MIRA INFORM REPORT

Report Date :

9^th May 2006

IDENTIFICATION DETAILS

Name :	LUPIN LIMITED
Formerly known as :	LUPIN LABOARATORIES LIMITED
Registered Office :	159, C.S.T. Road, Kalina, Santacruz (East), Mumbai - 400 098, Maharashtra, India
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	11^th March 1983
Com. Reg. No.:	11-29442
TAN No.: (Tax Deduction & Collection Account No.)	MUML04496C
PAN No.: (Permanent Account No.)	AAACL1069K
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturers of Bulk Drugs and Formulations.

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 22000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. The company is controlled, financed and managed by Mr. Deshbandhu Das Gupta and his nominees. Available information indicates high financial responsibility of the company. The company’s financial position is satisfactory. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	159, C.S.T. Road, Kalina, Santacruz (East), Mumbai - 400 098, Maharashtra, India
Tel. No.:	91-22-26931001 / 26526391 / 26528311
Fax No.:	91-22-26540484 / 26114008
E-Mail :	lupincorporate@lupinindia.com
Website :	http://www.lupingroup.com http://www.lupinindia.com
Plants :	Located at: Ankleshwar, Aurangabad, Tarapur and Mandideep. · T-142 MIDC Industrial Estate, Tarapur Industrial Area, Boisar, District Thane, Maharashtra · 198-202, New Industrial Area II, Mandideep, District Raisen, Madhya Pradesh – 462 046 · 211, New Industrial Area II, Mandideep, District Raisen, Madhya Pradesh – 462 024 · 124, GIDC Industrial Estate, Ankleshwar, Gujarat – 393 002 · A28/1, MIDC Area, Chikalthana, Aurangabad, Maharashtra – 431 001 · B-15 Phase I-A Verna Industiral Area, Verma Salcette, Goa – 403 722
Corporate Office :	159, C.S.T. Road, Kalina, Santacruz (East), Mumbai - 400 098, Maharashtra, India.
Tel. No.:	91-22-26931001 / 26526391 / 26528311
Fax No.:	91-22-26540484 / 26114008
R & D Park :	Survey No. 46 A/47A, Nande Village, Mulshi Taluka, District Pune - 411042, Maharashtra
Overseas Offices :	Located at USA, UK, Russia and China.
Branches :	Located at: Investor Services Cell 159, C.S.T. Road, Kalina, Santacruz (East), Mumbai - 400 098, Maharashtra, India Tel. No. 91-22-26931001 / 26526391 / 26528311 Fax. No. 91-22-26540484 / 26114008 Research Park's Survey No. 46/A and 47/A, Nande Village, Mulshi Taluka, Dist. Pune, Maharashtra

DIRECTORS

Name :	Mr. D. B. Gupta
Designation :	Chairman & Managing Director
Date of Birth/Age :	08.02.1938
Qualification :	M.Sc.
Experience :	37 years
Date of Appointment :	11.07.1972
Name :	Mrs. M. D. Gupta
Designation :	Executive Director
Date of Birth/Age :	22.09.1943
Qualification :	B.A.
Experience :	31 years
Date of Appointment :	11^th July, 1972
Name :	Mrs. Vinita Gupta Sharma
Designation :	Executive Director
Date of Birth/Age :	05.03.1968
Qualification :	Pharmacy Graduate, MBA
Date of Appointment :	17.08.2001
Name :	Mr. P. K. Kaul
Designation :	Director
Date of Birth/Age :	03.07.1929
Qualification :	B.Sc., M.A. (Eco.), MS – Public Administration.
Date of Appointment :	15.02.1992
Name :	Mr. K. U. Mada
Designation :	Director
Date of Birth/Age :	29-12-1933
Qualification :	M.A., Ph.D. (Eco.), Financial Management Certificate from Jamnalal Bajaj Institute of Management Studies.
Date of Appointment :	27-06-2001
Name :	Dr. D. P. Sinha
Designation :	Director
Name :	Mr. D. K. Contractor
Designation :	Director
Name :	Mr. M. Parameswaran
Designation :	Director (UTI Nominee)
Name :	Mr. P. Ojha
Designation :	Director (IDBI Nominee from 20.09.2001)

