of the Drug Prices Equalisation Account under Drugs (Price Control) Order, 1995 for few of its products which are being contested. Based on its best estimate, the Company has made a provision in its books of account towards the potential liability related to the principal and interest amount demanded under the aforesaid order and believes that possibility of any liability that may arise on account of penalty on this demand is not likely.
(e) The Andhra Pradesh Electricity Regulatory Commission (the “APERC”) has passed various orders approving the levy of Fuel Surcharge Adjustment (“FSA”) charges for the period from 1 April 2008 to 31 December 2012 by power distribution companies from all the consumers of electricity in the state of Andhra Pradesh, India. The Company filed separate Writs of Mandamus before the High Court of Andhra Pradesh (the “High Court”) challenging and questioning the validity and legality of this levy of FSA charges by the APERC for various periods. The Company, after taking into account all of the available information and legal provisions, has recorded an amount of Rs. 233.000 as the potential liability towards FSA charges. The total amount approved by APERC for collection by the power distribution companies from the Company in respect of FSA charges for the period from 1 April 2008 to 31 December 2012 is approximately Rs. 473.000. As of 31 March 2013, the Company paid, under protest, an amount of Rs. 84.000 demanded by the power distribution companies as part of monthly electricity bills. The Company remains exposed to additional financial liability should the orders passed by the APERC be upheld by the Courts.
(f) The Company, along-with many other pharmaceutical companies in Andhra Pradesh, has received various notices from the Andhra Pradesh Pollution Control Board (the “APP Control Board) to show cause as to why action should not be initiated against it for violations under the Indian Water Pollution Act and the Indian Air Pollution Act. Furthermore, the APP Control Board issued orders to the Company to (i) stop production of all new products at the Company’s manufacturing facilities in Hyderabad, India without obtaining a “Consent for Establishment”, (ii) not manufacture products at such facilities in excess of certain quantities specified by the APP Control Board and (iii) furnish a bank guarantee (similar to a letter of credit) totalling to Rs.12.500. The Company appealed the APP Control Board orders to the Andhra Pradesh Pollution Appellate Board (the “APP Appellate Board”). The APP Appellate Board first stayed the APP Control Board orders and subsequently modified the orders, permitting the Company to file applications for Consents for Establishment and to increase the quantities of existing products which could be manufactured beyond that permitted by the APP Control Board, while requiring the Company not to manufacture new products at the specified facilities without the permission of the APP Control Board. The APP Appellate Board also reduced the total value of the Company’s bank guarantee required by the APP Control Board to Rs. 6.250. The APP Appellate Board passed its order on 20 October 2012 in favour of the Company and observed that pollution load has to be determined on the basis of the level of effluents after treatment, and not at the time of generation. The APP Appellate Board set a three month time frame for the state government to make a decision on the proposal made by the pharmaceutical manufacturing industry to reconsider the state executive orders with respect to a ban on manufacture of pharmaceutical products beyond the approved quantities. The state government has not yet issued its decision. The APP Control Board issued further notices on 6 December 2012 and 28 February 2013 to the Company seeking certain clarifications regarding the list of products, pollution (water and air) and compliance with Consent for Operation and Consent for Establishment pertaining to Company’s four active pharmaceutical ingredients manufacturing units. After submission of necessary clarifications by the Company, the APP Control Board forfeited the bank guarantee amounting to Rs. 1.000 for two of the Company’s units while releasing the bank guarantee of Rs. 0.250 for third unit. Further, the APP Control Board directed the Company to furnish an additional bank guarantee of Rs. 8.000 for the aforesaid two units. The Company is in the process of challenging the orders of APP control Board before the appellate Authority.
(g) Additionally, the Company is involved in other disputes, lawsuits, claims, governmental and/or regulatory inspections, inquiries, investigations and proceedings, including patent and commercial matters that arise from time to time in the ordinary course of business. Except as discussed above, the Company does not believe that there are any such contingent liabilities that are expected to have any material adverse effect on its financial statements.

