annual report 2010 - ankur drugs › annualreport2009-10.pdf · ankur today is in the forefront of...

Dear Shareowners,

I am pleased to report that your Company continues to achieve new milestones in its journey towards growth and excellence. The Company ended the year 2009-10 by successfully achieving a total income of ` 1069.40 crores and a net profit after tax [PAT] of ̀ 86.18 crores, indeed a remarkable phenomenon in its own capacity.

Over the period of time, we have gained the expertise, acquired the know how and have installed state-of-art facilities to enhance our horizon of activities. For the forthcoming years, our focus is to achieve “Growth...

level next”

Ankur today is in the forefront of Contract Manufacturing for various dosage of pharmaceuticals formulations and is also manufacturing for leading national and multinational pharma companies. The newly setup world class production facilities at Baddi have been recognised and accredited by the pharma fraternity. During the year, the operations have been further consolidated. We have continued to work towards increasing the productivity and efficiency and to build and improve our exposure both domestically and internationally.

As against our initial estimation, the rate of growth of GDP has faired well at approximately 7.4% for the year 2009-2010. Even for the current year of 2010-2011, with the monsoon fairing well in most parts of India and the fear of hyper inflation no longer intimidating , the GDP growth can be expected in the range of about 8 to 8.5%.

Your Company has effectively incurred capex worth more than ̀ 700 Crores in the last five years. Our vision and mission of Growth...level next envisages enhanced utilisation of installed capacities. Your Company after

setting up state-of-art manufacturing facilities at Baddi is poised to commence supplies to the Regulated Markets and Direct Exports thereby expecting to boost the top and bottom line growth variables.

Before I conclude, I would like to assure our stakeholders of our steady and resolute commitment to create value for them.

We at Ankur, value the confidence that our stake holders have reposed in us and earnestly look forward to your continued support and encouragement in the journey of Growth…level next .

I also take this opportunity to thank the Board for their invaluable guidance and support and the employees of Ankur for their undaunted commitment, incredible dedication and valuable contribution.

Warm regards,

Purnandu JainChairman and Managing DirectorSeptember 01, 2010

CHAIRMAN'S MESSAGE

“The secret of success is consistency of purpose”

- Benjamin Disreali

Board of DirectorsMr. Purnandu Jain

Chairman and Managing Director

Mr. Girraj Vijayvargiya Wholetime Executive Director

Mr. Dileep ShindeNon Executive Director - Independent

Dr. Clifton ZimmermannNon Executive Director - Independent

Registered Officeth

20 Floor, Lotus Business Park,Off. Andheri Link Road, Andheri [West], Mumbai - 400 053.Tel : +91-22-40682300Fax : +91-22-40682323Email : [email protected] : www.ankurdrugs.com

Himachal Unit IVillage Manakpur, P.O. Lodhimajra, Taluka - Nalagarh - 174 101District : Solan, Himachal Pradesh

Himachal Unit IIVillage Makhnu Majra, Taluka - Baddi - 173 205District : Solan, Himachal Pradesh

Daman UnitPlot No. 3 & 4, Survey No. 168,Dabhel Industrial Co-operative Society Ltd.,Village Dabhel - 396 210Nani Daman, Daman

M. G. Vashi & Co. Chartered Accountants

Auditors

Axis Bank Limited

Barclays Bank PLC

Cental Bank of India

Corporation Bank

ICICI Bank Limited

IDBI Bank Limited

Indian Overseas Bank

Punjab National Bank

Punjab and Sind Bank

State Bank of India

State Bank of Patiala

Syndicate Bank

Union Bank of India

Working Capital Bankers

Ajel Infotech LimitedUnit : Ankur Drugs and Pharma Limited

106, Oshiwara Link Plaza Commercial Complex,nd2 Floor, New Link Road, Oshiwara,

Jogeshwari [West], Mumbai - 400 102.Tel : +91-22-26303348, 26303342

Fax : +91-22-26349264Email : [email protected]

Website : www.ajel.in

Registrar & Share Transfer Agent

Mr. S. C. Rane

Company SecretaryManufacturing Units

Notice 1

Directors' Report 4

Management Discussion & Analysis 9

Corporate Governance Report 11

Auditors' Report 21

Annexure to Auditors' Report 22

Balance Sheet 24

Profit & Loss Account 25

Cashflow Statement 26

Auditors' Certificate 27

Schedules to Accounts 1 to 17 28

Balance Sheet Abstract Part VI 44

CONTENTS Page

SIXTEENTH ANNUAL GENERAL MEETING

Day : Thursday : : Date : September 30, 2010 Time : 11.30 a.m.: :

Venue : Garden Court, Veera Desai Road, Andheri [West], Mumbai - 400 053.

ANKURDRUGS AND PHARMA LTD

NOTICE is hereby given that the Sixteenth Annual General Meeting of the Members of ANKUR DRUGS AND PHARMA LIMITED will be held on Thursday, September 30, 2010 at Garden Court, Veera Desai Road, Andheri [West], Mumbai 400 053, at 11.30 a.m.to transact the following business :

ORDINARY BUSINESS :

1. To receive, consider and adopt the Audited Balance Sheet as at March 31, 2010 and the Profit & Loss Account of the Company for the year ended on that date along with the Reports of Directors and Auditors thereon.

2. To declare Dividend on the Equity Shares for the Financial Year 2009-10.

3. To appoint a Director in place of Dr. Clifton Zimmermann, who retires by rotation, and being eligible, offers himself for re-appointment.

4. To appoint the Auditors and to fix their remuneration. In this connection, to consider and, if thought fit, to pass with or without modification(s), the following Resolution as an Ordinary Resolution :

“RESOLVED THAT pursuant to the provisions of Section 224 and all other applicable provisions, if any, of the Companies Act, 1956,M. G. Vashi & Co., Chartered Accountants, having Firm Registration No. 128577W registered with ICAI, retiring Auditors, be and are hereby appointed as Statutory Auditors of the Company, to hold office from the conclusion of this Annual General Meeting until the conclusion of the next Annual General Meeting of the Company, at such remuneration as may be mutually agreed between the Board of Directors of the Company and the Auditors, in addition to re-imbursement of service tax and out-of-pocket expenses incurred by them for carrying out the Audit.”

SPECIAL BUSINESS :

5. To consider and if thought fit, to pass with or without modification[s], the following resolution as an Ordinary Resolution :

“RESOLVED THAT the Consent of the Company be and is hereby accorded to the Board of Directors pursuant to Section 293[1][d] of the Companies Act, 1956 to borrow monies from time to time, either by way of rupee loans or by way of foreign currency loans or by way of issue of debentures or by issue of any other instruments and either from Company's Bankers or from any other Bank/Financial Institution or from any other Lending Institution or Bodies Corporate or other persons, on such terms and conditions and covenants stipulated and as may be considered appropriate by the Board of Directors, not exceeding in the aggregate at any point of time ` 1250 crores [Rupees One Thousand Two Hundred Fifty Crores] notwithstanding that the monies to be borrowed together with the monies already borrowed by the Company [apart from temporary loans obtained from the Company's Bankers in the ordinary course of business] exceeds the aggregate of the paid-up Capital of the Company and its free reserves, that is to say, reserves not set apart for any specific purposes.”

“RESOLVED FURTHER THAT for the purpose of giving effect to the resolution, the Board of Directors of the Company be and is hereby authorized to finalize and execute all documents/deeds/agreements etc. as may be required, to take all necessary steps and to do all acts, matters and things, as it may in its absolute discretion deem necessary, expedient, proper and desirable.”

Registered Office : For Ankur Drugs and Pharma Ltd20th Floor, Lotus Business Park, By Order of the Board of DirectorsOff. Andheri Link Road,Andheri [West], Mumbai - 400 053.

S. C. RaneDate : September 01, 2010 Company Secretary

NOTICE TO MEMBERS

GROWTH.. LEVEL NEXT 1



NOTES :

1. The Relative Explanatory Statements pursuant to Section 173[2] of the Companies Act, 1956, in respect of the business under Item No. 5 set out above and the relevant details in respect of Item No. 3 as set out above pursuant to Clause 49 of the Listing Agreement with the Stock Exchange(s) are annexed below.

2. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND ON A POLL, VOTE INSTEAD OF HIMSELF/HERSELF AND A PROXY NEED NOT BE A MEMBER. THE INSTRUMENT OF PROXY IN ORDER TO BE EFFECTIVE MUST BE DEPOSITED AT THE REGISTERED OFFICE OF THE COMPANY DULY COMPLETED AND SIGNED NOT LESS THAN FORTY-EIGHT HOURS BEFORE THE COMMENCEMENT OF THE ANNUAL GENERAL MEETING.

3. The Register of Members and the Share Transfer Books of the Company will remain closed from Thursday, September 23, 2010 to Thursday, September 30, 2010 [both days inclusive] for the purpose of the Annual General Meeting.

4. Members/ Proxies should bring the Attendance Slips duly filled in, for attending the Meeting alongwith the Annual Report.

5. Corporate Members intending to send their authorised representative/s to attend the meeting are requested to send a certified copy of the Board Resolution authorising their representative/s to attend and vote at the meeting.

6. Queries on accounts, if any, should reach the Registered Office of the Company at least Seven days prior to the date of the Meeting so that the required information is made available at the Meeting.

7. As members are aware that Equity Shares of the Company are traded in electronic form only. Members who hold shares in physical form may dematerialise the same. ISIN allotted to the Company for this purpose is INE238D01012.

8. Shareholders are requested to immediately notify any change in their address or bank mandate to the depository participants with whom they are maintaining their demat account or to the Company's Registrar and Transfer Agents, namely, Ajel Infotech LimitedUnit : Ankur Drugs And Pharma Limited, 106, Oshiwara Link Plaza Commercial Complex, 2nd Floor, New Link Road, Oshiwara, Jogeshwari [West], Mumbai 400 102 if shares are held in physical form.

9. Payment of Dividend as recommended by the Board of Directors, if approved at the Meeting, will be made on or after September 30, 2010 to those Members, whose names appear on the Register of Members as on September 22, 2010.

10. Brief resume and other particulars of Dr. Clifton Zimmermann as required under para IV of Clause 49 of the Listing Agreement is annexed to the notice

ANKUR DRUGS AND PHARMA LIMITED - SIXTEENTH ANNUAL GENERAL MEETING 2009-20102

DETAILS OF DIRECTOR SEEKING RE-APPOINTMENT AT THE SIXTEENTH ANNUAL GENERAL MEETING.

[In pursuance of Clause 49 of the Listing Agreement]

Item No. 3

Name of the Director Dr. Clifton Zimmermann

Date of Birth July 13, 1950

Date of Appointment April 28, 2007

Qualification Doctorate in Pharmacy

Expertise in specific Functional Areas Pharma Research

Directorship held in other public companies NIL

Chairmanship / Membership of Committeesacross other public companies, if any. NIL

Relationship between Directors inter-se NIL

Number of Equity Shares held NIL



ANNEXURE TO NOTICE

As required by section 173[2] of the Companies Act, 1956, the following Explanatory Statement sets out all material facts relating to business mentioned under Item no 5 of the accompanying notice dated September 1, 2010.

Item No. 5

Section 293[1][d] of the Companies Act, 1956 requires the consent of the shareholders in General Meeting for authorizing the Board of Directors to borrow money from time to time, for the purposes of the Company, where money to be borrowed together with the money already borrowed by the Company [apart from temporary loans/facilities obtained from the Company's Bankers in the ordinary course of Business] will exceed the paid-up Capital of the Company and its free reserves, that is to say, reserves not set apart for any specific purposes.

The members in the Fourteenth Annual General Meeting of the Company held on September 27, 2008 had authorised the Board of Directors to borrow money up to a sum of ` 1000 crores. [Rupees One Thousand Crores]. Keeping in view the capital expenditure requirements and extensive growth plans of the Company, the existing borrowing powers of the Board needs to be enhanced. Therefore approval of the members is sought enabling the Board of Directors to borrow amount up to ` 1250 crores [Rupees One Thousand Two Hundred Fifty Crores]

None of the Directors of the Company is in anyway, concerned or interested in the proposed resolution.

Your Directors recommend the resolution for your approval.


Dear Shareholders,Your Directors are pleased to present the Sixteenth Annual Report on the business and operations together with the Audited Statement Accounts of the Company for the year ended March 31, 2010.