KEY EXECUTIVES

Name :	Mr. Kiran N. Bade
Designation :	Company Secretary

MAJOR SHAREHOLDERS

Category	No. of Shares	(%) of Shares
Promoters	21,077,599	52.51 %
Mutual Funds	2,266,094	5.65 %
Financial Institutions/Banks/Insurance Cos.	120,663	0.30 %
Foreign Institutional Investors	6,835,916	17.03 %
Foreign Bodies (FIPB route)	5,037,713	12.55 %
Non Resident Indians	65,460	0.16 %
Public	4,737,689	11.80 %
Total	40,141,134	100.00 %

BUSINESS DETAILS

Line of Business :	Manufacturers of Bulk Drugs and Formulations.
Products :	· Rcinex · AKT 4 · Rcin · Ceff · Odoxil · Optineuron · Lipril · Cetil · Pyzina · Combutol · AKT 3 · Tonact · Ramistar · Ramiastar A · Doxcefr · Valent · Cef 4 · Ceff ER · Novapime · L Cin · Co-Q-Dent · Gatispanm · Abel · Valent · Starcet · Tegaspa · Cluconorm SR · Gluconorm G1 & G2 · Gluconorm P15 & P30 · Clopitab A · Cyclorin · Efficin · Praxis
Imports from :	China and Europe

PRODUCTION STATUS

The company's production status as on 31^st March 2005 was as under:-

Classification	Unit	Installed Capacity	Actual Production
Tablets	No. in Millions	1530.00	1096.00
Liquids	Kilo-Litres	3216.00	339.20
Capsules	No in Millions	446.000	292.800
Injections:
- Liquids	Kilo-Litres	42.00	84.70
- Vials	No in Millions	12.000	20.40
Creams & Powder	MT	403.000	335.20
Inhalers	No. In million	--	1.3
Bulkdrugs & Intermediates	MT	3044.32	2765.700

GENERAL INFORMATION

Suppliers :

• Laxmi Industries
• Shree Packers
• Online Packaging
• Agarwal Paper Products
• Anand Packaging Industry
• Industrial Packaging
• Shree Packers
• Jain Carton Industries Pvt Ltd
• Kailash corrugators Pvt Ltd
• Novex Poly films Pvt Ltd
• Triumph Pack Pvt Ltd
• Reliance Packaging Industries
• Novel Packaging Industries
• Nandi Packers
• Perfect Packaging Industries
• Aadarsh Offset Pvt Ltd
• Aakar Printers
• Adit Pharma Pvt Ltd
• Anit Packaging
• Associated Capsules Pvt Ltd

No. of Employees :

4000

Bankers :

· Central Bank of India

Shiv Chhaya Co-operative Housing Society Limited, M. V. Road, Andheri (East), Mumbai – 400 069, Maharashtra

· State Bank of India, Mumbai, Maharashtra

· Bank of Baroda

Foreign Exchange Bills Department, Nariman Point, Mumbai – 400 021

· Citibank N.A.

293, Dr. D. N. Road, Mumbai – 400 001, Maharashtra

· Syndicate Bank, Mumbai, Maharashtra.

· Punjab National Bank, Mumbai, Maharashtra.

· UTI Bank Limited, Mumbai, Maharashtra.

· The Federal Bank Limited, Mumbai, Maharashtra.

· Dena Bank, Mumbai, Maharashtra.

Facilities :

(Rs. in millions)

SECURED LOANS	31.03.2005
Debentures	120.000
Term Loans from Financial Institutions/Banks	940.800
Working Capital Loans from Banks	2745.500
Total	3806.300
UNSECURED LOANS
Fixed Deposits	385.300
Deferred Sales Tax Liabilities	53.900
Interest Free loan from CSIR	160.900
Total	600.100