PART I : STATEMENT OF AUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31 MARCH 2014

(Rs. In Millions)

Particulars	Quarter Ended		Nine Months Ended
Particulars	31.03.2014	31.12.2013	31.03.2014
	(Audited)	(Unaudited)	(Audited)
1. Income from operations
a) Net sales/ Income from operation (net of excise duty)	25322.700	25471.100	94957.200
b) ) License fees and service income	629.700	213.800	1511.200
c) Other operating income	198.800	152.800	812.100
Total income from Operations(net)	26151.200	25837.700	97280.500
2. Expenses
a) Cost of material consumed	6283.900	5094.800	22480.200
b) Purchases of stock in trade	1332.300	1201.700	4690.400
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	(685.600)	(5.900)	(1704.800)
d) Employees benefit expenses	2943.100	3123.800	11849.400
e) Research and development expenses	3909.600	2053.800	9981.700
f) Selling expenses	2776.000	2248.600	8989.800
g) Depreciation and amortisation	989.500	981.600	3805.000
h) Provision for decline in the value of long-term investments	0.000	0.000	244.900
i) Other expenditure	3279.700	2967.400	13131.500
Total expenses	20828.500	17665.800	73468.100
3. Profit from ordinary activities before other income, finance costs and Tax (1-2)	5322.700	8171.900	23812.400
4. Other income	838.500	631.900	1514.600
5. Profit from ordinary activates before finance costs and Tax (3+4)	6161.200	8803.800	25327.000
6. Finance costs	189.800	212.500	783.100
7. Profit from ordinary activities before exceptional items (5-6)	5971.400	8591.300	24543.900
8. Exceptional items	0.000	0.000	0.000
9. Profit from ordinary activities before tax (7+8)	5971.400	8591.300	24543.900
10. Tax expense	1257.100	2359.600	5215.500
11. Net Profit from ordinary activities after tax (9-10)	4714.300	6231.700	19328.400
12. Extra-ordinary items	0.000	0.000	0.000
13. Net profit for the period / year (11-12)	4714.300	6231.700	19328.400
14. Paid-up equity share capital (face value Rs. 5/- each)	850.500	850.500	850.500
15. Reserves (excluding revaluation reserve & debenture redemption reserve)
16. Earnings per share before and after extra-ordinary items (in Rupees) per Rs. 5/- share
- Basic	27.71	36.63	113.67
- Diluted	27.59 (Not Annualised)	36.47 (Not Annualised)	113.13 (Not Annualised)

PART II : SELECTED INFORMATION FOR THE QUARTER AND YEAR ENDED 31 MARCH 2014
A. Particulars of shareholding
1. Public Shareholding
- Number of shares (face value Rs. 5/- each)	96048821	97590957	96048821
- Percentage of shareholding	56.47	57.37	56.47
2. Promoters and Promoters group Shareholding-
a) Pledged /Encumbered
Number of shares	-	-	-
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	-	-	-
Percentage of shares (as a % of total share capital of the company)	-	-	-

b) Non Encumbered
Number of shares	43417812	43417812	43417812
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	100.00	100.00	100.00
Percentage of shares (as a % of total share capital of the company)	25.52	25.53	25.52

*Public shareholding as defined under Clause 40A of Listing Agreement (excludes shares held by Promoters, Promoter Group and American Depository Receipt Holders)

B. Investor Complaints (Nos.)	31.03.2014 (Quarter Ended)
Pending at the beginning of the quarter	Nil
Receiving during the quarter	4
Disposed of during the quarter	4
Remaining unreserved at the end of the quarter	Nil

*Public shareholding as defined under Clause 40A of Listing Agreement (excludes shares held by Promoters, Promoter Group and American Depository Receipt Holders)

SEGMENT INFORMATION

(Rs. In Millions)

Particulars	Quarter Ended		Nine Months Ended
Particulars	31.03.2014	31.12.2013	31.03.2014
	(Audited)	(Unaudited)	(Audited)
1. Segment wise revenue, results and capital employed
Segment revenue
a) Pharmaceutical Services and Active Ingredients	6876.100	5785.600	24891.400
b) Global Generics	20951.700	21547.200	77676.900
c) Proprietary Products	0.000	0.000	313.100
Total	27827.800	27317.100	102881.400
Less: Inter segment revenue	1676.600	1479.600	5601.100
Add : Other unallocable Income	0.000	0.200	0.200
Total income from operations	26151.200	25837.700	97280.500
2. Segment results
Profit / (loss) before tax and interest from each segment
a) Pharmaceutical Services and Active Ingredients	54.900	(290.100)	625.800
b) Global Generics	4544.200	8633.400	29106.200
c) Proprietary Products	(693.500)	(558.500)	(1990.900)
Total	3905.600	7784.800	27741.100
Less: Interest	189.800	212.500	783.100
Less: Other unallocable Income	(2255.600)	(1019.000)	2414.100
Total profit before tax	5971.400	8591.300	24543.900
3. Capital Employed :
a) Pharmaceutical Services and Active Ingredients	27326.700	26924.200	27326.700
b) Global Generics	56650.800	53838.700	56650.800
c) Proprietary Products	59.000	206.900	59.000
d) Unallocated*	9251.700	10512.800	9251.700
Total	93288.200	91482.600	93288.200