FINANCIAL RESULTS

For the Year ended For the Year endedMarch 31, 2010 March 31, 2009

Total Income 1069,39.74 968,25.65

Earnings before Depreciation, Interest and Tax 214,18.21 182,17.65

Less :

Depreciation 26,63.98 20,66.68

Interest and Finance Charges 80,74.98 54,10.32

Exchange Difference on Foreign Currency Loans [15,43.06] 26,13.06

Provision for Premium on Redemption of FCCBs 3,43.72 20,93.89

Provision for Diminution in value of Investments / [Write Back of Excess Provision] [1,21.43] 1,42.06

PROFIT BEFORE TAX : 120,00.02 58,91.64

Less :

Provision for Current Year Tax 17,05.36 7,40.75

Provision for Deferred Tax 12,01.39 14,39.16

Prior Period Adjustments 4,75.51 [0.91]

PROFIT AFTER TAX : 86,17.76 37,12.64

Surplus brought forward from Previous Year 101,57.38 89,45.30

Amount Available for Appropriation Total 187,75.14 126,57.94

APPROPRIATIONS :

Proposed Dividend on Equity Shares 4,35.19 4,27.85

Tax on Proposed Corporate Dividend 78.00 72.71

Transfer to General Reserve 50,00.00 20,00.00

Surplus carried over to Next Year 132,61.95 101,57.38

Total 187,75.14 126,57.94

OPERATIONS

The Company concluded the year 2009-10 with an impressive all time high performance. The Company has emerged stronger with higher sales and profitability. Sales / income from operations [Net] increased to an all time high of ` 1069,39.74 Lacs compared to ` 968,25.65 Lacs in the previous year registering a growth of 10.45%. Earning before depreciation, interest and tax is ` 214,18.21 Lacs as compared to ̀ 182,17.65 Lacs in the previous year- an improvement of 17.57% over the previous year. The profit after tax is ̀ 86,17.76 Lacs as compared to profit of ̀ 37,12.64 Lacs in the previous year. The increase in profitability was partially on account of write back of provisions of ̀ 1543.06 Lacs on exchange difference as against provision of ̀ 2613.06 Lacs in corresponding previous year as also on account of higher

[ ` in Lacs]

Particulars

DIRECTORS' REPORT


provisions for premium on redemption of FCCBs in the previous year. The Earning Per Share [EPS] improved to ̀ 44.56 per Equity Share in the year 2009-2010 as compared to EPS of ̀ 19.94 per Equity Share in the previous year.

The Company has embarked upon Capital Expenditure for the two units in the state of Himachal Pradesh to take benefit of the Industrial Package available in the state. The Industrial Package was culminating on March 31, 2010 but it was expected to be extended for a further period of at least one year. However when no positive signals were available till January 2010 the Company having made substantial investments had to expedite the balance spending before March 31, 2010 to take advantage of the various benefits. Since no term loans were tied up for the same, the Company had to commit internal accruals and also part of the short term funds to complete the Capital Expenditure. In view of the above development, the Company has experienced some liquidity crunch which is expected to be eased in the current year.

DIVIDEND

The Board of Directors are pleased to recommend a dividend of ` 2.25 per Equity Share of ` 10 each [22.5%] for the year ended March 31, 2010 subject to approval of shareholders in Annual General Meeting . The dividend if approved, at the Annual General Meeting will be tax free in the hands of the shareholders. The payment of dividend will entail a cash outflow of ` 513.19 Lacs including dividend distribution tax of ̀ 78.00 Lacs .

RESERVES

The reserves at the end of the year were ̀ 337,94.03 Lacs up from ̀ 243,01.36 Lacs at the beginning of the year.

MACRO ECONOMIC INDUSTRY STRUCTURE AND DEVELOPMENT

The fiscal year 2009-10 began on a difficult note. The growth rate of the gross domestic product (GDP) in 2008-09 was 6.7%. Yet, over the span of the year, the economy posted a remarkable recovery, not only in terms of overall growth figures but, more importantly, in terms of certain fundamentals, which justify optimism for the Indian economy in the medium to long term. The real turnaround came in the second quarter of 2009-10 when the economy grew by 7.9 %. Allowing for factors beyond the reach of domestic policymakers, such as the performance of the monsoon and rate of recovery of the global economy, the Indian GDP can be expected to grow around 8.5 [+/- 0.25 % ] with a full recovery, even breaching the 9 % mark in 2011-12.

OVERVIEW

During the year under review, on a quarter to quarter basis we have consolidated our operations by increasing production capacity of all the products that we manufacture. All the three manufacturing units of your Company have become more efficient and as a result of economies of scale, the average cost of production has started decreasing steadly . During the year under review, there has been addition to the Gross Block including Capital Work-in-Progress of ̀ 179,45.89 Lacs. The manufacturing units of your Company in Himachal Pradesh conform to international cGMP standards and comply with all the regulatory requirements. Your Company has been successful to tie-up with five major pharma companies out of which four are pharma MNC's for whom we have started manufacturing high value products on contract basis.

Your Company's top most priority is “safety first” and follows strict environmental norms to establish itself as a leader in its chosen field. Your Company has already reached the productivity level comparable to the best globally.

OUTLOOK

A stringent price control regime exists in developed markets and of late, there has been increased pressure from the US Federal government on Pharmaceutical Companies to bring down their drug prices. Not just that; with several patents expiring in a phased period and generics occupying the place of several patented drugs, large Companies face tremendous pressure on margins. The need to bring down the R&D expenditure is thus being felt acutely in developed markets.

Against this backdrop, more and more companies are outsourcing manufacturing to countries like India, which offer a slew of advantages. Apart from the relatively low development cost and skilled manpower, the easy availability of raw materials at competitive prices makes India attractive. The Indian pharmaceutical sector manufactures more than 400 bulk drugs belonging to several therapeutic segments. Bulk drug production recorded a CAGR of 20% over the last 10 years. On the export front, formulations account for as much as 50% of the total pharmaceutical exports from India. With several players in the fray and fiercely competitive market, it has been possible to produce pharma products in India at lower costs. Additionally, the capabilities are also growing. India has the unique distinction of having maximum number of US FDA approved plants outside US.

Your Company is a known name in the business of contract manufacturing of pharma formulations in various dosage forms. The


manufacturing facilities have now extended the scope of alliance with almost all pharma multinationals operating in India. Our contract manufacturing facility is cGMP Certified and can fulfill all contract manufacturing needs of our trade associates. Your Company is now fully geared to not only meet but also exceed our customers' expectations.

ALLOTMENT OF EQUITY SHARES

During the year under review, the Company has allotted 7,26,199 Equity Shares out of which [a] 4,00,000 Equity Share of ̀ 10 each at a premium of ̀ 165 per Share on May 12, 2009 on account of conversion of 4,00,000 Equity Share Warrants. [b] 3,26,199 Equity Shares of ` 10 each on November 13, 2009 on conversion of US $ 1 million FCCBs [1000 Bonds of US $ 1000 each] at a rate of ̀ 165 per share out of the balance of US $ 9 million FCCBs outstanding at the beginning of the year.

During the year out of the total 21,24,400 Equity Share Warrants allotted on September 5, 2007; 17,24,400 Equity Share Warrants were forfeited on May 12, 2009 on account of non-exercise of the right of conversion into Equity Shares, by the Equity Share Warrant holders and consequent non payment of the amount due on conversion by them as per the terms of issue of Equity Share Warrants.

LISTING OF SHARES

Your Company's Equity Shares continue to be listed on The Bombay Stock Exchange Limited and The National Stock Exchange of India Limited. The annual listing fee for the year 2010-11 has been duly paid to both the Stock Exchanges.

PUBLIC DEPOSITS

The Company has not accepted deposits from the public within the meaning of section 58A of the Companies Act, 1956 and as such no amount of principal or interest was outstanding on the date of the Balance Sheet.

DIRECTORS

In accordance with the provision of the Companies Act, 1956 and the Company's Articles of Association, Dr. Clifton Zimmermann, retires by rotation at the ensuing Annual General Meeting, and being eligible offers himself for re-appointment. His re-appointment forms part of the Notice of the Annual General Meeting and the resolution is recommended for your approval.

AUDITORS

M/s. M. G. Vashi & Co., Chartered Accountants, Firm Registration No. 128557W Statutory Auditors of the Company who retire at the forth coming Annual General Meeting are eligible for re-appointment and have expressed their willingness to accept office if re-appointed. The Company has received confirmation from them that their re-appointment, if made, would be within the limits prescribed under Section 224[1-B] of the Companies Act, 1956, and that they are not disqualified for such re-appointment within the meaning of section 226 of the said Act. Your directors' recommend their re-appointment.

INDUSTRIAL RELATIONS

The industrial relations continue to be cordial and harmonious at all the three manufacturing units of the Company.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The Management Discussion and Analysis Report as required under the listing agreement with The Bombay Stock Exchange Limited, Mumbai and The National Stock Exchange of India Limited, Mumbai is annexed as Annexure II forming part of this report.

CORPORATE GOVERNANCE

In terms of corporate governance disclosures as required by Clause 49 of the listing agreement, details are provided in this report as Annexure III. The certificate from the Company's Auditors confirming the compliance of conditions of Corporate Governance as stipulated in Clause 49 of the Listing Agreement with the Stock Exchanges is also annexed.

CODE OF BUSINESS CONDUCT

As prescribed by the listing guidelines of the Stock Exchanges, the Board has framed a "Code of Conduct" for the Board Members and Senior Management. The said code has been implemented. A declaration by the Chairman and Managing Director affirming compliance with the code of conduct is also annexed.

RELATED PARTY DISCLOSURES

The Company has made disclosures in compliance with the Accounting Standards on related party disclosures as required by Clause 32 of the listing agreement with the Stock Exchanges.


Name Age Designation Qualification Experience

DIRECTORS' RESPONSIBILITY STATEMENT

[As per amended Section 217[2AA] of the Companies Act, 1956]

The Board of Directors of the Company confirms:

1. that in the preparation of Annual Accounts, the applicable Accounting Standards have been followed and there has been no material departure;

2. that they have selected such Accounting Policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year under review and for the Profit and Loss account for that period;

3. that they have taken proper and sufficient care for the maintenance of adequate Accounting Records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and

4. that the attached Annual Accounts for the year ended March 31, 2010 are prepared on going concern basis.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

[A] Conservation of Energy and Technology Absorption

Particulars as required under Section 217 [1] [e] of the Companies Act, 1956 read with rule 2 of the Companies [Disclosure of Particulars in the Report of the Board of Directors] Rules, 1988 are given in the Annexure I to this report.

[B] Foreign Exchange Earned and Used [ ̀ in Lacs ]

Particulars 2009-2010 2008-2009

Earned 1.58 209.89

Used 4682.97 5485.69

PARTICULARS OF EMPLOYEES

[Information as per Section 217 [2A] [b] [II] read with Companies [Particulars of Employee's] Rule, 1975]

Date of Remuneration Previous Employment [Incl. P.F. & Other Employment

Benefits] ̀ in Lacs

Mr. Purnandu Jain 46 Chairman Aug. 23, 2003 188.16 B. Com, FCA 20 Years Selfyears & M D Employed

Mr. Girraj 41 Wholetime April 02, 2006 25.92 B. Com, FCA 16 Years SelfVijayvargiya Years Executive Employed

Director

Mr. Asraf Hossain 52 President - April 18, 2007 50.00 M. Pharm. 27 Years Montajat Vet. Pharma

years Technical Ltd., Dammam, Saudi Arabia

Mr. Jayesh Trivedi 52 Chief July 4, 2008 48.00 M. Pharm. 31 Years Ranbaxyyears Operating Laboratories

Officer Limited

Mr. Shantilal 55 General April 1, 2008 39.00 B. Com. 31 Years SelfJagetia Years Manager - Employed

Marketing

None of the other employees of the Company are in receipt of remuneration in excess of the limits prescribed under Section 217 [2A] of the Companies Act, 1956 read with Companies [Particulars of Employees] Rules, 1975.


ACKNOWLEDGEMENTS

The Directors take this opportunity to place on record their appreciation for the continued trust and confidence reposed in the Company by the bankers, business associates, regulatory authorities, customers, vendors, shareholders and employees at all levels.

Registered Office : For and on behalf of the Board of Directors20th Floor, Lotus Business Park,Off. Andheri Link Road,Andheri [West], Mumbai - 400 053.

Purnandu JainDate : September 01, 2010 Chairman and Managing Director


Information under Section 217 [1] [e] of the Companies Act, 1956 read with the Companies [Disclosure of Particulars in the Report of Board of Directors] Rules, 1988 and forming part of the Directors’ Report for the year ended March 31, 2010.

