Dr Reddys Laboratories Ltd 6-K, filed Sep 19, 2023
Dr Reddys Laboratories Ltd (RDY)
About this 6-K
Dr Reddys Laboratories Ltd filed this 6-K on September 19, 2023.
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
September, 2023
Commission File Number 1-15182
DR. REDDY’S LABORATORIES LIMITED
(Translation of registrant’s name into English)
8-2-337, Road No. 3, Banjara Hills
Hyderabad, Telangana 500 034, India
+91-40-49002900
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ______
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ______
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ☐ No ☒
If “Yes” is marked, indicate below the file number assigned to registrant in connection with Rule 12g3-2(b): 82-________.
EXHIBITS
| Exhibit Number | Description of Exhibits | |
| 99.1 | Intimation dated September 19, 2023 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
DR. REDDY’S LABORATORIES LIMITED (Registrant) | |||||
| Date: September 19, 2023 | By: | /s/ K Randhir Singh | |||
| Name: | K Randhir Singh | ||||
| Title: | Company Secretary | ||||
Exhibit 99.1
 |
Dr. Reddy’s Laboratores 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.com | |
September 19, 2023
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)
Dear Sirs,
Sub: Disclosure of event or information of the Company
Ref: Disclosure pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, read with SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, please find annexed details of event or information in the Annexure enclosed.
This is for your information.
Thanking you.
Yours faithfully,
For Dr. Reddy’s Laboratories Limited
K Randhir Singh
Company Secretary, Compliance Officer and Head-CSR
Encl: as above
Annexure
Details of continuing event or information with respect to pending litigations pursuant to the SEBI (Listing Obligations and Disclosure Requirements) (Second Amendment) Regulations, 2023
The Company has considered the materiality for the purposes of this reporting in accordance with Regulation 30(4) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015.
The Company is involved in disputes, lawsuits, claims, governmental and/or regulatory inspections, inquiries, investigations, and proceedings, including patent, tax and commercial matters that arise from time to time in the ordinary course of business (collectively, “Legal Proceedings”).
Details of Legal Proceedings in relation to direct tax are provided at Note No. 2.30 (g), and details of other Legal Proceedings are provided at Note No. 2.33 of the consolidated financial statements as provided in the Integrated Annual Report of FY2023. The Company classifies such Legal Proceedings into three categories i.e. Probable, Possible and Remote (“PPR Analysis”).
The Company accounts for a liability for any disputes where a potential loss impact is probable and capable of being estimated. Liabilities that are considered possible, but not probable of crystallising, are considered as contingent liabilities and an appropriate disclosure is made in the financial statements but the same is not recognised as liability in its accounts. For a dispute where a potential loss impact is remote, the same is neither provided for as a liability nor is disclosed as contingent liability.
Accordingly, as per PPR Analysis:
A. Direct Tax cases: the Company is disclosing Legal Proceedings on account of disallowances by the Income Tax authorities resulting into tax demand on the Company during the tax assessments. These Legal Proceedings relate to different years and are pending at various appellate forums such as Commissioner of Income Tax (Appeals), Income Tax Appellate Tribunal & High Court.
The following disclosure is being made in relation to the tax related Legal Proceedings after taking into consideration materiality threshold in accordance with Regulation 30(4) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015.
| Nature of dues | Particulars |
Amount as on June 30, 2023 (Tax Rs. Millions) |
| Income Tax | Cases decided in the Company’s favor by appellate authorities and for which the department has filed or expected to file further appeals | 1,210 |
| Cases pertaining to issues decided in favor of the Company for earlier years’ by appellate authorities but demand raised for a similar issue for subsequent years by tax authorities and are pending before appellate authorities | 1,003 | |
| Total | 2,213 |
B. Legal Cases (other than direct tax as covered in A above): Most of the Legal Proceedings involve complex legal issues. Often, these issues are subject to uncertainties and therefore the probability of a loss, if any, being sustained and an estimate of the amount of any loss is often difficult to ascertain. Consequently, for a majority of these Legal Proceedings, it is not possible to make a reasonable estimate of the expected financial impact, if any, that will result from ultimate resolution of these proceedings. This is due to a number of factors, including: the stage of the proceedings (in many cases trial dates have not been set) and the overall length and extent of pre-trial discovery; the entitlement of the parties to an action to appeal a decision; clarity as to theories of liability; damages and governing law; uncertainties in timing of litigation; and the possible need for further legal proceedings to establish the appropriate amount of damages, if any. In these cases, the Company, based on internal and external legal advice, discloses information with respect to the nature and facts of the case.
The Company also believes that disclosure of the amount sought by plaintiffs, if that is known, would not be meaningful with respect to these Legal Proceedings due to various factors as stated in above para. Although there can be no assurance regarding the outcome of any of the Legal Proceedings, the Company does not expect them to have a material adverse impact on its financial statements or cashflows, as it believes that the likelihood of loss in excess of amounts accrued (if any) is not probable. However, if one or more of such Legal Proceedings were to result in adverse outcomes against the Company, such outcomes may be material to its financial statements or cashflows. In such an event the Company shall make necessary disclosure as required under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015.
