MIRA INFORM REPORT

Report Date :

9^th May, 2006

IDENTIFICATION DETAILS

Name :	ALEMBIC LIMITED
Registered Office :	Alembic Road, Vadodara – 390 003, Gujarat, India
Country:	India
Financials as on:	31.03.2005
Date of Incorporation :	30^th July 1907
Com. Reg. No.:	04-33
IEC No.	0888002351
TAN No.:	BRDA00819A
PAN No.:	AABCA7950P
Legal Form :	Public Limited Liability Company The company's shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer of Bulk Drugs such as Penicillin, Broad Spectrum Antibiotics, Hydroxocobalamin, Drugs & Chemicals, Protinules, Hard Gelatine Capsules and Ethyl Alcohol, Formulations such as Tablets & Capsules, Injectables and Oral Preparations & Ointments and various others such as Electric Power Generator, Polypropylene Fibre and Multifilament Yarn.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 11000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having fine track. Available information indicates high financial responsibility of the company. Trade relations are fair. Payments are correct and as per commitments. The company can be considered good for any normal business dealings. It can be regarded as a promising business partner in medium to long run.

LOCATIONS

Registered Office :	Alembic Road, Vadodara – 390 003, Gujarat, India
Tel. No.:	91-265-2284074/75/2280550/2280880
Fax No.:	91-265-2280331/2228293/2281229
E-Mail :	alembic@alembic.co.in
Website :	http://www.alembic-india.com
Plants :	˜ Alembic Road, Vadodara- 390 003, Gujarat ˜ Panpharm (Formulation Division), Panelav, Taluka Halol, District Panchmahals – 389 350, Gujarat ˜ API Division, Panelav, Taluka Halol, District Panchmahals – 389 350, Gujarat ˜ Plot No. 112 & 121, Panchal Industrial Estate, Village Bhimpore, Daman – 396 210

DIRECTORS

Name :	Mr. Chirayu R. Amin
Designation :	Chairman & Managing Director
Address :	F-10/192, Race Course Circle, Vadodara – 390 007, Gujarat
Date of Birth/Age :	57 years
Qualification :	B. Sc., MBA
Experience :	31 years
Date of Appointment :	01.05.1983
Name :	Mrs. Malika C. Amin
Designation :	Wholetime Director
Address :	F-10/192, Race Course Circle, Vadodara – 390 007, Gujarat
Date of Birth/Age :	49 years
Qualification :	M.A.
Experience :	19 years
Date of Appointment :	02.07.1988
Name :	Dr. Babubhai R. Patel
Designation :	Director
Address :	Opp. Brahman Sabha Hall, Pradap Road,Vadodara – 390 001, Gujarat
Date of Birth/Age :	74 years
Qualification :	M.A., MRCP EDIN.
Experience :	44 years
Name :	Mr. Ranjitbhai R. Patel
Designation :	Director
Address :	“Shivam”, Old Padra Road, Vadodara – 390 015, Gujarat
Date of Birth/Age :	83 years
Qualification :	B. Com.
Experience :	41 years
Name :	Mr. Rajkumar Baheti
Designation :	Director & President (Finance)
Address :	Arihant Flats, 2^nd Floor, 27, Sevaknagar, Vadodara – 390 007, Gujarat
Date of Birth/Age :	44 years
Qualification :	B. Com., ACA, FCS
Experience :	23 years
Name :	Mr. Ramanlal M. Kapadia
Designation :	Director
Address :	49/50, Marti Mandir Society, Iskon Temple Road, Vadodara – 390 007, Gujarat
Date of Birth/Age :	68 years
Qualification :	M. Com.m LLB., DTP, FICWA, FCS, AIMA.DM
Experience :	43 years
Name :	Mr. Pranavbhai N. Parikh
Designation :	Director
Address :	Laxmi Mills Estate, D. Moses Road, Mahalaxmi, Mumbai – 400 011
Date of Birth/Age :	61 years
Qualification :	B. Com., Bus. Admn.
Experience :	36 years
Name :	Mr. K. G. Ramanathan
Designation :	Director
Address :	192, Jolly Maker 3, 119, Cuffe Parade, Mumbai – 400 005
Date of Birth/Age :	65 years
Qualification :	P G (Physics) & IAS
Experience :	41 years