A] ENERGY CONSERVATION MEASURES TAKEN :

I] Power and Fuel Consumption Unit 2009-2010 2008-2009

a] Electricity

Consumed KWH 14179221 11638575

Total Amount ̀ 6,59,21,336 4,76,71,525

Average rate per unit ̀ /KWH 4.65 4.10

b] L.D.O. / Diesel

Consumed Ltrs 1659543 1390667

Total Amount ̀ 5,44,33,010 4,28,12,279

Average rate per unit ̀ /Ltr. 32.80 30.79

II] Consumption per unit of Production

Since the Company manufactures various types of pharmaceutical formulations, it is not practicable to give consumption per unit of production.

B] TECHNOLOGY ABSORPTION :

At the Quality Control Laboratory maintained by the Company, normal quality control activities are carried out with reference to quality of raw materials and finished goods.

The Company continues to run its Plant on Time Tested Standard Technology. However, no capital expenditure for technology has been incurred except for some routine and necessary revenue expenditure.

ANNEXURE - I FORMING PART OF THE DIRECTORS’ REPORT FOR THE YEAR ENDED MARCH 31, 2010



MANAGEMENT DISCUSSION AND ANALYSISWe submit herewith our Management Discussion and Analysis Report on the Company's business for the year ended March 31, 2010. We have attempted to include discussion on all specified matters to the extent relevant, or within limits that in our opinion are imposed by the Company's competitive position.

1. Pharmaceutical Industry - Global and Indian Structure

In 2009-2010 the world economy witnessed signs of recovery from one of the worst global recession. The world economy has witnessed growth less than 3% due to the spill over effect of the global financial crises of 2008-2009. The PwC report highlights about the huge potential of the Indian pharma industry being a front runner among the country's science based Industry with wide ranging capabilities in the field of Contract Manufacturing.

The Indian Pharma Market grew by 15.9% during 2009-10 despite of challenges of price control policy, compulsory licensing, patent oppositions, litigations, increasing regulations and compliances, fractured infrastructure development and menace of counterfeit drugs being rampantly manufactured.

The Indian Pharma Industry has been growing at an impressive CAGR in excess of 9 % in last five years and is expected to touch US $ 10 billion by 2011. According to the report by PwC, the Pharma Market is expected to rise to a value of approx. US $ 50 billion by 2020.

Company Overview

Incorporated in 1995, Ankur has been growing in the Contract Pharma Manufacturing space and has established itself amongst the top five manufacturers in India. It is listed on BSE & NSE and has over 1500 employees, including contract labour.

Ankur began commercial production at Daman [UT] in 1998 and thereafter started creating new manufacturing facilities in different areas at Baddi [HP] from the year 2005 onwards. This was the year of inflection. Ankur now is a major point of source for all pharmaceuticals and meet their contract manufacturing requirements with over ten years experience in manufacturing of pharmaceuticals in oral dosage forms. The Company is now poised for next level of growth with better capacity utilisation and becoming a sourcing point for Foreign Pharma MNC's. During the year Ankur has been vigilant to retrospect, to concentrate and to strengthen its competitive advantages. Having achieved an all time high record turnover of more than 1000 Crores, the Company has embarked upon the next level of growth to be executed over a period of next three to five years.

Recent Developments

The Company has received necessary approvals from all Regulatory Authorities in respect of Fentanyl Patches (25 mcg. & 50 mcg per hour) and the product is under stability. Barring unforeseen circumstances, a firm tie-up for marketing is expected in the third quarter of the current year.

Ondensatorn Oral Strips has cleared initial stability studies and application for manufacturing licence is pending with D.C.G.I. Necessary clearances are expected by October, 2010 and the product will be launched soon there after.

Technology transfer for Donepezil and Olenzapine Oral Strips have been received and these products have already been put under stability.

The Company has in-house developed mosquito repellant patch from Ayurvedic Formulations which has no toxic effects and is highly effective. Over period of years, it is expected to acquire a significant market share in this segment.

Ax-Flu Decongestion patches have been successfully developed and market launch is expected in the third quarter of the current year.

2. Segment-wise/Product-wise performance

The Company’s Business segment is manufacture of Pharmaceutical Formulations in the Form of Tablets, Capsules, Liquid Orals, Oral Powder, Dry Syrups, Ointments, Insta use suspension, FFS, Liquid Injectables and Dry Powder Injectables. The Net income during the year is ̀ 1069.34 Crs [` 968.26 Crs] in the previous year. A growth of 10.45% compared to previous year.

ANNEXURE - II FORMING PART OF THE DIRECTORS’ REPORT FOR THE YEAR ENDED MARCH 31, 2010

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FACILITIES


3 Opportunities

We have established a state-of-art, highly advanced and cost effective manufacturing facilities. We offer contract manufacturing facilities for most of the dosage forms. The Company has qualified and experienced technical team in the areas of manufacturing, quality control, quality assurance, product development for all range of products, which is capable of meeting demanding standards of potential customers.

3. Threats , Risks and Concerns

The Company’s products are largely intended for sale in the domestic market. The fluctuation in raw material prices, competition from the established and emerging players, foreign exchange fluctuation, increase in other input costs are major areas of risks and concerns. Apart from normal risks as applicable to an Industrial Undertaking, Indian Pharma Companies being covered under DPCO Regime are subject to frequent price reductions and revisions, which is again a cause of concern.

The Company has a proper framework for analysis of risk and concerns and continuously evaluates risk mitigations on an ongoing basis. The risk management system is working smoothly and will be evaluated for modification upon changes in size or nature of business.

The Company has adequate insurance coverage of all its assets. The compliance of safety norms and requirements as prescribed by different government agencies are duly complied with.

4. Outlook

The Contract Manufacturing Industry is becoming more and more competitive with several new players entering this arena. With the global recession and efforts on the part of global players to reduce costs, India has been identified as an outsourcing hub for manufacture of pharma products. With this development Indian Pharma Companies are poised for further growth, and with our huge capacities, the mission at Ankur is Growth.. Level Next.

5. Internal Control Systems

Your Company has adopted internal control systems commensurate with its size of operations. Through the Audit Committee, your Company ensures its implementation and compliance so that assets and business interests of your Company are adequately safeguarded.

6. Human Resources

Employees are the key to achievement of the Company's objectives and growth strategies. The Company provides employees with a fair and equitable work environment and support to develop their capabilities. With the added emphasis placed on ‘safe operation’, the training given to employees not only covers knowledge and technical skills but also lays stress on behavioural areas, like creating a ‘safety mindset’, and ‘attitude building’. A number of HR initiatives have been taken for the well being and continuous development of the employees. We are continuosly striving on bringing new talent and improving competencies of people in the organisation and building on the existing strength of the employees to transform the Company to be a key player in the Indian market. The relations between the employees and the Company continue to be cordial and healthy at all the three Manufacturing Units. As on March 31, 2010 the employee strength of your Company was over 1500 [including contract work force].

7. E R P

The problems of connectivity at Baddi, Himachal Pradesh are the main bottleneck in effective implementation of ERP-SAP system for which the Company is very much inclined, particularly in the areas of production planning and quality control. The Company is trying to resolve and overcome this problem so that the system can help the management to advantageously assimilate information and make more knowledge based and efficiency driven decisions.

8. Cautionary Statement

Statement in the Management Discussion and Analysis describing the Company's objectives, projections, expectations and estimates regarding future performance may be "forward looking statements' and are based on currently available information. The Management believes these to be true to the best of its knowledge at the time of preparation of this report. However, these statements are subject to certain future events and uncertainties, which may cause actual results to differ materially from those indicated in such statements.




CORPORATE GOVERNANCE REPORT

I. COMPANY’S PHILOSOPHY ON CORPORATE GOVERNANCE CODE

The Clause 49 of the Listing Agreement incorporates certain disclosure requirements related to Corporate Governance with the purpose of enhancing statutory compliances and disclosure related thereto, together with a thrust on the Company's value system.

Your Company has complied with all the Corporate Governance requirements stipulated under Clause 49 of the Listing Agreement. Your Company is committed to the consistent adherence to the said Corporate Governance Code to maintain a greater degree of responsibility and accountability.

II. BOARD OF DIRECTORS

1] COMPOSITION

The Board of Directors comprises of :

- One Chairman and Managing Director [Promoter]

- One Wholetime Executive Director [WED]

- Three Non-Executive Directors [NED-I]*

The Non Executive Directors are professionals with specialisation in their respective fields who bring in a wide range of skill and experience. The composition and attendance of Directors at Board Meetings and the AGM held in the year is as under:

Number of No of Commitee Number of Name of Director Category Other Memberships Board Meetings Last AGM

Directorships Chairman Member attended attended

Mr. Purnandu Jain Chairman &DIN No: 00203799 Managing Director - 1 1 14 Yes

[Promotor]

Mr. Girraj Vijayvargiya Wholetime Executive - 1 3 14 YesDIN No: 00815830 Director

Mr. Dileep Shinde Non-Executive / 1 2 1 14 YesDIN No: 00270687 Independent

Dr. Clifton Zimmermann Non-Executive / - - 1 - NoDIN No: 02321261 Independent

Mr. Lalit Agarwal * Non-Executive / 3 - 3 - NoDIN No: 01335107 Independent

* Mr. Lalit Agarwal's Resignation as a Director is effective from September 1, 2009

2] MEETINGS OF THE BOARD OF DIRECTORS

During the year 2009-10, the Board met Fourteen times on

April 18, 2009 April 29, 2009 May 12, 2009 June 02, 2009 June 15, 2009

July 06, 2009 July 30, 2009 August 12, 2009 September 01, 2009 October 12, 2009

October 28, 2009 November 13, 2009 December 12, 2009 January 19, 2010

At least one Board Meeting was held during every quarter.

ANNEXURE - III FORMING PART OF THE DIRECTORS’ REPORT FOR THE YEAR ENDED MARCH 31, 2010


III. THE BOARD COMMITTEES 1] AUDIT COMMITTEE

Terms of Reference :

The terms of reference covers the matters specified under Section 292A of the Companies Act, 1956 and Clause 49 of the Listing Agreement.

The Committee oversees, discusses and reviews inter alia the following matters :

a] Internal control system.

b] Compliance with Accounting Standards.

c] Related party transactions.

d] Recommending the appointment and removal of Statutory Auditor, fixation of Audit fee and also approval of payment for any other services.

e] Quarterly financial statements with a view to comply with all legal requirements.

f] Overseeing the Company’s financial reporting process and the disclosure of its financial information to ensure that the financial statement is correct, sufficient and credible.

Composition and Attendance of Audit Committee :

During the year 2009-10, the Audit committee met Five times on April 29, 2009; July 30, 2009; September 01, 2009; October 28, 2009; and January 19, 2010.

The Composition of and Attendance at the Audit committee meeting during the year 2009-2010 :

Name of the Director Category Meetings Attended

Mr. Dileep Shinde Non-Executive Director - Independent [Chairman] 5

Mr. Girraj Vijayvargiya Wholetime Executive Director [Member] 5

Mr. Clifton Zimmermann * Non-Executive Director - Independent [Member] -

Mr. Lalit Agarwal ** Non-Executive Director - Independent [Member] -

The Statutory Auditor and the Chairman and Managing Director are permanent invitees to this committee.

All members of the Audit Committee are financially literate and Two Members have Accounting Expertise.

At least one Audit Committee Meeting was held during every quarter.

Mr. S. C. Rane, Company Secretary is the Secretary of Audit Committee.

* Mr. Clifton Zimmermann was appointed as member of the Audit Committee w.e.f. September 1, 2009

** Mr. Lalit Agarwal's Resignation as a Director is effective from September 1, 2009

2] REMUNERATION COMMITTEE


The committee has been constituted to determine the Company's policy on specific remuneration packages for Managing Director / Wholetime Director including pension rights and any other compensation related matters and issues based on their performance and defined assessment criteria within the framework of the provisions and enactments governing the same .

Composition and Attendance of Remuneration Committee :

During the year 2009-10, the Committee met once on September 1, 2009

The Composition of and Attendance at the Remuneration Committee meeting during the year 2009-2010 :

Name of the Director Category Meetings Attended

Mr. Dileep Shinde Non-Executive Director - Independent [Chairman] 1

Mr. Girraj Vijayvargiya Wholetime Executive Director [Member] 1

Mr. Lalit Agarwal* Non-Executive Director - Independent [Member] -



Remuneration Policy :

The Remuneration Committee of the Board constituted in compliance with the SEBI guidelines has framed the compensation structure for Working Directors. The Committee reviews the same from time to time based on certain performance parameters like growth in business, profitability and is comparative with the best practices prevailing in the industry.

Details of Remuneration paid to all Directors in Financial Year 2009-2010

a] Chairman and Managing Director - Mr. Purnandu Jain ̀ 1,88,16,000 consolidated.

b] Whole-time Executive Director - Mr. Girraj Vijayvargiya ̀ 25,92,000 consolidated.

