Good Health Can’t Wait.

Good Health Can’t Wait.
Dr. Reddy’s Laboratories Limited
NAME
DESIGNATION
RATIO OF
REMUNERATION OF
EACH DIRECTOR
TO THE MEDIAN
REMUNERATION OF
EMPLOYEES
% INCREASE IN
REMUNERATION
DURING FY2015
COMPARISON OF THE REMUNERATION OF
EACH KMPs (1) AGAINST THE PERFORMANCE
OF THE COMPANY
Dr. Bruce L A Carter Independent Director 28 -2%
Dr. Ashok S Ganguly Independent Director 26 -4%
Mr. Sridar Iyengar Independent Director 29 -2%
Mr. Saumen Chakraborty (3) Chief Financial Officer (CFO) NA -31% (4) Compared to FY2014, the revenue in FY2015
Mr. Sandeep Poddar (3) Company Secretary (CS) NA 15%
grew by 4% and EBITDA decreased by 10%
(1)
KMPs includes our Chairman, Co-Chairman & CEO, CFO and CS.
(2)
Includes commission, salary and perquisites.
(3)
Includes fixed pay, actual variable pay, gratuity, fuel & maintenance on actuals and does not include value of stock options.
(4)
Previous year amount included long term incentive, payable once in 4 years.
(ii) The median remuneration of employees increased by 0.5% in FY2015.
(iii) The number of permanent employees on the rolls of the Company as on 31 March 2015 is 19,857.
(iv) The average increase in remuneration paid to employees is 16% for FY2015 as compared to FY2014. Compared to FY2014, the
revenue in FY2015 grew by 4% and EBITDA decreased by 10%.
The remuneration philosophy of the Company is to provide market competitive compensation which drives a high
performance culture. Every year, the salary increases are based on benchmarking with similar profiled organisations and
market competitiveness. The variable component is paid out to an employee on the basis of performance of the Company, the
corresponding business unit or function and his/her own performance.
(v) The total remuneration of KMPs decreased by 3% while the revenue in FY2015 grew by 4% and EBITDA decreased by 10%.
(vi)
PARTICULARS 31 MARCH 2015 31 MARCH 2014
a) Market Capitalization ` 59,442 crores ` 43,614 crores
b) Price Earnings Ratio 26.9 20.3
c) The closing price of the Company’s equity shares on the NSE and BSE as on 31 March 2015 was ` 3,488.75 and ` 3,487.45 respectively. As on 31 March 2015, the
value of portfolio of an Indian investor who invested ` 1,000 in Company’s IPO in August, 1986 and ` 1,250 in rights issue in August, 1989 and held on to these till
date would have been ` 18.84 million (adjusted for bonuses and sub-division). This is excluding the value of dividend pay-outs and bonus debentures.
(vii) Average percentage increase in the salaries of employees other than KMPs for FY2015 was 16% as compared to FY2014. There
was a decrease of 3% in the total remuneration of KMPs for the same period.
(viii) Key parameters for variable component of remuneration availed by the directors: Each Executive Director is entitled to receive a
commission of up to 0.75% of the Company’s net profit (calculated under the Companies Act). The Nomination, Governance and
Compensation Committee recommends the commission payable to the Executive Directors after considering their achievements
on financial and non-financial metrics and other evaluation criteria fixed by the Committee.
Non-executive Directors are entitled to receive an overall maximum commission of up to 0.50% of the Company’s net profit
(calculated under the Companies Act). The commission payable to Non-executive Directors is determined on the basis of their
level of engagement and participation, time spent and their contribution in enhancing the Board’s effectiveness. The commission
is also determined by keeping in view the industry benchmarks.
(ix) None of the employees (who are not directors) receive remuneration in excess of the highest paid director.
(x) It is hereby affirmed that the remuneration paid during FY2015 is as per the remuneration policy of the Company.
K Satish Reddy
Chairman
98