Global Generics includes operations of Biologics business. Inter-segment revenue represents sale from Pharmaceutical Services and Active Ingredients to Global Generics at cost.

* Centrally managed assets and liabilities such as Cash and bank balances, loans and advances to subsidiaries, income tax assets and liabilities, investments and borrowings are included in unallocated capital employed.

Notes:

1. The above financial results are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair value. GAAP comprises mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006 and guidelines issued by Securities and Exchange Board of India.

2. Ratios have been computed as follows:

a) Debt Equity Ratio = Debt / Net Worth

[ Debt: Long Term Borrowings (Current and Non current portion) ]

[ Net Worth: Share Capital + Reserves & Surplus ]

b) Debt Service Coverage Ratio = Earnings before interest and tax / (Interest expense during the period + Principal repayment for all the loan funds during the

c) Interest Service Coverage Ratio = Earnings before interest and tax / Interest expense during the period

[ Earnings before interest and tax: Profit from ordinary activities before tax + Interest expense]

3. Statement of assets and liabilities

	Particular	At 31.03.2014 (Audited)
A	EQUITY AND LIABILITIES
1	Shareholders’ funds
	(a) Share capital	850.500
	(b) Reserves and surplus	92437.700
	Sub-total - Shareholders' funds	93288.200

2	Non-current liabilities
	(a) Long-term borrowings	9015.500
	(b) Deferred Tax Liabilities (Net)	1251.900
	(c) Other long-term liabilities	47.600
	(d) Long-term provisions	334.800
	Sub-total - Non-current liabilities	10649.800

3	Current liabilities
	(a) Short-term borrowings	17629.800
	(b) Trade payables	8422.700
	(c) Other current liabilities	10293.700
	(d) Short-term provision	4795.00
	Sub-total - Current liabilities	41141.200
	TOTAL - EQUITY AND LIABILITIES	145079.200

B	ASSETS
1	Non-current assets
	(a) Fixed assets	33243.600
	(b) Non-current investments	17400.500
	(c) Long-term loans and advances	4454.900
	(d) Other non-current assets	0.000
	Sub-total - Non-current assets Current assets	55099.000
2	Current assets
	(a) Current Investments	10664.300
	(b) Inventories	15921.300
	(c) Trade receivables	45614.800
	(d) Cash and cash equivalents	6650.700
	(e) Short-term loans and advances	9188.900
	(f) Other current assets	1940.200
	Sub-total - Current assets	89980.200
	TOTAL - ASSETS	145079.200

4 The audited results have been reviewed by the Audit Committee of the Board on 12 May 2014 and approved by the Board of Directors of the Company at their meeting held on 13 May 2014.

5 During the quarter ended 30 September 2013, the Company entered into an asset purchase agreement with Ecologic Chemicals Limited (“Ecologic”), where in two directors of the company have equity interests. The Company has paid Rs. 1264.200 Millions excluding taxes and duties for purchase of fixed and current assets. The consideration was arrived at based on valuation from independent valuers. The acquisition of these assets will help to augment the Company's manufacturing capacity in meeting the future business requirements of its PSAI segment.

6 Pursuant to a favourable order from Income Tax Appellate Tribunal, Hyderabad over a previously litigated matter, the company has reversed a tax provision of Rs. 683.700 Millions during the quarter ended 30 September 2013.

7 During the quarter ended 31 December 2013, the Company disposed its investment in Lacock Holdings Limited, Dr. Reddy’s Laboratories Inc., Dr. Reddy’s Laboratories (Australia) Pty. Limited, Dr. Reddy’s Laboratories (Proprietary) Limited and OOO Dr. Reddy’s Laboratories Limited to its wholly owned subsidiary Dr. Reddy’s Laboratories SA, Switzerland. The aggregate loss on such disposal of investment recorded under “Other expenditure” is Rs. 165.500 Millions.