KEY EXECUTIVES

Name :	Mr. Ramanlal M. Kapadia
Designation :	Director & Sr. Vice President (Management Services) and Company Secretary

MAJOR SHAREHOLDERS

Category	No. of Shares	% of Shares
Promoters and Associates	16,956,989	61.24
Mutual Funds and UTI	310,613	1.12
Banks, Financial Institution and Insurance Companies	652,591	2.35
Foreign Institutional Investors	1,452,396	5.25
Private Corporate Bodies	668,253	2.41
Indian Public	6,205,203	22.41
NRIs/OCBs	1,444,636	5.22
Any Other	300	0.00
TOTAL	27,690,981	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Bulk Drugs such as Penicillin, Broad Spectrum Antibiotics, Hydroxocobalamin, Drugs & Chemicals, Protinules, Hard Gelatine Capsules and Ethyl Alcohol, Formulations such as Tablets & Capsules, Injectables and Oral Preparations & Ointments and various others such as Electric Power Generator, Polypropylene Fibre and Multifilament Yarn.

PRODUCTION STATUS

The company's production capacity for the year ended 31^st March, 2005 was as under:

Class of Goods	Unit	Installed Capacity	Actual Production
Bulk Drugs and Chemical and Intermediates	MMU/MT	--	1757.201
Protinules	M.T	500.00	147.441
Formulations:
Tables and Capsules	Millions Nos.	4058.00	1552.511
Injectables	Millions Nos.	224.543	95.611
Oral Preparations and Ointments	M.T	9462.616	4893.280
Electric Power Generation	M.W.	17.60	--
Polypropylene Fibre	M.T.	--	--

GENERAL INFORMATION

No. of Employees :	4058
Bankers :	v Bank of Baroda, B\CBB, 101, Payal Complex, Sayajiganj, Vadodara, Gujarat v ABN-AMRO Bank N V, Vadodara, Gujarat v ICICI Bank Limited, Vadodara, Gujarat v IDBI Bank Limited, Vadodara, Gujarat v Indian Bank, Vadodara, Gujarat v Punjab National Bank, Vadodara, Gujarat v Union Bank of India, Vadodara, Gujarat v UTI Bank of India, Vadodara, Gujarat v Vijaya Bank, Vadodara, Gujarat v ING Bank NV, Vadodara, Gujarat v Vysya Bank, Vadodara, Gujarat
Facilities :	Rs. 170 millions including Funded Rs. 130 millions and Rs. 40 millions as Non- funded.

Banking Relations :	Good
Auditors :	K. S. Aiyar & Company Chartered Accountants
Address :	4^th Floor, Janmabhoomi Bhavan, 24-26, Janmabhoomi Marg, Fort, Mumbai - 400 001, Maharashtra
Associates/Subsidiaries :	v Alembic Glass Industries Limited v Purak Vinimay Limited v Paushak Limited v Shreno Limited v Light Publications Limited v Alembic Export Limited v Aavaran Limited v Algen Private Limited v Nirayu Private Limited v Whitefield Investment & Leasing Company Private Limited v Shreno Investment & Finance Limited v Sierra Investments Limited v Whitefield Chemtech Private Limited v PSU Chemicals Private Limited v Viramya Packlight Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
30,000,000	Equity Shares	Rs. 10/- each	Rs. 300.000 millions
2,000,000	Redeemable Cumulative Preference Shares	Rs. 100/- each	Rs. 200.000 millions

Issued, Subscribed Capital :

No. of Shares	Type	Value	Amount
27,692,854	Equity Shares	Rs. 10/- each	Rs. 276.929 millions

Paid up Capital:

No. of Shares	Type	Value	Amount
27,690,981	Fully Paid Equity Shares	Rs. 10/- each	Rs. 276.910 millions
	Add: Forfeited Equity Shares		Rs. 0.009 million
	TOTAL		Rs. 276.919 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004	31.03.2003
SHAREHOLDERS FUNDS
1] Share Capital		276.919	264.400	73.596
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2459.711	1863.400	1480.921
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2736.630	2127.800	1554.517
LOAN FUNDS
1] Secured Loans		1630.450	1459.900	1612.460
2] Unsecured Loans		402.431	543.000	635.487
TOTAL BORROWING		2032.881	2002.900	2247.947
DEFERRED TAX LIABILITIES		406.846	0.000	382.044
TOTAL		5176.357	4130.700	4184.508
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3153.221	2665.800	2223.703
Capital work-in-progress		0.000	116.400	0.000
INVESTMENT		286.756	136.800	110.191
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1177.299	849.300	892.146
	Sundry Debtors	1086.348	1157.200	1155.587
	Cash & Bank Balances	13.848	18.100	18.487
	Loans & Advances	507.776	701.700	538.455
Total Current Assets		2785.271	2726.300	2604.675
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	954.167	1418.200	745.834
	Provisions	94.724	96.400	39.520
Total Current Liabilities		1048.891	1514.600	785.354
Net Current Assets		1736.380	1211.700	1819.321
MISCELLANEOUS EXPENSES		0.000	0.000	31.293
TOTAL		5176.357	4130.700	4184.508

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Sales Turnover [including other income]	5351.439	6244.000	5752.577
Profit/(Loss) Before Tax	557.864	430.300	373.560
Provision for Taxation	39.700	117.700	58.343
Profit/(Loss) After Tax	518.164	312.600	315.217
Export Value	1059.130	1242.900	1177.711
Import Value	805.843	710.995	635.241
Total Expenditure	4934.755	5813.700	5583.100

QUARTERLY RESULTS

PARTICULARS	31.03.2006 [Full year]
Sales Turnover	6308.800
Other Income	126.200
Total Income	6435.000
Total Expenditure	5225.800
Operating Profit	1209.200
Interest	86.700
Gross Profit	1122.500
Depreciation	287.600
Tax	58.700
Reported PAT	785.200
Dividend (%)	500.000

2005-06 1^st Quarter:

Gross Sales includes Domestic Rs 1153.40 million Exports Rs 271.60 million Expenditure includes (Increase)/Decrease in stock in Trade Rs 100.00 million Consumption of Raw Material Rs 343.80 million Purchase of Finished Goods Rs 100.80 million Employees Cost Rs 155.50 million Excise Duty Rs 4.80 million Other expenditure Rs 440.90 million Tax indicate Provision for Current Tax & Fringe Benefit Tax Rs 12.10 million Deferred Tax Liability / (Asset) Rs 3.60 million EPS is Basic & Diluted Status of Investor Complaints for the quarter ended June 30, 2005 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 36 Complaints disposed off during the quarter 36 Complaints unresolved at the end of the quarter Nil 1. The above results, as reviewed by the Audit Committee, were approved by the Board of Directors at their meeting held on July 20, 2005. 2. The Company is engaged in Pharmaceutical business only and therefore, there is only one reportable segment in accordance with the Accounting Standard on Segment Reporting (AS 17). 3. Following the Hon'ble Supreme Court Judgement dated April 12, 2004, the Company on its own, calculated net amount payable after adjusting counter claims and offered to pay to ONGC Rs 29.347 million towards interest liability on delayed payment of price difference on gas supplied during the period from January 01, 1982 to January 29, 1987 (Pre-'87). ONGC is yet to respond to Company's offer. However, Company has provided this amount of Rs 29.347 million in its books during previous year. The principal amount of liability in respect of period January 30, 1987 to May 31, 1991 has been charged off in the past. The said amount was arrived at after considering the counter claims of the Company on ONGG regarding Royalty and Sales Tax on short liftment charges. No provision for interest in respect of period between January 30, 1987 to May 31, 1991 has been made, pending re-determination of liability by ONGC in line with Honorable Supreme Courts directive in judgement dated April 12, 2004 pertaining to pre-1987 period. 4. The Company has revalued some items of Plant and Machinery on a selective basis rather than for a class of assets as at April 01, 1997. Such selective application of revaluation is not in confirmity with Accounting Standard 10 on 'Accounting for Fixed Assets' prescribed by 'The Institute of Chartered Accountants of India' even though the accounting per se of such revaluation is as per accepted accounting practice. 5. The Statutory Auditor of the Company have carried out the Limited Review of the above result. 6. The figure of the previous quarter/year ended June 30, 2005 has been regrouped/rearranged wherever necessary to make it comparable with the current quarter.

