MIRA INFORM REPORT

Report Date :

19.09.2011

IDENTIFICATION DETAILS

Name :	ALEMBIC LIMITED (w.e.f. 31.05.1999)
Formerly Known As :	Alembic Chemical Works Company LIMITED
Registered Office :	Alembic Road, Vadodara – 390 033, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	30.07.1907
Com. Reg. No.:	04-0033
Capital Investment / Paid-up Capital :	Rs.267.040 millions
CIN No.: [Company Identification No.]	L26100GJ1907PLC000033
TAN No.: [Tax Deduction & Collection Account No.]	BRDA00819A
PAN No.: [Permanent Account No.]	AABCA7950P
Legal Form :	Public Limited Liability Company. The company's shares are listed on the Stock Exchanges.
Line of Business :	Manufacture and sell bulk drugs and pharmaceutical formulations in human and animal healthcare.
No. of Employees :	4058 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (67)

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 12000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a decade old company having fine track. General Financial position of good. There appears some dip in the turnover of the company due to pharmaceutical undertaking of the company got demerged and transferred to Alembic pharmaceuticals Limited w.e.f. 1^st April 2010. Trade Relations are reported as fair. Business is active. Payments are reported to be correct and as per commitments. The 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 DECLINED BY

Name :	Mr. Samit Patel
Designation :	Accounts Manager
Name :	Mr. Mitanshu Shah
Designation :	Vice President in Finance

LOCATIONS

Registered Office / Factory 1 :	Alembic Road, Vadodara – 390 033, Gujarat, India
Tel. No.:	91-265-2284074 / 75 / 2280550 / 2280880 / 3053333
Fax No.:	91-265-2280331/2228293/2281229 / 2282506/2282934/2281508/ 2282506
E-Mail :	sanjay.bhatt@alembic.co.in alembic@alembic.co.in
Website :	www.alembic-india.com
Factory 2 :	Panpharm (Formulation Division), Panelav, Taluka Halol, District Panchmahals – 389 350, Gujarat
Factory 3 :	Plot No. 21, 22, EPIP – Phase I Jharmajri, Baddi, Tehsil – Nalagarh, District Solan, Himachal Pradesh
Factory 4 :	Village Karakhadi, Taluka: Padra, District Vadodara
Branch Office :	2nd  floor, Prime Corporate Park, Behind ITC Grand Maratha Sheraton, Sahar Road,  Andheri  (E), Mumbai – 400 099, Maharashtra
Tel. No.:	91-22-30611698
Fax No.:	91-22-30611682

DIRECTORS

As on 31.03.2011

Name :	Mr. Chirayu R. Amin
Designation :	Chairman and Managing Director
Address :	F-10/192, Race Course Circle, Vadodara – 390 007, Gujarat, India
Qualification :	B. Sc., MBA
Date of Appointment :	01.05.1983
Name :	Mrs. Malika C. Amin
Designation :	Whole Time Director
Address :	F-10/192, Race Course Circle, Vadodara – 390 007, Gujarat, India
Qualification :	M.A.
Date of Appointment :	02.07.1988
Name :	Dr. Babubhai R. Patel
Designation :	Director
Address :	Opposite Brahman Sabha Hall, Pradap Road, Vadodara – 390 001, Gujarat, India
Qualification :	M.A., MRCP EDIN.
Name :	Mr. Pranav N. Parikh
Designation :	Director
Address :	Laxmi Mills Estate, D. Moses Road, Mahalaxmi, Mumbai – 400 011, Maharashtra, India
Qualification :	B. Com., Bus. Admn.
Name :	Mr. K. G. Ramanathan
Designation :	Director
Address :	192, Jolly Maker 3, 119, Cuffe Parade, Mumbai – 400 005, Maharashtra, India
Qualification :	P G (Physics) and IAS
Name :	Mr. Paresh Saraiya
Designation :	Director
Date of Appointment :	31.01.2007
Name :	Mr. Rajkumar Baheti
Designation :	Director, Company Secretary and President – Finance
Address :	Arihant Flats, 2^nd Floor, 27, Sevaknagar, Vadodara – 390 007, Gujarat, India
Qualification :	B. Com., ACA, FCS
Name :	Mr. Pranav Amin
Designation :	Director and President – International Business
Date of Appointment :	31.01.2007
Name :	Mr. Milin Mehta
Designation :	Director
Date of Appointment:	30.03.2010
Name :	Mr. Ranjitbhai R. Patel
Designation :	Director
Address :	“Shivam”, Old Padra Road, Vadodara – 390 015, Gujarat, India
Date of Birth/Age :	84 Years
Qualification :	B. Com.
Experience :	42 Years
Name :	Mr. Ramanlal M. Kapadia
Designation :	Director
Address :	49/50, Marti Mandir Society, Iskon Temple Road, Vadodara – 390 007, Gujarat, India
Date of Birth/Age :	69 Years
Qualification :	M. Com. LLB., DTP, FICWA, FCS, AIMA.DM
Experience :	44 Years

