DRIVIN G ROWTH - Dr. Reddy's

MANAGEMENT DISCUSSION AND
ANALYSIS
THIS ANNUAL REPORT has a detailed
chapter on Management Discussion and
Analysis.
DISCLOSURES BY MANAGEMENT
All details relating to financial and
commercial transactions where Directors
may have a potential interest are provided
to the Board, and the interested Directors
neither participate in the discussion, nor do
they vote on such matters.
As required by the Accounting Standards
AS-18, the details of related party
transactions are given in schedule ‘M’ notes
on Balance Sheet and Profit and Loss
Account.
external and
internal audit systems
DR. REDDY’S HAS BOTH external
and internal audit systems in place.
Auditors have access to all records and
information about the Company. The Board
and the management utilise, in a timely and
effective manner, the findings of external
and internal Auditors and takes corrective
measures in the areas of concern identified
by Auditors. The Board recognises the work
of the Auditors as an independent check on
the information received from the
management on the operations and
performance of the Company.
EXTERNAL AUDIT
FOR 2001-02, DR. REDDY’S
appointed, with the approval of the
shareholders, two independent external
Auditors — A Ramachandra Rao & Co. and
Bharat S Raut & Co. — to audit the
operations performed by the management.
They were designated as Joint Statutory
Auditors for the purpose of audit of the
financial statement prepared under the
Indian GAAP. The Company had also
appointed KPMG as independent Auditors
for the purpose of issuing opinion on the
financials prepared under the US GAAP.
While auditing the operations of the
Company, the external Auditors recorded
their observations and findings with the
management. These were then discussed
among the management, Audit Committee
members and the Auditors at Audit
Committee meetings. Corrective actions
suggested by the Auditors and the Audit
Committee were implemented or taken up
for implementation by the management.
DR. REDDY’S LABORATORIES LTD. | CORPORATE GOVERNANCE | ANNUAL REPORT 2001-2002
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