8 Consequent to the increase in expected cash flows of some of the products forming part of product related intangibles pertaining to Company's Global Generics segment, the Company assessed the recoverability of money advanced to one of its subsidiaries which had funded the acquisition of such product related intangibles and reversed Rs. 280.400 Millions of provision for doubtful advances during the quarter ended 31 December 2013.

9 During the quarter ended 31 March 2014, the Company redeemed 9.25% unsecured, non-convertible, redeemable debentures at par value of Rs.5077.600 Millions.

10 The Board of Directors, at their meeting held on 13 May 2014, have recommended a final dividend of Rs. 18 per share subject to the approval of shareholders.

11 The figures for the previous periods have been re-grouped/ re-classified, wherever necessary, to conform to the current period classification.

12 The figures of the last quarter are the balancing figures between audited figures in respect of the full financial year and published year to date figures up to the third quarter of the relevant financial year. Also the figures upto the end of third quarter were only reviewed and not subject to audit.

FIXED ASSETS:

· Land – Freehold

· Building

· Plant and Machinery

· Electrical Equipment

· Laboratory Equipment

· Furniture and fixture

· Office Equipment

· Vehicles

· Customer contracts

· Technical know how

· Non-compete fees

· Copyrights and patents

PRESS RELEASE

DR REDDY'S LAUNCHES GENERIC CHOLESTEROL-LOWERING DRUG IN US

Mar 27, 2014

Dr Reddy's Laboratories today launched generic version of Pfizer 's Caduet tablets, a cholesterol-lowering drug, in the American market after getting the approval from the US health regulator.

The company has launched Amlodipine Besylate and Atorvastatin Calcium Tablets in the US market following the approval by the United States Food and Drug Administration (USFDA), Dr Reddy's Laboratories said in a statement.

India ready to discuss IPR norms at WTO if US wants: Sharma

The company's product is the generic equivalent of Pfizer Inc's Caduet tablets, it added. The Hyderabad-based firm's Amlodipine Besylate and Atorvastatin Calcium tablets are available in bottle counts of 30 and 90, the company said.

According to IMS Health sales data, Caduet tablets brand and generics had US sales of around USD 163 million for the most recent twelve months ending in January 2014. Dr Reddy's Laboratories shares were trading at Rs 2,594 apiece on the BSE in afternoon trade, down 1.60 percent from its previous close.

Dr Reddys Labs stock price

On April 10, 2014, at 09:55 hrs Dr Reddys Laboratories was quoting at Rs 2609.00, down Rs 11.45, or 0.44 percent. The 52-week high of the share was Rs 2939.80 and the 52-week low was Rs 1846.45.

The company's trailing 12-month (TTM) EPS was at Rs 108.14 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 24.13. The latest book value of the company is Rs 457.56 per share. At current value, the price-to-book value of the company is 5.70.

DR REDDY'S LAB RECALLS 58,656 BOTTLES OF LANSOPRAZOLE IN US

Mar 13, 2014

Dr Reddy's Laboratories has recalled 58,656 bottles of its heartburn drug Lansoprazole in the United States due to a microbial contamination.

The US Food and Drug Administration has classified the recall of the drug as 'Class II' which indicates a remote chance of severe adverse consequences or death due to the product flaw.

The USFDA has been cracking down heavily on Indian drug makers for non-compliance of manufacturing norms.

The authority imposed a ban on import of drugs from Sun Pharma 's Karkhadi facility in Gujarat for violation of manufacturing norms.

Earlier this week, Sun Pharma had voluntarily recalled 2,528 bottles of its generic version of diabetes drug Glumetza in the US market on the basis of a customer complaint.

Among others, some plants of Ranbaxy and Wockhardt have already been banned from importing drugs into the US market.

While all plants of Daiichi Sankyo controlled Ranbaxy Laboratories in India have been banned from exporting drugs to the US, Wockhardt has also faced similar actions on its two plants in the country.

Dr Reddy's Laboratories shares today closed at Rs 2,734.15 on the BSE, up 1.63 percent from its previous close.

DR REDDY'S LAUNCHES ANTIBIOTIC DRUG IN US MARKET

Mar 05, 2014

HYDERABAD: Dr Reddy's Laboratories Ltd has launched Moxifloxacin Hydrochloride tablets in the US market for the treatment of a wide range of diseases, including pneumonia, bronchitis and skin infections.