3] SHAREHOLDERS' GRIEVANCE / SHARE TRANSFER COMMITTEE


To specifically look into complaints relating to transfer of shares, non-receipt of annual report, dividend warrants, etc. received from investors, to redress them and to improve the efficiency in investors service, where ever possible.

Composition of Shareholders' Grievance / Share Transfer Committee :

The Committee comprises of the following directors namely :

Name of the Director Category

Mr. Girraj Vijayvargiya Wholetime Executive Director [Chairman]

Mr. Purnandu Jain Chairman and Managing Director [ Member]

Mr. Dileep Shinde Non-Executive Director - Independent [Member]

Mr. Lalit Agarwal * Non-Executive Director - Independent [Member]


During the F.Y. 2009-10, Twenty Three complaints were received from the shareholders out of which Twenty One complaints were satisfactorily resolved / replied and Two complaints were pending to be resolved.

4] FINANCE COMMITTEE


With the expanding business operations the Company has constituted a finance committee during the year, to formulate policies relating to financial arrangements with the bankers and other lenders to handle related issues. The Board in its meeting held on October 28, 2009, delegated the borrowing powers under Section 292[1][c] of the Companies Act, 1956 to the Finance Committee.

Composition of the Finance Committee :

Name of the Director Category

Mr. Purnandu Jain Chairman and Managing Director [Chairman ]

Mr. Girraj Vijayvargiya Wholetime Executive Director [Member]

The Committee met six times during the year


Garden Court, Veera Desai Road,

Andheri [West] Mumbai - 400 053}

IV. GENERAL MEETINGS

Details of Annual General Meetings :

a] The last Three Annual General Meetings of the Company were held as given below :

Year Date & Time Venue Special Resolutions passed

2008 - 09 September 29, 2009 Noat 11.00 a.m.

2007 - 08 September 27, 2008 1. Re-appointment of Mr. Purnandu Jain as CMDat 12.30 p.m. and increase in his remuneration

2. Increase in remuneration of Mr. Girraj Vijayvargiya, WTD

2006 - 07 December 31, 2007 1. Increase in remuneration of Mr. Purnandu Jain, CMDat 10.30 a.m. 2. Alteration of the Articles of Association

Fifteenth Annual General Meeting was held on Tuesday, September 29, 2009

b] No Special resolution was passed during the year through the process of Postal Ballot.

c] Postal ballot:

d] Mr. D. A. Kamat, Practicing Company Secretary was appointed as the scrutinizer to conduct the Postal Ballot.

V. MEANS OF COMMUNICATION

Timely disclosure of information on business and financial performance of the Company is an integral part of good governance. Your Company disseminates information about its operations, business and financial performance to Stock Exchanges, Media, Shareholders, Analysts and Society at large. The Quarterly / Half yearly / Annual results are declared within forty-five days of the end of such respective period.

The Quarterly Unaudited Financial results and Audited Annual results are generally published in the widely circulating National and Local News Papers such as “The Economic Times” [in English] and “Maharashtra Times” [in Marathi]. These results are not sent to each Shareholder.

Regular updates and developments impacting the business and financials together with Data on Shareholding pattern, details of persons holding more than 1% of the fully paid-up Share Capital, etc. are made available to both the Stock Exchanges - namely The Bombay Stock Exchange Ltd., and The National Stock Exchange of India Limited. which would enable them to place the information on their respective website.

The company's Financial results / Official news releases and other important investor related information are periodically displayed and updated on the Company's Website, viz., www.ankurdrugs.com.

No presentations have been made to Institutional Investors / Analysts during the year.

Pursuant to provisions of Section 192A of the Companies Act, 1956 Postal Ballot was conducted to pass the following resolution as an ordinary resolution under section 293(1](a] of the Companies Act, 1956

“To create and/or charge and/or hypothecate all or any of movable and immovable properties and assets of the Company”.

The result of the postal ballot, declared on July 25, 2009, is as under :

Number of valid postal ballot forms received 101 equating 81,37,673 Equity Shares

Number of invalid postal ballot forms received 11 equating 16,601 Equity Shares

Particulars Total No of % to Total No of

Valid Votes Valid Votes

Votes in favour of the Resolution 81,35,971 99.98

Votes against the Resolution 1,702 0.02

Total 81,37,673 100.00

The above resolution was approved by the shareholders with requisite majority.


VI. DISCLOSURES

a] Related Party Transactions :

During the period, there were a few transactions with Promoters, Directors and their relatives, but there is no apparent conflict thereof with the interests of the Company. [refer to note 8 of Schedule 17]

b] Statutory Compliance and Strictures :

There were no cases of non-compliance of any matter related to the Stock Exchanges/SEBI/Statutory Authority/Capital Markets during the last three years.

c] Code of Conduct :

The Chairman and the Managing Director of the Company has certified to the Board, the compliance with the code of conduct as required under Clause 49 [V] of the Listing Agreement.

d] Allotment of Shares during the year :

The Company has alloted Equity Shares on conversion of FCCBs and also on conversion of Share Warrants during the year, as per details given below:

Date of Allotment No. of Shares Alloted Authorised Capital Paid-up capital

May 12, 2009 4,00,000 * ` 28,00,00,000 19,01,53,910

November 13, 2009 3,26,199 ** ` 28,00,00,000 ` 19,34,15,900

* Shares allotted on conversion of 4,00,000 Equity Share Warrants issued at a premium of 165 per share.

** Shares allotted on conversion of 1000 FCCB's of US $ 1000 each at a conversion price of 165 per share.

LISTING APPROVALS FROM BSE AND NSE :

*/** Application for listing and trading has been submitted to BSE and NSE for listing of 4,00,000 Equity Shares of 10 each allotted on conversion of 4,00,000 Equity Share Warrants and 3,26,199 Equity Shares of 10 each issued and allotted upon conversion of 1000 FCCB's.

e] Non-mandatory requirements

Non-mandatory requirements of corporate governance have not been adopted.

VII. GENERAL SHAREHOLDER INFORMATION

DIVIDEND DETAILS

`

`

`

``

Details of unclaimed dividends as on March 31, 2010 are given here under

AGM No. For the Year Ended Rate [%] Date of Declaration Date of Payment Unclaimed Dividend [`]

10 March 31, 2004 10.00 September 30, 2004 October 04, 2004 2,40,358.00



13 March 31, 2007 20.00 December 31, 2007 January 05, 2008 6,92,012.00




VII. GENERAL SHAREHOLDER INFORMATION... Continued

Date of Incorporation February 09, 1995

Corporate Identity Number [CIN] L24230MH1995PLC085410thRegistered Office 20 Floor, Lotus Business Park,

Andheri [West], Mumbai - 400 053Tel : +91-22-40682300, Fax : 91-22-40682323Email : [email protected]

Manufacturing Units

Day and Date of the Annual General Meeting Thursday, September 30, 2010

Time & Venue of the Annual General Meeting 11.30 a.m. at Garden Court, Veera Desai Road,Andheri [West], Mumbai - 400 053

Date of Book Closure From September 23, 2009 to September 30, 2009[Both days inclusive]

Financial Calendar : 2010-2011 April 1, 2010 - March 31, 2011

First Quarter ending June 30, 2010 Already declared on August 14, 2010

Second Quarter ending September 30, 2010 Second week of November, 2010

Third Quarter ending December 31, 2010 Second week of February, 2011

Fourth Quarter ending March 31, 2011 Second week of May, 2011

Listing on Stock Exchanges The Bombay Stock Exchange Limitedth 25 floor, P. J. Towers, Dalal Street, Mumbai 400 001

Tel : +91-22-22721233 / 34 Fax :+91-22-22722082 / 2132

The annual listing fees for 2010-11 has Website : www.bseindia.com

been duly paid to both the Stock Exchanges The National Stock Exchange of India Limited Exchange Plaza, Bandra-Kurla complex, Bandra [East]

Tel : +91-22-26598235 / 36Fax :+91-22-26598347 / 48

Website : www.nseindia.com

Stock Code BSE - 531683

NSE - ANKURDRUGS - EQ

International Security Identification Number [ISIN] Code INE238D01012

Dividend Payment / Credit Date On or After October 5, 2010

Outstanding FCCBs US $ 28 Million FCCB with 54,78,437 underlying Equity Shares.[US $ 8 Million is convertible into Equity Shares on or beforeMay 31, 2011 and US $ 20 million FCCB are due for conversion on or before December 27, 2012.][These FCCBs are listed at Singapore Stock Exchange]

Off Andheri Link Road,


Himachal Unit I : Village Manakpur, P.O. Lodhimajra, Taluka - Nalagarh - 174 101, District : Solan, Himachal Pradesh

Himachal Unit II : Village Makhnu Majra, Taluka - Baddi - 173 205, District : Solan, Himachal Pradesh

Daman Unit : Plot No. 3 & 4, Survey No. 168,Dabhel Industrial Co-operative Society Ltd.,Village Dabhel - 396 210, Nani Daman, Daman

General Block I - Tablets & Liquid OralsGeneral Block II - Tablets & Liquid Orals Beta Lactum Block - Tablets , Capsules, Dry Syrups & Insta use suspensionCephalosporin Block - Tablets , Capsules, Dry Syrups & Insta use suspension

General Block - Tablets, Capsules, FFS, Ointments, Effervescent Tablets, Injectables, Oral Strips & Dermal Patches,Cephalosoprin Block - Tablets, Capsules, Dry Powder & Dry Powder Injectables.

General Block I - Tablets, Capsules & Liquid OralsGeneral Block II - Tablets & Liquid OralsBeta Lactum Block - Tablets , Capsules & Dry Syrups

Number of Shareholders

% of Shareholders Aggregate Shares held % of Shareholding

VIII. REGISTRAR AND TRANSFER AGENTS Ajel Infotech Limited [For physical and Demat] Unit : Ankur Drugs and Pharma Limited

106, Jogeshwari [West] Mumbai - 400 102.

Tele : +91-22- , Fax : +91-22-Email : [email protected], Business hours : 10 a.m. to 5 p.m.

IX. SHARE TRANSFER SYSTEM

Share Transfers in physical form are to be lodged with Ajel Infotech Limited, Registrar and Transfer Agents at the address mentioned above. The transfers and requests for dematerialization are normally processed within 30 days of receipt if the relevant documents are complete in all respects. Share Transfer Committee comprising of members of the Board meets once a week to consider the transfer of shares.

Shareholders holding shares in electronic mode should address all their correspondence to their respective Depository Participant [DP] regarding change of address, change of Bank / Bank Account number, nomination, etc.

X. COMPLIANCE OFFICER'S DETAILS

Mr. S. C. Rane Registered Office :thCompany Secretary & Compliance Officer 20 Floor, Lotus Business Park, Off Andheri Link Road,

Andheri [West], Mumbai - 400 053.Telephone Number +91-22-40682350Fax Number +91-22-40682323Email [email protected]

The shareholders may address their communication / suggestions / grievances / queries at the Registered Office of the Company.

XI. DISTRIBUTION OF EQUITY SHAREHOLDING AS ON MARCH 31, 2010

Number of Shares Held

001 - 500 8312 85.46 10,31,076 05.33501 - 1000 653 06.71 5,43,046 02.80

1001 - 2000 330 03.39 5,19,566 02.682001 - 3000 147 01.51 3,76,580 01.953001 - 4000 056 00.58 1,94,806 01.014001 - 5000 051 00.52 2,41,337 01.255001 - 10000 083 00.85 6,08,641 03.15

10001 and above 094 00.98 1,58,26,538 81.83

Total 9726 100.00 1,93,41,590 100.00

XII. SHAREHOLDING PATTERN AS ON MARCH 31, 2010

Category

Indian Promoters 07 71,20,480 36.81

Mutual Funds and U T I 01 2,500 0.01

Financial Institution 02 10,500 0.05

Foreign Institutional Investors 06 29,68,337 15.35

Corporate Bodies 472 30,70,103 15.88

Indian Public 9089 50,59,189 26.16

NRIs / OCBs 149 11,10,481 5.74

Total 9726 1,93,41,590 100.00

As on March 31, 2010 - 95.56% of the paid-up equity shares were held in Dematerialised form.

