DRIVIN G ROWTH - Dr. Reddy's

76
corporate governance
Table 3
|
Audit committee attendance during 2001-02
COMMITTEE MEMBERS MEETINGS HELD MEETING ATTENDED
Dr. Omkar Goswami (Chairman) 5 5
P N Devarajan 5 5
Ravi Bhoothalingam 5 5
Dr. P Satyanarayana Rao 5 4
Dr. A Venkateswarlu 5 5
The Company Secretary is the Secretary
of the Committee.
The Audit Committee met five times
during the year: on May 30, 2001, July 31,
2001, September 25, 2001, October 31,
2001 and January 28, 2002. Table 3 gives
the attendance record of the Audit
Committee.
Among others, the tasks of Dr. Reddy’s
Audit Committee are to:
■ Effectively supervise the financial reporting
process.
■ Review the quarterly, and annual financial
results before placing them before
the Board.
■ Review the adequacy of internal controls in
the Company, including the plan, scope of
internal audits and performance of the
internal audit department.
■ Review financial and other operational risk
management policies of the Company.
■ Hold discussions with Statutory Auditors on
the nature and scope of audits, and any
views that they have about the financial
control and reporting processes.
■ Ensure compliance with accounting standards,
and with listing requirements concerning
financial statements.
■ Recommend the appointment and removal of
external Auditors and their fees.
■ Ensure that adequate safeguards have been
taken for legal compliance both for the
Company and its other domestic as well as
foreign subsidiaries.
■ Review any related party transactions.
The Audit Committee of Dr. Reddy’s has
been vested with all the powers necessary
to discharge these responsibilities.
For 2001-02, Dr. Reddy’s Audit
Committee meetings were typically held a
day before the board meetings. At the very
least, the subject matter of these meetings
took up half a day. For the meetings that
reviewed half-yearly and annual results
along with detailed internal audit reports,
the proceedings took up the better part of a
full working day.
The very least that was discussed in every
Audit Committee meeting were:
a) Internal audit and control matters, including
action-taken reports.
b) The status of SAP and other IT systems that
assist financial and operational reporting, and
how these could be further optimised to
DR. REDDY’S LABORATORIES LTD. | CORPORATE GOVERNANCE | ANNUAL REPORT 2001-2002