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Dr. Reddy's Laboratories Ltd. 8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500 034, Telangana, India. CIN : L85195TG1984PLC004507 Tel : +91 40 4900 2900 Fax : +91 40 4900 2999 Email : mail@drreddys.com www.drreddys.co

Key Takeaway: Dr. Reddy's Laboratories has disclosed that its subsidiary, Dr. Reddy's Mexico, received an order from the Superior Chamber of the Federal Court in Mexico regarding ongoing tax litigation. The court disallowed certain expenditures claimed for the calendar years 2006, 2007, and 2008. The company is currently assessing the implications of this order and may consider filing an appeal. The financial impact of the ruling remains uncertain as the order is in Spanish and requires comprehensive review.

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CONCERNS & RISKS

  • Dr. Reddy's Mexico has received a disallowance of certain expenditures claimed for prior calendar years.
  • The outcome of the tax litigation might lead to further legal actions or appeals, indicating ongoing legal challenges.
  • The financial implications of the court's order are unclear and are still under evaluation, suggesting uncertainty ahead.

Full Press Release Details

National Stock Exchange of India Ltd. (Scrip Code:
BSE Limited (Scrip Code: 500124)
New York Stock Exchange Inc. (Stock Code: RDY)
NSE IFSC Ltd. (Stock Code: DRREDDY)
under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
This is to inform that the wholly owned subsidiary
of the Company, namely, Industrias Qu micas Falcon de Mexico, S.A. de C.V., (referred to hereinafter as "Dr. Reddy's
Mexico") has received an Order from the Superior Chamber of the Federal Court in Administrative Justice, Mexico, pertaining to ongoing
tax litigation. The details as required under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015 are as hereunder:
Name of the authority : The Superior Chamber of the Federal Court in Administrative Justice, Mexico
Nature and details of the action(s) taken, initiated or order(s) passed : Dr. Reddy's Mexico, wholly owned subsidiary of Dr. Reddy's Laboratories Limited, has received an Order from the Superior Chamber of the Federal Court in Administrative Justice, Mexico pertaining to ongoing tax litigation.
Date of receipt of direction or order, including any ad-interim or interim orders, or any other communication from the authority : Order by electronic jurisdictional bulletin of the Federal Court of Administrative Justice dated February 26, 2024, was received by the Company on February 28, 2024.
Details of the violation(s)/ contravention(s) committed or alleged to be committed : The Superior Chamber of the Federal Court in Administrative Justice, Mexico, disallowed certain expenditure claimed by Dr. Reddy's Mexico for the Calander Years 2006, 2007 and 2008;
Impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible : The Company is evaluating the details of the order and its implications. The Order is in a foreign language (Spanish) and after evaluation of the said Order, the Company will update implication and monetary impact, if any
The Company will evaluate filing necessary appeal
with the appellate authority in this regard.
This is for your information and records.
For Dr. Reddy's Laboratories Limited
Company Secretary, Compliance Officer & Head-CSR

Frequently Asked Questions

What recent order did Dr. Reddy's Mexico receive?

Dr. Reddy's Mexico received an order from Mexico's Federal Court regarding ongoing tax litigation.

When was the order from the Federal Court received?

The order was received on February 28, 2024, with a date of issuance on February 26, 2024.

What years are affected by the court's ruling?

The ruling disallowed expenditures claimed for the calendar years 2006, 2007, and 2008.

What is the next step for Dr. Reddy's Laboratories?

The Company is assessing the order and may file an appeal with the appellate authority.

Is the order available in English?

The order is in Spanish, and the Company will provide updates after evaluation.

Last updated: Feb 28, 2024