1. Summary Information

		Country	India
Company Name	F D C LIMITED	Principal Name 1	Mr. Mohan A. Chandavarkar
Status	Good	Principal Name 2	Mr. Ashok A. Chandavarkar
		Registration #	11- 3176
Street Address	B-8, MIDC Industrial Estate, Waluj, Aurangabad – 431 136, Maharashtra, India
Established Date	23.09.1940	SIC Code	--
Telephone#	91-240-2554407 / 2554967 / 2554299	Business Style 1	Manufacturers
Fax #	91-240-2554299	Business Style 2	Exporter
Homepage	http://www.fdcindia.com	Product Name 1	Ciprofloxacin
# of employees	2400	Product Name 2	Cefadroxil
Paid up capital	Rs.187,065,000/-	Product Name 3	Azithromycin
Shareholders	Promoter - 65.76% Public shareholding - 34.24%	Banking	HDFC Bank Limited
Public Limited Corp.	Yes	Business Period	70 Years
IPO	Yes	International Ins.	-
Public Enterprise	Yes	Rating	Aa (75)
Related Company
Relation	Country	Company Name	CEO
Associates/Subsidiaries :	Netherlands	FDC Holdings, Netherlands B.V.	-
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2010		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	739,539,000	Current Liabilities	1,220,265,000
Inventories	889,715,000	Long-term Liabilities	24,380,000
Fixed Assets	2,501,549,000	Other Liabilities	239,071,000
Deferred Assets	0	Total Liabilities	1,483,716,000
Invest& other Assets	2,595,597,000	Retained Earnings	5,055,619,000
		Net Worth	5,242,684,000
Total Assets	6,726,400,000	Total Liab. & Equity	6,726,400,000
Total Assets (Previous Year)	5,396,359,000
P/L Statement as of	31.03.2010		(Unit: Indian Rs.)
Sales	6,495,803,000	Net Profit	1,488,193,000
Sales(Previous yr)	5,763,615,000	Net Profit(Prev.yr)	834,292,000

MIRA INFORM REPORT

Report Date :

12.01.2011

INQUIRY DETAILS

Given Name :	FDC LTD
Given Address :	142-48, S V Road, Jogeshwari (W), Mumbai – 400102, Maharashtra, India
Tel. No.:	91-22-26780652
Fax No.:	91-22-26788123

IDENTIFICATION DETAILS

Name :	F D C LIMITED
Registered Office :	B-8, MIDC Industrial Estate, Waluj, Aurangabad – 431 136, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	23.09.1940
Com. Reg. No.:	11- 3176
CIN No.: [Company Identification No.]	L24239MH1940PLC003176
TAN No.: [Tax Deduction & Collection Account No.]	MUMF03524D
PAN No.: [Permanent Account No.]	AAACF0253H
Legal Form :	It is a public limited liability company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturers and Exporter of Foods, Drugs and Chemicals

RATING & COMMENTS

MIRA’s Rating :

Aa (75)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 20000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having good track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. Company can be considered good for normal 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 :	Mr. Deshmukh
Designation :	Accounts Department
Date :	31.08.2010