KEY EXECUTIVES

Name :	Mr. Dipak Chauhan
Designation :	Accounts Executive
Name :	Mr. Samit Patel
Designation :	Accounts Manager
Name :	Mr. Mitanshu Shah
Designation :	Vice President in Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2011

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	13,416,635	10.05
Bodies Corporate	71,336,190	53.43
Sub Total	84,752,825	63.48
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	84,752,825	63.48
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	1,292,709	0.97
Foreign Institutional Investors	12,137,649	9.09
Sub Total	13,430,358	10.06
(2) Non-Institutions
Bodies Corporate	4,430,032	3.300
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 millions	26,204,746	19.63
Individual shareholders holding nominal share capital in excess of Rs. 0.100 millions	3,537,557	2.85
Any Others (Specify)	1,187,396	0.89
Clearing Members	460,430	0.34
Non Resident Indians	690.286	0.52
Overseas Corporate Bodies	750	--
Trusts	35,930	0.03
Sub Total	35,332,625	24.26
Total Public shareholding (B)	48,763,089	36.52
Total (A)+(B)	133,515,914	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	--	--
Total (A)+(B)+(C)	133,515,914	100.00

BUSINESS DETAILS

Line of Business :

Manufacture and sell bulk drugs and pharmaceutical formulations in human and animal healthcare.

Products :

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

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Bulk Drugs and Chemical and Intermediates	MMU/ MT	#	2,522.393

Notes:

* Including production on loan licence basis, captive consumption, samples and purchases of finished products.

** Entire generation of electricity is for captive consumption only.

# Installed Capacity: The Installed capacity is flexible as the plant is versatile .enabling the Company to produce in different capacity and therefore, it varies depending upon the product programme.

@ The Company has filed necessary Memorandum with Secretariate of Industrial Approval for generating electricity.

*** Entire production is on loan license basis.

GENERAL INFORMATION

No. of Employees :

4058 (Approximately)

Bankers :

• Bank of Baroda, B\CBB, 101, Payal Complex, Sayajiganj, Vadodara, Gujarat
• HDFC Bank Limited
• Standard Chartered Bank
• ABN-AMRO Bank N V, Vadodara, Gujarat
• ICICI Bank Limited, Vadodara, Gujarat
• IDBI Bank Limited, Vadodara, Gujarat
• State Bank of India , Madame Cama Road, Mumbai, Maharashtra, India
• Indian Bank, Vadodara, Gujarat
• Punjab National Bank, Vadodara, Gujarat
• Union Bank of India, Vadodara, Gujarat
• Axis Bank Limited, Vadodara, Gujarat
• Vijaya Bank, Vadodara, Gujarat
• ING Bank NV, Vadodara, Gujarat
• Vysya Bank, Vadodara, Gujarat
• Central Bank of India

Facilities :

Secured Loans	Rs in Millions As on 31.03.2011	Rs in Millions As on 31.03.2010
A. From Financial Institutions, Banks and NBFC:
1. 1 0.80% Non Convertible Debentures (Against first hypothecation charge on all movable plant and machinery ranking pari-passu with other lenders.) (Redeemable in three equal installments commencing from June 201 0)	0.000	750.000
2. 9.25% Non Convertible Debentures (Against first hypothecation charge on all movable plant and machinery ranking pari-passu with other lenders.) (Redeemable at the end of third year in July 2012 and September 2012)	0.000	500.000
3. Foreign Currency Loans: External Commercial Borrowing against first hypothecation charge on all movable plant and machinery ranking pari-passu with other lenders. {Due within one year Rs. 147.527 Millions (PY. Rs. 218.216 millions)}	0.000	442.581
B. From Banks for Working Capital: Against first hypothecation charge on stocks and book-debts ranking pari-passu with other lenders.	155.959	800.549
Total	155.959	2493.130

Unsecured Loans	Rs in Millions As on 31.03.2011	Rs in Millions As on 31.03.2010
Fixed Deposits From:
Public	0.000	491.409
Shareholders (due within one year Rs. 101.250 millions)	0.000	3.000
Short Term Loans From:
Banks (due within one year Rs. 270.000 millions)	523.995	145.078
Others	0.000	1.140
Commercial Paper {Maximum outstanding during the year Rs. 1500.000 millions}	0.000	950.000
Total	523.995	1590.627

Banking Relations :

Satisfactory

Auditors :

Name :

K. S. Aiyar and Company

Chartered Accountants

Address :

Laxmi Estate No. F – 07/08, Shakti Mills Lane, off Dr. E. Moses Road, Mahalaxmi, Mumbai - 400011

Group of Companies :

· Shreno Limited (Glass Division)

· Paushak Limited

· Shreno Limited (Engineering Division)

Subsidiary:

Alembic Global Holding SA.

Associates:

• Alembic Pharmaceuticals Limited
• Sierra Healthcare Limited
• Nirayu Private Limited
• Quick Flight Limited
• Shreno Limited
• Paushak Limited
• Alembic Export Limited
• Viramya Packlight Limited
• Incozen Therapeutics Private Limited
• Rhizen Pharmaceuticals
• Sierra Investments Limited
• Whitefield Chem Tech Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
150000000	Equity Shares	Rs. 2/- each	Rs.300.000 Millions
	Total		Rs.300.000 Millions

Issued, Subscribed Capital :

No. of Shares	Type	Value	Amount
138464270	Equity Shares	Rs. 2/- each	Rs. 276.929 Millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
133515914	Equity Shares	Rs. 2/- each	Rs. 267.031 Millions
9365	Forfeited Equity Shares	Rs. 2/- each	Rs. 0.009 millions
	Total		Rs.267.040 millions

Of the above :

1. 6,39,300 Equity Shares of Rs.2/- each (Previous Year 6,39,300 Equity Shares of Rs.2/- each) have been allotted as fully paid up pursuant to contract without payment being received in cash.

2. 9,20,36,620 Equity Shares of Rs. 2/- each (Previous Year 9,20,36,620 Equity Shares of Rs.2/- each) have been allotted as fully paid up Bonus Shares by Capitalisation of Rs. 0.700 Million/- from Share Premium Account, Rs.168.350 Millions/- from Capital Redemption Reserve and Rs.15.023 Millions/- from General Reserve.

3. 33,45,450 Equity shares of Rs. 2/- each (Previous Year 33,45,450 and 7,24,240 of Rs.2/- each) fully paid, were alloted to the and 7,24,240 Shareholders of erstwhile Neomer Limited, and Darshak Limited, respectively, pursuant to the Scheme of amalgamation / merger without payment being received in cash.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		267.040	267.040	274.393
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1826.620	2890.293	2995.513
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2093.660	3157.333	3269.906
LOAN FUNDS
1] Secured Loans		155.959	2493.130	2157.634
2] Unsecured Loans		523.995	1590.627	2596.774
TOTAL BORROWING		679.954	4083.757	4754.408
DEFERRED TAX LIABILITIES		0.000	138.405	64.107
TOTAL		2773.614	7379.495	8088.421
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2020.763	3931.846	4047.795
Capital work-in-progress		0.994	38.972	71.629
INVESTMENT		162.376	84.918	84.462
DEFERREX TAX ASSETS		5.624	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	622.640	2449.493	2383.889
	Sundry Debtors	471.478	1861.193	1989.025
	Cash & Bank Balances	12.621	20.829	163.111
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	89.247	1254.443	1268.011
Total Current Assets		1195.986	5585.958	5804.036
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	542.801	1868.185	1587.477
	Other Current Liabilities	12.115	204.234	189.671
	Provisions	57.213	189.780	142.353
Total Current Liabilities		612.129	2262.199	1919.501
Net Current Assets		583.857	3323.759	3884.535
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2773.614	7379.495	8088.421

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2007.842	10215.129	11019.656
		Other Income	37.694	43.001	51.404
		TOTAL (A)	2045.536	10258.130	11071.060
Less	EXPENSES
		Material Consumption	1263.947	3505.101	4331.323
		Purchase of Finished Goods	7.008	1173.658	1386.145
		Excise Duty	(2.094)	56.473	78.804
		Manufacturing Expenses	303.739	778.161	902.550
		Employee’s Expenses	269.234	1454.677	1316.920
		Research and Development Expenses	18.484	432.680	403.000
		Marketing and Distribution Expenses	18.969	921.607	871.203
		Others	73.126	947.409	822.859
		Increase/ Decrease in Stock	36.855	22.098	[307.269]
		Foreign Exchange Difference	0.000	0.000	350.717
		Expenses under Voluntary Retirement Scheme	42.232	0.000	0.000
		TOTAL (B)	2031.500	9291.864	10156.252
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		14.036	966.266	914.808
Less	FINANCIAL EXPENSES (D)		23.988	300.533	400.613
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(9.952)	665.733	514.195
Less/ Add	DEPRECIATION/ AMORTISATION (F)		100.677	430.190	383.056
	PROFIT BEFORE TAX (E-F) (G)		(110.629)	235.543	131.139
Less	TAX (H)		18.390	28.702	58.314
	PROFIT AFTER TAX (G-H) (I)		(129.019)	206.841	72.825
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		753.235	723.615	797.276
Less	APPROPRIATIONS
		Debenture Redemption Reserve	0.000	79.170	75.000
		Dividend – Equity Shares	0.000	66.758	54.877
		Corporate Dividend Tax – Equity Shares	0.208	11.346	9.326
		Reversal of Provision of Dividend – Buy back shares	0.000	0.630	0.000
		Reversal of Provision of Corporate Dividend Tax- Buy Back Share	0.000	0.107	0.000
		General Reserve	0.000	20.684	7.283
	BALANCE CARRIED TO THE B/S		609.995	751.761	723.615
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	212.406	3125.537	4272.553
	TOTAL EARNINGS		212.406	3125.537	4272.553
	IMPORTS
		Raw Materials	123.713	1024.188	1763.194
		Stores & Spares	3.188	25.253	32.536
		Capital Goods	0.194	5.912	17.667
	TOTAL IMPORTS		127.095	1055.353	1813.397
	Earnings Per Share (Rs.)		(0.65)	1.53	0.53

QUARTERLY RESULTS

PARTICULARS	30.06.2011
	Unaudited
Net Sales	395.500
Total Expenditure	366.100
PBIDT (Excl OI)	29.400
Other Income	7.200
Operating Profit	36.600
Interest	13.600
Exceptional Items	(23.900)
PBDT	(0.900)
Depreciation	32.500
Profit Before Tax	(33.400)
Tax	(4.700)
Provisions and contingencies	0.000
Profit After Tax	(28.700)
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	(28.700)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(6.30)	2.02	0.66
Net Profit Margin (PBT/Sales)	(%)	(5.50)	2.31	1.19
Return on Total Assets (PBT/Total Assets}	(%)	(3.43)	2.47	1.33
Return on Investment (ROI) (PBT/Networth)		0.05	0.07	0.04
Debt Equity Ratio (Total Liability/Networth)		0.63	2.01	2.04
Current Ratio (Current Asset/Current Liability)		1.95	2.47	3.02

LOCAL AGENCY FURTHER INFORMATION

HISTORY

One of the oldest pharmaceutical companies in India, Alembic formerly known as Alembic Chemical Works Company has was founded in 1907. It manufactures pharmaceuticals and chemicals, bulk drugs (penicillin and other antibiotics) and formulations. 

In 1995, the veterinary division of the company was tied up with the animal health division of Hindustan Ciba-Giegy to export eight veterinary products to Ciba (Bangladesh). In 1998-99, the installation work of Cephalosporin-C recovery plant has been completed and that of 7-ACA was commissioned in Oct.'00. 

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

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

During March 2004 the company has issued bonus equity shares to its shareholders in the ratio of 2:1. The company has increased the installed capacity of Tablets and Capsules and Oral Preparation and Ointments by 900 Million Nos and 3528 MT respectively during the year 2004-05 and with this expansion the total installed capacity of Tablets and Capsules and Oral Preparation and Ointments has increased to 4058 Million Nos and 9462.616 MT respectively.

During 2004-05 the company has launched 23 new products including line extensions to expand its product portfolio. Further the company has launched ZERO a new generation, no calories, Sucralose Based Sugar Substitute which gave entry for the company into the high-growth lifestyle OTC product segment. 

The company has set up a formulation manufacturing facility at Baddi in Himachal Pradesh with a capital investment of Rs.280 Millions spread over 19000 sq. mtrs and the plant has 900 million tablets and 600 million liquid oral bottles production capacity annually. Further the company has invested Rs.216 Millions for a new 120000 sq.ft R and D facility. 

In 2006, The Company has increased the installed capacity of Tablets and Capsules and Oral Preparation and Ointments by 595 Million Nos and 720 MT respectively during the year 2005-06 and with this expansion the total installed capacity of Tablets and Capsules and Oral Preparation and Ointments has increased to 4653 Million Nos and 10182.616 MT respectively.