Link Plaza Commercial Complex,New Link Road, Oshiwara,

26303348, 26303342 26349264,website : www.ajel.in

Number of Shareholders Number of Shares held % of Shareholding


Year / Month

ANKUR NSE Price Data [ ] ANKUR B BSE Sensex

High Low High Low High Low

2009 April 97.85 68.45 98.30 68.10 11492.10 9546.29May 123.95 75.00 124.40 75.00 14930.54 11621.30June 160.00 105.00 159.85 105.10 15600.30 14016.95July 161.00 109.10 155.00 105.60 15732.81 13219.99August 186.50 135.00 187.00 135.15 16002.46 14684.45September 224.25 155.05 223.15 155.00 17142.52 15356.72October 225.90 174.80 225.50 183.00 17493.17 15805.20November 240.00 175.05 240.00 175.00 17290.48 15330.56December 249.25 194.00 249.05 194.00 17530.94 16557.78

2010 January 252.50 195.10 251.00 195.10 17790.33 15982.08February 214.95 191.00 217.75 180.00 16669.25 15651.99March 214.35 183.40 215.00 184.00 17793.01 16438.45

At the NSE : Closing Share Price as on March 31, 2010 was 202.00At the BSE : Closing Share Price as on March 31, 2010 was 202.15

XIV.

XIII. MARKET PRICE DATA : [Monthly High/Low Quotation at NSE/BSE in comparison with BSE Sensex]

SE Price Data [ ]` `

``

ANKUR SHARE PRICE HIGH BSE SENSEX HIGH

BS

E S

EN

SE

X

AN

KU

R Q

UO

TE

[ `

]

ANKUR'S SHARE PRICE IN COMPARISON TO BSE SENSX

CHART SHOWING PERFORMANCE OF

300

250

200

150

100

50

April May June July August September October November December January February March

MONTH2009 2010

3000

6000

9000

12000

15000

18000


CEO / CFO CERTIFICATION

DECLARATION BY CHAIRMAN AND MANAGING DIRECTOR OF CODE OF CONDUCT

XV. OUTSTANDING ZERO COUPON FCCBs / CONVERSION DATE AND LIKELY IMPACT ON EQUITY

Out of the outstanding balance of US $ 9 million Zero Coupon FCCBs underlying 27,53,700 Equity Shares outstanding as at April 01, 2009 [which were issued on May 26, 2006] US $ 1 million FCCBs [1000 Bonds of US $ 1000 each] were converted into 3,26,199 Equity Shares at a conversion rate of 165 per Share. The balance US $ 8 million FCCBs were outstanding as on March 31, 2010.

Out of US $ 20 million FCCBs i.e. 79.09 Crores issued in December 2007, 12 million FCCBs were issued to BRPL [Mauritius] and 8 million FCCBs were issued to BROMPL Mauritius. The above FCCBs are to be converted into Equity Shares at 280 each on or before December 27, 2012. The total FCCBs of US$ 20 million were outstanding as on March 31, 2010.

`

``



I, hereby declare that pursuant to provisions of clause 49 [1] [D] [II] of the listing agreement all the Directors and Senior

Management Personnel have affirmed compliance with the code of conduct adopted by the Company and confirmation to that

effect has been received for the year 2009-2010.

Place : MumbaiDate : September 01, 2010

For Ankur Drugs and Pharma Limited

Purnandu JainChairman and Managing Director

As required under sub clause V of Clause 49 of the Listing Agreement with the Stock Exchanges, we have certified to the Board

that for the financial year ended March 31, 2010 the Company has complied with the requirements of the said sub-clause.


Purnandu JainChairman and Managing Director[CEO]

Girraj VijayvargiyaWholetime Executive Director [CFO]

For Ankur Drugs and Pharma Limited


AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE

To the Members of Ankur Drugs and Pharma Ltd.

We have examined the compliance of the conditions of corporate governance by Ankur Drugs and Pharma Ltd., for the year ended on March 31, 2010 as stipulated in clause 49 [VII] of the Listing Agreement of the said Company with The Bombay Stock Exchange Limited, Mumbai and The National Stock Exchange of India Limited, Mumbai. The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination is limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.

In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has complied in all material respects with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement.

During the year under review 2009-10, Twenty Three complaints were received from the shareholders out of which Twenty One complaints were satisfactorily resolved and Two complaints were pending to be resolved.

We further state that such compliance is neither an assurance as to future viability of the Company nor the efficiency or effectiveness with which the Management has conducted the affairs of the Company.

For M. G. Vashi & Co.Firm Registration No 128557W

Chartered Accountants

CA. M. G. VashiPlace : Mumbai ProprietorDate : September 01, 2010 ICAI M. No. 030217


To the Members of Ankur Drugs and Pharma Limited.

1. We have audited the attached Balance Sheet of ANKUR DRUGS AND PHARMA LIMITED as at March 31, 2010, the Profit and Loss Account and Cash Flow Statement for the year ended on that date annexed thereto [together referred to as 'Financial Statements']. These Financial Statements are the responsibility of the Company's Management. Our responsibility is to express an opinion on these Financial Statements based on our audit.

2. We have conducted our audit in accordance with the Auditing Standards generally accepted in India. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the Financial Statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Financial Statements. An audit also includes assessing the accounting principles used and significant estimates made by Management, as well as evaluating the overall Financial Statements presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies [Auditor's Report] Order, 2003 issued by the Government of India in terms of sub-section [4A] of section 227 of the Companies Act, 1956, and on the basis of such checks of the books and records as we considered necessary and appropriate and according to the information and explanations given to us during the course of the audit, we enclose in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said Order to the extent applicable.

4. Further to our comments in the Annexure referred to in paragraph 3 , we report that :

[a] We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our Audit.

[b] In our opinion, proper books of account as required by law have been kept by the Company, so far as it appears from our examination of those books.

[c] The Balance Sheet and Profit and Loss Account, dealt with by this report are in agreement with the books of account.

[d] In our opinion the Balance Sheet and Profit and Loss Account and the Cash Flow Statement comply with Accounting Standard referred to sub-section [3C] of section 211 of the Companies Act, 1956.

[e] On the basis of written representations received from the Directors and taken on record by the Board of Directors, we report that none of the Directors are disqualified as on March 31, 2010 from being appointed as a Director of the Company under clause [g] of sub-section [1] of Section 274 of the Companies Act, 1956.

[f] In our opinion and to the best of our information and according to the explanations given to us, the said Financial Statements, read together with the statement on significant accounting policies and notes on accounts, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India;

[i] in the case of the Balance Sheet, of the State of Affairs of the Company, as at March 31, 2010;

[ii] in the case of the Profit and Loss Account, of the Profit of the Company for the year ended on that date;

[iii] in the case of the Cash Flow Statement, of the Cash Flows of the Company for the year ended on that date.



CA. M. G. VashiPlace : Mumbai ProprietorDate : ICAI M. No. 030217September 01, 2010

AUDITORS' REPORT


[Referred to in para 3 of our Report of even date]i. [a] The Company has maintained proper records showing full particulars, including quantitative details and situation of its fixed

assets.

[b] The fixed assets are physically verified by the Management at reasonable intervals having regard to size of the Company and nature of its assets. We have been informed that no material discrepancies were noticed during such physical verification.

[c] The Company has not disposed off any significant part of fixed assets during the year and accordingly going concern status of the Company is not affected.

ii. In respect of inventories :

[a] As explained to us, physical verification of inventory was carried out at reasonable intervals by the Management.

[b] In our opinion and according to the information and explanation given to us, the procedures of physical verification of inventory followed by the Management are reasonable and adequate, in relation to the size of the Company and the nature of its business.

[c] In our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventory and the discrepancies noticed on physical verification of inventory as compared to the book records were not material and have been properly dealt with in the books of account.

iii. [a] In our opinion and according to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to any company, firm or parties covered in the register maintained under section 301 of the Companies Act, 1956.

[b] The Company has taken unsecured loans from five parties covered in the register maintained under section 301 of the Companies Act, 1956. The Company has paid interest to one party on the said unsecured loan. The interest amount paid and the terms of the loans, prima facie, are not prejudicial to the interest of the Company. The repayment of the loan was not specified by the company.

iv. In our opinion and according to the information given to us, the Company has adequate internal control procedures, commensurate to the size of the Company and nature of its business for the purchase of inventory and fixed assets and for sale of goods. Further based on our examinations and according to the information and explanations given to us, we have neither come across nor have we been informed of any major weakness in the internal control.

v. To the best of our knowledge and belief and according to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into a register in pursuance of section 301 of the Companies Act, 1956 have been so entered. We are of the opinion that each of these transactions have been made at the prices which are reasonable having regard to the prevailing market prices at the relevant time.

vi. The Company has not accepted any deposits from the public to which the directives issued by the Reserve Bank of India and the provisions of section 58A and 58AA of the Act and the rules framed there under are applicable.

vii. In our opinion, the Company has an internal audit system commensurate with the size and nature its business.

viii. As explained to us, the Central Government has not prescribed maintenance of cost records under section 209 [1] [d] of the Companies Act, 1956, for any of the products of the Company.

ix. In respect of statutory dues:

[a] According to the records of the Company and information and explanation given to us, the Company has been regular in depositing undisputed statutory dues including Provident Fund, Income Tax, Sales Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it with appropriate authorities.

[b] According to the information and explanations given to us, no undisputed amounts payable in respect of above were in arrears, as at March 31, 2010 for a period of more than six months from the date on which they became payable.

x. The Company has no accumulated loss at the end of financial year and has not incurred cash loss during the financial year covered by our audit and the immediately preceding financial year.

xi. On the basis of our examination and according to the information and explanation given to us, we are of the opinion that theCompany has not defaulted in repayment of dues to any bank or financial institution. The Company has not obtained any borrowings by way of debentures.

xii. Based on our examination of records and according to the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

ANNEXURE TO THE AUDITORS' REPORT


xiii. In our opinion, the Company is not a Chit Fund or a Nidhi/ Mutual benefit fund/ society. Therefore, the provisions of clause [xiii] of Paragraph 4 of the Companies [Auditors Report] Order, 2003 are not applicable to the Company.

xiv. In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, provisions of clause [xiv] of Paragraph 4 of the Companies [Auditors Report] Order, 2003 relating to maintenance of proper records, timely entries and holding investments in own name are not applicable to the Company.

xv. According to the information and explanation given to us and records examined by us, the Company has not given any corporate guarantee for loans taken by others from banks or financial institutions.

xvi. In our opinion and according to the information and explanations given to us, the Company has applied the term loans for the purpose for which they were obtained.

xvii. In our opinion and on the basis of our examination and according to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we report that the Company has prima facie used part of the funds borrowed on short term basis during the year for long term investments.

xviii. The Company has made preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Act.

xix. The Company has not issued any debentures during the year.

xx. The Company has not raised any money by public issues during the year.

xxi. To the best of our knowledge and belief and according to information and explanations given to us, there have been no cases of fraud on or by the Company, noticed or reported during the year.





BALANCE SHEET AS AT MARCH 31, 2010

Particulars Schedule As at As atNo. March 31, 2010 March 31, 2009

SOURCES OF FUNDSSHAREHOLDERS’ FUNDSEquity Share Capital 1 19,34.16 18,61.54Equity Share Warrants Application Money - 3,01.77Equity Share Application Money - 7,00.00Reserves & Surplus 2 337,94.03 243,01.36

357,28.19 271,64.67LOAN FUNDSSecured Loans 3 660,76.17 481,25.70Unsecured Loans 4 266,00.86 263,44.68

926,77.03 744,70.38DEFERRED TAX LIABILITY 36,27.98 24,26.59

TOTAL 1320,33.20 1040,61.64

APPLICATION OF FUNDSFIXED ASSETSGross Block 5 775,47.48 390,65.47Less: Depreciation 71,06.61 44,50.00

Net Block 704,40.87 346,15.47Capital Work in Progress 60,74.27 266,10.39

765,15.14 612,25.86INVESTMENTS 6 35.58 3,73.70CURRENT ASSETS, LOAN AND ADVANCES 7Inventories 324,78.50 212,77.09Sundry Debtors 316,87.52 281,13.73Cash and Bank Balances 9,43.14 15,83.78Loans and Advances 72,89.64 8,53.14

723,98.80 518,27.74LESS: CURRENT LIABILITIES AND PROVISIONSCurrent Liabilities 8 121,80.15 60,56.54Provisions 9 47,36.17 33,35.20

169,16.32 93,91.74

NET CURRENT ASSETS 554,82.48 424,36.00MISCELLANEOUS EXPENDITURE 10 - 26.08[To the extent not written off or adjusted]

TOTAL 1320,33.20 1040,61.64

Significant Accounting Policies & Notes on Accounts 17

As per our report of even date attached

For M. G. Vashi & Co.


CA. M. G. VashiProprietor / ICAI M. No. 030217


Firm Registration No 128557W

For and on behalf of the Board of Directors

Purnandu Jain - Chairman and Managing Director

Girraj Vijayvargiya - Wholetime Executive Director

S. C. Rane - Company Secretary


[ ` in Lacs ]


PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2010

Particulars For the Year endedNo. March 31, 2010 March 31, 2009

INCOMEGross Sales / Income from Operations 1070,49.97 968,99.30Less : Excise Duty 3,09.21 3,67.23

NET SALES 1067,40.76 965,32.07Other Income 11 1,98.98 2,93.58Increase in Inventory 12 3,72.26 46,34.05

TOTAL 1073,12.00 1014,59.70EXPENDITUREMaterials Consumed and Goods Purchased 13 799,50.60 784,41.89Manufacturing Expenses 14 39,25.39 33,01.91Administrative, Sales and Other Expenses 15 20,17.80 14,98.26

PROFIT BEFORE DEPRECIATION, INTEREST AND TAX 214,18.21 182,17.64Less : Depreciation 5 26,63.98 20,66.68

PROFIT BEFORE INTEREST, EXCHANGE FLUCTUATION AND TAX 187,54.23 161,50.96Less : Interest and Financial Charges 16 80,74.98 54,10.32Less / [Add] : Prov. for Exchange difference on foreign currency loans [15,43.06] 26,13.06Less : Provision for premium on redemption of FCCBs 3,43.72 20,93.89

PROFIT BEFORE EXCEPTIONAL ITEM AND TAX 118,78.59 60,33.69Less / [Add] : Prov. for Diminution in value of Investments [1,21.43] 1,42.05

PROFIT BEFORE TAX 120,00.02 58,91.64Less: Provision for Taxation- Current Tax 17,05.36 7,30.99- Deferred Tax 12,01.39 14,39.16- Fringe Benefit Tax -- 9.76- Short / [Excess] Provision for Income Tax of earlier year 4,73.12 [1.29]- Fringe Benefit Tax of earlier year 2.39 0.38

PROFIT AFTER TAX 86,17.76 37,12.64

Add: Balance brought forward 101,57.38 89,45.30

Amount Available for Appropriations TOTAL 187,75.14 126,57.94

APPROPRIATIONSProposed Dividend 4,35.19 4,27.85Tax on Dividend 78.00 72.71Transfer to General Reserve 50,00.00 20,00.00Balance carried over to Balance Sheet 132,61.95 101,57.38

TOTAL 187,75.14 126,57.94

EARNING PER SHARE Basic 44.56 19.94Diluted 30.33 33.79

Significant Accounting Policies & Notes on Accounts 17

Schedule For the Year ended












[ ` in Lacs ]


A. CASH FLOW FROM OPERATING ACTIVITIESNet profit before tax 120,00.02 58,91.64Adjustment for:Depreciation 26,63.98 20,66.68Miscellaneous Expenditure written off 26.08 25.69[Profit] / Loss on sale of fixed assets 5.73 [2.71]Provision for Exchange difference on Foreign Currency Loans [15,43.06] 26,13.06Provision for Premium on redemption of FCCBs 3,43.72 20,93.89Provision for Diminution in Value of Investments [1,21.43] 1,42.05Other income [Other than Profit on Sale of Assets] [1,98.98] [2,90.86]Financial charges 80,74.98 54,10.32

Operating profit before working capital changes 212,51.04 179,49.76

Adjustments for:Increase in Trade Receivables [35,73.79] [117,22.84][Increase] / Decrease in Other Advances [Excluding TDS] [57,06.79] 63.34Increase in Inventories [112,01.41] [89,61.81]Increase in Current Liabilities 61,23.61 21,78.85Increase in Working Capital Borrowing / Short Term Loan 126,57.58 106,42.53

Cash generated from / [used in] operations 195,50.24 101,49.83Direct Taxes paid [including FBT & TDS] [19,30.84] [5,52.90]Financial Charges Paid [80,74.98] [54,10.32]

Net Cash from Operating Activities 95,44.42 41,86.61

B. CASH FLOW FROM INVESTING ACTIVITIESAdditions to Fixed Assets [Including Capital work-in-progress] [179,84.29] [97,48.42]Sale of Fixed Assets 25.30 22.95Sale of Investments 4,73.68 8.17Other Income [other than profit on sale of Fixed Assets & redemption of Mutual Funds] 1,84.85 2,90.71

Net Cash Used in Investing Activities [173,00.46] [94,26.59]

C. CASH FLOW FROM FINANCIAL ACTIVITIESSecured Term Loans [net of repayment] 52,92.89 [31,04.41]Unsecured Loans 22,58.19 25,05.57Fresh Issue of Equity Shares / Warrants including Share Premium -- 20,06.85Tax on Distributed Profit [7.83] [71.18]Dividend Paid [4,27.85] [4,18.85]

Net Cash available from Financial Activities 71,15.40 9,17.98

Net Increase/[Decrease] in Cash and Cash Equivalents [A+B+C] [6,40.64] [43,22.00]

Opening Balance of Cash and Cash Equivalents 15,83.78 59,05.78

Closing Balance of Cash and Cash Equivalents 9,43.14 15,83.78

CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2010

[ ` in Lacs ]

Particulars For the year ended

March 31, 2010 March 31, 2009

For the year ended


1. Cash and Cash Equivalent includesCash in hand [Including Imprest Cash) 21.33 24.11 Balance with Scheduled Banks :- In Current Accounts [Including Cheques in hand] 2,74.27 3,95.96- In Margin Money Accounts 6,47.54 5,17.87- In Fixed Deposit Accounts -- 6,45.84

TOTAL 9,43.14 15,83.78

2. The above Cash Flow Statement has been prepared under the Indirect method as set out in Accounting Standard - 3 on "Cash Flow Statement" issued by The Institute of Chartered Accountants of India.

3. Previous year's figures have been re-arranged / regrouped wherever necessary.

4. Significant non-cash transactions:The Company has converted 1000 FCCBs into 3,26,199 Equity Shares of Rs.10 each, fully paid-up at a premium of Rs. 155 per share during the year.

NOTES TO CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2010












We have examined the attached Cash Flow Statement of Ankur Drugs and Pharma Limited for the year ended March 31, 2010.

The statement has been prepared by the Company in accordance with the requirement of Clause 32 of the listing agreement

with the Bombay Stock Exchange Limited, Mumbai and the National Stock Exchange of India Limited, Mumbai subject to

re-allocations made by the Company is based on and in agreement with the corresponding Profit and Loss Account and

Balance Sheet of the Company covered by our report of September 1, 2010 to the members of the company.




AUDITORS’ CERTIFICATE

[ ` in Lacs ]

Particulars For the year ended

March 31, 2010 March 31, 2009

For the year ended


SCHEDULES FORMING PART OF BALANCE SHEET AS AT MARCH 31, 2010

SCHEDULE I : SHARE CAPITALAUTHORISED2,80,00,000 Equity Shares of 10 each 28,00.00 28,00.00

ISSUED, SUBSCRIBED AND PAID UP 1,93,41,590 [P. Y. 1,86,15,391] Equity Shares of ` 10 each 19,34.16 18,61.54

SCHEDULE 2 : RESERVES & SURPLUSCapital Reserve

As per last Balance Sheet 22.44 22.44Add : Amount forfeited during the year 3,01.77 --

3,24.21 22.44Security Premium Account

As per last Balance Sheet 101,95.28 89,09.88Add : Received during the year 10,86.33 12,85.40

112,81.61 101,95.28General Reserve As per last Balance Sheet 39,26.26 19,26.26 Add Transferred from Profit & Loss Account 5000.00 20,00.00

89,26.26 39,26.26

Balance in Profit & Loss Account 132,61.95 101,57.38

TOTAL 337,94.03 243,01.36

SCHEDULE 3 : SECURED LOANS

A. TERM LOANS FROM BANKSa. For Daman Unit -- 40.00b. For Himachal Unit-I 51,37.94 69,20.80c. For Himachal Unit-II 102,71.05 120,09.57d. For Office 11,01.36 15,58.12e. Under PEC Scheme 42,81.12 --f. WC-TL 50,56.41 --g. STL 51,47.38 --

309,95.26 205,28.49B. WORKING CAPITAL LOANS

From Banks 349,86.16 274,75.96

C. VEHICLE LOANSFrom Banks and Finance Companies 94.75 1,21.25[For details of securities refer Note No. 5 to Schedule 17]

TOTAL 660,76.17 481,25.70

SCHEDULE 4 : UNSECURED LOANS

From Directors 1,40.30 1,40.30 From Banks, Intercorporate and Other Loans 138,09.96 11661.58 Foreign Currency Convertible Bonds 126,50.60 145,42.80

TOTAL 266,00.86 263,44.68

`

[ ` in Lacs ]

Particulars As at As at March 31, 2010 March 31, 2009



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SCHEDULE 6 : INVESTMENTS

At cost [Trade, unquoted]333 Equity Shares of ` 30 each fully paid-up of 0.10 0.10

Bombay Mercantile Co-operative Bank Limited40 Equity Shares of ` 25 each fully paid-up of 0.01 0.01

Rupee Co-operative Bank Limited10000 Equity Shares of ` 10 each fully paid-up 1.00 1.00

of The Shamrao Vithal Co-op Bank Limited20000 [PY 4000] Equity Shares of ` 25 each fully paid-up of 5.00 1.00

The Thane Janta Kalyan Sahakari Bank Limited

Investments in Government Securities 0.10 0.10

Investments in Mutual Funds [As detailed below] 29.37 3,71.49

TOTAL 35.58 3,73.70

INVESTMENTS IN MUTUAL FUNDS

[ ` in Lacs ]

Units Particulars As at As at March 31, 2010 March 31, 2009

159765 DSP Merill Lynch - Tiger Fund - Dividend 50.00 50.00

91324 HDFC Equity Fund - Dividend -- 50.00

1006 Reliance Liquid Plus Fund - Weekly Dividend Reinvestment -- 11.36

1977075 Reliance Natural Resources Fund -- 2,00.18

200 NCD CFIL Series -- 2,02.00

50.00 5,13.54

Less : Provision Diminution in value of Investments 20.63 1,42.05

TOTAL 29.37 3,71.49

[ ` in Lacs ]

Particulars As at As atMarch 31, 2010 March 31, 2009

SCHEDULE 7 : CURRENT ASSETS, LOANS AND ADVANCES

INVENTORIES [As taken, valued and certified by the management]Raw materials 234,88.70 136,08.38Packing materials 25,84.87 17,34.43Finished goods 28,60.75 27,59.60Semi-finished goods 33,47.88 30,76.77Fuel 14.56 11.43Stationery 4.13 4.52Lab Chemicals & Glasswares 15.24 16.23Stores and spare parts 1,62.37 65.73

Sub-Total [a] 324,78.50 212,77.09SUNDRY DEBTORS [Unsecured considered good]Over six months 4,21.89 3,65.75Others 312,65.63 277,47.98

Sub-Total [b] 316,87.52 281,13.73Cash and bank balancesCash in hand [Including Imprest Cash] 21.33 24.11Balance with scheduled Banks

In current accounts 2,74.27 395.96 In margin money accounts 6,47.54 517.87In fixed deposits -- 645.84

Sub-Total [c] 9,43.14 15,83.78

LOANS AND ADVANCES Advance recoverable in cash or kind for value to be received 1,04.84 1,17.10Cenvat Credit and Balance in PLA 1,87.05 1,64.16Prepaid expenses 1,92.88 1,18.76Security deposits 67.57 74.33Loans/Advances to Staff and Others 61.67 21.22Advances to Suppliers 5588.35 -- Advance Tax and TDS 10,87.28 3,57.57

Sub-Total [d] 72,89.64 8,53.14

[a] + [b] + [c] + [d] TOTAL 723,98.80 518,27.74

SCHEDULE 8 : CURRENT LIABILITIES

Sundry Creditors [including creditors for capital goods, under L/C and Bills discounted] 109,26.28 52,13.41Sundry Creditors for Expenses 6,20.16 5,28.15Other Current Liabilities [including unclaimed dividend - ` 26.03 Lacs] 6,33.71 3,14.98

TOTAL 121,80.15 60,56.54


[ ` in Lacs ]



SCHEDULE 9 : PROVISIONS

Provision for Income Tax 17,20.49 7,40.75 Proposed Dividend [including dividend tax] 5,78.07 5,00.56Provision for Premium on Redemption of FCCBs 24,37.61 20,93.89

TOTAL 47,36.17 33,35.20

SCHEDULE 10 : MISCELLANEOUS EXPENDITURE [To the extent not written off or adjusted]

Preliminary Expenses -- 7.60Public Issue Expenses -- 5.20Exhibition Expenses -- 13.28

TOTAL -- 26.08


[ ` in Lacs ]



SCHEDULES FORMING PART OF THE PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2010

SCHEDULE 11 : OTHER INCOME

Dividend Income [From Mutual Funds and Co-op. Banks] 3.58 3.63 Interest on Bank Deposit 45.37 237.18Other Interest 1.50 0.26Miscellaneous Income 0.32 --Rent Received 0.80 6.56Profit on Sale of Fixed Assets -- 2.71Key man Insurance surrender 1,08.08 --Sale of Scrap 25.20 43.09Profit on Redemption of Mutual Fund 14.13 0.15

TOTAL 1,98.98 2,93.58

SCHEDULE 12 : INCREASE IN INVENTORY

Closing Stock :Finished Goods 28,60.75 27,59.60Semi-Finished Goods 33,47.88 30,76.77

62,08.63 58,36.37Less : Opening StockFinished Goods 27,59.60 3,77.02 Semi-Finished Goods 30,76.77 8,25.30

58,36.37 12,02.32

TOTAL 3,72.26 46,34.05

SCHEDULE 13 : MATERIALS CONSUMED

Opening Stock 153,42.81 110,52.32Add: Purchases during the year 906,81.36 827,32.38

1060,24.17 937,84.70Less: Closing Stock 260,73.57 153,42.81

TOTAL 799,50.60 784,41.89

SCHEDULE 14 : MANUFACTURING EXPENSES

Carriage Inward 1,61.73 1,60.42Commission on Purchases -- 18.36Consumable Stores & Accessories 3,14.55 1,60.10Contract Labour Charges 6,45.75 5,44.41Factory Cleaning Charges 1,02.44 1,71.25Insurance Charges 1,26.27 1,05.37Lab Chemicals and Glasswares 81.38 87.75Labour, Wages and Salaries 10,86.37 8,88.11Other Manufacturing Expenses 32.78 36.71 Power and Fuel Charges 12,00.24 9,11.15Repairs & Maintenance 42.50 64.89 Security Charges 1,08.74 1,24.56Testing Charges 22.64 28.83

TOTAL 39,25.39 33,01.91

[ ` in Lacs ]



SCHEDULE 15 : ADMINISTRATIVE SALES AND OTHER EXPENSES

Advertising and Publicity Expenses 14.51 9.59Payment to Auditors 7.17 9.29 Conveyance, Travelling and Motor Car Expenses 1,66.14 1,01.89 Directors' Remuneration 2,14.08 1,82.80Carriage Outward 36.58 34.47Keyman Insurance Premium 11.32 20.55Donations 7.28 1.29Commission, Rebate and Discount 1,76.66 1,69.75Membership and Subscription 0.71 0.27Miscellaneous Expenditure Written off 12.80 12.20Exhibition and Conference Expenses 40.42 46.31Office Electricity Expenses 26.96 28.21 Other Miscellaneous Expenses 46.23 29.73Loss on Sale of Fixed Assets 5.73 --Postage and Courier Expenses 18.50 17.47Printing and Stationery 64.01 60.14Professional and Consultancy Charges 2,96.53 1,31.74Rent, Rates and Taxes 34.25 54.05

Repairs and Maintenance- Building 25.68 29.49- Utility, Office Equipments, Computers and Software 1,48.30 1,14.62

Salaries 3,76.53 2,28.95Business Development Expenses 13.72 11.77Staff and Labour Welfare Expenses 1,16.97 1,07.15Stamp Duty & Franking Expenses 79.41 29.83Telephone Charges 77.31 66.70

TOTAL 20,17.80 14,98.26

SCHEDULE 16 : INTEREST AND FINANCIAL CHARGES

Bank Charges and Commission, 2,92.39 2,30.53Interest Paid 77,82.59 51,79.79

TOTAL 80,74.98 54,10.32

SCHEDULES FORMING PART OF THE PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2010

[ ` in Lacs ]



1. Significant Accounting Policies :

I. Basis of Accounting :

The financial statements are prepared under the historical cost convention on a going concern basis. The Company generally follows the mercantile system of accounting and recognises the income and expenditure on accrual basis except those with significant uncertainties and comply with accounting standards issued by The Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

II. Fixed Assets :Fixed Assets are stated at cost of acquisition or construction, including taxes and pre-operative expenses capitalised less accumulated depreciation.

III. Impairment of Assets :

The carrying amount of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal / external factors. An asset is impaired when the carrying amount of the asset exceed the recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which the Asset is identified as being impaired.

IV. Depreciation :

a] The Depreciation on Fixed Assets is provided on straight-line method, in accordance with the Schedule XIV of the Companies Act, 1956.

b] The Depreciation on Assets added during the year has been provided on pro-rata basis with reference to the date on which the assets were put to use.

c] No depreciation has been provided on the fixed assets, which have not been put to use during the year.

V. Valuation of Inventories :

a] Raw material, Packing material, Consumable Stores and spares are valued at lower of cost or net realisable value.

b] Work-in-Progress and Finished goods are valued at lower of cost or net realisable value.

c] Work-in-Progress and Finished goods include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

VI. Investments :

The long term investments [unquoted] are stated at cost. The Income from investments is accounted for when received. The provision for diminution in value of other investments have been made considering their realisable value as at the end of financial year.

VII. Provisions :

The provisions are recognized when the Company has a present obligation as a result of past events; it is more likely that an outflow of resources will be required to settle the obligation and the amount have been reliably estimated.

VIII. Employees Benefits :

Short Term Employee Benefits

All employee benefits payable within twelve months of rendering service are recognized in the period in which the employee renders the related service.

Post Employment / Retirement Benefits

Contribution to Defined Contribution Plans such as Provident Fund etc., are charged to the Profit and Loss Account as incurred.

Gratuity

As per AS - 15 (Revised) 2005 of ICAI read with Accounting Standard Board Guidance, the provision for liability in respect of gratuity has not been computed and provided by the Company in the books for the period under review.

SCHEDULE – 17 : SIGNIFICANT ACCOUNTING POLICIES & NOTES ON ACCOUNTS FOR THE YEAR ENDED MARCH 31, 2010


IX. Borrowing Cost :

The interest and other costs incurred in connection with the borrowing of the funds are charged to revenue on accrual basis except those which are directly attributable to the acquisition of the fixed assets, which necessarily take a substantial time to get ready for their intended use. Such costs are capitalised to the respective fixed assets.

X. Revenue Recognition :

The gross sales are inclusive of excise duty wherever applicable, but net of sales tax, returns and trade discounts. The Company recognizes sales when significant risks and rewards related to ownership are transferred to the buyers.

XI. Foreign Exchange Transactions :

The transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transactions. Any other exchange difference is dealt with in Profit and Loss Account.

XII. Taxation :

The Provision for current income tax liability is ascertained on the basis of assessable profits computed in accordance with the provisions of Income Tax Act, 1961.

Deferred Tax is recognized, subject to the consideration of prudence, on timing of differences, being the difference between taxable income and accounting income that originate in one period and are capable of being reversed in one or more subsequent periods.

In case where the tax assessments have been completed but the appeals are pending, the tax payments have been set-off against the provision in the Balance Sheet. The disclosure in respect of the contingent liabilities has been made in para 2 [III] below.

XIII. Miscellaneous Expenditure :

One-Tenth of Preliminary and Public Issue Expenses and One Third of Brand Assignment charges and Exhibition Expenses have been written off during the year.

XIV. Accounting for CENVAT Credit :

CENVAT benefit is accounted for by reducing the purchase cost of Materials/ Fixed Assets, where CENVAT credit is available.

XV. Earnings Per Share :

The earnings considered in ascertaining the Company's EPS are computed as per Accounting Standard 20 on “Earning Per Share”, issued by the Institute of Chartered Accountants of India. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the period. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares unless the effect of the potential dilutive equity shares is anti-dilutive.

2. Notes on Accounts :

I. Zero Coupon Foreign Currency Convertible Bonds (FCCBs] :

i] Out of US$ 9 million FCCBs [9000 Bonds of US$ 1000 each as issued on May 25, 2006] as at April 1, 2009, US$ 1 million FCCBs [1000 Bonds of US$ 1000 each] were converted into 3,26,199 Equity Shares during the Financial Year ended March 31, 2010, at a conversion price of ` 165 per share. The balance of US$ 8 million FCCBs were outstanding as at March 31, 2010.

The said FCCBs are due for conversion on or before May 31, 2011.

ii] US$ 20 million FCCBs [20000 Bonds of US$ 1000 each as issued on December 24, 2007] were outstanding as at March 31, 2010.

The said FCCBs are due for conversion on or before December 27, 2012.

iii] The provision for Premium on Redemption of FCCBs to the tune of ` 343.72 Lacs have been computed on pro rata basis for the period up to March 31, 2010. [P.Y. $ 2093.89]

ANKUR DRUGS AND PHARMA LIMITED - SIXTEENTH ANNUAL GENERAL MEETING 2009-2010 36

II. Foreign Exchange :

On account of various factors including, in particular, an amendment to Schedule VI of the Companies Act, 1956 [the Act] withdrawing the requirement to adjust changes in the amounts of liability relating to loans/ liabilities in foreign currency attributable to Fixed Assets acquired by the Company in the cost of the said Fixed Assets, the Company has decided at the end of the Financial Year 2008-09 and after approval of the unaudited financial results for quarter and the year ended March 31, 2009 that it would be more appropriate to account for the change in foreign exchange rates, as the profit or loss of the Company for the year in which the changes take place without adjusting the amount of the change in the cost of Fixed Assets.

The Accounting policy is in line with the Accounting Standard “AS-11”, “The Effect of Changes in Foreign Exchange Rates” and also in line with the accounting policy followed by the Company for similar changes relating to liabilities expressed in foreign exchange other than those relating to fixed assets.

Accordingly, during the year ended March 31, 2010, provision for exchange difference on foreign currency loan made in the F. Y. 2008-09 was written back to the tune of ̀ . 1543.06 Lacs [Previous Year provision ̀ 2613.06 Lacs] in the books of accounts, since the Exchange rate was ̀ 44.895 / $ [Previous Year ̀ 50.6402/$] in compliance with the announcement dated March 29, 2008 by ICAI regarding Accounting in Derivatives.

III. Contingent Liabilities :

a] In respect of guarantees given by banks on behalf of the Company ` 173.63 Lacs [Previous Year ` 183.04 Lacs], the Company has kept ̀ 104.49 Lacs [Previous Year ̀ 106.84 Lacs] in Fixed Deposit with Banks.

b] Claims against the Company not acknowledged as debts: Income Tax Demand ` 574.37 Lacs [Previous Year ` 19.27 Lacs] represents the claims where the disputes are pending for rectification before AO / before CIT [App] / ITAT, Mumbai. However the Company has paid the amount of ̀ 19.27 Lacs pending dispute before ITAT

c] Estimated amount of contracts remaining to be executed on capital account [net of advance] for ̀ 2489 Lacs [Previous Year ` 3817 Lacs]

IV. Securities for Secured Loans

I. Term Loan

a] For Himachal Unit I

Term Loans amounting to ` 5,137.94 Lacs secured by way of first charge/assignment ranking pari-passu interse the lenders, are as under :

I] First charge over all the movable and immovable fixed assets situated at Village Manakpur, P.O. Lodhimajra, Taluka - Nalagarh, District Solan [H.P.]-174 101.

ii] Second charge over current assets of the Company along with other term lenders.

iii] Personal Guarantee of Mr. Purnandu Jain, Chairman and Managing Director of the Company.

b] For Himachal Unit II

Term Loans amounting to ̀ 10,271.05 Lacs secured by way of first charge/assignment ranking pari-passu interse the lenders, are as under :

i] First charge over all the movable and immovable fixed assets situated at Village Makhnu Majra, Taluka Baddi, District Solan [H.P.] - 173 205.

ii] Second charge over current assets of the Company along with other term lenders.


c] For Office Premises

Term Loans amounting to ̀ 1,101.36 Lacs secured by way of first charge / assignment interse the lenders, are as under :thi] First charge over office premises at 20 Floor, Lotus Business Park, Off. Andheri Link Road, Andheri [West],

Mumbai - 400 053.

ii] Personal Guarantee of Mr. Purnandu Jain, Chairman and Managing Director of the Company.


Particulars

d] For Production Equipment Credit Scheme

Term Loans amounting to ̀ 42,81.12 Lacs secured by way of first charge/assignment are as under:

i] First charge by way of Hypothecation over Equipment acquired out of the loan.

ii] Subservient charge on current assets of the company.


e] For Working Capital Term Loan

Term Loans amounting to ` 50,56.41 Lacs secured by way of charge/assignment ranking pari-passu interse the lenders, are as under:

i] Second charge on the fixed assets of the company with other lenders.


f] For Short Term Loan

Term Loans amounting to ̀ 51,47.38 Lacs secured by way of charge/assignment as under:

i] Subservient charge over Current Assets of the company.