Banking Relations :	Good
Auditors :	S .S. Kapoor & Company Chartered Accountants
Address :	Mumbai, Maharashtra
Associates :	· Badhira Leasing & Finance Private Limited · Bharat Steel Fabrication & Engineering Works · Croptech Chemicals (India) Private Limited · D. B. Estate · D. B. Promoters · Enzal Chemicals (India) Limited · Frigid Leasing & Finance Limited · Goodyear Investment Private Limited · Khandelwal Estates Private Limited · Lotus Corporation (taken over by Novamed Pharmaceuticals Private Limited w.e.f. 1^st October, 2003) · Lovin Care Products Private Limited · Lupin Human Welfare & Research Foundation · Lupin International Private Limited · Lupin Investment Private Limited · Lupin Marketing Private Limited · Lupin Performance Chemicals Limited · Lupin Real Estates Limited · Lupin Securities Limited · Matashree Gomati Devi Jana Seva Nidhi · Novamed Pharmaceuticals Private Limtied · Pipleswar Holdings Private Limited · Polynova Industries Limited · Pranik Landmark Associates · Rahas Investments Private Limited · Samiksh Investment Private Limited · Santosh Leasing Private Limited · Synchem Chemicals (I) Private Limited · Timita Leasing & Finance Private Limited · Varija Leasing & Finance Private Limited · Vishtosh Investments & Finance Private Limited · Visiomed (India) Private Limited · Yogini Leasing & Finance Private Limited · Zuari Leathers Private Limited · Zyma Laboratories Private Limited · Alpha Corporation · Apposite Trading Company · Atlantic Trading Corporation · High Tech Commercial · Luxury International Private Limited · Wellworth Laboratories
Subsidiaries :	· Lupin Chemicals (Thailand) Limited · Lupin Laboratories South Africa (Pty.) Limited · Lupin Pragati Limited, Russia · Lupin Pharmaceuticals Inc., USA · Lupin Hong Kong Limited · Lupin Holdings S.A., Luxembourg
Membership :	· Confederation of Indian Industry

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
50,000,000	Equity Shares	Rs. 10/- each	Rs. 500.000 millions
1,500,000	Redeemable Preference Shares	Rs. 100/- each	Rs. 150.000 millions
	TOTAL		Rs. 650.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
40,141,134	Equity Shares	Rs. 10/- each	Rs. 401.400 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	401.400	401.400	401.400
2] Reserves & Surplus	4603.600	4078.900	3422.300
NETWORTH	5005.000	4480.300	3823.700
LOAN FUNDS
1] Secured Loans	3806.300	2865.500	4878.500
2] Unsecured Loans	600.100	905.600	996.400
TOTAL BORROWING	4406.400	3771.1	5874.9
DEFERRED TAX LIABILITIES	934.400	941.700	895.500
TOTAL	10345.800	9193.100	10594.100
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]	5589.400	5172.100	4856.500
Capital work-in-progress	698.100	171.700	107.200
INVESTMENTS	93.700	89.100	85.100
CURRENT ASSETS, LOANS & ADVANCES
Inventories	2480.800	2153.000	1418.600
Sundry Debtors	2353.900	2158.300	3387.800
Cash & Bank Balances	177.800	150.400	147.900
Loans & Advances	1726.200	1999.800	2997.200
Total Current Assets	6738.700	6461.500	7951.500
Less :
Current Liabilities	2374.300	2008.800	1830.500
Provisions	399.800	692.500	575.700
Total Current Liabilities	2774.100	2701.300	2406.200
Net Current Assets	3964.600	3760.200	5545.300
TOTAL	10345.800	9193.100	10594.100

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Sales Turnover [including other income]	11799.000	11950.500	9598.600
Profit/(Loss) Before Tax	852.700	1996.200	970.600
Provision for Taxation	9.100	1045.300	239.900
Profit/(Loss) After Tax	843.600	950.900	730.700
Export Value	5695.200	5764.300	4143.900
Import Value	2729.400	2746.700	2224.600
Total Expenditure	10946.300	9954.300	8628.000

QUARTERLY RESULTS

Particulars	30.06.2005 [1^st Quarter]	30.09.2005 [2^nd Quarter]	31.12.2005 [3^rd Quarter]
Sales Turnover	3521.100	4050.900	4269.000
Other Income	129.600	89.200	96.100
Total Income	3650.700	4140.100	4365.100
Total Expenditure	2903.200	3377.600	3693.200
Operating Profit	747.500	762.500	671.900
Interest	65.200	64.100	78.700
Gross Profit	682.300	698.400	593.200
Depreciation	91.100	97.600	100.800
Tax	153.500	139.300	31.100
Reported PAT	431.500	451.900	441.900

