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RDY Neutral Sentiment Score: 60/100

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 LLC, a wholly owned subsidiary of Dr. Reddy's in Ukraine, has received a penalty of EUR 280 from the State Tax Service of Ukraine for a violation related to currency operations law. The penalty was imposed due to an 8-day delay in the receipt of goods, for which an advance payment was made to non-resident entities. Despite this penalty, the company stated that there is no material impact on its financials or operations.

Market Sentiment Analysis

POSITIVE FACTORS

  • Dr. Reddy's subsidiary in Ukraine received an order, indicating operational activity.
  • The company reports no material impact on financials from the penalty.

CONCERNS & RISKS

  • A penalty of EUR 280 was levied due to a violation of local currency operations law.
  • There was an 8-day delay in the receipt of goods, which raised regulatory concerns.

Full Press Release Details

National Stock Exchange of India Ltd. (Scrip Code: DRREDDY-EQ)
BSE Limited (Scrip Code: 500124)
New York Stock Exchange Inc. (Stock Code: RDY)
NSE IFSC Ltd (Stock Code: DRREDDY)
This is to inform that our step-down wholly owned
subsidiary Dr. Reddy's Laboratories LLC, Ukraine has received an order from State Tax Service of Ukraine. The details as required
under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 are as hereunder:
Name of the authority State Tax Service of Ukraine
Nature and details of the action(s) taken, initiated or order(s) passed Violation of Part 3 of Article 13 of Law No. 2473-VIII dated June 21, 2018 "On Currency and Currency Operations", for delay in receipt of goods by 8 days as stipulated by the said legislation, for which advance payment was made to non-resident entities. Accordingly, a penalty of EUR 280 (~INR 24 K) was levied by the State Tax Service of Ukraine.
Date of receipt of direction or order, including any ad-interim or interim orders, or any other communication from the authority Date of receipt of order: October 29, 2024. The delay in disclosure is due to the delay in receipt of information from the subsidiary Dr. Reddy's Laboratories LLC, Ukraine.
Details of the violation(s)/ contravention(s) committed or alleged to be committed Violation of Part 3 of Article 13 of Law No. 2473-VIII dated June 21, 2018 "On Currency and Currency Operations", for delay in receipt of goods by 8 days as stipulated by the said legislation, for which advance payment was made to non-resident entities.
Impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible The above order levies a penalty of EUR 280 (~INR 24 K). Based on our evaluation, there is no material impact on the financials, operations, or other activities of the Company.
This is for your information and record.
For Dr. Reddy's Laboratories Limited
Company Secretary, Compliance Officer and Head-CSR

Frequently Asked Questions

What stock exchanges is Dr. Reddy's listed on?

Dr. Reddy's is listed on NSE, BSE, NYSE, and NSE IFSC.

What penalty did Dr. Reddy's Ukraine subsidiary receive?

Dr. Reddy's Ukraine subsidiary was fined EUR 280 for a delivery delay.

What caused the penalty in Ukraine?

The penalty was due to an 8-day delay in receiving goods as required by law.

How does the penalty affect Dr. Reddy's finances?

The penalty of EUR 280 has no material impact on Dr. Reddy's financials.

When was the order from Ukraine received?

The order from the State Tax Service of Ukraine was received on October 29, 2024.

Last updated: Dec 6, 2024