Good Health Can’t Wait.

Statutory Reports • Management Discussion and Analysis Annual Report 2014 - 15
Company’s debt to equity position was at
0.39 compared to 0.49 last year. The net
debt to equity position was at 0.03 versus
0.12 last year. Table 5 gives the data.
IGAAP STANDALONE
PROFIT AND LOSS
Table 6 gives the Company’s IGAAP
standalone profit and loss for FY2015
versus FY2014.
ENTERPRISE-WIDE RISK
MANAGEMENT (ERM)
Dr. Reddy’s ERM function operates with
the following objectives:
Proactively identify and highlight
risks to the right stakeholders;
Facilitate discussions around risk
prioritization and mitigation;
Provide a framework to assess risk
capacity and appetite; develop
systems to warn when the appetite is
getting breached; and
Provide an analysis of residual risk.
The Company’s business units and
functions are the primary source for risk
identification. The ERM team also regularly
monitors external trends on liabilities as
well as risks reported by peers.
RISK IDENTIFICATION AND
MITIGATION AT THE BUSINESS UNIT
OR FUNCTION LEVEL
The ERM team focuses on identification
of key business, operational and strategic
risks, which is carried out through
structured interviews, surveys, on-call
discussions or incidents. The ERM team
collaborates with the Compliance, SOX
and Internal Audit t eams on compliance,
financial reporting and process aspects
for identifying and mitigating risks,
respectively. Mitigation is periodically
reviewed, and the progress on key
risks are discussed at the Company’s
management-level and Board-level
Risk Committees.
RISK AGGREGATION, PRIORITIZATION
AND MITIGATION AT THE
ORGANIZATIONAL LEVEL
Risks are aggregated at the unit/function
and organization level and categorized
by risk groups. The Company’s response
framework categorizes them into
TABLE 5
DEBT AND EQUITY POSITION
PARTICULARS
AS ON
31 MARCH 2015
AS ON
31 MARCH 2014
CHANGE
Total stockholders' equity 111,302 90,801 20,501
Long- term debt (current portion) 6,962 3,395 3,567
Long- term debt (non-current portion) 14,307 20,740 -6,433
Short term borrowings 21,857 20,607 1,250
Total debt 43,126 44,742 -1,616
TABLE 6 DR. REDDY’S IGAAP STANDALONE FINANCIALS
PARTICULARS FY2015 FY2014 CHANGE
Net sales/income from operations (Net of excise duty) 98,874 94,957 3,917
License fees and service Income 401 1,511 (1,110)
Other Income 3,063 2,327 736
Total Income 102,338 98,795 3,543
EXPENSES
a) Cost of materials consumed 22,484 21,918 566
b) Purchase of stock-in-trade 5,261 4,690 571
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade (289) (1,706) 1,417
d) Conversion Charges 924 785 139
e) Employee benefits expense 14,909 14,199 710
f) Other expenditure 32,910 29,777 3,133
g) Depreciation and amortization 4,902 3,805 1,097
h) Finance Costs 638 783 (145)
Profit before tax 20,599 24,544 (3,945)
Tax Expense 3,805 5,216 (1,411)
Profit for the year 16,794 19,328 (2,534)
51