2005-09 2^nd Quarter:

Gross Sales includes Domestic Rs 1627.70 million Exports Rs 346.10 million Expenditure includes (Increase)/Decrease in stock in Trade Rs 6.00 million Consumption of Raw Material Rs 590.40 million Purchase of Finished Goods Rs 208.10 million Employees Cost Rs 156.00 million Excise Duty Rs 21.40 million Other expenditure Rs 527.10 million Tax indicate Provision for Deferred Tax Liability / (Asset) Rs 7.90 million Current Tax & Fringe Benefit Tax Rs 28.90 million EPS is Basic & Diluted Status of Investor Complaints for the quarter ended September 30, 2005 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 25 Complaints disposed off during the quarter 25 Complaints unresolved at the end of the quarter Nil 1. The above results, as reviewed by the Audit Committee, were approved by the Board of Directors at their meeting held on October 26, 2005. 2. The Company is engaged in Pharmaceutical business only and therefore, there is only one reportable segment in accordance with the Accounting Standard on Segment Reporting (AS 17). 3. Following the Honble Supreme Court Judgment dated April 12, 2004, the Company on its own, calculated net amount payable after adjusting counter claims and offered to pay to ONGC Rs 29.347 million towards interest liability on delayed payment of price difference on gas supplied during the period from January 01, 1982 to January 29, 1987 (Pre-?87). ONGC is yet to respond to Companys offer. However, Company has provided this amount of Rs 29.347 million in its books during previous year. The principal amount of liability in respect of period January 30, 1987 to May 31, 1991 has been charged off in the past. The said amount was arrived at after considering the counter claims of the Company on ONGG regarding Royalty and Sales Tax on short liftment charges. No provision for interest in respect of period between January 30, 1987 to May 31, 1991 has been made, pending re-determination of liability by ONGC in line with Honorable Supreme Courts directive in judgment dated April 12, 2004 pertaining to pre-1987 period. 4. The Company has revalued some items of Plant and Machinery on a selective basis rather than for a class of assets as at April 01, 1997. Such selective application of revaluation is not in conformity with Accounting Standard 10 on ''Accounting for Fixed Assets'' prescribed by ''The Institute of Chartered Accountants of India'' even though the accounting per se of such revaluation is as per accepted accounting practice. 5. The Statutory Auditor of the Company have carried out the Limited Review of the above result. 6. The figure of the previous quarter/period ended September 30, 2005 has been regrouped/rearranged wherever necessary to make it comparable with the current quarter

2005-12 3^rd Quarter

EPS is Basic & Diluted Status of Investor Complaints for the quarter ended December 31, 2005 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 38 Complaints disposed off during the quarter 38 Complaints unresolved at the end of the quarter Nil 1. The above results were reviewed by the Audit Committee and were approved by the Board of Directors at their meeting held on January 20, 2006. The Statutory Auditors of the Company have carried out the Limited Review of the above results. 2. The Company is engaged in Pharmaceutical business only and therefore, there is only one reportable segment in accordance with the Accounting Standard on Segment Reporting (AS 17). 3. Following the Hon'ble Supreme Court Judgment dated April 12, 2004, the Company on its own, calculated net amount payable after adjusting counter claims and offered to pay to ONGC Rs 29.347 million towards interest liability on delayed payment of price difference on gas supplied during the period from January 01, 1982 to January 29, 1987 (Pre-'1987). ONGC is yet to respond to Company's offer. However, Company has provided this amount of Rs 29.347 million in its books during previous year ending March 31, 2005. The principal amount of liability in respect of period January 30, 1987 to May 31, 1991 has been charged off in the past. The said amount was arrived at after considering the counter claims of the Company on ONGG regarding Royalty and Sales Tax on short liftment charges. No provision for interest in respect of period between January 30, 1987 to May 31, 1991 has been made, pending re-determination of liability by ONGC in line with Honorable Supreme Courts directive in judgment dated April 12, 2004 pertaining to pre-1987 period. 4. The Company has revalued some items of Plant and Machinery on a selective basis rather than for a class of assets as at April 01, 1997. Such selective application of revaluation is not in conformity with Accounting Standard 10 on 'Accounting for Fixed Assets' prescribed by 'The Institute of Chartered Accountants of India' even though the accounting per se of such revaluation is as per accepted accounting practice. 5. The figure of the previous quarter/period ended December 31, 2004 and for the year ended March 31, 2005 has been regrouped/rearranged wherever necessary to make it comparable with the current quarter/period.