200506 Quarter 1 –

Expenditure Includes Increase in Stock in Trade Rs (74.80) million Consumption of Raw & Packing Materials Rs 1333.80 million Purchase of Traded Goods Rs 396.00 million Staff Cost Rs 326.70 million Manufacturing & Other Expenses Rs 921.50 million Tax Includes Provision for Current Tax Rs 143.00 million Deferred Tax Rs 6.20 million Fringe Benefit Tax Rs 10.50 million EPS is Basic 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 24 Complaints disposed off during the quarter 24 Complaints unresolved at the end of the quarter Nil 1. The above financial results as reviewed by the Audit Committee, have been taken on record by the Board of Directors at its adjourned meeting hold on August 02, 2005, The statutory auditors of the Company have carried out the limited review of the above results pursuant to clause 41 of the Listing Agreement. 2. The Company operates solely in the pharmaceutical segment. 3. The aggregate amount of Research and Development Expenditure incurred and shown in the respective heads of account is as under: Quarter ended June 30, 2005 Rs 187.50 million 4. The figures for the corresponding previous period have been regrouped, wherever necessary, to correspond with the figures of the current period.

200509 Quarter 2 –

EPS is Basic 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 48 Complaints disposed off during the quarter 48 Complaints unresolved at the end of the quarter Nil 1. The above financial results as reviewed by the Audit Committee, have been taken on record by the of Directors at its meeting held on October 19, 2005. The statutory auditors of the Company have carried out the Limited Review of the above results pursuant to clause 41 of the Listing Agreement. 2. The Company operates solely in the pharmaceutical segment. 3. The aggregate amount of Research and Development Expenditure incurred and shown in the respective heads of account is as under: Rs in Million:- Quarter ended 30.09.2005 Rs.230.80 Quarter ended 30.09.2004 Rs.202.20 Half Year ended 30.09.2005 Rs.418.30 Half Year ended 30.09.2004 Rs.389.60 Accounting Year ended 31.03.2005 797.70 4. Other Income Includes Rs 39.80 million on account of Insurance claims admitted by the Insurance company towards destruction of fixed assets and inventories of the Company, located at Mumbai, due to the floods which occurred in July, 2005. 5. The figures for the previous periods have been regrouped, wherever necessary, to correspond with the figures of the current period.

200512 Quarter 3 –

EPS is Basic 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 24 Complaints disposed off during the quarter 24 Complaints unresolved at the end of the quarter Nil 1. The above financial results as reviewed by the Audit Committee, have been taken on record by the Board of Directors at its meeting held on January 28, 2006. The statutory auditors of the Company have carried out a Limited Review of the above results pursuant to Clause 41 of the Listing Agreement. 2. The Company operates solely in the pharmaceutical business and hence has only one primary reportable segment. 3. The aggregate amount of Research and Development Expenditure incurred and shown in the respective heads of account is as under: Quarter ended December 31, 2005 Rs 275.10 million 4. The Company, on January 06, 2006 issued Zero Coupon Foreign Currency Convertible Bonds (FCCB) aggregating US $ 100 million. Effective January 09, 2006, these bonds are listed on the Singapore Stock Exchange. 5. The figures for the previous periods have been regrouped, wherever necessary, to correspond with the figures of the current period.

KEY RATIOS

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Debt Equity Ratio	0.86	1.24	1.77
Long Term Debt Equity Ratio	0.37	0.72	1.18
Current Ratio	1.10	1.34	1.58
TURNOVER RATIOS
Fixed Assets	1.79	1.97	1.83
Inventory	5.23	6.74	7.02
Debtors	5.37	3.89	2.75
Interest Cover Ratio	4.12	4.89	2.53
Operating Profit Margin (%)	12.03	23.34	18.53
Profit Before Interest and Tax Margin (%)	9.29	20.93	16.02
Cash Profit Margin (%)	9.70	14.58	9.80
Adjusted Net Profit Margin (%)	6.96	12.17	7.30
Return on Capital Employed (%)	12.75	27.10	16.05
Return on Net Worth (%)	17.79	35.27	20.30

STOCK PRICES

Face Value	Rs. 10/-
High	Rs. 1257.00/-
Low	Rs. 1225.00/-

LOCAL AGENCY FURTHER INFORMATION

History:

The company was incorporated on 11^th July 1972 at Mumbai in Maharashtra having Company Registration Number 15888.