The drug was launched yesterday following the approval by the United States Food & Drug Administration (USFDA), DRL said in a press release today.

The tablets, a generic version of Avelox 400 mg, are available in bottle counts of 30, it said.

Bayer's Avelox is indicated for the treatment of community acquired pneumonia (CAP), acute exacerbations of chronic bronchitis (AECB), acute bacterial sinusitis (ABS), uncomplicated and complicated skin and skin structure infections (uSSSI and cSSSI), mild to moderate pelvic inflammatory disease (PID), and complicated intra-abdominal infections (cIAI), according to Avelox official website.

According to IMS Health, Avelox (moxifloxacin HCl) tablets had a sales figure of approximately USD 195 millions in 2013, the release said.

Shares of DRL were trading at Rs 2,800 apiece on the BSE during afternoon trade.

DR. REDDY’S ANNOUNCES THE APPROVAL OF AZACITIDINE FOR INJECTION

Hyderabad, India, September 17, 2013

Dr. Reddy’s Laboratories (NYSE: RDY) announced today that Azacitidine for Injection 100 mg/vial, a bioequivalent generic version of VIDAZA® (azacitidine for injection) is approved by the United States Food & Drug Administration (USFDA) on September 16, 2013. The launch of product in the market is planned in the near-term.

The VIDAZA® brand had U.S. sales of approximately $378.5 Million for the most recent twelve months ending July 2013 according to IMS Health.

Dr. Reddy’s Azacitidine for Injection 100 mg/vial is available in single use-vials.

DR. REDDY’S LAUNCHES THE RECOMMENDED PUBLIC CASH OFFER
FOR ALL THE ISSUED AND OUTSTANDING ORDINARY SHARES OF OCTOPLUS N.V.

Hyderabad, India, December 14, 2012

Dr. Reddy’s Laboratories Limited (NYSE:RDY) [“Dr. Reddy’s”], together with its subsidiaries, launches the recommended public offer to acquire all the issued and outstanding shares of OctoPlus N.V. (Euronext Amsterdam: OCTO), a service based specialty pharmaceutical company, at an offer price of EUR 0.52 (cum dividend) per share. The Offer Period commences on 14 December 2012 at 09:00 CET and ends on 8 February 2013 at 18:00 CET, unless extended.

Shareholders (including certain members of the Boards) holding in aggregate 63.5% of the issued and outstanding ordinary shares of OctoPlus have entered into irrevocable undertakings to tender their shares under the Offer.

DR. REDDY’S ANNOUNCES THE LAUNCH OF DONEPEZIL HYDROCHLORIDE TABLETS, 23 MG

HYDERABAD, India

Dr. Reddy’s Laboratories (NYSE: RDY) announced yesterday that it has launched Donepezil Hydrochloride Tablets, 23 mg, a therapeutic equivalent generic version of ARICEPT^®, 23 mg in the U.S. market on July 26, 2013, following the approval by the United States Food and Drug Administration (USFDA) of Dr. Reddy’s ANDA for Donepezil Hydrochloride Tablets, 23 mg.

The ARICEPT^®, 23 mg brand had U.S. sales of approximately $92.6 Million MAT for the most recent twelve months ending in May 2013 according to IMS Health*.

Dr. Reddy’s Donepezil Hydrochloride Tablets, 23 mg is available in bottle count sizes of 30 and 90.

About Dr. Reddy’s

Dr. Reddy’s Laboratories Limited. (NYSE: RDY) is an integrated global pharmaceutical company, committed to providing affordable and innovative medicines for healthier lives. Through its three businesses - Pharmaceutical Services and Active Ingredients, Global Generics and Proprietary Products – Dr. Reddy’s offers a portfolio of products and services including APIs, custom pharmaceutical services, generics, biosimilars and differentiated formulations. Major therapeutic focus is on gastro-intestinal, cardiovascular, diabetology, oncology, pain management and anti-infective. Major markets include India, USA, Russia-CIS and Europe apart from other select geographies within Emerging Markets.

