1. Summary Information

		Country	India
Company Name	STRIDES ARCOLAB LIMITED	Principal Name 1	Mr. Deepak Vaidya
Status	Good	Principal Name 2	Mr. Arun Kumar
		Registration #	-
Street Address	201, Devavrata, Sector 17, Vashi, Navi Mumbai – 400705, Maharashtra
Established Date	28.06.1990	SIC Code	--
Telephone#	91-22-27895247	Business Style 1	Manufacturing and marketing of all types of Bulk Drugs, Pharmaceuticals, etc.
Fax #	91-22-27892924	Business Style 2	--
Homepage	--	Product Name 1	--
# of employees	800	Product Name 2	-
Paid up capital	893,760,000	Product Name 3	--
Shareholders	Bodies Corporate - 27.16	Banking	Dena Bank
Public Limited Corp.	--	Business Period	20 years
IPO	---	International Ins.	-
Public Enterprise	---	Rating	A (57)
Related Company
Relation Associates	Country India	Company Name	Solara SA De CV, Mexico
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2010		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	5,986,940,000	Current Liabilities	3,901,780,000
Inventories	955,030,000	Long-term Liabilities	12,322,390,000
Fixed Assets	3,268,930,000	Other Liabilities	--
Deferred Assets	--	Total Liabilities	16,224,170,000
Invest& other Assets	15,292,560,000	Retained Earnings	6,209,500,000
		Net Worth	9,279,290,000
Total Assets	25,503,460,000	Total Liab. & Equity	25,503,460,000
Total Assets (Previous Year)	17,535,560,000
P/L Statement as of	31.03.2010		(Unit: Indian Rs.)
Sales	7,694,420,000	Net Profit	1,055,140,000
Sales(Previous yr)	5,931,380,000	Net Profit(Prev.yr)	61,350,000

MIRA INFORM REPORT

Report Date :

07.04.2011

IDENTIFICATION DETAILS

Name :	STRIDES ARCOLAB LIMITED
Registered Office :	201, Devavrata, Sector 17, Vashi, Navi Mumbai – 400705, Maharashtra
Country :	India
Financials (as on) :	31.12.2009
Date of Incorporation :	28.06.1990
Com. Reg. No.:	11-57062
CIN No.: [Company Identification No.]	L24230MH1990PLC057062
TAN No.: [Tax Deduction & Collection Account No.]	MUMS36534B
PAN No.: [Permanent Account No.]	AADCS8104P
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing and marketing of all types of Bulk Drugs, Pharmaceuticals, etc.

RATING & COMMENTS

MIRA’s Rating :

A (57)

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 37000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having fine track. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION DENIED BY

Name :	Ms. T. S. Rangan
Designation :	Chief Financial Officer
Contact No.:	91-80-66580000
Date :	22.02.2011

LOCATIONS

Registered Office :	201, Devavrata, Sector 17, Vashi, Navi Mumbai – 400705, Maharashtra, India
Tel. No.:	91-22-27895247
Fax No.:	91-22-27892924
E-Mail :	kannan.n@stridesarco.com badree.komandur@stridesarco.com
Website :	http://www.stridesarco.com
Corporate Office :	Strides House, Bilekahalli, Bannerghatta Road, Bangalore – 560 076, Karnataka, India
Tel. No.:	91-80-26581343/ 44/ 57580738/ 39/ 57580000/ 66580751/ 66580000/ 66580600
Fax No.:	91-80-26583538/ 4330/ 57580700/ 800/ 66580800
E-Mail :	kannan.n@stridesarco.com strides@satyam.net.in info@stridesarco.com
Factory 1 :	Soft Gelatin Capsules ‘KRS Gardens’, Suragajakanahalli, Anekal Taluk, Bangalore-560106, Karnataka, India
Factory 2 :	Contract Research and Manufacturing 120 A and B, Baikampady, New Mangalore-575011, Karnataka, India
Factory 3 :	Strides Incorporation 37, Veronica Avenue, Somerset NJ 08873, New Jersey-08873, USA
Factory 4 :	Tablets and Hard Gelatin Capsules ‘KRS Gardens’, Suragajakanahalli, Anekal Taluk, Bangalore-560106, Karnataka, India
Factory 5 :	Caryl Laboratories Limited 238, Sarakki, Bangalore-560078, Karnataka, India
Factory 6 :	Solara SA De CV AV. Paseo De Las Palmas 330-Planta Baja Lomas De Chapultepec, C.P. 11000, Mexico D.F.
Factory 7 :	Sterile Product Bilekahalli, Bannerghatta Road, Bangalore-560076, Karnataka, India
Factory 8 :	Antibiotics Bilekahalli, Bannerghatta Road, Bangalore-560076, Karnataka, India
Factory 9 :	Global Remedies Limited 124, Sipcot Industrial Complex, Hosur-635126, Tamilnadu, India
Factory 10 :	Infabra Industria Farmaceutica Limited. AV, Das America 8445, Room 801-804, Barra Tower-Barra Da Tijuca, Rio de Janaarrio, RJ 22793-080, Brazil
Tel. No.:	00 55 21 24876305
Fax No.:	00 55 21 24876309
Warehouse :	Plot No. 62, Sector – 1, Nerul, Navi Mumbai – 400 706, Maharashtra, India
Overseas Offices :	Located at : Mexico Solara S.A. DE CV, Gauss # 9 101-A, Col. Anzures, Delegacion Miguel Hidalgo CP 11590 Mexico, D.F. Pbx : 00 52 55 9126-0860 Sales : 00 52 55 2624-1399 Fax: 00 52 55 9126-0877 www.solara.com.mx servicio_a_clientes@solara.com.mx USA Strides Inc. 201 S. Main Street, Ste. 3, Lambertville, NJ 08530 Tel: 00 1 609 773 5000 Fax: 00 1 732 249 0225 Website: www.stridesusa.com E-mail:info@stridesusa.com Brazil Infabra Industria Farmaceutica Limited AV, Das Americas 8445, Room 801-804, Barra Tower – Barra Da Tijuca Rio de Janeiro, RJ 22793 – 080, Brazil. Tel: 00 55 21 24876305, Fax: 00 55 21 24876309 Africa Strides Arcolab (FA) Limited BP 1834, Rue Dubois de Saligny, Akwa, Douala, Cameroon Tel (Office): (+237)343 0435 CELL) :(+237) 79 33 762 Fax : (+237) 343 6420 Website: www.stridesarco.com Strides Arcolab Nig. Limited No. 28 Ajasa Street, Gr. Floor, Onikan, Lagos - Nigeria · 15, Cuthbert Street, Bondi Junction, NSW, 2022, Australia · 2051, Victoria, Suite 101, St. Lambert, Quebee J4S1HI, Canada · Arcolab SA, Chemin Du Grand Puits 28, P.O. Box No. 86, 1217 Meyrin 2, Geneva, Switzerland · Pentagon Exim Limited, P.O. Box No. 5227, Fujairah Free Zone, Fujairah, United Arab Emirates · John and Smith Street, Montrose, Chaguana, Trinidad, West Indies · 50, Aylesbury Road, Aston Clnton, Aylesbury, Bucks, HP 225 AH, UK · AV Rio Paragua, Torre Humboldt, Piso 11, Office 1107, Paraqdosde Este, Caracas-1080, Venezuela · 75/16-18, Su Van Hanh Extension, Ward 12, District 10, Ho Chi Minh City, Vietnam · 2 Kofo Abiyomi Street, Victoria Island, Lagos, Nigeria

DIRECTORS

AS ON 31.03.2010

Name :	Mr. Deepak Vaidya
Designation :	Chairman (Non-Executive)
Name :	Mr. Arun Kumar
Designation :	Executive Vice Chairman and Managing Director (Executive and Promoter)
Qualification	B.Com., PGDBM
Date of Joining	June 1990
Previous Employment	British Pharmaceutical Laboratories
Name :	Mr. K.R. Ravishankar
Designation :	Executive Director (Executive and Promoter)
Qualification	B.Sc. (Part)
Date of Joining	June, 1990
Previous Employment	Enterpreneur
Name :	Mr. R.S. Prasad
Designation :	Executive Director and Chief Executive Officer (Executive) - since resigned
Name :	Mr. Virtanes Saatci
Designation :	Director (Non-Executive)
Name :	Dr. Francis J. Pinto
Designation :	Director (Non-Executive)
Name :	Dr. Ronald Ling
Designation :	Director (Non-Executive)
Name :	Mr. Elcemar Almeida
Designation :	Director (Non-Executive)
Name :	Mr. D.G. Prasad
Designation :	Director (Non-Executive and Independent) representing Export Import Bank of India as Lender
Name :	Mr. M.R. Umarji
Designation :	Director (Non-Executive and Independent)
Name :	Mr. A.K. Nair
Designation :	Director (Non-Executive and Independent)
Name :	Mr. P.M. Thampi
Designation :	Director (Non-Executive and Independent)
Audit Committee:
Mr. M.R. Umarji	Chairman and Member
Mr. D.G. Prasad	Member
Mr. A.K. Nair	Member
Mr. P.M. Thampi	Member
Mr. Deepak Vaidya	Member
Dr. Ronald Ling	Member
Shareholders'/Investors' Grievances Committee:
Mr. Deepak Vaidya	Chairman and Member
Mr. M.R. Umarji	Member
Mr. K.R. Ravishankar	Member
Remuneration Committee
Mr. Deepak Vaidya	Chairman and Member
Mr. Virtanes Saatci	Member
Mr. M.R. Umarji	Member