The company was originally incorporated under the name and style of Lupin Laboratories Limited and was changed to the present due to amalgamation of Lupin Laboratories Limited and Lupin Chemicals Limited.

The Hon'ble High Court of Judicature at Mumbai had, vide its order dated June 13, 2001, sanctioned the scheme of amalgamation between Lupin Laboratories Limited and Lupin Chemicals Limited w.e.f. April 1, 2000.

As part of the scheme of amalgamation, the name of the company was changed to Lupin Limited and the Registered Office shifted to 159, C.S.T. Road, Kalina, Santacruz (East), Mumbai – 400 098.

Pursuant to the scheme of amalgamation, the company's issued and subscribed capital of Rs. 335.508 millions consisting of 33550865 equity shares was re-structured to Rs. 33.550 millions by effecting a reduction of Rs. 9/- in the paid up value of Rs. 10/- per share and consolidating such shares into 3355086 equity shares of Rs. 10/- each. After cancellation of shares held by the transferor company in the capital of the company, the issued and subscribed capital of the company stands at Rs. 28.300 millions.

Pursuant to the scheme of amalgamation 37311048 equity shares of Rs. 10 each shall be allotted to the equity shareholders of the transferor company, in the ratio of 12 shares for every 10 shares held by them in the transferor company. Further, 1200000 Redeemable Cumulative Preference Shares of Rs. 100/- each aggregating Rs. 120 millions shall be issued to the holders of various series of preference shares in the transferor company.

Lupin Chemicals Limited was incorporated in the year 1983, promoted by Lupin Laboratories Limited, with an aim to manufacture rifampicin, an anti-TB drug at Tarapur. The company consolidated its position in fermentation to produce rifampicin from the basic stage. The highly complicated procedure of stabilising the bacteria, which normally takes three to four years under local conditions was achieved in around one year with the help of technological tie-up from Fermic, Mexico.

The company was bought as defunct firm in 1968. It had manufacturing facilities in Aurangabad, Ankleshwar and Mandideep and a joint venture in Thailand. Its activities included pharmaceuticals, bulk drugs and formulations, fermentation, biotechnology, natural products and agro-chemicals. It was one of the largest producers of ethambutol, an anti-TB drug. Its other main focus was refampicin a bulk drug, which was manufactured form the fermentation stage. In was the first Indian company to undertake commercial manufacture of Vitamin B6. In 1985, the company diversified into agrochemicals and in 1995, it launched speciality and natural products. It had technical tie-up with Gruppo Lepitit, Italy a subsidiary of Marrion Merril Dow for fermentation.

On post merger basis, for the first quarter ended June 2001, the market share in the anti-TB segment went up to 43.4% from 40.4%, while the company’s cardiovascular registered a growth of 68.2%. Exports stood at Rs. 612.60 millions, driven largely by volume growth.

During the quarter ended June 2001, the company launched Ramistar (ace 2 inhibitor) to add to the basket of its cardiovascular product range. Ramistar-A (combination of Ramipril and Amlodipine) was also launched during the quarter.

During the first quarter of 2001-02, the company had also commissioned US FDA approvable facility at Mandideep (Madhya Pradesh) for manufacture of Oral Cephalosporins in finished dosage form, targeted at advanced markets of the USA and Europe.

Subject came into existence due to amalgamation of Lupin laboratories with Lupin Chemicals. The scheme of amalgamation was approved by the high court on 13 June 2001 and the same was effective from April 2000.  

The company also expects strong gains from its entry into the US cefotaxime market, where it holds a near-exclusive position. The company's cefotaxime dosages are selling consistently at present in the UK and French markets. During the quarter, ceftriaxone dosage form has also been launched successfully in France. The European market for this product is estimated at $ 400 million.

Subject commissioned its state of art USFDA approval oral Cephalosporin dosage manufacturing plant, for meeting the requirements of the generics markets with some of the Cephalosporins going off patent in the coming years. At present the facility is catering to the requirements of exhibit batches needed by the R&D for the purpose of ANDA filings planned during the year. 