2006-12 [Full year]

Gross Sales Includes Domestic Rs 1027.40 million Exports Rs 461.90 million Expenditure Includes (Increase)/Decrease in stock in Trade Rs (129.90) million Consumption of Raw Material & Packing Material Rs 607.20 million Purchase of Finished Goods Rs 177.80 million Employees Cost Rs 171.40 million Excise Duty Rs 7.20 million Other Expenditure Rs 405.20 million Tax Includes Provision for Deferred Tax Liability / (Asset) Rs (25.60) million Current Tax & Fringe Benefit Tax Rs 14.80 million Income Tax of earlier years written back Rs (1.90) million EPS is Basic & Diluted Status of Investor Complaints for the quarter ended March 31, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 37 Complaints disposed off during the quarter 37 Complaints unresolved at the end of the quarter Nil 1. The above audited results, were reviewed by the Audit Committee, and were approved by the Board of Directors at their meeting held on April 26, 2006. 2. The Board has recommended dividend on Equity Shares at Rs 5/- per share i.e. @ 50% for the year ended on March 31, 2006. 3. The Company is engaged in Pharmaceutical business only and therefore, there is only one reportable segment in accordance with the Accounting Standard on Segment Reporting (AS 17). 4. Following the Hon'ble Supreme Court Judgment dated April 12, 2004, the Company on its own, calculated net amount payable after adjusting counter claims and offered to pay to ONGC Rs 29.347 million towards interest liability on delayed payment of price difference on gas supplied during the period from January 01, 1982 to January 29, 1987 (Pre-1987). The Company has provided this amount of Rs 29.347 million in its books during previous year ending March 31, 2005. the discussions with ONGC are on to settle pre -1987 liability. However, the Company has not yet received any final communication in this regard. The principal amount of liability in respect of period January 30, 1987 to May 31, 1991 has been charged off in the past. The said amount was arrived at after considering the counter claims of the Company on ONGG regarding Royalty and Sales Tax on short liftment charges.No provision for interest in respect of period between January 30, 1987 to May 31, 1991 has been made, pending re-determination of liability by ONGC in line with Honorable Supreme Courts directive in judgment dated April 12, 2004 pertaining to pre-1987 period. 5. The Company has revalued some items of Plant and Machinery on a selective basis rather than for a class of assets as at April 01, 1997. Such selective application of revaluation is not in conformity with Accounting Standard 10 on Accounting for Fixed Assets prescribed by The Institute of Chartered Accountants of India even though the accounting per se of such revaluation is as per accepted accounting practice. 6. The figure have been regrouped / rearranged wherever necessary to make it comparable with the current quarter / year.

KEY RATIOS

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Debt Equity Ratio	0.86	1.36	1.42
Long Term Debt Equity Ratio	0.48	0.77	0.80
Current Ratio	1.15	1.45	1.38
TURNOVER RATIOS
Fixed Assets	1.24	1.89	2.14
Inventory	5.60	6.94	7.45
Debtors	5.60	5.14	6.89
Interest Cover Ratio	4.04	1.97	2.20
Operating Profit Margin (%)	16.20	15.09	15.54
Profit Before Interest and Tax Margin (%)	11.69	11.13	12.83
Cash Profit Margin (%)	13.64	7.75	9.06
Adjusted Net Profit Margin (%)	9.13	3.78	6.35
Return on Capital Employed (%)	15.17	16.31	21.57
Return on Net Worth (%)	21.99	12.94	25.69

STOCK PRICES

Face Value	Rs. 10.00
High	Rs. 252.00
Low	Rs. 242.00

LOCAL AGENCY FURTHER INFORMATION

HISTORY:

Subject was incorporated on 30^th July 1907 at Vadodara in Gujarat under the name and style of Alembic Chemical Works Company Limited having Company Registration Number 33. Subsequently, the name of the company was changed to present during August 1999. Company has already completed 80 years of operations. Company makes Glycodin, a most popular cough syrup for over 50 years.