LOCATIONS

Registered Office :	B-8, MIDC Industrial Estate, Waluj, Aurangabad – 431 136, Maharashtra, India
Tel. No.:	91-240-2554407 / 2554967 / 2554299
Fax No.:	91-240-2554299
E-Mail :	waluj@fdcindia.com ameya@fdcindia.com fdc@fdcubdua.com shenoy_shalu@rediffmail.com
Website :	http://www.fdcindia.com
Corporate Office :	142-48, Swami Vivekanand Road, Jogeshwari (West), Mumbai – 400 102, Maharashtra, India
Tel. No.:	91-22-26782542 /26780652 /26782653 /26782656 /26785176 /26787568 /26794379 / 26775282 / 26775283
Fax No.:	91-22-26786393 /26781912 /26788123 /26786194
Factory 1 :	142 / 48, S.V. Road, Jogeshwari (West), Mumbai - 400 102, Maharashtra, India
Tel. No.:	91-22-26780652 / 26782653 / 26782656 / 26782542 / 26787568 / 26794379
Fax No.:	91-22-26786393/26781912/26788123/26786194
Factory 2 :	B-8, MIDC Area, Waluj - 431 136, District Aurangabad, Maharashtra, India
Tel. No.:	91-240-2554407 / 2554299 / 2554967
Fax No.:	91-240-2554299
E-mail :	waluj@fdcl.com
Factory 3 :	Plot No. 19 & 20/2, MIDC Industrial Area, Roha - 402 109, District Raigad, Maharashtra, India
Tel. No.:	91-2194-263580 / 263692 / 263653/63264
Fax No.:	91-2194-263264
E-mail :	roha@fdcl.com
Factory 4 :	Plot No. G-1, MIDC Malegoan, Sinnar - 422103, District Nasik, Maharashtra, India
Tel. No.:	95-2551-230389 / 230674 / 230531 / 230338
Fax No.:	95-2551-230674
E-mail :	sinnar@fdcl.com
Factory 5 :	Verna Industrial Estate, Plot No. L-56 & L-57, Phase II-D, Verna, Goa - 403 722, India
Tel. No.:	91-832-2783882 / 2783883
Fax No.:	91-832-2783884
E-mail :	goa@fdcl.com
Factory 6 :	Village Khol, Bhud, Tahsil - Nalaghar, Baddi,, District - Solan, Himachal Pradesh - 173 205, India.
Tel. No.:	91-1795 - 323901 / 323902 / 323903 / 323904
Fax No.:	91-1795 - 244377
Branches :	Located at : Pune New Delhi Lucknow Ghaziabad Chennai Kolkatta Hyderabad Indore Jaipur Bangalore
Regional Offices :	Located at Ahmedabad Bangalore Patna Pune Varanasi.
International Office	India UK South Africa

DIRECTORS

Name :	Late Mr. Ramdas A. Chandavarkar (1933-2001)
Designation :	Chairman Emeritus
Name :	Mr. Mohan A. Chandavarkar
Designation :	Chairman and Managing Director
Name :	Mr. Ashok A. Chandavarkar
Designation :	Director
Name :	Mr. Nandan M. Chandavarkar
Designation :	Director
Name :	Mr. Ameya A. Chandavarkar
Designation :	Director
Name :	Mr. Girish C. Sharedalal
Designation :	Director
Name :	Dr. Satish S. Ugrankar
Designation :	Director
Name :	Dr. Rahim H. Muljiani
Designation :	Director
Name :	Dr. Nagam H. Atthreya
Designation :	Director
Name :	Dr. Ravindra Y. Chittal
Designation :	Director

KEY EXECUTIVES

Name :	Ms. Shalini Kamath
Designation :	Company Secretary
Name :	Late Mr. Anand L. Chandavarkar (1905-1959)
Designation :	Founder

SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	72,714,656	39.04
Bodies Corporate	49,790,000	26.73
Sub Total	122,504,656	65.76
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	122,504,656	65.76
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	16,451,282	8.83
Financial Institutions / Banks	8,000	-
Central Government / State Government(s)	12,800	0.01
Venture Capital Funds	21,387	0.01
Insurance Companies	1,728,157	0.93
Foreign Institutional Investors	4,763,155	2.56
Sub Total	22,984,781	12.34
(2) Non-Institutions
Bodies Corporate	6,549,800	3.52
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	19,126,013	10.27
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	12,653,856	6.79
Any Others (Specify)	2,459,423	1.32
Clearing Members	149,801	0.08
Non Resident Indians	2,309,622	1.24
Sub Total	40,789,092	21.90
Total Public shareholding (B)	63,773,873	34.24
Total (A)+(B)	186,278,529	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
Total (A)+(B)+(C)	186,278,529	-

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporter of Foods, Drugs and Chemicals

Products :

Item Code No. [ITC Code]	Production Description
300420.19	Cefixime Trihydrate / Cefuroxime Axetil
300420.33	Ciprofloxacin
300420.70	Cefadroxil
300420.64	Azithromycin

• Cardiovascular
• Dermatologicals
• Anti Vertigo
• Anti Migraine
• Oral Rehydration Salt Preparations
• Anti Amoebic
• Anti Histamine
• Anti Asthamatic
• Cough Syrups
• NSAIDs
• Gastro Intestinal
• Haematinics
• Haemostatics
• Anti Bacterials
• PDEF 5 Inhibitor
• Opthalmics Antibacterials
• Antibacterial + Steroid
• Anti Glaucoma
• Anti Virals
• NSAID’s
• Ocular Demulscents
• Viscoelastics
• Anti Allergic
• Anti Fungal
• Anti Oxidant
• Food supplements
• Antipyretic & Decongestant
• Anticold

PRODUCTION STATUS (31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Formulations
Injectables/Ophthamics	Litres	324000	244178.22
Tablets, Capsules etc	Nos. in Millions	2119.200	1161.300
Cream, Powder, Ointmnets, Granules, Liquids, etc	Kgs/Litres	6306840	3006555.03
Food Products
Powder, Liquids, etc	Kgs/Litres	1068000	1249874.20
Capsules	Nos. in Millions	--	--
Basic Drugs	Kgs	1215000	76541.70

GENERAL INFORMATION

No. of Employees :

2400

Bankers :

· Corporation Bank, Aurangabad, Maharashtra, India

· HDFC Bank Limited, Aurangabad, Maharashtra, India

· State Bank of India, Aurangabad, Maharashtra, India

Facilities :

Unsecured Loan	31.03.2010 (Rs. In Millions)
Interest free Sales tax loans [ Due within one year – Rs. 3.562 millions (previous year – Rs. 3.962 millions)	24.380
Total	24.380

Banking Relations :	Satisfactory
Auditors :	S. R. Batliboi and Associates Chartered Accountants Mumbai, Maharashtra
Branch Auditors :	· Ford, Rhodes, Parks and Company Chartered Accountants Mumbai, Maharashtra, India · Khanna, Thaker and Company Chartered Accountants Lucknow, Uttar Pradesh, India · B. Khosla and Company Chartered Accountants Jaipur, Rajasthan, India · D. J. Dave and Company Chartered Accountants Indore, Madhya Pradesh, India
Joint Venture :	Fair Deal Corporation Pharmaceutical SA [Pty] Limited [up to 11^th December, 2006]
Associates/Subsidiaries :	· FDC Holdings, Netherlands B.V. · FDC International Limited · FDC Inc. · Fair Deal Corporation Pharmaceutical SA [Pty] Limited [from 12^th December, 2006]

CAPITAL STRUCTURE

As On 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
250,000,000	Equity Shares	Re. 1/- each	Rs.250.000 millions

Issued and Subscribed Capital :

No. of Shares	Type	Value	Amount
189423529	Equity Shares	Re. 1/- each	Rs.189.424 millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
186278529	Equity Shares	Re. 1/- each	Rs.186.279 millions
	Add: 3,145,000 Equity Shares Forfeited		Rs.0.786 million
	TOTAL		Rs.187.065 millions

 Note:

Of the above shares:

i) 15000 (previous year – 15000) shares of Re. 1/- each were allotted as fully paid up pursuant to a contract for consideration other than cash.

ii) 28900000 (previous year – 28900000) shares of Re. 1/- each were allotted as fully paid up by way of bonus shares by capitalization out of General reserve.

iii) 95730551 (previous year – 95730551) shares of Re. 1/- each were allotted as fully paid up by way of bonus shares by capitalization out of Securities Premium Account.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		187.065	188.955	192.247
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		5055.619	4018.772	3560.875
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		5242.684	4207.727	3753.122
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		24.380	26.864	128.745
TOTAL BORROWING		24.380	26.864	128.745
DEFERRED TAX LIABILITIES		239.071	184.328	139.572
TOTAL		5506.135	4418.919	4021.439
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2501.549	2360.558	1699.608
Capital work-in-progress		300.650	270.900	500.593
INVESTMENT		2294.947	1113.212	1222.277
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	889.715	953.993	908.979
	Sundry Debtors	354.785	346.706	188.831
	Cash & Bank Balances	143.103	97.037	146.069
	Other Current Assets	0.000	0.000	0.506
	Loans & Advances	241.651	253.953	289.974
Total Current Assets		1629.254	1651.689	1534.359
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	414.467	360.356	0.000
	Other Current Liabilities	368.944	318.003	691.804
	Provisions	436.854	299.081	243.594
Total Current Liabilities		1220.265	977.440	935.398
Net Current Assets		408.989	674.249	598.961
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		5506.135	4418.919	4021.439