KEY EXECUTIVES

Name :	Mr. V S Iyer
Designation :	Chief Operating Officer
Name :	Mr. Ravi Seth
Designation :	Group Chief Financial Officer
Name :	Mr. S A Manikandan
Designation :	Chief Executive Officer – Brands
Name :	Mr. Paul Moore
Designation :	Regional Director – Europe
Name :	Mr. V Madhusudhan
Designation :	President – Brazil Operation
Name :	Mr. Mohan Ram Prasad
Designation :	Chief Operating Officer – US Operations
Name :	Mr. Mark Bisset
Designation :	Chief Executive Officer – Australia and Regional Director Asia Pacific Operation
Name :	Mr. Sridhar S Rao
Designation :	Vice President – QA
Name :	Mr. Anil Gupta
Designation :	President – Global Manufacturing
Name :	Mr. M S Mohan
Designation :	Chief Scientific Officer
Name :	Mr. T S Rangan
Designation :	Group Chief Financial Officer
Name :	Mr. Adam Levitt
Designation :	Chief Executive Officer - North America Operations
Name :	Mr. Mark Bisset
Designation :	Chief Executive Officer and Regional Director – Asia
Name :	Mr. V. Madhusudhan
Designation :	Chief Executive Officer - Cellofarm and Regional Director - Latin American Operations
Name :	Mr. Sridhar S. Rao
Designation :	President – QA
Name :	Ms. Aloka Sengupta
Designation :	President - Business Development India Operations
Name :	Mr. Mohan Ram Prasad
Designation :	President - Technical Services Latin American Operations
Name :	Mr. Kannan. N
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 31.03.2010)

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3330191	5.77
Bodies Corporate	12791697	22.15
(2) Foreign
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	5922520	10.26
Financial Institutions / Banks	26129	0.05
Insurance Companies	4440379	7.69
Foreign Institutional Investors	18527195	32.08
(2) Non-Institutions
Bodies Corporate	3050557	5.28
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	3332197	5.77
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	2111167	3.66
Any Others (Specify)
Non Resident Indians	1846833	3.20
Hindu Undivided Families	376804	0.65
Directors and their Relatives and Friends	279075	0.48
Clearing Members	170136	0.29
Foreign Nationals	150000	0.26
Foreign Corporate Bodies	1388791	2.41
Trusts	1000	--
Total	57744671	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and marketing of all types of Bulk Drugs, Pharmaceuticals, etc.

Products :

Item Code No.	Product Description
30039090	Lamivudine
30039090	Efavirenz
30039090	Zidovudine
30019099	Enoxaparin Sodium
3003	Pharmaceutical Formulations
3003	Pharmaceutical Formulations
3212	Speciality Chemicals-Irgaphor
3812	TBBP Diphosphonite
29419000	Ceftriaxone
29372900	Hydrocortisone
29362800	Vitamin –E
29419090	Meropenam
29419090	Tazobactum and Piperacillin Sodium
29420090	Mycophenolate Mofetil
29419000	Cephalotin Sodium

ORAL DOSAGE FORMS

· Immunosuppressants

· Anti-retroviral drugs

· Anti-tuberculosis products

· Anti-malarial drugs

· Antibiotics and anti-infectives

· Other anti-infectives

· Anti –anginal and anti- hypertensive drugs

· Hypolipidaemic Agents (Cholesterol Reducing Agents)

· Gastrointestinal Agents

· Anti-emetics

· NSAIDs /Analgesics

· Steroids and Hormones

· Anti-allergic drugs

· Vitamins/Minerals and Calcium regulators

STERILE PRODUCTS

· Immunosuppressant

· Anti-tuberculosis agents

· Anti-malarial

· Antibiotics and anti-infectives

· Steroids and Hormones

· Antispasmodic/ muscle relaxants

· Gastrointestinal Agents

BETA LACTAMS

• Beta Lactams

CEPHALOSPORINS

· Cephalosporins

PRODUCTION STATUS (AS ON 31.12.2009):-

Particulars	Unit	Installed Capacity	Actual Production
Soft Gelatin Plant Softgel Capsules	Numbers in Millions	2645	--
Hard Gelatin Plant Capsules	Numbers in Millions	450	--
Tablet Plant Tablets	Numbers in Millions	2160	--
Beta-lactam Plant Capsules and Tablets Dry Powder Vials	Numbers in Millions	NA NA	-- --
Sterile Products Ampoules Vials Prefilled Syringes Dar Powder Vials	Numbers in Millions	NA NA NA NA	-- -- --

GENERAL INFORMATION

Suppliers :

· Foils Pack

· Global Printing and Packaging Company Private Limited

· Nice Pack

· Nice Prints

· Noble Printing Press

· Reliance Packaging

· Industries

· Sri Krishna Timber Depot

· Yuno Packaging Private Limited

· Shree PLA Industries

No. of Employees :

800 (Approximately)

Bankers :

· Dena Bank, Navi Mumbai, Maharashtra

· State Bank of India, Navi Mumbai, Maharashtra

· Corporation Bank, Navi Mumbai, Maharashtra

· The South Indian Bank, Navi Mumbai, Maharashtra

· Corporation Bank, Navi Mumbai, Maharashtra

· Canara Bank, Navi Mumbai, Maharashtra

· Industrial Development Bank of India, Navi Mumbai, Maharashtra

Facilities :

SECURED LOANS	31.12.2009 (Rs. in millions)	31.12.2008 (Rs. In Millions)
Long term loans
a) From banks	2947.870	1094.430
b) From others	5.060	15.000
Short term loans
a) From banks	3027.960	2627.920
Total	5980.890	3737.350
Notes: a) Long term loans (other than hire purchase loans) are secured by a pari passu first charge on all movable properties and the immovable properties at certain facilities of the Company. Hire purchase loans from Banks are secured by hypothecation of assets acquired there under, b).-. Long term loans (other than hire purchase loans) due within one year Rs.524.180 Million (Previous year Rs231.13 Million). Hire purchase loans from banks due within one year Rs.4.78 Million (Previous year Rs. 2.48 Million), c)' Short term loans from banks are working capital loans, which are secured by a pari passu first charge on the Company's immovable property located at Navi Mumbai and the current assets of the Company and by a pari passu second charge of certain otherimmovable properties,.: ' d) Some of the above loans amounting to Rs.1505.000 Million (Previous year Rs.268.86 Million) are guaranteed by some of the Directors of the Company in their personal capacities e). Short term loans from Banks includes Bills discounted with various Banks for Rs.1044.46 Million (Previous year Rs.974.61Million )
UNSECURED LOANS	31.12.2009 (Rs. in millions)	31.12.2008 (Rs. In Millions)
Long term loans
a) Foreign currency convertible bonds
- Debt Portion of FCCB’s	6166.18	7051.070
- Fair Value embedded derivatives in FCCB’s	175.32	134.200
Short term loans
From banks	-	52.000
Total	6341.500	7237.270
NOTE : Foreign Currency Convertible Bonds Amounting To Rs.2100.70 Million are due for / Conversion in the month of April 2010).