The company’s IEC No. is 0888002351.

The company was originally engaged in manufacturing chemicals, liquors, etc. However, from 1950's onwards, it ventured into pharmaceutical business, in the production of bulk drugs.

The company changed its name for truly reflecting the pharmaceutical nature of business being carried out and in the nominal value of equity shares from existing Rs. 100 per equity share to Rs. 10 per equity share.

In 1970, the company commenced the production of two antibiotics (streptomycin, erythromycin). The hard gelatine capsules manufacturing plant was commissioned in 1972. In 1989-90, the Panpharm division was started at Panelav (Gujarat) to undertake manufacture of formulations. Subject entered the field of veterinary and animal healthcare during 1986-87. The company has also added a new unit for the manufacture of bulk drugs by the acquisition of manufacturing facilities of Darshak Limited.

In 1995, the veterinary division of the company was tied up with the animal health division of Hindustan Ciba-Giegy to export eight veterinary products to Ciba (Bangladesh).

In 1998-99, the installation work of Cephalosporin-C recovery plant has been completed and that of 7-ACA was commissioned in October 2000.

The Bulk Drug unit of Darshak Limited was amalgamated with the company with the approval of High court of Gujarat and the legal formalities was also completed w.e.f. 16.09.2002. As per the scheme, the shareholders of Darshak Limited was allotted shares in the ratio of 6 shares of company for every 100 shares of Darshak Limited. The company has got the ISO 9002 and ISO 14001 certification during 2002-03.

The company has expanded the installed capacity of Tablets and Capsules in the year 2003. It has increased the installed capacity by 255.000 millions (nos.) and consequently the total capacity of Tablets has been increased to Rs. 2413.000 millions (nos.).

The company has finished a major business-restructuring plan under which it will create a new division for cardiovascular and diabetic drugs while hiving of some odd brands into a franchisee company for their marketing. The company has introduced novel anti diabetic product Nateglinide in the brand name of NATELIDE. The company plans to set up R & D Centre at Vadodara covering 7500 square meters. The facility would consist of Chemistry, Analytical and Biological Laboratories. In order to make more significant in generic market and also to make it US FDA qualified the company made investment at its Panelav plant. This facility was expected to be inspected in the first quarter of 2004.

Milestone

1907

Alembic Chemical Works Co. Ltd. is started, primarily engaged in the manufacture of Tinctures and Alchohol at Baroda.

1909

French Distillery plant for pharmaceutical purposes installed at Baroda.

1940

Started manufacturing Alembics famous Cough syrup, Vitamins, Tonics and Sulphur Drugs.

1945

Alembic Glass · 1952 Research and Development activity begins

1961

The Late Shri Lal Bahadur Shastri, former Prime Minister of India, inaugurates the Penicillin Plant.

1962

Shreno (M/C & EQUIP MFG)

1967

Bulk Manufacturing of Vitamin B12 by fermentation starts off using know-how from Pierell Company, Italy.

1968

Streptomycin was formulated for the first time

1969

Paushak (Phosgene Chemicals)

1971

Erythromycin was manufactured for the first time using expertise from Eli Lilli-USA.

1972

Launched a brand of Erythromycin- "Althrocin"

A landmark accomplishment of manufacturing Kanamycin by fermentation. Alembic enjoys the status of being the only basic manufacturer of this product in India, under the guidance of MEIJI SEIJA, Japan.

1975

Started the manufacturing of Erythromycin and its Derivatives. · 1975 Our R&D facilities were approved by DSIR, GOI.