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	6495.803	5763.615	4896.667
		Other Income	317.247	116.471	192.220
		TOTAL (A)	6813.050	5880.086	5088.887
Less	EXPENSES
		Cost of Materials	2821.352	2634.758	2497.876
		Employee Cost	718.786	582.837	517.970
		Operating Expenses	1316.996	1472.008	1167.076
		TOTAL (B)	4857.134	4689.603	4182.922
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1955.916	1190.483	905.965
Less	FINANCIAL EXPENSES (D)		13.199	14.604	14.807
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1942.717	1175.879	891.158
Less/ Add	DEPRECIATION/ AMORTISATION (F)		144.803	127.331	111.509
	PROFIT BEFORE TAX (E-F) (G)		1797.914	1048.548	779.649
Less	TAX (I)		309.721	214.256	122.086
	PROFIT AFTER TAX (G-I) (J)		1488.193	834.292	657.563
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1273.611	964.317
Less	APPROPRIATIONS
		Final dividend – proposed	325.987	235.051	NA
		Dividend Tax	54.142	39.947
		Transfer to General Reserve	300.000	250.000
		Reversal of excess provision of dividend	(2.573)	0.000
	BALANCE CARRIED TO THE B/S		2084.248	1273.611
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	558.774	506.439	392.756
		Interest	2.811	2.015	3.924
		Dividend Gross	0.000	0.000	11.354
		Other Earnings	0.114	0.151	0.041
	TOTAL EARNINGS		561.699	508.605	408.075
	IMPORTS
		Raw Materials	330.869	341.238	245.137
		Packing material	28.826	13.650	12.761
		Stores & Spares	11.451	18.205	0.547
		Capital goods	57.666	60.749	51.274
		Intangible assets	32.400	0.000	0.000
	TOTAL IMPORTS		461.212	433.842	309.719
	Earnings Per Share (Rs.)		7.97	4.37	3.43

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010
Type	1^st Quarter	2^nd Quarter
Net Sales	1748.280	2053.660
Total Expenditure	1346.220	1464.440
PBIDT (Excl OI)	402.060	589.220
Other Income	41.160	82.530
Operating Profit	443.220	671.750
Interest	3.210	3.350
PBDT	440.010	668.410
Depreciation	39.100	43.970
Profit Before Tax	400.900	624.430
Tax	47.500	121.060
Profit After Tax	353.400	503.370
Extraordinary Items	0.000	0.000
Net Profit	353.400	503.370

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	25.82	14.19	12.92
Net Profit Margin (PBT/Sales)	(%)	27.68	18.19	15.92
Return on Total Assets (PBT/Total Assets}	(%)	43.52	26.13	24.11
Return on Investment (ROI) (PBT/Networth)		0.34	0.25	0.21
Debt Equity Ratio (Total Liability/Networth)		0.24	0.24	0.25
Current Ratio (Current Asset/Current Liability)		1.34	1.69	1.64

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Promoted as a partnership firm in 1936 by the late Anand Chandravarkar to import pharmaceutical dosage forms, specialised infant foods and surgical goods Fairdeal Corporation (P) Limited, as the company was known, was converted into a private limited company in 1940. It set up a formulation unit at Jogeshwari, Bombay in 1949. 

FDC's subsidiaries are FDC Holdings, Netherlands B V, FDC International Limited,UK and FDC Inc,New Jersey ,USA . Fair Deal Corporation Pharmaceutical SA (Pty) Limited is its Joint Venture Entity. 

The company manufactures Electral, oral rehydration salt (ORS), being a leader in this segment with market share has improved from 1.24% to 1.32% and its market rank has improved from 25th to 22nd. FDC manufactures bulk drugs, formulations and food products. The plant at Roha manufactures pharma dosage forms, food products and bulk drugs for the anti-rheumatic, anti-asthmatic, opthalmic and ENT segments.  

The company part financed its technical upgradation/modernisation/backward integration/expansion plans from the proceeds of its initial public issue in Jan.'96. The company set up a modern manufacturing plant at Goa for manufacture of tablet dosage forms. The plant has commenced commercial production in Sep 2000. The plant is designed to meet UK/US standards on solid dosage form. 

In Feb. 2001, the company has signed a marketing tie-updeal with Aspen Pharmacare of South Africa. Through this alliance, FDC will be initially marketing 10-12 ophthalmic products manufactured at its plants in India and approved by the UK Medicines Control Agency in South Africa. 

FDC will also enter into a licensing arrangement with Aspen Pharmacare for solid dosage forms and oral rehydration salts, to be manufactured locally in South Africa at Aspen's facilities with knowhow from FDC. Aspen Pharmacare is the largest listed pharmaceutical company in South Africa and a dominant player in generic medicine. The total market for ophthalmic products in South Africa is estimated at Rs.787.000 millions, and FDC hopes to achieve a 30% marketshare in five years. 

During 2000-01, the company's Roha plant, manufacturing basic raw materials, was inspected and approved by US FDA. The company is also setting up a modern manufacturing plant at a separate site in Goa. The plant will be a world class facilities with quality systems of International GMP Standards and it will also enable the company to enter into US market. The trial runs and commerical production is expected to be commenced in March 2004. To tap the Sub Sahara African countries FDC is planning to set up a marketing joint venture in South Africa and Russia. 

FDC is setting up a manufacturing facility at Baddi, Himachal Pradesh, for the manufacturing of Cephalosporin drugs. This facility is expected to be operational in 2006. The company has received approvel from US FDA for its sterile manufacturing facility for ophthamlmic dosage forms at Waluj, Aurangabad and an analytical research and development laboratory at Jogeshwari, Mumbai. Also the company is setting up an additional facility at Waluj by adding one more Form-Fill-Seal(FFS) machine during the year 2004-05. 

During the year 2004-2005, FDC has received a certification for its plant at Waluj conforms to the Quality Management System Standards ISO 9001:2000 and ISO13485:2003 respectively. This will enable the company to enhance its exports to European countries. 

In the year 2004-05, the company has issued bonus equity shares in the ratio of 1:1. 

In 2006, The company has expanded its installed capacity of Basic Drugs, Capsules and Formulations (Cream, Powder, Ointments etc.) by 2350 kgs, 20,00,000 nos and 1342200 kgs respectively during the year. With this expansion the total capacity of Basic Drugs, Capsules and Formulations (Cream, Powder, Ointments, etc) has been increased to 119050 kgs, 19.20 nos in crores and 77,77,920 respectively. 

The company has set up a production facility at Baddi, Himachalpradesh, the production at this new site will commence from July 2006.

BUYBACK OF EQUITY SHARES

The shareholders vide a postal ballot resolution dated 21.12.2009, approved the buyback of 86,50,000 fully paid up equity shares having a face value of Re. 1/- each, through the stock exchanges, at a price not exceeding Rs. 65/- per share, upto an amount of Rs. 560.000 millions.

The buyback of shares commenced on 12.04.2010. The Company has however not been able to buyback any shares in the buyback offer, since the current market price is higher than the maximum offer price, stipulated in the buyback offer.

BUSINESS REVIEW

The world economy witnessed signs of recovery from one of the worst global recession. Even though India experienced the tremors of the global economic melt down, the impact was not that severe. It is expected that by the year 2015, the Indian Pharmaceutical Market (IPM) will be valued at US $20 billion. Many factors will lead way to a healthy growth in the pharma sector. Generics are seen as the future markets, wherein India and China are expected to play key roles.

The Indian Pharma market looks bright, with loads of opportunities for growth. The increasing disposable income, the growing health awareness, the increase in the lifestyle related diseases, the easy availability of modern medicinal amenities and affordable medical insurance will increase the demand for the domestic and allopathic medicines. Further, the increasing population in the ageing group, will boost the demand for the typical age related diseases such as cardiovasculars, diabetics, hypertensives and oncology.