The company is also working on a strong NCE research program. On the process research and formulations development for the Generics markets the work is well underway for filling 4-5 ANDA’s in the current year. During February 2002, Rabeprazole an anti-peptic in the therapeutic segment was introduced by Lupin under the brand name of Rablet. The installed capacities of tablets, capsules, bottles were increased to 10 million per month, 55 million capsules annually, 7.2 million bottles per annum, respectively. The company spent most of the capital expenditure for expansion of its R& D facilities, Expansion & Modernization of the anit-TB dosage facility, Commissioning of a new lisinopril facility. The company is setting up a USFDA approval plant at Tarapur, Maharashtra for manufacturing Lovastatin, a cholestrol lowering API. This plant was expected to be operational by the second quarter of the current financial year 2002-03.

Business:

Subject is engaged in the business as Manufacturers of Bulk Drugs and Formulations.

Generic Names of the Principal Products/Services of Company are :-

Product Description	Item Code No.
Rifampicin Formulation	30042007
Cephalexin (Bulk Drug)	29419002
Rifampicin (Bulk Drug)	29419001.01

Performance review

The Company recorded gross sales of Rs.12122.7 million, an increase of about 4% over Rs.11679.3 million in the previous year. Your Company achieved a net profit of Rs.843.6 million as compared to Rs.987.1 million for the previous year. 

 Higher R&D expenditure, lower than expected market penetration of branded product Suprax(R) in the US, decline in the prices of Pen G based Cephalosporins and destocking by the trade during the last quarter because of uncertainties about VAT resulted in lower profit for the year. 

Opertional revies

Finished Dosages-Semi regulated markets 

India Region 

 The finished dosages business in India exhibited encouraging performance: it has grown by 15% as against industry growth rate of 6%. The Company achieved significant increase in sales in the cardiology and diabetology segments. Your Company offers a wide range of products covering therapeutic segments such as gastro intestinal, pain management anti-histaminic, nutraceuticals. cardiovascular, diabetes etc., besides maintaining its leadership position in anti-Tuberculosis (TB) and anti-infectives. The performance of 1350-strong field force achieved prescription growth of 6% as against the industry rate of 1%. 

 The Company successfully entered the highly competitive anti-asthma market. Within a short span of eight months, it registered revenue of Rs.90 million. 

The Company launched 18 new products in the market, which included unique products, such as Rablet IV, an anti-peptic ulcerant, Nizonide, an anti-parasitic and Tonact EZ for cholesterol control. Your Company also introduced a life-saving antibiotic Novapime, a fourth generation injectible cephalosporin, at an affordable price. 

 Six of the Company's products feature in the top 300 pharma brands. 

 The uncertainties brought about by the introduction of VAT in several states led to significantly lower buying by the distributors. This occasioned much lower sales during the last quarter of the year. 

 Over the years, the Company has consciously reduced its dependence on anti-TB business, without diluting its undisputed market leadership. To accelerate growth, your Company has strategically focused on high-growth, high-contribution area of life-style segments like diabetology, cardiology, CNS and Asthma. The Company now offers various innovative Novel Drug Delivery System (NDDS) dosages to strengthen its doctor franchise, at the same time, increasing its reach to far-flung rural areas through the Mass Marketing Division. 

 Other markets 

 The Company is entering value added generics through alliances in Australia and Japan. It has also set its sight on other regulated markets like Brazil, Mexico and New Zealand, besides semi-regulated South East Asia, Middle East; Africa and Latin America. A separate division 'AAMLA' monitors these geographical areas. 

 The Company is among the earliest Indian companies to operate in the erstwhile Soviet Union. The Company continues to focus on the CIS countries. During the year, Ribavin (anti-viral), One Be (herbal adaptogen revitalizer) and Softovac (herbal bowel regulator) were introduced in that market The Company is geared to consolidate its position in CIS through branded products and is planning to achieve market penetration through expansion of field force. 

 b) Active Pharmaceutical Ingredients (API) - Semi regulated markets and Intermediates 

 This business retained its dominant global position in anti-TB and Cephalosporins. 

 The Company's statins facility at Tarapur received the USFDA approval and the injectible cephalosporin facility at Mandideep received approval of TGA Australia. 

 Certain segments of the Cephalosporin market (Pen G based products) came under pricing pressure. Profitability from the sale of these products was lower in the year consequent upon this. Prices of some other API products were also under pressure. 