1983

Started the large-scale production of 6-APA using immobilized enzymes.

1985

Entry made into Specialty Chemicals

1992

Received First Chemexcil Award Roxythromycin Bulk Production Commercialized

1994

Azithromycin Bulk Production Commercialized

1997

Clarithromycin Bulk Production Commercialized Launched Roxid Liquid- The first of its kind in the world · 1997 Set up a new Facility for Synthetic Organic API's.

Received award for "Excellence in Environment Preservation and Pollution Control" by the Federation of Gujarat Industries (FGI)

1998

Launched Azithral Liquid- The first of its kind in the world

1999

Achieved ISO 9002 Certification for its Manufacturing Facility in Baroda.

2000

Achieved ISO 14001 Certification for its Manufacturing Facility in Baroda.
Shri Suresh Prabhu- Union Minister For chemicals and Fertilizers, GOI inaugurates the Cephalsoporin-C Facility by

Launched the Generic Division.

2001

CO'S ( Certificate of Suitablity ) issued by EDQM for Roxithromycin.
Launched Cephalsoporin Bulk Active.

BUSINESS

Subject is engaged in Manufacturing of Bulk Drugs such as Penicillin, Broad Spectrum Antibiotics, Hydroxocobalamin, Drugs & Chemicals, Protinules, Hard Gelatine Capsules and Ethyl Alcohol, Formulations such as Tablets & Capsules, Injectables and Oral Preparations & Ointments and various others such as Electric Power Generator, Polypropylene Fibre and Multifilament Yarn.

Generic Names of Three Principal Products of the Company are:

Item Code No. (ITC Code)	300420 03
Product Description	Erythromycin Formulations
Item Code No. (ITC Code)	300410 00
Product Description	Penicillin & Combination Formulations
Item Code No. (ITC Code)	300420 03
Product Description	Roxithromycin Formulations

OPERATIONS:

The Company's Gross Sales including export incentives were Rs. 5724.200 millions for the year ended 31st March, 2005 as compared to Rs. 6138.200 millions for the previous year.  

 API sales decreased by 25% due to depressed Penicillin G prices and fall in other API prices. The domestic formulations sales for the quarter ended on 31.03.2005 was lower by almost 16% due to VAT related issues. 

 The profit before interest, depreciation, non-recurring expenses and taxes was Rs.933.900 millions for the year under review as compared to Rs. 865.800 millions for the previous year. The growth in profit is due to better product mix in formulations, cost reduction and improvement in operational efficiency. 

 During the year, the interest and financing cost has been substantially reduced by 24.47% to Rs.121.600 millions as compared to Rs.161.000 millions in the previous year, due to better financial management. 

 (i) Domestic Formulation Sales: 

 Sales of domestic formulations for the year ended 31st March, 2005 is Rs.3642.700 millions as compared to Rs.3614.800 millions for the previous year ended on 31st March, 2004. 

 In the Indian Pharma industry, pricing has gained eminence in the recent past. The negative price impact has become more pronounced in the market place in last three years. Your Company is no exception to that. As many as four recent introductions, viz. Etrik (Etoricoxib), Vacox (Valdecoxib), Aldinir (Cefdinir), Cepime (Cefepime) had to undergo downward price revision affecting the topline as well as bottomline. 

 Realizing the fact that acute therapies, which account for 76% of the business turnover of the industry is not the growth driver today in general. your Company is also seriously pursuing a very meaningful participation in the chronic therapy area by rejuvenating the Specia operation through strategic interventions. 

 (ii) Export Formulations: 

 The sales of formulations export was Rs.418.600 millions for the year ended 31st March, 2005 as compared to Rs. 401.400 millions in the previous year ended 31st March, 2004. The International formulations posted a growth of over 3% in the branded formulations while the NSA sales declined. To cater to the regulated markets of U.K., Germany, South Africa and Canada, your Company's Panelav facility has been approved by MCCSouth Africa, MHRC-U.K. and Canada. 

 (iii) Domestic API Sales: 

 In order to capitalize on the growing generic market opportunities in Europe and USA, a state-of-the-art facility which was conceived, is now fully commissioned and operational. This facility has been approved by USFDA and European Directorate of Quality Medicine (EDQM). 