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Deloitte Centre, Anchorage II, 100/2, Richmond Road, Bangalore – 560025, Karnataka, India
Tel No.:	91-80-66276000
Fax No.:	91-80-66276011
Memberships :	Confederation of Indian Industry
Wholly owned Subsidiaries:	Direct Holding: · Arcolab Limited SA, Switzerland Global Remedies Limited, India (merged with the Company w.e.f January 1, 2009) · Strides Technology and Research Private Limited · Strides Specialties Private Limited (formerly Quantum Life Sciences Private Limited) · Starsmore Limited, Cyprus · Strides Africa Limited, British Virgin Islands · Strides Arcolab International Limited, U.K (SAIL) · Medgene Pharmaceuticals Private Limited India (Upto April 24, 2009) Indirect Holding: · Pharma Strides Canada Corporation · Linkace Limited, Cyprus · Plus Farma ehf (w.e.f 30.12.2009) · Farma Plus AS (w.e.f 30.12.2009) · Quantum Remedies Private Limited (merged with the Company w.e.f January 1, 2009) · Strides Specialties (Holdings) Limited, Mauritius · Strides Specialties (Holdings) Cyprus Limited (previously known as Powercoast Limited). · Strides Pharmaceuticals (Holdings) Limited, Mauritius · Strides Specialty (Cyprus) Limited · Strides Arcolab Polska Sp.z o.o, Poland · Strides Arcolab UK Limited, UK · Strides Australia Pty Limited, Australia · Medgene Pharmaceuticals Private Limited, India ( From April 24, 2009) · Strides Pharma (Cyprus) Limited, Cyprus
Other Subsidiaries :	Direct Holding: · Strides Inc. USA · Onco Therapies Limited, India · Grandix Pharmaceutical Limited, India (merged with the Company w.e.f 01.01.2009) Indirect Holding: · Ascent Pharmahealth Limited, Australia · Strides S.A. Pharmaceuticals Pty. Limited, South Africa · Ascent Pharmahealth Asia Pte Limited, Singapore · Beltapharm S.p.A., Italy · Drug Houses of Australia (Asia) Pte. Limited, Singapore · Co Pharma Limited, UK · Formule Naturelle (Pty) Limited , South Africa · Genepharm Newzealand Limited, Newzealand · Genepharm Pty Limited, Australia · Grandix Laboratories Limited, India (merged with the Company w.e.f January 1, 2009) · Pharmasava Australia Pty Limited, Australia · Green Cross Pharma Pte Limited, Singapore · Strides Arcolab Hong Kong Limited, Hong Kong · Strides Arcolab Malaysia SDN. BHD, Malaysia · Strides Arcolab SDN BHD, Brunei · Strides CIS Limited, Cyprus (Previously known as Raycom Limited) · Strides Vital Nigeria Limited, Nigeria
Joint Venture :	· Akorn Strides LLC, USA · Farma Plus AS, Norway (Upto December 29, 2009) · Laboratorios Domac Spain (Upto December 30, 2009) · Plus Farma ehf, Iceland (Upto December 29, 2009) · Onco Laboratories Limited, Cyprus (formerly Powercliff Limited) · Sagent Strides LLC, USA
Associates :	· Aspen Venezuela CA (formerly Casa de Representaciones Sumifarma CA), Venezuela · Cellofarm Ltda, Brazil · Pharmalatina Holdings Limited (formerly Lakerose Limited), Cyprus · Solara SA De CV, Mexico · Strides Latina, SA, Uruguay · Aspen Labs SA De CV (formerly Strides Mexicana SA De CV), Mexico
Enterprises owned or significantly Influenced by key management personnel and relatives of key management personnel :	· Agnus Global Holdings Pte Limited · Agnus Holdings Private Limited · Agnus IPCO Limited, BVI · Arcolab (India) Private Limited · Atma Projects · Caryl Pharma Private Limited · Chayadeep Properties Private Limited · Everron Systems (India) Limited · Fraxis Life Sciences Limited · Keerthapathi Ravishankar – HUF · Mrs. Deepa Arunkumar · Mrs. K Saraswathi · Netequity Ventures Private Limited · Nous Infosytems Private Limited · Patsys Consulting Private Limited · Sequent Scientific Limited (previously PI Drugs and Pharmaceuticals Limited), India · Sequent Research Limited , India · Sequent European Holdings Limited · Sequent Global Holdings Limited, Mauritius · Sequent Scientific Limited · Vedic Elements Private Limited

CAPITAL STRUCTURE

As on 31.12.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
89750000	Equity Shares	Rs.10/- each	Rs.897.500Millions
620000	Cumulative Redeemable Preference Shares	Rs.1000/- each	Rs.620.000 Millions
	Total		Rs.1517.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
40215614	Equity Shares	Rs.10/- each	Rs.402.150 Millions
	3,168,875 equity shares of Rs.10 each were allotted to the Promoters and their associate companies on exercising of the Warrants, 210,955 equity shares of Rs.10 each were alloted to the erstwhile share holders of Bombay Drugs and Pharmas Limited, consequent to amalgamation with the Company, 1,251,000 equity shares of Rs.10 each were issued as bonus shares by capitalisation of General Reserve, 1,912,500 equity shares of Rs.10 each were issued consequent to amalgamation to the shareholders of erstwhile Remed Laboratories (India) Limited and Plama Laboratories Limited
491606	6% cumulative redeemable preference shares	Rs.1000/- each	Rs.491.610 Millions
	Total		Rs.893.760 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2009	31.12.2008	31.12.2007
SHAREHOLDERS FUNDS
1] Share Capital		893.760	892.110	841.650
2] Share Application Money		141.50	0.000	189.870
3] Reserves & Surplus		8209.500	2897.330	1603.290
4] Employees stock options outstanding account		34.53	17.890	4.730
5] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		9279.290	3807.330	2639.540
LOAN FUNDS
1] Secured Loans		5980.890	3737.350	2993.970
2] Unsecured Loans		6341.500	7237.270	7633.720
TOTAL BORROWING		12322.390	10974.620	10627.690
DEFERRED TAX LIABILITIES		0.000	58.500	79.500
TOTAL		21601.680	14840.450	13346.730
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3268.930	1612.630	1655.510
Capital work-in-progress		112.140	1454.080	504.620
INVESTMENT		15180.420	9395.800	8361.690
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	955.030	869.710	722.070
	Sundry Debtors	2075.270	2084.400	1802.200
	Cash & Bank Balances	313.820	163.820	1255.920
	Other Current Assets	0.000	778.840	0.000
	Loans & Advances	3597.850	1176.280	1662.490
Total Current Assets		6941.970	5073.050	5442.680
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2124.910	1649.580
	Other Current Liabilities	81.390	336.380	2325.070
	Provisions	1695.480	709.150	292.700
Total Current Liabilities		3901.780	2695.110	2617.770
Net Current Assets		3040.190	2377.940	2824.910
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		21601.680	14840.450	13346.730

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2009	31.12.2008	31.12.2007
	SALES
		Income	7694.420	5931.380	3929.150
		Other Income	153.020	689.950	102.530
		TOTAL	7847.440	6621.330	4031.680
Less	EXPENSES
		Materials consumed	4473.360	3464.850	2418.650
		(Increase)/Decrease in stock	(119.860)	(44.240)	(93.720)
		Personnel cost	836.600	631.450	516.690
		Operating and other expenses	1367.010	1215.530	953.070
		Loss on sale of long term investment	0.000	0.000	95.300
		Exchange Gain / Loss on FCCB, ECB and forward exchange contracts	(498.610)	1841.940	0.000
		Exchange Gain / Loss on restatement of hedged investments	107.010	(923.400)	0.000
		Changes in fair value of embedded derivatives in FCCBs	41.120	(452.210)	0.000
		Profit on FCCB buyback	(291.170)	0.000	0.000
		Interest reversal on FCCB buyback	(79.960)	0.000	0.000
		Impairment in investment in subsidiaries	0.000	0.000	815.320
		TOTAL	5835.500	5733.920	4705.310
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		2011.940	887.410	(673.630)
Less	FINANCIAL EXPENSES		619.550	654.270	317.750
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		1392.390	233.140	(991.380)
Less	DEPRECIATION/ AMORTISATION		226.850	188.770	188.880
	PROFIT BEFORE TAX		1165.540	44.370	(1180.260)
Less	TAX		110.400	(16.980)	(28.120)
	PROFIT AFTER TAX		1055.140	61.350	(1152.140)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(47.680)	(109.030)	NA
Less	APPROPRIATIONS
		Proposed dividend on equity shares	60.320	0.000
		Tax on proposed equity dividend	10.250	0.000
		Dividend on preferences shares	88.490	0.000	NA
		Tax on preference dividends	15.040	0.000
		Transfer to general reserve	52.760	0.000
	BALANCE CARRIED TO THE B/S		780.600	(47.680)
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports of Goods	5452.220	4629.040	3222.070
		Development Income	834.010	745.630	427.990
		Interest	9.780	17.550	42.550
		Local sales (proceeds received / receivable in Foreign Currency)	3.440	386.850	139.890
	TOTAL EARNINGS		6299.450	5779.070	3832.500
	IMPORTS
		Raw Materials	1373.390	1093.500	713.940
		Capital Goods	129.080	432.620	265.710
		Others	225.860	23.670	14.220
	TOTAL IMPORTS		1728.330	1549.790	993.870
	Earnings Per Share (Rs.)
	- Basic		25.46	0.69	NA
	- Diluted		18.06	0.69	NA

QUARTERLY RESULTS

PARTICULARS	31.03.2010	30.06.2010	30.09.2010
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Sales Turnover	1325.420	1197.240	1358.760
Total Expenditure	1028.240	996.930	1152.160
PBIDT (Excl OI)	297.180	200.310	206.600
Other Income	6.200	0.000	0.000
Operating Profit	303.380	200.310	206.600
Interest	168.640	201.450	212.730
Exceptional Items	25.360	(99.980)	147.540
PBDT	160.100	(101.120)	141.410
Depreciation	34.250	34.770	34.890
Profit Before Tax	125.850	(135.880)	106.520
Tax	25.210	0.000	0.000
Reported PAT	100.640	(135.880)	106.520
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	100.640	(135.880)	106.520

KEY RATIOS

PARTICULARS		31.12.2009	31.12.2008	31.12.2007
PAT / Total Income	(%)	13.45	0.92	(28.58)
Net Profit Margin (PBT/Sales)	(%)	15.15	0.74	(30.04)
Return on Total Assets (PBT/Total Assets}	(%)	(11.42)	0.66	(16.63)
Return on Investment (ROI) (PBT/Networth)		(0.13)	0.01	(0.45)
Debt Equity Ratio (Total Liability/Networth)		(1.75)	3.63	5.02
Current Ratio (Current Asset/Current Liability)		(1.78)	1.88	2.08

LOCAL AGENCY FURTHER INFORMATION

The Details of Sundry Creditors:

Rs. In Millions

Particulars	31.12.2009	31.12.2008	31.12.2007
Sundry Creditors
- Dues to Micro/Small Enterprises	10.820	2.420	NA
- Dues to Others	2114.090	1647.160	NA
Total	2124.910	1649.580	NA

HISTORY:

Subject since its inception in 1990, has continuously consolidated its position at the leading edge of the International Generic Pharmaceutical and Nutritional industry. Today, it is a multi-million dollar integrated manufacturer, with a comprehensive product range that covers virtually all dosage forms and therapeutic categories. Its pharmaceutical range of products are manufactured in state of the art ISO certified plants which conform to the strictest WHO-GMP guidelines.

The subsidiaries of Strides Arcolab are Global Remedies Limited, Strides Research and Specialty Chemicals Limited, Arcolab Limited SA Switzerland, Strides Acrolab FA Limited UAE, Strides Inc USA, Strides SA Pharmaceuticals Pty Limited Republic of South Africa, Strides Africa Limited British Virgin Islands and Quantum Life Sciences Private Limited.

Subsequent to investments in soft gelatin technology, with plants in India and USA, Strides is now one of the largest and most sophisticated soft gelatin manufacturers in the world. Its focus on globally competitive quality and efficient deliveries has earned it a significant presence in the international market among the top ten producers of Nutraceuticals world wide. 

During 1999-2000, the company, to accelerate entry into new markets established Pentagon Exim, a 100% subsidiary in UAE. Pentagon Exim will spearhead the company's entry into GCC markets and parts of Africa in the coming years. It also incorporated Strides Inc., a 100% subsidiary in USA. Also, during the year it completed the two acquisitions which would enable the company to control their production facilities better. Caryl Laboratories, a 100% subsidiary acquired all the business assets of an existing toll manufacturer of the company and acquisition of Global Remedies was also completed. 

The company is in the process of completing investments in Solara Pharmaceutical, Mexico which will make Solara a 52% owned subsidiary company. It has commissioned a tablet and capsules facility in Mexico and commercial production was started in the current fiscal year. During 2001-02 the amalgamation of Bombay Drugs and Pharmaceuticals Limited with the company was completed. 

The company has hived off its CRAM Division to Strides Research and Specialty Chemicals Limited, a 100% subsidiary of the Company in 2002-03. 

In the year 2002-03 the company has signed an Memorandum of Understanding with Ribbon SRL Italy for setting up a 50:50 joint venture to manufacture and market Cephalosporin formulations for the regulated markets. This facility will be set up in Bangalore with the total capital outlay of USD 7 million. Further in 2003-04 the company has incorporated Quantum Life Sciences Private Limited as a 100% subsidiary for implementation of the Cephalosporin Project at Bangalore with the initial capital of Rs.0.1 Million. 

The company has set up Akron-Strides LLC, USA, a 50:50 Joint Venture company in collaboration with Akron Inc., US to market products for the hospital and retail market in the US during 2003-04. 

During 2003-04 the LATAM operations in Brazil and Mexico operations were merged into Strides Latin and the company entered into strategic agreement with LATAM partners to acquire controlling stake. The company has commenced their commercial production in the Solid Dosage facility in Vittoria, Brazil to cater to domestic demand. Further the company has also commissioned semi-solid facility in the Vittoria Pharmaceutical Complex. 

In 2005, The Company has made acquisitions in Poland, Italy and Venezuela. The Italian acquisitions was completed, another two acquisitions are awaiting minor approvals and expect to close these in the year 2006. The will continue to look towards newer acquisitions to fuel inorganic and organic strategies for the European Market. 

The company has expanded its Anti TB Facility at KRS Gardens, Bangalore is going on stream. The work on new warehouse and packaging facility commenced at KRS Gardens site at Bangalore. 

During the year, the company has increased its stake from 40% to 52.5% i February 2005 and further increased to 67 and in May 2005 in Strides Latina S.A Uruguay. And the company has acquired Strides Arcolab(UK) Limited, United Kingdom. 

DIRECTORS REPORT

TURNOVER AND PROFITS:

The total income during the year was Rs.7,847.44 Million as against Rs.6,621.33 Million in the previous year, an increase of approximately 18.5%. The Company has posted a net profit of Rs.1, 055.14

Million for the year ended December 31, 2009 as against a net profit of Rs.61.35 Million for the year ended December 31, 2008.

On a consolidated basis, the income stood at Rs.13,283.41 Million against Rs.13,312.46 Million; revenue from operations grew by 23% (revenue from continuing operations grew by 33%). Detailed analysis on financial performance is given in the Management Discussion and Analysis Report which forms part of this Directors' Report.

DIVIDEND:

A dividend of 15% (i.e., Rs.1.50 per equity share of Rs.10/- each) for the year ended December 31, 2009.

CAPITAL:

AUTHORISED SHARE CAPITAL:-

Pursuant to the approval of the Composite Scheme of Arrangement (the Scheme) for amalgamation of Global Remedies Limited, Grandix Pharmaceuticals Limited, Grandix Laboratories Limited and Quantum Remedies Private Limited with and into Strides Arcolab Limited, the Authorised Share Capital of the Company stands enhanced to Rs.1,517,500,000 divided into 89,750,000 equity shares of Rs.10/- each and 620,000 - 6% Cumulative Redeemable Preference shares of Rs.1,000/- each.

ISSUED AND PAID-UP SHARE CAPITAL:

THE COMPANY ALLOTTED:-

* 165,600 equity shares of Rs.10/- each fully paid up under its Employee Stock Option Plans.

* 13,524 equity shares of Rs.10/- each fully paid up to the erstwhile shareholders of Grandix Pharmaceuticals Limited and Grandix Laboratories Limited in terms of the Composite Scheme of Arrangement for amalgamation of Global Remedies Limited, Grandix Pharmaceuticals Limited, Grandix Laboratories Limited and Quantum Remedies Private Limited with and into the Company.

* 2,980,000 equity shares of Rs.10/- each were allotted to the Promoter Group on conversion of equivalent numbers of warrants.

Consequent to the above allotments, the issued, subscribed and paid up share capital of the Company is Rs.923,697,380 constituting 43,209,138 equity shares of Rs.10/- each and Rs.491,606 - 6% Cumulative Redeemable Preference share of Rs.1000/- each.

BUSINESS AND OUTLOOK:

The Company also successfully completed the reorganization of various businesses resulting in well articulated business divisions.

The reorganization involved hiving off it's Specialties Pharmaceuticals and Research and Development Business to Strides Specialties Private Limited, a wholly owned subsidiary, to attain greater efficiency.

The Company through a scheme of arrangement merged four of its subsidiaries, i.e,. Global Remedies Limited, Grandix Pharmaceuticals Limited, Grandix Laboratories Limited and Quantum Remedies Private Limited with and into the Company.

The Company now operates under the following three:

BUSINESS DIVISIONS:

* Specialties

* Pharmaceuticals

* Branded Generics

PFIZER TRANSACTION:

The Company entered into collaboration with Pfizer Inc. USA for generic products. Under the agreement, Pfizer Inc. to commercialise 40 off-patent products - primarily injectable cancer medicines to healthcare providers and patients in the United States. Products will be licensed/supplied by the Company and its subsidiary Onco Therapies Limited. First products are expected to be launched in the year 2010.

RESTRUCTURE OF ONCOLOGY ARRANGEMENTS:

The Company has restructured its Oncology arrangements with Aspen to acquire 100% interest in the Oncology JVs viz., Onco Therapies Limited ('OTL'), India and Onco Laboratories Limited ('OLL'), for a consideration of USD 117 Million. As part of the arrangement, Strides will license the existing and future oncology products to Pharmacare Limited, an Aspen Group company, for certain territories.

ACQUISITION OF PENICILLIN AND PENEMS FACILITY AT CAMPOS, BRAZIL FROM ASPEN:

The Company entered into an understanding with Aspen to acquire Penems and Penicillins Facility in Campos, Brazil with related products and IPs. Penems is a key domain for Strides for a consideration of approx USD 75 Million. The acquisition to be completed subject to obtaining regulatory approvals as may be required.

ACQUISITIONS/INVESTMENTS/JOINT VENTURES INVESTMENTS:

During the year, the Company made additional investment of Rs.97.86 Million in the share capital of Onco Therapies Limited, a subsidiary of the Company. This investment was made by way of transfer of assets pertaining to Oncology plant which was under construction.

JOINT VENTURES:

Strides Arcolab International Limited, a wholly owned subsidiary of the Company exited from a 50:50 joint venture shareholding interest in Laboratories Domac. S.L in Spain by sale of its entire holding to its Joint Venture partner Invent Pharma S.L.

Strides Arcolab International Limited increased its stake from 70% to 96.57% in Beltapharm S.p.A, Italy. Strides Arcolab International Limited also acquired the residual 50% stake in Plus Farma ehf, Iceland making Plus Farma ehf a wholly owned subsidiary of the Company.

MANAGEMENT DISCUSSION AND ANALYSIS

GLOBAL PHARMACEUTICAL:

The global pharmaceutical market reached USD 773 billion in turnover, growing at the rate of 4.8%, in 2008. The two largest markets the them and Europe, which contributed almost 73% to the global market in 2008, achieved growth rates of 1.4% and 5.8%, respectively. The European market is also expected to grow at a CAGR of 2% to 5% for 2008-2013.

The significant growth in global pharmaceutical market is expected to come from emerging markets. According to IMS Health, emerging markets outperformed developed ones in terms of their growth with a CAGR (2003- 2008) of 12-13%, whereas the CAGR of developed economies remained at around 6-8% for the same period.

The global pharmaceutical landscape is rapidly changing with big pharmaceutical companies building alternate growth engines and moving away from their singular focus on developed markets and patented products. Along with increased focus on emerging markets big pharmaceutical companies are also seeking increased presence in non-patented prescription drug categories including off-patent drugs, Branded Generics and over the- counter (OTC) drugs. Presence in these categories is considered critical to building a strong presence in most of the emerging markets. Growing realisation of the opportunity provided by emerging markets and the urgency to create firmer footholds ahead of competition, in these markets have accelerated the strategic changeover over the last couple of years.

GLOBAL GENERIC MARKET SCENARIO:

The global generics market is expected to grow at a CAGR of about 10.5% between 2007 and 2012. This growth is expected to be driven by the following factors:

* The estimated USD 116 billion worth of drugs going off-patent over the next five years

* Governments worldwide encouraging the use of generics to counter rising healthcare expenditure - particularly in countries with low generic penetration such as France, Spain, Italy and Japan

* The toughening macro-economic conditions leading to a greater shift towards generics usage.

Global injectables:

The global injectables market is estimated at USD 173 billion as on 2009, and it is forecasted to grow at 11% from (2008-11). (Source: IMS data as on September, 2009)

Changing paradigm:

An interesting fall-out of big pharmaceutical company's new operating paradigm involving aggressive Branded Generics play in emerging markets, along with generics in regulated markets, has been the hitherto unthinkable partnering of global pharmaceutical players and Indian generics. These partnerships have been catalyzed by big pharmaceutical's need for low-cost, reliable and world class manufacturers with the ability to develop and register a large suite of products across multiple geographies. This is critical for them to opertionalise their emerging markets/generic strategies without having to go through the lengthy process of developing these multiple products and then sinking in significant capex for manufacturing capabilities. Indian generics companies benefit by getting the formidable marketing resources of MNC pharmaceutical to sell their products -thereby improving the likelihood of garnering higher market share across products while enhancing capacity utilisation.

Advantages of Indian Pharmaceutical Companies Indian pharmaceutical companies have emerged as leading pharmaceutical providers to diverse international markets owing to their established credentials in low-cost manufacture, operations and research on the one hand; as well as API process improvements, faster recruitment for clinical trials, skilled manpower, developed regulatory skills and process innovation on the other.

GROWTH DRIVER:

Patent expiries: Patents for products worth USD 105 billion in the US are scheduled for expiry across the next nine years, an opportunity for generic formulators. Countries like India, where companies are focused on growing sales to regulated markets, are prepared to capitalise on this export opportunity.

OVERVIEW OF THE INDIAN ECONOMY:

* India is among the first few countries in the world to implement a broad- based counter-cyclic policy package to respond to the negative fallout of the global slowdown, and one of the first to emerge out of the global economic slowdown.

* The advance estimates for GDP growth for 2009-10 is pegged at 7.2%; positioning India as the second fastest growing economy after China

* The growth rate in manufacturing sector in December, 2009 was 18.5% - the highest in the past two decades.

* A major concern during the second half of 2009-10 has been the emergence of double digit food inflation. Government has set in motion steps, to bring down the inflation in the next few months and ensure that there is better management of food security in the country.

* Inflation was 9.89% for the month ended January, 2010; and there is a hardening of interest rates

* India's per capita income increased from Rs.37,490 to Rs.40,141 during 2008-09

Indian GDP progression over the period (%)

GDP at factor cost %

2005-06 9.5

2006-07 9.7

2007-08 9.2

2008-09 6.7

2009-10 7.2

(Source: Central Statistical Organisation)

STRIDES OVERVIEW AND POSITION:

During the year the Company restructured global operations into three separate businesses - Specialty, Pharmaceuticals and Branded Generics. It continued its proactive initiatives in ANDA filling; filed a record 51 in

2009. They partnered with the Ministry of Health, government of India in its efforts to contain 'Influenza - A (H1N1)'. The Company commenced operation of its state-of-the-art sterile plant with a dedicated oncology unit in Bangalore.

Their main priority was superior customer focus and proactive response. They strategically strengthened their capabilities and aligned ourselves with their partner’s requirements through product innovation, manufacturing excellence, operational flexibilities and leveraging IP in formulation technologies.

* Continue partnerships with big pharmaceutical and larger Generic companies; reinforcing their position as their most preferred partner.

* Expand business in Africa, India and Australasia for Branded Generics.

* Expand Grandix business in domestic market, by catering to untapped opportunities

INDUSTRY OVERVIEW: DRUGS AND PHARMACEUTICALS

The Indian pharmaceutical industry is estimated to be worth of US$ 6 billion, growing at over 13 per cent annually, Indian pharmaceutical companies now supply almost all the country’s demand for formulations and nearly 70 per cent of demand for bulk drugs.

The Indian pharmaceutical industry, which is a US $ 22 billion Industry, has been growing at a faster pace in recent years. The industry produces bulk drugs which include all major therapeutic groups requiring systematic and modern manufacturing technologies. In India, most of the formulations in various dosage forms are being produced in GMP compliant facilities. India now ranks 4th largest producer of drugs in the world which is accounting 8% of world’s production by volume and 1.5% by value. Indian pharma industry ranks 17th in terms of export value of bulk actives and dosage forms. Indian exports are exported to more than 200 countries around the globe including highly regulated markets of US, Europe, Japan and Australia. Product patent in pharmaceuticals has been introduced in the country with effect from 1st January, 2005 by amending the Patents Act, 1970 in conformity with the TRIPS agreement. The physical infrastructure in the four patent offices in the country (Kolkata, Delhi, Chennai and Mumbai) has been substantially strengthened and computerization has been introduced. Steps are now being taken to further augment and improve the software and human resources in these offices to enable them to deal with the new responsibilities.

Some of the official estimates published by the government shows that the exports of pharma constitute nearly 40 per cent of the production with formulations contributing 55 per cent and bulk drugs 45 per cent. The industry ranks 17th in terms of export value of bulk actives and dosage. It comprises large, medium and small-scale operators out of which some 300 companies together account for nearly 90 per cent of the domestic market, while the rest is accounted for by a large number of small companies which total about 9000 units. The export import policy guidelines for Drugs and pharmaceuticals stipulate that the Import of most of the bulk drugs, intermediates and formulations under Chapters 29 and 30 is free. However, quite a few narcotic drugs and psychotropic substances, that were restricted as per Exim Policy 2002-2007 at the instance of the Department of Revenue. On account of structural similarities and non availability of specific codes for many narcotic drugs and psychotropic substances, a large number of organic chemicals including vital bulk drugs and intermediates required by the Pharma industry were also put under restricted category by virtue of their coverage under 9 residual categories of “Others”. Keeping in view the difficulties of a large number of genuine actual users of these substances, the import restrictions on the narcotic drugs and psychotropic substances including those under “others” were lifted. At the same time a new regime for import of narcotic drugs and psychotropic substances has been brought in by DGFT vide Notification No.52 (RE-2005)2004 dated 9th March 2006.

Estimates show that the Pharma exports touched a level of over Rs.249420 millions during 2006-07. Exports constitute a substantial part of the total production of Pharmaceuticals in India. Another note worthy feature of export is more of dosage form export to advanced markets like Europe, US, CIS Africa etc. The trend of exports is as follows: -

YEAR	EXPORT (Rs. in Millions)
1998-1999	62560.60
1999-2000	72301.60
2000-2001	8574.70
2001-2002	97512.00
2002-2003	128261.00
2003-2004	152132.40
2004-2005	178578.00
2005-2006	225789.80
2006-2007	249420.00

According to IBEF, the domestic Indian pharmaceutical industry is likely to more than triple to US$ 20 billion by 2015 from the current US$ 6 billion to become one of the top ten pharmaceutical markets in the next decade. Ever since the new patent regime is in force, the pharmaceutical market is witnessing structural changes. Consequently, patented drugs are likely to see increased sales in the domestic pharmaceutical market, growing from virtually nothing at present to about US$ 2 billion in seven years.

According to a study done by Goldman Sachs, it is estimated that India will be the fifth largest pharmaceutical market in the world by 2020, with sales of US$ 43 billion. With the market is growing with increased disposable incomes, growing middle-class households, expansion of medical infrastructure, greater penetration of health insurance etc have made a positive impact on the pharmaceutical market. Consequently, a number of multinationals have entered the Indian Pharmaceutical market. Already 15 of the 20 largest pharmaceutical companies in the world have been doing business in India. In effect the drugs and pharmaceuticals constitute the 8th largest FDI category in India.

India is emerging as the global hub for contract research and manufacturing services (CRAMs) as the low cost and upgraded quality levels helped to put the destination as an emerging one. Some of the companies like Dishman Pharma, Divis Labs and Matrix Labs have been undertaking contract jobs for MNCs in the US and Europe. Pfizer, Merck, GSK, Sanofi Aventis, Novartis, Teva etc. are largely depending on Indian companies for many of their APIs and intermediates. The Indian CRAMS market which is valued at US$ 895 million in 2006 (as against US$ 533 million) accounts for between 6-7 percent of the global CRAMS market and many expect India will command at least 15 per cent of the market by 2009-10. Research agency Frost and Sullivan estimates this segment to reach close to US$ 6.6 billion by 2013. The Boston Consulting Group estimated that the contract manufacturing market for global companies in India would touch $900 million by 2010. Industry estimates suggest that the Indian companies bagged manufacturing contracts worth $75 million in 2004.