The IPM grew by 17.7% to touch the market size of Rs. 417010.000 millions during the year ended March 2010. Around 2,100 products were introduced in the current year 2009-2010. Indian Companies continued to lead the IPM as compared to the multinationals. Indian Companies outgrew the market at 15.9%, while multinationals registered a growth of 15%. Acute segment continued to dominate the market.

The Indian Pharma Industry still has to face some great challenges. The new price control policy is still pending review by the Government. Compulsory licensing, patent oppositions and litigations, increasing regulations and

compliances, infrastructure development and menace of counterfeit drugs are seen as major hurdles.

Against the above market background, we give below a brief review of various functions of the Company:

a. Marketing

The Company registered a growth of 12.8% as against the IPM growth of 17.7%. The Company is ranked at the 23rd position, attaining a market share of 1.68%. [Source: Organisation Research Group (ORG) March, Moving Annual Total (MAT) 2010]

In 2009, the Company's top brand 'ELECTRAL' was launched in a ready to serve tetra pack. This brand has registered a robust growth and is the only innovative World Health Organisation (WHO) recommended Oral Rehyderation Salt (ORS) in tetra pack for the first time in the country. This brand has been well accepted by pediatricians for its rationale osmolarity.

Gutrite, with its aggressive performance in the pre- probiotic combination market has done impressively well and has been very well appreciated by pediatricians.

The Company introduced various products during the year 2009-2010 which are being aggressively promoted in various therapeutic categories. The performance of the new products are encouraging.

With a view to improve the doctor coverage, the Company has launched a new division with a primary focus on coverage of pediatricians. The new division will have a pan India presence in the current year.

b. Financial Performance

The Company's turnover and net profits increased by 11.30% and 78.38% respectively over the previous year.

The measures initiated by the Company in terms of investments in the field / new product pipeline and cost control have resulted in better sales and profitability.

As you are aware, the Company's treasury operations suffered a set back in the previous year due to extreme market volatility. However, with the new Government in place during the current year, the markets have stabilised and have yielded good returns during the current year.

On international front the Company was not much affected by foreign exchange fluctuations, due to less dependence on exports.

Cost controls across all levels of functions is a continuous and ongoing exercise.

The Company's internal control procedures commensurate to the extent and nature of its operations. The internal audit reports are regularly placed before the audit committee for its review.

c. Exports

The annual export turnover of the Company for the year ended 31.03.2010 was Rs. 558.774 millions as compared to Rs. 5,06.439 millions for the year ended 31.03.2009. The improved performance resulted from products exported to USA, UK, South America, Ukraine, Myanmar and Afghanistan. New product registrations were received in the UK, Ukraine, Malaysia, Vietnam, Kenya, Lithuania, Chile, Ethiopia and Mozambique. Opportunities for markets in USA, UK and rest of the world are being explored.

Major NGOs continued to endorse their faith in Company's competence and reliability in delivering quality products. The Company is a preferred source for procurement of ORS, ReSomal and Zinc Sulphate tablets by the leading NGOs for their emergency procurement plans.

RESEARCH & DEVELOPMENT

a. Formulations

The Company as reported earlier, has launched products in the various therapeutic groups. R & D is in the pipeline for various other products. Cost reduction exercise was completed on products which would result in cost savings besides being environmental friendly and solvent free process.

The Company recently commissioned NOVEL DRUG DELIVERY RESEARCH LABORATORY,(NDDR) for increasing overall therapeutic and commercial value of commonly prescribed drugs, by enhancing their performance and reducing adverse effect profile, thereby improving patient convenience and compliance. The current focus of the NDDR is on the selected therapeutic segments like anti-infectives, respiratory and anti-inflammatory agents.

Various patent applications and dossier filing were undertaken during the current year.

b. Synthetics

Laboratory process development for the synthesis of Famciclovir was developed and technology was successfully transferred to Roha Plant.

Backward integrated APIs in Dermatology and Ophthalmology segments are under act ive development. In collaboration with National Chemical Laboratory, Pune, several compounds with antifungal activity have been developed. Few of those compounds have shown promising results.