 (iv) Export API: 

 The domestic sales of API was Rs.815.400 millions for the year ended on 31st March, 2005 as compared to Rs.1085.900 millions for the previous year. 

DE-LISTING OF SHARES: 

 The Company's equity shares are delisted from the Vadodara Stock Exchange Ltd. (VSE) with effect from 14th March, 2005. The equity shares of the Company continue to be listed on the The Stock Exchange, Mumbai (BSE) and National Stock Exchange of India Limited (NSE). 

Company profile

Subject is the flagship company of the Alembic Group. Corporate office & manufacturing unit are located in the heart of Baroda City amidst green ambience, 400 kms north of Mumbai. The sprawling Alembic complex is spread over a land area of around 300,000 square meter with built-up area of 90,000 square meter. Having been awarded the prestigious ISO-9002 & ISO-14001 Certification for manufacturing & marketing of active pharmaceutical ingredients & finished dosage forms for domestic and international markets, Alembic Limited is well-equipped with WHO-GMP accredited production facility. This speaks of its total commitment to quality and continuous improvement in its product and services.

The company exports its products to Albania, Algeria, Argentina, Bangladesh, Bolivia, Brazil, Bulgaria, Cambodia, Canada. Chile, China, Columbia, Costa Rica, Denmark, Dominican Rep., Egypt, El Salvador, Ethiopia, Georgia, Germany, Greece, Guatemala, Honduras, Hong Kong, Indonesia, Iran, Israel, Italy, Jamaica, Jordan, Kenya, Lesotho, Madagascar, Malawi, Malaysia, Maldives, Mali, Mauritius, Mexico, Moldavia, Morocco, Mozambique, Myanmar, The Netherlands, Nicaragua, Nigeria, North Korea, Oman, Pakistan, Paraguay, Peru, Philippines, Poland, Portugal, Russian Fed., Saudi Arabia, Singapore, South Korea, Spain, Sri Lanka, Sudan, Swaziland, Switzerland, Taiwan, Tanzania, Thailand, Trinidad, Tobago, Turkey, Uganda, Ukraine, United Kingdom, Uruguay, USA, United Arab Emirates, Uzbekistan, Venezuela, Vietnam, White Russia, Yemen, Zambia and Zimbabwe.

It imports drugs, pharmaceuticals, chemicals and drug intermediates from China, Japan, Germany, USA, Italy, Spain, UK, Australia, etc.

It purchases against L/C or Credit (90 to 120 days) terms.

It sells against L/C or Credit (90 days) terms.

The company has been accredited with ISO 9002 and ISO 14001 Certification.

The company is in trade terms with:

v Alex Packaging Limited

v Steelart Engineering Private Limited

v J K Melt Products Private Limited

v Rushabh Industries

v Shreyas Chemical

v Swan Sales Corporation

v Surat Ammonia Supply Company

v Conserve Watercare Private Limited

v Dinesh Pharmaceuticals Private Limited

v Desai Enterprises

v M. Apotheke Private Limited

v Ven-Petrochem and Pharma (India) Private Limited

v Shree Ajitnath Caps.

v S R Enterprise

The company is negotiating with leading generic manufacturers to join them as associate suppliers.

As a part of its plan to foray into the multimillion dollar generic market, the company has decided to double the capacity of its formulation plant from 30 m to 60 m solid oral dosages in the first phase and in the second phase, the formulation plant technology would be upgraded to match the European Union standards set by Medicine Control Centre and Medicine Control Agency in UK and Therapeutic Goods Agency in Australia.

The company has finalised a major business-restructuring plan under which it will create a new division for cardiovascular and diabetic drugs while having of some odd brands into a franchisee company for their marketing.

The company's fixed assets of important value includes Freehold Land, Pharma & Other Building, Employees Quarters, Pharma & Other Plant & Machinery, Railway Siding, Furniture & Fixtures, Office Equipments and Vehicles.

CMT REPORT [Corruption, Money laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 45.30
UK Pound	1	Rs. 78.45
Euro	1	Rs. 54.88

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions