Dr. Reddy's has robust internal systems and processes in place for the smooth conduct of our businesses, regularly checked by both external and internal audit systems that have access to all records and information about our company. The board and the management use the information provided by the auditors to take corrective action in any identified areas of improvement.

Our company has appointed BSR & Co. and KPMG as independent auditors for financials under Indian GAAP (Generally Accepted Accounting Principles) and the US GAAP respectively. We also maintain a system of internal controls designed to provide reasonable assurance regarding the effectiveness and efficiency of operations, the adequacy of safeguards for assets, the reliability of financial controls, and compliance with applicable laws and regulations.

In keeping with our reputation as a forward-looking company, we saw the need to comply with Sec 404 of the Sarbanes-Oxley Act, 2002 as an opportunity to evaluate and further strengthen the control environment across our organization. Thus, Dr. Reddy’s was the first manufacturing company in India, and one of the first in Asia, to be Sarbanes-Oxley certified on June 1 2006, well in advance of the March 2007 deadline.