II. Working Capital Borrowings

Cash Credit amounting to ` 349,86.16 Lacs is secured by way of first charge/assignment ranking pari-passu interse the lenders are as under:

i] First pari passu charge over current assets of the Company.

ii] Second charge over all the movable and immovable fixed assets situated at Village Makhnu Majra, Taluka - Baddi, District Solan [H.P] - 173205 along with other term lenders.

iii] Second charge over all the movable and immovable fixed assets situated at Plot No. 168/3 and 4, Survey No. 168, Dabhel Industrial Co-operative Society Limited, Village Dabhel, Nani Daman [U.T.] - 396210 along with term lenders.

iv] Second charge over all the movable and immovable fixed assets situated at Village Manakpur, P.O. Lodhimajra, Taluka - Nalagarh, District Solan [H.P.] 174101.

v] Second charge over office premises at 20th Floor, Lotus Business Park, Off. Andheri Link Road, Andheri (West), Mumbai – 400 053.

vi] Personal Guarantee of Mr. Purnandu Jain, Chairman and Managing Director of the Company.

III. Vehicle Loan

Vehicle Loan of amounting to ` 94.75 Lacs is secured by hypothecation of specific vehicles against which the loans have been taken.

V. Deferred Tax

[A] In accordance with “Accounting Standard 22” on Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India, the Company has Deferred Tax liability of ̀ 36,27.98 Lacs which is arrived after Deferred Tax charge of ̀ 12,01.40 Lacs to Profit and Loss account.

[B] In compliance of Accounting Standard-22 on “Accounting for Taxes on Income” issued by The Institute of Chartered Accountants of India, the break up of deferred tax assets and liability are given below :

[ ̀ in Lacs ]

As at As at March 31, 2010 March 31, 2009

Deferred Tax Liability 36,27.98 24,26.59


VI. Earning per Share

In compliance of Accounting Standard-20 on “Earning Per Share” issued by The Institute of Chartered Accountants of India, the computation of Earning per share [Basic and Diluted] is as under :

Particulars 2009-2010 2008-2009

a. Profit after Tax ` in Lacs 86,17.76

b. Weighted average number of Equity Shares for Basic EPS No in Lacs 193.42 186.15

c. Nominal value per Equity Share ` 10.00 10.00

d. Earning Per Share [Basic] ` 44.56 19.94

e. Profit after Tax for Basic E P S ` in Lacs 86,17.76 37,12.64

f. Add : Exchange Loss / (Gain) and Premium payable on ` in Lacs [10,89.54] 45,97.14 outstanding Foreign Currency Convertible Bonds

g. Profit after Tax for Diluted E P S ` in Lacs 74,18.42 83,09.79

h. Number of Equity Shares outstanding No in Lacs 193.42 186.15

i. Add : Adjustment for Options relating to No in Lacs 54.78 59.78 Foreign Currency Convertible Bonds and Share warrants

j. Weighted average number of Equity Shares for Diluted E P S No in Lacs 248.20 245.94

k. Earning Per Share [Diluted] ` 30.33 33.79

VII. Related Party TransactionsIn accordance with the Accounting Standard 18 on 'Related Party Disclosures' issued by the Institute of Chartered Accountants of India, the transactions with the related parties of the Company are disclosed below : [ ̀ in Lacs ]

Name of the related Description of Amount party with whom relation with Nature of Transaction Amount outstandingtransactions have the party 2009-2010 as at March been made 31, 2010

Purnandu Jain Chairman and Remuneration 1,88.16 7.57Managing Director

Girraj Vijayvargiya Wholetime Remuneration 25.92 1.32Executive Director

Vaibhav Jain Son of Chairman and Rent 1.53 1.32Managing Director

Aakanksha Securities Chairman and Interest 4.38 4.38Private Limited Managing Director

is director of the said company

37,12.64


VIII. Computation of Net Profit under Section 349 of the Companies Act, 1956 [ ̀ in Lacs ]

Particulars 2009-2010 2008-2009

Profit Before Tax as per Profit and Loss Account 120,00.02 58,91.64

Add: Managerial Remuneration [Excluding Sitting Fees] 2,14.08 1,82.80

Net Profit under Section 349 of the Companies Act, 1956. 122,14.10 60,74.44

Maximum Permissible Managerial Remuneration 12,21.41 6,07.44

IX. Managerial Remuneration

Managerial Remuneration under section 198 of Companies Act, 1956 paid or payable during the financial year is as under :

[ ̀ in Lacs ]

Particulars 2009-2010 2008-2009

Remuneration to Managing Director [Including Provident Fund Contribution] 1,88.16 1,56.01

Remuneration to Executive Director [Including Provident Fund Contribution] 25.92 26.79

TOTAL 2,14.08 1,82.80

X. Payment to Auditors [ ̀ in Lacs ]

Particulars 2009-2010 2008-2009

Audit fees 3.00 3.00

Tax Audit fees 0.50 0.50

Certification and other professional work 2.60 4.50

Out of pocket expenses 0.40 0.31

Service Tax on above payments 0.67 0.98

TOTAL 7.17 9.29

XI. Capacity and Production

Installed Capacity * Actual Production

2009-10 2008-09 2009-10 2008-09

Tablets Million Numbers 15720.00 14400.00 9800.00 9520.00

Capsules Million Numbers 2886.00 2579.00 2090.00 2002.00

Dry Syrups Million Bottles 96.00 48.00 52.50 43.75

Liquid Orals Million Bottles 78.00 54.00 48.00 46.00

Effervescent Tablets Million Numbers 300.00 300.00 157.00 56.90

Ointments Million Tubes 30.00 30.00 14.00 8.25

Oral Powder Million Sachets 15.00 15.00 5.30 4.10

Form Fill & Seal [FFS] Million Vials 30.00 -- 2.10 --

Liquid Injectable Million Vials/Ampouls 138.24 -- 1.25 --

Dry Powder Injectable Million Vials 115.20 -- 0.35 --

* Installed Capacity based on 300 days & 2 Shifts

Product Formulation Units


Product Formulation Units

XII. Details of Sales including Job Work

SALES

2009-10 2008-09

Quantity Amount [ ] Quantity Amount [ ̀ ]

[A] Manufacturing Sales including job work

Tablets Million Nos. 9780.69 768,06.41 9411.45 679,67.96

Capsules Million Nos. 2085.89 117,29.03 1988.86 111,83.43

Dry Syrups Million Bottles 52.48 82,55.66 43.55 77,32.09

Liquid Orals Million Bottles 47.91 35,27.68 45.74 62,07.34

Oral Powder Million Sachets 5.29 2,46.91 4.11 1,87.17

Effervesent Tablets Million Nos. 157.04 18,41.25 56.83 6,47.55

Ointments Million Tubes 13.94 11,56.01 8.18 6,70.72

Form Fill & Seal [FFS] Million Vials 2.10 19.32 -- --

Liquid Injectable Million Vials 1.16 97.23 -- --

Dry Powder Injectable Million Vial 0.29 54.05 -- --

TOTAL [A] 12146.69 1037,33.55 11558.72 945,96.26

[B] Trading Sales

Bulk Drug -- 30,07.21 -- 19,35.81

TOTAL [B] -- 30,07.21 -- 19,35.81

TOTAL [A] + [B] -- 1067,40.76 -- 965,32.07

`


Particulars

Particulars

Particulars Units

XIII. Details of Raw Materials Consumed and Goods Purchased [Active Bulk Drugs and Other Materials]

2009-2010 2008-2009

Quantity ` in Lacs Quantity ` in Lacs

Opening Stock KGs./Ltrs 758979 136,08.38 1904268 95,22.02

Add : Purchases/Stock Transfer[net] KGs./Ltrs 8261014 800,13.24 7563874 728,32.83

Sub-Total KGs/Ltrs 9019993 936,21.62 9468142 823,54.85

Less : Closing Stock KGs./Ltrs 1247651 234,88.70 758979 136,08.38

Raw Materials Consumed KGs./Ltrs 7772342 701,32.92 8709163 687,46.47

Packing Materials Consumed 98,17.68 96,95.42

Materials Consumed TOTAL 799,50.60 784,41.89

Notes : [a] It is not practicable to furnish quantitative information in respect of individual items in view of the various types of pharmaceutical formulations.

[b] As the Company maintains its records in quantity only, the figures shown as consumption are balancing figures, ascertained on the basis of opening stock, purchases and closing stock.

[c] The above figures are after adjustment of excess and/or shortage ascertained on physical count and write off obsolete and other items.

XIV. Value of Indigenous/ Imported Materials Consumed

2009-2010 2008-2009

` in Lacs % ` in Lacs %

Indigenous 791,95.66 99.06 758,73.76 96.73

Imported [Excluding purchases on High seas basis] 7,54.94 0.94 25,68.13 3.27

TOTAL 799,50.60 100.00 784,41.89 100.00

XV. Value of Indigenous / Imported stores and spare parts consumed

2009-2010 2008-2009

` in Lacs % ` in Lacs %

Indigenous 3,09.37 98.35 1,58.60 99.06

Imported 5.18 1.65 1.50 0.94

TOTAL 3,14.55 100.00 1,60.10 100.00


Particulars

XVI. Expenditure in foreign currency[ ̀ in Lacs ]

2009-2010 2008-2009

Foreign traveling expenses 13.48 7.24

Exhibition expenses 11.13 14.72

Interest and other charges on Foreign Currency Loans 1,58.63 1,44.80

Technical know-how/Professional fees 5,10.96 34.92

TOTAL 6,94.20 2,01.68

XVII. Earnings in foreign currency[ ̀ in Lacs ]

Particulars 2009-2010 2008-2009

Interest Income 1.58 2,09.89

XVIII. Value of Imports on CIF Basis[ ̀ in Lacs ]

Particulars 2009-2010 2008-2009

Capital Goods [Including Advances] 32,00.92 25,72.02

Raw Materials, Stores and Spares 7,87.85 27,11.98

TOTAL 39,88.77 52,84.00

XiX. The Company operates in a single business segment viz. “Pharmaceutical Formulations” and therefore in the context of Accounting Standard No. 17, disclosure of segment wise information is not applicable.

XX. The Company does not possess information as to which of its suppliers are Ancillary Industrial Undertaking/Small Scale Industrial Undertakings holding permanent registration certificate issued by the Directorate of Industries of a State or Union Territory. Consequently the liability, if any, of interest which would be payable under 'The Interest on delayed payments to Small Scale and Ancillary Industrial Undertakings Act, 1993', cannot be ascertained. However, the Company has not received any claims in respect of such interest and as such, no provision has been made in the books of account.

XXI. In the opinion of the Board of Directors, the current assets and loans and advances have value on realisation at least equal to the amount at which they are stated in the Balance Sheet and provision for all known and determined liabilities is adequate and not in excess of amount reasonably required.

XXII.The unsecured loans, current liabilities, sundry debtors and loans and advances are subject to reconciliation.

XXIII.The previous year's figures have been regrouped, reclassified and recast wherever considered necessary.













I. Balance Sheet Dated March 31, 2010 Registration No. 11- 85410 State Code 11

II. Capital raised during the year

Public Issue N I L Rights Issue N I L Bonus Issue N I L Private Placement N I L

III. Position of Mobilisation and Deployment of Funds [ ̀ in Lacs]

Total Liabilities 1320,33 Total Assets 1320,33

Sources of funds Application of funds

Paid-up Capital * 19,34 Net Fixed Assets * * 765,15

Reserves & Surplus 337,94 Investments 36

Secured Loans 660,76 Net Current Assets 554,82

Unsecured Loans 266,01 Miscellaneous Expenditure N I L

Deferred Tax Liability 36,28

* Includes Equity Share Warrants Application money ̀ NIL [Previous Year 10,02 Lacs]* * Includes Capital Work In Progress of ̀ 60,74 Lacs [Previous Year 266,10 Lacs]

IV. Performance of Company [ ` in Lacs]

Profit Before TaxTurnover [Net] 1067,41 [including prior period and 120,00

net of extraordinary items]

Total Expenditure [Net] 947,41 Profit After Tax 86,18

Earning per share [ ̀ ] 44.56 Dividend Rate 22.50 %

V. Generic Names of Three Principal Products/service of Company [as per monetary Term]

Item Code No. [ITC Code] 3 0 0 3 3 9 - 0 0

Product Description Tablets - Formulations Oral Powders - Formulations

Capsules - Formulations Insta-use Suspension - Formulations

Dry Syrups - Formulations FFS - Water for Injetables

Liquid Orals - Formulations Liquid Injectables - Formulations

Ointments - Formulations Dry Powder Injectables - Formulations

BALANCE SHEET ABSTRACT AND COMPANY’S GENERAL BUSINESS PROFILE













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