Contract research--including both drug discovery research and clinical research has been growing at a phenomenal rate. While clinical trials represent 65 per cent of this market and new drug discovery makes up the remaining 35 per cent. Frost and Sullivan estimates outsourced contract research in India to reach US$ 2 billion by 2010. Similarly, according to a McKinsey report, the global clinical trial outsourcing to India in the pharmaceutical industry is estimated to be worth US$ 1.23 billion by 2010.

Over 15 prominent contract research organizations (CROs) are now operating in the country which includes names such as Novartis, Johnson and Johnson, Pliva, Astra Zeneca, Bristol-Myers Squibb and Glaxo Smith Kline among others.

Contract manufacturing is another new opportunity for the Indian pharmaceutical industry. Already, India has the largest number of US Food and Drug Administration (US FDA)-approved plants outside the US, with over 100 facilities. And now even small and medium scale pharmaceutical companies are setting up new and upgraded high-quality manufacturing plants to take part in this growing segment.

About 40-50 new plants (which are in addition to the plants being set up by major Indian pharmaceutical companies) are likely to be commissioned by these companies in the next two years conforming to the quality standards suggested by the US FDA and the UK Medicines and Healthcare Regulatory Agency (MHRA), making India one of the largest drug manufacturers in the world.

Already, Indian drug companies account for over 25 per cent of the total generic drug applications made to the FDA of US, which accounts for over half of the US$ 60 billion market. Also, India has over 100 US FDA-approved plants, the highest number outside the US. Indian companies are also able to build their US generic pipeline with Indian filings of around 408 products.

Industrial Licensing for all bulk drugs cleared by Drug Controller General (India), all their intermediates and formulations has been abolished, subject to stipulations laid down from time to time in the Industrial Policy. 100% FDI is also permissible for the manufacture of Drugs and Pharmaceuticals.

Foreign Direct Investment (FDI) in Drugs and Pharmaceuticals:

FDI upto 74% in the case of bulk drugs, their intermediate Pharmaceuticals and formulations (except those produced by the use of recombinant DNA technology) would be covered under automatic route.

FDI above 74% for manufacture of bulk drugs will be considered by the Government on case to case basis for manufacture of bulk drugs from basic stages and their intermediates and bulk drugs produced by the use of recombinant DNA technology as well as the specific cell/tissue targeted formulations provided it involves manufacturing basic drugs Automatic approval for Foreign Technology Agreement (FTA) is already available in the case of all the bulk drugs cleared by Drug Controller General (India) , all their intermediates and formulations, except bulk drugs produced by the use of recombinant DNA technology.

National Pharmaceutical Pricing Authority (NPPA) attempts to streamline and simplify the procedures with regard to drug price monitoring and bring about a greater degree of transparency as well as objectivity to the whole exercise. Fixation and notification of drug prices, both of bulk drugs as well as formulations, is thus the most important function of the authority. The criteria for calculating the fair price are drawn from the Drugs (Prices Control) Order, legislation under the Essential Commodities Act. Set up in 1997, the authority has been enforcing the provisions of the Drugs (Prices Control) Order, dealing with all legal matters arising out of its decisions, undertaking and/or sponsoring relevant studies in respect of pricing of drugs/pharmaceuticals and rendering advice to the central government on changes/ revisions in the drug policy over the years. NPPA is currently fixing prices on the basis of Drugs Price Control Order (DPCO) 1995, which has separate methodology / procedure for price fixation / revision of bulk drugs and formulations.

Contingent Liabilities:

1. The Company has given the corporate guarantees to financial institutions and other parties towards credit facilities/advances, on behalf of subsidiaries up to Rs.1,592.39 Million. However the subsidiaries have used facilities to an extent of Rs.1,296.52 Million as at the year end. The Company's fixed assets (pari-passu second charge) and some of investments in the respective subsidiaries have been offered as security in respect of some of-these facilities. I n addition to the above, the Company has provided guarantees up to of Rs.746.00 Million in connection with borrowings of Sequent Scientific Limited (Sequent), which was a subsidiary at the time issuing such guarantee. However, Sequent had utilized up to Rs.146.00 Million of such facility as at the year end. The company is in the process of withdrawing such guarantees.

2. The Company has, arising from the assessment proceedings relating to earlier years, received demands totaling to Rs.245.49 Million from the income tax, authorities on account of certain disallowances considered by them. The Company has disputed the disallowances and has, preferred appeals against these demands.-Pending resolution of the same,, no provision has been made in the accounts for such disputed amounts.

3. The Company preferred appeal with the Cestat against the order of the Commissioner of Central Excise for Strides Arcolab Limited-Annual Report 2008 1AI disallowing transfer of cenvat credit of Rs.3.86 Million as on the date of conversion of one of the units of the Company in to a 100% EOU.

4. Bills discounted with Banks which are outstanding as on December.31,2007 was Rs.651.04 Million. Consequent to adoption of Accounting Standard 30, such balances at December. 31,2008 have been included under the short term secured loan from Banks

AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED DECEMBER 31, 2009

(RS. IN MILLIONS)

PARTICULARS	UNAUDITED		AUDITED
	3 Months ended 31.03.2010	3 Months ended 31.03.2009		12 Months ended 31.12.2009
1. (a) Net sales/ Income from Operations	3735.506	2842.577		13047.714
(b) Other operating income	79.729	73.720		23558.600
Total Income	3815.235	2916.297		13283.300
Expenditure
a) (Increase)/decrease in stock in trade and work in progress	(232.853)	(149.191)		(265.293)
b) Consumption of raw materials	1150.123	1231.374		4458.956
c) Purchase of Traded Goods	708.754	419.288		2813.997
d) Employee cost	537.986	416.373		1808.065
e) Depreciation	159.309	100.995		491.902
f) Other expenditure	792.325	502.271		2362.637
Total Expenditure	3115.644	25211.110		11670.264
3. Profit/ (Loss) from operations before other income, interest and Exceptional items (1-2)	699.591	395.187		1613.036
4. Other income	-	-		1.11
5. Profit / (Loss) before interest and Exceptional items (3+4)	699.591	395.187		1613.147
6. Interest	259.696	194.080		759.071
7. Profit / (Loss) after interest but before Exceptional items (5-6)	439.895	201.107		854.076
8. Exceptional items:
- Exchange Fluctuation loss / (gain) (Net)	174.194	(199.690)		131.636
- Profit/(Loss) on sale of Plant	-	-		113.654
- Changes in fair value of Options embedded in FCCBs	(111.473)	108.935		(41.115)
- Profit on FCCB Buyback	-	-		291.169
- Interest reversal on FCCB Buyback	-	-		79.961
9. Profit from Ordinary Activities before tax (7-8)	502.616	110.352		1429.381
10. Tax Expenses/ (Credit)	71.350	81.73		218.986
11. Net Profit from Ordinary Activities after tax (9-10)	431.266	102.179		1210.395
12. Extraordinary Item	-	-		-
13. Net profit/ (loss) for the period (11-12) a) Share of Minority Interest b)Share in associate	431.266 32.965 -	102.179 (26.39)		1210.395 113.554 -
14. Consolidated Profit after Minority Interest and Share from Associate	398.301	104.818		1096.841
15. Paid up equity share capital (Face value of Rs.10 per share)	432.091	400.500		402.156
16. Reserves (excluding revaluation reserves)				7240.918
17. Earning Per Share (Rs.)
Basic & Diluted EPS after Extraordinary items for the year (Rs. per share)
a) Basic EPS	9.43	2.40		26.49
b) Diluted EPS	8.45	1.70		19.67
18. Aggregate of Public shareholding :
- Number of shares	29898210	29707086		29884686
- Percentage of shareholding	69.19%	74.17%		74.31%
Promoter and Promoter Group Shareholding
a) Pledged / Encumbered
- Number of Shares	6896000	6896000		6896000
- Percentage of Shares (as a % of total shareholding of promoter & promoter group)	51.81%	66.67%		66.75%
- Percentage of Shares (as a % of total share capital of the Company)	15.96%	17.22%		17.15%
b) Non-Encumbered
- Number of Shares	6414928	3446928		3434928
- Percentage of Shares (as a % of total shareholding of promoter & promoter group)	48.19%	33.33%		33.25%
- Percentage of Shares (as a % of total share capital of the Company)	14.85%	8.61%		8.54%

NOTES:

1. Pursuant to the provision of clause 41 of the listing agreement, the company has opted to publish only the consolidated results. The standalone results of the Company can be viewed on the company’s website www.stridersco.com,or on the website of BSE (WWW.bseindis.com or NSE (www.nseindia.com)

2. The above Unaudited results of the Company has been reviewed by the Audit Committee and taken on record by the Board of Directors at their meeting held on April 22, 2010

3. Consequent to the approval of scheme of Arrangement by the Hon’ble High Courts of Judicature during the year ending December 31, 2009, the company has utilisted the Reserve for Business Restructure as under:

	Rs in Millions Quarter Ended 31.03.2010	Rs in Millions Quarter Ended 31.03.2009	Rs in Millions Year Ended 31.12.2009
-Impairment of:
Fixed Assets	-	-	72.698
Current Assets	-	-	902.938
Investment/Goodwill Written Off	-	-	1934.495
- Compansation in respect of Product return and early termination of procurement contract	-	-	364.573
- Depreciation and Amortisation	42.004	28.750	115.000
- Employee Compansation	45.366	-	677.645
- Other Expenses	3.361	-	117.133

Realisation of assets written off earlier

Impact if the company followed the Accounting Standard instead of the accounting treatment provided in the scheme -

On Net Profit for the quarter ended March,31,2010 – Decrease	(80.178)	(28.750)	(4184.482)
Earning / (Loss) per share (Face Value of Rs.10/-each) (Rs.)
Basic	(7.49)	1.68	(77.87)
Diluted	(7.00)	1.16	(77.87)

Further in terms of the ‘Scheme’ the company allotted 13524 equity shares of Rs.10 each fully paid, to the minority shareholders of Grandix pharmaceuticals Limited and Grandix Laboratories Limited on January,19,2010.