DEMERGER OF PHARMACEUTICAL UNDERTAKING :

The “Pharmaceutical Undertaking” of the Company has been demerged and the same is transferred to Alembic Pharmaceuticals Limited with effect from appointed date i.e. 1st April, 2010. The Hon’ble High Court of Gujarat has sanctioned the scheme of arrangement vide order dated 24th January, 2011, a certified true copy of which was received by the Company on 21st March, 2011. The Company filed the said order with the Registrar of Companies, Gujarat on 1st April, 2011. Alembic Limited was holding 5,50,00,000 equity shares of face value of Rs.2/- each in Alembic Pharmaceuticals Limited(APL). APL has issued and allotted 13,35,15,914 equity shares of face value of Rs.2/- each to the shareholders of the Company on 15th April, 2011 in ratio of 1:1. As per the scheme of arrangement, APL has submitted applications for listing of 18,85,15,914 equity shares of face value of Rs.2/- each to Bombay Stock Exchange Limited(BSE) and National Stock Exchange of India Limited(NSE). Consequent upon demerger, becoming effective from 1st April, 2010, the figures of current year are not comparable with previous year. The figures of previous year have been regrouped wherever necessary.

OPERATIONS:

Consequent upon demerger, the Company’s operations will include (i) manufacture of predominantly fermentation and chemistry based bulk drugs (APIs) at its Vadodara Undertaking and (ii) power generation through its co-generation power plant and through wind mills (the Power Business). (iii) The Company also has some real estate in Vadodara which can be potentially developed. The Company has plans to commence its real estate business and accordingly a part of the land has been converted as stock in trade for the said business. The Company will launch its maiden residential project in this financial year after obtaining approval from all the concerned authorities.

The Company’s Gross Sales including export incentives was Rs.2169.100 millions for the year ended 31st March, 2011 as compared to Rs.10320.600 millions for the previous year.

The profit before Interest, Depreciation, Nonrecurring Income and expenses and Taxes was Rs.56.300 millions for the year under review as compared to Rs.966.200 millions for the previous year. During the year, the interest and financing cost was Rs.24.000 millions as compared to Rs. 300.500 millions in previous year.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Industry Perspective vis-à-vis Company Consequent upon demerger and transfer of Pharmaceutical Undertaking to Alembic Pharmaceuticals Limited, the Company will be operating Vadodara Undertaking. The Vadodara Undertaking of the Company is engaged in the business of manufacture of predominantly fermentation and chemistry based bulk drugs (APIs) and is currently going through many challenges. The Vadodara Undertaking was established many decades ago and hence, some of its plant, machineries and other equipments are very old. Further, being an old facility, it is not designed in line with present regulatory and business requirements. The Company is operating cogeneration power plant and wind mills.

The Company owns some land area at Vadodara which can be potentially used for real estate development in future. The Company is having a “Business Park” wherein the space is being rented on lease basis to various tenants. FINANCE: The Company has registered a total income of Rs. 2019.300 millions for the year under review as compared to Rs. 10241.400 millions for the previous year ended on 31^st March, 2011. The Company incurred a net loss of Rs. 129.000 millions compared to net profit of Rs.206.800 millions for the previous year ended on 31st March, 2011.

FINANCE

The Company has registered a total income of Rs. 20.193 millions for the year as compared to Rs. 10241.400 millions for the previous year ended on 31^st March, 2011. The Company incurred a net loss of Rs. 129.000 millions compared to net profit of Rs.206.800 millions for the previous year ended on 31st March, 2011.

OUTLOOK:

The business is facing stiff price competition from Chinese manufacturers. The Company together with other manufacturers had applied for levy of anti dumping duty on such imports, which has not been favourably considered by the Government of India. The Company has also filed a writ petition in the Hon’ble Gujarat High Court in this respect. In view of this situation the Vadodara Undertaking needs to be reorganized and right sized to enable it to survive the competitive pressures. The activities of the Vadodara Undertaking will also need greater focus and other restructuring measures to make it cost efficient and competitive.

The Company has plans to commence its real estate business and accordingly a part of the land has been converted as stock in trade for the said business. The Company will launch its maiden residential project in this financial year after obtaining approval from all the authorities concerned. The Company is also exploring various options for development of other real estate projects. Similarly the Power Business also has good opportunity for growth and consolidation.

INTERNAL CONTROL SYSTEMS AND ADEQUACY:

The Company maintains a system of well-established policies and procedures for internal control of operations and activities. The internal audit function is further strengthened in consultation with statutory auditors for monitoring statutory and operational issues. The Company has appointed M/s. S.H. Bathia & Associates, Chartered Accountants, as Internal Auditors. The prime objective of this audit is to test the adequacy and effectiveness of all internal control systems and suggest improvements. Significant issues are brought to the attention of the audit committee for periodical review.