 With a view to insulate itself from volatility in sales and margins, the Company has entered into long-term agreements with customers as well as suppliers of raw materials. The Company also adopted a relationship-driven geographically diversified business model, by establishing its presence in over 50 countries, by offering a wide product range. It derives its strength from its capability in integrated world class manufacturing facilities and economies of scale. A number of large global pharma companies are on the list of the Company's customers. 

 The Company has also leveraged its strength in intermediates and has become a prominent player in this segment in respect of its chosen products. 

 c) Regulated Markets 

 i) Finished Dosages 

 Generic 

 The Company has made significant progress in its plans on regulated market formulations sale. The Company is pursuing a sufficiently large pipeline that, over time, will provide a critical mass of generic products for sale in the regulated markets of the US and Europe. In this effort, the Company filed 14 ANDAs during the year. The Company expects to get approval for these in time for the products to be launched in the US. 

 Recently, your Company has entered into a Development and Licensing Agreement with Cornerstone BioPharma Inc., US, for collaborating in the clinical development of a NDDS for an anti-infective product This validates your Company's strategy of applying Novel Drug Delivery platforms to create value-added products in chosen therapeutic areas conforming to global standards. This also signifies the Company's expertise in developing and manufacturing products to be administered through patented delivery systems. 

 Through an exclusive tie-up with Baxter, a market leader in hospital products in the US, your Company is set to launch injectible Ceftriaxone, which will go off patent in July 2005. Ceftriaxone is the largest selling Cephalosporin having an estimated market size of US$ 800 million in the USA alone. 

 Specialty 

 The Company has set its vision on consolidating the foundation it has laid in the US for the specialty portfolio. Despite a slow start in April 2004, the level of prescriptions for the first branded product Suprax(R) has risen sharply in the recent months, generating over 85,000 prescriptions during the year. The Company has also entered into an alliance with Cornerstone BioPharma Inc., US, for co-promotion of Suprax(R), which would enhance its reach beyond paediatric market. 

 ii) Active Pharmaceutical Ingredients 

 The Company's sales in the API segment of the regulated generics market registered significant gains. The Company achieved leadership in cardiovascular segment through Lisinopril and aims to achieve similar status in Statins. The customer base for Lisinopril and some Cephalosporins was widened during the year, which would ensure long-term steady growth in these products. The Company also improved its capabilities of entering into new products through focus on process/product development and investment in state-of-the-art manufacturing facilities. 

 The Intellectual Property Management Group, based at Pune, leverages the cross-functional competencies by playing a pivotal role in identification of commercially viable products. 

Recognition and awards

· FICCI Award by the Honourable Prime Minister of India – In 1991

· ICMA Award - In 1993

· Jamnalal Bajaj Award – In 1995

· Bhamashah Award- In 1995

· Merit Award – In 1998

· State Awards under Child Welfare Program – In 2000, 2002, 2003.

The company has joint venture with Lupin Chemicals (Thailand) Limited, Thailand and Lupin Laboratories South Africa (Pty) Limited, South Africa.

The company is in trade terms with:

· A. S. Enterprises

· Aakar Arts

· Adit Containers Private Limited

· Adit Industries

· Adit Phama

· Agarwal Paper Products

· Amar Equipments Private Limited

· AMI Polymers Private Limited

· Amijal Chemicals

· Bhavna Chemicals

· Bombay Ampules

· Canton

· Clean Air Engineers

· Diva Envitech

· Dorik Plastochem Limited

· Gujarat Persalds

· Enar Echemie Private Limited

· Nikita Chemicals

· Nishflex Packaging Private Limited

· Aspage Integrated Systems Private Limited

· Novex PolyFilms Private Limited

· Multi-tech Engineers Private Limited

· Jain Carton Industries Private Limited

· Fluid Pack Machinery Company Private Limited

· Yoyo Chemicals

· Amsal Chem Private Limited

· Kisalaya Herbals Limited

· Pharmaceuticals Coatings

· Western Drugs Private Limited

· Award Packaging

· Aadarsh Offset Private Limited

· Hymech Engineers Private Limited

· Printania Offset Private Limited

· Ramesh Industries

· Harelm Polycontainers Private Limited

· Gujarat Chemicals Private Limited

· Goyal MG Gases Limited

· Niket Udyog Limited

· S. D. Limited

· Sales Worth India Private Limited

· Jain Carton Private Limited

· Kailash Corrugators Private Limited

· Madhav Ratna Packaging Industries

· Sanjivani Parenterals Limited

· Vivid Systems

· Webtech Systems

· Zeolites & Allied Products

· Universal Insulation Company

· Vijay Pumps

· Vikas Pharmaceutical Laboratories

· Techno Cell

· Truimph Pack Private Limited

· System & Components India

· Taran Industries

· Tatva Chintan Pharma Chem Private Limited

· Subhadra Packaging

· Rotex Manufacurers

· RDG Engineering Works

· Regal Chemical & Mineral

· Mayank Engineering Works

· Gimar Corrugators Private Limited

· Glamour Packaging

· Godavri Plsto Containers Private Limited

· Goel Process Systems Private Limited

· J U Engineering

The company’s fixed assets of important value include freehold land, leasehold land, buildings, plant and machinery, furniture, fixtures and office equipments, vehicles, air conditioners and technical know-how.

Press Release:

DSM Anti-Infectives India And Lupin Enter Into A Strategic Cooperation For Cephalosporins

September 02, 2005: DSM Anti-Infectives India Ltd. and Lupin Limited have entered into a supply and marketing agreement for a strategic cooperation in the cephalosporins

segment.

In recent years, both the companies have demonstrated their strength in this key segment and this strategic cooperation will further enable to strengthen their respective positions

in this segment through enhanced utilisation of existing resources, with an enhanced

market access. Mr. N.V. Ramanan, Head of DSM Anti Infectives (Asia Pacific, Middle east, Africa) and Country representative of Royal DSM NV said “Cephalosporins is strategically an

important segment and with this cooperation we look forward to working closely with

Lupin and further enhance our market reach and leadership.”

Commenting on the development Mr. Satish Khanna, Group President API, Lupin Limited said “This development enhances our market reach and will enable us to optimally utilise our resources. We look forward to increase this cooperation over a wider product basket to bring synergetic advantages to both Lupin and DSM Anti-Infectives.”

About DSM Anti-Infectives India

DSM Anti-Infectives India is a part of the business group DSM Anti-Infectives (global turnover of Euro 500 Million, whereas DSM group annual turnover is Euro 8 Billion), which holds a leadership position in the field of Active Pharmaceutical Ingredients for the â-Lactam industry.

About Lupin

Headquartered in Mumbai, Lupin (http:/www.lupinworld.com) develops, manufactures and markets generic intermediates, active pharmaceutical ingredients and finished dosages. Its FY 2004-05 revenues were Rs.12 billion.11 of Lupin’s plants have been approved by the USFDA and two facilities have been approved by the UKMHRA

Dr. Vijay Kelkar and Mr. R A Shah join Lupin Board

BSE: 500257 NSE: LUPIN REUTERS: LUPN.BO BLOOMBERG: LPC IN

Mumbai, October 19, 2005: Lupin Limited today announced that Dr. Vijay Kelkar and

Mr. R A Shah have joined the company’s Board as Independent Directors. An eminent economist Dr. Kelkar was an advisor to the Minister of Finance, Government of India between August 2002 and September 2004. A Ph.D from the University of California, M.S. from the University of Minnesota Dr. Kelkar has also served as an Executive Director of the International Monetary Fund August 1999 – August 2002 and Finance Secretary to the Government of India in 1998-99. He has held various other senior positions in the Government of India and was Chairman/Member of several high-powered committees set up by the government.

An eminent solicitor specialising in broad spectrum of Corporate Laws Mr. R A Shah is

a senior partner of Crawford Bayley & Company, a leading solicitor firm in Mumbai. Mr. Shah serves on the boards of various companies being on the Managing Committee of the Bombay Chamber of Commerce and Indo German Chamber of Commerce. He is also a Member of the Committee for Revision of SEBI Takeover Code and President of Society of Indian Law Firms (Western Region). Welcoming these two eminent personalities on the Board, Lupin Chairman Dr. Desh Bandhu Gupta said, “I am delighted that Dr. Kelkar and Mr. Shah accepted our

invitation to join our Board. Their enormous experience and wisdom will serve Lupin in good stead in the years to come”.

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.45.07
UK Pound	1	Rs.83.67
Euro	1	Rs.57.45s

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		70

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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