SUSTAINABILITY REPORT 2013-15

People Overview Self Managed Teams Mechanisation Safety Overview The Parivartan     Journey Progress on     Roadmap Incident Statistics Robust Governance Standardised     Processes Enhanced Awareness Capability Building Safety Infrastructure Safety Audits Quality Overview Top-down    Accountability Quality by Design Quality Culture     Transformation Quality Assurance Quality     Best Practices All Time Audit     Readiness Availability Overview Strategic Sourcing Risk Management Product    Rationalisation Success stories Environment Overview Roadmap Energy Management Emissions Water Waste Case Study KPIs Community Overview Focus Areas Education Livelihoods Healthcare Infrastructure     Initiatives Creating Change     Makers Productivity Overview Productivity Streams Case Study PACE Update Initiatives Engineering Excellence Overview Digitisation Automation Mechanisation Lean Manufacturing Capital Equipment Strategy Predictive Maintenance Continuous Improvement Overview Continuous     Improvement     at Work Best Practices Annexures GRI Index Acronyms Assurance Statement   Summary Report     CORPORATE GOVERNANCE GOVERNANCE MECHANISM  Internal Control System Our day-to-day functioning is directed by a robust internal control system which has been designed to safeguard our tangible and intangible assets, ensure that all transactions are properly authorised, and provide significant assurance of the integrity, objectivity and reliability of financial information at a reasonable cost.       Audit and Management Assurance The Board recognises the work of the auditors and other management assurance functions as an independent check on the information received from the management on the operations, compliance and financial reporting of the Company. The Board and the management periodically review their findings and recommendations, and take corrective actions, whenever necessary.   External Assurance BSR & Co. Chartered Accountants and KPMG India are independent auditors for financials under Indian GAAP (Generally Accepted Accounting Principles) and the International Financial Reporting Standards (IFRS) respectively.       Compliance Review Dr. Reddy's has a dedicated team under an identified Chief Compliance Officer for overseeing compliance activities, and a defined framework to review and monitor compliance with all laws applicable to the Company. A Management Compliance Committee was introduced this year to provide strategic guidance and direction on dealing with emerging risks to the Compliance Team. A compliance dashboard is periodically shared with the Board and discussions are scheduled in the quarterly Board Audit Committee and Risk Management Committee meetings.   Corruption and Anticompetitive Behaviour At Dr Reddy's, our CoBE policy strictly discourages corrupt practices and anticompetitive behaviour. We undertake reasonable measures to ensure that all employees act in accordance with all applicable competition laws and regulations.   We have created awareness of our whistle-blower policies and procedures. Issues concerning corruption, if any, are looked into and appropriately addressed.   We do not permit the giving or receiving of gifts, hospitality or expenses by employees, either directly or indirectly, as an inducement from or to parties conducting or seeking to conduct business with Dr. Reddy's.   Our compliance and fraud risk management policies require risk analysis to include elements of fraud and corruption on a periodic basis.   We prescribe free competition and encourage our employees to conduct operations in accordance with all applicable competition laws and regulations that prohibit monopolisation.   Avoidance of Conflict of Interest A Conflict of Interest policy has been rolled out globally and is applicable to all our employees. Additionally, our senior management, employees at senior director level and above, as well as certain identified key employees, make annual disclosures to the Board relating to all material, financial and commercial transactions where they may have personal interest, if any, which may have a potential conflict with the interest of the Company.   Transactions with key managerial personnel have been disclosed in the financials sections of Annual Report 2013-14 & 2014-15 under Related Party Transactions.