Dr Reddy's Faces Penalty in Kazakhstan

Dr Reddy's Laboratories faces a penalty from Kazakhstan's revenue authority amounting to Rs 28.7 lakh due to disallowed expense claims for 2021. The penalty reportedly will not impact the company's financials or operations significantly, according to the drug firm located in Hyderabad.

The Kazakhstan revenue authority has levied a penalty amounting to Rs 28.7 lakh on Dr Reddy's Laboratories' subsidiary. The penalty comes from the Department of State Revenue, Bostandyk district of Almaty, Kazakhstan, following disallowance of certain expense claims for the 2021 calendar year, according to Dr Reddy's Laboratories.

In its regulatory filing, the company stated that the order levied a penalty of KZT 17,597,212 (Rs 2.87 million). Despite the financial setback, the Hyderabad-based pharmaceutical company assured stakeholders that there would be no material impact on its financials, operations, or other activities.

This development is part of the ongoing financial assessments and audits that multinational companies often navigate in different regions. Dr Reddy's, being a global player, deals with various regulatory frameworks, and this recent order is a reflection of the complexities involved.

(With inputs from agencies.)