Seven process patents have been filed. Three Patents have been granted for improved process for Dorzolamide and manufacture of Flurbiprofen, respectively. U.S. Drug Master File submissions for Latanoprost is in the final stage.

c. Nutraceuticals

The Company successfully launched brand extension to its well established and recognised energy drink 'ENERZAL' Orange and Lime flavour.

After the successful launch of its infant milk substitute, MUM-MUM 1, the Company is in the process of launching MUM-MUM 2, a specially developed infant milk substitute for infants between 6 months to 1 year taking into account the nutritional needs of the infants.

d. Biotechnology

As reported to you earlier, with regard to the license technology agreement signed by the Company with an Israel based Company, for production and purification of recombinant protein licensed to FDC, the Company has received the test license from Daman Food and Drug Administration, for containerisation of the recombinant product in the pre-filled syringes from an external party. Compilation of data for consistency batch dossier is underway. The consistency batch data will be submitted to the Department of Bio-technology, for obtaining permission to conduct pre-clinical trials of the recombinant product.

PERSONNEL

The overall industrial and employee relations remained healthy. Information as per section 217(2A) of the Companies Act, 1956, read with Companies (Statement of Particulars of Employees) Rules, 1975, forms a part of this report. However, as per the provisions of section 219(1)(b)(iv) of the said Act, this report and the accounts are being sent to all shareholders excluding the particulars of employees under section 217(2A). Any shareholder interested in obtaining a copy of the statement may write to the secretarial department at the corporate office of the Company.

SOCIAL RESPONSIBILITIES

In discharge of its social obligations, the Company regularly contributes to trusts formed for charitable purposes. FDC also assists several organisations in conducting medical camps all over the country.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30.06.2010

[RS. IN MILLIONS]

Particular	Unaudited
	Quarter Ended 30.06.2010
Sales	1761.051
Less: Excise Duty	30.352
a) Net Sales	1730.699
b) Other operating Income	17.576
TOTAL	1748.275
Expenditure
(Increase)/Decrease in stock in trade and work in progress	85.055
Consumption Raw Material and packing materials	469.781
Purchase for traded goods	223.999
Employees Cost	203.616
Depreciation and Amortisation	39.104
Other Expenditure	363.771
TOTAL	1385.326
Profit from operations before other income and interest	362.949
Other Income	41.163
Profit before Interest	404.112
Interest	3.211
Profit from operating Activities before tax	400.901
Tax expenses	47.500
Net Profit for the period	353.401
Paid-up Equity Shares Capital (Face Value Re. 1 each)	186.279
Reserves excluding revaluation reserves as per Balance Sheet of previous accounting year	--
Basic and diluted Earning Per Shares (Rs.)	1.90 Not annualised
Public Shareholding
- Number of Shares	63773873
- Percentage of Shareholding	34.24%
Promoters and Promoter Group shareholding
a) Pledged / Encumbered
- Number of shares	Nil
- Percentage of shares (As a % of the total shareholding of promoters and promoter group )	Nil
- Percentage of shares (as a % of the total share capital of the company)	Nil
b) Non- Encumbered
- Number of shares	122504656
- Percentage of shares (As a % of the total shareholding of promoters and promoter group )	100.00%
- Percentage of shares (as a % of the total share capital of the company)	65.76%
Note: 1) The above stand alone financial results were reviewed by the audit committee and taken on record by the Board of Director at its meeting held on 27.07.2010 and have been subjected to a limited review by the statutory auditors. 2) There were no complaints pending at the beginning of the quarter. The company had received 4 investor compliant during the quarter ended 30.06.2010. All complaints have been disposed off. 3) The company has only one segment of activity namely “Pharmaceuticals” 4) Previous year’s figure have been regrouped / reclassified wherever necessary.

FIXED ASSETS:

• Leasehold land
• Freehold land
• Buildings
• Plant and Machinery
• Laboratory testing machines
• Electrical Installations
• Furniture
• Fixtures and Fittings
• Office Equipments
• Water coolers
• Air-conditioners
• Vehicles.

As Per Website Details

HISTORY

1936 With a modest beginning in 1936 - marketing vitamins and a range of prescription formulations - FDC set up its first formulations manufacturing facility in 1949.