4.Exchange fluctuation gain (net) included under exceptional item comprises the unrealisted gain/losses arising out of the restatement of FCB’s ,External Commercial Borrowing Intra group loans given and gain/losses on forward exchange option contract

5. During the quarter, the company allotted 2980000 Equity shares of rs.10 each at premium of rs.81.15 per equity shares upon conversion of equal number of warrants which was allotted on April 13,2009. to a promoter Group Company and to relatives of Promoters

6.On April 19,2010 the company has redeemed Foreign Currency Convertible Bonds (FCB’s) of USD 34 Million which were due for repayment in accordance with the terms of issue of the bonds.

7. During the quarter ,the company and aspen pharmacare Holding Limited (Aspen) listed on the JSE South Africa entered into binding agreements to restructure their arrangements relating to the two oncology 50:50 Ventures, onco Therapies Limited, India and onco Laboratories Limited, Cyprus under which the Group will buy 50% Interest from Aspen for a consideration of US $ 117 MIO. These arrangement are subject to fulfillment of the conditions precedents referred in the agreement which include inter allia an approval from the exchange control department of the reserve bank of south Africa as of March 31^st 2010, the company continues to account the same as joint venture since condition precedents are yet to be fulfilled.

8. As apart of well articulated strategy to focus on core specialty injectible business, the company entered into an understanding with Aspen to acquire a facility in Campos, Brazil with related products and IP’S for a consideration of approximately US$ 75Mio.The acquisition is subject to obtaining of regulatory approval which are pending as of March 31,2010.

9. During the quarter, the company has completed the acquisition of Africa Pharmaceuticals Development ,Cameroon through its step down subsidiary.

10. On January 1, 2010.Green Cross Pharma Pte Limited, Singapore was merged with drug House of Austria (Asia) pte Limited, Singapore both the companies were

11. Information on Standalone Results:

Particulars	3 Months Ended 31.03.2010	Recasted 3Months Ended 31.03.2009 (Refer Note(b))	3 Months Ended 31.03.2009 (Refer Note (a))	12 Months Ended 31.12.2009
	(1)	(2)	(3)	(4)
Turnover	1313.878	965.979	1889.853	7694.420
Profit Before Tax	125.853	18.301	263.811	1165.542
Profit After Tax	100.645	6.368	251.878	1055.142

(a) The figures of quarter ended March 31, 2009 have been recasted to reflect the amalgamation of certain

Subsidiaries into the Company with effect from January 1, 2009 as approved by the Hon’ble High Courts of

Judicature

(b) The results for the quarter ended March 31,2009 have been recasted in Column 2 to exclude the results of the specialties business (which were hived off pursuant to a slump sale on December 30,2009) to make them comparable with that of the creations for the quarter ended March 31,2010.

12. The Company’s operation fall within a single business segment Viz ‘’Pharmaceuticals Products’’ and as such there is no reportable segment information as per Accounting Standard 17 issued under the relevant provisions of the Companies Act,1956.

13. Investor grievances received and disposed off during the quarter ended March 31, 2010:

a) Pending Complaints at the beginning of the quarter – Nil b) No. of Complaints received -16

c) Complaints disposed – 16 d) Complaints unresolved – Nil

14. The Previous year’s / Periods figures have been regrouped wherever necessary to conform to the current Period’s Classification.

(a) A Scheme of Arrangement (the 'Scheme') between the Company, some of its subsidiaries, its respective shareholders and Creditors under sections 391 to 394 of the Companies Act, 1956 was approved by the Honorable High Courts of Judicature at Bombay, Madras and Bangalore. The 'Scheme' provided for merger of (i) Grandix Pharmaceuticals Limited, (ii) Grandix Laboratories Limited, (iii) Global Remedies Limited, (iv) Quantum Remedies Private Limited, all Subsidiaries of the Company, hereinafter referred to as the " Transferor Companies" with the Company from January 1, 2009 (the 'Appointed date') and fair valuation of assets and liabilities of the Transferor Companies and the Company, as determined by the Board of Directors of the Company. The merger is effective from December 31, 2009 upon which the assets of the Transferor Companies and the Company were fair valued and the following amounts have been credited / debited to 'Reserve for Business Restructuring' (BRR), as specified in the Scheme. The details of the same are as under:

	Rupees in Millions except for EPS
Net surplus on Fair valuation of Assets of :-
- transferor Companies	146.766
- transferee Company	6891.777
	7038.543
Utilisation of BRR :
(a) Impairment of :
- Fixed Assets	72.698
- Current Assets	902.938
- Investments	27.783
(b) Compensation in respect of product return and for early termination of procurement contract	364.573
(c) Employee compensation plans and expenses	677.645
(d) Amortisation	115.000
(e) Expenses related to the Scheme and Other expenses	117.133
	2277.770
Closing balance in Reserve for Business Restructuring carried forward	4760.773

Further, in terms of the 'Scheme', the Company allotted 13,524 equity shares of Rs.10 each fully paid, to the minority share holders of Grandix Pharmaceuticals Limited and Grandix Laboratories Limited, on January 19, 2010.

Impact if the Company followed the Accounting Standards instead of the accounting treatment provided in the Scheme :-

On Net Profit for the year ended December 31, 2009 – Decrease - (2277.770 millions)

Earnings / (Loss) per share (EPS) (Face value of Rs.10/-each) (Rs.)

Basic - (31.34)

Diluted - (31.34)

(b) The Company hived off the undertakings comprising of 'Specialty Pharmaceuticals business' along with 'Research and Development Facility', on slump sale basis as a going concern, pursuant to a Business Transfer Agreement (BTA), with Strides Specialties Private Limited (SSPL), a wholly owned subsidiary of the Company, with effect from December 30, 2009, for a net consideration of Rs.3286.464 millions, to be settled partly by issue of equity shares of SSPL and partly by cash.

(c) The Company has granted 300,000 options under the Strides Arcolab ESOP-2008 (Director) at Rs.59.00 per option (exercise price) to few Directors of the Company and 100,000 options under the Strides Arcolab ESOP-2008 at Rs.59.00 per option (exercise price) to an eligible employee of the Company. 242,500 options were granted under the ESOP schemes to certain eligible employees of the Company. 165,600 options of Rs.10 each at a premium of Rs.95.75 per option were exercised and an equal number equity shares were allotted. 307,400 options lapsed during the year.

3. Exchange fluctuation gain (net) included under Exceptional items comprises the unrealised gains/losses arising out of the restatement of FCCBs, External Commercial Borrowings, intra group loans given and gains/losses on forward exchange option contracts.

4. The Company allotted 6,200,000 Warrants on April 13, 2009 to a Promoter Group Company and to relatives of Promoters at a price of Rs.91.15 per Warrant with an option to convert into 6,200,000 equity shares of Rs.10/- each. The said Warrants are due for conversion at anytime within 18 months from the date of allotment of Warrants. The upfront money of Rs.141.360 millions received has been disclosed as

'Monies pending allotment'

5. During the year, the following Companies became subsidiaries / step down subsidiaries of the Company:

(a) Strides Technology and Research Private Limited, India (b) Strides Pharma (Cyprus) Limited, Cyprus (c) Strides Specialties (Holdings) Limited, Mauritius (d) Strides Specialty (Cyprus) Limited, Cyprus, (e) Strides Specialties (Holdings) Cyprus Limited. Further, Farma Plus AS, Norway and Plus Farma ehf, Iceland became wholly owned subsidiaries subsequent to acquisition of balance 50% stake.

6. The Board of Directors has recommended a dividend of Rs.1.50 per share for the year ended December 31, 2009.

7. During the year, the Company has completed the acquisition of Green Cross Pharma Pte Limited, Singapore and Pharmasave Australia Pty Limited through its step down subsidiaries.

8. During the year, in accordance with RBI Policy, the Company has repurchased and cancelled Foreign Currency Convertible Bonds (FCCB's), aggregating to USD 26,000,000. The profits arising from the above have been included under the Exceptional Item.