Fixed AssetS:-

• Freehold Land
• Leasehold Land
• Buildings
• Employees Quarters
• Plant and Machinery
• R and D Equipment
• Furniture and Fixtures
• Office Machinery
• Vehicles

Intangible Assets

• (Trade Mark)

AS PER WEBSITE

Company Profile

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

Milestone

1907 Alembic Chemical Works Company Limited is started, primarily engaged in the manufacture of Tinctures and Alchohol at Baroda.

1909 French Distillery plant for pharmaceutical purposes installed at Baroda.

1940 Started manufacturing Alembics famous Cough syrup, Vitamins, Tonics and Sulphur Drugs.

1945 Alembic Glass · 1952 Research and Development activity begins

1961 The Late Shri Lal Bahadur Shastri, former Prime Minister of India, inaugurates the Penicillin Plant.

1962 Shreno (M/C and EQUIP MFG)

1967 Bulk Manufacturing of Vitamin B12 by fermentation starts off using know-how from Pierell Company, Italy.

1968 Streptomycin was formulated for the first time

1969 Paushak (Phosgene Chemicals)

1971 Erythromycin was manufactured for the first time using expertise from Eli Lilli-USA.

1972 Launched a brand of Erythromycin- "Althrocin"

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

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

1983 Started the large-scale production of 6-APA using immobilized enzymes.

1985 Entry made into Specialty Chemicals

1992 Received First Chemexcil Award Roxythromycin Bulk Production Commercialized

1994 Azithromycin Bulk Production Commercialized

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

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

1998 Launched Azithral Liquid- The first of its kind in the world

1999 Achieved ISO 9002 Certification for its Manufacturing Facility in Baroda.

2000 Achieved ISO 14001 Certification for its Manufacturing Facility in Baroda.

Shri Suresh Prabhu- Union Minister For chemicals and Fertilizers, GOI inaugurates the Cephalsoporin-C Facility by

Launched the Generic Division.

2001 CO'S ( Certificate of Suitablity ) issued by EDQM for Roxithromycin.

Launched Cephalsoporin Bulk Active.

BUSINESS DESCRIPTION

Alembic limited is an India-based company. The Company is engaged in the manufacture of fermentation and chemistry-based bulk drugs (APIs) at its Vadodara undertaking and power generation through its co-generation power plant and through wind mills (the Power Business). The Company also has some real estate in Vadodara. Alembic limited in engaged in power generation through co-generation power plant and wind mills. It has three co- generation power plant with a total of 11 megawatts. The Company has four windmills of total five megawatts. For the nine months ended 31 December 2010, Alembic Limited's revenues increased 15% to RS10.12B. Net income increased 64% to RS640.9M. Revenues reflect an increase in domestic sales, higher other operating income and an increase in other income. Net income also reflects a decrease in purchase of traded goods and lower interest expenses(net). Alembic Limited is engaged in manufacturing synthetic active pharmaceutical ingredients and other drugs.

CHIRAYU R. AMIN

Non-Executive Chairman of the Board, Managing

Reuters Biography (Alembic Limited)

Shri. Chirayu R. Amin is Non-Executive Chairman of the Board, Managing Director of Alembic Ltd. He is M.B.A. from U.S.A. Mr. Chirayu Amin is the Chairman of Alembic Limited, a century old group in India, pioneer in Healthcare / Pharmaceutical Industry. Mr. Chirayu Amin is former President of FICCI. He is Vice President of Board of Control of Cricket in India (BCCI) and President of Baroda Cricket Association (BCA). Besides, he is also trustee in hospital and schools of Alembic Group. His presence on the Board has been immensely beneficial to the Company. He was working with the Company as Managing Director since 1983. Mr. Chirayu Amin was non-rotational Director as he was Managing Director of the Company. However, consequent upon demerger of Pharmaceutical Undertaking, he has ceased as Managing Director of the Company and therefore, he will be liable to retire by rotation. He is also holding Directorships in Alembic Pharmaceuticals Limited, Shreno Limited, Elecon Engineering Co. Ltd., Paushak Limited, AGI Developers Limited, United Phosphorus Limited, Quick Flight Limited, Gujarat Flying Club, Sierra Investments Limited, Sierra Healthcare Limited, Nirayu Private Limited, Alembic Europe Pvt. Ltd. UK, Alembic Global Holding, SA and Panasonic Energy India Co. Limited

Malika C. Amin - Whole Time Director - Director/Board Member

Dr. Babubhai R. Patel is Non-Executive Independent Director of Alembic Limited . He is an eminent Physician & Cardiologist with over 45 years of experience. His qualifications are M.B., M RCP Edin (Cardiology). He has been a Director of the Company for the past 35 years and his presence on the Board has helped immensely because of his experience in the field of medicine. He is a Member of the Audit Committee and Shareholders/ Investors Committee ofthe Company.