1963 Subsequently, in 1963, FDC pioneered the manufacture of specialized ophthalmic formulations in India.FDC was the first organization to introduce the BFS (BLOW-FILL-SEAL) technology for ophthalmics in South East Asia.

1972 In 1972, FDC initiated the concept of Oral Rehydration Salts (ORS). Today its pioneer brand 'Electral', stands apart with a special identity- an impressive achievement in a fiercely competitive market.

1984 FDC's API plant at Roha (Maharashtra) was among the first few API facilities in India to get US-FDA approval in 1984. Since then, FDC has to its credit a number of new molecules, introduced for the first time in the nation.

NEWS

29.10.2009

They are pleased to inform that the board of directors at its meeting held on 29.10.2009, inter-alia discussed on the buyback of equity shares which was approved by the board, at its meeting held on 09.09.2009. The board has now taken the following decision, which shall be subject to the approval of the shareholders through the postal ballot route:

• The maximum offer price is increased from Rs. 60 per equity share to Rs. 65 per equity share.
• The maximum offer size is increased from Rs. 390.000 millions to Rs. 560.000 millions, which is more than 10% but less than 25% of the paid up capital as on date and free reserves as on 31.03.2009
• The above said buyback will be subject to all such appropriate approvals if any.

National Awards fro r and Deffort in Industry

For breakthrough R and D efforts, FDC has been awarded the "National Award for R and D effort in the industry" by the Department of Scientific Affairs, Ministry of Commerce, Government of India.

Apart from being WHO-GMP certified, FDC's API and formulation manufacturing facilities are approved by regulatory authorities from all over the globe, including UK MHRA, US FDA, ANVISA (Brazil), and MCC (South Africa).

Milestones:

2008

• Received US FDA nod for two ophthalmic products
• USFDA approval received for Waluj without any observations (No 483's)

2007

• MHRA approval received for Goa- I
• MHRA reapproval received for Waluj

2006

• Forbes rates FDC as the "BEST UNDER A BILLION COMPANIES"

2005

• First US-FDA approval for ophthalmic facility at Waluj
• Filed 2 ANDAs for ophthalmic dosage forms in the U.S.

2004

• JV in the UK converted to a Wholly Owned Subsidiary Established JV in South Africa

2002

• First UK-MHRA approval for oral solids facility at Goa

1999

• Formed a JV in UK

1998

• UK-MHRA approval for ophthalmic facility at Waluj

1996

• Public issue of 26, 28, 200 equity shares of Rs. 10 each at a premium of Rs. 90 each
• FDC awarded 'Export House' status
• FDC established a specialized & dedicated field force to promote its ophthalmic specialties

1994

• FDC became the first company in India to introduce ophthalmics in blow-fill-seal packs, which optimize sterility and are highly user friendly

1992

• National Award from the Council of Scientific Research and Industry for Indigenous R&D of Flurbiprofen and Timolol

1991

• Biotechnology research center set up at Waluj.
• Started production of Timolol Maleate (API).

1989

• Began commercial production of Flurbiprofen

1987

• Commissioned a formulation Plant at Waluj, Aurangabad (Maharashtra)

1986

• FairDeal Corporation (Pvt.) Ltd. was renamed FDC Private Limited and thereafter FDC Limited

1985

• First US FDA approval of API plant at Roha

1984

• Foods division set up for manufacture of specialized infant foods at Roha

1977

• Active Pharmaceutical Ingredient (API) plant commissioned at Roha, Maharashtra

1974

• FairDeal's R&D facilities obtain recognition from the Government of India

1972

• Electral introduced by FairDeal – a result of pioneering work in rehydration therapy

1963

• FairDeal introduced Vanmycetin Eye Drops – starting point for its ophthalmic and ENT range

1949

• Formulation plant established in Jogeshwari, Mumbai

1936

• Mr. Anand Chandavarkar set up FairDeal Corporation (FDC) to import drugs, infant foods and surgical appliances for distribution in India

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.45.32
UK Pound	1	Rs.70.54
Euro	1	Rs.58.70

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	8
--RESERVES	1~10	9
--CREDIT LINES	1~10	8
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		75

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.