DR. REDDY’S ANNOUNCES THE LAUNCH OF DECITABINE FOR INJECTION

Hyderabad, India, July 12, 2013

Dr. Reddy’s Laboratories (NYSE: RDY) announced today that it has launched Decitabine for Injection (50mg) a therapeutic equivalent generic version of Dacogen (Decitabine for Injection) in the US market on July 11, 2013, following the approval by the United States Food and Drug Administration (USFDA) of Dr. Reddy’s ANDA for Decitabine for Injection.

The Dacogen brand has U.S. sales of approximately $260 Million MAT for the most recent twelve months ending in July 2013 according to IMS Health*.

Dr. Reddy’s Decitabine for Injection 50 mg is available as a single dose vial.

DR. REDDY ANNOUNCES FILING OF ANNUAL REPORT ON FORM 20-F

Hyderabad, India, July 10, 2013

Dr. Reddy's Laboratories Limited (NYSE: RDY) today announced that its Annual Report on Form 20-F, containing its annual consolidated financial statements for the fiscal year ended 31 March, 2013 was filed with the United States Securities and Exchange Commission on July 9, 2012.

The Annual Report on Form 20-F is also available on Dr. Reddy's website, www.drreddys.com and can be accessed by selecting 'SEC filings' under the 'Investors' Section. ADS holders may also obtain a hard copy of the Annual Report on Form 20-F at no cost, by sending a written request to the Company's registered office

DR. REDDY’S ANNOUNCES THE LAUNCH OF LAMOTRIGINE EXTENDED-RELEASE TABLETS

Hyderabad, India, June 26, 2013

Dr. Reddy’s Laboratories (NYSE: RDY) announced today that it has launched Lamotrigine Extended-Release Tablets (25 mg, 50 mg, 100 mg, 200 mg, 300 mg) a therapeutic equivalent generic version of Lamictal® XR (lamotrigine) in the US market on June 25, 2013, following the approval by the United States Food and Drug Administration (USFDA) of Dr. Reddy’s ANDA for Lamotrigine XR tablets.

The Lamictal® XR brand and generic had combined U.S. sales of approximately $300.5 Million MAT for the most recent twelve months ending in April 2013 according to IMS Health*.

Dr. Reddy’s Lamotrigine XR Tablets 25 mg, 50 mg, 100 mg, 200 mg, and 300 mg are available as unit of use bottles of 30s.

FUJIFILM AND DR. REDDY'S CALL OFF JOINT VENTURE FOR GENERIC DRUGS IN JAPAN

Hyderabad, India, June 3, 2013

FUJIFILM Corporation ("Fujifilm" hereinafter) and Dr. Reddy's Laboratories Limited. ("Dr. Reddy's" hereinafter) have decided to terminate the Memorandum of Understanding (the "MoU" hereinafter) to enter into an exclusive partnership in the generic drugs business for the Japanese market and to establish a joint venture in Japan.

Based on the MoU signed on July 28, 2011, the two companies had conducted detailed studies on the establishment of a joint venture for developing and manufacturing generic drugs in Japan. However, as Fujifilm realigns its long-term growth strategy for the pharmaceutical business, both companies have led to a mutual agreement to terminate the MoU.

The two companies will continue to explore partnership/alliance opportunities in other pharmaceutical businesses such as API (active pharmaceutical ingredient) development and manufacturing, contract research and development and manufacturing, and the development and marketing of super-generics.

Commenting on the development, GV Prasad, Chairman and CEO, Dr. Reddy's said, "Unfortunately, we will not be able to partner with Fujifilm specifically for generic formulations business in Japan. However, I want to reinforce our commitment towards a planned entry into Japan to bring affordable and innovative drugs to more patients worldwide."

Takatoshi Ishikawa, Director Corporate Vice President and General Manager of Pharmaceutical Products Division said, ”In the long-term we will be focusing more on priority fields such as new drugs in cancer field, more value-added super Generic, and bio-related business by using our core technologies: analysis technologies, original nanotechnology, and high reliability and high quality manufacturing technologies. Meanwhile, we will continue future collaboration with Dr. Reddy’s in other fields.”

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 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.59.20
UK Pound	1	Rs.99.52
Euro	1	Rs.80.83

INFORMATION DETAILS

Information Gathered by :	PDT

Analysis Done by :	DIV

Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	8
--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	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		79

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	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
--	NB	New Business	--

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

14.76

16.47

20.79

19.83

18.68

16.82

0.23

0.17

0.20

0.24

1.63

1.40

Unit