K.G. Ramanathan – Director - Director/Board Member

Paresh M. Saraiya - Director - Director/Board Member

Ashok Tulankar - Vice President - Production and Director Director/Board Member

Rajkumar Baheti - President-Finance and Company secretary - President

K Srinivas - President - Business Development - President

Praharsh Mehta - General Manager - Domestic Marketing

Division Head Executive - N Pandey - Non-Executive Chairman of the Board, Managing

Chirayu R. Amin – Director - Managing Director

REUTERS BIOGRAPHY (ALEMBIC LIMITED)

Shri. Chirayu R. Amin is Non-Executive Chairman of the Board, Managing Director of Alembic Ltd. He is M.B.A. from U.S.A. Mr. Chirayu Amin is the Chairman of Alembic Limited, a century old group in India, pioneer in Healthcare / Pharmaceutical Industry. Mr. Chirayu Amin is former President of FICCI. He is Vice President of Board of Control of Cricket in India (BCCI) and President of Baroda Cricket Association (BCA). Besides, he is also trustee in hospital and schools of Alembic Group. His presence on the Board has been immensely beneficial to the Company. He was working with the Company as Managing Director since 1983. Mr. Chirayu Amin was non-rotational Director as he was Managing Director of the Company. However, consequent upon demerger of Pharmaceutical Undertaking, he has ceased as Managing Director of the Company and therefore, he will be liable to retire by rotation. He is also holding Directorships in Alembic Pharmaceuticals Limited, Shreno Limited, Elecon Engineering Co. Ltd., Paushak Limited, AGI Developers Limited, United Phosphorus Limited, Quick Flight Limited, Gujarat Flying Club, Sierra Investments Limited, Sierra Healthcare Limited, Nirayu Private Limited, Alembic Europe Pvt. Ltd. UK, Alembic Global Holding, SA and Panasonic Energy India Co. Limited

Sanjay S Bhatt - Joint Company Secretary - Company Secretary

Chirag K. Shukla - Company Secretary and Compliance officer - Company Secretary

Reuters Biography (Alembic Limited)

Mr. Chirag K. Shukla has been appointed as Company Secretary and Compliance officer of Alembic Ltd., with effect from July 29, 2011. He is an associate member of Institute of Company Secretaries of India

Ashish Babtiwale - Sales Manager - Sales Executive

Ashok Tulankar - Vice President - Production and Director - Manufacturing Executive

PRESS RELEASE :

Accord Fintech (India)

09 September 2011

India, Sept. 09 -- Alembic Limited has informed the Exchange regarding the Outcome of the Annual General Meeting of the Company held on August 29, 2011. Published by HT Syndication with permission from Accord Fintech

CHANGE IN COMPANY SECRETARY

Accord Fintech (India)

29 July 2011

India, July 29 -- Alembic Limited has informed the Exchange that Mr. Sanjay Bhatt, has resigned from services of the Company and ceases to be Director, Company Secretary and Compliance officer of the Company w.e.f. July 28, 2011. Mr. Chirag K. Shukla, an associate member of Institute of Company Secretaries of India has been appointed as Company Secretary and Compliance officer of the Company w.e.f. July 29, 2011. Published by HT Syndication with permission from Accord Fintech

Accord Fintech (India)

28 July 2011

India, July 28 -- Alembic Limited has informed BSE that Mr. Sanjay Bhatt, has resigned from services of the Company and ceases to be Director, Company Secretary and Compliance officer of the Company w.e.f. July 28, 2011.Mr. Chirag K. Shukla, an associate member of Institute of Company Secretaries of India has been appointed as Company Secretary and Compliance officer of the Company w.e.f. July 29, 2011. Published by HT Syndication with permission from ACCORD FINTECH BSE

Indian Patent News

18 August 2011

New Delhi, Aug. 18 -- India based Alembic Limited filed patent application for process for the preparation of azithromycin monohydrate isopropanol clathrate. The inventors are Misstry Dhiren N, Thorat Mahadeo M, Soni Kamlesh S and Kansal Vinod Kumar.

Alembic Limited filed the patent application on June 28, 2004. The patent application number is 687/MUM/2004 A. The international classification numbers are A61K31/70 and C07H1/00.