9. The Company’s operations fall within a single business segment viz. “Pharmaceuticals Products” and as such there is no reportable segment information as per Accounting Standard 17 issued under the relevant provision of the Companies Act, 1956.

10. Investor grievances received and disposed off during the quarter ended December 31, 2009:

a) Pending complaints at the beginning of the quarter – Nil b) No. of Complaints received - 6

c) Complaints disposed - 6 d) Complaints unresolved - Nil

11. Consequent to the merger of some of the subsidiaries of the Company with itself, the current year figures are not strictly comparable with that of previous year. The previous year's figures have been regrouped wherever necessary to conform to the current year's classification.

FIXED ASSETS

· Freehold Land

· Leased Hold Land

· Buildings

· Furniture and Fixtures

· Office Equipment and Computers

· Plant and Machinery

· Motor Vehicles

· Registration and Brands

· Software Licences

WEBSITE DETAILS:

AN OVERVIEW:

Established in 1990, Strides is one of India’s integrated manufacturers and exporter of finished pharmaceutical dosage forms – both branded and generic. They are a significant global player in soft gelatin capsules and sterile parenterals with quality standards that meet the most stringent regulated market standards.

They have 13 world class plants in India, Singapore, Brazil, Mexico, Poland and Italy offering their partners the advantage of multi-Locational product sourcing.

They are among the world’s top 5 soft gelatin capsule manufacturers.

The R&D interweave offers end-to-end solutions from concept to delivery and a go-to-market pipeline of products that are patent non-infringing formulations across dosage forms.

They have marketing presence in 55 countries. This broad network facilitates partnering with global organisations ranging from Unicef, UNDP, Global TB Drug Facility, The Clinton Foundation to European and American pharma giants and even private labelers and distribution chains.

In addition, they undertake contract R and D and manufacture of pharmaceutical dosage forms. wow gold wow gold

LEADERSHIP THROUGH PARTNERING:

As pharma companies reach out to enhance their strength and competitiveness, their key requirement is for a synergistic partner. A partner who is truly global in skill sets, R&D, manufacturing practices and in attitude and vision.

At Strides, they are all that and more – because we believe in “Leadership through Partnering”. They are partners to more than 10 of the world’s top 50 pharma majors in Australia, South Africa, Europe, and USA.

The ethos centers around customer focus and rapid response. Over the last decade, they have systematically strengthened their capabilities in understanding and aligning ourselves with the partner’s needs. Through product innovation, manufacturing, operational flexibilities and leveraging their IP in formulation technologies, they have significantly enhanced the partner’s marketing leadership.

A STEP AHEAD IN MANUFACTURING:

Their manufacturing platform is global in scale and compliance. They are among the few fully integrated players in soft gels and steriles. Their quality standards meet the most stringent regulated market requirements. Strategic sourcing of APIs and high quality, cost effective manufacturing give their partners and them a competitive edge.

They have 13 world class plants in India, Singapore, Brazil, Mexico, Poland and Italy, all conforming to WHO’s cGMP guidelines. Their oral dosage forms plant in Bangalore is approved by MHHRA, TGA, MCC, ANVISA and a host of regulatory authorities from countries in Asia and Africa. This plant is also pre-qualified by WHO for manufacture of HIV/ AIDS and anti TB drugs and is approved by USFDA under PEPFAR.

They have dedicated facilities for the manufacture of cephalosporins, beta lactams and anti TB products (colored).

Their dosage forms range includes tablets, capsules, soft gelatin capsules, parenterals and semi-solids.

SOFT GEL CAPSULES

They are one of the world’s top 5 soft gel manufacturers with five dedicated lines in their ODF facility in Bangalore, India. They have dedicated lines to produce a range of soft gel products from nutraceuticals to Rx, specialty OTCs and immunosuppressants. Their patented technologies for dose conversions have been licensed for major products in the U.S.A.

Stringent pharmaceutical standards and operating procedures are applied to all products and processes. Even their nutraceuticals conform to exacting pharma standards and specifications.

They offer soft gel products from their existing pipeline as well as custom made formulations backed by comprehensive analytical support and stability data. Their in-house R and D team can develop new formulations or add innovations to existing product lines with process and analytical validation and stability studies.

They specialize in dosage form conversions and enteric coating of soft gels.

Customer needs are handled using cGMP methods including precision blending, encapsulating, full-service bottling and labelling. Their laboratory is equipped with HPLCs and other state-of-the-art analytical instruments that assure precision and quality driven manufacturing processes.

STERILES

Their sterile complex in Bangalore, India can produce products in a spectrum of therapeutic areas including beta-lactams and cephalosporins in multiple dosage forms.

The facility for non ceph non beta lactam steriles is approved by US FDA, MHRA, TGA, MCC and ANVISA. The facility for beta lactams is approved by MHRA, TGA, MCC and ANVISA.

STERILES CAPABILITIES:

· Freeze drying [FDV]

· Prefill Syringes [PFS]

· Ampoules and Vials

· Penicillins

· Cephalosporins

They have four manufacturing facilities in India and Poland with new green-field sites for penems coming up in Brazil. Their new green-field site coming up in India will include FDV, Oncology and a Hormonal Block. They have over 40 products licensed in regulated markets and over 20 ANDA filings to add to a strong pipeline of over 80 products in development.

PRESS RELEASE

STRIDES ARCOLAB ANNOUNCES US FDA APPROVAL FOR LIDOCAINE HYDROCHLORIDE INJECTION

· 16th STERILE INJECTABLES APPROVAL IN 2010

Strides Arcolab Limited (Strides) today announced that it has received USFDA approval for Lidocaine Hydrochloride Injection USP, 0.5% (5 mg/mL), 1% (10 mg/mL), Multi-dose vials.

The Company had earlier announced in October 2010 the following approvals received for Lidocaine:

_ Lidocaine Hydrochloride Injection USP, 20 mg/ML (preservative free), packaged in 100 mg/mL single-use vials.

_ Lidocaine Hydrochloride Injection USP, 0.5% (5mg/mL) & 1% (10mg/mL), packaged in singleuse vials.

According to IMS data, the total US market for Lidocaine injection in 2009 was approximated to US$ 61 million. Strides will be able to address about 50% of the market with the above approvals. The products are expected to be launched in the near future.

About Lidocaine Hydrochloride Injection

Lidocaine Hydrochloride Injection antiarrhythmic agent (used to treat irregular heartbeat) is administered intravenously by direct injection. The drug may also be used for resistant seizure treatment. It is contraindicated in patients with a known history of hypersensitivity to local aesthetics of the amide type.

About Strides Arcolab Limited:

Strides Arcolab, listed on the Bombay Stock Exchange Limited (532531) and National Stock Exchange of India Limited (STAR), is a global pharmaceutical company headquartered in Bangalore, India that develops and manufactures a wide range of IP-led niche pharmaceutical products with an emphasis on sterile injectables.

The company has 14 manufacturing facilities across 6 countries with presence in more than 75 countries in developed and emerging markets. Manufacturing is ably supported by a 350- scientist strong global R&D Centre located in Bangalore. Additional information is available at the company’s website at www.stridesarco.com.

STRIDES ARCOLAB ANNOUNCES SALE OF PRODUCT PORTFOLIO BY AKORN STRIDES LLC TO PFIZER INC

UNLOCKS VALUE OF THEJV PRODUCT PORTFOLIO

STRIDES ENTERS INTO SUPPLY ARRANGEMENT FOR THESE PRODUCTS

Bangalore, India, December 30, 2010: strides Arcolab Limited (BSE: 532531, NSE: SIAK) toddy announced that Akorn-Strides LLC, a joint venture between Akorn, Inc of USA and Strides’ Inc has entered into an agreement with Pfizer Inc. to sell 16 approved Abbreviated New Drug Approvals (ANDAs) and 6 filed ANDAs. Akorn-Strides will however, continue to manufacturer and distribute a limited number of the approved products until April 30, 2011.

Strides will be entitled to USD 28.2 Million in cash as it share of the consideration n H to entering into supply agreement with Pfizer for manufacture and supply of these products

Commenting on the transaction, Mr. Arun Kumar, Executive Vice Chairman and Group CEO of Strides stated “We are delighted that the divestiture of these products has created significant value for the two joint venture partners. This transaction will further strengthen the strategic partnership between Strides and Pfizer.”

ABOUT AKRON STRIDES LLC

Akron Strides LLC, was set up by Strides and Akorn Inc of USA as a 50:50: Joint Venture in 2004 to develop and market sterile injectable products for the US Market

ABOUT STRIDES ARCOLAB

Strides Arcolab, listed on the Bombay Stock Exchange Limited (53253 1 and National Stock Exchange of India Limited (STAR), is a global pharmaceutical company headquartered in Bangalore, India that developers and Manufactures a wide range of IP-led niche Pharmaceutical; products with an emphasis on sterile injectables.

The company has 14 manufacturing facilities across 6 countries with presence in mum thin 7 countries in developed and emerging markets. Manufacturing is ably supported by a 350 scientist strong global R&D Centre located in Bangalore.

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.44.45
UK Pound	1	Rs.71.58
Euro	1	Rs.63.01

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		57

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 EXPLANATIONS

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	Capability to overcome financial difficulties seems comparatively below average.	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.