According to the Controller General of Patents, Designs & Trade Marks, "The present invention relates to an improved, cost effective and easy process for the preparation of azithromycin monohydrate isopropanol clathrate. The process provides a one-step method of preparing azithromycin monohydrate isopropanol clathrate directly from 9-deoxo-9a-aza-9a-homoerythromycin A. The process comprises at least partial dissolution and/or suspension of 9-deoxo-9a-aza-9a homoerythromycin A in isopropanol to form a mixture, adding methylating solution to the said mixture, refluxing or heating said mixture to form a reaction mixture, adding alkaline solution to the reaction mixture to adjust pH from about 10 to about 11 and isolating pure azithromycin monohydrate isopropanol clathrate. The process helps in reducing the total time of preparation, total utility cost for the production and also helps to avoid handling loss."

About the Company

Alembic Limited (Public, BOM:506235) is engaged in manufacturing synthetic active pharmaceutical ingredients (APIs), consisting of independent manufacturing blocks for Macrolides, non-steroidal anti-inflammatory drugs (NSAIDs) and other drugs. The Company's veterinary products include antibiotics/anti-microbials injectables/orals, speciality injectables, endectocides, boli, feed supplements and poultry. The Company's therapeutic category includes anti-infectives, caphalosporins, anti-protozoal, musculo skeletal, erectile dtsfunction, anti-parkinsons, anti-depressants, anti-epileptics, CNS stimulant, anti anziety and cardiovascular. Its basket of formulation products contain 150 products in several forms belonging to diverse therapeutic segments, including anti-infective, cough and cold products to cardiovascular and oral anti-diabetics. The wholly owned subsidiary of the Company is Alembic Global Holding SA.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30.09.2010

(Rs. In Millions)

Particulars	Standalone
	Quarter Ended on 30.06.2011 (Three Months)
1 (a) Net Sales / Income from Operations	379.000
Domestic	45.600
Exports	424.600
Total	849.200
Less : Excise Duty	32.000
Net Sales / Income from Operations	392.600
(b) Other Operating Income	2.900
Total Income	395.500
2 Expenditure
(a) Decrease/(increase) in stock in trade and work in progress	(105.900)
(b) Consumption of Raw Materials and Packing Materials	315.100
(c) Purchase of traded goods	0.000
(d) Employees' Cost	53.200
(e) Research and Development Expense	0.000
(f) Excise Duty	10.300
(g) Other Expenditure	93.400
Total	366.100
3 Profit from Operations before Other Income, Interest, Depreciation 2503 1828 9494 and Exceptional Items	29.400
4 Other Income	7.200
5 Profit/(Loss) before Interest, Depreciation, and Exceptional Items	36.600
6 Depreciation	32.500
7 Interest (Net)	13.600
8 Profit/(Loss) after Interest but before and Exceptional Items	(9.500)
9 Profit / (Loss) before Exceptional Items	23.900
10 Exceptional Items	0.000
11 Net Profit / (Loss) from Ordinary Activities before Tax	(33.400)
12 Tax Expense
Less : Provision for Wealth Tax	0.000
Less : Provision for Current Tax	4.700
Less/(Add) : Provision for Deferred Tax Liability/(Assets)	0.000
Add : Provision of Income Tax of earlier years written back (Net)	0.000
13 Net Profit / (Loss) from Ordinary Activities after Tax	(28.700)
14 Paid up Equity Share Capital ( Face value of share Rs 2/- )	267.000
15 Reserves excluding Revaluation Reserve	0.000
16 Debenture Redemption Reserve	0.000
17 Earnings Per Share (EPS)	(0.21)
Basic and Diluted EPS (Not Annualised)	0.000
20 Interest Service Coverage Ratio
21 Public Shareholding
- Number of Shares	48763089
- Percentage of Shareholding	36.52
22 Promoters and Promoter Group Shareholding
a) Pledged / Encumbered
Number of Shares	0.000
Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	0.000
Percentage of Shares (as a % of the total share capital of the Company)	0.000
(b) Non - Encumbered
Number of Shares	84752825
Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	100.00
Percentage of Shares (as a % of the total share capital of the Company)	63.48

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. 47.79
UK Pound	1	Rs. 75.05
Euro	1	Rs. 65.35

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	---
DEMERIT POINTS
--BANK CHARGES	YES/NO	Yes
--LITIGATION	YES/NO	No
--OTHER ADVERSE INFORMATION	YES/NO	No
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	No
--EXPORT ACTIVITIES	YES/NO	Yes
--AFFILIATION	YES/NO	Yes
--LISTED	YES/NO	Yes
--OTHER MERIT FACTORS	YES/NO	Yes
TOTAL		69

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.