Lupin 2004-05

INVESTING FOR GROWTH
We believe in our potential

and foresee a promising future.
This belief prompts us to take bold and well
calculated investment decisions today to
fulfil the promise of tomorrow.
The year 2004-05 represents a landmark
year in which we took a quantum leap
in investments into R&D, global marketing
and production infrastructure, stoking our
growth ambitions for the future.
Our R&D vigour and the
prowess of our people drive us to bring
imaginative medicines to fruition
and enable us to expand our business
in all important markets across the globe. It
is our persistent belief in ourselves
that takes us a step closer in
fulfilling our vision of becoming an
Innovation led Transnational
Pharmaceutical Company.
Our belief in ourselves leads us to
accomplish great things
growth
for
investing
Corporate information
Financial & Business highlights
World class facilities
World class products
Chairmans message
Managing Directors review
Management discussion and analysis
Social initiatives
Five year financial summary
Reports and Financials
01
02
04
06
08
10
12
30
32
34

Forward-looking statement
Contents
In this Annual Report we have disclosed forward-looking information to enable investors to comprehend our prospects and take informed
investment decisions. This report and other statements - written and oral that we periodically make contain forward-looking statements that set
out anticipated results based on the management's plans and assumptions. We have tried wherever possible to identify such statements by using
words such as 'anticipate', 'estimate', 'expects', 'projects', 'intends', 'plans', 'believes' and words of similar substance in connection with any
discussion of future performance.
We cannot guarantee that these forward-looking statements will be realised, although we believe we have been prudent in assumptions. The
achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties
materialise, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or
projected. Readers should bear this in mind.
We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
ANNUAL REPORT 2004-05
DIRECTORS
COMPANY SECRETARY &
COMPLIANCE OFFICER
AUDITORS
AUDIT COMMITTEE
INVESTORS' GRIEVANCES COMMITTEE
REMUNERATION/COMPENSATION COMMITTEE
SOLICITORS
Dr. Desh Bandhu Gupta, Chairman
Dr. Kamal K. Sharma, Managing Director
Mrs. M. D. Gupta, Executive Director
Mr. D. K. Contractor
Mr. Marc Desaedeleer
Mrs. Vinita Gupta
Mr. P. K. Kaul
Dr. K. U. Mada
Mr. Sunil Nair
Dr. D. P. Sinha
Mr. Kiran N. Bade
Deloitte Haskins & Sells
Chartered Accountants

Dr. K. U. Mada, Chairman
Mr. D. K. Contractor
Dr. D. P. Sinha

Mr. D. K. Contractor, Chairman
Dr. K. U. Mada
Dr. D. P. Sinha

Mr. P. K. Kaul, Chairman
Mr. Sunil Nair (alternate - Mr. Marc Desaedeleer)
Dr. D. P. Sinha

Crawford Bayley & Co.
DSK Legal
Corporate information
BANKERS
MANAGEMENT COMMITTEE
REGISTERED OFFICE
CORPORATE OFFICE
www.lupinworld.com

ABN AMRO Bank N.V.
Bank of Baroda
Central Bank of India
Citibank N.A.
Punjab National Bank
Standard Chartered Bank
State Bank of India
The Hongkong and Shanghai Banking Corporation Ltd.
UTI Bank Ltd.
Dr. Desh Bandhu Gupta, Chairman
Dr. Kamal K. Sharma, Managing Director
Mr. Satish Khanna, Group President - API
Mr. Indrajit Banerjee, President - Finance & Planning
Mr. Sakti Chakraborty, President - India Region Formulations
Mr. Vinod Dhawan, President - Business Development
Mr. Divakar Kaza, President - Human Resources
Mr. Harish Narula, President - Corporate
Dr. Himadri Sen, President - Pharma Research & Regulatory Affairs
Mr. Nilesh Gupta, Executive Vice President - Advanced Markets
Mrs. Vinita Gupta, President & MD - Lupin Pharmaceuticals, Inc.
159, C.S.T. Road, Kalina,
Santacruz (East),
Mumbai - 400 098.
Tel: +91 22 5640 2323
Fax: +91 22 2652 8806
Laxmi Towers, B Wing,
Bandra Kurla Complex,
Bandra (East),
Mumbai - 400 051.
Tel: +91 22 5640 2222
Fax: +91 22 5640 2130
01
02 ANNUAL REPORT 2004-05
Financial & Business highlights
(Rs. in million)
% of Net Sales R & D
R&D EXPENDITURE
(Rs. in Million)
300
400
500
700
800
900
0
600
200
100
2
0
0
3
0
4
2
0
0
4
0
5
2
0
0
2
0
3
0
1
2
3
4
5
6
7
8
%
o
f
N
e
t
S
a
l
e
s
2
0
0
0
0
1
2
0
0
1
0
2
2
0
0
3
0
4
2
0
0
4
0
5
DIVIDEND HISTORY
(in percentage)
2
0
0
2
0
3
30
40
50
70
0
60
20
10
P
e
r
c
e
n
t
a
g
e
*
Years
Proposed Dividend
*
Years
2
0
0
0
0
1
2
0
0
1
0
2
2
0
0
3
0
4
2
0
0
4
0
5
EXPORT
(Rs in Million)
2
0
0
2
0
3
3000
4000
5000
7000
0
6000
2000
1000
R
s
.
i
n
m
n
THERAPEUTIC MIX 2004-05
44% Cephalosporins
21% Cardiovasculars
24% anti-TB
2% Neutraceuticals
9% Others
48% Exports
52% Domestic
SALES MIX 2004-05 (Net Sales)
(Geographic Segments)
Gross Sales - 12,123
R&D Expenditure - 836
Operating Profit - 1,458
EPS (Rs.) - 20.5
Net Profit - 844
Proposed Dividend - 65%
. Record regulatory filings: the Company filed 14 ANDAs, 15 DMFs,
2 e-DMFs, 4 COS, 294 dossiers and 2 INDs.
. 1 molecule in Phase II clinical trials. 2 molecules completed Phase I clinical
trials. 1 molecule undergoing Phase I clinical trials.
. Suprax , the Company's first branded finished dosage in the US, gained
acceptance.
. Alliance struck with Cornerstone BioPharma, Inc. as a promotion partner in
the US for Suprax .

. Finished Dosages - India Region business recorded a sales growth of 15%
while the industry grew by about 6%.
. Finished Dosages - India Region: 18 new products were launched, including
anti-Asthma products.
. Largest Lisinopril API capacity in the world established.
. Expanded production capabilities at Ankleshwar for meeting international
demand for Cephalosporins.
. Injectable facility at Mandideep received TGA (Australia) approval.
. Tarapur API manufacturing facility for Statins received USFDA approval.
. First ESOP implemented, covering 174 employees.
03
TO BECOME AN
INNOVATION LED TRANSNATIONAL
PHARMACEUTICAL COMPANY...
LUPIN RESEARCH PARK (Pune, India)
MAIN PRODUCTS:
Oral Cephalosporins,
Injectable Cephalosporins and
Prils.
INTERNATIONAL APPROVALS:
Injectable Cephalosporins,
API and Finished Dosages
Oral Cephalosporins,
API and Finished Dosages
Prils, API
(USFDA & UK MHRA)
(USFDA)
(USFDA)
MAIN PRODUCTS:
Rifampicin, Lovastatin
Rifampicin
Lovastatin
(USFDA)
(USFDA)
MAIN PRODUCTS:
Ethambutol,
7ACCA & 7ADCA
(Intermediates) and
other chiral intermediates
7ADCA
(USFDA)
MANDIDEEP
(Madhya Pradesh)
TARAPUR
(Maharashtra)
ANKLESHWAR
(Gujarat)
05
The Company has commenced
operations in the state-of-the-art
manufacturing facility at Goa,
that would cater to all
non-cephalosporin oral
formulation needs of the
Regulated Markets.
The factory was completed in a

record time of six months. This
plant is equipped to conform to
the requirements of USFDA and
other Regulated Markets.
The power house of
research -
Lupin Research Park (LRP)
is located at Pune spread
over a 19 acre picturesque
location.
The scientists here drive
innovation in Lupin be it
NCE, Finished Dosage
Research, including Novel
Drug Delivery Systems or
Process Research.
MAIN PRODUCTS:
(Finished Dosages)
Rifampicin,
Pyrazinamide,
Ethambutol,
Lisinopril
This plant is approved by
conforms to WHO standards.
MCC (South Africa),
VERNA
(Goa)
LUPIN RESEARCH PARK
(Pune)
AURANGABAD
(Maharashtra)
world class

facilities
facilities
products
world

class

products
07
SOME LEADING PRODUCTS OF LUPIN
Chairmans message
Dear Members,
Building for the Future
Innovation led Enterprise
This year, I announced our plan to achieve US $1 billion
in sales by 2009, driven by investments in our R&D and
the continued growth of our current portfolio. To
accomplish this plan, we are focused on a number of
strategic priorities that include supporting the continued
growth of our anti-TB and Cephalosporin businesses;
further strengthening our presence in life-style drugs;
penetrating Regulated Markets through more products,
partnerships and new brands; bringing new drugs to
market through innovative research and continually
developing our people, processes and culture so that we
are well positioned for growth. I am pleased to report that
we made excellent progress on every one of these
strategic priorities in 2004-05. As a result of the progress
we have made, we have started 2005-06 well on track for
achieving our long term objectives.
In 2004-05, the Company recorded total sales of
Rs.12,123 mn, up 4% over last year. Given the
capabilities that we have created and the potential of the
areas we operate in, we consider our future to be very
promising. With this bold confidence, we enhanced the
level of investment for the future. We invested in
expanding manufacturing capacities; in our intellectual
capital base; in making deeper inroads into various
global markets and in our R&D efforts by nearly
doubling the amount invested over the previous year.
From R&D point of view, I am pleased to inform you that
2004-05 was, by far, the most successful year in the
history of Lupin. The Company filed 14 ANDAs and 15
DMFs and now has four molecules in Clinical trials,
creating a healthy pipeline of exciting products and
technologies that are clearly positioning Lupin as a
world class innovation led enterprise. Our perseverance
led to raising our R&D expenditure to 7.2% of net sales in
2004-05, to create commercially viable intellectual
property for the Company. Given this strength, the
Company is looking forward to new opportunities
emanating from the 2005 patent regime change and
considers itself a strong contender for market and
Dr. Desh Bandhu Gupta
CHAIRMANS MESSAGE
09
product leadership across many therapies. I expect the
Company to continue with the investment programme it
has embarked on to keep building world scale
manufacturing capabilities and to expand our
Intellectual Property base.
Lupin is committed to advancing science to develop
better medicines that help people live healthier, longer
and more satisfying lives. To achieve our goals, we must
constantly develop our people, maximise productivity
through the implementation of systems and processes
and nurture our culture so that we remain an employer
of choice in our industry. We made solid progress in all
these fronts. Specifically, we strengthened our R&D team
at the Pune Research Park; deepened regulatory
understanding by adding scientists to the Intellectual
Property Management Group; introduced ESOPs for the
first time; initiated a Leadership Programme and
commenced a systematic recruitment programme to
induct young Engineers and MBAs from leading
colleges and institutions. Throughout the organisation,
we focused on building teams, confronting challenges
and implementing constructive changes. We defined
and confirmed our core values of high integrity,
entrepreneurial spirit, clear work ethics and collaborative
environment to provide clarity on what it means to be a
Developing our People, Processes
and Culture
part of the Lupin family. I have full confidence in my
management team in translating our vision of becoming
an innovation led transnational Company into reality.
The progress we have made in 2004-05 sets us on course
to start 2005-06 squarely focused on achieving our
mission. I would like to appreciate the efforts of more
than 4,200 employees who individually and collectively
focus daily on doing what is necessary to provide better
and more affordable medicines to patients, new medical
options for physicians and increased value to
shareholders. I would like to sincerely thank you, our
esteemed shareholders, for your continuing support.
Chairman
Appreciation
From the research point of
view, 2004-05 was, by far,
the most successful year
in the history of Lupin.
The Company filed
14 ANDAs and 15 DMFs
and now has 4 molecules
in Clinical trials, creating a
healthy pipeline of
exciting products.
Managing Directors review
Dear Members,
Growing through the Value Chain
2004-05 has been the year of investment for Lupin. In
line with our vision, to be an innovation led
transnational pharmaceutical Company, a marked
feature of our investment was the expenditure on the
R&D front, which was Rs.836 mn, up 82% from last year.
Most of this expense was incurred towards the costs of
filing 14 ANDAs, 15 DMFs, four COS, two e-DMFs and
conducting four Clinical trials.
The years operations generated a profit of Rs.844 mn as
against Rs.987 mn in the previous year. The year
witnessed a dramatic increase in competition in our
Penicillin-G based API business, where our margins
were reduced; we hope to achieve better returns in the
future as the market reaches equilibrium. We made a
major marketing commitment with our branded product,

Suprax , for the US market, which is likely to contribute
in 2005-06. Finally, the introduction of VAT in many
states created confusion in the marketplace which
affected the last quarter sales adversely for the entire
pharmaceutical industry, including Lupin.
All these factors have directly impacted the net profit of
the Company. Confident of our capabilities in building
innovation, we plan to continue to invest in R&D at
similar levels or higher levels in the foreseeable future.
We are particularly pleased with the performance of our
Finished Dosages - India Region which grew at 15%
when the industry grew by around 6% and with our API
and Intermediate businesses that have placed us as a
global leader in Lisinopril and as an emerging leader in
Statins. Our sustained market leadership in the anti-TB
and Cephalosporin businesses continue to fuel the
Company's diversification into the lifestyle segments.
We are using the lever of innovation to move up the
value chain, in terms of both products and markets,
while also integrating backwards into intermediates.
Based on the good work carried out in 2004-05, we
expect to capture value from branded products in the
Regulated Markets and in the next couple of years, we
expect a substantial contribution from the US and
Europe. Adding to this, we also placed focus on CIS,
Australia and Japan besides some other regions of the
world. In terms of the product value chain, the Company
Dr. Kamal K. Sharma
has demonstrated its ability to develop ANDAs for the US
market. Currently, the Company happens to be amongst
the few USFDA approved injectable Cephalosporin
producers in India, which gives it a unique ability of
building on this value chain. We have also moved up the
value chain on the delivery platform for many of our
products and last, but not the least, one of our NCE
molecules is in phase II clinical trials and three others
are in phase I, giving the Company the potential of
entering the highest value stratum in the longer term.
Given this, the Company expects to experience
substantial organic growth and become an integrated
pharmaceutical Company with a culture of embracing
multiple disciplines of science.
At Lupin, we are committed to becoming a transnational
Company. Our global strategy involves thinking in an
integrated way about all aspects of our business: our
suppliers, production sites, markets and competition. It
involves assessing every product from the perspective of
both domestic and international markets. It means
embedding international perspectives in product
formulations at the point of design and not as an
afterthought. It means meeting world standards even
before seeking world markets and being world class
even in local markets. It means deepening the
Company's understanding of local and international
cultural differences in order to become truly global. Our
global strategy also involves focusing on areas of
excellence against a backdrop of worldwide possibilities,
Becoming a Transnational Company
determining the synergies that exist across markets and
alliance partners as well as the differences that must be
taken into account in various locations. As our marketing
machinery in the US matures into a well oiled growth
engine in 2005-06, Lupin expects to be one step closer
towards becoming the transnational Company it wishes
to be.
I see a very bright future for the Company, its employees
and its shareholders. This confidence is based on the
kinds of high value products that we are in a position to
launch into the world markets. We expect our R&D efforts
to yield many more exciting opportunities and we see
continued handsome growth in the India Region
facilitated by improving affordability; better health
consciousness and a growing health insurance market.
There are only a few companies in India that have
achieved the efficiency and productivity of Lupin. The
high level of dedication and commitment of our
employees is indeed an asset that should help the
Company grow rapidly in future.
Dr. Kamal K. Sharma
Managing Director
Outlook
APIs APIs
r n Fo mulatio s rm la i n Fo u t o s
R g e ulated
r Ma kets
egu a e R l t d
rke s Ma t
a o
Br nded Pr ducts
a d et
Regul t Mark s e
a r nded Produ ts
B c
d Regulat Markets e
e c En i
Ne Ch mi al tit es
w
D
& ND S
Ne Chemical Ent ties
w
i
& NDDS
I t rmedia es
n e
t r e i es
Inte m d at
V
a
l
u
e
C
h
a
i
n
V
a
l
u
e
i
n
C
h
a
MANAGING DIRECTORS REVIEW
11
INDUSTRY STRUCTURE AND
DEVELOPMENTS
The Global Pharmaceutical Market
The global pharmaceutical market crossed a record
US $550 billion in sales (audited and unaudited) and
registered a 7% growth in 2004. Continuing their
dominance, the advanced markets (US, European Union
and Japan) constituted 88% of the market. Certain other
markets are however, growing at a faster pace, e.g. the
th
Chinese market, the 9 largest, exhibited a strong 28%
growth. The growth of generics resulted in more than
30% of volume consumption in the major markets of US,
Germany, Canada and the UK. Biotech products
accounted for 27% of the active R&D pipeline and 10%
of global sales in 2004. The top 10 therapy classes added
up to 33% of the total audited world market in 2004.
Cholesterol and triglyceride reducers continued to hold
the number-one position among the therapeutic classes
worldwide, with sales of US $30 billion, up 12 % (Source:
ORG - IMS ).
th
In volume terms, India ranks 4 globally. In value terms,
the market is around US $5 billion. The domestic industry
is re-aligning and consolidating itself to gain from the
new product patents regime. The top 10 companies have
obtained a larger share of the market, from 30% in 1999
to 35% in 2004.
The combination drug segments have dominated the
market and the highest contribution came from
therapeutic groups such as Cardiac, anti-Diabetic and
Vitamin.
Indian Pharmaceutical Market
Management discussion and analysis
1
9
9
7
1
9
9
8
1
9
9
9
2
0
0
0
2
0
0
1
2
0
0
2
2
0
0
3
2
0
0
4
100
200
300
400
500
600
GLOBAL PHARMACEUTICAL SALES
(US $ BILLION) 1997-2004
(Source: ORG - IMS )
0
Total World Market (US$)
2004 GLOBAL SALES
(Source: ORG - IMS )
47% North
America
4% Latin America
8% Asia, Africa & Australia
11% Japan
2% Rest of
Europe
28% Europe (EU)
INDIA MARKET SHARE
(Jan - Dec 2004)
47% Rest
18% Next 10
35% Top 10
Companies

Source: ORG-IMS Dec-2004 Moving Annual Total (MAT)
%
V
a
l
u
e
M
a
r
k
e
t
S
h
a
r
e
(
D
E
C
M
A
T
0
3
)
Cardiac
Combination 24
76 74 11 9
45 48 12 13
55 52 0 0
25
75
28
72
24
7
27
10
24 26 26
Combination
Combination
Plains
Plains
Plains
Anti-Diabetic
%
V
a
l
u
e
M
a
r
k
e
t
S
h
a
r
e
(
D
E
C
M
A
T
0
4
)
V
a
l
u
e
G
r
o
w
t
h
(
%
)
V
o
l
u
m
e
G
r
o
w
t
h
(
%
)
Vitamin / Minerals / Neutraceuticals
LUPINS ADVANTAGE
Lupin is well positioned to face the challenges of the new
patent regime and capitalise on the global opportunity.
Its process research capabilities, global reach, leading
brands, the breadth of its portfolio, marketing and
distribution network and deep understanding of the
Regulated Markets are the basic pillars on which its long
term strategy is based. In the global markets, lifestyle
drugs are today the highest growth contributors. Lupin
has established its credentials as a strong player in this
fast growing segment..
Operating in more than 50 countries and having the
experience of handling branded products even in the
Regulated Markets, Lupin has the marketing and
distribution strengths to reach new geographies and
compete in the global marketplace.
The R&D thrust of the Company has resulted in the filing
of 42 patent applications during the year, taking the total
to 152. Its robust product pipeline will enable it to build a
significant portfolio for the regulated and semi regulated
markets in the near future.
FINISHED DOSAGES - SEMI REGULATED
MARKETS INCLUDING INDIA
India Region
This business posted a strong growth during the year. The
business outperformed the market growth rate by nearly
two-and-half times (15% growth v/s 6% market
expansion). It also achieved an outstanding prescription
growth rate of 6% as against the market rate of 1%. This
performance is attributable to a multi-pronged strategy
adopted, encompassing:
.
Aggressive launching of high-value products in
diversified therapeutic segments (a recent
ORG-IMS report has elevated the Company to the
high-growth and high contribution market
segment).
.
Launching products with innovative combinations,
aimed at higher product efficacy.
.
Strengthening the field force and attaining higher
productivity, thereby enhancing market penetration
and expanding geographic reach.
.
Strategically segregating the therapeutic segments
into focused divisions.
.
Focusing on achieving higher prescription rate,
thereby strengthening brand position.
.
Consolidating its position in the fast expanding
lifestyle segments, viz,. Cardiovascular, anti-
Diabetes and anti-Asthma.
.
Maintaining undisputed leadership in anti-TB
segment.
.
Fortifying and modernising the distribution network.
MANAGEMENT DISCUSSION AND ANALYSIS
13
SALES MIX
(Business Segment)
Finished Dosages API
%
C
o
n
t
r
i
b
u
t
i
o
n
t
o
S
a
l
e
s
60
50
40
30
20
10
0
2003-2004 2004-2005
Through AAMLA
the Company aims
to be present in all
important markets
around the world.
In addition to
enhancing our Generics
portfolio, the experience
of launching a branded
product in the US has
raised our capabilities to
participate in the highest
value segment of the
pharmaceutical market.
VINOD DHAWAN
President - Business
Development
Aggressive product
launches in fast growing
therapeutic areas,
adoption of innovative
and dynamic marketing
strategies saw Finished
Dosages India Region
outperform the market.
SATISH KHANNA
Group President - API
Our scale, skill and
reach in all our
products have helped
us transform our
earlier international
and domestic
competitors into
valuable and satisfied
customers.
SAKTI CHAKRABORTY
President - India Region
Formulations
VINITA GUPTA
President & MD -
Lupin Pharmaceuticals, Inc.
Pinnacle Division
This division, enjoying high visibility with specialty
doctors, concentrates and operates in two therapeutic
segments: Cardiovascular and anti-Diabetes. The
division recorded substantial growth in prescriptions,
which indicates high market acceptance of its
efficacious products.
In Cardiovascular segment, Tonact (atorvastatin) entered
the elite group of top 300-pharma brands and became
one of the most recalled brands by cardiologists.
Ramistar (ramipril) successfully attained the distinction
of being the second most prescribed brand in the highly
competitive Ramipril segment. In Clopidogrel segment,
Clopitab substantially elevated its market position.
In the anti-Diabetes segment, within a year of its launch,
Gluconorm (metformin) range of products ranked
amongst the top five brands.
Its product launches from cardiac and diabetes basket
include:
Endeavour Division
Lupin Division
This division reaches out to people across all income
classes, for diverse treatments ranging from common
cold to severe life threatening infections. The successful
launches made by the division were as follows:
The previous year launch, Novapime, an injectable
th
4 generation Cephalosporin has emerged as one of the
top brands for the Company with a turnover of more than
Rs.100 million.
The division offers solutions in the respiratory segment
with a range covering anti-TB, anti-Asthma (Inhalation
segment), anti-Infectives, anti-Allergics and supportive
therapy products.
This division spearheads the Company's dominance in
the anti-TB segment with a market share of 45%. Lupin
further gained market share in this segment over the last
year, thus consolidating its leadership position. While
enjoying market leadership in this segment, the
Company endeavours to make its anti-TB drugs as
affordable as possible for the poorer sections of our
society.
The biggest brand of the Company, R-Cinex, continued to
gain market share. AKT-4 now commands a 75% market
share in the 4 drug combipack segment.
During the year, the division has entered the
anti-Asthma inhalation product range, which has
achieved high market acceptance within a short time of
its launch and garnered high prescription share. The
product offering is especially designed to enhance
convenience to patients.
This division is now consolidating its market share in
these segments through expanded presence and
additional releases of innovative products.
15
CONTRIBUTION TO SALES BY THERAPEUTIC
SEGMENTS (Finished Dosages - India)
33% anti-TB
20% Others
2% anti-Asthma
3% Gastro-Intestinal
5% anti-Diabetes
11% Cardiovascular
3% NSAIDs
23% Cephalosporin
Telista and Telista-H, the latest ARB, to treat diabetic

hypertensives.
Retorlix, the latest diuretic to hit the Indian market.
Matilda Plus & Matilda OD, for the management of
diabetic neuropathies.
Tonact-EZ, a unique combination of Atorvastatin and
Ezetimibe.
Nebistar, a third generation beta-blocker, for
hypertension management.
Misobit, the latest anti-diabetic.
Cilodoc, Cilostazol for the treatment of intermittent
claudication and PAD.
Novastat, the latest Statin in the world market.
Path-G, an innovative anti-diabetic combination.
Brand
Nizonide
Rablet IV
Resner
Cefantral-S
Signoflam Aceclofenac combination OS
Cephalosporin Combination Injectable
Vitamin B12 Metabolites
Anti- peptic ulcerant Rabeprazole
Other anti-parasitic agents
Therapeutic Segment
Herbal Division
In 2004, the Company launched a dedicated herbal
division. By using time-honoured principles of Ayurveda
with advanced techniques of modern science, the
Company promotes a range of efficacious herbal
products in therapeutic areas including Diabetes,
common Pediatric problems, GI disorders, Pain
Management and Gynaecological problems. All
products introduced by the Company have been
scientifically evaluated through clinical trials conducted
at reputed centres.
In conclusion, the Finished Dosages-India business is
set to further consolidate its position in the existing
business segments and aim at wider market penetration
by offering products that are not only superior, but
affordable at the same time.
Lupin has identified the CIS region as a major growth
area. Over the years, it has established itself in this region
as a quality drug manufacturer and a leader in the anti-
TB segment. Its reach in CIS countries encompasses
Russia, Belarus, Ukraine, Kazakstan, Uzbekistan and
Azerbaijan.
The Company consolidated its leadership in anti-TB
products and introduced branded products including
some herbals.
The Company is set to expand its distribution network,
field force, enhance promotion of branded products and
build a robust pipeline of new branded products, which
would generate sustainable volumes in the years ahead.
CIS Countries
Asia, Africa, Middle East & Latin America
(AAMLA)
In line with the vision of becoming an innovation led
transnational Company, Lupin tactically constituted a
separate division christened AAMLA, that would pilot
the Company's foray into new geographical horizons.
AAMLA is focused to penetrate and establish Lupin in
competitive world markets such as Japan, Australia,
Latin America and others.
The success of a product launch in any country has a
direct correlation to the level of understanding of the
market characteristics and ability to comply with
multifarious regulatory requirements. Being a focused
division, AAMLA is well-equipped to understand and
address the diverse, complex and unique characteristics
of each market.
Lupin capitalises on its strength in R&D, product
development and its knowledge of regulatory
requirements of various countries, which could be
broadly classified as Highly Regulated Markets (such
as Aust r al i a, J apan, Mexi co, Br azi l ) and
Semi Regulated Markets (such as South East Asia,
Africa, Middle East and most countries in Latin America).
The Company aims at acquiring critical mass by
penetrating these markets, launching high technology,
efficacious products covering a broad spectrum of
therapeutic segments from anti-TB, anti-Infective, pain
management to life style segment covering
cardiovascular and diabetes. The business model is
oriented and tailored to meet local needs, that could
TEAM CIS
US OFFICE TEAM
US SALES TEAM
range from establishing the Company's own marketing
arm, leveraging the marketing strength of a local
business partner to co-owning of brands. The Company
is set to enter the markets of Australia and Japan
through the generic and branded generic route. The
Company aims to leverage its product pipeline
developed for USA and Europe and at the same time
develop products identified specifically for these
markets.
The Company would lever on the foundation established
by this business unit and attain wider global penetration.
It is set to build its market share thereby establishing a
high growth trajectory that would help converting Lupin
into a leading transnational Company.
As part of its long term strategy to participate in the
highest value added arena of selling branded products
in Regulated Markets, the Company chose the paediatric
segment for building its specialty business in the US
market. Suprax , an anti-Infective oral suspension, was

launched in the US in April 2004. Over the period, the
Company has witnessed a steady growth rate of
prescriptions being generated in the paediatric segment.
The Company further consolidated its marketing
position by entering into a strategic marketing alliance
with Cornerstone BioPharma Inc., a specialty
pharmaceutical company. This alliance enables the
Company to reach out to general practitioners and
consulting physicians.
FINISHED DOSAGES - REGULATED
MARKETS
The exper i ence of
launching a branded
product in the US has
raised the Company's
capabilities to participate
at the highest value
added spectrum of the
business. The Company
has established a strong
marketing channel base
using dedicated medical
representatives, covering the top 10,000 pediatricians in
the high-value prescription bracket and runs strong one-
to-one indoctrination campaigns covering over 40,000
pediatricians in the US. Having a strong infrastructure in
the US market for sales and distribution, the Company
plans to leverage its presence further by introducing
complementary branded products developed organically
or through third parties.
Introduction of branded
products in Regulated
Markets will allow the
Company to evolve
s t eady hi gh- v al ue
growth in revenues,
t her eby gi vi ng t he
Company a more secure
and predictable future.
17
EU OFFICE TEAM
AXETIL RANGE
SUPRAX RANGE
HARISH NARULA
President - Corporate
My team and I are
determined to
compete in the CIS
markets by focusing
on building brands,
customer value and
profits.
DIVAKAR KAZA
President -
Human Resources
We are building a
global mindset to
complement our
transnational strategy.
INDRAJIT BANERJEE
President -
Finance & Planning
Our endeavour is to
ensure that the
Company is
financially strong to
meet its strategic
growth objectives.
Through IPMG we are
ensuring that a highly
scientific and market-
conversant team helps the
Company identify new
products and opportunities.
In addition, efficient project
management and timely
product delivery enables
us to meet our aspirations
in regulated markets.
NILESH GUPTA
Executive Vice President -
Advanced Markets
API & FINISHED DOSAGES MANUFACTURING FACILITY AT MANDIDEEP
The Company continues to pursue the generic
formulation business through the introduction of new
products. In this effort, the Company filed 14 ANDAs
which are now pending approval at the USFDA. A
balanced blend of products between Para III and Para IV
and between cost-competitive and high technology
ensures that the Company will have a robust product
offering to market year after year.
API constitutes a key business area of the Company,
contributing about half its revenue. The Company has
pro-actively shifted its focus to keep pace with changing
market dynamics. In the eighties, the Company
concentrated on anti-TB segment. In nineties, it also
focused on Cephalosporins (anti-Infectives). Lifestyle
drugs are the current additional business drivers.
Currently, Lupin is amongst the most efficiently operated
API companies in India. With captive consumption
limited to just around 15%, the Company has converted
its domain expertise in making the API business into a
stand-alone, thriving and sustainable value driver for the
Company.
Over the years, the API division has strongly established
its presence in various geographies with considerable
success. The Company has established a significant
position in Asia, especially in the key markets of China
and India. The Company's forays have been backed by
market expertise, excellent infrastructure, world class
manufacturing facilities, economies of scale and
strength in intermediates.
ACTIVE PHARMACEUTICAL INGREDIENTS
(API) AND INTERMEDIATES
Semi Regulated Markets
The Company continues to consolidate its pre-eminence
in APIs by converting many of its global competitors into
customers for multiple products. One of the key reasons
for this success is the ability to meet the highest
expectations of its demanding customers and winning
their confidence in terms of quality and delivery.
The Company has adopted a strategy to focus on new
products, such as Prils and Statins, covering life-style
segments apart from Cephalosporins. The Company is
building a wider product basket in Prils, leveraging its
global leadership position in Lisinopril. During the year,
although Lisinopril prices faced downward pressure and
increased competition, the Company was able to
maintain its sales by leveraging its superior cost position,
expanding volumes and adding new customers.
The Company has also entered the Statins segment
through Lovastatin, with a view to encash upon the
opportunity set to emerge in the US. Despite competition,
the Company is steadily building on its fermentation and
manufacturing strengths and is today a large producer
backed by long term supply agreements with several
customers.
A visible and burgeoning business in Intermediates is
evolving off the API business. Lupin today commands
world leadership in Cephalosporin intermediates. The
Company's proven competence in intermediates opens
up newer vistas of growth.
The top 6 products in the API basket viz., Cephalexin and
Cefaclor (anti-Infectives), 7ADCA and 7ACCA
(Cephalosporin intermediates), Ethambutol and
Regulated Markets
Intermediates
API Business Profile
19
FACILITY DEVELOPED IN ANKLESHWAR UNDER THE KAYAPALAT PROGRAMME
Rifampicin (anti-TB) cover nearly 80% of API sales to the
Semi Regulated Markets. Lisinopril (Cardiovascular)
would form a very important part of API sales to
Regulated Markets.
Lupin's basket of products can be broadly classified into
three segments:
The Company made strategic expansion and
modernisation of production capabilities this year. The
Ankleshwar plant manufacturing Ethambutol,
Pyrazinamide and other optically active intermediates
underwent 'Kayapalat' (i.e., a complete transformation),
for improving every function, such as procurement,
production, quality control, regulatory compliances,
associated with the plant. 'Kayapalat' is designed to
percolate to grass root levels and bring about total
productivity management. The project involved a
world-class facility to expand the manufacturing
capacity of an existing intermediate, for meeting the
growing international demand for Cephalosporins. The
expansion was completed successfully without
interrupting commercial supplies. The Company has
also ramped up its Statins capacity in order to participate
in the opportunity that is set to emerge in the Regulated
Markets over the next few years and has set up a multi-
purpose plant for taking exhibit batches at Tarapur.
The sheer scale, global marketing, financial and
technology resources required for this business is
sizeable, which creates barriers for potential competition.
The API business is well positioned today to exploit
opportunities in the global marketplace. Lupin is active
at each level of value addition, thereby deriving the
diversity and integrity to hold its fort in the global
markets.
BREAK-UP OF API SALES
54% Cephalosporins
27%
Cardiovasculars
19% anti-TB
Anti-Tuberculosis
This is a category wherein the Company has
enjoyed leadership historically. These products
have also contributed immensely to Lupin's
formulation, its superiority and brand name.
Cephalosporins
With considerable strengths in backward
integration, Lupin has achieved leadership
position in this segment of products as well. Its
effort to become world leader continues for the
new generation Cephalosporins also.
Lifestyle drugs
In the recent past, the division has structured its
gr owt h ar ound newer segment s l i ke
Cardiovasculars and Statins. In less than five
years, it has achieved global leadership in
Lisinopril and is well on its way to achieve similar
position in Statins. This forms a critical constituent
of the future growth aspirations of this business.
Segments
RESEARCH AND DEVELOPMENT (R&D)
From the Research and Development perspective, it has
been a significant year. With 14 ANDAs, 15 DMFs,
2 EDMFs, 4 COS, 294 dossiers and 2 INDS filed, 4 Clinical
trials underway and 42 patent applications filed during
the year, the Company has demonstrated its capabilities
in the R&D area. The Company increased its R&D
spending by 82% to Rs.836 mn. It represents a landmark
year for the Company, underlining the transition towards
accomplishing its vision of becoming an innovation-led
transnational Company. In doing so, the Company's
state-of-the-art integrated Research Park at Pune has
moulded itself into a fully charged versatile engine,
propelling the Company forward to fulfill its high-value
based growth ambitions.
The broad goals of the Company are to create
cost-effective, high quality and value added products for
better health-care. In achieving these goals, the
Company's R&D activity is directed in the following ways:
.
As the country switches on to a product patent
regime, radical changes are expected to affect the
pharmaceutical sector. A deep-rooted shift in
business strategy has taken place within the
Company by placing a strong emphasis on R&D to
create proprietary intellectual property. The budget
for this activity was stepped up substantially during
the year to ensure that the Company has a
complete portfolio of products to take on the new
patent regime.
.
While making substantial investments in R&D, the
Company needs to ensure that it places its bets on
the right opportunities and possesses the ability to
Gearing up to Succeed in a Product Patent
regime
Making Prudent Investments in R&D
penetrate Regulated Markets with the timely
introduction of products. The Intellectual Property
Management Group (IPMG) scans opportunities
across the world from a market, medical, scientific
and regulatory perspective and has consistently
identified new products, tailored to fit each market
and suited to each therapy and delivery style.
.
For any pharmaceutical Company, success lies in
the ability to penetrate Regulated Markets with the
timely introduction of the right products. The primary
role of IPMG is to facilitate the identification of
opportunities for the Regulated Markets and to
manage the development process for seizing these
opportunities. Operating from Lupin Research Park,
IPMG consists of people with cross-functional
competencies and responsibilities.
Intellectual Property Management Group
(IPMG)
14
15
A
N
D
A
s
D
M
F
s
2
e
-
D
M
F
s
2
I
N
D
s
4
C
O
S
0
2
4
6
8
10
12
14
16
NO. OF FILINGS
21
LUPIN RESEARCH PARK (PUNE)
Our journey is truly aligned
to the mission statement.
Developing an exclusive
basket of Generics, Brands,
Herbals and Innovative Drug
Delivery Systems to reach our
chosen transnational
market.
Development of
innovative, cost-effective
and high technology
products outside the
purview of subsisting
patents in the country of
interest holds the key to
success.
In the long-term, the new
chemical entities will
introduce the Company into
the highest value segment of
the business, with the ability
to command its price for
unique products.
Dr. B. N. ROY
Technical Advisor
Dr. SUDERSHAN ARORA
President - NCE Research
Dr. HIMADRI SEN
President -
Pharma Research
& Regulatory Affairs
Working closely with all the departments across the
Company, IPMG is instrumental in providing the
Company substantial growth potential by
facilitating the creation of a robust product pipeline
that is commercially viable.
.
Since the Company has decided to focus on highest
value products and markets, the research
conducted by the Company is aimed primarily at
Regulated Markets. The Company aims to develop
novel , non-i nfri ngi ng, cost-effecti ve and
eco-friendly technologies for its products. With a
strong base embracing synthetic organic chemistry,
chiral chemistry, biology and pharmaceutics,
research is designed to deliver products
conforming to pharmacopoeial and extra-
pharmacopoeial requirements, which would not
only be outside the purview of subsisting patents in
the country of interest, but would result in
development of Intellectual Property for the
Company.
.
The Company focuses its research in the following
areas:
.
Generics (APIs & Finished Dosages)
.
New Chemical Entities (NCEs)
.
Novel Drug Delivery Systems (NDDSs)
.
Herbal Drugs
To pursue the above, expert knowledge in many
disciplines of science is required and a key part of
the Company's strategy is to integrate all platforms
of research. This gives it the ability to hedge against
risks and to derive value from innovative synergies
of technologies and science. The Company
strategically pursues the development of exclusive
products involving complex technology to hedge
competition. Low cost structure, high productivity
Leaning towards Regulated Markets
Being a Hybrid Research Organisation
for innovative research and capability to develop
non-infringing products involving high-end
technology provides the Company a distinct
competitive edge and places it in good stead to
consolidate its position in the world markets.
.
The Company's forte lies in the development of
technologies in-house. Nevertheless, the Company
continues to actively pursue collaborative research
programmes with some of the premier institutions
in India, such as Indian Institute of Science,
Bangalore, National Chemical Laboratory, Pune,
Indian Institute of Chemical Technology, Hyderabad,
Central Drug Research Institute, Lucknow, Regional
Research Laboratory, Jammu, etc. Such endeavours
help the Company reap the benefits of collaboration
and augment its intellectual reservoir.
The ability to develop novel, non-infringing, cost-effective
and eco-friendly processes coupled with a strong
Finished Dosage development expertise, translates into a
strong capability for the Company to build a Generics
power-house. During the year, the Company filed 14
ANDAs, 15 DMFs, two e-DMFs and four COS and intends
to intensify these efforts in future years through filings in
US, Europe and other Regulated Markets like Australia
and Japan.
Right from inception of product ideas at IPMG to
commercialisation, groups like the Research Interface
and the DMF/ANDA Group (DA) drive product
development and project management. Close review and
timely intervention ensure that timelines are met. The
product portfolio itself is closely reviewed and
supplemented every quarter.
R&D Alliances
Generics (API & Finished Dosages)
23
STATE-OF-THE-ART FACILITY AT GOA CONFORMING TO USFDA
Generics Research, both API and Finished Dosages is
driven by a strong group of capable people working
closely in a team. Coupled with strong Scale-up,
Production, Quality and Regulatory expertise, the
Company is well-poised to file an increasing number of
ANDAs and DMFs for the US and equivalent forms in
Europe and other Regulated Markets.
Through the development of new molecules, the
Company intends to build a long-term, high value
business of unique products for which it can command
a premium. As part of its NCE initiatives, the Company
has made significant advances in its anti-Psoriasis and
anti-Migraine programmes. The stages of its four NCE
molecules are as follows:
NCE Research
The Company has discovered a new anti-Psoriasis drug
isolated from plant source, which is a pure compound
showing anti-Psoriatic activity. It is orally bioavailable
and proposed for the treatment of chronic stable plaque
type psoriasis. It has presently completed Phase I clinical
trials.
The Company has also developed a herbal formulation,
for treatment of moderate to severe psoriasis which has
completed Phase I clinical trials also.
The Company also progressed towards the development
of a new drug which has shown excellent anti-TB activity
and provides complete eradication of TB with two
months treatment. It also prevents the re-emergence of
TB infection upto four months after the completion of
treatment. This molecule is safe and non-toxic and is in
Phase I clinical trials.
The Company has developed a safe and non-toxic
herbal compound, in the form of nasal drops, for the
prophylactic treatment of migraine, which is presently in
Phase II clinical trials.
The Company is set to leverage its capabilities in NDDS
by developing value-added products and capitalising its
position through the licensing route. This will also help
create a portfolio of products for the Companys branded
initiative in the US. The Company has already developed
three oral controlled-release platforms and has plans to
aggressively build on this capability. The Company in its
strategic intent, is also planning to create newer
initiatives and thrust in other areas of drug delivery
systems through the creation of an innovation cell in
drug delivery systems.
The Company's herbal products are a fusion of heritage
and science, using time-honoured principles of
Ayurveda, married to advance techniques of modern
science, to arrive at efficacious products. The Company
offers a basket of herbal products covering segments
like anti-Ulcerant, memory enhancer, anti-Oxidant,
cough formulations, bowel regulator, topical analgesic
anti-Inflammatory, etc. State-of-the-art techniques are
used to ensure standardised quality control. The
Company launches these products in India and in
Regulated Markets of the West, which offers huge
opportunities, both in the ethical and OTC segments.
NDDS Research
Herbal Drug Research
TEAMS SUCH AS THE RESEARCH INTERFACE
DRIVE PRODUCT DEVELOPMENT AT LRP
NCE Pipeline
Anti-migraine
LL 2011
LL 4218
LL 4858
LL 3348
NCE Preclinical
PHASE
1 2 3 Market
Psoriasis
Psoriasis
(Herbal)
Anti-TB
.
Migraine: A neurovascular disorder characterised by unilateral
.
pulsating headache, nausea/vomiting prevalent in 10 to 20% of the
.
population estimated market size - more than US $2bn.
Psoriasis: A chronic inflammatory skin disease prevalent in 1 to 2%
.
of population estimated market size - US $2 to 3bn.
TB: Worldwide, a leading cause of death from any single infectious
.
agent with almost 2 million deaths per year in India, one person dies
of TB every minute.
HUMAN RESOURCES
Human Resources (HR) with the right skill and mind-set
brings a competitive advantage in any knowledge-
based Industry. The HR Agenda is to align people's
performances and aspirations to the goals of the
business, build a world-class competitive working
environment that nurtures, recognises and rewards
talent. The accent is on grooming outstanding managers
of tomorrow, developing the requisite management
depth and wisdom, vital for an organisation on the fast
track. At Lupin, it is a tradition to nurture organic growth,
which has seen a majority of the top management
executives having been groomed and grown with the
Company. The collegial, challenging and rewarding
work environment is seen as being fair, consistent and
humane. This is one of the key drivers that retains talent
and even motivates the homecoming of senior
executives who had departed earlier. As on March 31,
2005, the Company had 4,259 employees.
In the financial year 2004-05, the Company launched
new initiatives to foster its intellectual capital base. It
embarked on an aggressive intake of fresh talent under
the 'Young Leaders Programme' to address the rapid and
growing need for R&D talent. The saying 'training is the
key that opens the door of proficiency' is validated by the
innumerable training programmes conducted across
the organisation covering a plethora of subjects such as
computer skills, communications, leadership, time
management, TQM, team building, creating and
managing brands, problem solving skills, etc. The
Company also reaches out to the family members of the
employees by arranging programmes like family events,
sport competitions and yoga-shibirs, as we feel that the
employees' families are also a part of the larger Lupin
family.
The Company has also launched a programme through
which employees can access all career opportunities
within the Company and have the first shot at all the new
positions. Our belief is that in order to help employees
actualise their career aspirations, we rather lose an
employee to another job within the Company, than to
another organisation. The 'Career Opportunity
Programme' has just been launched and has evoked a
spirited response from the employees.
In order to give employees a sense of ownership and to
reward outstanding performance, the Company
implemented its maiden Employee Stock Option Plan,
branded 'Partners in Progress'. Under the plan, 174
employees in the grade of Managers and above were
offered 377,150 options. The coverage has been broad
based and covers 25% of the managerial population.
The Company has maintained very cordial industrial
relations. The management, employees and workmen
work as a cohesive unit pooling their collective efforts
and striving for excellence, both at individual and team
levels, to translate to reality, the vision of becoming an
innovation led transnational pharmaceutical company.
In the Financial Year 2004-05, the net sales of the
Company increased by 4% from Rs.11,192.8 mn to
Rs.11,611.3 mn. The net profit after extraordinary items
was Rs.843.6 mn as against Rs.987.1 mn in the previous
year. The Company made a strategic decision to
significantly increase investments in intellectual capital,
marketing and R&D. The Company witnessed a dip in
margin in its Pen G based API products and faced market
uncertainty in the last quarter owing to the introduction
of VAT. All these factors contributed to the reduction of the
FINANCIAL OVERVIEW
25
LIBRARY - LUPIN RESEARCH PARK
SUNIL MAKHARIA
Finance
NARESH GUPTA
API Marketing
SATISH VELANKAR
Director -
Business Development
Dr. VINAY NAYAK
Quality Operations &
Regulatory Compliance
Strategic decisions
for new business
development
provide the right
impetus for growth.
We take on each
product with our
minds set on
maintaining global
leadership in its
respective markets.
The international
accreditations received
by the Company for its
products and facilities
bear testimony to its
quality standards,
benchmarked to the
best in the world.
The Company
focused on efficient
financial
management and
the reduction of its
interest burden.
Earning before Interest, Tax, Depreciation and
Amortization (EBITDA) from Rs.2,801.7 mn in the
previous year to Rs.1,457.9 mn.

The Company registered strong exports sales worth
Rs.5,619.1 mn, thereby constituting 48% of net sales. The
Company expanded its product pipe-line, R&D
capabilities by investing substantially higher amount in
R&D (Rs.760.1 mn in revenue, Rs.76.0 mn in capex). The
R&D expenditure increased to 7.2% of net sales in the
financial year 2004-05 up from 4.11% in the previous
financial year. The profit after tax recorded was Rs.843.6
mn, with cash profits amounting to Rs.1,168.4 mn. The
earning per share was Rs.20.50 and the Board has
recommended a dividend of 65%, matching that of the
previous financial year. The tax burden of the Company
came down to Rs.9.1mn from Rs.500.2 mn. The Company
also reduced its cost of borrowing through judicious
debt management from Rs.515.1 mn to Rs.273.1 mn in
the current financial year. The total debt at the year-end
was Rs.4,406.4 mn bringing the debt-equity ratio to
0.88:1. The Company has increased its reserves and
surplus by Rs.524.7 mn to Rs.4,603.6 mn. The total capital
expenditure of the Company was Rs.1,285.2 mn.
To ensure accurate accounting and protection of assets,
the Company has implemented proper and adequate
internal control systems based on clearly defined roles
and responsibilities across all levels. Apart from internal
controls, the Company also audits the efficiency of
operations and the security of its information technology
and data. The Company regularly monitors the
compliance of laid down standards, both at the
divisional and at the corporate level, that form the
foundation of its internal control process. The internal
INTERNAL CONTROL SYSTEMS
control mechanism consists of a well-defined and
structured operational system that has inbuilt validation
controls with clearly defined authority levels.
Through the introduction of SAP, a reliable, high-end,
comprehensive, disciplined and integrated business
solution, the Company has gained from its in-built
checks and balances, including its efficient and accurate
controls. Supplemented by Lotus Notes, an effective IT
web is used to ensure high data reliability and detailed
transaction audit trails.
The Global Pharmaceutical industry conditions continue
to be extremely encouraging. The most significant driver
for the next few years would be the new patent
expirations. Around US $39 billion worth of products
would lose patent protection over the next few years,
giving strong research based pharma players like Lupin,
a lot of opportunities. By virtue of gaining experience in
handling branded products; having presence in more
than 50 countries with a robust product pipeline and
substantial increase in its product filings in Regulated
and other strategic markets, the Company is in a position
to seize these opportunities. Lupin's R&D Park continues
to focus on new products and delivery systems across a
wide range of therapies. The Company has also entered
into research alliances with scientific institutes across the
country. Technological excellence and innovation will
continue to be the driving force to consolidate Lupin's
favourable position in India and across the globe.
The threat of patent litigation, regulatory issues and
product liability are a part of the global pharmaceutical
business, particularly in the Regulated Markets. The
Intellectual Property Management Group keeps an avid
eye on the regulatory processes and continuously
evaluates risks and threats, taking suitable steps to
safeguard the interest of the Company.
OPPORTUNITIES AND THREATS
27
HI-TECH FACILITY - AURANGABAD
Market unpredictability, pricing pressures on generic
segment, unstable political scenario in certain
geographies, fluctuating currencies and frequently
changing healthcare and regulatory norms continue to
be threats. Lupin believes that it has the vision,
knowledge, expertise, strategies, infrastructure and
managerial strength to defuse these threats and looks at
the future with reasonable confidence.
The Finished Dosages India Region business is poised to
further accelerate its performance through a strategic
shift in focus to high margin lifestyle segments.
The Company is set to capitalise on the US experience in
marketing branded products. The Company has made
very sound plans to capitalise on expanding generic
markets both in US and European Union. Having done
14 ANDA filings during the year, Lupin is now poised for
much bigger thrust in this segment. The Company also
expects to reap good benefits from AAMLA and CIS
territories. This will take the Company closer to realising
its vision of becoming an innovation led transnational
pharma company.
The Company aims to achieve global leadership in all
API segments in which it operates. The fact that Lupin is
active at each level of value addition gives it the diversity
and integrity to hold its fort in the global markets.
Lupin's core strength in research empowers it to take on
future challenges with optimism and confidence.
The Company's de-risking strategy covers its entire
global business, inclusive of products, people,
technology and markets. It has a focused vision of
consolidating and widening its presence in the
Regulated Markets through generic products, NCEs and
NDDS, aiming to garner a significant part of its future
growth. It is believed that the Company's presence and
experience in the Regulated Markets and its strategic
alliances with key business players have provided it the
capability, acumen and management bandwidth for
succeeding in the highly competitive global arena.
OUTLOOK
RISKS AND CONCERNS
Strategy and Business Portfolio Risk
Competition is increasing in every area of business
which could erode both the market share and margins.
Lupin is continuously equipping itself to be the least cost
producer of APIs and this strength would also improve
our abilities in large business of Generics.
Its operational de-risking comprises factors, such as
establishment of world-class integrated cost effective
manufacturing facilities; strengthening R&D; quality
discipline; a growing presence in expanding therapeutic
areas that are expected to remain relevant in the
foreseeable future; global alliances and leverage of its
strong reputation in existing therapeutic areas to drive
growth in new segments. Its managerial de-risking
comprises strong human resource development
initiatives, creating a sense of pride and identification
with Company goals.
Over the past few years, the Company has steadily
diluted its dependence on domestic markets by
graduating its export reach to various geographies,
spearheaded and monitored by dedicated teams. For the
Indian markets, the Company is scaling up its strength
and contribution from the fast growing life-style products
by reducing its reliance on the legacy products. The
Company is also addressing therapeutic segments that
are characterised by long term prescriptions, such as
cardiovascular, asthma and diabetes.
The Company has developed world class, internationally
accredited, low cost manufacturing capabilities. Perhaps,
Lupin has one of the highest number of its facilities
approved by USFDA and many of them are also
approved by UK MHRA, TGA and other global regulatory
bodies.

The Company's wide global coverage provides it a hedge
against revenue slowdown from a particular geography
or therapeutic group. Its wide domain knowledge of
intermediates, APIs and Dosages allows it to move up
the value chain. The Company is also progressing well
on four NCEs, which should enable it to participate in the
highest value band in the medium to long term.
The pharmaceutical industry is subject to patent
litigation and regulatory issues. Patent challenges or
delay in regulatory approvals could delay the Company's
product launch in key markets. The Company mitigates
Legal Risk
29
legal risks through dedicated monitoring of regulatory
requirements and constant evaluation of products with
drive of API supplies based on non-infringing processes.
The IPMG critically evaluates and prudently identifies
the product roadmap, factoring the patent and
regulatory aspects. The Company has an in-house
dedicated and effective regulatory compliance group
that obtains national and global regulatory approvals.
The Company has augmented its R&D budget
substantially and faces the risk of lower than expected
yields from its innovations. Even though it can take years
before any benefit is derived, the Company has a policy
of expensing out the entire investment relating to
research in the same year. Through careful planning
and selection of research projects, the Company has
demonstrated high productivity in research that is
Financial Risk
evident from a number of successful filings, which are
expected to be commercialised in the near to medium
term.
As part of its broad foreign exchange management
policy, the Company enters into forward foreign
exchange contracts whenever appropriate for its
international transactions. The Company also maintains
a proper balance of short and long-term funds to
facilitate smooth business operations.
The Company has implemented sound policies and
procedures for the safety, health and protection of the
environment in which it operates and has built an
efficient, effective and strong infrastructure for the
treatment of effluents, gases and other emissions
generated at its plants.
Environment Risk
RESEARCH TEAM
The objective of Lupin Human Welfare and Research
Foundation (LHWRF) is to create replicable models of
happy and prosperous rural India by alleviating poverty
and misery from the life of people. Lupin set for itself a
noble challenge of enabling the downtrodden below
poverty line, residing in backward areas of the Country,
to become self-supportive and sustain minimum
standard of living.
Born on October 2, 1988, inspired by the vision of
Dr. Desh Bandhu Gupta, LHWRF, the corporate social
responsibility wing of the Company pioneered its
humane efforts with initial focus on 35 villages and
functioned relentlessly with the single-minded
commitment, which has now seen it revamp and
Highlights of LHWRF Service
!
Over 5,000 families below poverty line and 450
families just above poverty line economically
upgraded.
!
Skill up-gradation - over 18,000 people benefitted
!
Over 28,500 poor patients have been treated
through various health camps.
!
Out of school children of the age group 6-14 years
in 350 villages have been enrolled in schools.
!
More than 8,300 people have been provided with
social security through various Government and
Private insurance schemes.
!
1,371 women self-help groups made up of over
14,200 members were able to save Rs.10.30 mn,
which is being used for inter-loaning.
!
116 schools, 25,806 internal roads, 41 kms. link
road and drinking water facility in 83 villages have
been provided.
Social initiatives
Lupin's unique way of
serving the society,
impacting the lives of
people and playing a
catalyst role in
economic development
of villages was widely
acclaimed when the
Company bagged the
BUSINESSWORLD
FICCI-SEDF top
Corporate Social
Responsibility Award
2003 for its role as an
outstanding corporate
citizen.
Stirring within was my conscience, always
telling me that, only by doing selfless service
to the needy and the poorest of the poor, can
one become an instrument in real
development and achieve a true sense of
satisfaction and happiness; the highest
purpose of life.
rejuvenate more than 1900 villages spread across
Rajasthan, Madhya Pradesh and Maharashtra.
LHWRF endeavours at bringing about sustainable
development of poor women, youth and men residing in
these villages by adopting a model that addresses their
economic, social and infrastructural development
issues. The model seeks effective participation of
villagers in solving their problems by identifying
solutions that are specific to their needs and resources.
LHWRF fills into essential resource gaps and acts as a
catalyst to ferment change, ensuring that the villagers
stand strong on their own feet to face future challenges.
It believes that the replication of these model villages is
at the core of making a happy and prosperous rural
India. Being amongst the largest Non Governmental
Organizations (NGOs) in the Country, LHWRF believes
that it could share its experience with and play an
effective role in guiding and motivating numerous
NGOs, social workers and corporate social initiatives,
thereby setting a ripple effect of transformation.
Visit of Mr. Nathan Emery, International
Bee Expert, to the local bee keeper's
area had been arranged by LHWRF for
introduction of latest technologies in
this field.
A view of the Janshala run by
LHWRF in the slum areas of
Bharatpur Town.
A village level milk collection
centre by Self Help Groups
formed by LHWRF.
SOCIAL INITIATIVES
LHWRF
Operational sweep
Agricultural Development
Initiatives like soil reclamation,
vermi compost, multi-cropping,
post harvest technology, etc.
Women Empowerment
'Rehabilitate a woman and
you build a family' - skill
training and formation of self
help groups have shown
immense success.
Building human value

and character
Inculcating values to prepare
better human beings.
Eradication of social evils.
Animal Husbandry
Programmes for improved
breed management, animal
care, goatry, fishery, etc.
Income Generation
Training for vocations like bee
keeping, shoe making,
carpentry, pottery, etc.
Education
Teacher training, adult
education, providing the light
of education to poor children.
Health & Hygiene

Holding health camps,
subsidised operations,
thrust on women and
children health care, etc.
Infrastructure
Development
Help in building roads,
houses, wells, school buildings,
internal roads, etc.
Water Resource Management

Successful in reviving
thousands of ponds thereby
providing solution to acute
water shortage.
THE FOUNDER'S PERSPECTIVE: -
Happiness comes from value system and prosperity through economic activities. It would be ideal, if each person in villages
could earn at least Rs.1,000/- per month, with an average family of five members, it would sustain a household income of at
least Rs.5,000/- per month, which would enable them to live with dignity. The Planning Commission has identified 100 most
backward districts. If just 50 like-minded industrialists take two districts each, it will radically transform these 100 districts
and this example would radiate to the rest of the Country; wipe away the tears, misery and poverty from lives of our
under-privileged brethren and help build a new, vibrant and prosperous India.
31
Five year financial summary
I. SOURCES OF FUNDS
II. APPLICATION OF FUNDS
Shareholders' funds
Share Capital
Equity Capital
Preference Capital
Reserves & Surplus
Loan funds
Secured Loans
Unsecured Loans
Deferred Tax Liabilities (Net)
Total
Fixed Assets
Gross Block
Less : Depreciation
Net Block
Capital Work-in-progress
Investments
Current Assets, Loans & Advances
Inventories
Sundry Debtors
Cash & Bank Balances
Loans & Advances
Less: Current Liabilities & Provisions
Current Liabilities
Provisions
Net Current Assets
Total
2005

401.4
-
4,603.6
5,005.0

3,806.3
600.1
4,406.4

934.4
10,345.8

7,148.5
1,559.1
5,589.4
698.1
6,287.5

93.7
2,480.8
2,353.9
177.8
1,726.2
6,738.7
2,374.3
399.8
2,774.1
3,964.6
10,345.8
2004

401.4
-
4,078.9
4,480.3
2,865.5
905.6
3,771.1

941.7
9,193.1

6,404.1
1,232.0
5,172.1
171.7
5,343.8

89.1
2,153.0
2,158.3
150.4
1,999.8
6,461.5
1,967.3
734.0
2,701.3
3,760.2
9,193.1
2003

401.4
-
3,422.3
3,823.7
5,509.2
1,000.1
6,509.3

895.5
11,228.5

5,809.0
952.5
4,856.5
107.2
4,963.7

85.1
1,418.6
4,022.2
147.9
2,997.2
8,585.9
1,807.6
598.6
2,406.2
6,179.7
11,228.5
2002

401.4
70.0
2,923.1
3,394.5
5,678.9
1,241.3
6,920.2

834.2
11,148.9

5,113.9
708.4
4,405.5
212.1
4,617.6

104.0
1,432.8
3,915.2
222.1
2,793.5
8,363.6
1,524.7
411.6
1,936.3
6,427.3
11,148.9
2001

401.4
120.0
3,086.7
3,608.1
5,451.7
1,199.8
6,651.5

-
10,259.6

4,444.8
483.0
3,961.8
409.7
4,371.5

119.1
1,463.7
3,477.9
153.0
2,553.9
7,648.5
1,470.9
408.6
1,879.5
5,769.0
10,259.6
BALANCE SHEET
Rs. in million
st
As at 31 March
FIVE YEAR FINANCIAL SUMMARY
33
PARTICULARS
Sales (Gross)
Less: Excise Duty
Sales (Net)
Other Income
Total Income
Cost of Materials
Personnel Expenses
Manufacturing and Other Expenses
Total Expenses
Earnings before Interest, Depreciation,
Tax and Extraordinary items
Interest
Depreciation and Amortisation
Profit before Tax and
Extraordinary items
Current tax
Deferred tax
Net Profit before Extraordinary items
Extraordinary items (net of tax)
Net Profit
Note: The figures for the previous years have been suitably regrouped to make them comparable.
2005

12,122.7
511.4
11,611.3
187.7
11,799.0
5,684.4
1,256.8
3,399.9
10,341.1
1,457.9
273.1
332.1

852.7
16.4
(7.3)
843.6
-
843.6
2004

11,679.3
486.5
11,192.8
455.5
11,648.3
5,281.0
1,048.1
2,517.5
8,846.6
2,801.7
515.1
290.4

1,996.2
454.0
46.2
1,496.0
508.9
987.1
2003

9,683.9
515.1
9,168.8
130.1
9,298.9
4,587.6
858.0
1,999.1
7,444.7
1,854.2
633.2
250.4

970.6
142.5
61.3
766.8
-
766.8
2002

8,062.0
556.6
7,505.4
107.1
7,612.5
3,326.6
762.7
1,683.8
5,773.1
1,839.4
643.9
231.7

963.8
70.0
172.0
721.8
-
721.8
2001

7,500.3
645.3
6,855.0
110.1
6,965.1
3,262.0
635.3
1,611.3
5,508.6
1,456.5
621.1
185.2

650.2
50.0
-
600.2
-
600.2
st
Year ended 31 March
Rs. in million
PROFIT AND LOSS ACCOUNT
Directors Report
Corporate Governance Report
Auditors Certificate on Corporate Governance
Auditors Report
Financial Statements
Auditors Report on Consolidated
Financial Statements
Consolidated Financial Statements
Section 212 Statement
Subsidiary Companies
Lupin Pharmaceuticals Inc., USA
Lupin Chemicals (Thailand) Ltd., Thailand
Lupin Hong Kong Ltd., Hong Kong
Lupin Herbal Ltd., India
Lupin Laboratories South Africa (Proprietary) Ltd.,
South Africa
35
45
58
59
62
89
90
114
115
129
151
157
161
Reports and Financials
35 text 35
LUPIN LIMITED
35 35
DIRECTORS REPORT
To the Members,
Your Directors have pleasure in presenting their report on the business and operations of your Company for the year ended
March 31, 2005.
Financial results
Performance Review
Your Company recorded gross sales of Rs. 12122.7 million, an increase of about 4% over Rs. 11679.3 million in the previous year. Your
Company achieved a net profit of Rs.843.6 million as compared to Rs. 987.1 million for the previous year.
Higher R&D expenditure, lower than expected market penetration of branded product Suprax
in the US, decline in the prices of Pen

G based Cephalosporins and destocking by the trade during the last quarter because of uncertainties about VAT resulted in lower profit
for the year.
Financials
The Companys borrowings stood at Rs.4406.4 million at the end of the year, providing a debt-equity ratio of 0.88:1. Owing to a much
lower level of average borrowing carried by the Company during the year, interest cost came down from Rs.515.1 million in the previous
year to Rs. 273.1 million in the year under report.
The tax impact was lower in the year, owing to a significant portion of the Companys profit emanating from Export Oriented Units.
Deductions in respect of R & D expenditure also helped in this respect.
(Rs. in million)
Year ended Year ended
March 31, 2005 March 31, 2004
Sales (Gross) 12122.7 11679.3
Less: Excise duty 511.4 486.5
Sales (Net) 11611.3 11192.8
Profit before interest, depreciation, tax and extraordinary items 1457.9 2801.7
Less: Interest and finance charges (net) 273.1 515.1
Less: Depreciation and amortisation 332.1 290.4
Profit before tax and before extraordinary items 852.7 1996.2
Less: Provision for taxation (including wealth tax and deferred tax) 9.1 500.2
Net Profit before extraordinary items 843.6 1496.0
Less: Extraordinary items (net of tax) - 508.9
Net Profit after tax and after extraordinary items 843.6 987.1
Less: Income tax earlier years 20.7 36.2
Add: Surplus brought forward from previous year 1601.3 859.7
Add: Debenture Redemption Reserve written back 35.0 350.0
Profit available for Appropriation 2459.2 2160.6
Appropriations:
Transfer to Debenture Redemption Reserve - 15.0
Transfer to General Reserve 750.0 250.0
Proposed dividend on Equity Shares 260.9 260.9
Corporate tax on dividend 37.3 33.4
Balance carried to Balance Sheet 1411.0 1601.3
2459.2 2160.6
36 Annual Report 2004-05
Operational Review
a) Finished Dosages-Semi regulated markets
India Region
The finished dosages business in India exhibited encouraging performance; it has grown by 15% as against industry growth rate
of 6%. The Company achieved significant increase in sales in the cardiology and diabetology segments. Your Company offers a
wide range of products covering therapeutic segments such as gastro intestinal, pain management, anti-histaminic, nutraceuticals,
cardi ovascul ar, di abet es et c. , besi des mai nt ai ni ng i t s l eadershi p posi t i on i n ant i -Tubercul osi s (TB) and
anti-infectives. The performance of 1350-strong field force achieved prescription growth of 6% as against the industry
rate of 1%.
Your Company successfully entered the highly competitive anti-asthma market. Within a short span of eight months, it registered
revenue of Rs.90 million.
Your Company launched 18 new products in the market, which included unique products, such as Rablet IV, an anti-peptic
ulcerant, Nizonide, an anti-parasitic and Tonact EZ for cholesterol control. Your Company also introduced a life-saving antibiotic
Novapime, a fourth generation injectible cephalosporin, at an affordable price.
Six of your Companys products feature in the top 300 pharma brands.
The uncertainties brought about by the introduction of VAT in several states led to significantly lower buying by the distribut ors.
This occasioned much lower sales during the last quarter of the year.
Over the years, your Company has consciously reduced its dependence on anti-TB business, without diluting its undisputed
market leadership. To accelerate growth, your Company has strategically focused on high-growth, high-contribution area of
life-style segments like diabetology, cardiology, CNS and Asthma. Your Company now offers various innovative Novel Drug
Delivery System (NDDS) dosages to strengthen its doctor franchise, at the same time, increasing its reach to far-flung rural areas
through the Mass Marketing Division.
Other markets
Your Company is entering value added generics through alliances in Australia and Japan. It has also set its sight on other
regulated markets like Brazil, Mexico and New Zealand, besides semi-regulated South East Asia, Middle East, Africa and Latin
America. A separate division AAMLA monitors these geographical areas.
Your Company is among the earliest Indian companies to operate in the erstwhile Soviet Union. The Company continues to focus
on the CIS countries. During the year, Ribavin (anti-viral), One Be (herbal adaptogen revitalizer) and Softovac (herbal bowel
regulator) were introduced in that market. Your Company is geared to consolidate its position in CIS through branded products
and is planning to achieve market penetration through expansion of field force.
b) Active Pharmaceutical Ingredients (API) - Semi regulated markets and Intermediates
This business retained its dominant global position in antiTB and Cephalosporins.
Your Companys statins facility at Tarapur received the USFDA approval and the injectible cephalosporin facility at Mandideep
received approval of TGA Australia.
Certain segments of the Cephalosporin market (Pen G based products) came under pricing pressure. Profitability from thes al e
of these products was lower in the year consequent upon this. Prices of some other API products were also under pressure.
With a view to insulate itself from volatility in sales and margins, your Company has entered into long-term agreements with
customers as well as suppliers of raw materials. Your Company also adopted a relationship-driven geographically diversified
business model, by establishing its presence in over 50 countries, by offering a wide product range. It derives its strength fr om
its capability in integrated world class manufacturing facilities and economies of scale. A number of large global pharma
companies are on the list of the Companys customers.
Your Company has also leveraged its strength in intermediates and has become a prominent player in this segment in respect of
its chosen products.
DIRECTORS REPORT
37 text 37
LUPIN LIMITED
37 37
c) Regulated Markets
i) Finished Dosages
Generic
Your Company has made significant progress in its plans on regulated market formulations sale. The Company is pursuing
a sufficiently large pipeline that, over time, will provide a critical mass of generic products for sale in the regulated markets
of the US and Europe. In this effort, the Company filed 14 ANDAs during the year. The Company expects to get approval for
these in time for the products to be launched in the US.
Recently, your Company has entered into a Development and Licensing Agreement with Cornerstone BioPharma Inc., US, for
collaborating in the clinical development of a NDDS for an anti-infective product. This validates your Companys strategy of
applying Novel Drug Delivery platforms to create value-added products in chosen therapeutic areas conforming to global
standards. This also signifies your Companys expertise in developing and manufacturing products to be administered
through patented delivery systems.
Through an exclusive tie-up with Baxter, a market leader in hospital products in the US, your Company is set to launch
injectible Ceftriaxone, which will go off patent in July 2005. Ceftriaxone is the largest selling Cephalosporin having an
estimated market size of US$ 800 million in the USA alone.
Specialty
Your Company has set its vision on consolidating the foundation it has laid in the US for the specialty portfolio. Despite a
slow start in April 2004, the level of prescriptions for the first branded product Suprax
has risen sharply in the recent months,

generating over 85,000 prescriptions during the year. Your Company has also entered into an alliance with Cornerstone
BioPharma Inc., US, for co-promotion of Suprax
, which would enhance its reach beyond paediatric market.

ii) Active Pharmaceutical Ingredients
The Companys sales in the API segment of the regulated generics market registered significant gains. The Company achieved
leadership in cardiovascular segment through Lisinopril and aims to achieve similar status in Statins. The customer base for
Lisinopril and some Cephalosporins was widened during the year, which would ensure long-term steady growth in these
products. The Company also improved its capabilities of entering into new products through focus on process/product
development and investment in state-of-the-art manufacturing facilities.
The Intellectual Property Management Group, based at Pune, leverages the cross-functional competencies by playing a
pivotal role in identification of commercially viable products.
Research and Development
Your Company has succeeded in laying a strong foundation in R&D encompassing varied disciplines of science and technology
through its state-of-the-art Research Park, based at Pune. The Park has enabled the Company to develop significant competencies in
resolving complex chemistry involving non-infringing processes and novel drug delivery platforms, besides leveraging its strengths in
New Chemical Entity (NCE) and herbal research. Your Company remains committed to further accelerate R&D efforts in the years to
come.
It was a memorable year in your Companys research history, which witnessed filings of 14 ANDAs, 15 DMFs, two EDMFs and four COSs,
with wide therapeutic coverage ranging from anti-infective Cephalosporins, anti-hypertension prils, psychotropics, anti-depressant and
lipid lowering agent statins.

Your Company has received five ANDA approvals so far. The research team of your Company has a clear
regulatory focus, oriented to meet the unique requirements of the target markets.
The Company has made encouraging progress in NCE research in the following areas:
The safe non-toxic anti-migraine nasal drops received approval from the Drug Controller General of India and is at present in
Phase II clinical trials.
An orally active herbal formulation and a pure compound isolated from a plant for treatment of Psoriasis have completed
Phase I clinical trials.
A new anti-TB molecule is undergoing Phase I clinical trials.
Besides the above, your Company has set its focus on broad-spectrum anti-bacterials, anti-asthma and diabetic research.
Your Company has thus defined a roadmap for focused growth of research and development to meet with confidence the challenges
posed by the new patent regime.
The Company is proud of its 250 strong Scientist group, which has contributed phenomenally in building the foundation of research.
The Company increased its expenditure on R&D to 7.2% of net sales.
R&D Alliances
Your Company has entered into research collaborations with government agencies like Institute of Science, Bangalore, and various
CSIR laboratories (viz. National Chemical Laboratory, Pune, Indian Institute of Chemical Technology, Hyderabad, Central Drug Research
Institute, Lucknow, Regional Research Laboratory, Jammu) to further its objectives of development of new drug discovery programme.
Dividend
Your Directors are pleased to recommend dividend @ Rs.6.50 per equity share of Rs.10/- each, absorbing an amount of Rs.297.5 million,
inclusive of tax on dividend.
Voluntary De-listing of Shares
As approved by the shareholders at the extraordinary general meeting held on December 5, 2003, equity shares of your Company were
de-listed from the stock exchanges at Jaipur and Kolkata w.e.f. May 15, 2004 and September 30, 2004 respectively. The shares continue
to remain listed on The Stock Exchange, Mumbai and National Stock Exchange of India Ltd.
Rural Development Programme
Initiating the rural development programme with 35 villages, Lupin Human Welfare & Research Foundation (LHWRF) has made
steady progress by revitalizing, revamping and recreating over 1900 villages in states of Rajasthan, Madhya Pradesh and Maharashtra,
thereby making it one of the largest NGOs in the country. LHWRF has made an effective contribution to the sustainable development
of thousands of people in poverty-ridden villages.
It is engaged in various philanthropic activities, directed towards the economic upliftment of those below the poverty line, skill
up-gradation of people engaged in various vocations, conducting health camps for the poor, among others. It has also contributed to
the spread of education amongst children, forced to dropout for economic reasons.
The goal of LHWRF is to create replicable models of building happy and prosperous rural India.
Subsidiary Companies
Pursuant to the provisions of Section 212 of the Companies Act, 1956 (the Act), annexed hereto, are the audited statements of account
together with reports of the Directors and Auditors in respect of:
a) Lupin Pharmaceuticals Inc., USA, for the year ended March 31, 2005,
b) Lupin Chemicals (Thailand) Ltd., for the year ended March 31, 2005,
c) Lupin Hong Kong Ltd., for the year ended March 31, 2005,
d) Lupin Herbal Ltd., for the period ended March 31, 2005 and
e) Lupin Laboratories South Africa (Pty) Ltd., for year ended March 31, 2005.
Lupin Pharmaceuticals Inc. is engaged in marketing and development activities in the US. The company recorded a profit of
Rs.25.6 million during the year. The company is expected to grow as new products are launched in the target market.
Lupin Chemicals (Thailand) Ltd. recorded a profit of Rs. 9.5 million during the year. The company is expected to perform better during
the years to come.
Lupin Hong Kong Ltd. commenced operations during the year and recorded a profit of Rs. 2.1 million. The company carries out
marketing and development activities in South East Asia.
DIRECTORS REPORT
39 text 39
LUPIN LIMITED
39 39
Lupin Herbal Ltd., which provides marketing and promotional services to the Companys herbal division, recorded a nominal profit of
Rs. 5276/- during the period ended March 31, 2005.
A subsidiary known as Lupin Australia (Pty) Ltd. was formed in Australia, the operations of which are yet to commence.
Lupin Laboratories South Africa (Pty) Ltd., which was inoperative since the last few years, was wound-up w.e.f. April 25, 2005.
In compliance with Clause 32 of the Listing Agreement, audited consolidated financial statements form part of this Annual Report.
Corporate Governance
Pursuant to Clause 49 of the Listing Agreement, detailed reports on Corporate Governance and Management Discussion & Analysis
and a Certificate from the Auditors regarding compliance with conditions of Corporate Governance form part of this Annual Report.
Directors Responsibility Statement
In terms of the provisions of Section 217(2AA) of the Act, your Directors confirm:
i) that in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper
explanation relating to material departures;
ii) that the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that
are reasonable and prudent so as to give a true and fair view of the state of affairs of your Company at the end of the financi al
year and of the profit of your Company for that year;
iii) that the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of your Company and for preventing and detecting fraud and other irregularities;
and
iv) that the Directors had prepared the annual accounts on a going concern basis.
Directors
Mrs. M. D. Gupta and Mr. P. K. Kaul retire by rotation at the forthcoming Annual General Meeting and are eligible for re-appointment.
UTI Asset Management Company Pvt. Ltd. (UTI) had withdrawn the nomination of Mr. M. Parameswaran w.e.f. July 29, 2004 and
appointed Mr. Raghu Palat in his place. The nomination of Mr. Raghu Palat was withdrawn by UTI w.e.f. April 15, 2005 consequent to
repayment of the entire dues owed by the Company to UTI. The Board places on record its sincere appreciation of the valuable services
rendered by Mr. Parameswaran and Mr. Palat during their tenure as nominee directors.
The Companies (Disclosure of particulars in the report of Board of Directors) Rules, 1988
In terms of the above rules, your Directors give the prescribed particulars in an annexure forming part of this Report.
Fixed Deposits
Your Company has stopped accepting/renewing fixed deposits from public/shareholders. Deposits as on March 31, 2005 stood at
Rs.385.25 million as against Rs.734.8 million as on March 31, 2004. 949 deposits aggregating Rs.11.65 million were lying
unclaimed with the Company as on March 31, 2005, of which, 392 deposits aggregating Rs.5.14 million have since been claimed.
The Company has sent intimations to the depositors concerned to claim the repayment of their matured deposits.
Industrial Relations
Industrial relations continued to be cordial and harmonious at all levels and in all the units of your Company.
Auditors
M/s. Deloitte Haskins & Sells, Chartered Accountants, retire at the conclusion of the forthcoming Annual General Meeting and are
eligible for re-appointment.
Cost Auditors
With the prior approval of the Central Government, Mr. S. D. Shenoy and Mr. D. H. Zaveri, practicing Cost Accountants, were appointed
to conduct audit of cost records of API and finished dosages respectively. Cost Audit Reports will be submitted to the Central Government
within the prescribed time.
Employees Stock Option Plan
Your Company issued 377150 options under Lupin Employees Stock Option Plan 2003. In terms of Clause 12.1 of the Securities and
Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999, [the SEBI Guidelines],
given below are the requisite particulars of options granted as on March 31, 2005:
Particulars of Employees
Information as prescribed by Section 217 (2A) of the Act, read with Companies (Particulars of Employees) (Amendment) Rules, 2002 is
given as an annexure to this Report. However, pursuant to the provisions of Section 219(1)(b)(iv) of the Act, the Report and Accounts are
being sent to all the shareholders excluding the aforesaid annexure. Shareholders who are interested in obtaining the said information
may write to the Company Secretary at the registered office of the Company.
Appreciation
Your Directors wish to place on record their appreciation of the services rendered by all the staff members of your Company and their
gratitude towards the financial institutions, banks, customers including the medical profession, distributors and suppliers for their
continued support.
For and on behalf of the Board of Directors
Chairman
Mumbai, May 20, 2005
1 : 377150 options representing equal number of equity shares.
2 : The exercise price of the options is the market price of the shares as
defined under the SEBI Guidelines, as on the grant date.
3 : Nil
4 : Nil
5 : Nil
6 : There has been no variation in the terms of options.
7 : Nil
8 : 377150 options.
9
a) Senior managerial personnel : 10800 options were granted to Dr. Kamal K. Sharma, Managing
Director. All other options were granted to eligible employees in the
grades of manager and above.
b) Employees to whom options granted
amounting to 5% or more of the total
options granted during the year
: Nil
c) Employees to whom options equal to or
exceeding 1% of the issued capital have
been granted during the year
: Nil
10 : Rs. 20.48
Total number of options granted
The pricing formula
Options vested
Options exercised
Diluted Earning Per Share pursuant to issue
of shares on exercise
Employeewise details of options granted to
Options lapsed
Variations of terms of options
Money realized by exercise of options
Total number of options in force
DIRECTORS REPORT
41 text 41
LUPIN LIMITED
41 41
ANNEXURE TO THE DIRECTORS REPORT
Pursuant to the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988.
A. CONSERVATION OF ENERGY
a) Energy conservation measures taken:
i) Improved ventilation of the warehouse by installing eco-ventilator, which does not consume any energy.
ii) Installed sand filtration system and used soft water as make-up in cooling water.
iii) Power factor maintained at 0.999 for reducing maximum demand and internal transmission losses.
iv) Optimised air supply in natural gas fired boiler for improving combustion efficiency.
v) Installed special lighting transformer for optimising voltage.
vi) Installed high efficiency diffusion aeration system, replacing surface aeration system.
vii) Installation of timer in lighting system to eliminate power wastage.
viii) Installation of VFD in cooling water pump.
ix) Installed De-Super heater for heat recovery and optimum utilisation of refrigeration compressor.
x) Replaced timer based drain valve by Witmans automatic drain valve.
xi) Installed temperature controller switch in cooling tower fan.
xii) Installed Orteli burner assembly in TPH boilers in place of multi-nozzle Nestler burners.
xiii) Installed Variable Speed Drive for FD Fan for optimal operation.
xiv) Air pre-heater incorporated at Boiler exhaust to recover heat and improve efficiency.
xv) Installed power free wind ventilators for improved ventilation.
xvi) Cold Insulation specifications were improved to reduce heat gain.
xvii) Deareator head installed at Condensate Water Tank for reducing flash steam wastage.
xviii) Installed solar water heaters in specific areas to cater requirement of hot water.
b) Additional investments and proposals:
i) Procurement of R.O. plant to treat cooling tower blow down water.
ii) Procurement of flash steam heat recovery system at boiler feed water tank.
iii) Replacement of more steam valves so as to avoid steam loss on account of leakages.
iv) Install online 0
2
monitoring system in exhaust duct for efficient operation.
v) Install boiler blow down heat recovery system to retrieve heat and precise TDS control.
vi) Install steam trap leak detection system to immediately detect faulty traps.
c) Impact of measures in (a) & (b):
i) Operation of FD fans as per loading and replacement of power ventilation fans with power free wind ventilators
resulted in conservation of electrical units.
ii) Improvement in condensate water temperature on account of waste heat retrieval resulted in reduction in fuel
consumption.
iii) Boiler efficiency has improved.
iv) Power and energy losses are reduced.
d) Total energy consumption and energy consumption per unit of production:
Details are given in Form A
FORM A
(See Rule 2)
FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY
B. CONSUMPTION PER UNIT OF PRODUCTION:
The Company manufactures APIs and several drug formulations of different pack sizes. It is therefore, impractical to apportion the
consumption and cost of utilities to each product.
NOTE:
There are no specific standards, as the consumption per unit depends upon the product mix. Variations in consumption are due to
different product mix.
March 31, 2005 March 31, 2004
A. POWER & FUEL CONSUMPTION
1. Electricity
a) Purchased Units Thousand KWH 56139 52702
Total amount Rs. in Million 275.1 268.0
Rate/unit (KWH) Rs. 4.9 5.1
b) Own Generation
i) Through Diesel Generator (HSD)
Units Thousand KWH 3104 3388
Units per litre of diesel oil KWH 3.1 3.2
Cost/unit (KWH) Rs. 9.5 8.7
ii) Through Generator (furnace oil)
Units Thousand KWH 30306 29668
Units per litre of furnace oil KWH 4.1 4.1
Cost/unit (KWH) Rs. 2.7 2.7
iii) Through Generator (gas)
Units Thousand KWH 5355 Nil
Units per M of Natural gas
KWH 3.2 N.A.
Cost/unit (KWH) Rs. 3.4 N.A.
2. Coal Nil Nil
3. i) Furnace oil (Boiler)
Quantity KL 10075 8957
Rate/unit (KL) Rs. 12065 11280
ii) Furnace oil (Power Plant)
Quantity KL 7374 7218
Rate/unit (KL) Rs. 11152 11118
4. Natural gas
Quantity Cu. mts. 8093490 7144718
Rate/unit (Cu. mt.) Rs. 8.8 8.9
43 text 43
LUPIN LIMITED
43 43
B TECHNOLOGY ABSORPTION:
e) Efforts made in technology absorption as per Form B are given below:
FORM B
( See Rule 2 )
FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO ABSORPTION
Research and Development (R & D)
1) Specific areas in which R&D was carried out by the Company:
Evaluation of alternate raw materials for fermentation in line with regulatory requirements with a focus on improving
productivity by using mathematical modelling and statistical designs. Improving strains including media optimisation for
several microbial strains. Developing synthetic processes for improving yield. Development of recovery processes for new
products based on fermentation technology. Significant progress has been made in the anti-psoriasis and anti-migraine
projects. Continuous efforts are on to reduce waste stream and improve recovery of byproducts. Emphasis is on reducing cost
of raw materials through innovative chemistry and development of eco-friendly processes to reduce effluent generation.
With a view to achieve cost effectiveness, constant efforts are on to develop new processes and improve existing ones by
simplifying/modifying them.
2) Benefits derived as a result of the above R&D:
Improvement in the quality and yield of 7-ACCA, 7-ADCA and Mandelic acid manufacturing technology was achieved. Yield and
quality improvement of Lovastatin was achieved through development of a robust fermentation and isolation technology. The
analytical research group has developed techniques for impurity profiling. Several patents have been developed and are at
various stages of regulatory approval process. Increased focus on standardization of key ingredients resulted in products, which
can be uniquely positioned in terms of their qualitative strengths. As a result of the continuous improvement and adaptation of
technology, the Company was able to commercialise new products, improve processes and yields, enhance quality and reduce
costs. One molecule is in Phase II clinical trials. Two molecules have completed Phase I clinical trials and one molecule is
undergoing Phase I clinical trials. Line extensions for existing products and original formulations are developed, furthered by
proprietary R&D capabilities.
3) Future plan of action:
The Company has drawn-up well-focused plans for facing with confidence the challenging times ahead. New non-conventional
route of drug administration would be explored. Synthesis of drugs involving complex chemistry/technology have been identified
for process development research. New herbal leads for new indications have been identified for further development. The
Company will tap emerging opportunities for licensing-out products.
4) Expenditure on R&D:
a. Capital Rs. 76.0 million
b. Recurring (excluding depreciation of Rs.37.6 million) Rs. 760.1 million
c. Total Rs. 836.1 million
d. Total R&D expenditure as a percentage of net sales 7.2%
Technology absorption, adaptation and innovation:
i) Efforts in brief, made towards technology absorption, adaptation and innovation:
The Company endeavours to become a strong knowledge based, technology oriented and R&D driven health care company. In
this direction it made continuous efforts for technology development, adaptation and innovation. Time-bound programmes are
undertaken for development and scale-up of new products.
ii) Benefits derived as a result of the above efforts:
The Company was successful in introducing efficacious products, developing technologies, improving processes, discovering New
Chemical Entities and developing Novel Drug Delivery Systems.
i i i ) I mport ed t echnol ogy:
During the year the Company did not import any specific technology. The Company developed technology through efforts of
in-house Research and Development.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO:
f) Information regarding exports activities and related matters is covered elsewhere in this Annual Report.
g) Earning in foreign exchange was equivalent to Rs. 5695.2 million and expenditure Rs. 3434.5 million.
Chairman
45 text 45
LUPIN LIMITED
45 45
CORPORATE GOVERNANCE REPORT
1 Companys philosophy on Corporate Governance:
Your Company is committed to high standards of corporate governance and firmly believes in and practises it for optimising
shareholder value and protecting the interests of shareholders. The Companys endeavours are towards attaining highest standards
of transparency and accountability by conducting its affairs with integrity, responsibility and fairness within the applicable regulatory
framework. The senior management team has an excellent blend of professionals and is guided by ethical integrity and functions
in a harmonious manner to meet every challenge and translate it into an opportunity for maximising returns to the shareholders.
Your Company has been greatly benefitting from the invaluable inputs provided by the non-executive directors, who are persons
with vast experience, expertise and wisdom.
The Company has implemented all mandatory requirements of Clause 49 of the Listing Agreement. Efforts are on to implement
certain non-mandatory requirements.
A detailed Management Discussion and Analysis report forms part of this Annual Report.
2 Board of Directors:
The present strength of the Board is ten, of which, two are executive promoter directors, one is non-executive promoter director, one
is executive independent director and six are non-executive independent directors. This is in compliance with the current norms
prescribed by Clause 49 of the Listing Agreement. Requisite particulars of directors are given below:
# ## ## P. & E.D.: Promoter & Executive Director, E.I.D.: Executive Independent Director, P. & N-E. D. Promoter & Non-Executive Director, N-E.I.D.: Non-Executive
Independent Director.
Promoter/
Executive/
Attendance
at the last
Independent/
Nominee #
AGM
Held Attended
Dr. Desh Bandhu Gupta,
Chairman
Dr. Kamal K. Sharma,
Managing Director
Mrs. M. D. Gupta,
Executive Director
4 Mr. D. K. Contractor N-E.I.D. 5 5 No 9 3/-
5 Mr. Marc Desaedeleer N-E.I.D. 5 2 No Nil Nil
6 Mrs. Vinita Gupta P. & N-E. D. 5 1 No 1 -
7 Mr. P. K. Kaul N-E.I.D. 5 4 Yes 12 8/3
8 Dr. K. U. Mada N-E.I.D. 5 4 Yes 7 6/3
9 Mr. Sunil Nair N-E.I.D. 5 4 Yes 3 -
10 Dr. D. P. Sinha N-E.I.D. 5 4 Yes 4 -
Mr. M. Parameswaran
(up to 28.07.2004)
Mr. Raghu Palat
(from 29.07.2004 up to 15.04.2005)
Yes 4 -
Number of
Directorships
of other
companies
Member/Chairman
of Committees
other than the
Company
Yes 6 -
N.A. N.A.
12 N-E.I.D.- UTI
Nominee
4 4
N.A.
3 P. & E. D. 5 3
11 N-E.I.D.- UTI
Nominee
1 -
Yes 7 -
2 E.I.D. 5 5 Yes 1 -
1 P. & E. D. 5 5
Sl.
No.
Name of the director
No. of Board
Meetings during
the year
Details of Board Meetings
During the year, five meetings of the Board of Directors were held on April 28, 2004, July 29, 2004, September 22, 2004, October
27, 2004 and January 25, 2005.
Remuneration to Directors
Notes:
a) Dr. Desh Bandhu Gupta, Chairman, Dr. Kamal K. Sharma, Managing Director and Mrs. M. D. Gupta, Executive Director, are in wholetime employment
of the Company and their employment is contractual in nature. Dr. Gupta and Mrs. Gupta hold office up to December 31, 2005. Dr. Sharma holds
office up to September 28, 2008.
b) An employees stock option plan entitled Lupin Employees Stock Option Plan 2003 was formulated, in terms of which, eligible employees
including whole-time directors (except a promoter or a person belonging to the promoter group) were issued options. Dr. Kamal K. Sharma was
granted 10,800 options.
c) Dr. Desh Bandhu Gupta is entitled to a commission @ 1% of the net profit, provided the net profit is not less than Rs. 500 million in the relevant
accounting year.
Brief Profiles, other Directorships and Committee Memberships etc. of Directors seeking re-appointment at the
23
rd
Annual General Meeting:
Dr. Desh Bandhu Gupta, 67, has Masters Degree in Science and is an eminent personality in the pharmaceutical industry. He is
the main promoter of the Company and presently designated as the Chairman (Executive capacity). He has vast business
experience and expertise and is in charge of the overall management of the Company. Under his able and dynamic leadership,
the Company has grown manifold and is set to achieve even higher levels of performance in the years to come.
Salary & Perks Commission Sitting fees Total
(Rs. in Million) (Rs. in Million) (Rs. in Million) (Rs. in Million)
1 Dr. Desh Bandhu Gupta, Chairman 12.84 8.30 Nil 21.14
2 Dr. Kamal K. Sharma, Managing Director 21.16 Nil Nil 21.16
3 Mrs. M. D. Gupta, Executive Director 2.29 Nil Nil 2.29
4 Mr. D. K. Contractor Nil Nil 0.27 0.27
5 Mr. Marc Desaedeleer Nil Nil Nil Nil
6 Mrs. Vinita Gupta Nil Nil 0.02 0.02
7 Mr. P. K. Kaul Nil Nil 0.11 0.11
8 Dr. K. U. Mada Nil Nil 0.24 0.24
9 Mr. Sunil Nair Nil Nil Nil Nil
10 Dr. D. P. Sinha Nil Nil 0.21 0.21
11 Mr. Raghu Palat Nil Nil 0.08 0.08
(from 29.07.2004 up to 15.04.2005)
Remuneration during 2004-05 Name of the director Sl.
No.
List of other Directorships Chairman/Member of the Committees of the Board of the companies
on which he is a director.
Lupin Investments Pvt. Ltd.
Rahas Investments Pvt. Ltd.
Lupin International Pvt. Ltd.
Zyma Laboratories Ltd.
Lupin Chemicals (Thailand) Ltd.
Lupin Marketing Pvt. Ltd.
Visiomed (India) Pvt. Ltd.
None
47 text 47
LUPIN LIMITED
47 47
Mrs. M. D. Gupta
Mrs. M. D. Gupta, 61, is a Bachelor of Arts. She is one of the promoters of the Company and presently designated as an Executive
Director. She has wide business experience and expertise.
Mr. P. K. Kaul
Mr. P. K. Kaul, 75, is B.Sc. and M.A. (Economics) from Allahabad University and Masters in Public Administration from Harvard
University, US. He joined the Indian Administrative Services in July 1951 and retired in July 1989. He held various senior positions
such as, Secretary - Textile, Commerce, Defence and Finance. He was also the Cabinet Secretary and held the coveted position of
Indias Ambassador to the US. He is actively involved in social work at Noida, which includes primary education to the
under-privileged. Since 1990, he is on the boards of several leading corporates.
3 Audit Committee:
The Audit Committee comprises Dr. K. U. Mada (Chairman), Mr. D. K. Contractor and Dr. D. P. Sinha, all non-executive independent
directors. Mr. Marc Desaedeleer and Mr. Sunil Nair are invitees at the meetings of the Committee. Mr. Kiran N. Bade, Company
Secretary, is the Secretary of the Committee. The Chairman of the Committee attended the last Annual General Meeting. President
- Finance & Planning, Executive Vice President - Finance, Head of Internal Audit Department, representatives of the Statutory
Auditors and Cost Auditors are invited at its meetings. The Committee performs the functions enumerated in Clause 49 of the
Listing Agreement and Section 292A of the Companies Act, 1956 and the matters deliberated upon by the Committee include:
a) Oversee and review the financial reporting process so as to ensure accuracy, transparency, timeliness and quality of disclosure.
b) Review with the management and seek feedback from auditors about internal control systems.
List of other Directorships Chairman/Member of the Committees of the Board of the companies
on which she is a director.
Lupin Investments Pvt. Ltd.
Rahas Investments Pvt. Ltd.
Lupin International Pvt. Ltd.
Zyma Laboratories Ltd.
Lupin Marketing Pvt. Ltd.
Visiomed (India) Pvt. Ltd.
None
List of other Directorships Chairman/Member of the Committees of the Board of the companies on
which he is a director.
Tata Iron & Steel Co. Ltd. Tata Iron & Steel Co. Ltd. -
Sagar Tourist Resorts Ltd. Chairman of Audit Committee.
Duncan Industries Ltd. Duncan Industries Ltd. -
Select Holiday Resorts Ltd. Chairman of Audit Committee and
Havells India Ltd. Member of Remuneration/Compensation Committee.
Exl. Service Com (I) Ltd. Havells India Ltd. -
Eveready Industries India Ltd. Chairman of Audit Committee.
J.K. Paper Ltd. Eveready Industries India Ltd. -
Dynamic Advertising & Research Team Pvt. Ltd. Member of Audit Committee and Remuneration/Compensation Committee.
Creditcapital Investment Trust Company Ltd. J.K. Paper Ltd. -
Sagar Entertainment Ltd. Member of Audit Committee and Remuneration/Compensation Committee.
Hindustan Gum and Chemicals Ltd.
c) Review with the management and auditors, the periodical and annual financial statements before submission to the Board
with focus on changes in accounting policies and practices, compliances of requirements of stock exchanges and legal
requirements.
d) Review the adequacy of internal control systems, discuss internal audit reports including the plan, scope of work, structure,
staffing and budgets of the internal audit department.
e) Review the financial and operational risk management policies and ensure that adequate safeguards are made for various
legal compliances.
f) Discuss and review with Cost Auditors the cost audit procedures, cost audit reports and related matters.
g) Review related party transactions.
h) Review and discuss with the management status and implications of various legal cases.
Details of Audit Committee Meetings
During the year, six meetings of the Audit Committee were held on April 28, 2004, July 29, 2004, September 22, 2004, October 6,
2004, October 26, 2004 and January 25, 2005 and the attendance was as follows:
4 Investors Grievances Committee:
The Investors Grievances Committee comprises three non-executive independent directors, namely, Mr. D. K. Contractor (Chairman),
Dr. K. U. Mada and Dr. D. P. Sinha. Mr. Marc Desaedeleer and Mr. Sunil Nair are invitees at the meetings of the Committee.
Mr. Kiran N. Bade, Company Secretary, is the Compliance Officer.
The Committee reviews functioning of the Investors Services Department covering all facets of operations including transfer/
transmission of shares in physical form, payment of dividend and depository related activities.
The Committee closely monitors the redressal system maintained by the department and inspires the team to render quality
services to the shareholders and depositors of the Company. It encourages and ensures that the highest standards of compliances
are being followed.
Your Company received and resolved 190 complaints from shareholders during the year. As on March 31, 2005, no complaints
remained pending/un-attended. During the year, no share transfers/complaints remained pending for more than 30 days.
Details of the Investors Grievances Committee Meetings
During the year, two meetings of the Investors Grievances Committee were held on September 22, 2004 and January 25, 2005
and the attendance was as under:
Held Attended
1 Dr. K. U. Mada 6 6
2 Mr. D. K. Contractor 6 6
3 Dr. D. P. Sinha 6 4
Sl. No. Name of the director
No. of Meetings
Held Attended
1 Mr. D. K. Contractor 2 2
2 Dr. K. U. Mada 2 2
No. of Meetings
49 text 49
LUPIN LIMITED
49 49
5 Remuneration/Compensation Committee:
The Remuneration/Compensation Committee comprises Mr. P. K. Kaul (Chairman), Mr. Sunil Nair (alternate - Mr. Marc Desaedeleer)
and Dr. D. P. Sinha, all non-executive independent directors. The Committee inter alia performs functions specified in Clause 49 of
the Listing Agreement and Schedule XIII of the Companies Act, 1956. The Committee approved the Lupin Employees Stock Option
Plan 2003 in terms of which 377,150 options were granted to 174 employees.
Details of the Remuneration/Compensation Committee Meetings
During the year, three meetings of the Remuneration/Compensation Committee were held on July 29, 2004, November 10, 2004
and February 17, 2005 and the attendance was as under:
6 Other Committees:
The Board had constituted an Independent Directors Recommendation Committee for identifying persons for appointment as
independent directors. Dr. Desh Bandhu Gupta is the Chairman of the Committee. Dr. D. P. Sinha and Mr. Sunil Nair (alternate -
Mr. Marc Desaedeleer), all non-executive independent directors, are members. The Board also constituted an Executive Committee
comprising Dr. Desh Bandhu Gupta, Chairman, Mrs. M. D. Gupta, Executive Director, Dr. K. U. Mada and Mr. Sunil Nair (alternate
- Mr. Marc Desaedeleer).
7 General body meetings:
Details of the last three Annual General Meetings:
No business was required to be transacted through postal ballot at the above meetings. Similarly, no business is required to be
transacted through postal ballot at the forthcoming Annual General Meeting.
8 Disclosure on materially significant related party transactions:
During the year under review, the Company has not entered into any transactions of material nature with the promoters, directors,
management or their relatives etc., which may have potential conflict with the interests of the Company. The Register of Contracts
containing details of transactions in which Directors are interested is placed before every meeting of the Board and is signed by
the Directors present at the meeting. Apart from payment of sitting fees as disclosed elsewhere in this Report, there is no pecuniary
transaction with the independent/non-executive directors. In compliance with the Accounting Standard AS 18, details of related
party transactions are disclosed in the Notes to the Accounts.
9 Means of communication:
Quarterly, half-yearly and annual financial results of the Company are communicated to the stock exchanges immediately after
they are taken on record by the Board and thereafter they are published in prominent English and Marathi newspapers. The
results are also posted on the Companys website viz. www.lupinworld.com and on the Electronic Data Information Filing and
Retrieval (EDIFAR) website maintained by the National Informatics Centre, as required by SEBI. Disclosures pursuant to the Listing
Agreement are promptly communicated to stock exchanges.
Held Attended
1 Mr. P. K. Kaul 3 3
2 Mr. Sunil Nair (alternate - Mr. Marc Desaedeleer) 3 1
No. of meetings
Year Day, Date and Time Location
Rang Sharda Natyamandir, Bandra
Reclamation, Bandra (West), Mumbai - 400050.
2002 - 03 Wednesday, August 6, 2003 at 2.00 p.m. --- do ---
2003 - 04 Thursday, July 29, 2004 at 2.00 p.m. --- do ---
2001 - 02 Monday, September 2, 2002 at 2.00 p.m.
10 General Shareholders information:
In-House Investors Services Department - At the service of the esteemed Shareholders
Your Company accords top priority to serve investors, who are its perpetual partners. Besides effecting timely de-materialisation/
re-materialisation, share transfer/transmission, managing fixed deposit related activities, the Investors Services Department renders
proactive and extensive services to investors, such as sending reminders to claim unpaid dividend/ interest, intimations on undelivered
mails, dividend disbursement within 24 hours of its declaration, educating and encouraging investors to register nominations,
opting for Electronic Clearing Service (ECS) etc.
The Company has a full-fledged Investors Services Department manned by experienced and NCFM (depository module) qualified
employees. The department is equipped with the state-of-the-art hardware infrastructure, investor service oriented and reliable
software systems and advanced communication systems to provide qualitative services for high investor satisfaction and confidence.
Dissemination of information for the benefit of investors is also a preferred service objective of the management. Pertinent and
varied information is hosted and regularly updated on the Companys website, www.lupinworld.com. Data is regularly updated on
SEBIs website www.sebi.gov.in as per EDIFAR requirements.
Reliability, security and integrity of vital and voluminous database is ensured through various measures like access controls, daily
data backups, daily reconciliation of capital, data encryption etc.
The Investors Services Department is dedicated to its investors and can be approached for any query or assistance through letter,
telephone, fax or email. For the convenience of investors, a link has also been established to the department through the
Companys website.
< Address for correspondence: Investors Services Department,
159, C.S.T. Road, Kalina, Santacruz (East), Mumbai - 400 098.
Email: investorservices@lupinpharma.com
Tel: +91 22 5640 2323 (Extn: 2402 / 3)
Fax: +91 22 2652 8806
< Person in-charge of the Department: Mr. Pradeep S. Bhagwat, Sr. Manager - Investors Services.
Annual General Meeting
The 23
rd
Annual General Meeting will be held at 2.00 p.m. on Thursday, July 28, 2005 at Rang Sharda Natyamandir, Bandra
Reclamation, Bandra (West), Mumbai - 400 050.
Financial Calendar
Book Closure
The Register of Members and the Share Transfer Register will remain closed from Tuesday, July 19, 2005 to Wednesday,
July 20, 2005.
Dividend for the year ended March 31, 2005, if declared at the Annual General Meeting, shall be paid to those shareholders
whose names appear:
(a) as beneficial owners at the end of business day on Monday, July 18, 2005 as per lists furnished by NSDL and CDSL in respect
of shares held in electronic form; and
(b) on the Register of Members of the Company as on Monday, July 18, 2005 in respect of shares held in physical form.
First quarter results : July 2005
Second quarter results : October 2005
Third quarter results : January 2006
Annual results : April/May 2006
Annual General Meeting : July/August 2006
51 text 51
LUPIN LIMITED
51 51
The Stock Exchange, Mumbai (BSE) 500257
National Stock Exchange of India Ltd. (NSE) LUPIN
Dividend Payment Date
Dividend, as declared, shall be paid within three days from the date of the Annual General Meeting. Dividend shall be remitted
through Electronic Clearing Service (ECS) at approved locations, wherever ECS details are available with the Company and in all
other cases, through warrants payable at par.
Shares Listed At
The equity shares of the Company are listed at:
The Stock Exchange, Mumbai (BSE) (Regional Exchange).
Phiroze Jeejeebhoy Towers,
Dalal Street, Mumbai Samachar Marg,
Mumbai - 400 001.
National Stock Exchange of India Ltd. (NSE).
Exchange Plaza,
Bandra Kurla Complex,
Bandra (East),
Mumbai - 400 051.
The Company has paid listing fees to BSE and NSE for the year 2005-06.
As per Companys decision, equity shares were de-listed from the Jaipur Stock Exchange Limited and The Calcutta Stock Exchange
Association Limited w.e.f. May 15, 2004 and September 30, 2004 respectively.
Stock Codes
The stock codes of the Company are:
Market Price Data
The equity shares of your Company are traded in A Group.
The market price data covering the period April 2004 to March 2005 are given below:
(Rs.) (Rs.) (Rs.) (Rs.)
MONTH HIGH DATE LOW DATE HIGH DATE LOW DATE
Apr-04 892.00 23.04.04 638.20 01.04.04 900.00 23.04.04 635.00 01.04.04
May-04 885.00 06.05.04 615.75 17.05.04 889.75 06.05.04 618.40 17.05.04
Jun-04 749.00 16.06.04 553.55 22.06.04 729.90 02.06.04 588.00 24.06.04
Jul-04 649.95 06.07.04 561.00 26.07.04 650.00 08.07.04 580.00 15.07.04
Aug-04 692.00 13.08.04 581.10 24.08.04 693.70 12.08.04 556.20 18.08.04
Sep-04 734.70 30.09.04 584.90 22.09.04 735.55 09.09.04 642.10 09.09.04
Oct-04 743.80 05.10.04 556.50 27.10.04 744.00 05.10.04 554.60 27.10.04
Nov-04 650.00 04.11.04 622.10 09.11.04 672.00 24.11.04 600.00 05.11.04
Dec-04 739.00 17.12.04 536.00 02.12.04 745.00 20.12.04 620.00 02.12.04
Jan-05 695.00 11.01.05 484.00 25.01.05 739.90 04.01.05 482.00 25.01.05
Feb-05 611.00 02.02.05 510.00 14.02.05 607.75 01.02.05 507.55 18.02.05
Mar-05 626.90 08.03.05 540.00 31.03.05 623.95 08.03.05 536.15 31.03.05
BSE NSE
Trading Volumes
The traded volumes of shares at BSE and NSE are:
BSE NSE Total
(Shares) (Shares) (Shares)
Apr-04 818469 1502610 2321079
May-04 424629 1004917 1429546
Jun-04 1076179 2003115 3079294
Jul-04 404704 984732 1389436
Aug-04 630130 939406 1569536
Sep-04 759707 1572810 2332517
Oct-04 909017 1469069 2378086
Nov-04 225214 809544 1034758
Dec-04 654298 1228862 1883160
Jan-05 566109 1000031 1566140
Feb-05 522297 542635 1064932
Mar-05 503382 440812 944194
TOTAL 7494135 13498543 20992678
Month
LUPIN SHARE PRICE (High - Low) BSE
900
800
700
600
500
400
300
200
100
0
R
a
t
e

(
R
s
.)
Low High
Month
A
p
r

-

0
4
M
a
y

-

0
4
J
u
n

-

0
4
J
u
l

-

0
4
A
u
g

-

0
4
S
e
p

-

0
4
O
c
t

-

0
4
N
o
v

-

0
4
D
e
c

-

0
4
J
a
n

-

0
5
F
e
b

-

0
5
M
a
r

-

0
5
900
800
700
600
500
400
300
200
100
A
p
r

-

0
4
M
a
y

-

0
4
J
u
n

-

0
4
J
u
l

-

0
4
A
u
g

-

0
4
S
e
p

-

0
4
O
c
t

-

0
4
N
o
v

-

0
4
D
e
c

-

0
4
J
a
n

-

0
5
F
e
b

-

0
5
M
a
r

-

0
5
Month
LUPIN SHARE PRICE (High - Low) NSE
R
a
t
e

(
R
s
.)
High Low
53 text 53
LUPIN LIMITED
53 53
Performance in Comparison with Broad Based Indices
Lupin share price compared with BSE Sensex and NSE S&P CNX Nifty (Month-end closing)
Share Transfer System
The Share Transfer Committee is constituted for approval of transfer of shares in physical form. Dr. Desh Bandhu Gupta, or in his
absence, Dr. Kamal K. Sharma is the Chairman of the Committee. Mrs. M. D. Gupta and Mr. D. K. Contractor are the other members.
The Share Transfer Committee generally meets once a fortnight. The Committee met 24 times during the year and approved 1013
transfers in respect of 33930 shares.
Valid share transfer documents are processed and duly endorsed share certificates are despatched to the respective transferees
within 25 days from the date of receipt of transfer documents.
Month ( Rs.) Sensex ( Rs.) S&P CNX Nifty
Apr-04 807.30 5655.09 807.15 1796.10
May-04 700.20 4759.62 700.20 1483.60
Jun-04 634.70 4795.46 634.75 1505.60
Jul-04 620.30 5170.32 621.30 1632.30
Aug-04 671.95 5192.08 673.75 1631.75
Sep-04 730.35 5583.61 730.30 1745.50
Oct-04 620.90 5672.27 620.20 1786.90
Nov-04 633.65 6234.29 634.80 1958.80
Dec-04 685.45 6602.69 688.90 2080.50
Jan-05 600.55 6555.94 596.95 2057.60
Feb-05 556.45 6713.86 557.85 2103.25
Mar-05 553.05 6492.82 547.10 2035.65
BSE NSE
LUPIN SHARE PRICE COMPARED TO BSE SENSEX LUPIN SHARE PRICE COMPARED TO NSE S&P CNX NIFTY
A
p
r

-

0
4
M
a
y

-

0
4
J
u
n

-

0
4
J
u
l

-

0
4
A
u
g

-

0
4
S
e
p

-

0
4
O
c
t

-

0
4
N
o
v

-

0
4
D
e
c

-

0
4
J
a
n

-

0
5
F
e
b

-

0
5
M
a
r

-

0
5
0
800
700
600
500
400
300
200
100
R
a
t
e

(
R
s
.)
Month
900 2500
2000
1500
0
N
i
f
t
y
Lupin (Rs.) NSE S&P CNX Nifty
1000
500
A
p
r

-

0
4
M
a
y

-

0
4
J
u
n

-

0
4
J
u
l

-

0
4
A
u
g

-

0
4
S
e
p

-

0
4
O
c
t

-

0
4
N
o
v

-

0
4
D
e
c

-

0
4
J
a
n

-

0
5
F
e
b

-

0
5
M
a
r

-

0
5
0
800
700
600
500
400
300
200
100
R
a
t
e

(
R
s
.)
Month
900 8000
7000
6000
5000
4000
0
S
e
n
s
e
x
Lupin (Rs.) BSE Sensex
3000
2000
1000
ii. Shareholding Pattern
iii. Holding Profile
Shareholding Profile as on March 31, 2005
i. Distribution of Shareholding
HOLDING PROFILE (NO. OF SHARES)
1.79% Physical
98.21% Demat 53.04% Demat 46.96% Physical
HOLDING PROFILE (NO. OF HOLDERS)
Category of shareholders No of shares %
Promoters 21077599 52.51
Mutual Funds 2266094 5.65
Financial Institutions/ Banks/ Insurance Cos. 120663 0.30
Foreign Institutional Investors 6835916 17.03
Foreign Bodies (FIPB route) 5037713 12.55
Non Resident Indians 65460 0.16
Public 4737689 11.80
Total 40141134 100.00
Mode Demat % Physical % Total
Shares 39423225 98.21 717909 1.79 40141134
Shareholders 24873 53.04 22018 46.96 46891
52.51% Promoters
SHAREHOLDING PATTERN
11.80% Public
0.16% Non Resident Indians
12.55% Foreign Bodies
(FIPB) Route
17.03% Foreign
Institutional Investors
0.30% Financial Institutions /
Banks / Insurance Cos.
5.65% Mutual Funds
Shareholding range
(No. of shares)
Numbers % Numbers %
1 500 46157 98.43 2209429 5.50
501 1000 381 0.81 278893 0.69
1001 2000 138 0.30 201544 0.50
2001 3000 60 0.13 151077 0.38
3001 4000 24 0.05 82275 0.21
4001 5000 18 0.04 84864 0.21
5001 10000 30 0.06 214794 0.54
10001 and above 83 0.18 36918258 91.97
Total 46891 100.00 40141134 100.00
Shareholders Shareholding
55 text 55
LUPIN LIMITED
55 55
Dividend Profile
* By Board of Directors
Dematerialisation of Shares and Liquidity
The Companys shares are traded compulsorily in dematerialised form and are available for trading with both the depositories, viz.,
National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL).
The Company has established direct connectivity with NSDL and CDSL and confirms valid demat requests within five working days
of receipt of demat request form, from Depository Participants (DPs).
With a view to expedite the dematerialisation process, the Company continually monitors requests for dematerialisation.
The International Securities Identification Number (ISIN) assigned to Companys equity shares by the depositories is
INE 326 A 01029
During the year under review, the Company has electronically confirmed 4915 demat requests in respect of 1049902 equity
shares.
Employees Stock Option Plan (ESOP)
With the global business environment becoming increasingly competitive, it is necessary for companies to adopt requisite measures
for attracting and retaining qualified, talented and competent personnel, as also to impart a sense of belonging and ownership
amongst the employees. ESOP is one of the best tools to achieve this objective and to reward outstanding performance.
iv. Geographical distribution of shareholders
Date of payment
of dividend
2003 2004 15.07.2004 16.07.2004 65% 29.07.2004 30.07.2004
2002 2003 17.07.2003 18.07.2003 50% 06.08.2003 07.08.2003
2001 2002 (Final) 20.08.2002 21.08.2002 25% 02.09.2002 03.09.2002
2001 2002 (Interim) 07.02.2002 25% 17.01.2002 * 15.02.2002
2000 2001 13.09.2001 14.09.2001 35% 25.09.2001 26.09.2001
Financial year Book closure/Record dates Dividend
declared
Date of
declaration
State No. of shareholders
Andhra Pradesh 2070
Bihar 1228
Delhi 3381
Gujarat 6616
Haryana 738
Karnataka 2218
Kerala 553
Madhya Pradesh 1689
Maharashtra 15084
North Eastern States 369
Orissa 275
Punjab 1027
Rajasthan 2223
Tamilnadu 2092
Uttar Pradesh 3960
West Bengal 3063
Others 305
Total 46891
Outstanding GDRs/ADRs/Warrants/Convertible Instruments
Your Company has not issued any GDR/ADR/Warrants.
The Company has granted 377150 stock options under Lupin Employees Stock Option Plan 2003, which are exercisable from
June 30, 2006 onwards in a phased manner.
Plant Locations
The Companys plants are located at:
(i) T-142, MIDC Industrial Estate,
Tarapur Industrial Area,
Boisar, Dist. Thane,
Maharashtra.
(ii) 198-202, New Industrial Area II,
Mandideep, Dist. Raisen,
Madhya Pradesh - 462 046.
(iii) 211, New Industrial Area II,
Mandideep, Dist. Raisen,
Madhya Pradesh - 462 024.
(iv) 124, GIDC Industrial Estate,
Ankleshwar,
Gujarat - 393 002.
(v) A 28/1, MIDC Area,
Chikalthana, Aurangabad,
Maharashtra - 431 001.
(vi) B-15, Phase I-A,
Verna Industrial Area,
Verna Salcette,
Goa - 403 722
Your Company implemented its maiden ESOP in February 2005, under which, 377150 options were granted to 174 employees at
an exercise price of Rs.567.35. The plan is formulated and implemented according to the SEBI guidelines. The maximum number
of options granted to an employee was 10,800. The vesting of the options has been spread over a maximum period of four and
half years with an exercise period of ten years from the date of grant. The period between grant of options and vesting thereof is
not less than 12 months as per SEBI guidelines. The vested options can be exercised by the grantee by communicating to the
Company in writing his intention to exercise the same and tendering the exercise price thereof.
Unclaimed Dividends Transfer to Investor Education and Protection Fund (IEPF)
Year of dividend Date of dividend Status of unclaimed dividend Entitlement
1993-94 {LCL} 08.12.1994
1993-94 {LLL} 09.08.1994
(Interim)
1993-94 {LLL} 20.12.1994
(Final)
1994-95 01.02.1996
1995-96 01.02.1997
1996-97 02.02.1998
Transferred to Investor Education &
Protection Fund (IEPF)
Dividends for the year 1997-98 onwards shall be transferred to IEPF as and when due. Shareholders are advised to confirm
their records and claim the amount if not encashed earlier.
Amount can be claimed from
Registrar of Companies, Maharashtra,
C.G.O. Bldg, 2nd Floor, C.B.D. Belapur,
Navi Mumbai - 400 614.
Transferred to
General Revenue A/C of
Central Government
Amount cannot be claimed as per the
relevant provisions.
57 text 57
LUPIN LIMITED
57 57
Help Desk at AGM
A help desk for our shareholders shall be provided at the Annual General Meeting. We shall be pleased to be of any assistance
to you.
Address for Correspondence
The shareholders may address their queries / communications to:
Lupin Limited
Registered Office and Investors Services Department,
159, C.S.T. Road, Kalina,
Santacruz (East),
Mumbai - 400 098
India.
Tel: +91 22 5640 2323 Ext: 2402 / 2403
Fax: +91 22 2652 8806.
R & D Centre
Lupin Research Park
Survey Nos. 46A / 47A,
Nande Village, Mulshi Taluka,
Dist. Pune,
Maharashtra - 411 042.
Contact Persons For Enquiries:
Financial matters Mr. Indrajit Banerjee,
email: indrajitbanerjee@lupinpharma.com
Mr. Sunil Makharia,
email: sunilmakharia@lupinpharma.com
Secretarial matters : Mr. Kiran N. Bade,
email: kiranbade@lupinpharma.com
Investors related matters : Mr. Pradeep S. Bhagwat,
email: pradeepbhagwat@lupinpharma.com
:
AUDITORS CERTIFICATE ON CORPORATE GOVERNANCE
To,
The Members of Lupin Limited
We have examined the compliance of conditions of Corporate Governance by Lupin Limited, for the year ended on 31
st
March 2005, as stipulated in clause 49 of the Listing Agreement of the said Company with the stock exchanges.
The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination was
limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of
the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company
has complied in all material respect with the conditions of Corporate Governance as stipulated in the above-mentioned
Listing Agreement.
We state that no investor grievance is pending for a period exceeding one month against the Company, based on the records
maintained by the Investors services department and as certified by the compliance officer of the Company.
We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or
effectiveness with which the management has conducted the affairs of the Company.
For Deloitte Haskins & Sells
P. R. Barpande
Partner
Membership No. 15291
Place : Mumbai
Date : May 20, 2005
59 text 59
LUPIN LIMITED
59 59
AUDITORS REPORT
TO THE MEMBERS OF LUPIN LIMITED
1. We have audited the attached Balance Sheet of Lupin Limited as at 31
st
March 2005, the Profit and Loss Account and also the
Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
3. The financial statements of the Company for the year ended 31
st
March, 2004 were audited by other independent auditors,
whose audit report dated 28
th
April, 2004 was unqualified. We have relied upon the balances of the assets and liabilities as
at 31
st
March, 2004 being the opening balances as at 1
st
April, 2004 for the purposes of the financial statements for the year
ended 31
st
March, 2005.
4. As required by the Companies (Auditors Report) Order, 2003, issued by the Central Government in terms of Section 227 (4A) of the
Companies Act, 1956, we enclose in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said Order.
5. Further to our comments in the Annexure referred to in paragraph 4 above, we report that:
a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the
purposes of our audit;
b) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our
examination of the books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the
books of account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the accounting standards
referred to in sub-section (3C) of Section 211 of the Companies Act, 1956;
e) On the basis of the written representations received from the directors as on 31
st
March 2005 and taken on record by the
Board of Directors, we report that none of the directors is disqualified as on 31
st
March,2005 from being appointed as a
director in terms of clause (g) of sub section (1) of section 274 of the Companies Act, 1956;
f) We draw attention to note no. 9 (a) of Schedule 17 (B) regarding Rs. 0.8 Million increased remuneration paid to the Managing
Director of the Company, which is subject to the approval of shareholders.
g) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with
the significant accounting policies and other notes thereon give the information required by the Companies Act, 1956, in the
manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31
st
March, 2005;
ii) in the case of the Profit and Loss Account, of the profit for the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows for the year ended as on that date.
P. R. Barpande
Partner
Place : Mumbai
Date : May 20, 2005
ANNEXURE TO AUDITORS REPORT
(REFERRED TO IN PARAGRAPH 4 OF OUR REPORT OF EVEN DATE)
(i) In respect of its fixed assets
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed
assets.
(b) The Company has physically verified certain assets during the year in accordance with a programme of verification, which in
our opinion provides for physical verification of the fixed assets at reasonable intervals. According to the information and
explanations given to us, no material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations given to us, the Company has not made any substantial
disposal of fixed assets during the year.
(ii) In respect of its inventories:
(a) As explained to us, inventories were physically verified during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of
inventories followed by the management were reasonable and adequate in relation to the size of the Company and the
nature of its business.
(c) In our opinion and according to the information and explanations given to us, the Company has maintained proper records
of its inventories and no material discrepancies were noticed on physical verification.
(iii) The Company has not granted or taken any loan secured/unsecured to/from companies, firms or parties covered in the register
maintained under section 301 of the Companies Act, 1956. Accordingly, clause (iii) of Paragraph 4 of the Companies (Auditors
Report) Order, 2003 is not applicable to the Company.
(iv) In our opinion, and according to the information and explanations given to us, there is an internal control system commensurate
with the size of the Company and nature of its business for purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal
control system.
(v) In respect of particulars of contracts or arrangements and transactions entered in the register maintained in pursuance of section
301 of the Companies Act, 1956;
(a) To the best of our knowledge and belief and according to the information and explanations given to us, particulars of
contracts or arrangements that needed to be entered into the register have been so entered.
(b) According to the information and explanations given to us, these contracts or arrangements have been made at prices which
are reasonable having regards to the prevailing market prices at the relevant time, where such prices are available.
(vi) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of
Sections 58A, 58AA and other relevant provisions of the Companies Act, 1956, and the rules framed there under with regard to the
deposits accepted from the public.
(vii) In our opinion, the Companys internal audit system is commensurate with the size and the nature of its business.
(viii) We have broadly reviewed the books of account and records maintained by the Company relating to the manufacture of bulk
drugs and formulations, pursuant to the order made by the Central Government for the maintenance of cost records under Section
209(1) (d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed accounts and records have been
made and maintained. We have, however, not made a detailed examination of the records with a view to determining whether
they are accurate or complete.
(ix) According to the information and explanations given to us in respect of statutory and other dues:
(a) The Company has been generally regular in depositing undisputed statutory dues, including Provident Fund, Investor Education
and Protection Fund, Employees State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty,
Cess and any other statutory dues with the appropriate authorities during the year. According to the information and
explanation given to us, no undisputed amounts payable in respect of aforesaid were in arrears as at 31
st
March, 2005 for a
period of more than six months from the date they became payable.
(b) The disputed dues that have not been deposited on account of matters pending before respective authorities are as under:
61 text 61
LUPIN LIMITED
61 61
(x) The Company has no accumulated losses at the end of the financial year and has not incurred any cash losses during the
current financial year and in the immediately preceding financial year.
(xi) Based on our audit procedures and on the basis of information and explanations given by the management, we are of the
opinion that the Company has not defaulted in the repayment of dues to financial institutions, banks and debenture holders.
(xii) According to the information and explanations given to us, the Company has not given any loans and advances on the basis
of security by way of pledge of shares, debentures and other securities and hence the question of maintenance of adequate
records for this purpose does not arise.
(xiii) In our opinion and according to the information and explanations given to us, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause (xiii) of paragraph 4 of the Companies (Auditors Report) Order,
2003 are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing or trading in shares, securities, debentures and other investments. Therefore, the
provisions of clause (xiv) of paragraph 4 of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, the terms and conditions of the guarantees
given by the Company for loans taken by others from banks, are not prima facie prejudicial to the interests of the Company.
(xvi) To best of our knowledge and belief and according to the information and explanations given to us, the term loans taken
by the Company were, prima facie, applied for the purposes for which they were raised.
(xvii) According to information and explanations given to us, and on an overall examination of the Balance Sheet of the
Company, funds raised on short term basis have, prima-facie, not been used for long term investment.
(xviii) The Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under
Section 301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures during the year, hence the question of creation of security or charge in respect of
debentures issued does not arise.
(xx) The Company has not raised any money by way of public issues during the year.
(xxi) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the
Company was noticed or reported during the year.
P. R. Barpande
Partner
Place : Mumbai
Date : May 20, 2005
Amount
(Rs. in Millions)
Income Tax Act, 1961 Income Tax 9.7 Commissioner of Income - Tax (Appeals)
7.7 Commissioner of Central Excise (Appeals),
1.2 Joint Commissioner of Central Excise
(Appeals),
41.1 Commissioner of Sales Tax,
2.9 Sales Tax Tribunal
Sales Tax Central and Various State Sales Tax Acts.
Name of the Statute Nature of the Dues Forum where dispute is pending
Central Excise Act, 1944 Excise Duty and Service Tax
BALANCE SHEET
AS AT 31
ST
MARCH, 2005
As per our attached report of even date
P. R. Barpande Dr. Desh Bandhu Gupta Dr. Kamal K. Sharma Dr. K. U. Mada
Partner Chairman Managing Director Director
D. K. Contractor Sunil Nair
Director Director
Kiran N. Bade
Company Secretary
Place : Mumbai
Dated : May 20, 2005
As at As at
Schedules 31.03.2005 31.03.2004
Rs. in million Rs. in million
I. SOURCES OF FUNDS
Shareholders' Funds
Share Capital 1 401.4 401.4
Reserves and Surplus 2 4603.6 4078.9
5005.0 4480.3
Loan Funds
Secured Loans 3 3806.3 2865.5
Unsecured Loans 4 600.1 905.6
4406.4 3771.1
Deferred Tax Liabilities (Net) 934.4 941.7
[Refer Note No. 5(b) of Schedule 17(B)]
TOTAL 10345.8 9193.1
Fixed Assets 5
Gross Block 7148.5 6404.1
Less: Depreciation 1559.1 1232.0
Net Block 5589.4 5172.1
Capital Work-in-Progress 698.1 171.7
6287.5 5343.8
Investments 6 93.7 89.1
Current Assets, Loans and Advances
Inventories 7 2480.8 2153.0
Sundry Debtors 8 2353.9 2158.3
Cash and Bank Balances 9 177.8 150.4
Loans and Advances 10 1726.2 1999.8
6738.7 6461.5
Less: Current Liabilities and Provisions 11
Current Liabilities 2374.3 1967.3
Provisions 399.8 734.0
2774.1 2701.3
Net Current Assets 3964.6 3760.2
TOTAL 10345.8 9193.1
Significant Accounting Policies and Notes to Accounts 17
63 text 63
LUPIN LIMITED
63 63
FOR THE YEAR ENDED 31
ST
MARCH, 2005
Director Director
Kiran N. Bade
Company Secretary
Place : Mumbai
Schedules Current Year ended Previous Year ended
31.03.2005 31.03.2004
INCOME
Sales (Gross) 12122.7 11679.3
Less: Excise Duty 511.4 486.5
Sales (Net) 11611.3 11192.8
Other Income 12 187.7 455.5
11799.0 11648.3
EXPENDITURE
Cost of Materials 13 5684.4 5281.0
Personnel Expenses 14 1256.8 1048.1
Manufacturing and Other Expenses 15 3399.9 2517.5
Interest and Finance Charges 16 273.1 515.1
Depreciation and Amortisation 332.1 290.4
10946.3 9652.1
Profit before Tax and Extraordinary Items 852.7 1996.2
Provision for Taxation
- Current Tax (including wealth tax) 16.4 454.0
- Deferred Tax (7.3) 46.2
Net Profit before Extraordinary Items 843.6 1496.0
Extraordinary Items [net of tax of Rs. nil (previous year Rs. 198.0 million)] - 508.9
Net Profit after Tax and Extraordinary Items 843.6 987.1
Less : Income tax - earlier years 20.7 36.2
Add : Surplus brought forward from previous year 1601.3 859.7
Add : Debenture Redemption Reserve written back 35.0 350.0
Amount Available for Appropriation 2459.2 2160.6
APPROPRIATIONS:
- Transfer to Debenture Redemption Reserve - 15.0
- Transfer to General Reserve 750.0 250.0
- Proposed Dividend on Equity Shares 260.9 260.9
- Corporate Tax on Dividend 37.3 33.4
Balance Carried to Balance Sheet 1411.0 1601.3
2459.2 2160.6
Earnings Per Share (in Rs.) before extraordinary items [Refer Note No.12 of Schedule 17(B)]
- Basic 20.50 36.37
- Diluted 20.48 36.37
Earnings Per Share (in Rs.) after extraordinary items [Refer Note No. 12 of Schedule 17(B)]
- Basic 20.50 23.69
- Diluted 20.48 23.69
Face Value of Equity Shares (in Rs.) 10.00 10.00
CASH FLOW STATEMENT
ST
MARCH, 2005
For the Year
Ended
For the Year
Ended
31.03.2005 31.03.2004
A. Cash Flow from Operating Activities
Net Profit before Tax and Extraordinary Items 852.7 1,996.2
Adjustments for:
Depreciation and amortisation 332.1 290.4
Loss on sale/discard of Fixed Assets (net) 6.7 6.5
Interest and Finance Charges 273.1 515.1
Interest on Long Term Investments- Non Trade (1.4) (2.0)
Dividend on Long Term Investment- Trade
[31.03.2005 Rs. 6,615/-; 31.03.2004 Rs. 21,615/-]
Provision for Diminution in value of Long Term Investments written back (net) - (11.2)
Provision for Doubtful debts 15.5 -
Loss on repurchase / cancellation of debentures - 37.1
Operating Profit before Working Capital Changes 1,478.7 2,832.1
Adjustments for:
Trade and other Receivables (184.2) 2,036.2
Inventories (327.8) (734.4)
Trade Payables 417.2 248.5
Cash Generated from Operations. 1,383.9 4,382.4
Interest paid (net) (282.3) (560.4)
Direct Taxes (Paid) / Refund (net) (129.4) 7.9
Net Cash generated from Operating Activities 972.2 3,829.9
B. Cash Flow from Investing Activities
Additions to Fixed Assets / Capital work-in-progress (1,285.2) (833.8)
Sale of Fixed Assets 2.7 1.5
Purchase of Investments (4.6) (38.4)
Sale of Investments 0.1 54.1
Interest on Long Term Investments- Non Trade 1.4 2.0
[31.03.2005 Rs. 6,615/-; 31.03.2004 Rs. 21,615/-]
Net Cash used in Investing Activities (1,285.6) (814.6)
C. Cash Flow from Financing Activities
Proceeds from / repayment of Borrowings 635.3 (2,738.1)
Loss on repurchase / cancellation of debentures - (37.1)
Premium on prepayments of Term Loans - (6.4)
Dividend Paid (260.4) (205.5)
Corporate Dividend Tax paid (34.1) (25.7)
Net cash Generated from/(used in) Financing Activities 340.8 (3,012.8)
Net increase in cash and cash equivalents 27.4 2.5
Cash and Cash equivalents as at the beginning of the year 150.4 147.9
Cash and Cash equivalents as at the end of the year 177.8 150.4
65 text 65
LUPIN LIMITED
65 65
CASH FLOW STATEMENT (CONTD.)
ST
MARCH, 2005
Notes :
1 Cash and cash equivalents include cash and bank balances in current accounts and deposits (refer Schedule 9 of the
Balance Sheet).
2 Additions to fixed assets (including movements in Capital work-in-progress) are considered as a part of investing activities.
3 Interest income on deposits, etc. is classified as cash flow from operating activities.
4 The above Cash Flow Statement has been prepared under the Indirect Method as set out in the Accouting Standard (AS-3),
Cash Flow Statement issued by the Institute of Chartered Accountants of India.
5 The previous years figures have been regrouped wherever necessary. The effect of extraordinary items in the previous year has
been given in the relevant heads.
Director Director
Kiran N. Bade
Company Secretary
Place : Mumbai
SCHEDULE 1 - SHARE CAPITAL
Note :
Out of the above Equity Shares, 37,311,048 Equity Shares were allotted as fully
paid-up without payment being received in cash, pursuant to the scheme of
Amalgamation with erstwhile Lupin Laboratories Limited.
SCHEDULE 2 - RESERVES AND SURPLUS
SCHEDULES FORMING PART OF THE BALANCE SHEET
As at As at
31.03.2005 31.03.2004
Authorised :
50,000,000 Equity Shares of Rs 10/- each 500.0 500.0
1,500,000 Redeemable Cumulative Preference Shares of Rs 100/- each 150.0 150.0
650.0 650.0
Issued, Subscribed and Paid-up
40,141,134 Equity Shares of Rs 10/- each fully paid up 401.4 401.4
TOTAL 401.4 401.4
Capital Reserve
- Investment Subsidies from Central Government
Balance as per last Balance Sheet 1.0 1.0
- Investment Subsidies from State Government
- On restructuring of capital of the Company under the Scheme
of Amalgamation
263.9 263.9
Capital Redemption Reserve
Securities Premium Account
General Reserve
Add: Transferred from Profit and Loss Account 750.0 250.0
2000.0 1250.0
Debenture Redemption Reserve
Add: Transferred from Profit and Loss Account - 15.0
Less : Transferred to Profit and Loss Account 35.0 350.0
30.0 65.0
Amalgamation Reserve
Surplus in Profit and Loss Account 1411.0 1601.3
TOTAL 4603.6 4078.9
67 text 67
LUPIN LIMITED
67 67
SCHEDULE 3 - SECURED LOANS
Notes :
1 a) Debentures are secured / to be secured by first legal / equitable mortgage of immovable assets and hypothecation of movable
assets of the Company both present and future situated at (a) Aurangabad, Pune and Tarapur in State of Maharashtra, (b)
Ankleshwar in State of Gujarat, (c) Mandideep, District Raisen in State of Madhya Pradesh and (d) Verna Industrial area in Goa. The
said charge is ranking pari passu between the lenders including for term loan (Refer Note 2 below) and subject to prior charges
created / to be created in favour of Companys Bankers on specific items of movables to secure working capital requirements (Refer
note 3 below).
b) H series Debentures are redeemable in 8 equal half yearly instalments starting from 1st September 2001, M series Debentures are
redeemable in 3 equal annual instalments commencing from 28th October, 2002, O series and P series Debentures are redeemable
in 8 euqal half yearly instalments starting from 30th Septemeber, 2001 and R series Debentures are redeemable in 3 equal
annual instalments starting from 17th August, 2005. The Debentures under H, M, O and P series are redeemed during the year
on payment of last half yearly / annual instalments in respect of which the Company has initiated the steps for satisfaction of
charges created in favour of Debenture Trustees of those series.
2 Term loans from Financial Institutions / Banks are secured / to be secured by first charge ranking pari passu with trustees for debenture
holders refered to in note 1 (a) above and is further secured by way of personal gurantees of some of the Directors of the Company for
amount aggregating to Rs.156.4 million (previous year Rs.274.0 million).
3 Loans from Banks in cash credit, packing credit and post shipment credit facilities are secured by hypothecation of inventories and book
debts and a second charge on immovable properties referred to in note 1 (a) above.
4 Packing credit and post shipment credit facilities include foreign currency loans of Rs.2460.5 million (previous year Rs.1752.6 million).
5 Debenture of Rs. 40.0 million (previous year Rs. 134.9 million) and Term Loans of Rs. 224.1 million (previous year Rs. 197.8 million) are
repayable within one year.
As at As at
31.03.2005 31.03.2004
Notes Rs. in million Rs. in million
1. Debentures 1
Nil ( 1.5 million ) 14.5% 'H' Series Non-Convertible Redeemable
Debentures of Rs.100/- each fully paid up. - 25.0
Nil ( 2.3 million ) 14.5% 'M' Series Non-Convertible Redeemable
Nil ( 2 million ) 14.5% 'O' Series Non-Convertible Redeemable
Debentures of Rs. 100/- each fully paid up. - 50.0
Nil (1 million ) 14.5% 'P' Series Non-Convertible Redeemable
1.2 million 8% 'R' Series Non-Convertible
Redeemable Debentures of Rs.100/- each fully paid up. 120.0 120.0
120.0 254.9
2. Term Loans 2
( i ) From financial institutions
- Rupee Loans 398.4 590.0
- Foreign Currency Loans 104.9 131.1
( ii ) From Banks
- Foreign Currency Loans 437.5 -
940.8 721.1
3. Cash Credit, Packing Credit and Post Shipment
Credit facilities from banks 3 2745.5 1889.5
3806.3 2865.5 TOTAL
SCHEDULE 4 - UNSECURED LOANS
As at As at
31.03.2005 31.03.2004
Fixed Deposits 385.3 734.8
[Due to Directors Rs.0.1 million (previous year Rs.0.1 million)]
Other Loans :
a) Sales Tax Deferment Loan - Government of Maharashtra 53.9 47.2
b) Loans from Council for Scientific and Industrial Research 160.9 123.6
TOTAL 600.1 905.6
Notes :
1. Fixed Deposits include deposits guaranteed by some of the Directors 37.7 62.6
2. Amount due within a year
i) Fixed Deposits 285.7 384.4
ii) Loans from Council for Scientific and Industrial Research 15.4 -
6
9
t
e
x
t
6
9
L
U
P
I
N

L
I
M
I
T
E
D
6
9
6
9
SCHEDULE 5 - FIXED ASSETS
* Amounts written off in respect of leasehold land for the period of lease which has expired.
Notes :
1. Cost of Buildings includes cost of shares in co-operative societies of Rs.1,000 (previous year Rs.1,000).
2. Capital work-in-progress includes capital advances paid, machinery under installation / in transit, construction and erection materials (including those lying with contractors) and pre-operative expenses [Refer note no.4 of Schedule
17(B)].
3. Depreciation for the current year includes Rs.0.5 million pertaining to earlier years (previous year Rs.0.3 million).
4. Additions to Fixed Assets and Capital work-in-progress are after adjusting Rs. 0.3 million on account of exchange differences. The exchange difference on Indigenous Plant and Machinery is credited to Profit and Loss Account
aggregating to Rs. 20.1 million in view of the requirements of Accounting Standard (AS-11) The effects of changes in foreign exchange rates (Revised) issued by The Institute of Chartered Accountants of India, including clarification in
this respect, which hitherto was capitalised in the earlier years. Consequently there is a credit of Rs.20.1 million to the Profit and Loss Account and the profit for the year is higher by the like amount.
5. Intangible Assets (Computer Software) is regrouped from Plant, Machinery and Equipments considering the requirements of Accounting Standard (AS-26) Intangible Assets.
(Rs. in million)
Particulars As At As At Up To For The Up To As At As At
1st April Additions Deductions 31st March 31st March Year Deductions 31st March 31st March 31st March
2004 2005 2004 2005 2005 2004
Free Hold Land 29.7 - - 29.7 - - - - 29.7 29.7
Leasehold Land 112.7 - - 112.7 6.0 1.9 - 7.9* 104.8 106.7
Buildings 1596.0 125.7 0.6 1721.1 183.6 51.0 0.1 234.5 1486.6 1412.4
Plant , Machinery and
Equipments 4487.0 617.1 10.2 5093.9 1004.4 258.5 3.2 1259.7 3834.2 3482.6
Furniture and Fixtures 108.0 14.4 2.9 119.5 26.0 10.1 1.5 34.6 84.9 82.0
Vehicles 12.6 1.6 0.7 13.5 2.4 1.2 0.2 3.4 10.1 10.2
Intangible Assets 58.1 - - 58.1 9.6 9.4 - 19.0 39.1 48.5
(Computer Software)
TOTAL 6404.1 758.8 14.4 7148.5 1232.0 332.1 5.0 1559.1 5589.4 5172.1
Previous Year 5809.0 755.9 160.8 6404.1 952.5 290.4 11.0 1232.0 5172.1
Capital Work-In-Progress 698.1 171.7
TOTAL 6287.5 5343.8
Gross Block Depreciation And Amortisation Net Block
SCHEDULE 6 - INVESTMENTS
As at
Number Face 31.03.2004
Value Rs. in million Rs. in millionRs. in million
Long Term Investments
(At cost / carrying amount unless otherwise stated)
1 In Equity Shares
a) In Subsidiary Companies Unquoted (Trade)
Lupin Chemicals (Thailand) Ltd. 420,000 100 48.3 48.3
(420,000) Bahts
[Refer note no.3 of schedule 17(B)]
Lupin Laboratories South Africa (Pty) Ltd. 6,000 1
(31.03.2005 - Rs.40,020/-, 31.03.2004 - Rs. 40,020/-) (6,000) S.A. Rand
Lupin Pharmaceuticals Inc., USA 300,000 1 13.8 13.8
(300,000) USD
Lupin Hong Kong Ltd. 800,000 1 4.7 0.6
(Including 1 share held by the nominee) (100,000) HKD
Lupin Herbal Ltd. 50,000 Rs.10/- 0.5 -
(Including 6 shares held by the nominees) (Nil)
67.3 62.7
Less : Provision for diminution in value of investments
(31.03.2005 - Rs.40,020/-, 31.03.2004 - Rs. 40,020/-)
67.3 62.7
b) Others Unquoted (Trade)
Biotech Consortium India Ltd. 50,000 Rs.10/- 0.5 0.5
(50,000)
Bharuch Enviro Infrastructure Ltd. 4,410 Rs.10/-
(31.03.2005 - Rs. 44,100/-; 31.03.2004 - Rs. 44,100/-) (4,410)
Bharuch Eco-Acqua Infrastructure Ltd. 479,250 Rs.10/- 4.8 4.8
(479,250)
Dombivali Nagri Sahakari Bank Ltd. Nil Rs.50/- -
(31.03.2004 - Rs. 50,000/-) (1,000)
5.3 5.3
c) Quoted (Non Trade)
Gran Heal Pharma Ltd 575,000 Rs.10/- 5.7 5.7
(575000)
Less : Provision for diminution in value of investments 5.7 5.7
- -
2 In Bonds
Quoted (Non-Trade)
6.75% Tax Free US64 Bonds 211,400 Rs.100/- 21.1 21.1
(211,400)
93.7 89.1
Notes :-
1) a) Quoted Investments : Aggregate Cost / Carrying Value 21.1 21.1
: Aggregate Market / Repurchase Value of Bonds 22.1 22.9
b) Unquoted Investments : Aggregate Cost / Carrying Value 72.6 68.0
2) All the Investments in shares / bonds are fully paid up.
TOTAL
As at
31.03.2005
71 text 71
LUPIN LIMITED
71 71
SCHEDULE 7 - INVENTORIES
SCHEDULE 8 - SUNDRY DEBTORS
(Unsecured )
Note :
Sundry debtors include debts due from subsidiary companies Rs.159.1 million
(previous year Rs.364.7 million).
SCHEDULE 9 - CASH AND BANK BALANCES
As at As at
31.03.2005 31.03.2004
Stock-in-trade
- Raw Materials 813.7 580.6
158.3 97.4
- Work-in-Process 527.4 709.3
- Finished Goods (including Traded Goods) 891.4 690.4
Consumable Stores, Spares and Fuel 90.0 75.3
TOTAL 2480.8 2153.0
- Packing Materials
Debts outstanding for a period exceeding six months
- considered good 104.1 105.3
- considered doubtful 15.5 -
119.6 105.3
Other Debts considered good 2249.8 2053.0
2369.4 2158.3
Less: Provision for doubtful debts 15.5 -
TOTAL 2353.9 2158.3
Cash in hand [including Cheques on hand of Rs.38.2 million 40.0 4.6
(previous year Rs.0.1 million)]
Bank Balances :
- With Scheduled Banks
In Current Accounts (including remittances in transit) 87.4 38.3
In Exchange Earners Foreign Currency Account 0.3 0.3
In Deposit Accounts [including Margin Deposits Rs.44.5 million 44.5 102.1
- With Others
In Current Accounts 5.6 5.1
(See Note below)
TOTAL 177.8 150.4
SCHEDULE 9 - CASH AND BANK BALANCES (CONTD.)
SCHEDULE 10 - LOANS AND ADVANCES
(Considered good unless otherwise stated)
Note: Loans and advances include Rs.1.2 million (previous year Rs. nil)
being advance towards investments.
SCHEDULE 11 - CURRENT LIABILITIES AND PROVISIONS
As at As at
31.03.2005 31.03.2004
Unsecured
Advances recoverable in cash or in kind or for value to be received 880.0 917.8
Deposits 745.8 734.6
Balances with Customs and Excise Authorities 0.7 1.0
Advance payment of Income Tax 99.7 346.4
TOTAL 1726.2 1999.8
Current Liabilities
Acceptances 895.0 694.6
Sundry Creditors :
i) Total outstanding dues to small scale industrial undertakings 58.3 35.8
1344.7 1151.4
Interest Accrued but not due on loans 36.6 39.0
Unpaid Dividend * 8.8 8.3
Unpaid Matured Deposits * 15.5 14.6
Unpaid Matured Debentures * 4.6 6.2
Unpaid Interest Warrants * 10.8 17.4
* There are no amounts due and outstanding to be credited to
Investor Education and Protection Fund.
TOTAL 2374.3 1967.3
ii) Total outstanding dues to creditors other than small scale industrial undertakings
Note :
Bank Balances include balances with non scheduled banks as under : Rs. in million
Name of the Bank Country As at As at
31.03.2005 31.03.2004 31.03.2005 31.03.2004
Bank of Foreign Trade - Vneshtorg Bank - US$ A/c Russia 0.4 0.1 0.6 0.3
Bank of Foreign Trade - Vneshtorg Bank - Rouble A/c Russia 0.1 0.1 0.2 0.3
Texaka Bank - Tenge A/c [31.03.2004 - Rs. 865] Kazhakistan 0.1 0.2 0.3
Citi Bank N.A. USA - 4.8 4.8 5.2
Ukreximbank [31.03.2004 Rs. 16,147] Ukraine 0.2 0.9 0.6
Citi Bank N.A. UK 4.7 0.1 8.3 4.1
National Bank - Uzbekistan US$ A/c Uzbekistan 0.1 - 0.1 -
Maximum balance during
the year ended
Note : Sundry Creditors include amount due to subsidiary companies
Rs.158.5 million (previous year Rs.6.9 million).
Provisions
For Gratuity 22.6 9.5
For Leave encashment 41.2 33.3
For Taxation (including wealth tax) 16.4 355.4
For Proposed Dividend on Equity Shares 260.9 260.9
For Tax on Dividend 36.6 33.4
Other Provisions [refer note no.16 of schedule 17(B)] 22.1 41.5
399.8 734.0
TOTAL 2774.1 2701.3
73 text 73
LUPIN LIMITED
73 73
SCHEDULE 12 - OTHER INCOME
SCHEDULES FORMING PART OF PROFIT AND LOSS ACCOUNT
SCHEDULE 13 - COST OF MATERIALS
SCHEDULE 14 - PERSONNEL EXPENSES
Raw Materials Consumed 4,152.7 4565.1
Packing Materials Consumed 358.6 303.8
Purchase of Traded Goods 1,192.2 846.2
Opening Stock :
Finished Goods (including Traded Goods) 690.4 549.7
Work - in - Process 709.3 415.9
1399.7 965.6
Closing Stock :
Finished Goods (including Traded Goods) 891.4 690.4
Work - in - Process 527.4 709.3
1418.8 1399.7
Increase in Stock of Finished Goods (including Traded Goods) and Work-in-Process (19.1) (434.1)
TOTAL 5684.4 5281.0
Salaries, Wages and Bonus 1035.8 871.5
Contribution to Provident , Gratuity and Other Funds 124.5 97.9
Welfare Expenses 96.5 78.7
TOTAL 1256.8 1048.1
Year Ended Year Ended
31.03.2005 31.03.2004
Export Benefits / Incentives 52.1 293.7
Income from Research Services 11.0 -
Dividend on Long Term Investments - Trade
[31.03.2005 - Rs.6,615 ; 31.03.2004 - Rs. 21,615]
Interest on Long Term Investments - Non Trade 1.4 2.0
Interest on Deposits with Banks 3.9 8.6
[Tax Deducted at Source Rs.0.8 million (previous year - Rs. 1.9 million)]
Interest on Inter Corporate Deposits - 9.9
[Tax Deducted at Source Rs. nil (previous year - Rs. 2.0 million)]
Other Interest (net) 23.4 11.1
[Tax Deducted at Source Rs.0.1 million (previous year - Rs. 0.1 million)]
Insurance Claims 2.0 3.5
Exchange Rate Difference (net) 14.6 78.5
Sundry Credit Balances written back (net) - 10.4
Provision for diminution in value of Long Term Investments - written back (net) - 11.2
Miscellaneous Income 79.3 26.6
[including share in income from a customer Rs.59.7 million
(previous year Rs. nil)]
[Tax Deducted at Source Rs.1.5 million (previous year Rs. nil)]
TOTAL 187.7 455.5
SCHEDULE 15 - MANUFACTURING AND OTHER EXPENSES
SCHEDULE 16 - INTEREST AND FINANCE CHARGES
SCHEDULES FORMING PART OF PROFIT AND LOSS ACCOUNT
Interest on Debentures 35.6 113.1
Interest on Fixed Loans 114.2 257.9
Others 123.3 144.1
TOTAL 273.1 515.1
31.03.2005 31.03.2004
Processing Charges 123.6 46.8
Consumable Stores and Spares 311.7 216.8
Repairs and Maintenance :
- Buildings 40.2 30.0
- Plant and Machinery 73.1 69.6
- Others 50.8 56.0
Rent 22.9 14.8
Rates and Taxes 33.5 27.3
Insurance 48.2 42.9
Power and Fuel 610.7 552.7
Excise Duty (net) 53.7 69.0
Selling and Promotion Expenses 701.2 374.8
Commission, Brokerage and Discount 230.5 260.8
[Including cash discount of Rs.2.7 million (previous year Rs.2.8 million)]
Freight and Forwarding 144.5 115.2
Lease Rent and Hire Charges 38.6 33.1
Postage and Telephone Expenses 59.9 41.3
Travelling and Conveyance 223.7 157.0
Legal and Professional Charges 95.5 94.5
Donations 30.9 23.0
[Includes contributions to Lupin Human Welfare and Research Foundation
aggregating to Rs.11.8 million (previous year Rs.11.8 million)]
Clinical and Analytical Charges 208.8 46.0
Loss on Repurchase / Cancellation of Debentures - 37.1
Loss on Sale of Investments - 0.4
Loss on Sale / Discard of Fixed Assets (net) 6.7 6.5
Bad Debts / Advances written off 25.6 -
Provision for Doubtful Debts 15.5 -
Directors Sitting Fees 0.9 0.8
Prior Period Adjustments (net) 11.1 10.9
Miscellaneous Expenses 238.1 190.2
(includes printing and stationery, contract labour charges,
books and periodicals, audit fees, etc.)
TOTAL 3399.9 2517.5
75 text 75
LUPIN LIMITED
75 75
SCHEDULES FORMING PART OF THE ACCOUNTS
SCHEDULE 17 - SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF THE BALANCE
SHEET AND PROFIT AND LOSS ACCOUNT
A) SI GNI FI CANT ACCOUNTI NG POLI CI ES
a) Basis of Preparation of Financial Statements
The financial statements are prepared as per historical cost convention and in accordance with the generally accepted
accounting principles in India, the provisions of the Companies Act, 1956 and the applicable accounting standards issued by
the Institute of Chartered Accountants of India.
b) Use of Estimates
The preparation of financial statements requires estimates and assumptions that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting
period. Differences between the actual results and the estimates are recognised in the period in which the same are
known / materialised.
c) Fixed Assets
Fixed Assets are stated at cost, net of modvat / cenvat, less accumulated depreciation and accumulated impairment losses,
if any. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange
contracts and adjustment arising from exchange rate variations attributable to the fixed assets acquired from a country
outside India, are capitalised.
d) Intangible Assets
Intangible assets are recognised only if it is probable that the future economic benefits that are attributable to the assets will
flow to the enterprise and the cost of the assets can be measured reliably. The intangible assets are recorded at cost and are
carried at cost less accumulated amortisation and accumulated impairment losses, if any.
e) Foreign Currency Transactions / Translation
Transactions in foreign currency are recorded at the original rate of exchange in force at the time transactions are
effected. Exchange differences arising on repayment of foreign currency liabilities incurred for the purpose of acquiring
fixed assets from a country outside India, are adjusted in the carrying amount of the respective fixed assets. Exchange
differences arising on settlement of other transactions are recognized in the Profit and Loss Account.
Monetary items (other than those related to acquisition of imported fixed assets) denominated in foreign currency and
not covered by forward contracts are restated using the exchange rate prevailing at the date of the Balance Sheet and
the resulting net exchange difference is recognized in the Profit and Loss Account. The exchange gain/loss arising on
restatement of foreign currency liability relating to fixed assets acquired from a country outside India is adjusted in the
value of the related fixed assets.
Monetary items covered by forward contracts are translated at the rate on the date of transaction. Premium/discount arising
on such forward exchange contract is amortised as income/expense over the life of the contract. Any profit/loss arising on
cancellation of such forward exchange contract is recognised as income or expense.
Foreign offices/branches :
In respect of the foreign offices/branches, which are integral foreign operations, all revenues and expenses (except
depreciation) during the year are reported at average rate. Monetary assets and liabilities are restated at the year-end
exchange rate. Non-monetary assets and liabilities are stated at the rate prevailing on the date of the transaction.
Balance in head office account whether debit or credit is translated at the amount of the balance in the foreign office
in the books of the head office. Net gain/loss on foreign currency translation is recognized in the Profit and Loss
Account.
f) Investments
Long term investments are stated at cost of acquisition. Investments in foreign currency are stated at cost by converting at
exchange rate prevailing at the time of acquisition. Provision for diminution in the value of long term investments is made
only if such decline is other than temporary.
g) Inventories
Stock-in-trade is valued at lower of cost and net realisable value. Stock of Consumable stores, spares and furnace oil are
valued at cost.
Cost is computed based on moving weighted average in respect of all procured materials and comprises of materials and
appropriate share of utilities and other overheads in respect of work-in-process and finished goods. Cost also includes all
charges incurred for bringing the inventories to their present location and condition.
h) Revenue recognition
i) Revenue from sale of goods is recognised when the significant risks and rewards in respect of ownership of
products are transferred by the Company.
ii) Revenue from product sales is stated net of returns, sales tax and applicable trade discounts and allowances.
iii) Income from research services are recognised as revenue when earned in accordance with the terms of the relevant
agreements.
iv) Insurance or other claims, interest, etc. is recognised only when it is reasonably certain that the ultimate collection will be
made.
i) Export Benefits
Export benefits available under prevalent schemes are accrued in the year in which the goods are exported and are accounted
to the extent considered receivable.
j) Excise Duty
Excise Duty is accounted on the basis of payments made in respect of goods cleared and provision is made for goods lying
in bonded warehouses.
k) Depreciation and amortisation
Depreciation on fixed assets is provided on straight line basis in the manner and at the rates prescribed in Schedule XIV to the
Companies Act, 1956, except for the following fixed assets which are depreciated / amortised over their useful life as determined
by the Management on the basis of technical evaluation, etc.
l) Employee Retirement Benefits
i) Companys contribution to Provident Fund, Superannuation Fund and other Funds is charged to the Profit and Loss
Account.
ii) The amount of Gratuity liability as ascertained on the basis of actuarial valuation and funded through a scheme (Group
Gratuity) administered by Life Insurance Corporation of India, is charged to the Profit and Loss Account.
iii) Provision is made towards liability for leave encashment as ascertained on the basis of actuarial valuation.
m) Taxes on Income
Income Taxes are accounted for in accordance with Accounting Standard 22 on Accounting for Taxes on Income, (AS 22)
issued by The Institute of Chartered Accountants of India. Tax expense comprises both current tax and deferred tax. Current tax
is measured at the amount expected to be paid or recovered from the tax authorities using the applicable tax rates.
Deferred tax assets and liabilities are recognised for future tax consequence attributable to timing difference between
taxable income and accounting income that are measured at relevant enacted tax rates. At each Balance Sheet date the
Company reassesses unrealised deferred tax assets, to the extent they become reasonably certain or virtually certain of
realisation, as the case may be.
n) Operating Leases
Assets taken on lease under which all risks and rewards of ownership are effectively retained by the lessor are classified as
operating lease. Lease payments under operating leases are recognised as expenses on accrual basis in accordance with the
respective lease agreements.
SHEET AND PROFIT AND LOSS ACCOUNT (CONTD. )
Assets Estimated useful life
Captive Power Plant at Tarapur 15 years
Certain assets provided to employees 3 years
Leasehold land and building Over the period of lease
Intangible Assets (computer software) 6 years
77 text 77
LUPIN LIMITED
77 77
o) Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as
a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities, are not recognised
but are disclosed in the Notes. Contingent Assets are neither recognised nor disclosed in the financial statements.
p) Borrowing Costs
Borrowing cost attributable to the acquisition or construction of qualifying assets is capitalised as part of the cost of such
assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.
q) Impairment of fixed assets
At the end of each year, the Company determines whether a provision should be made for impairment loss on fixed
assets by considering the indications that an impairment loss may have occurred in accordance with Accounting
Standard (AS-28) Impairment of Assets issued by the Institute of Chartered Accountants of India. An impairment loss is
charged to the Profit and Loss Account in the year in which, an asset is identified as impaired, when the carrying value
of the asset exceeds its recoverable value. The impairment loss recognised in prior accounting periods is reversed if
there has been a change in the estimate of recoverable amount.
B) NOTES TO ACCOUNTS
1. Estimated amount of contracts remaining to be executed on capital account and not provided for, net of advances, Rs. 167.5
Million (previous year Rs.219.3 Million).
2. Contingent Liabilities: -
Rs. in million
As at 31
st
March 2005
As at 31
st
March 2004
a) Income tax demands in respect of earlier years under dispute, pending in appeals before higher
authorities.
302.1 338.5
Amount paid there against and included under Schedule 10 (Rs.292.4 million)
Previous year (Rs.291.5 million)
b) Excise duty, Sales tax disputed in appeals and pending decisions before higher authorities. 62.5 57.5
c) Custom duty in respect of future export obligation in accordance with Exim Policy. 8.3 8.4
d) Claims against the Company not acknowledged as debts.
e) Guarantees given by the Company on behalf of an Associate . - 97.5
f) Standby letter of credit issued by the Companys bankers in connection with the credit facilities of
a wholly owned Subsidiary Company.
87.5 -
195.2 376.9
3 . The Company has equity investments aggregating to Rs.48.3 million, in Lupin Chemicals (Thailand) Ltd. (a subsidiary
company, in which the Company holds 60% stake). Further, the Company has trade receivables aggregating to Rs. 22.1
million from the said subsidiary, as at the year-end. The said Company has accumulated losses at the year-end and net
worth of that Company is substantially eroded, though positive. However it has made profits consistently in the past few
years and on that basis, and also considering the future business plans of the subsidiary company, which are expected
to result in increased turnover and consequent improvement in the profitability and net worth and the fact that this
investment is held as strategic long term investment, in the opinion of the management, the diminution in the value
of the aforesaid investments is considered temporary and the debts outstanding are considered as good of recovery.
Accordingly, no provision is considered necessary at this stage in this respect.-offs taken on the following:
4. Pre-operative expenses, included in Capital Work-in-Progress, represent the expenses incurred for projects, which are yet to
be commissioned. Such pre-operative expenses mainly pertain to plants/building under erection/construction at units/
projects located at Tarapur, Ankleshwar and Mandideep and to be capitalised on completion of projects at the respective
locations. The details of these expenses are:
5. Current tax provision:
a) Provision for income tax has been made on the basis of Minimum Alternate Tax in accordance with Section 115 JB of
the Income Tax Act, 1961 considering the relief/deductions available in accordance with the said Act.
b) The deferred tax assets / (liabilities) arising out of significant timing differences are as under :
6. Segment Reporting
i) Primary business segment:
The Company is exclusively in the Pharmaceutical business segment and has only one reportable segment.
ii) Secondary business segment:
The Company has presented data based on its Consolidated financial statements, which forms part of this Annual
Report.
(Rs. in million)
Particulars 31.03.2005 31.03.2004
Deferred Tax Liability :
Depreciation (956.3) (953.3)
Deferred Tax Assets :
Provision for doubtful debts 5.2 -
Provision for leave encashment 7.8 -
Other timing differences 8.9 11.6
Net Deferred Tax Liability (934.4) (941.7)
(Rs. in million)
2004-2005 2003-2004
Opening balance 5.7 14.5
Incurred in the current year
Salaries, allowances and contribution to funds 8.8 10.0
Professional fees 0.6 4.7
Travelling expenses 2.0 2.9
Interest on project related fixed loans 9.1 5.7
Others 5.8 2.9
Total 32.0 40.7
Less : Capitalised during the year 13.3 21.5
Amount written off (Project abandoned) - 13.5
Closing balance 18.7 5.7
79 text 79
LUPIN LIMITED
79 79
7. Additional information Pursuant to the Provisions of Paragraphs 3, 4C, and 4D of part II of Schedule VI to the Companies Act,
1956.
a) Consumption of Raw Materials:
b) Value of Imported and Indigenous consumption:
i) Consumption of Raw Material :
ii) Consumption of Stores and Spares :
c) CIF Value of Imports:
d) Expenditure in foreign currencies on account of :
2004-2005 2003-2004
i) Interest (net of tax) 27.5 23.4
ii) Travelling 20.7 20.6
iii) Commission 74.8 102.4
iv) Selling and Promotion expenses 358.9 149.7
v) Clinical and Analytical charges 94.3 9.3
vi) Others 128.9 124.3
705.1 429.7
Item Unit Quantity Rs. in million Quantity Rs. in million
DL2 (RECEMIC) M.T. 1532.7 577.6 1316.8 440.7
PEN G M.T. 3303.7 1072.0 4145.6 1899.2
Cefuroxime Acid M.T. 12.4 161.7 16.4 384.2
Others 2341.4 1841.0
4152.7 4565.1
2004-2005 2003 2004
% Rs. in million % Rs. in million
Imported 52.9 2196.8 60.9 2781.2
Indigenous 47.1 1955.9 39.1 1783.9
100.0 4152.7 100.0 4565.1
2003 2004 2004-2005
% Rs. in million % Rs. in million
Imported 4.4 13.7 9.4 20.4
Indigenous 95.6 298.0 90.6 196.4
100.0 311.7 100.0 216.8
2004-2005 2003 2004
2004-2005 2003-2004
i) Capital goods 258.2 62.7
ii) Raw Materials
(including high seas purchases)
iii) Packing Materials 67.9 38.4
iv) Purchase of Traded Goods 0.7 12.3
v) Consumable, stores and spares 17.6 3.0
2729.4 2746.6
2385.0 2630.2
e) Earnings in foreign exchange on account of: -
8. Remittance in foreign currency on account of dividend:
The Company has paid dividend in respect of shares held by Non-Resident Shareholders on repatriation basis. This inter-alia
includes portfolio investment and direct investment, where the amount is also credited to Non Resident External A/c (NRE A/c).
The exact amount of dividend remitted in foreign currency cannot be ascertained. The total amount remittable in this respect is
given below:
9. a) Managerial Remuneration:
Note :
i. Above amount does not include remuneration paid by a subsidiary Company to a director aggregating to Rs.11.7 million
(previous year Rs.5.5 million).
ii. Salary and allowances includes Rs.0.8 million towards the increased remuneration (including Companys contribution to
Provident and Superannuation Fund) paid to the Managing Director w.e.f. July 1, 2004 for which a memorandum pursuant
to Section 302 of the Companies Act, 1956 was circulated to the shareholders. The approval of the shareholders for such
increase in remuneration being sought at the ensuing Annual General Meeting of the Company.
iii. The managerial personnel are covered under the Companies Group Gratuity Policy along with other employees of the
Company. Proportionate amount of gratuity is not included in the aforementioned disclosure, since exact amount is not
ascertainable.
iv. Remuneration for the previous year includes remuneration to a director for part of the year, which during the year is for full
year.
2004-2005 2003-2004
i) FOB Value of Exports 5532.7 5687.8
ii) Reimbursement of freight and insurance 86.9 65.4
iii) Others 75.6 11.2
5695.2 5764.4
Year to which the dividend relates 2003-04 2002-03
Number of non-resident shareholders 122 62
Number of shares held by them 11780287 797289
Amount of dividend (Rs. in million) 76.6 4.0
2004-2005 2003-2004
Rs. in million Rs.in million
Salary and Allowances 31.8 17.8
Contribution to Provident and Other Funds 3.2 1.1
Perquisites 1.3 3.9
Commission 8.3 13.1
44.6 35.9
81 text 81
LUPIN LIMITED
81 81
b) Computation of Net Profit under Section 349 of the Companies Act, 1956 and commission payable to Executive Chairman.
10 Auditors Remuneration
a) Payment to Auditors :
11. The Company procures on lease, equipments and vehicles under operating leases. These rentals recognised in the Profit and Loss
Account for the year are Rs.38.6 million (previous year Rs.33.1 million). The future minimum lease payments and payment profile
of non cancellable operating leases are as under :
2004-2005 2003-2004
Not later than one year 11.6 9.0
Later than one year but not later than five years 20.8 17.1
32.4 26.1
2004-2005 * 2003-2004
i) For Statutory Audit 2.0 1.1
ii) For Taxation matters - 0.2
iii) For Other Services including Quarterly Limited Reviews, Certification
work including for corporate governance, etc. 1.6 0.4
iv) Reimbursement of out-of-pocket expenses 0.1 0.1
3.7 1.8
b) Cost Audit Fees 0.1 0.1
* Excluding service tax
Particulars 2004-2005 2003-2004
Profit before tax and extraordinary items 852.7 1996.2
Less : Extraordinary items (including tax) - 706.9
Profit before tax and after extraordinary items 852.7 1289.3
Add :
Provision for Diminution in the value of Investments written back (net) - (11.2)
Compensation received on surrender of tenancy rights - (0.2)
Voluntary Compensation paid under VRS 2.6 1.6
Loss on sale of Investments - 0.4
Loss on sale of Fixed Assets 6.7 6.5
Directors Remuneration 44.6 35.9
Net Profit on which commission is payable 923.0 1323.1
9.2 13.2
Restricted to 8.3 13.1
Maximum allowed as per Companies Act, 1956 at 1%

12. Basic and Diluted earning per share is calculated as under :
13. The Company has not granted any loans/advances in the nature of loans as stipulated in the clause 32 of the Listing Agreement
with the Stock Exchanges. For this purposes, the loans to employees as per the Companys policy and security deposits paid
towards premises taken on leave and license basis and against business conducting agreements, have not been considered.
Hence, there are no investments by loanees in the shares of the parent Company and /or the subsidiary Companies.
14. Employees Stock Option Plan
During the year, 377150 options of Rs.567.35 each were granted under the Lupin Employees Stock Option Plan 2003 duly
approved by the Remuneration Committee of the Board of Directors of the Company and the shareholders of the Company in the
Extra Ordinary General Meeting held on December 5, 2003. The options are granted at the price as computed in accordance with
the SEBI guidelines in force, at the time of such grant. Each option entitles the holder to exercise the right to apply for and seek
allotment of one equity share of Rs.10/- each. The said options have a vesting period from June 30, 2006 to June 30, 2009 in
accordance with the vesting schedule as stated in the said scheme and an exercise period of ten years from the grant date.
The particulars of the options granted and lapsed under the Scheme are tabulated as below:
15. Sales have been regrouped during the year and have been disclosed net of trade discount. Accordingly, the trade discount of
Rs.348.7 Million pertaining to the previous year has been netted off from the sales. However, the said regrouping has no impact
on the profit.
16. Other Provision represents excise duty liability recognised by the Company based on substantial degree of estimation for excise
duty payable on clearance of goods lying in stock as on March 31, 2004 of Rs.41.5 million as per the estimated pattern of
despatches. During the year, Rs.39.1 million was utilised for clearance of goods and the unused balance of Rs.2.4 million was
reversed. Liability recognised under this clause for the year is Rs.22.1 million which is outstanding as at March 31, 2005. Actual
outflow is expected in next financial year.
Particulars
Year Ended 31
st
March
2005
Year Ended 31
st
March
2004
Options outstanding as at the beginning of the year - -
Options granted during the year 377150 -
Options lapsed during the year - -
Options outstanding as at the year-end 377150 -
2004-2005 2003-2004
Profit after tax before extraordinary items 843.6 1496.0
Less: Income tax / wealth tax in respect of earlier years 20.7 36.2
Profit (before extraordinary items) attributable to Equity Shareholders 822.9 1459.8
Extra ordinary items (net of tax) - 508.9
Profits (after extraordinary items) attributable to Equity Shareholders 822.9 950.9
Weighted average number of Equity Shares :
- Basic 40141134 40141134
Add: Effect of dilutive issue of employees stock option 44431 -
- Diluted 40185565 40141134
Earnings per Share (in Rs.) before Extraordinary items
- Basic 20.50 36.37
- Diluted 20.48 36.37
Earnings per Share (in Rs.) after Extraordinary items
- Basic 20.50 23.69
- Diluted 20.48 23.69
83 text 83
LUPIN LIMITED
83 83
17. The aggregate amount of Research and Development Expenditure incurred during the year and shown in the respective heads of
account is Rs.797.7 million (previous year Rs.460.9 million).
18. Sundry Creditors for the year ended 31
st
March 2005 include amounts due to the following small scale undertakings, which are
outstanding for more than 30 days.
Laxmi Industries, Shree Packers, Online Packaging, Agarwal Paper Products, Anand Packaging Industry, Industrial Packaging,
Shree Packers, Jain Carton Industries Pvt Ltd, Kailash corrugators Pvt Ltd, Novex Poly films Pvt Ltd, Triumph Pack Pvt Ltd, Rel iance
Packaging Industries, Novel Packaging Industries, Nandi Packers, Perfect Packaging Industries, Aadarsh Offset Pvt Ltd, Aakar
Printers, Adit Pharma Pvt Ltd, Anit Packaging, Associated Capsules Pvt Ltd, Astral Pharmaceuticals Ind, Award Offset Printers Pkg
Pvt Ltd, Award Packaging, Best Arts, Bharat Rubber Works, Everest Indl Corpn, Glamour Packaging Industries, Hbr Packaging,Henil
Pack, Industrial Thermoplastics, Jasmine Art Printers, Kisalaya Herbals Ltd, Kishore Pharma Products Pvt Ltd, Kolety Gums Pvt Ltd,
Maral Labs, Maxim Containers Co, Meera Offset Printers, Microtrol Sterilisation, Newtec Enterprises, Nirman Impress Pvt Ltd, O K
Print & Pack, Pacopack, Plantex, Polynova Packers, Pragna Organics, Preema Packaging, Printania Offset Pvt Ltd, Ramesh Industri es
(Indore), Ramesh Industries (Mumbai), Roshan Packaging Industries, Seasons Polymers, Sterling Rubber Products, Sushil Traders,
Sushmit Packaging, Swastik Flexipack Pvt Ltd, Swastik Packaging Pvt Ltd, The Madras Pharmaceuticals, Vikas Industries, Vital
Flavours, Welcure., Flexit Laboratoies Pvt Ltd, Hi-Fab Engineers Pvt Ltd, Radix Electro Systems Pvt Ltd, Radix Sensors Pvt Ltd, Novex
Poly Films Pvt Ltd, Vikas Pharmaceuticals Pvt Ltd, Asco Tarapur Industries, Jayson Chemical Industries, Mohini Organics Pvt Ltd,
Ekta Udyoge, Girnar Corrugators (p) Ltd, Kurian Abraham Pvt Ltd, Mahabir Industries, Pankaj Polymers, Safeway Packaging Pvt Ltd,
Shree Packers, Canton Laboratories, Bhavna Chemical Industries, Bharat Saw Mill, Deepak Industries, Cardkem Pharma Pvt Ltd,
Multi-Tech Engineers Pvt, Ltd, Smeera Graphics, Harlem Polycontainers Pvt Ltd, Trimurti Transformer, Jarad Chemicals, Jalaram
Packaging, Shree Patel Ice Factory, Hi-Fab Engineers Pvt Ltd, Leeds Kem laxminarayan, Vital Machinery Corpopration, Roop
Rasayan Inds Pvt Ltd, Krishna Engineers, Vivid Systems, Novex Poly Films Pvt Ltd, Dorik Plastochem Ltd, Navbharat Packaging
Industries, Skega Engineering Co.Pvt. Ltd, Regal Chemicals & Minrals, Shree Ganesh Industries, UNP Polyvalve India (P) Ltd, D S
Chunawala Chemical Inds, Shreeji Paper Containers, Apex Construction, APF Water, Clean Air Engineers, Clean Room Presentations,
Contech India P Ltd, Dharia Switchgear & Controls, Diva Envitech, Electromedics Inc, Fabwell Engineers, Fine Fab Pvt Ltd, Gayatri
Safety Weld, Gips Plastic Industries, Goel Process Systems P Ltd, Horizon polymer Engineering,, Industrial Plastic Containe, Intelligent
Automation System, J U Enggineering, Jay prakash Ind, Jayshar Engineers, K D Enterprises, K T Associates, Klenzaids Bioclean
Devices, Lacto Seal Equipments, M B Instruments, Mayank Engineering Works, Mechnal Industries, Membrane Separation System,
Mukesh Electric Centre, Nu Fibro Tech, Perfect Gasket Industries, Perfect Gasket Industries, Radix Sensors Pvt Ltd, Rdg Engineering
Works, Right Equipments., Systems & Components India, Unik Engineering Services, Universal Insulation Compan, Vijay Pumps
Pvt.Ltd, a s Enterprises, Leeds Kem, Sameer Chemopharma, Tatva Chintan Pharma Chem Pvt Ltd, Zeoliter & Allied Products.
The list of SSI undertakings is determined by the Company on the basis of available information and relied upon by the auditors.
19. Details of capacities, production, turnover and stocks :
A) Details of licenced and installed capacities:
Notes :
i) In terms of press Note No.4(1994 series) dt 25.10.94 issued by the Department of Industrial Development, Ministry of Industry, Government of India,
and Notification No.S.O.137(E) dated 1
st
March,1999 issued by the department of Industrial Policy & Promotion, Ministry of Industry, Government of
India, industrial licencing has been abolished in respect of bulk drugs and formulations. Hence, there is no registered / licenced capacities for these
bulk drugs and formulations.
ii) Installed capacities, being a technical matter, are as certified by the Management and relied upon by the Auditors.
Installed Installed
Classification Unit 31.03.2005 31.03.2004
Formulations :
Tablets No. in Million 1530.0 1530.0
Liquids Kilo-Litres 3216.0 3216.0
Capsules No. in Million 446.0 446.0
Injections:
- Liquids Kilo-Litres 42.0 42.0
- Vials No. in Million 12.0 12.0
Creams and Powder M. T. 403.0 403.0
Bulkdrugs and intermediates M. T. 3563.9 3044.3
B) Details of production and purchases of finished goods:
Notes
i) Production includes goods manufactured for replacement and on loan licence basis by other parties but excludes manufactured on job work basis for
other parties and manufactured for Research and Development activities.
ii) Production consists of saleable bulk drugs and intermediates. It excludes bulk drugs consumed for manufacture of formulations.
iii) Production/Purchases of formulations includes samples.
C) Details of Turnover:
Notes :
i.) Above excludes free schemes, samples and sale out of Research and Development activities.
ii.) Turnover is net off trade discounts [Refer Note No.15 of schedule 17(B)]
Value Rs. in million
<-----Production-----> <--------- Purchase of traded goods -------->
31.03.2005 31.03.2004
Classification Unit Quantity Quantity Quantity Value Quantity Value
A) Formulations :
Tablets No. in Million 1096.0 1075.9 938.9 508.3 705.7 410.5
Liquids Kilo-Litres 339.2 821.9 3101.9 243.0 1729.9 126.2
Capsules No. in Million 292.8 297.7 141.2 154.2 140.5 125.9
Injections:
- Liquids Kilo-Litres 84.7 113.6 44.4 27.2 33.1 23.9
- Vials No. in Million 20.4 19.4 11.7 206.0 4.2 100.6
Creams and Powder M. T. 335.2 272.7 222.5 50.5 162.4 44.9
Inhalers No. in Million 1.3 - - - - -
B) Bulk drugs, Intermediates M.T. 2765.7 2344.1 1.0 0.8 911.9 14.2
and Chemicals
C) Others 2.2 -
1192.2 846.2
Year ended '31.03.2005 Year ended '31.03.2004

Classification Unit Quantity Value Quantity Value
A) Formulations :
Tablets No. in Million 1910.3 2769.0 1662.2 2883.3
Liquids Kilo-Litres 3181.8 635.6 2505.1 713.5
Capsules No. in Million 396.5 1060.8 420.6 1083.0
Injections:
- Liquids Kilo-Litres 130.0 155.6 129.1 162.5
- Vials No. in Million 24.3 570.8 17.7 487.3
Creams and Powder M. T. 446.7 184.1 391.1 156.1
Inhalers No. in Million 0.3 42.0 - -
B) Bulk drugs, Intermediates M. T. 2679.3 6640.4 1969.9 6179.8
and Chemicals
C) Others 64.4 13.8
12122.7 11679.3
Year Ended 31.03.2005 Year Ended 31.03.2004
85 text 85
LUPIN LIMITED
85 85
D) Details of stock:
Notes : i) Opening and Closing stock of formulations includes quantity of samples.
ii) Figures in brackets are for previous year.
20. Related party disclosures, as required by AS-18 are given below:
A. Relationships
Category I : Subsidiaries of the Company :
Lupin Pharmaceuticals Inc., USA
Lupin Chemicals (Thailand) Limited, Thailand
Lupin Hong Kong Limited, Hongkong
Lupin Herbal Limited, India
Lupin Laboratories South Africa (Pty) Limited,
South Africa
Category III: Others (Relatives of Key Management Personnel and Entities in which the Key Management Personnel have
control or significant influence)
Mrs. Vinita Gupta
Mr. Nilesh Gupta
Dr. Anuja Gupta
Badhira Leasing and Finance Pvt. Limited
Bharat Steel Fabrication and Engineering Works
Concept Pharmaceuticals Ltd
D. B. Gupta (HUF)
Enzal Chemicals (India) Limited
Khandelwal Estates Pvt. Limited
Lupin Human Welfare and Research Foundation
Lupin International Pvt. Limited
Lupin Investments Pvt. Limited
Lupin Marketing Pvt. Limited
Category II: Key Management Personnel :
Dr. Desh Bandhu Gupta Chairman
Dr. Kamal K. Sharma Managing Director
Mrs. M D Gupta Executive Director
Lupin Securities Limited
Matashree Gomati Devi Jana Seva Nidhi
Novamed Pharmaceuticals Pvt Ltd.
Pipleswar Holdings Pvt. Limited
Polynova Industries Limited
Pranik Landmark Associates
Rahas Investments Pvt. Limited
Synchem Chemicals (I) Pvt. Limited
Timita Leasing and Finance Pvt. Limited
Varija Leasing and Finance Pvt. Limited
Visiomed (I) Pvt. Limited
Yogini Leasing and Finance Pvt. Limited
Zyma Laboratories Limited
Quantity Value Quantity Value
31.03.2004 31.03.2004 31.03.2005 31.03.2005
Classification Unit
A) Formulations :
Tablets No. in Million 224.3 186.9 265.8 234.8
(164.3) (162.0) (224.3) (186.9)
Liquids Kilo-Litres 142.2 18.9 237.4 41.9
(187.5) (27.8) (142.2) (18.9)
Capsules No. in Million 50.9 58.4 66.5 80.8
(43.5) (58.3) (50.9) (58.4)
Injections:
- Liquids Kilo-Litres 26.8 20.9 15.0 11.8
(14.1) (11.7) (26.8) (20.9)
- Vials No. in Million 3.1 79.3 5.9 106.4
(2.8) (53.0) (3.1) (79.3)
Creams and Powder M. T. 61.9 14.6 107.5 30.0
(53.2) (15.2) (61.9) (14.6)
Inhalers No. in Million - - 0.4 29.3
B) Bulk drugs, Intermediates M. T. 99.7 311.4 186.0 355.5
and Chemicals (500.2) (221.7) (99.7) (311.4)
C) Others - 0.9
690.4 891.4
(549.7) (690.4)
Opening Stock Closing Stock
Out of the above items, transactions in excess of 10% of the total related party transactions are as under :
20. B. Transactions carried out with the related parties.
Sr. Transactions Related party For the year For the year
No. relation ended 31.03.2005 ended 31.03.2004
1 Sale of Goods
Lupin Chemicals (Thailand) Ltd. Subsidiary Company 39.7 -
Lupin Pharmaceuticals Inc., USA Subsidiary Company 190.4 733.2
2 Rent Expenses
Badhira Leasing and Finance Pvt. Ltd. Others Rs.6,000/- Rs.47,000/-
Bharat Steel Fabrications and Engineering Works Others Rs.6,000/- 0.2
Pipleshwar Holdings Pvt. Ltd. Others Rs.6,000/- Rs.47,000/-
Synchem Chemicals (I) Pvt. Ltd. Others Rs.6,000/- 0.1
Timita Leasing and Finance Pvt. Ltd. Others Rs.6,000/- Rs.47,000/-
Varija Leasing and Finance Pvt. Ltd. Others Rs.6,000/- Rs.47,000/-
Yogini Leasing and Finance Pvt. Ltd. Others Rs.6,000/- Rs.47,000/-
3 Business Conducting Expenses
Synchem Chemicals (I) Pvt. Ltd. Others Rs.6,000/- 0.6
4 Agency Commission Expenses
Lupin Hongkong Ltd. Subsidiary Company 7.1 -
5 Expenses Recovered / Service Charges Received
Enzal Chemicals (I) Ltd. Others 0.8 0.8
Polynova Industries Ltd. Others 0.7 0.7
Pranik Landmark Associates Others 1.2 1.2
(Rs. in million unless other wise stated)
Sr. Transactions Subsidiaries Key Management Others Total
No. Personnel
1 Sale of goods 243.4 - 6.6 250.0
(733.3) ( - ) (3.7) (737.0)
2 Rent Expenses - - Rs.42,000/- Rs.42,000/-
( - ) ( - ) (0.5) (0.5)
3 Business Conducting Expenses - - Rs.6,000/- Rs.6,000/-
( - ) ( - ) (0.6) (0.6)
4 Agency Commission Expenses 7.3 - - 7.3
( - ) ( - ) (4.5) (4.5)
5 Expenses Recovered / Service Charges Received - - 2.7 2.7
( - ) ( - ) (7.6) (7.6)
6 Interest received - - - -
( - ) ( - ) (9.9) (9.9)
7 Remunerations Paid - 44.6 5.9 50.5
( - ) (35.9) (3.4) (39.3)
8 Compensation Received - - Rs.9,347/- Rs.9,347/-
( - ) ( - ) (Rs. 35,569) (Rs. 35,569)
9 Purchase of goods / materials 0.9 - 34.5 35.4
(21.9) ( - ) (37.9) (59.8)
10 Investments during the year 4.6 - - 4.6
(14.4) ( - ) ( - ) (14.4)
11 Sale of Investments - - - -
( - ) ( - ) (17.0) (17.0)
12 Donations Paid - - 14.1 14.1
( - ) ( - ) (13.9) (13.9)
13 Dividend Paid - 4.3 127.4 131.7
( - ) (3.5) (131.3) (134.8)
14 Processing Charges Paid - - 4.3 4.3
( - ) ( - ) (2.7) (2.7)
15 Expenses Reimbursed 317.6 - 4.6 322.2
(116.2) ( - ) (3.7) (119.9)
16 Inter Corporate Deposit received back - - - -
( - ) ( - ) (161.0) (161.0)
(Rs. in million unless otherwise stated)
87 text 87
LUPIN LIMITED
87 87
20. B. Transactions in excess of 10% of the total related party transactions are as under (Contd.) :
C. Balances due from/to the related parties
Note: Figures in brackets are for previous year.
Sr. Transactions Subsidiaries Key Management Others Total
No. Personnel
1 Investment in Equity Shares 67.3 - - 67.3
(62.7) ( - ) ( - ) (62.7)
2 Deposits given for Leave and Licence - - 477.5 477.5
arrangement for Office Premises ( - ) ( - ) (477.5) (477.5)
3 Deposit given for Business Conducting - - 180.0 180.0
Arrangement ( - ) ( - ) (180.0) (180.0)
4 Debtors 159.2 - 0.5 159.7
(365.2) ( - ) ( - ) (365.2)
5 Guarantees given - - - -
( - ) ( - ) (97.5) (97.5)
6 Creditors 0.4 - 2.1 2.5
( - ) ( - ) (8.4) (8.4)
7 Commission Payable 13.1 - - 13.1
( - ) ( - ) ( - ) ( - )
8 Expenses payable 145.0 - - 145.0
( - ) ( - ) ( - ) ( - )
(Rs. in million unless otherwise stated)
6 Remunerations Paid
Dr. Desh Bandhu Gupta Key Management Personnel 21.1 21.8
Dr. Kamal K. Sharma Key Management Personnel 21.2 5.7
Mr Nilesh Gupta Others 4.5 3.4
7 Purchase of Goods/ Material
Enzal Chemicals (India) Ltd. Others 34.3 37.9
8 Investments during the year
Lupin Hongkong Ltd. Subsidiary Company 4.1 0.6
Lupin Herbal Ltd. Subsidiary Company 0.5 -
9 Sale of Investment
Polynova Industries Ltd. Others - 17.0
10 Donations Paid
Lupin Human Welfare and Research Foundation Others 11.8 11.8
Matashree Gomatidevi Janseva Nidhi Others 2.3 2.0
11 Dividend Paid
Lupin Marketing Pvt. Ltd. Others 26.1 20.1
Rahas Investments Pvt. Ltd. Others 29.5 24.0
Visiomed (I) Pvt. Ltd. Others 28.0 22.8
Zyma Laboratories Ltd. Others 40.0 56.0
12 Processing Charges Paid
Zyma Laboratories Ltd. Others 4.3 -
Lovincare products P. Ltd. Others - 2.7
13 Expenses Reimbursed
Lupin Pharmaceuticals Inc., USA Subsidiary Company 311.7 116.2
Signatures to Schedules 1 to 17
21 BALANCE SHEET ABSTRACT AND COMPANYS GENERAL BUSINESS PROFILE
(a) Registration Details
Registration No. 29442 State Code 11
Balance Sheet Date 31.03.2005
(b) Capital Raised during the Year (Amount in Rupees Thousands)
Public Issue NIL Rights Issue NIL
Bonus Issue NIL Private Placement NIL
(c) Position of Mobilisation and Deployment of funds (Amount in Rupees Thousands)
Total Liabilities 13119976 Total Assets 13119976
Sources of Funds
Paid-Up Capital 401411 Reserves and Surplus 4603623
Deferred Tax 934451 Secured Loans 3806326
Unsecured Loans 600065
Application of Funds
Net Fixed Assets 6287549 Investments 93746
Net Current Assets 3964624 Misc Expenditure -
Accumulated Losses -
(d) Performance of Company (Amount in Rupees Thousands)
Turnover 12122698 Total Expenditure 10946293
Profit Before Tax 852721 Profit After Tax 843621
Earning per Equity Share in Rs. (Basic) 20.50 Equity Dividend Rate % 65
(e) Generic Names of Three Principal Products of Company
(As per monetary terms)
Product Description Item Code No.(As per ITC Code)
i) Rifampicin - Formulation 30042007
ii) Lisinopril - Bulk Drug 294200.31
iii) Cephalexin - Bulk Drug 29419002
22 Previous year figures have been regrouped wherever necessary to correspond with the figures of the current year.
Director Director
Kiran N. Bade
Company Secretary
Place : Mumbai
89
LUPIN LIMITED (CONSOLIDATED)
1. We have audited the attached Consolidated Balance Sheet of Lupin Limited (the Company) and its subsidiaries as at 31
st
March, 2005, the Consolidated Profit and Loss Account and Consolidated Cash Flow Statement for the year ended on that date
annexed thereto.
2. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing
standards in India. These Standards require that we plan and perform the audit to obtain reasonable assurance whether the
financial statements are prepared, in all material respects, in accordance with an identified financial reporting framework and
are free of material misstatements. An audit includes, examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statements. We believe that our audit provides a
reasonable basis for our opinion.
3. The Consolidated financial statements of the Company for the year ended 31
st
March, 2004 were audited by other independent
auditors; whose audit report dated 28
th
April, 2004 was unqualified. We have relied upon the balances of assets and liabilities
as at 31
st
March, 2004 being opening balances as at 1
st
April, 2004, for the purposes of the consolidated financial statements
for the year ended 31
st
March, 2005.
4. We did not audit the financial statements of certain subsidiaries, whose financial statements reflect total assets of Rs. 466.7
million and total revenues of Rs. 950.5 million for the year then ended. These financial statements have been audited by other
auditors, whose reports have been furnished to us, and in our opinion, so far as it relates to the amounts included in respect of
the subsidiaries, are based solely on the report of the other auditors.
5. We report that the consolidated financial statements have been prepared by the Company in accordance with the
requirements of Accounting Standard on Consolidated Financial Statements (AS21) issued by the Institute of Chartered
Accountants of India and on the basis of separate audited financial statements of the Company and its subsidiaries
included in the consolidated financial statements.
6. We draw attention to note no. 8(ii) of Schedule 17(B) regarding Rs. 0.8 Million increased remuneration paid to the Managing
Director of the Company, which is subject to the approval of shareholders.
7. On the basis of the information and explanation given to us and read with the significant accounting policies and other notes
to consolidated financial statements and on the consideration of the separate audit reports on individual audited financial
statements of the Company and its aforesaid subsidiaries, we are of the opinion that the said consolidated financial statements
give a true and fair view in conformity with the accounting principles generally accepted in India:
a) in the case of the Consolidated Balance Sheet, of the consolidated state of affairs of the Company and its subsidiaries as
at 31
st
March, 2005;
b) in the case of the Consolidated Profit and Loss Account, of the consolidated results of the operations of the Company and
its subsidiaries for the year then ended and
c) in the case of the Consolidated Cash Flow Statement, of the consolidated cash flows of the Company and its subsidiaries
for the year then ended.
P. R. Barpande
Partner
Place : Mumbai
Date : May 20, 2005
AUDITORS REPORT
TO THE BOARD OF DIRECTORS OF LUPIN LIMITED ON THE CONSOLIDATED FINANCIAL
STATEMENTS OF LUPIN LIMITED AND ITS SUBSIDIARIES.
LUPIN LIMITED CONSOLIDATED BALANCE SHEET
AS AT 31
ST
MARCH, 2005
For Deloitte Haskins & Sells For and on behalf of the Board of Directors
P. R. Barpande Kiran N. Bade Dr. Desh Bandhu Gupta Dr. Kamal K. Sharma
Partner Company Secretary Chairman Managing Director
Place : Mumbai
As at As at
31.03.2005 31.03.2004
Schedules Rs. in Million Rs. in Million
I. SOURCES OF FUNDS
Shareholders' Funds
Share Capital 1 401.4 401.4
Reserves and Surplus 2 4492.4 3906.2
4893.8 4307.6
Loan Funds
Secured Loans 3 3972.0 3042.5
Unsecured Loans 4 600.1 905.6
4572.1 3948.1
Deferred Tax Liabilities (net) 934.6 941.8
[Refer Note No.5 (b) of schedule 17(B)]
Minority Interest 12.0 8.2
[Refer Note No.16 of schedule 17(B)]
TOTAL 10412.5 9205.7
Fixed Assets 5
Gross Block 7346.6 6600.4
Less: Depreciation 1717.7 1389.8
Net Block 5628.9 5210.6
6327.0 5382.3
Investments 6 26.4 26.4
Inventories 7 2614.7 2309.9
Sundry Debtors 8 2549.5 2276.1
Cash and Bank Balances 9 270.7 301.6
Loans and Advances 10 1754.3 2003.8
7189.2 6891.4
Less: Current Liabilities and Provisions 11
Current Liabilities 2713.8 2344.6
Provisions 416.3 749.8
3130.1 3094.4
Net Current Assets 4059.1 3797.0
TOTAL 10412.5 9205.7
91
LUPIN LIMITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
ST
MARCH, 2005
Current Year ended Previous Year ended
31.03.2005 31.03.2004
Schedules Rs. in Million Rs. in Million
INCOME
Sales (Gross) 13122.8 12638.5
Less : Excise Duty 511.4 486.5
Sales (Net) 12611.4 12152.0
Other Income 12 234.1 513.5
12845.5 12665.5
EXPENDITURE
Cost of Materials 13 6441.0 6224.6
Personnel Expenses 14 1329.1 1100.5
Manufacturing and Other Expenses 15 3507.1 2608.1
Interest and Finance Charges 16 282.5 525.9
11895.9 10754.4
Profit Before Tax and Extraordinary Items 949.6 1911.1
Provision for Taxation
- Current Tax ( including wealth tax ) 34.6 471.7
- Deferred Tax (7.2) 46.3
Net Profit Before Extraordinary Items 922.2 1393.1
Extraordinary Items [net of tax of Rs.nil (previous year Rs.198.0 million)] - 508.9
Net Profit after tax and extraordinary
Items But Before Minority Interest 922.2 884.2
Less : Minority Interest 3.8 16.2
Net Profit after Minority Interest 918.4 868.0
Less : Income tax - earlier years 21.0 36.2
Add : Surplus brought forward from previous year 1510.5 888.0
Add : Debenture Redemption Reserve written back 35.0 350.0
Amount Available for Appropriation 2442.9 2069.8
APPROPRIATIONS
- Transfer to Debenture Redemption Reserve - 15.0
- Transfer to General Reserve 750.0 250.0
- Proposed Dividend on Equity Shares 260.9 260.9
- Corporate Tax on Dividend 37.3 33.4
Balance Carried to Balance Sheet 1394.7 1510.5
2442.9 2069.8
Earnings Per Share (in Rs.) before extraordinary items
[Refer Note No 7 of Schedule 17(B)]
- Basic 22.36 33.40
- Diluted 22.33 33.40
Earnings Per Share (in Rs.) after extraordinary items
[Refer Note No 7 of Schedule 17(B)]
- Basic 22.36 20.72
- Diluted 22.33 20.72
Face value of Equity Shares (in Rs.) 10.00 10.00
Place : Mumbai
LUPIN LIMITED CONSOLIDATED CASH FLOW STATEMENT
ST
MARCH, 2005
31.03.2005 31.03.2004
A. CASH FLOW FROM OPERATING ACTIVITIES
Net Profit before Tax and Extraordinary Items 949.6 1,911.1
Adjustments for:
Loss on sale/discard of Fixed Assets (net) 6.7 6.5
Interest and Finance Charges 282.5 525.9
Interest on Long Term Investments- Non Trade (1.4) (2.0)
[31.03.2005 Rs. 6,615/-; 31.03.2004 Rs. 21,615/-]
Provision for Diminution in value of Long Term Investments written back (net) - (11.2)
Provision for Doubtful Debts / (written back) 15.5 (24.2)
Effect of foreign currency translation [refer note no.15 of schedule 17(B)] (13.0) -
Exchange difference (refer note 1 below) (0.1) -
Operating Profit before Working Capital Changes 1,576.0 2,738.5
Adjustments for:
Trade and other Receivables (268.2) 2,183.0
Inventories (304.8) (707.6)
Trade Payables 379.5 259.6
Cash Generated from Operations. 1,382.5 4,473.5
Interest paid (net) (291.7) (571.2)
Direct Taxes (Paid) / refund (net) (165.2) 7.9
Net Cash Generated from Operating Activities. 925.6 3,910.2
B. CASH FLOW FROM INVESTING ACTIVITIES
Additions to Fixed assets / Capital work-in-progress (1,292.0) (837.1)
Sale of Fixed Assets 4.4 1.8
Sale of Investment 0.1 54.1
Purchase of Investments - (24.0)
Interest on Long Term Investments- Non Trade 1.4 2.0
[31.03.2005 Rs. 6,615/-; 31.03.2004 Rs. 21,615/-]
Net Cash used in Investing Activities (1,286.1) (803.2)
C. CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from / repayment of Borrowings 624.0 (2,729.1)
Loss on repurchase / cancellation of debentures - (37.1)
Premium on prepayments of Term Loans - (6.4)
Dividend Paid (260.4) (200.4)
Corporate Dividend Tax paid (34.1) (25.7)
Net cash from / (used in) Financing Activities 329.5 (2,998.7)
Net (decrease) / increase in cash and cash equivalents (31.0) 108.3
Cash and Cash equivalents as at the beginning of the year 301.6 193.3
Cash and Cash equivalents as at the end of the year 270.6 301.6
For the year Ended
93
LUPIN LIMITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR 31
ST
MARCH, 2005 (CONTD.)
2. Additions to fixed assets (including movements in Capital work-in-progress) are considered as a part of investing
activities.
3. Interest income on deposits, etc., is classified as cash flow from operating activiities.
4. The above Cash Flow Statement has been prepared under the Indirect Method as set out in the Accounting
Standard (AS-3),Cash Flow Statement issued by the Institute of Chartered Accountants of India.
5. The Previous years figures have been regrouped wherever necessary. The effect of extraordinary items in the
previous year has been given in the relevant heads.
31.03.2005 31.03.2004
For the year Ended
Notes:
1. Cash and cash equivalents include
Cash and Bank Balances (refer schedule 9) 270.7 301.6
Exchange difference [unrealised (gain) on foreign currency cash and cash equivalents] (0.1) -
Total cash and cash equivalents 270.6 301.6
Place : Mumbai
SCHEDULES FORMING PART OF THE CONSOLIDATED
BALANCE SHEET
Note:
Out of the above Equity Shares, 37,311,048 Equity Shares were allotted as fully
paid-up without payment being received in cash, pursuant to the scheme of
Amalgamation with erstwhile Lupin Laboratories Limited.
As at As at
31.03.2005 31.03.2004
Authorised :
50,000,000 Equity Shares of Rs 10/- each 500.0 500.0
1,500,000 Redeemable Cumulative Preference Shares of Rs 100/- each 150.0 150.0
650.0 650.0
40,141,134 Equity Shares of Rs 10/- each fully paid up 401.4 401.4
TOTAL 401.4 401.4
Capital Reserve
- Investment Subsidies from Central Government
- Investment Subsidies from State Government
- On restructuring of capital of the Parent Company under the Scheme
of Amalgamation
263.9 263.9
Capital Redemption Reserve
Revaluation Reserve
Securities Premium Account
General Reserve
Add: Transferred from Profit and Loss Account 750.0 250.0
1895.7 1145.7
Debenture Redemption Reserve
Add: Transferred from Profit and Loss Account - 15.0
Less : Transferred to Profit and Loss Account 35.0 350.0
30.0 65.0
Amalgamation Reserve
Exchange Reserve [Refer Note No.15 of schedule 17(B)] - 13.0
Surplus in Profit and Loss Account 1394.7 1510.5
TOTAL 4492.4 3906.2
95
BALANCE SHEET
Notes :
1. a) Debentures are secured / to be secured by first legal / equitable mortgage of immovable Assets and Hypothecation of
movable assets of the parent Company both present and future situated at (a) Aurangabad, Pune and Tarapur in State
of Maharashtra, (b) Ankleshwar in State of Gujarat (c) Mandideep, District Raisen in State of Madhya Pradesh and (d)
Verna industrial area in Goa. The said charge is ranking paripassu between the lenders including for term loan (Refer
Note 2 Below), and subject to prior charges created / to be created in favour of companys Bankers on specific items of
movables to secure working capital requirements (Refer note 3 below).
b) H series Debentures are redeemable in 8 equal half yearly instalments starting from 1st September 2001, M series Debentures
are redeemable in 3 equal annual instalments commencing from 28th October, 2002, O series and P series Debentures are
redeemable in 8 equal half yearly instalments starting from 30th September, 2001 and R series Debentures are
redeemable in 3 equal annual instalments starting from 17th August, 2005. The Debentures under H, M, O and P
series are redeemed during the year on payment of last Half yearly / Annual Instalments in respect of which the parent
Company has initiated the steps for satisfaction of charges created in favour of Debenture Trustees of those series.
2. Term loans from Financial Institutions / Banks are secured / to be secured by first charge ranking paripassu with Trustees
for debenture holders referred to in note 1 (a) above and is further secured by way of personal guarantees of some of the
directors of the parent company for amount aggregating to Rs.156.4 million (Previous Year Rs.274.0 million).
As at As at
31.03.2005 31.03.2004
Notes Rs. in Million Rs. in Million
1. Debentures 1
Nil ( 1.5 million ) 14.5% 'H' Series Non-Convertible Redeemable
Nil ( 2.3 million ) 14.5% 'M' Series Non-Convertible Redeemable
Nil ( 2 million ) 14.5% 'O' Series Non-Convertible Redeemable
Nil (1 million ) 14.5% 'P' Series Non-Convertible Redeemable
1.2 million 8% 'R' Series Non-Convertible
Redeemable Debentures of Rs. 100/- each fully paid up. 120.0 120.0
120.0 254.9
2. Term Loans 2
( i ) From Financial Institutions
- Rupee Loans 398.4 590.0
- Foreign currency loans 104.9 131.1
( ii ) From Banks
- Foreign Currency Loans 437.5 -
940.8 721.1
3. Cash Credit, Packing Credit and Post Shipment
Credit facilities from Banks 3 2911.2 2066.5
[including interest accrued and due Rs.0.2 million (previous year Rs.nil)]
TOTAL 3972.0 3042.5
SCHEDULE 4 - UNSECURED LOANS
Notes :
1. Fixed Deposits include deposits guaranteed by some of the Directors 37.7 62.6
2. Amount due within a year
i) Fixed Deposits 285.7 384.4
ii) Loans from Council for Scientific and Industrial Research 15.4 -
BALANCE SHEET
SCHEDULE 3 - SECURED LOANS ( Notes - contd.)
3. a) Loans of parent company from Banks in cash credit, Packing credit and Post shipment credit facilities are secured by
hypothecation of inventories and book debts of the parent company and a second charge on immovable properties referred
to in note 1 (a) above.
b) Working capital Loan of a wholly owned subsidiary company from bank aggregating to Rs.61.5 million (previous year Rs.nil)
is secured by irrecoverable standby letter of credit from the bankers of the parent company.
c) Working capital loans of a subsidiary company from banks aggregating to Rs.104.3 million (previous year Rs.177.0 million)
are secured against its fixed deposits together with the mortgage of a portion of its land, machinery and equipments.
4. Packing credit and Post shipment credit facilities and Working Capital loans include foreign currency loans of
5. Debentures of Rs.40.0 million ( Previous Year Rs. 134.9 million) and Term Loans of Rs. 224.1 million (Previous Year Rs. 197.8
million) are repayable within one year.
As at As at
31.03.2005 31.03.2004
Rs. in Million Rs. in Million
Fixed Deposits 385.3 734.8
[Due to Directors Rs.0.1 million (previous year Rs.0.1 million)]
Other Loans :
a) Sales Tax Deferment Loan - Government of Maharashtra 53.9 47.2
b) Loans from Council for Scientific and Industrial Research 160.9 123.6
TOTAL 600.1 905.6
9
7
L
U
P
I
N

L
I
M
I
T
E
D

(
C
O
N
S
O
L
I
D
A
T
E
D
)
BALANCE SHEET
* Amounts written off in respect of leasehold land for the period of lease which has expired.
Notes :
1. Cost of Buildings includes cost of shares in co-operative societies of Rs.1,000 (previous year Rs.1,000).
2. Capital work-in-progress includes capital advances paid, machinery under installation / in transit, construction and erection materials
(including those lying with contractors) and pre-operative expenses [Refer note no. 4 of Schedule 17(B)].
3. Depreciation for the current year includes Rs.0.5 million pertaining to earlier years (previous year Rs.0.3 million).
4. Additions to Fixed Assets and Capital work-in-progress are after adjusting Rs. 0.3 million on account of exchange differences. The
exchange difference on Indigeneous Plant and Machinery is credited to Profit and Loss Account aggregating to Rs. 20.1 million in view
of the requirements of Accounting Standard (AS-11) The Effects of Changes in Foreign Exchange Rates (Revised) issued by The Institute
of Chartered Accountants of India, including clarification in this respect, which hitherto was capitalised in the earlier years. Consequently
there is a credit of Rs.20.1 million to the Profit and Loss Account and the profit for the year is higher by the like amount.
5. Intangible Assets (Computer Software) is regrouped from Plant, Machinery and Equipments considering the requirements of Accounting
Standard (AS-26) Intangible Assets.
(Rs. in Million)
Depreciation / Amortisation
Particulars As at As at Up to For the Up to As at As at
1st April Additions Deductions 31st March 31st March Year Deductions 31st March 31st March 31st March
2004 2005 2004 2005 2005 2004
Free Hold Land 51.2 - - 51.2 - - - - 51.2 51.2
Lease Hold Land 112.7 - - 112.7 6.0 1.9 - 7.9* 104.8 106.7
Buildings 1,625.7 125.7 0.6 1,750.8 204.9 52.5 0.1 257.3 1,493.5 1,420.8
Plant , Machinery and
Equipments 4,625.4 619.9 11.7 5,233.6 1,135.4 260.2 3.2 1,392.4 3,841.2 3,490.0
Furniture and Fixtures 110.5 18.4 6.4 122.5 28.3 10.7 4.8 34.2 88.3 82.2
Vehicles 16.8 1.6 0.7 17.7 5.6 1.5 0.2 6.9 10.8 11.2
Intangible Assets 58.1 - - 58.1 9.6 9.4 - 19.0 39.1 48.5
(Computer Software)
Total 6,600.4 765.6 19.4 7,346.6 1,389.8 336.2 8.3 1,717.7 5,628.9 5,210.6
Previous Year 6,004.6 759.2 163.4 6,600.4 1,107.8 295.3 13.3 1,389.8 5,210.6
Total 6,327.0 5,382.3
Net Block Gross Block
SCHEDULE 6 - INVESTMENTS
(At cost / carrying amount unless otherwise stated)
Notes :-
1) a) Quoted Investments : Aggregate Cost / Carrying Value 21.1 21.1
: Aggregate Market / Repurchase Value of Bonds 22.1 22.9
b) Unquoted Investments : Aggregate cost / Carrying Value 5.3 5.3
2) All the Investments in shares / bonds are fully paid up.
BALANCE SHEET
As at
Number Face 31.03.2004
Value Rs. in Million Rs. in Million Rs. in Million
Long Term Investments
1 In Equity Shares
a) Unquoted (Trade)
Biotech Consortium India Ltd. 50,000 Rs.10/- 0.5 0.5
(50,000)
Bharuch Enviro Infrastructure Ltd. 4,410 Rs.10/-
[31.03.2005 - Rs.44,100; 31.03.2004 - Rs. 44,100] (4,410)
Bharuch Eco-Acqua Infrastructure Ltd. 479,250 Rs.10/- 4.8 4.8
(479,250)
Dombivali Nagri Sahakari Bank Ltd. Nil Rs.50/- -
[31.03.2004 - Rs.50,000] (1,000) 5.3 5.3
b) Quoted (Non Trade)
Gran Heal Pharma Ltd 575,000 Rs.10/- 5.7 5.7
(575,000)
Less : Provision for diminution in value of investments 5.7 5.7
- -
2 In Bonds
Quoted (Non-Trade)
6.75% Tax Free US64 Bonds 211,400 Rs.100/- 21.1 21.1
(211,400)
TOTAL 26.4 26.4
As at
31.03.2005
99
(considered good unless otherwise stated)
Note :
Loans and advances include Rs.1.2 million (previous year Rs. nil)
being advance towards investments.
As at As at
31.03.2005 31.03.2004
Stock-in-trade
- Raw and Packing Materials 1023.7 702.8
- Work-in-Process 533.6 716.5
- Finished Goods (including Traded Goods) 966.3 813.6
Consumable Stores, Spares and Fuel 91.1 77.0
TOTAL 2614.7 2309.9
Cash in hand [including Cheques on hand of Rs.38.2 million 40.3 5.7
Bank Balances :
- With Scheduled Banks
In Current Accounts (including remittances in transit) 87.4 38.3
In Exchange Earners Foreign Currency Account 0.3 0.3
In Deposit Accounts (including Margin Deposits) 103.8 217.3
- With Others
In Current Accounts 38.9 40.0
TOTAL 270.7 301.6
Unsecured
Advances recoverable in cash or in kind or
for value to be received 889.6 877.8
Deposits 746.1 734.6
Balances with Customs and Excise Authorities 1.0 45.0
Advance payment of Income Tax 117.6 346.4
TOTAL 1754.3 2003.8
BALANCE SHEET
(Unsecured)
Debts outstanding for a period exceeding six months
- Considered good 36.0 117.1
- Considered doubtful 15.5 -
51.5 117.1
Other Debts considered good 2513.5 2159.0
2565.0 2276.1
Less: Provision for doubtful debts 15.5 -
TOTAL 2549.5 2276.1
BALANCE SHEET
SCHEDULE 11 - CURRENT LIABILITIES AND PROVISIONS
As at As at
31.03.2005 31.03.2004
Current Liabilities
Acceptances 1182.5 938.5
Sundry Creditors :
i) Total outstanding dues to small scale industrial undertakings 58.3 35.8
ii) Total outstanding dues to creditors other than small scale
industrial undertakings 1396.7 1284.8
Interest Accrued but not due on loans 36.6 39.0
Unpaid Dividend * 8.8 8.3
Unpaid Matured Deposits * 15.5 14.6
Unpaid Matured Debentures * 4.6 6.2
Unpaid Interest Warrants * 10.8 17.4
* There are no amounts due and outstanding to be credited to
Investor Education and Protection Fund
TOTAL 2713.8 2344.6
Provisions
For Gratuity 22.7 9.5
For Leave Encashment 41.2 33.3
For Taxation (including wealth tax) 32.8 371.2
For Proposed Dividend on Equity 260.9 260.9
For Tax on Dividend 36.6 33.4
Other Provisions [refer note no.12 of schedule 17(B)] 22.1 41.5
416.3 749.8
TOTAL 3130.1 3094.4
101
31.03.2005 31.03.2004
Export Benefits / Incentives 52.1 293.7
Income from Research Services 11.0 -
Dividend on Long Term Investments - Trade
[31.03.2005 - Rs. 6, 615 ; 31.03.2004 - Rs. 21,615]
Interest on Long Term Investments - Non Trade 1.4 2.0
Interest on Deposits with Banks 4.4 9.4
[Tax Deducted at Source Rs.0.8 million (previous year Rs.1.9 million)]
Interest on Inter Corporate Deposits - 9.9
[Tax Deducted at Source Rs. nil (previous year Rs.2.0 million)]
Other Interest (net) 23.4 11.1
[Tax Deducted at Source Rs.0.1 million (previous year Rs.0.1 million)]
Insurance Claims 2.0 3.5
Exchange Rate Diffference (net) 34.3 103.2
Sundry Credit Balances written back (net) - 10.4
Provision for Doubtful Debts no longer required, written back - 24.2
Provision for dimunition in value of Long Term Investments - written back (net) - 11.2
Miscellaneous Income 105.5 34.9
[including share in income from a customer Rs.59.7 million
(previous year Rs. Nil)]
[Tax Deducted at Source Rs.1.5 million (previous year Rs.nil)]
TOTAL 234.1 513.5
Salaries, Wages and Bonus 1101.3 919.8
Contribution to Provident , Gratuity and Other Funds 126.5 99.5
Welfare Expenses 101.3 81.2
TOTAL 1329.1 1100.5
Raw and Packing Materials Consumed 5005.7 5339.6
Purchase of Traded Goods 1434.2 1335.0
1501.0 1051.0
1499.9 1501.0
1.1 (450.0)
TOTAL 6441.0 6224.6
Decrease / (Increase) in Stock of Finished Goods (including Traded Goods) and Work-in-
Process
Opening stock of Finished Goods (including Traded Goods) and Work-in-process
Less: Closing stock of Finished Goods (including Traded Goods) and Work-in-process
SCHEDULE 15 - MANUFACTURING AND OTHER EXPENSES
SCHEDULE 16 - INTEREST AND FINANCE CHARGES
31.03.2005 31.03.2004
Processing Charges 123.6 46.8
Consumable Stores and Spares 316.5 222.3
Repairs and Maintenance :
- Buildings 40.2 30.0
- Plant and Machinery 74.5 71.0
- Others 50.9 56.2
Rent 29.0 19.3
Rates and Taxes 33.6 27.5
Insurance 66.0 56.1
Power and Fuel 622.9 562.8
Excise Duty (Net) 53.7 69.0
Selling and Promotion Expenses 717.2 382.2
Commission, Brokerage and Discounts 223.8 264.8
[Including cash discount of Rs.2.7 million (previous year Rs.2.8 million)]
Freight and Forwarding 161.6 130.6
Lease Rent and Hire Charges 38.6 33.1
Postage and Telephone Expenses 62.2 45.3
Travelling and Conveyance 233.5 163.0
Legal and Professional Charges 108.0 105.9
Donations 30.9 23.0
[Includes contribution to Lupin Human Welfare and Research
Foundation aggregating to Rs.11.8 million (previous year Rs.11.8 million)]
Clinical and Analytical Charges 208.8 46.0
Bad Debts / Advances Written Off 25.6 -
Provision for Doubtful Debts 15.5 -
Loss on sale of Investments - 0.4
Loss on Sale / Discard of Fixed Assets (Net) 6.7 6.5
Prior Period Adjustments (Net) 11.1 10.9
Miscellaneous Expenses 251.8 197.5
(includes printing and stationery, contract labour charges,
books and periodicals, audit fees, etc.)
TOTAL 3507.1 2608.1
Interest on Debentures 35.6 113.1
Interest on Fixed Loans 114.2 257.9
Others 132.7 154.9
TOTAL 282.5 525.9
103
ACCOUNTS
SCHEDULE 17 - SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
A) SIGNIFICANT ACCOUNTING POLICIES
a) Basis of Preparation of Financial Statements :
i) The financial statements have been prepared under the historical cost convention and on the accrual basis of the
accounting. The accounts of the Parent Company and an Indian subsidiary and foreign subsidiaries have been
prepared in accordance with the Accounting Standards issued by the Institute of Chartered Accountants of India,
except in case of a subsidiary located in Thailand whose accounts have been prepared in accordance with the local
laws and the applicable Accounting Standards / generally accepted accounting practices. No adjustment entries are
required for conversion of the accounts of the aforesaid foreign subsidiary located in Thailand, from its local GAAP
to Indian GAAP as certified by the local auditor of that subsidiary.
ii) The financial statements of the subsidiaries used in the consolidation are drawn upto the same reporting date as that
of the Parent company, namely March 31, 2005
b) Principles of Consolidation :
i) The financial statements of the Parent Company and its subsidiaries have been consolidated on a line by line basis
by adding together the book value of like items of assets, liabilities, income and expenses, after fully eliminating intra-
group balances, intra group transactions and the unrealized profits/losses.
ii) The financial statements of the Parent Company and its subsidiaries have been consolidated using uniform accounting
policies for like transactions and other events in similar circumstances.
iii) Minority interest is presented separately from the liabilities or assets and the equity of the parent shareholders in the
consolidated Balance Sheet. Minority interest in the income or loss of the group is separately presented.
c) Use of Estimates :
The preparation of financial statements in conformity with the generally accepted accounting principles require, estimates
and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Differences between the
actual results and estimates are recognised in the period in which the results are known / materialised.
d) Fixed Assets :
Fixed Assets of the parent company are stated at cost net of modvat / cenvat, less accumulated depreciation and
accumulated impairment losses, if any. All costs, including financing costs till commencement of commercial production,
net charges on foreign exchange contracts and adjustment arising from exchange rate variations attributable to the fixed
assets acquired from a country outside India, are capitalised. The fixed assets of the foreign subsidiary located in Thailand
are stated as under :
i) Land - at appraised value determined by independent appraiser.
ii) Plant and machinery
- as at 31
st
December 1991 - at appraised value determined by independent appraiser less accumulated depreciation.
- Acquired after 31
st
December 1991 at cost less accumulated depreciation.
iii) Other items - at cost less accumulated depreciation.
e) Intangible Assets :
Intangible assets are recognised only if it is probable that the future economic benefits that are attributable to the assets
will flow to the enterprise and the cost of the assets can be measured reliably. The intangible assets are recorded at cost
and are carried at cost less accumulated amortisation and accumulated impairment losses, if any.
ACCOUNTS
SCHEDULE 17 - SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS (CONTD.)
f) Foreign Currency Transactions / Translation :
Transactions of the parent company in foreign currency are recorded at the original rates of exchange in force at the time
transactions are effected. Exchange differences arising on repayment of foreign currency liabilities incurred for the purpose of
acquiring fixed assets from a country outside India, are adjusted in the carrying amount of the respective fixed assets. Exchange
differences arising on settlement of other transactions are recognized in the Profit and Loss Account.
Monetary items of the parent company (other than those related to acquisition of imported fixed assets) denominated in
foreign currency and not covered by forward contracts are restated using the exchange rate prevailing at the date of the
Balance Sheet and the resulting net exchange difference is recognized in the Profit and Loss Account. The exchange gain/
loss arising on restatement of foreign currency liability relating to fixed assets acquired from a country outside India is
adjusted in the value of the related fixed assets.
Monetary items of the parent company covered by forward contracts are translated at the rates on the date of transactions.
Premium/discount arising on such forward exchange contract is amortised as income/expense over the life of the contract. Any
profit/loss arising on cancellation of such forward exchange contract is recognised as income or expense.
Foreign offices/branches :
In respect of the foreign offices/branches of the parent company, which are integral foreign operations, all revenues and
expenses (except depreciation) during the year are reported at average rate. Monetary assets and liabilities are restated at the
year-end exchange rate. Non-monetary assets and liabilities are stated at the rate prevailing on the date of the transaction.
Balance in head office account whether debit or credit is translated at the amount of the balance in the foreign office in the
books of the head office. Net gain/loss on foreign currency translation is recognized in the Profit and Loss Account.
Foreign Subsidiaries :
In case of foreign subsidiaries, the local accounts are maintained in local and functional currency. The financial statements of
such foreign subsidiaries, which are integral foreign operations for the parent company, have been translated to Indian Rupees
on the following basis
i) All income and expenses are translated at the average rate of exchange prevailing during the year.
ii) Monetary assets and liabilities are translated at the closing rate on the Balance Sheet date.
iii) Nonmonetary assets and liabilities are translated at historical rates.
iv) The resulting exchange difference is accounted in Exchange Difference account and is charged/credited to the Profit and
Loss Account (refer note no. 15 below)
g) Investments:
Long term investments are stated at cost of acquisition. Investments in foreign currency are stated at cost by converting at
exchange rate prevailing at the time of acquisition. Provision for diminution in the value of long term investments is made only
if such decline, is other than temporary.
h) Inventories:
Stock-in-trade is valued at lower of cost and net realisable value. Stock of consumable stores, spares and
furnace oil is valued at cost.
In case of the parent company, cost is computed based on moving weighted average in respect of all procured materials and
traded finished goods and comprises of materials and appropriate share of utilities and other overheads in respect of Work-in-
Process and Finished Goods.
Cost of finished goods (trading), raw materials, supplies and others are calculated by using the first in first out method by the
subsidiary companies. Cost also includes all charges incurred for bringing the inventories to their present location and condition.
105
i ) Revenue Recogni t i on :
i) Revenue from sale of goods is recognised when the significant risks and rewards in respect of ownership of products are
transferred.
ii) Revenue from product sales is stated net of returns, sales tax and applicable trade discounts and allowances.
iii) Income from research services is recognised as revenue when earned in accordance with the terms of the relevant agreements.
iv) Insurance or other claims, interest etc. are recognised only when it is reasonably certain that the ultimate collection will be
made.
j) Export Benefits :
Export benefits available under prevalent schemes are accrued in the year in which the goods are exported and are accounted
to the extent considered recoverable.
k) Excise Duty :
Excise Duty is accounted on the basis of payments made in respect of goods cleared and provision is made for goods lying in
bonded warehouses.
ACCOUNTS
l) Depreciation and Amortisation :
Depreciation on fixed assets is provided on straight line basis in the manner and at the rates prescribed in Schedule XIV to the
Companies Act, 1956, by the parent company except for the following fixed assets which are depreciated / amortised over their
useful life as determined by the Management on the basis of technical evaluation, etc.
Assets Estimated useful life
Captive Power Plant at Tarapur 15 years
Certain assets provided to employees 3 years
Leasehold land and building Over the period of lease
Intangible Assets (Computer Software) 6 years
Depreciation on fixed assets of the subsidiaries is provided on straight line basis over their estimated useful life, as
determined by the management as under :
Buildings 20 years
Plant and machinery 10 years
Furniture and fixture and Office equipments (including computers) 3-5 years
Vehicles 5 years
m) Employee Retirement Benefits :
i) Parent Companys contribution to Provident Fund, Superannuation Fund and other funds and the Hong Kong Subsidiarys
contribution to Mandatory Provident Fund Scheme is charged to Profit and Loss Account.
ii) The amount of Gratuity liability of the parent company as ascertained on the basis of actuarial valuation and funded
through a scheme (Group Gratuity) administered by Life Insurance Corporation of India, is charged to the Profit and Loss
Account. In case of wholly owned subsidiary located in Hong Kong, provision is made towards liability for gratuity as
payable under the Employment Ordinance (Hong Kong).
iii) Provision is made towards liability for leave encashment as ascertained on the basis of actuarial valuation.
n) Taxes on Income :
Income Taxes are accounted for in accordance with Accounting Standard (AS-22) Accounting for Taxes on Income, issued
by The Institute of Chartered Accountants of India. Tax expense comprises both current tax and deferred tax. Current tax is
measured at the amount expected to be paid or recovered from the tax authorities using the applicable tax rates. Deferred tax
assets and liabilities are recognised for future tax consequence attributable to timing differences between taxable income and
accounting income that are measured at relevant enacted tax rates. At each Balance Sheet date the group reassesses
unrealised deferred tax assets, to the extent they become reasonably certain or virtually certain of realisation, as the case
may be.
o) Operating Leases :
Assets taken on lease under which all risks and rewards of ownership are effectively retained by the lessor are classified as
operating lease. Lease payments under operating leases are recognised as expenses on accrual basis in accordance with the
respective lease agreements.
p) Provisions, Contingent Liabilities and Contingent Assets :
Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a
result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but
are disclosed in the Notes to Accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.
q) Borrowing Costs :
Borrowing cost attributable to the acquisition or construction of qualifying assets is capitalised as part of the cost of such assets.
A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing
costs are charged to revenue.
r) Impairment of Fixed Assets :
At the end of each year, the Company determines whether a provision should be made for impairment loss on fixed assets
by considering the indications that an impairment loss may have occurred in accordance with Accounting Standard (AS-28)
Impairment of Assets issued by the Institute of Chartered Accountants of India. An impairment loss is charged to the Profit and
Loss Account in the year in which, an asset is identified as impaired, when its carrying value exceeds its recoverable amount. The
impairment loss recognised in prior accounting periods is reversed, when the carrying value of the asset exceeds its recoverable
value.
ACCOUNTS
107
a) Income tax demands in respect of earlier years under dispute, pending in appeals
before higher authorities. 302.1 338.5
Amount paid there against and included under Schedule 10
(Rs.292.4 million)Previous year (Rs.291.5 million)
b) Excise duty, Sales tax disputed in appeals and pending decisions before higher authorities. 62.5 57.5
Amount paid there against and included under Schedule 10
(Rs.9.6 million)Previous year (Rs.1.14 million)
c) Custom duty in respect of future export obligation in accordance with Exim Policy. 8.3 8.4
d) Claims against the Company not acknowledged as debts. 195.2 376.9
Amount paid there against and included under
Schedule 10(Rs.2.8 million)Previous year (Rs.2.8 million)
e) Guarantees given by the Company on behalf of an Associate Company. - 97.5
f) In case of subsidiary located in U.S.A., - Contingent liability on account of
Differential Price adjustable in respect of goods supplied under the terms of amount
the agreement (refer note no. 14 below). unascertained -
B) NOTES TO CONSOLIDATED ACCOUNTS
1. Estimated amount of contracts remaining to be executed on capital account and not provided for, net of advances,
Rs. 167.5 Million (Rs.219.3 Million).
2. Contingent Liabilities:-
Rs. in million
As at 31
st
March 2005
As at 31
st
March 2004
3. The consolidated financial statements present the consolidated accounts of Lupin Limited with the following subsidiaries:
The consolidated accounts thus include the results of the aforesaid subsidiaries and there are no other body corporate /
entities, where the Company holds 50% or more of the share capital or where the Company can control the
composition of the Board of Directors / governing bodies of such companies / entities, where the holding may be less
than 50%.
ACCOUNTS
Name of subsidiary Country of
incorporation
Proportion of Ownership
Interest
Lupin Chemicals (Thailand) Limited (LCTL) Thailand 60%
Lupin Pharmaceuticals Inc. (LPI) U.S.A. 100%
Lupin Hong Kong Limited (LHKL) Hong Kong 100%
Lupin Laboratories South Africa (Proprietary) Ltd South Africa 60%
Lupin Herbal Limited (LHL) India 100%
FINANCIAL STATEMENTS (CONTD.)
4. Pre-operative expenses, included in Capital Work in Progress, represent the expenses incurred for projects, which are yet to be
commissioned. Such pre-operative expenses mainly pertain to plants/building under erection/construction at units/projects
located at Tarapur, Ankleshwar and Mandideep and to be capitalised on completion of projects at the respective locations. The
details of these expenses are:
5. Current tax provision:
a) Provision for income tax for the parent company has been made on the basis of Minimum Alternate Tax in accordance
with Section 115 JB of the Income Tax Act, 1961 considering the relief/deductions available in accordance with the
said Act.
b) The deferred tax assets / (liabilities) arising out of significant timing differences are as under :
Rs. in million
Rs. in million
2004-2005 2003-2004
Opening balance 5.7 14.5
Incurred in the current year :
Salaries, allowances and contribution to funds 8.8 10.0
Professional fees 0.6 4.7
Travelling expenses 2.0 2.9
Interest on project related fixed loans 9.1 5.7
Others 5.8 2.9
Total 32.0 40.7
Less : Capitalised during the year 13.3 21.5
Amount written off (Project abandoned) - 13.5
Closing balance 18.7 5.7
Particulars 31.03.2005 31.03.2004
Deferred Tax Liability :
Depreciation (956.5) (953.4)
Deferred Tax Assets :
Provision for leave encashment 7.8 -
Other timing differences 8.9 11.6
Net Deferred Tax Liability (934.6) (941.8)
ACCOUNTS
109
6. Segment Reporting :
i) Primary segment :
The Company is exclusively in the Pharmaceutical business segment and has only one reportable segment.
ii) Secondary segment data:
Notes :
a) The segment revenue in geographical segments considered for disclosure is as follows :
-Revenue within India includes gross sales to customers located within India and earnings in India.
-Revenue outside India includes gross sales to customers located outside India and earnings outside India.
b) Segment revenue comprises:
7. Basic and diluted earning per share is calculated as under :
Particulars 2004-05 2003-04 2004-05 2003-04 2004-05 2003-04
Revenue by Geographical Segment 6514.3 5939.5 6779.6 7056.3 13293.9 12995.8
Carrying amount of Segment Assets 11385.0 10354.3 2157.6 1945.8 13542.6 12300.1
Capital Expenditure 1284.3 820.2 7.7 3.5 1292.0 823.7
India Outside India Total
Rs. in million
Rs. in million
Particulars 2004-05 2003-04 2004-05 2003-04 2004-05 2003-04
Sales by Geographical Segment 6503.6 5926.2 6619.2 6712.3 13122.8 12638.5
Other Income excluding interest, dividend,
etc.
10.7 13.3 160.4 344.0 171.1 357.3
Total Revenue 6514.3 5939.5 6779.6 7056.3 13293.9 12995.8
India Outside India Total
ACCOUNTS
2004-2005 2003-2004
(Rs. in Million) (Rs.in million)
Profit after tax before extraordinary items 918.4 1376.9
Income tax / wealth tax in respect of earlier years
21.0 36.2
Profit (before extraordinary items) attributable to Equity Shareholders
897.4 1340.7
Extraordinary items (net of tax) - 508.9
Profits (after extraordinary items) attributable to Equity Shareholders 897.4 831.8
Weighted average number of Equity Shares :
- Basic 40141134 40141134
Add :Effect of dilutive issue of employees stock option 44431 -
- Diluted 40185565 40141134
Earnings per Share (in Rs.) before Extraordinary items
- Basic 22.36 33.40
- Diluted 22.33 33.40
Earnings per Share (in Rs.), after Extraordinary items
- Basic 22.36 20.72
- Diluted 22.33 20.72
The particulars of the options granted and lapsed under the Scheme are tabulated as below:
8. Managerial Remuneration:
Notes :
i. Above amount does not include remuneration paid by a subsidiary companies to its directors.
ii. Salary and allowances includes Rs.0.8 million towards the increased remuneration (including Companys contribution to
Provident and Superannuation fund) paid to the Managing Director w.e.f. July 1, 2004 for which a memorandum pursuant
to Section 302 of the Companies Act, 1956 was circulated to the shareholders. The approval of the shareholders for such
increase in remuneration is being sought at the ensuing Annual General Meeting of the Company.
iii. The managerial personnel of the Parent Company are covered under the Companies Group Gratuity Policy along with
other employees of the Company. Proportionate amount of gratuity is not included in the aforementioned disclosure, since
exact amount is not ascertainable.
iv. Remuneration for the previous year includes remuneration to a director for part of the year which during the year is for
full year.
9. The Company procures on lease, equipments and vehicles under operating leases. These rentals recognised in the Profit and
Loss Account for the year are Rs.38.6 million (Previous year Rs.33.1 million). The future minimum lease payments and payment
profile of non cancellable operating leases are as under :
10. Employees Stock Option Plan:
During the year, 377150 options of Rs.567.35 each were granted under the Lupin Employees Stock Option Plan 2003 duly
approved by the Remuneration Committee of the Board of Directors of the Parent Company and the shareholders of the Parent
Company in the Extraordinary General Meeting held on December 5, 2003. The options are granted at the price as
computed in accordance with the SEBI guidelines in force, at the time of such grant. Each option entitles the holder to
exercise the right to apply for and seek allotment of one equity share of Rs.10/- each of the parent company. The said
options have a vesting period from June 30, 2006 to June 30, 2009 in accordance with the vesting schedule as stated in the
said scheme and an exercise period of ten years from the grant date.
FINANCIAL STATEMENTS (CONTD.)
2004-2005 2003-2004
(Rs. in million) (Rs.in million)
Salary and Allowances 31.8 17.8
Contribution to Provident and Other Funds 3.2 1.1
Perquisites 1.3 3.9
Commission 8.3 13.1
44.6 35.9
2004-2005 2003-2004
Not later than one year 12.0 9.0
Later than one year but not later than five years 21.4 17.1
33.4 26.1
ACCOUNTS
Particulars
Year Ended 31
st
Year Ended 31
st
March 2005 March 2004
Options outstanding as at the beginning of the year - -
Options granted during the year 377150 -
Options lapsed during the year - -
Options outstanding as at the end of the year 377150 -
111
11 Sales have been regrouped during the year and have been disclosed net of trade discount. Accordingly, the trade discount of
Rs.348.7 Million pertaining to the previous year has been netted off from the sales. However, the said regrouping has no impact
on the profit.
12 Other Provisions (refer schedule 11) represents excise duty liability recognised by the parent company based on substantial
degree of estimation for excise duty payable on clearance of goods lying in stock as on March 31, 2004 of Rs.41.5 million as
per the estimated pattern of despatches. During the year, Rs.39.1 million was utilised for clearance of goods and the unused
balance of Rs.2.4 million was reversed. Liability recognised under this clause for the year is Rs.22.1 million which is outstanding
as at March 31, 2005. Actual outflow is expected in next financial year.
13. The aggregate amount of Research and Development Expenditure incurred during the year and shown in the respective heads
of account is Rs.797.7million (Previous year Rs.460.9 million).
14. A subsidiary company located in the U.S.A., in the earlier year, had accounted for a liability of Rs.12.7 million (US $ 292,447) to
a party, which, in accordance with the agreement has been written back in the current year. In the opinion of the Company such
liability would not result into outflow of cash at any point of time and is not probable, taking into consideration the understanding
with the said party as reflected in the agreement. On the same basis, the Company does not consider any outflow of cash on
this account and no liability is accrued, however, same is considered as contingent as disclosed in Note no. 2 (f) above.
15. Exchange rate difference includes the net exchange differences on translation, of the financial statements of the foreign
subsidiaries from their respective local currencies to the Indian currency, considering the operations of the said subsidiary
companies as integral to the parent company, in accordance with the Accounting Standard AS-11 The Effects Of Changes in
Foreign Exchange Rates (Revised), which in the previous year were not so considered. Consequently, the profit for the year is
higher by Rs.13.0 million.
16 Minority interest represents the minoritys share in equity of the subsidiary company Lupin Chemicals (Thailand) Limited
17. Related party disclosures, as required by AS-18 are given below:
A. Relationships -
Category I : Key Management Personnel :
Dr. Desh Bandhu Gupta Chairman
Dr. Kamal K. Sharma Managing Director
Mrs. M D Gupta Executive Director
Mrs. Vinita Gupta Managing Director of Lupin Pharmaceuticals Inc., USA
Mr. Ramesh Chandra Saboo Managing Director of Lupin Chemicals (Thailand) Limited, Thailand
Mr. Sanjay Moolchandani Director of Lupin Hong Kong Limited, Hong Kong
Category II: Others (Relatives of Key Management Personnel and Entities in which the Key Management Personnel have
control or significant influence)
Mr. Nilesh Gupta
Dr. Anuja Gupta
Badhira Leasing and Finance Pvt. Limited
Bharat Steel Fabrication and Engineering Works
Concept Pharmaceuticals Ltd
D. B. Gupta (HUF)
Enzal Chemicals (India) Limited
Khandelwal Estates Pvt. Limited
Lupin Human Welfare and Research Foundation
Lupin International Pvt. Limited
Lupin Investments Pvt. Limited
Lupin Marketing Pvt. Limited
Lupin Securities Limited
Matashree Gomati Devi Jana Seva Nidhi
Novamed Pharmaceuticals Pvt Ltd.
Pipleswar Holdings Pvt. Limited
Polynova Industries Limited
Pranik Landmark Associates
Rahas Investments Pvt. Limited
Synchem Chemicals (I) Pvt. Limited
Timita Leasing and Finance Pvt. Limited
Varija Leasing and Finance Pvt. Limited
Visiomed (I) Pvt. Limited
Yogini Leasing and Finance Pvt. Limited
Zyma Laboratories Limited
ACCOUNTS
B. Transactions carried out with the related parties.
Sr. Transactions Key Management Others Total
No. Personnel
1 Sale of goods - 6.6 6.6
( - ) (3.7) (3.7)
2 Rent Expenses - Rs.42,000/- Rs.42,000/-
( - ) (0.5) (0.5)
3 Business Conducting Charges Expenses - Rs.6,000/- Rs.6,000/-
( - ) (0.6) (0.6)
4 Agency Commission Expenses - - -
( - ) (4.5) (4.5)
5 Expenses Recovered / Service Charges Received - 2.7 2.7
( - ) (7.6) (7.6)
6 Interest received - - -
( - ) (9.9) (9.9)
7 Remuneration Paid 61.1 5.9 67.0
(41.4) (3.4) (44.8)
8 Compensation Received - Rs.9,347/- Rs.9,347/-
( - ) (Rs. 35,569) (Rs. 35,569)
9 Purchase of goods / materials - 34.5 34.5
( - ) (37.9) (37.9)
10 Sale of Investments - - -
( - ) (17.0) (17.0)
11 Donations Paid - 14.1 14.1
( - ) (13.9) (13.9)
12 Dividend Paid 4.3 127.4 131.7
(3.5) (131.3) (134.8)
13 Processing Charges - 4.3 4.3
( - ) (2.7) (2.7)
14 Expenses Reimbursed - 4.6 4.6
( - ) (3.7) (3.7)
15 Inter Corporate Deposit received back - - -
( - ) (161.0) (161.0)
Out of the above items transactions in excess of 10% of the total related party transactions are as under :
1 Rent Expenses
Badhira Leasing and Finance Pvt Ltd Others Rs.6,000/- Rs.47,000/-
Bharat Steel Fabrications and Engineering Works Others Rs.6,000/- 0.2
Pipleshwar Holdings Pvt Ltd Others Rs.6,000/- Rs.47,000/-
Synchem Chemicals (I) Pvt Ltd Others Rs.6,000/- 0.1
Timita Leasing and Finance Pvt Ltd Others Rs.6,000/- Rs.47,000/-
Varija Leasing and Finance Pvt Ltd Others Rs.6,000/- Rs.47,000/-
Yogini Leasing and Finance Pvt Ltd Others Rs.6,000/- Rs.47,000/-
2 Business Conducting Expenses
Synchem Chemicals (I) Pvt Ltd Others Rs.6,000/- 0.6
3 Expenses Recovered / Service Charges Received
Enzal Chemicals (I) Ltd Others 0.8 0.8
Polynova Industries Ltd Others 0.7 0.7
Pranik Landmark Associates Others 1.2 1.2
ACCOUNTS
113
17. B. Transactions in excess of 10% of the total related party transactions are as under (Contd.):
17. C. Balances due from/to the related parties
18. Previous year figures have been regrouped wherever necessary to correspond with the figures of the current year.
Figures in brackets are for previous year.
(Rs. in million)
Sr. Transactions Others Total
No.
1 Security Deposits paid towards office premises taken on 477.5 477.5
leave licence basis. (477.5) (477.5)
2 Security Deposit paid as per terms of Business Conducting 180.0 180.0
Arrangement. (180.0) (180.0)
3 Debtors 0.5 0.5
( - ) ( - )
4 Guarantees given - -
(97.5) (97.5)
5 Creditors 2.1 2.1
(8.4) (1.5)
4 Remunerations Paid
Dr Desh Bandhu Gupta Key Management 21.1 21.8
Dr Kamal K Sharma Key Management 21.2 5.7
Mr Nilesh Gupta 4.5 3.4
Mrs. Vinita Gupta Key Management 11.7 5.5
5 Purchase of Goods/ Material
Enzal Chemicals (India) Ltd Others 34.3 37.9
6 Sale of Investment
Polynova Industries Ltd Others - 17.0
7 Donations Paid
Lupin Human Welfare and Research Foundation Others 11.8 11.8
Matashree Gomatidevi Janseva Nidhi Others 2.3 2.0
8 Dividend Paid
Lupin Marketing Pvt Ltd Others 26.1 20.1
Rahas Investments Pvt Ltd Others 29.5 24.0
Visiomed (I) Pvt Ltd Others 28.0 22.8
Zyma Laboratories Pvt Ltd Others 40.0 56.0
9 Processing Charges Paid
Zyma Laboratories Ltd. Others 4.3 -
Lovincare Products Ltd. Others - 2.7
ACCOUNTS
Place : Mumbai
1
1
4
A
n
n
u
a
l

R
e
p
o
r
t

2
0
0
4
-
0
5
STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT, 1956,
RELATING TO SUBSIDIARY COMPANIES
Kiran. N. Bade Dr. Desh Bandhu Gupta Dr. Kamal K. Sharma
Company Secretary Chairman Managing Director
Name of the subsidiary company : Lupin Pharmaceuticals Inc., Lupin Chemicals (Thailand) Ltd., Lupin Hong Kong Ltd., Lupin Herbal Ltd., Lupin Laboratories South Africa (Pty) Ltd.,
USA Thailand Hong Kong India South Africa
The financial year/period of the subsidiary ended on : Year ended 31.03.2005 Year ended 31.03.2005 Year ended 31.03.2005 For the period
26.02.2004 - 31.03.2005
Year ended 31.03.2005
Date from which it became subsidiary company : 30.06.2003 25.08.1989 31.05.2002 12.08.2004 09.07.1997
Extent of interest of the holding Company in the Capital
and Reserves of the subsidiary company at the end of
the financial year/period of the subsidiary company
b) Extent of holding : 100% 60% 100% 100% 60%
Net aggregate amount of the subsidiary companys
profit/(loss) not dealt with in the holding Companys
accounts
Current period : Rs.25.6 Million Rs.5.7 Million Rs.2.1 Million Rs.5276/- Nil
Previous years : Rs.9.6 Million (Rs.43.6 Million) Nil N.A. (Rs. 40002/-)
Net aggregate amount of the subsidiary companys
profit/(loss) dealt with in the holding Companys
accounts
Current period : Nil Nil Nil Nil Nil
Previous years : Nil Nil Nil N.A. Nil
6,000 Ordinary shares of the face value
of South African Rand 1 each
50,000 Equity shares of
the face value of Rs.10/-
each (Including 6
shares held by
nominees)
a) Number of shares held : 300,000 shares of the face
value of US $ 1 each
800,000 Equity shares
of the face value of
Hong Kong $ 1 each
(Including 1 share held
by a nominee)
420,000 Equity shares of the
face value of Baht 100 each
115 text 115
LUPIN PHARMACEUTICALS, INC.
115 115
To the Members,
\our l|rcc|ors havc |casurc |n rcscn||nj |hc|r rcor| on |hc ocra||ons o| ,our Coran, |or |hc ,car cndcd
Varch 31 2005
Financial results
Performance review
lur|nj |hc ,car ,our Coran, |a|d |hc |a||orr |or ar||c|a||on |n |hc |randcd scjrcn| |n |hc lS rar|c| w||h |hc |aunch
o| Sura lror a s|ow s|ar| |n |hc |n|||a| ron|hs |hc roduc| saw a s|cc |ncrcasc |n rcscr|||ons rcsu|||nj |n |ncrcascd
rcvcnucs |n |hc |a||cr ar| o| |hc ,car \our Coran, a|so cn|crcd |n|o a co-roro||on ajrccrcn| w||h Corncrs|onc
l|olharra lnc |or roro||nj Sura w||h a |ocus on r|rar, carc h,s|c|ans lur|nj |hc ar| o| |hc ,car |hc Coran,
a|so roro|cd /,rar
!V
|Ca||||oac|n 0|ha|r|c So|u||on) |n |hc cd|a|r|c scc|a||, arca |hroujh a co||a|ora||on ajrccrcn|
w||h /||crjan lnc
Dividend
ln ordcr |o conscrvc rcsourccs ,our l|rcc|ors do no| rccorrcnd d|v|dcnd
!hc l|rcc|ors con||rr |ha| wh||c rcar|nj |hc annua| accoun|s a||ca||c accoun||nj s|andards had |ccn |o||owcd a|onj
w||h rocr c|ana||on rc|a||nj |o ra|cr|a| dcar|urcs !hc, |ur|hcr con||rr |ha| |hc, had sc|cc|cd such accoun||nj
o||c|cs and a||cd |hcr cons|s|cn||, and radc udjrcn|s and cs||ra|cs |ha| arc rcasona||c and rudcn| so as |o j|vc
a |ruc and |a|r v|cw o| |hc s|a|c o| a||a|rs o| |hc Coran, a| |hc cnd o| |hc ||nanc|a| ,car and o| |hc ro||| o| |hc Coran,
|or |hc sa|d ,car !hc, a|so con||rr |ha| |hc annua| accoun|s havc |ccn rcarcd on a jo|nj conccrn |as|s and |ha| rocr
and su|||c|cn| carc has |ccn |a|cn |or ra|n|cnancc o| adcqua|c accoun||nj rccords |or sa|cjuard|nj |hc assc|s o| ,our
Coran, and |or rcvcn||nj and dc|cc||nj |raud and o|hcr |rrcju|ar|||cs
Appreciation
\our l|rcc|ors w|sh |o |acc on rccord |hc|r arcc|a||on o| |hc va|ua||c scrv|ccs rcndcrcd |, a|| |hc cr|o,ccs o| |hc
Coran, and |o |hc |us|ncss assoc|a|cs o| |hc Coran, |or |hc|r con||nucd suor|
Vinita Gupta
Managing Director
Place : la|||rorc lS/
Date : Va, 1 2005
DIRECTORS REPORT
Year ended March
31, 2005
lcr|od cndcd
Varch 31 200+
Year ended March
31, 2005
lcr|od cndcd
Varch 31 200+
lncorc |ror ocra||ons 14.179 15909 624.794 2205
lro||| |c|orc ln|crcs| lcrcc|a||on and !a 0.775 000 39.393 2005
ln|crcs| 0.005 - 0.203 -
lcrcc|a||on 0.002 0001 0.106 0033
lro||| |c|orc !a 0.768 0599 39.084 200+2
!a ||nc|ud|nj dc|crrcd |a) 0.308 0232 13.491 101+2
lro||| a||cr !a 0.460 03 25.593 9900
lncorc |a o| car||cr cr|od 0.007 - 0.271 -
|c| lro||| 0.453 03 25.322 9900
la|ancc l/l 0.367 - 9.900 -
la|ancc carr|cd |o la|ancc Shcc| 0.820 03 35.222 9900
|lSl |n V||||on) |ks |n V||||on)
AUDITORS REPORT
To the Members of
\c havc aud||cd |hc la|ancc Shcc| o| lu|n lharraccu||ca|s lnc |' |hc coran,) as a| 31
s|
Varch 2005 |hc lro||| and loss
/ccoun| and a|so |hc Cash l|ow S|a|crcn| o| |hc Coran, |or |hc ,car cndcd on |ha| da|c ||hc ||nanc|a| s|a|crcn|s) a||achcd
hcrc|o wh|ch havc |ccn rcarcd |n accordancc w||h |hc Ccncra||, /ccc|cd /ccoun||nj lr|nc||cs |n lnd|a
!h|s rcor| |s |ssucd so|c|, |or |hc urosc o| conso||da||on o| accoun|s |, |hc ho|d|nj coran, lu|n l|r||cd and |o cor|, w||h |hc
rov|s|ons o| |hc Coran|cs /c| 195
!h|s rcor| docs no| |nc|udc a s|a|crcn| on |hc ra||crs scc|||cd |n arajrahs + and 5 o| |hc Coran|cs |/ud||ors kcor|) 0rdcr
2003 |ssucd |, |hc Ccn|ra| Covcrnrcn| |n |crrs o| su|-scc||on |+/) o| scc||on 22 o| |hc Coran|cs /c| 195 s|ncc |n our o|n|on
and accord|nj |o |hc |n|orra||on and c|ana||ons j|vcn |o us |hc sa|d 0rdcr |s no| a||ca||c |o |hc Coran,
Respective Responsibilities of the Management and Auditors
!hc ranajcrcn| o| |hc Coran, |s rcsons|||c |or |hc rcara||on o| |hcsc ||nanc|a| s|a|crcn|s l| |s our rcsons||||||, |o |orr an
|ndccndcn| o|n|on |ascd on our aud|| o| |hc s|a|crcn|s and |o crcss our o|n|on |hcrcon
Basis of Opinion
a) !hc ||nanc|a| s|a|crcn|s o| |hc Coran, |or |hc ,car cndcd 31
s|
Varch 200+ wcrc aud||cd |, o|hcr |ndccndcn| aud||ors
whosc aud|| rcor| da|cd 28
|h
/r|| 200+ was qua||||cd w||h rcscc| |o non-d|sc|osurc o| ccr|a|n |n|orra||on as rcqu|rcd as
cr ar| ll o| Schcdu|c \l o| |hc Coran|cs /c| 195 \c havc rc||cd uon |hc |a|anccs o| assc|s and ||a||||||cs as a| 31
s|
Varch 200+ |c|nj |hc ocn|nj |a|anccs as a| 1
s|
/r|| 200+ |or |hc uroscs o| |hc ||nanc|a| s|a|crcn|s |or |hc ,car cndcd
31
s|
Varch 2005
|) \c conduc|cd our aud|| |n accordancc w||h |hc aud|||nj s|andards |ssucd |, |hc lns|||u|c o| Char|crcd /ccoun|an|s o| lnd|a
/n aud|| |nc|udcs car|na||on on a |cs| |as|s o| cv|dcncc rc|cvan| |o |hc aroun|s and d|sc|osurcs |n |hc ||nanc|a| s|a|crcn|s
l| a|so |nc|udcs an asscssrcn| o| |hc s|jn|||can| cs||ra|cs and udjrcn|s radc |, |hc ranajcrcn| |n |hc rcara||on o|
|hc ||nanc|a| s|a|crcn|s and whc|hcr |hc accoun||nj o||c|cs arc aror|a|c |o |hc c|rcurs|anccs |o |hc Coran, cons|s|cn||,
a||cd and adcqua|c|, d|sc|oscd \c |anncd and cr|orrcd aud|| so as |o o||a|n a|| |n|orra||on and c|ana||on wh|ch
|o |hc |cs| o| our |now|cdjc and |c||c| wcrc ncccssar, |or |hc urosc o| our aud||
c) !hc la|ancc Shcc| lro||| and loss /ccoun| and |hc Cash l|ow S|a|crcn| dca|| w||h |, |h|s rcor| arc |n ajrccrcn| w||h
|hc |oo|s o| accoun|s o| |hc Coran, and cor|, w||h |hc accoun||nj s|andards rc|crrcd |o |n su|-scc||on |3C) o|
Scc||on 211 o| |hc Coran|cs /c| 195
Opinion
The Company has not disclosed the break-up of sales, purchases and opening and closing stocks, in respect of each class of goods
traded, indicating the quantities and values thereof, as required by paragraph 3 of Part II of Schedule VI of the Companies Act, 1956.
Subject to the above |n our o|n|on and |o |hc |cs| o| our |n|orra||on and accord|nj |o |hc c|ana||ons j|vcn |o us |hc ||nanc|a|
s|a|crcn|s rcad w||h |hc accoun||nj o||c|cs and no|cs |hcrcon j|vc a |ruc and |a|r v|cw
||) |n |hc casc o| |hc la|ancc Shcc| o| |hc s|a|c o| a||a|rs o| |hc Coran, as a| 31
s|
Varch 2005 and
|||) |n |hc casc o| |hc lro||| and loss /ccoun| o| |hc ro||| |or |hc ,car cndcd on |ha| da|c and
||||) |n |hc casc o| |hc Cash l|ow S|a|crcn| o| |hc cash ||ows |or |hc ,car cndcd on |ha| da|c
P. R. Barpande
Partner
Membership No.15291
l|acc Vur|a|
la|cd 19
|h
Va, 2005
117 text 117
117 117
BALANCE SHEET
AS AT 31
ST
MARCH, 2005
As at 31.03.05 As at 31.03.04 As at 31.03.05 As at 31.03.04
Schedules US $ US $ Rs'000 Rs'000
I. SOURCES OF FUNDS
Shareholders' funds
Sharc ca||a| 1 300,000 300000 13,788 1388
kcscrvcs and Sur|us 2 820,345 323 35,222 1533
1,120,345 23 49,010 29125
Loan funds
Sccurcd loan 3 1,404,637 - 61,446 -
Deferred Tax Liability (Net) 3,411 190 149 +
|kc|cr no|c 210 o| Schcdu|c '11'
Total 2,528,393 668,926 110,605 29,199
Fixed Assets +
Cross ||oc| 12,012 512+ 525 22+
lcss lcrcc|a||on 3,178 +8 139 33
Net Block 8,834 +3 386 191
Current Assets, Loans and Advances 5
lnvcn|or|cs 3,053,972 +0113 133,596 129+
Sundr, lc||ors 5,793,932 0021 253,456 3081
Cash and lan| |a|anccs 682,027 219882 29,835 9+15
loans and /dvanccs 555,233 - 24,289 -
10,085,164 1330185 441,176 5802
Less : Current Liabilities and Provisions
Currcn| l|a||||||cs 7,258,912 12+0+9 317,541 5+1550
lrov|s|ons 306,693 2305 13,416 1008
7,565,605 12330 330,957 55118
Net Current Assets 2,519,559 +550 110,219 29008
Total 2,528,393 668,926 110,605 29,199
Significant accounting policies and notes
forming part of accounts 11
/s cr our a||achcd rcor| o| cvcn da|c
For Deloitte Haskins & Sells For Lupin Pharmaceuticals, Inc.
P. R. Barpande Vinita Gupta
Partner Managing Director
Place: Mumbai Place: Baltimore, U.S.A.
Date: 19
th
May, 2005 Date: 17
th
May, 2005
ST
MARCH, 2005
For the year
ended on
31.03.05
For the period
from 30.06.03 to
31.03.04
For the year
ended on
31.03.05
For the period
from 30.06.03 to
31.03.04
Schedules US $ US $ Rs'000 Rs'000
INCOME FROM OPERATIONS
Sa|cs 6,710,968 13383+53 293,253 0891
0|hcr lncorc 7,468,227 252555 331,541 11+1+
14,179,195 15,909,028 624,794 722,605
EXPENDITURE
Cos| o| Va|cr|a|s 8 4,942,082 122520 215,619 5+352
la,rcn| |o and rov|s|on |or cr|o,ccs 9 510,810 2+5559 22,321 1115+
0cra||nj and o|hcr ccnscs 10 7,951,511 2918 347,461 1202+
ln|crcs| and l|nancc Charjcs 4,637 - 203 -
lcrcc|a||on 2,430 +8 106 33
13,411,470 15309++5 585,710 0253
Profit Before Tax 767,725 599,583 39,084 20,042
lrov|s|on |or !a
Currcn| !a 306,693 2305 13,416 1008
lc|crrcd !a 1,721 190 75 +
308,414 2323+ 13,491 101+2
Profit after Tax 459,311 367,236 25,593 9,900
lncorc !a - car||cr ,cars 6,202 - 271 -
453,109 367,236 25,322 9,900
/dd Sur|us |roujh| |orward |ror
rcv|ous ,car 367,236 - 9,900 -
la|ancc carr|cd |o la|ancc shcc| 820,345 323 35,222 9900
larn|nj cr sharc- las|c and l||u|cd ks ks
|kc|cr no|c 211 o| Schcdu|c 11) 1.51 122 84.41 3300
|or|na| va|uc o| cach cqu||, sharc |s lSS 1
Significant accounting policies and notes
forming part of accounts 11
Date: 19
th
May, 2005 Date: 17
th
May, 2005
119 text 119
119 119
CASH FLOW STATEMENT
ST
MARCH, 2005
US $ US $ lS S lS S Rs'000 Rs'000 ks'000 ks'000
A. CASH FLOW FROM OPERATING
ACTIVITIES
lro||| |c|orc !a 767,725 599583 39,084 200+2
/dus|rcn| lor
lcrcc|a||on 2,430 +8 106 33
ln|crcs| 4,637 203
l||cc| o| |orc|jn currcnc, |rans|a||on
|kc|cr |o|c 2 o| Schcdu|c 11 - - (5,437) 5+3
lchanjc l|||crcncc |Scc |o|c 1
|c|ow - - (32) -
7,067 +8 (5,160) 5+0
0cra||nj ro||| |c|orc wor||nj
ca||a| chanjcs 774,792 600,331 33,924 25,512
/dus|rcn|s |or
!radc and o|hcr rccc|va||cs 721,096 |0021) 30,873 |3081)
lnvcn|or|cs 1,007,741 |+0113) 43,697 |129+)
!radc and o|hcr a,a||cs (5,147,737) 12+0+9 (224,009) 5+1550
(3,418,900) 12+5 (149,439) 5539
Cash |uscd |n) / |ror ocra||ons (2,644,108) 18500 (115,515) 81151
l|rcc| !acs a|d (236,859) - (10,339) -
Net cash (used in) / from operating
activities (A) (2,880,967) 18500 (125,854) 81,151
B. CASH FLOW FROM INVESTING
ACTIVITIES:
lurchasc o| ||cd assc|s (6,888) |512+) (301) |22+)
Net cash (used in)/from investing
activities (B) (6,888) (5,124) (301) (224)
C. CASH FLOW FROM FINANCING
ACTIVITIES
lssuc o| sharcs - 300000 - 1388
\or||nj Ca||a| loan 1,400,000 - 61,243 -
Net cash from financing activities (C) 1,400,000 300,000 61,243 13,788
|c| |ncrcasc |n Cash and Cash
lqu|va|cn|s (1,487,855) 2,169,882 (64,912) 94,715
Cash and Cash Equivalents at the
beginning of the year 2,169,882 - 94,715 -
Cash and Cash Equivalents at the
end of the year 682,027 2,169,882 29,803 94,715
For the year ended For the period
31.03.05 ended 31.03.04
For the year ended For the period
31.03.05 ended 31.03.04
AS AT 31
ST
MARCH, 2005
|o|cs
2) ln|crcs| on |an| dcos||s |s cons|dcrcd as cash |n||ow |ror ocra||nj ac||v|||cs
3) lurchasc o| ||cd assc|s arc cons|dcrcd as a ar| o| |nvcs||nj ac||v|||cs
+) !hc cash ||ow s|a|crcn| has |ccn rcarcd undcr |hc 'lnd|rcc| rc|hod as sc| ou| |n |hc /ccoun||nj S|andard |/S-3)Cash
||ow S|a|crcn| |ssucd |, |hc lns|||u|c o| Char|crcd /ccoun|an|s o| lnd|a
5) lrcv|ous ,cars ||jurcs havc |ccn rcjroucd or rcc|ass|||cd whcrcvcr ncccssar, |o corrcsond w||h ||jurcs o| currcn| ,car
CASH FLOW STATEMENT (CONTD.)
ST
MARCH, 2005
1) Cash and Cash lqu|va|cn|s |nc|udc
ks'000 ks'000
Cash and lan| |a|anccs |as s|a|cd |n schcdu|c 5) 29835 9+15
lchanjc l|||crcncc |unrca||scd ja|n) |32) -
Total 29803 9+15
/s a| 31s| Varch 2005 /s a| 31s| Varch 200+
Date: 19
th
May, 2005 Date: 17
th
May, 2005
SCHEDULE "1" - SHARE CAPITAL
Authorised
10000000 Sharcs o| lS S1 /- cach 10,000,000 10000000 436,500 +3500
Issued, Subscribed and Paid up Capital
300000 Sharcs o| lS S1/- cach |u||, a|d u 300,000 300000 13,788 1388
|/|| |hc a|ovc sharcs arc hc|d |, lu|n
l|r||cd |hc lo|d|nj Coran,)
!o|a| 300,000 300000 13,788 1388
SCHEDULE "2" - RESERVES AND SURPLUS
lorc|jn Currcnc, !rans|a||on kcscrvc - - - 5+3
|kc|cr |o|c 2 o| Schcdu|c'11'
Sur|us |n lro||| and loss accoun| 820,345 323 35,222 9900
!o|a| 820,345 323 35,222 1533
SCHEDULE "3" - SECURED LOANS
Shor| |crr loan - |ror a |an| 1,400,000 - 61,243 -
/dd ln|crcs| accrucd and duc 4,637 - 203 -
|Sccurcd |, |rrcvoca||c s|and|, lc||cr o| Crcd|| |ror
|hc |an|crs o| lu|n l|r||cd |hc lo|d|nj Coran,
|oca|cd |n lnd|a
!o|a| 1,404,637 - 61,446 -
US $ US $ Rs'000 Rs'000
1
2
1
t
e
x
t
1
2
1
L
U
P
I
N

P
H
A
R
M
A
C
E
U
T
I
C
A
L
S
,

I
N
C
.
1
2
1
1
2
1
AS AT 31
ST
MARCH, 2005
SCHEDULE 4: FIXED ASSETS
|ln lS S)
lcscr|||on /s a| As at l|o lor |hc 0n As at As at /s a|
1s| /r|| 200+ /dd|||ons lcduc||ons 31st March 2005 31s| Varch 200+ ,car dcduc||ons 31st March 2005 31st March 2005 31s| Varch 200+
Coru|crs 512+ 3258 - 8,382 +8 2309 - 3,057 5,325 +3
lurn||urc and l||||njs - 330 - 3,630 - 121 - 121 3,509 -
Total 512+ 888 - 12,012 +8 2+30 - 3,178 8,834 +3
Previous Period - 512+ - 5,124 - +8 - 748 4,376 -
Cross l|oc| |a| cos|) lcrcc|a||on |c| l|oc|
| )
ks' 000
lcscr|||on /s a| As at l|o lor |hc 0n As at As at /s a|
1s| /r|| 200+ /dd|||ons lcduc||ons 31st March 2005 31s| Varch 200+ ,car dcduc||ons 31st March 2005 31st March 2005 31s| Varch 200+
Coru|crs 22+ 1+3 - 367 33 101 - 134 233 191
lurn||urc and l||||njs - 158 - 158 - 5 - 5 153 -
Total 22+ 301 - 525 33 10 - 139 386 191
Previous Period - 22+ - 22+ - 33 - 33 191 -
Cross l|oc| |a| cos|) lcrcc|a||on |c| l|oc|
AS AT 31
ST
MARCH, 2005
US $ US $ Rs'000 Rs'000
SCHEDULE "5" - CURRENT ASSETS
Inventories
|/| |owcr o| cos| or nc| rca||sa||c va|uc)
!radcd ||n|shcd joods | |nc|ud|nj joods |n |rans|| - ||| 305392 +0113 13359 129+
|lrcv|ous ,car lS S 13+11 ks' 000 - 1+3)
!o|a| 305392 +0113 13359 129+
Sundry Debtors (Unsecured, considered good)
lc||s ou|s|and|nj |or a cr|od ccccd|nj s| ron|hs - - - -
0|hcr dc||s
- luc |ror lo|d|nj Coran, - lu|n l|r||cd 331+108 25892 1++9 1105
- 0|hcrs 2+982+ ++11+9 108+80 19251
!o|a| 593932 0021 253+5 3081
Cash and Bank Balances
Cash |n hand 200 - 9 -
lan| la|anccs
\||h o|hcrs
- ln Currcn| accoun| w||h C||||an| |/ 50 +555 290+ 29008
|Va|rur aroun| ou|s|and|nj dur|nj |hc ,car
lS S2823229 |ks'000 - 123233 ) and
|lrcv|ous ,car lS S +555 |ks'000 - 29008)
- ln lcos|| /ccoun| w||h C||||an| |/ 50 150532 222 50
|Va|rur aroun| ou|s|and|nj dur|nj |hc ,car
lS S150532 |ks'000 - 50) and
|lrcv|ous ,car lS S 150532 |ks'000 - 50)
!o|a| 8202 219882 29835 9+15
Loans and Advances
(Unsecured considered good)
/dvanccs rccovcra||c |n cash or |n ||nd or |or va|uc
|o |c rccc|vcd - 1+199 - +39 -
lcos||s 200 - 9 -
/dvancc a,rcn| o| lncorc !a +083+ - 18+1 -
!o|a| 555233 - 2+289 -
SCHEDULE "6" - CURRENT LIABILITIES AND PROVISIONS
Current Liabilities
Sundr, Crcd||ors |0|hcr |han Sra|| Sca|c lndus|r|cs)
luc |o lo|d|nj Coran, - lu|n l|r||cd 3,131,849 1093155 137,003 +85+2
0|hcrs 4,127,063 1++3+9+ 180,538 3008
||nc|ud|nj advanccs |ror cus|orcrs lS S 2000000
ks'000 - 8395 |lrcv|ous ,car - n||)
!o|a| 7,258,912 12+0+9 317,541 5+1550
Provision -
- lor !aa||on 306,693 2305 13,416 1008
!o|a| 306,693 2305 13,416 1008
123 text 123
123 123
SCHEDULES FORMING PART OF THE PROFIT AND LOSS ACCOUNT
ST
MARCH, 2005
For the year
ended on
31.03.05
For the period
from 30.06.03 to
31.03.04
For the year
ended on
31.03.05
For the period
from 30.06.03 to
31.03.04
US $ US $ Rs'000 Rs'000
SCHEDULE "7" - OTHER INCOME
Scrv|cc Charjcs |kc|cr |o|c 2+ o| Schcdu|c '11' 01++ 25202+8 308580 11++2
l|a|||||, no |onjcr rcqu|rcd wr|||cn |ac| 292++ - 129 -
|kc|cr |o|c 25 o| Schcdu|c 11
ln|crcs| on lcos||s w||h lan| 532 3 2+2
lchanjc d|||crcncc on |rans|a||on ||c| - - 5199 -
|kc|cr |o|c 2 o| Schcdu|c 11
V|scc||ancous |ncorc 113959 - +980 -
!o|a| +822 252555 3315+1 11+1+
SCHEDULE "8" - COST OF MATERIALS [TRADED GOODS]
0cn|nj S|oc| +0113 - 129+ -
/dd lurchascs 393+3+1 1328233 11921 +1+
lcss C|os|nj S|oc| 305392 +0113 13359 129+
!o|a| +9+2082 122520 21519 5+352
Sa|ar|cs \ajcs and lonus +5218 2321+ 1999 105+5
S|a|| wc||arc ccnscs 53592 13+12 23+2 09
!o|a| 510810 2+5559 22321 1115+
SCHEDULE "9" - PAYMENTS TO AND PROVISIONS FOR
EMPLOYEES
SCHEDULE "10" - OPERATING AND OTHER EXPENSES
!ravc||nj and Convc,ancc 11815+ 39818 513 1809
kcn| 8093 5889 353 20
lnsurancc 3++5 2558+ 105 1121
lcja| and lro|css|ona| lccs 2++89 230023 1001 10++8
Sc|||nj and lroro||on ccnscs | |c| o| kccovcr|cs 903055 200++ 301+ 9105+
|lS S 125000 ks'000 - 551|lrcv|ous \car - n||
Cash d|scoun| 50099 90030 2189 +089
/ud|| |ccs 112 28 311 351
!c|chonc and los|ajc 28+3 308 318+ 1393
V|scc||ancous ccnscs 1099 9032 ++ 3589
|lnc|udcs o|||cc ccnscs rca|rs and ra|n|cnancc -
o|hcrs c|c)
!o|a| 951511 2918 3++1 1202+
SCHEDULE 11 : SI GNI FI CANT ACCOUNTI NG POLI CI ES AND NOTES FORMI NG PART OF ACCOUNTS
!hcsc ||nanc|a| s|a|crcn|s arc rcarcd so|c|, |or |hc uroscs o| conso||da||on |, |hc ho|d|nj coran, lu|n l|r||cd and |o cor|,
w||h |hc rov|s|ons o| |hc lnd|an Coran|cs /c| 195
1 Significant Accounting Policies:
1.1 Basis of preparation:
!hc accoran,|nj ||nanc|a| s|a|crcn|s havc |ccn rcarcd undcr |hc h|s|or|ca| cos| convcn||on |n accordancc w||h jcncra||,
accc|cd accoun||nj r|nc||cs |n lnd|a and |hc a||ca||c accoun||nj s|andards |ssucd |, |hc lns|||u|c o| Char|crcd /ccoun|an|s
o| lnd|a
1.2 Use of Estimates:
!hc rcara||on o| |hc ||nanc|a| s|a|crcn|s |n con|orr||, w||h |hc jcncra||, accc|cd accoun||nj r|nc||cs rcqu|rcs cs||ra|cs
and assur||ons |o |c radc |ha| a||cc| |hc rcor|cd aroun|s o| assc|s and ||a||||||cs on |hc da|c o| |hc ||nanc|a| s|a|crcn|s
and |hc rcor|cd aroun|s o| rcvcnucs and ccnscs dur|nj |hc rcor||nj cr|od l|||crcnccs |c|wccn ac|ua| rcsu||s and
cs||ra|cs arc rccojn|scd |n |hc cr|od |n wh|ch |hc rcsu||s arc |nown/ra|cr|a||sc
1.3 Translation to Indian Rupees:
!hc |oca| accoun|s arc ra|n|a|ncd |n |oca| and |unc||ona| currcnc, wh|ch |s |hc lS do||ars |lS S) !hc ||nanc|a| s|a|crcn|s
havc |ccn |rans|a|cd |o lnd|an kuccs on |hc |o||ow|nj |as|s
|) /|| |ncorc and ccnscs arc |rans|a|cd a| |hc avcrajc ra|c o| cchanjc rcva|||nj dur|nj |hc ,car
||) Vonc|ar, assc|s and ||a||||||cs arc |rans|a|cd a| |hc c|os|nj ra|c on |hc la|ancc Shcc| da|c
|||) |onronc|ar, assc|s and ||a||||||cs and sharc ca||a| |s |rans|a|cd a| h|s|or|ca| ra|cs
|v) !hc rcsu|||nj cchanjc d|||crcncc |s accoun|cd |n 'lchanjc l|||crcncc accoun| and |s charjcd/crcd||cd |o |hc lro|||
and loss /ccoun|
1..4 Revenue Recognition:
|) kcvcnuc |ror sa|c o| joods |s rccojn|zcd whcn |hc s|jn|||can| r|s|s and rcwards |n rcscc| o| owncrsh| o| roduc|s arc
|rans|crrcd |, |hc Coran,
||) kcvcnuc |ror roduc| sa|cs |s s|a|cd nc| o| rc|urns and a||ca||c |radc d|scoun|s and a||owanccs
1.5 Fixed Assets:
l|cd /ssc|s arc s|a|cd a| cos| o| acqu|s|||on |nc|ud|nj |acs and du||cs !hcsc arc s|a|cd a| h|s|or|ca| cos| |css accuru|a|cd
dcrcc|a||on
1.6 Depr eci at i on:
lcrcc|a||on on ||cd assc|s |s rov|dcd on S|ra|jh| l|nc Vc|hod ovcr |hc usc|u| |||c o| |hc assc|s as cs||ra|cd |, |hc
ranajcrcn| as undcr
Coru|crs - 3 ,cars
lurn||urc and |||||njs - 5 ,cars
1.7 Inventories:
lnvcn|or|cs o| |radcd ||n|shcd joods arc va|ucd a| cos| or nc| rca||za||c va|uc wh|chcvcr |s |css Cos| |s dc|crr|ncd on
l|rs|-|n-l|rs|-ou| |as|s Cos| corr|scs o| urchasc r|cc and o|hcr rc|a|cd cos|s |ncurrcd |n |r|nj|nj |hc |nvcn|or|cs |o
|hc|r rcscn| |oca||on and cond|||on
1.8 Income Tax:
lncorc !acs arc accoun|cd |or |n accordancc w||h /ccoun||nj S|andard 22 on '/ccoun||nj |or !acs on lncorc |/S 22)
|ssucd |, !hc lns|||u|c o| Char|crcd /ccoun|an|s o| lnd|a !a ccnsc corr|scs |o|h currcn| |a and dc|crrcd |a Currcn| |a
|s rcasurcd a| |hc aroun| ccc|cd |o |c a|d or rccovcrcd |ror |hc |a au|hor|||cs us|nj a||ca||c |a ra|cs lc|crrcd |a
assc|s and ||a||||||cs arc rccojn|zcd |or |u|urc |a conscqucncc a||r||u|a||c |o ||r|nj d|||crcncc |c|wccn |aa||c |ncorc and
accoun||nj |ncorc |ha| arc rcasurcd a| rc|cvan| |a ra|cs /| cach la|ancc Shcc| da|c |hc Coran, rcasscsscs
unrca||zcd dc|crrcd |a assc|s |o |hc c|cn| |hc, |ccorc rcasona||, ccr|a|n or v|r|ua||, ccr|a|n o| rca||sa||on as |hc casc
ra, |c
19 Provi si ons, Conti ngent Li abi l i ti es and Conti ngent assets:
lrov|s|ons |nvo|v|nj su|s|an||a| dcjrcc o| cs||ra||on |n rcasurcrcn| arc rccojn|zcd whcn |hcrc |s a rcscn| o|||ja||on as a
rcsu|| o| as| cvcn|s and || |s ro|a||c |ha| |hcrc w||| |c an ou|||ow o| rcsourccs Con||njcn| l|a||||||cs arc no| rccojn|scd |u|
arc d|sc|oscd |n |hc no|cs Con||njcn| /ssc|s arc nc||hcr rccojn|scd nor d|sc|oscd |n |hc ||nanc|a| s|a|crcn|s
1.10 Borrowi ng Cost s:
lorrow|nj cos| a||r||u|a||c |o |hc acqu|s|||on or cons|ruc||on o| qua|||,|nj assc|s |s ca||a||scd as ar| o| |hc cos| o| such
assc|s / qua|||,|nj assc| |s onc |ha| ncccssar||, |a|cs a su|s|an||a| cr|od o| ||rc |o jc| rcad, |or ||s |n|cndcd usc
/|| o|hcr |orrow|nj cos|s arc charjcd |o rcvcnuc
SCHEDULES FORMING PART OF THE BALANCE SHEET AND
125 text 125
125 125
2 Not es t o Account s
2.1 Company Overvi ew:
!hc Coran, was |ncorora|cd |n ln||cd S|a|cs o| /rcr|ca undcr |hc laws o| |hc S|a|c o| \|rj|n|a on 30
|h
lunc 2003
!hc coran, |s a who||,- owncd Su|s|d|ar, o| lu|n l|d l|s corc |us|ncss |s |o |radc |n harraccu||ca| roduc|s and
|o rcndcr rar|c||nj scrv|ccs rc|a|cd |hcrc|o
2.2 Contingent Liabilities:
Con||njcn| ||a|||||, on accoun| o| 'l|||crcn||a| lr|cc adus|a||c |n rcscc| o| joods su||cd undcr |hc |crrs o| |hc ajrccrcn|
|aroun| unasccr|a|ncd) |rcv|ous ,car - n||)
23 !hc Coran, ra|n|, carr|cs on |rad|nj ac||v||, |n harraccu||ca| roduc|s and carns |ncorc |ror such |us|ncss and
hcncc has on|, onc rcor|a||c scjrcn|
2+ Scrv|cc charjcs rcrcscn|s |ncorc accrucd |or rc|r|urscrcn| o| rar|c||nj and o|hcr ccnscs |, lu|n l|r||cd |hc
ho|d|nj coran, |n |crrs o| |hc ajrccrcn| w||h lu|n l|r||cd ln |crrs o| |hc ajrccrcn| |hc Coran, |s cn||||cd |or
rc|r|urscrcn| o| 100 o| |hc rar|c||nj ccnscs and 50 o| |hc corron and adr|n|s|ra||vc ccnscs lur|hcr |hc
Coran, |s cn||||cd |o a rar|-u o| on a|| |hc rc|r|urscrcn|s ccc| |n rcscc| o| ccnd||urc |ncurrcd |or
a,rcn|s |o con|rac| sa|cs orjan|sa||on and advcr||s|nj ajcnc,
25 !hc Coran, |n |hc car||cr ,car has accoun|cd |or a ||a|||||, o| ks000 - 129 |lS S 292++) |o a ar|, wh|ch |n
accordancc w||h |hc ajrccrcn| has |ccn wr|||cn |ac| |n |hc currcn| ,car |Schcdu|c ') ln |hc o|n|on o| |hc Coran, such
||a|||||, wou|d no| rcsu|| |n|o ou|||ow o| cash a| an, o|n| o| ||rc and |s no| ro|a||c |a||nj |n|o cons|dcra||on |hc
undcrs|and|nj w||h |hc sa|d ar|, as rc||cc|cd |n |hc ajrccrcn| 0n |hc sarc |as|s |hc Coran, docs no| cons|dcr an,
ou|||ow o| cash on |h|s accoun| and no ||a|||||, |s accrucd howcvcr sarc |s cons|dcrcd as con||njcn| as so d|sc|oscd |n
|o|c no 22 a|ovc
2 lchanjc d|||crcncc on |rans|a||on |Schcdu|c ) rcrcscn|s |hc nc| cchanjc d|||crcncc cons|dcr|nj |hc ocra||ons o|
|hc Coran, as |n|cjra| |o |hc arcn| coran, |n accordancc w||h |hc accoun||nj s|andard /S-11 '!hc l||cc|s 0|
Chanjcs |n lorc|jn lchanjc ka|cs |kcv|scd) wh|ch |n |hc rcv|ous ,car wcrc no| so cons|dcrcd
2 !hcrc arc no ducs |o Sra|| Sca|c lndus|r|a| lndcr|a||njs wh|ch arc ou|s|and|nj a| |hc la|ancc Shcc| da|c !h|s
|n|orra||on rcjard|nj Sra|| Sca|c lndus|r|a| lndcr|a||njs has |ccn dc|crr|ncd on |hc |as|s o| |n|orra||on ava||a||c
w||h |hc Coran, !h|s has |ccn rc||cd uon |, |hc aud||ors
28 /dd|||ona| |n|orra||on ursuan| |o |hc rov|s|ons o| arajrahs 3 + and +l o| ar| ll o| Schcdu|c \l o| |hc lnd|an Coran|cs
/c| 195
/) Cll \a|uc o| lror|s |n rcscc| o|
l) Vanajcr|a| kcruncra||on
2004-2005 2003-200+ 2004-2005 2003-200+
US $ lS S Rs.000 ks000
Sa|ar, and /||owanccs 246,000 11180 10,749 52
0|hcr lcrqu|s||cs 20,770 +910 908 221
!o|a| 266,770 121,090 11,657 5,498
2004-2005 2003-2004 2004-2005 2003-2004
US $ US $ Rs.000 Rs.000
lurchasc o| !radcd Coods 3,934,341 16,328,233 171,921 741,646
|lc|udcs lS S 3300+8
ks'000 - 1++22 |lrcv|ous ,car - n||)
d|s|r||u|cd as |rcc sar|cs and |nc|udcd |n
'Sc|||nj and lroro||on lcnscs
Rs.000 US $ Rs.000 US $
18++2 +221585
|2+18) |1015023)
115 20
|5+98) |121090)
308580 01++
|11++2) |25202+8)
1++9 331+108
|1105) |25892)
13003 31318+9
|+85+2) |1093155)
Key Management Personnel Holding Company Sr. No. Description and Nature of Transaction
1 lurchasc o| !radcd joods ||nc|ud|nj joods
d|s|r||u|cd as |rcc sar|cs |u| cc|ud|nj
|rc|jh| |nsurancc c|c
- -
2 Vanajcr|a| kcruncra||on - -
3 Scrv|cc Charjcs lncorc - -
4
lc||ors la|ancc as a| 31
s|
Varch
- -
5
Crcd||ors la|ancc as a| 31
s|
Varch
- -
As at 31
st
March
2005
As at 31
st
March
2004
As at 31
st
March
2005
As at 31
st
March
2004
US $ US $ Rs.000 Rs.000
lc|crrcd !a l|a|||||,
lcrcc|a||on 3411 190 149 +
lc|crrcd !a l|a|||||, 3411 190 149 +
Particulars of timing difference
2.9 Rel at ed Part i es Di scl osure:
a) Name of Rel at ed part i es and descri pt i on of rel at i onshi p:
|) Coran, whosc con|ro| c|s|s - lu|n l|r||cd |lo|d|nj Coran,)
||) Kc, Vanajcrcn| lcrsonnc| - Vrs \|n||a Cu|a |Vanaj|nj l|rcc|or)
b) Related Party Transactions:
Notes
1 kc|a|cd lar|, rc|a||onsh| |s as |dcn||||cd |, |hc Coran, and rc||cd uon |, |hc /ud||ors
2 lrcv|ous cr|od ||jurcs arc j|vcn |n |hc |rac|c|s
2.10 The break up of deferred tax liability is as under:
2.11 Earnings per share is calculated as follows:
lar||cu|ars For the year
ended 31
st
March 2005 in
US $
For the period
ended 31
st
March
2004 in
US $
For the year
ended 31
st
March 2005 in
Rs 000
For the period
ended 31
st
March
2004 in
Rs 000
|c| ro||| a||cr |a 459,311 323 25,593 9900
lncorc !a- lar||cr ,car 6,202 - 271 -
lro||| a||r||u|a||c |o lqu||, Sharcho|dcrs 453,109 323 25,322 9900
\c|jh|cd avcrajc nur|cr o| lqu||, Sharcs 300000 300000 300000 300000
las|c and l||u|cd carn|njs cr sharc 1.51 122 Rs.84.41 ks3300
127 text 127
127 127
2.12 Balance Sheet Abstract and Companys General Business Profile
l kcj|s|ra||on lc|a||s
kcj|s|ra||on |o ' S|a|c Codc '
la|ancc Shcc| la|c 3 1 0 3 0 5
la|c Von|h \car
ll Ca||a| ra|scd dur|nj |hc ,car |/roun| |n ks!housands)
lu|||c lssuc k|jh|s lssuc
| l l | l l
lonus lssuc lr|va|c l|accrcn|
| l l | l l
lll los|||on o| Vo||||sa||on and lc|o,rcn| o| lunds |/roun| |n ks!housands)
!o|a| l|a||||||cs !o|a| /ssc|s
+ + 1 5 2 + + 1 5 2
Sourccs o| lunds
la|d-u Ca||a| kcscrvcs and Sur|us
1 3 8 8 3 5 2 2 2
Sccurcd loans lnsccurcd loans
1 + + | l l
lc|crrcd !a l|a|||||, |nc|)
1 + 9
/||ca||on o| lunds
|c| l|cd /ssc|s lnvcs|rcn|s
3 8 | l l
|c| Currcn| /ssc|s V|sc lcnd||urc
1 1 0 2 1 9 | l l
/ccuru|a|cd losscs
| l l
'!hc coran, |s |ncorora|cd |n \|rj|n|a ln||cd S|a|cs o| /rcr|ca !hcrc |s no rcj|s|ra||on nur|cr/s|a|c codc
2.12 Balance Sheet Abstract and Companys General Business Profile (contd.)
213 !hc |n|orra||on con|a|ncd |n |hcsc ||nanc|a| s|a|crcn|s |or |hc ,car cndcd 31s| Varch 2005 and |hc cr|od cndcd 31s| Varch
200+ d|sc|oscd |n lSl |s c|rac|cd |ror |hc |oo|s o| accoun|s |oca||, ra|n|a|ncd and convcr|cd |n|o lnd|an kuccs as
d|sc|oscd |n '!rans|a||on |o lnd|an kuccs as s|a|cd |n 13 a|ovc Such d|sc|osurcs |n lSl arc on|, |or add|||ona| |n|orra||on
21+ lrcv|ous ,cars ||jurcs havc |ccn rcjroucd or rcc|ass|||cd whcrcvcr ncccssar, |o corrcsond w||h ||jurcs o| currcn| ,car
215 !hc rcv|ous ,car ||jurcs |nc|udc rcsu||s o| ocra||ons |or 9 ron|hs whcrcas |hcsc |or |hc currcn| ,car |nc|udc rcsu||s o|
such ocra||ons |or cn||rc 12 ron|hs and hcncc arc s|r|c||, no| corara||c w||h |hosc o| |hc rcv|ous ,cars
S|jna|urcs |o schcdu|cs 1 |o 11
l\ lcr|orrancc o| Coran, |/roun| |n ks!housands)
!urnovcr !o|a| lcnd||urc
2 9 3 2 5 3 5 8 5 1 0
- - lro|||/loss |c|orc |a - - lro|||/loss a||cr |a
3 9 0 8 + 3 2 5 5 9 3
|l|casc ||c| /ror|a|c |o - |or lro||| - |or loss)
larn|nj cr Sharc |n ks
|cr Sharc o| lS S 1 cach) l|v|dcnd ra|c
|kc|cr no|c no 211 a|ovc)
8 + . + 1 -
\ Ccncr|c |arcs o| !hrcc lr|nc|a| lroduc|s/Scrv|ccs o| Coran, |as cr ronc|ar, |crrs)
l|cr Codc |o |l!C Codc) 3 0 0 + 2 0 0 0 0
lroduc| lcscr|||on Clllk0`lVl /`l!ll
l|cr Codc |o |l!C Codc) 3 0 0 + 2 0 0 0 0
lroduc| lcscr|||on Clll`lVl
l|cr Codc |o |l!C Codc) | l l
lroduc| lcscr|||on |ll
Date: 19
th
May, 2005 Date: 17
th
May, 2005
3
129 text 129
LUPIN CHEMICALS (THAILAND) LIMITED
129 129 129
DIRECTORS REPORT
To the Members,
\our l| rcc| ors havc | casurc | n rcscn| | nj | hc| r rcor| on | hc ocra| | ons o| | hc Coran, |or | hc ,car cndcd
Varch 31 2005
Financial Results
Performance Review
|o|w||hs|and|nj d||||cu|| rar|c| cond|||ons |hc cr|orrancc o| ,our Coran, |or |hc ,car cndcd Varch 31 2005 was sa||s|ac|or,
lur|nj |hc ,car ,our Coran, con||nucd |o u||||sc ||s |u|| caac|||cs o| lr,|hror,c|n |an| kc|ac|nj 'k||ar|c|n w||h |hc ncw roduc|
l l Vandc||c /c|d was |hc rojrcss|vc r|jra||on lowcvcr |h|s chanjc d|d no| ,|c|d |hc an||c|a|cd rcsu||s !hc rcr|scs |ha| h|jhcr
sa|cs vo|urc o| l l Vandc||c ac|d wou|d o||-sc| |hc rcvcnuc |oss duc |o w||hdrawa| o| k||ar|c|n d|d no| ra|cr|a||zc duc |o
corc||||on and s|ujj|sh rar|c| s||ua||on !h|s rcsu||cd |n dcc||n|nj rcvcnucs |ror !ll 10128 rn |l|k 1123 rn) |o 8+3 rn |l|k
9++1 rn) lncrcas|nj |cvc| o| corc||||on and rcs|r|c||vc rcju|a||ons w||| osc rorc cha||cnjcs |n |hc |u|urc
!hc ro|onjcd |rcnd o| h|jh corc||||on |ror Ch|na and lnd|a has a||cc|cd ,our Coran,s ro|||a|||||, wh|ch shrun| |hc con|r||u||on
o| cach roduc| and rcsu||cd |n |owcr ro||| |c| ro||| a||cr |a |or |hc ,car was !ll 85 rn |l|k 95 rn) as aja|ns| 1+ rn
|l|k1+rn) |as| ,car
Dividend
!hc l|rcc|ors con||rr |ha| wh||c rcar|nj |hc annua| accoun|s a||ca||c accoun||nj s|andards had |ccn |o||owcd a|onj w||h rocr
c|ana||on rc|a||nj |o ra|cr|a| dcar|urcs !hc, |ur|hcr con||rr |ha| |hc, had sc|cc|cd such accoun||nj o||c|cs and a||cd |hcr
cons|s|cn||, and radc udjrcn|s and cs||ra|cs |ha| arc rcasona||c and rudcn| so as |o j|vc a |ruc and |a|r v|cw o| |hc s|a|c o|
a||a|rs o| |hc Coran, a| |hc cnd o| |hc ||nanc|a| ,car and o| |hc ro||| o| |hc Coran, |or |hc sa|d ,car !hc, a|so con||rr | ha| |hc
annua| accoun|s havc |ccn rcarcd on a jo|nj conccrn |as|s and |ha| rocr and su|||c|cn| carc has |ccn |a|cn |or ra|n|cnancc
o| adcqua|c accoun||nj rccords |or sa|cjuard|nj |hc assc|s o| ,our Coran, and |or rcvcn||nj and dc|cc||nj |raud and o|hcr
|rrcju|ar|||cs
Directors
lur|nj |hc ,car Vr |||csh l Cu|a and Vr Sh|r|sh Sharra wcrc ao|n|cd as d|rcc|ors o| |hc Coran, |n |acc o| Vs \|n||a l Cu|a
and Vr |||h|| Chandra rcscc||vc|, !hc loard |accs on rccord ||s s|nccrc arcc|a||on o| |hc va|ua||c ju|dancc and suor|
c|cndcd |, |hcr dur|nj |hc|r |cnurc
Employees
!hc cr|o,cc-cr|o,cr rc|a||ons havc |ccn cord|a| dur|nj |hc ,car \our Coran, s|r|vcs con||nuous|, |o crca|c a c||ra|c |o |ns|rc
||s cr|o,ccs |owards |c||cr cr|orrancc !hc loard w|shcs |o crcss ||s s|nccrc arcc|a||on |o a|| |hc cr|o,ccs |or |hc|r va|ua||c
scrv|cc and suor| c|cndcd dur|nj |hc ,car
Auditors
V/s KlVC lhoorcha| /ud|| l|d rc||rc a| |hc conc|us|on o| |hc |or|hcor|nj /nnua| Ccncra| Vcc||nj and arc c||j|||c |or
rc-ao|n|rcn|
Acknowledgements
!hc loard |a|cs |h|s oor|un||, |o crcss ||s s|nccrc arcc|a||on |or |hc ccc||cn| suor| and co-ocra||on rccc|vcd |ror |an|crs
su||crs cus|orcrs and o|hcr |us|ncss assoc|a|cs
Place : lanj|o| Ramesh Chandra Saboo
Date : /r|| 2005 Managing Director
Year Ended \car lndcd Year Ended \car lndcd
March 31, 2005 Varch 31 200+ March 31, 2005 Varch 31 200+
lncorc |ror ocra||ons 846.3 10128 944.1 1123
lro||| |c|orc ln|crcs| lcrcc|a||on and !a 24.0 35 26.8 39
ln|crcs| 8.1 9 9.0 108
lcrcc|a||on and /ror||za||on 3.5 ++ 3.9 +9
lro||| |c|orc !a 12.4 21 13.9 2+0
lrov|s|on |or !a 3.9 9 4.4
lro||| a||cr !a 8.5 1+ 9.5 1+
la|ancc l/| (65.2) |99) (72.7) |891)
la|ancc carr|cd |o la|ancc Shcc| (56.7) |52) (63.2) |2)
|!ha| lah| |n V||||on) |ks |n V||||on)
1 \c havc aud||cd |hc a||achcd ||nanc|a| s|a|crcn|s |a|| crcsscd |n !ha| lah|) |nc|ud|nj la|ancc Shcc|s o|
llll| CllVlC/lS | !l/ll/|l ) llVl!ll ||hc Coran,) as a| 31s| Varch 2005 and 200+ |hc lro||| and loss
/ccoun|s and a|so |hc Cash ||ow S|a|crcn|s o| |hc Coran, |or |hc ,cars cndcd on |ha| da|c annccd |hcrc|o
!hcsc ||nanc|a| s|a|crcn|s arc |hc rcsons||||||, o| |hc Coran,s ranajcrcn| 0ur rcsons||||||, |s |o crcss
an o|n|on on |hcsc ||nanc|a| s|a|crcn|s |ascd on our aud||s
2 \c conduc|cd our aud||s |n accordancc w||h jcncra||, accc|cd aud|||nj s|andards !hosc s|andards rcqu|rc
|ha| wc |an and cr|orr |hc aud|| |o o||a|n rcasona||c assurancc a|ou| whc|hcr |hc ||nanc|a| s|a|crcn|s arc
|rcc o| ra|cr|a| r|ss|a|crcn| /n aud|| |nc|udcs car|n|nj on |cs| |as|s cv|dcncc suor||nj |hc aroun|s and
d|sc|osurcs |n |hc ||nanc|a| s|a|crcn|s /n aud|| a|so |nc|udcs asscss|nj |hc accoun||nj r|nc||cs uscd and
s|jn|||can| cs||ra|cs radc |, ranajcrcn| as wc|| as cva|ua||nj |hc ovcra|| ||nanc|a| s|a|crcn| rcscn|a||on
\c |c||cvc |ha| our aud||s rov|dc a rcasona||c |as|s |or our o|n|on
3 \c rcor| |ha|
a) \c havc o||a|ncd a|| |hc |n|orra||on and c|ana||ons wh|ch |o |hc |cs| o| our |now|cdjc and |c||c|
wcrc ncccssar, |or |hc uroscs o| our aud||
|) ln our o|n|on rocr |oo|s o| accoun| havc |ccn |c| |, |hc Coran, so |ar as acars |ror our
car|na||on o| |hosc |oo|s
c) !hc la|ancc Shcc| lro||| and loss /ccoun| and Cash ||ow S|a|crcn| dca|| w||h |, |h|s rcor| arc |n
ajrccrcn| w||h |hc |oo|s o| accoun|
d) ln our o|n|on |hc ||nanc|a| s|a|crcn|s |a|| crcsscd |n !ha| lah|) |nc|ud|nj |hc la|ancc Shcc|s lro|||
and loss /ccoun|s and Cash ||ow S|a|crcn|s dca|| w||h |, |h|s rcor| cor|, w||h jcncra||, accc|cd
accoun||nj r|nc||cs |n !ha||and and ||s larcn| Coran,s /ccoun||nj Cu|dancc
c) ln our o|n|on and |o |hc |cs| o| our |n|orra||on and accord|nj |o |hc c|ana||ons j|vcn |o us |hc sa|d
||nanc|a| s|a|crcn|s |ojc|hcr w||h |hc no|cs |hcrcon and a||achcd |hcrc|o j|vc a |ruc and |a|r v|cw |n
con|orr||, w||h jcncra||, accc|cd accoun||nj r|nc||cs |n !ha||and
|) ln |hc casc o| |hc la|ancc Shcc|s o| |hc s|a|c o| a||a|rs o| |hc Coran, as a| 31s| Varch 2005 and
200+
||) ln |hc casc o| |hc lro||| and loss /ccoun|s o| |hc ro||| |or |hc ,cars cndcd on |ha| da|c and
|||) ln |hc casc o| |hc Cash ||ow S|a|crcn|s o| |hc cash ||ows |or |hc ,cars cndcd on |ha| da|c
|) 0ur car|na||ons a|so corrchcndcd |hc |rans|a||on o| !ha| lah| aroun|s |n|o lnd|an kucc aroun|s
and |n our o|n|on such |rans|a||on has |ccn radc |n con|orr||, w||h |hc |as|s s|a|cd |n Schcdu|c 1+|
Such lnd|an kucc aroun|s arc rcscn|cd so|c|, |or |hc convcn|cncc o| rcadcrs |n lnd|a
j) !h|s rcor| |s |n|cndcd so|c|, |or conso||da||on w||h lu|n l|r||cds accoun|s and shou|d no| |c uscd |or
o|hcr uroscs
KPMG Phoomchai Audit Ltd.
Place: lanj|o|
Date: /r|| 2005
AUDITORS REPORT
To the Members of
131 text 131
131 131 131
BALANCE SHEETS
AS AT 31
ST
MARCH, 2005 AND 2004
AMOUNT IN THAI BAHT AND INDIAN RUPEE
!hc Schcdu|cs rc|crrcd |o a|ovc |orr an |n|cjra| ar| o| |hc la|ancc Shcc|s
Schedules Thai Baht Indian Rupee Thai Baht Indian Rupee
I. SOURCES OF FUNDS
Shareholders' funds
Share Capital 1 70,000,000.00 78,136,100.00 000000000 805000000
kcscrvcs and Sur|us 2 (42,693,430.27) (47,655,687.67) |5118930095) |50005)
27,306,569.73 30,480,412.33 188109905 2093929++
Loan Funds
Sccurcd loans 3 93,393,449.86 104,248,570.54 15880152+2 1129099
TOTAL 120,700,019.59 134,728,982.87 177,670,851.47 198,102,999.40
Fixed Assets +
Cross l|oc| 176,770,467.92 197,316,499.41 1592+30911 191550+
lcss lcrcc|a||on 141,887,495.45 158,379,079.05 1+1+8++80+ 1533195
|c| l|oc| 34,882,972.47 38,937,420.36 3++55810 38+1828510
lnvcn|or|cs 5 106,681,321.94 119,080,891.99 1191++0 1328092021
Sundr, lc||ors 220,574,742.50 246,212,144.82 235311+2+ 2938+388238
Cash and lan| la|anccs 52,576,705.09 58,687,695.52 5013+99+1 559005020+
loans and /dvanccs 8 2,672,456.58 2,983,076.21 3303025 +159291+
382,505,226.11 426,963,808.54 +3591++50 +8+5909
Less: Current Liabilities and Provision 9
Currcn| l|a||||||cs 294,416,570.15 328,636,608.10 288252588 321+1128
lrov|s|on |or Corora|c !a - nc| 2,282,070.90 2,547,316.00 5103528 59308+0
296,698,641.05 331,183,924.10 293320011 32109812
NET CURRENT ASSETS 85,806,585.06 95,779,884.44 1+3191+33+ 159+81+83
MISCELLANEOUS EXPENSES 10,462.06 11,678.07 18+0 19899+
TOTAL 120,700,019.59 134,728,982.87 177,670,851.47 198,102,999.40
ACCOUNTING POLICIES 1+
NOTES TO ACCOUNTS 15
Expressed In Expressed In
2004 - 2005 2003 - 2004
PROFIT AND LOSS ACCOUNTS
FOR EACH OF THE YEARS ENDED 31
ST
!hc Schcdu|cs rc|crrcd |o a|ovc |orr an |n|cjra| ar| o| |hc lro||| and loss /ccoun|s
Schedules Thai Baht Indian Rupee Thai Baht Indian Rupee
INCOME
Sa|cs ||c|) 831,517,924.30 927,658,026.71 98095999+9 109180151
0|hcr lncorc 10 14,745,714.38 16,450,613.88 3181+229 35+21018
846,263,638.68 944,108,640.59 1,012,828,426.78 1,127,252,718.29
EXPENSES
Cos| o| Va|cr|a|s 11 716,816,797.11 799,695,155.19 8981520 980825808
lcrsonnc| lcnscs 12 38,882,156.34 43,377,711.26 3059920 +12+303
0|hcr lcnscs 13 66,565,544.73 74,261,853.01 028595898 82251519
ln|crcs| and ||nancc Charjcs 8,107,192.66 9,044,546.28 958+2 10558++
lcrcc|a||on 3,480,754.64 3,883,199.49 +382++12 +81+50
/ror||za||on 7,385.00 8,238.85 38500 821932
833,859,830.48 930,270,704.08 991,202,401.99 1,103,183,493.35
Profit before Tax 12,403,808.20 13,837,936.51 21,626,024.79 24,069,224.94
lrov|s|on |or Corora|c !a 3,907,937.52 4,359,773.26 8190939 31330
Net Profit 8,495,870.68 9,478,163.25 14,764,115.40 16,432,091.34
/dd la|ancc |roujh| |orward |ror rcv|ous ,cars (65,189,300.95) (72,715,967.89) |9953+135) |891+805923)
Balance Carried to Balance Sheet (56,693,430.27) (63,237,804.64) (65,189,300.95) (72,715,967.89)
Basic Earnings Per Share 12.14 13.54 2109 23+
ACCOUNTING POLICIES 1+
NOTES TO ACCOUNTS 15
2003 - 2004 2004 - 2005
133 text 133
133 133 133
STATEMENT OF CASH FLOWS
FOR EACH OF THE YEARS ENDED 31ST MARCH, 2005 AND 2004
|o|cs
1 !hc a|ovc Cash ||ow s|a|crcn| has |ccn rcarcd undcr |hc 'lnd|rcc| Vc|hod
2 !hc rcv|ous ,cars ||jurcs havc |ccn rcjroucd whcrcvcr ncccssar,
3 Cash and cash cqu|va|cn|s corr|sc |an| |a|anccs and rarj|n / dcos|| accoun|s
Thai Baht Indian Rupee Thai Baht Indian Rupee
CASH FLOWS FROM OPERATING ACTIVITIES :
|c| lro||| |c|orc !a 12,403,808.20 13,837,936.51 21202+9 2+0922+9+
/dus|rcn| |or
lcrcc|a||on 3,480,754.64 3,883,199.49 +382++12 +81+50
lro||| on Sa|cs o| ||cd /ssc|s - - |3535) |391)
ln|crcs| and ||nancc Charjcs 8,107,192.66 9,044,546.28 958+2 10558++
V|scc||ancous lcnd||urc 7,385.00 8,238.85 38500 821932
0cra||nj lro||| |c|orc \or||nj Ca||a| Chanjcs 23,999,140.50 26,773,921.13 3538 39928830+
/dus|rcn| |or
!radc and 0|hcr lc||ors 44,020,221.41 48,810,058.61 |183918+) |20509+22)
lnvcn|or|cs 12,485,422.66 13,790,028.24 +133821+ 51+392109+
Currcn| l|a||||||cs 6,466,139.95 7,571,228.43 |92008815) |102590391)
Cash Ccncra|cd |ror 0cra||on 86,970,924.52 96,945,236.41 |12112+8+5) |13539+1)
l|rcc| !a la|d (6,732,241.90) (7,506,065.66) |23083301) |2388)
ln|crcs| la|d |nc|) (8,422,388.34) (9,395,339.47) |9+838+) |10558391+5)
Net Cash Flow from Operating Activities 71,816,294.28 80,043,831.28 |2399950+) |2+083)
CASH FLOWS FROM INVESTING ACTIVITIES :
lurchascs o| ||cd /ssc|s - nc| (3,972,689.20) (4,434,434.87) |2935509) |309898093)
\r|||cn o|| o| ||cd /ssc|s 64,823.16 72,277.82 2080101 23058313
Net Cash Flow from Investing Activities (3,907,866.04) (4,362,157.05) |25255+08) |2883980)
CASH FLOWS FROM FINANCING ACTIVITIES :
lncrcasc |lccrcasc) |n Sccurcd loans (65,466,702.56) (72,880,499.42) 51081351 2500231
lccrcasc |n lnsccurcd loan - - |203500000) |221812500)
Net Cash Flow from Financing Activities (65,466,702.56) (72,880,499.42) 35331351 398+2+31
/dd l||cc| o| |orc|jn Currcnc, !rans|a||on - (13,981.33) - 1185
2,441,725.68 2,787,193.48 91905339 102053953
50,134,979.41 55,900,502.04 +09++3202 +5399251
52,576,705.09 58,687,695.52 5013+99+1 559005020+
CASH AND CASH EQUIVALENTS AT THE END OF YEARS
2004 - 2005 2003 - 2004
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF YEARS
|o|c \or||nj Ca||a| loans |ror lan|s arc sccurcd aja|ns| ||cd dcos||s |ojc|hcr w||h |hc ror|jajc o| a or||on o| |hc Coran,s
|and rach|ncr, and cqu|rcn|
Authorised
00000 sharcs o| lah| 100/- cach 70,000,000.00 78,136,100.00 70,000,000.00 78,050,000.00
00000 sharcs o| lah| 100/- cach |u||, a|d u 70,000,000.00 78,136,100.00 000000000 805000000
70,000,000.00 78,136,100.00 70,000,000.00 78,050,000.00
kcva|ua||on kcscrvc 14,000,000.00 15,627,220.00 1+00000000 151000000
|orc|jn Currcnc, !rans|a||on kcscrvc - (45,103.03) - 298933
lro||| and loss /ccoun| (56,693,430.27) (63,237,804.64) |518930095) |215989)
(42,693,430.27) (47,655,687.67) (51,189,300.95) (57,076,070.56)
\or||nj Ca||a| loans |ror lan|s 93,393,449.86 104,248,570.54 158,860,152.42 177,129,069.96
2004 - 2005 2003 - 2004
1
3
5
t
e
x
t
1
3
5
L
U
P
I
N

C
H
E
M
I
C
A
L
S

(
T
H
A
I
L
A
N
D
)

L
I
M
I
T
E
D
1
3
5
1
3
5
1
3
5
AMOUNT IN THAI BAHT

Particulars /s a| As at l |o |or |hc Up to As at /s a|
1s| /r|| /dd|||ons lcduc||ons 31st March 31s| Varch \car lcduc||ons 31st March 31st March 31s| Varch
200+ 2005 200+ 2005 2005 200+
land
- /| Cos| 53510139 - - 5,351,701.39 - - - - 5,351,701.39 53510139
- /| /ra|scd \a|uc | nc|
o| |ra|rrcn| ) 1+00000000 - - 14,000,000.00 - - - - 14,000,000.00 1+00000000
!o|a| land 193510139 - - 19,351,701.39 - - - - 19,351,701.39 193510139
lu||d|njs 218980 - - 26,618,968.07 19081919+0 13309+8+2 - 20,412,867.82 6,206,100.25 530+8
Vach|ncr, and lqu|rcn|
- /| Cos| 9031+18 +8+50180 133000000 99,546,434.67 903985933 1+010235 - 91,799,620.98 7,746,813.69 5328232+
- /| /ra|scd \a|uc 2500000000 - - 25,000,000.00 2500000000 - - 25,000,000.00 - -
!o|a| Vach|ncr, and
lqu|rcn| 121031+18 +8+50180 133000000 124,546,434.67 1153985933 1+010235 - 116,799,620.98 7,746,813.69 5328232+
|urn||urc |||urcs and
lqu|rcn|
5159828 +51+0 31253039 2,491,003.79 +080582 52++138 301023 1,543,367.97 947,635.82 10920+9
\ch|c|cs 323000 - - 3,762,360.00 290219 22+31+9 - 3,131,638.68 630,721.32 85508281
Total 175,924,309.11 5,302,689.20 4,456,530.39 176,770,467.92 141,468,448.04 3,480,754.64 3,061,707.23 141,887,495.45 34,882,972.47 34,455,861.07
Gross Block Depreciation Net Block
1
3
6
A
n
n
u
a
l

R
e
p
o
r
t

2
0
0
4
-
0
5
ST
AMOUNT IN INDIAN RUPEE
Particulars /s a| As at l |o |or |hc Up to As at /s a|
1s| /r|| /dd|||ons lcduc||ons 31st March 31s| Varch \car lcduc||ons 31st March 31st March 31s| Varch
200+ 2005 200+ 2005 2005 200+
land
- /| Cos| 591+05 - - 5,973,729.64 - - - - 5,973,729.64 591+05
- /| /ra|scd \a|uc | nc| o|
|ra|rrcn| )
151000000 - - 15,627,220.00 - - - - 15,627,220.00 151000000
!o|a| land 2151+05 - - 21,600,949.64 - - - - 21,600,949.64 2151+05
lu||d|njs 29801+9+0 - - 29,712,890.73 2123+013 1+85++55 - 22,785,455.45 6,927,435.28 8+038092
Vach|ncr, and lqu|rcn|
- /| Cos| 100502981 5+0815+22 1+8295000 111,116,716.77 1009++3190 15388 - 102,469,490.93 8,647,225.85 2805991
- /| /ra|scd \a|uc 28500000 - - 27,905,750.00 28500000 - - 27,905,750.00 - -
!o|a| Vach|ncr, and
lqu|rcn| 13+95002981 5+0815+22 1+8295000 139,022,466.77 1289+3190 15388 - 130,375,240.93 8,647,225.85 2805991
|urn||urc |||urcs and
lqu|rcn| 5532+00 510855 3+808138 2,780,533.16 +5+9933+ 58530+1 3+1380355 1,722,753.63 1,057,779.53 12033135+
\ch|c|cs +195031+0 - - 4,199,659.10 32+11+0 250+3903 - 3,495,629.04 704,030.06 953+133
Total 196,155,604.66 5,919,020.77 4,969,031.38 197,316,499.41 157,737,319.56 3,885,322.75 3,413,803.55 158,379,079.05 38,937,420.36 38,418,285.10
Gross Block Depreciation Net Block
137 text 137
137 137 137
ST
||n|shcd Coods/ !radcd Coods 53,794,609.85 60,047,157.35 28+5+09 0022989
kaw and lac||nj Va|cr|a|s 27,157,435.19 30,313,943.88 85020 +511190
\or|-|n-lroccss 5,560,458.77 6,206,750.89 +35+81 15121
S|orcs Sarcs and |uc| 1,011,382.03 1,128,934.96 15191181 193815
Va|cr|a|s |n !rans|| 19,157,436.10 21,384,104.91 +150900 +28210+
106,681,321.94 119,080,891.99 119,166,744.60 132,870,920.21
lc||s ou|s|and|nj |or a cr|od ccccd|nj s| ron|hs 8,769,869.03 9,789,190.91 1055983000 11+210+5
0|hcr lc||s ou|s|and|nj cons|dcrcd jood 211,804,873.47 236,422,953.91 252928+2+ 28209193
220,574,742.50 246,212,144.82 263,537,114.24 293,843,882.38
Cash on hand 216,572.18 241,744.36 31055 +0938+01
lan| la|anccs - ln Currcn| /ccoun|s 2,781,451.01 3,104,739.06 312+131 3+83+530
lan| la|anccs - ln Sav|nj /ccoun|s 272,907.67 304,627.73 +99358812 558505
Varj|n/lcos|| /ccoun|s 49,305,774.23 55,036,584.37 +++1813+3 +95+92198
52,576,705.09 58,687,695.52 50,134,979.41 55,900,502.04
2,371,616.17 2,647,269.12 19+133 220+82032
la|anccs w||h kcvcnuc lcar|rcn| 300,840.41 335,807.09 15288892 195++11+
2,672,456.58 2,983,076.21 3,730,306.25 4,159,291.46
SCHEDULE 9 - CURRENT LIABILITIES AND PROVISION
Current Liabilities
Sundr, Crcd||ors and 0|hcr l|a||||||cs 294,162,412.41 328,352,909.61 28803893++ 321111322
Soc|a| Sccur||, \||hho|d|nj !a and lrov|dcn| |und 254,157.74 283,698.49 22832++ 25503+
294,416,570.15 328,636,608.10 288,265,625.88 321,416,172.86
Provision
lrov|s|on |or Corora|c lncorc !a - nc| 2,282,070.90 2,547,316.00 5103528 59308+0
296,698,641.05 331,183,924.10 293,372,001.16 327,109,781.26
2004 - 2005 2003 - 2004
| /| |owcr o| cos| and nc| rca||za||c va|uc as |a|cn va|uc
and ccr||||cd |, |hc Vanajcrcn| )
/dvanccs rccovcra||c |n cash or |n ||nd or |or va|uc |o |c
rccc|vcd
kaw and lac||nj Va|cr|a|s Consurcd 443,100,432.03 494,331,703.98 +30882390 +951++15
lurchasc o| ||n|shcd Coods / !radcd Coods 263,789,477.56 294,288,816.96 +31+25+81 +80+0355+
9,926,887.52 11,074,634.25 2898952 8113+118
716,816,797.11 799,695,155.19 869,815,207.77 968,082,580.87
lccrcasc |n S|oc| o| ||n|shcd / !radcd Coods and
\or|-|n-lroccss
ln|crcs| on lcos||s w||h lan|s 462,126.78 515,557.88 +8881++ 5++038+
lchanjc ka|c l||||crcncc ||c|) 6,752,891.37 7,533,660.67 22209882 2+1581225
V|scc||ancous lncorc 7,530,696.23 8,401,395.33 9153383 102122510
14,745,714.38 16,450,613.88 31,871,427.29 35,472,101.78
2004 - 2005 2003 - 2004
SCHEDULE 13 - OTHER EXPENSES
Consura||c S|orcs 4,264,718.30 4,757,805.03 +83+915+ 5+129++50
kca|rs and Va|n|cnancc
- l|an| and Vach|ncr, 1,280,365.03 1,428,400.83 1281992+ 1+28255
- 0|hcrs 113,096.11 126,172.28 98850 8193
kcn| 1,343,589.90 1,498,935.76 1102 1992+38
ka|cs and !acs 96,000.00 107,099.52 19200000 2139120
lnsurancc 1,548,415.07 1,727,442.82 1+358903 1598800
lowcr and |uc| 10,970,225.64 12,238,603.13 9083959 1011291332
Sc|||nj and lroro||on lcnscs 23,532,123.53 26,252,907.65 282388052 31+280550
|rc|jh| and |orward|nj 15,322,174.87 17,093,724.73 13+3+0352 1+95+38121
los|ajc and !c|choncs 1,918,232.87 2,140,018.95 22111382 2529290
!ravc|||nj and Convc,ancc 3,172,522.69 3,539,329.76 3810 +2150238
\ch|c|c Va|n|cnancc 670,825.03 748,385.82 81+05+ 80058
lcja| lro|css|ona| Charjcs 684,169.00 763,272.62 895+281 998293
V|scc||ancous lcnscs 1,649,086.69 1,839,754.11 2329002 259218585
66,565,544.73 74,261,853.01 70,285,958.98 78,226,515.19
ST
Sa|ar|cs \ajcs and lonus 35,112,393.00 39,172,087.88 338880300 3125+
Con|r||u||on |o lrov|dcn| |unds 1,593,476.00 1,777,713.70 1+015900 15599112
\c||arc lcnscs 2,176,287.34 2,427,909.68 105550 19058+23
38,882,156.34 43,377,711.26 37,059,927.70 41,246,773.03
139 text 139
139 139 139
a) Accounts
!hc ||nanc|a| s|a|crcn|s arc rcscn|cd |n !ha| lah| and lnd|an kucc and |n con|orr||, w||h jcncra||, accc|cd
accoun||nj s|andards |n !ha||and ccc| |or ccr|a|n accoun||nj s|andards covcr|nj lra|rrcn| o| /ssc|s kc|a|cd
lar|, l|sc|osurc and ||nanc|a| lns|rurcn|s l|sc|osurc and lrcscn|a||on |ha| arc ccr|cd |n accordancc w||h |hc
announccrcn| o| !hc lns|||u|c o| Ccr||||cd /ccoun|an|s and /ud||ors o| !ha||and |o 00+/25++-25+ da|cd lcccr|cr
21 2001 '/ccoun||nj S|andards w||h lcr||on o| ln|orccrcn| on |on-lu|||c Coran|cs /ccord|nj|, |hc ||nanc|a|
s|a|crcn|s arc |n|cndcd so|c|, |o rcscn| |hc ||nanc|a| os|||on rcsu||s o| ocra||ons and cash ||ows |n accordancc
w||h accoun||nj r|nc||cs and rac||ccs jcncra||, accc|cd |n !ha||and
!hc accoun|s arc rcarcd as cr h|s|or|ca| cos| convcn||on and on accrua| |as|s un|css o|hcrw|sc scc|||cd hcrc|n
a||cr
b) Foreign Currency Translation
!hc accoran,|nj ||nanc|a| s|a|crcn|s |or |hc ,car cndcd 31s| Varch 2005 and 200+ havc |ccn rcarcd |ascd
on |hc aud||cd ||nanc|a| s|a|crcn|s |crcsscd |n !ha| lah|) and havc |ccn |rans|a|cd |n|o lnd|an kucc |, |hc
|o||ow|nj |as|s
|) /ssc|s and l|a||||||cs arc |rans|a|cd a| |hc cchanjc ra|c rcva|||nj as a| |hc la|ancc Shcc| da|c on 31s|
Varch 2005|1 !ll - 11123 l|k) and on 31s| Varch 200+|1 !ll - 1115 l|k)
||) lncorc and lcnscs arc |rans|a|cd a| |hc avcrajc cchanjc ra|c rcva|||nj dur|nj |hc ,cars 2005 |1 !ll
- 11152 l|k) and 200+|1 !ll - 111295 l|k)
|||) !hc l|||crcncc ar|s|nj on accoun| o| cr|od cnd |rans|a||on |s crcd||cd or dc|||cd |o |orc|jn Currcnc,
!rans|a||on kcscrvc
c) Cash and Cash Equivalents
Cash and cash cqu|va|cn|s corr|sc cash |a|anccs and ca|| dcos|| lan| ovcrdra||s |ha| arc rca,a||c on dcrand
arc a coroncn| o| ||nanc|nj ac||v|||cs |or |hc urosc o| |hc s|a|crcn| o| cash ||ows
d) Fixed Assets
Owned assets
!hc Coran, va|ucs ||s ||cd assc|s as |o||ows
SCHEDULES FORMING PART OF ACCOUNTS
AS AT 31
ST
(AMOUNT IN THAI BAHT AND INDIAN RUPEE)
SCHEDULE 14 - ACCOUNTING POLICIES
Subsequent expenditure
Su|scqucn| ccnd||urc rc|a||nj |o an ||cr o| rocr|, |an| and cqu|rcn| |s addcd |o |hc carr,|nj aroun| o| |hc
assc| whcn || |s ro|a||c |ha| |hc |u|urc cconor|c |cnc|||s |n cccss o| |hc or|j|na||, asscsscd s|andard o| cr|orrancc
o| |hc c|s||nj assc| w||| ||ow |o |hc Coran, /|| o|hcr su|scqucn| ccnd||urc |s rccojn|zcd as an ccnsc |n |hc
cr|od |n wh|ch || |s |ncurrcd
|) land -a| ara|scd va|uc dc|crr|ncd |, |ndccndcn| ara|scr
||) l|an| and rach|ncr,
as a| 31s| lcccr|cr 1991 -a| ara|scd va|uc dc|crr|ncd |, |ndccndcn| ara|scr |css
accuru|a|cd dcrcc|a||on
acqu|rcd a||cr 31s| lcccr|cr 1991 -a| cos| |css accuru|a|cd dcrcc|a||on
|||) 0|hcr ||crs -a| cos| |css accuru|a|cd dcrcc|a||on
Number of
Building and improvements 20
Plant and machinery 10
Furnitures, fixtures and office equipments 5
Vehicles 5
SCHEDULE 14 - ACCOUNTING POLICIES (Continued)
Depreciation
lcrcc|a||on |s charjcd |o |hc |ncorc s|a|crcn| on a s|ra|jh|-||nc |as|s ovcr |hc cs||ra|cd usc|u| ||vcs o| cach
ar| o| an ||cr o| rocr|, |an| and cqu|rcn| !hc cs||ra|cd usc|u| ||vcs arc as |o||ows
lcrcc|a||on charjcs on |hc rcva|ua||on |ncrcrcn| |n |an| and rach|ncr, arc |rca|cd as a dcduc||on |hcrc|o
e ) I nvent ori es
lnvcn|or|cs arc s|a|cd a| |hc |owcr o| cos| and nc| rca||sa||c va|uc.
Cos| o| ||n|shcd joods |roduc||on) and ra|cr|a| |n roccss arc ca|cu|a|cd us|nj |hc avcrajc cos| rc|hod and
corr|scs a|| cos|s o| urchasc cos| o| convcrs|on and o|hcr cos|s |ncurrcd |n |r|nj|nj |hc |nvcn|or|cs |o |hc|r
rcscn| |oca||on and cond|||on Cos| o| ||n|shcd joods ||rad|nj) raw ra|cr|a|s su||cs and o|hcr arc ca|cu|a|cd
us|nj |hc ||rs| |n ||rs| ou| rc|hod
|c| rca||sa||c va|uc |s |hc cs||ra|cd sc|||nj r|cc |n |hc ord|nar, coursc o| |us|ncss |css |hc cs||ra|cd cos|s
ncccssar, |o ra|c |hc sa|c
/n a||owancc |s radc |or a|| dc|cr|ora|cd darajcd o|so|c|c and s|ow-rov|nj |nvcn|or|cs
f) Sundry Debtors
Sundr, dc||ors |nc|ud|nj |a|anccs w||h rc|a|cd ar||cs arc s|a|cd a| |hc|r |nvo|cc va|uc |css |ra|rrcn| |osscs
/n, |ra|rrcn| |oss on dou|||u| rccc|va||cs |s asscsscd r|rar||, on ana|,s|s o| a,rcn| h|s|or|cs and |u|urc
ccc|a||ons o| cus|orcr a,rcn|s /||owanccs radc arc |ascd on h|s|or|ca| wr||c-o|| a||crns and |hc aj|nj o|
dc||ors lad dc||s arc wr|||cn o|| whcn |ncurrcd
g) Foreign Currency Transactions
!ransac||ons |n |orc|jn currcnc|cs arc |rans|a|cd |o lah| a| |hc |orc|jn cchanjc ra|cs ru||nj a| |hc da|c o| |hc
|ransac||ons
Vonc|ar, assc|s and ||a||||||cs dcnor|na|cd |n |orc|jn currcnc|cs a| |hc la|ancc Shcc| da|c arc |rans|a|cd |o
!ha| lah| a| |hc |orc|jn cchanjc ra|cs ru||nj a| |ha| da|c |ccc| |ransac||ons covcrcd |, |hc |orc|jn currcnc,
cchanjc |orward os|||on wh|ch arc |rans|a|cd |, |hc |orward cchanjc ra|c) |orc|jn cchanjc d|||crcnccs
ar|s|nj on |rans|a||on arc rccojn|zcd |n |hc |ncorc s|a|crcn|
|ur|cr o| ,cars
AS AT 31
ST
141 text 141
141 141 141
SCHEDULE 14 - ACCOUNTING POLICIES (Continued)
|on-ronc|ar, assc|s and ||a||||||cs |ha| arc rcasurcd |n |crrs o| h|s|or|ca| cos| |n a |orc|jn currcnc, arc
|rans|a|cd us|nj |hc |orc|jn cchanjc ra|cs ru||nj a| |hc da|c o| |hc |ransac||ons
h) Revenue Recognition
kcvcnuc cc|udcs va|uc addcd |acs or o|hcr sa|cs |acs and |s arr|vcd a| a||cr dcduc||on o| |radc d|scoun|s
Sale of goods
kcvcnuc |ror |hc sa|c o| joods |s rccojn|zcd |n |hc |ncorc s|a|crcn| whcn |hc s|jn|||can| r|s|s and rcwards o|
owncrsh| havc |ccn |rans|crrcd |o |hc |u,cr |o rcvcnuc |s rccojn|zcd || |hcrc arc s|jn|||can| unccr|a|n||cs rcjard|nj
rccovcr, o| |hc cons|dcra||on duc assoc|a|cd cos|s |hc ro|a||c rc|urn o| joods or |hc con||nu|nj ranajcrcn|
|nvo|vcrcn| w||h |hc joods
Interest income
ln|crcs| |ncorc |s rccojn|zcd |n |hc |ncorc s|a|crcn| as || accrucs
i) Expense Recognition
Operating leases
la,rcn|s radc undcr ocra||nj |cascs arc rccojn|zcd |n |hc |ncorc s|a|crcn| on a s|ra|jh| ||nc |as|s ovcr |hc
|crr o| |hc |casc lcasc |nccn||vcs rccc|vcd arc rccojn|zcd |n |hc |ncorc s|a|crcn| as an |n|cjra| ar| o| |hc |o|a|
|casc a,rcn|s radc Con||njcn| rcn|a|s arc charjcd |o |hc |ncorc s|a|crcn| |n |hc accoun||nj cr|od |n wh|ch
|hc, arc |ncurrcd
Interest and other expenses
ln|crcs| ccnsc and s|r||ar cos|s arc charjcd |o |hc |ncorc s|a|crcn| |n |hc cr|od |n wh|ch |hc, arc |ncurrcd
ccc| |o |hc c|cn| |ha| |hc, arc ca||a||zcd as |c|nj d|rcc||, a||r||u|a||c |o |hc acqu|s|||on cons|ruc||on or roduc||on
o| an assc| wh|ch ncccssar||, |a|cs a su|s|an||a| cr|od o| ||rc |o |c rcarcd |or ||s |n|cndcd usc or sa|c
j) Income Tax
lncorc |a |s |hc ccc|cd |a a,a||c on |hc |aa||c |ncorc |or |hc ,car us|nj |a ra|cs cnac|cd or su|s|an||a||,
cnac|cd a| |hc la|ancc Shcc| da|c and an, adus|rcn| |o |a a,a||c |n rcscc| o| rcv|ous ,cars
k) Basic Earnings per Share
las|c carn|njs cr sharc |s dc|crr|ncd |, d|v|d|nj |hc nc| ro||| |, |hc wc|jh|cd avcrajc nur|cr o| sharcs
ou|s|and|nj dur|nj |hc ,car |00000 sharcs)
1. General
lu|n Chcr|ca|s |!ha||and) l|r||cd was |ncorora|cd as a ||r||cd coran, |n !ha||and on lanuar, 198 |o
cnjajc |n ranu|ac|ur|nj o| harraccu||ca| chcr|ca|s |or rcd|c|nc !hc nur|cr o| cr|o,ccs o| Coran, as a|
Varch 31 2005 and 200+ wcrc 130 and 132 rcscc||vc|, !hc cr|o,cc ccnscs |or |hc ,car cndcd Varch 31 2005
and 200+ aroun|cd |o aro|ra|c|, lah| 389 r||||on and lah| 31 r||||on |kuccs +3+ r||||on and
kuccs +12 r||||on) rcscc||vc|, !hc rcj|s|crcd o|||cc o| |hc Coran, |s |oca|cd a| 1 Cl lousc Sa koad
S|ha,a lanjra| lanj|o| !hc |ac|or, |s |oca|cd a| 309 So| lanjoo lndus|r|a| ls|a|c Su|hurv|| koad
Saru|ra|arn
SCHEDULE 15 - NOTE TO ACCOUNTS
AS AT 31
ST
2. Contingent Liabilities
/s a| Varch 31 2005 |hc Coran,
a) \as con||njcn||, ||a||c |or |an| juaran|ccs |ssucd |, |oca| ||nanc|a| |ns|||u||ons |n |avour o| jovcrnrcn|
ajcnc|cs |o|a|||nj aro|ra|c|, lah| 112 r||||on |kucc 125 r||||on)
|) lad unuscd |c||crs o| crcd|| |o|a|||nj aro|ra|c|, lah| 021 r||||on |kucc 023 r||||on)
3. The Company operates solely in the pharmaceuticals segment and hence no separate
disclosure for segment wise information is required.
4. Consumption of raw materials and packing materials
SCHEDULE 15 - NOTE TO ACCOUNTS
AS AT 31
ST
Value Value
l|cr ln|| Quantity Rs. 000 0uan|||, ks 000
kaw ra|cr|a| Vc|r|c !on 1,143 488,298 81 +390
lac||nj Va|cr|a|s 6,034 52
494,332 +952
% `
lror|cd 94.9% 469,021 95` +2953
lnd|jcnous 5.1% 25,311 35` 109
100.0% 494,332 1000` +952
Expressed In Indian Rupee
2004 - 2005 2003 - 2004
Value \a|uc
l|cr ln|| Quantity THB 000 0uan|||, !ll 000
kaw ra|cr|a| Vc|r|c !on 1,143 437,691 81 +259
lac||nj Va|cr|a|s 5,409 518
443,100 +30883
% `
lror|cd 94.9% 420,412 95` +1590
lnd|jcnous 5.1% 22,688 35` 1+923
100.0% 443,100 1000` +30883
Expressed In Thai Baht
2004 - 2005 2003 200+
143 text 143
143 143 143
6. a) CIF Value of Imports:
b) Expenditure in foreign currencies on account of:
Value \a|uc
% Rs. 000 0uan|||, ks 000
lnd|jcnous 100% 4,758 100` 5+13
Expressed In Indian Rupee
2004 2005 2003 - 200+
SCHEDULE 15 - NOTE TO ACCOUNTS (Continued)
5. Consumption of Stores and Spares:
2004 - 2005 2003 - 200+
Rs. 000 ks 000
| ) Corr|ss|on 23,729 29803
|| ) ln|crcs| 1,811 238
||| ) !ravc|||nj 2,777 35+1
!o|a| 28,317 3512
Expressed in Indian Rupee
2004 - 2005 2003 - 200+
THB 000 !ll 000
| ) Corr|ss|on 21,270 28
|| ) ln|crcs| 1,624 2128
||| ) !ravc|||nj 2,489 3181
!o|a| 25,383 3208
Expressed in Thai Baht
Value \a|uc
% THB 000 0uan|||, !ll 000
lnd|jcnous 100% 4,265 100` +83
Expressed In Thai Baht
2004 - 2005 2003 - 200+
THB 000 !ll 000
|) kaw Va|cr|a|s 440,994 +129+
||) !radcd Coods 263,789 +31+3
!o|a| 704,783 8++590
2004 - 2005 2003 - 200+
AS AT 31
ST
2004 - 2005 2003 - 200+
Rs. 000 ks 000
|) kaw Va|cr|a|s 491,981 +5900
||) !radcd Coods 294,289 +80+08
!o|a| 786,270 9+0008
c) Earnings (loss) in foreign exchange on account of:
7. Managerial Remuneration:
8. Auditors Remuneration
2004 - 2005 2003 - 200+
THB 000 !ll 000
470,504 520391
38,304 +2+23
!o|a| 508,808 5281+
| ) |0l \a|uc o| lor|s
|| ) |rc|jh| lnsurancc and Corr|ss|on
2004 - 2005 2003 - 200+
Rs. 000 ks 000
524,904 59182
42,732 +21
!o|a| 567,636 2398
| ) |0l \a|uc o| lor|s
|| ) |rc|jh| lnsurancc and Corr|ss|on
2004 - 2005 2003 - 200+
THB 000 !ll 000
1,980 195
Con|r||u||on |o lrov|dcn| and
0|hcr |unds
68
!o|a| 2,048 2031
Sa|ar, and /||owanccs
2004 - 2005 2003 - 200+
THB 000 !ll 000
|or s|a|u|or, aud|| 500 500
57 9+
!o|a| 557 59+
kc|r|urscrcn| o| ou|-o|-oc|c| ccnscs
AS AT 31
ST
2004 - 2005 2003 - 200+
Rs. 000 ks 000
2,209 218
Con|r||u||on |o lrov|dcn| and
0|hcr |unds
76 +
!o|a| 2,285 221
145 text 145
145 145 145
9. Future obligation of minimum lease rent payments under non cancellable operating
leases in respect of fixed assets are:
10. Basic earnings per share has been calculated by dividing the profit for the year attributable to
equity shareholders by the weighted average number of equity shares outstanding during the
period. The Company has not issued any potential equity shares and accordingly, the basic
earnings per share and diluted earnings per share are the same. Earnings per share has been
calculated as under:
2004 - 2005 2003 - 200+
THB 000 !ll 000
l |o onc ,car 340 -
566 -
!o|a| 906 -
|ror onc ,car |o ||vc ,cars
2004 - 2005 2003 - 200+
Rs. 000 ks 000
9,478 1+32
700,000 00000
13.54 23+
lro||| a||cr |a
\c|jh|cd avcrajc nur|cr o| sharcs
las|c larn|njs cr Sharc |n kucc
2004 - 2005 2003 - 200+
Rs. 000 ks 000
379 -
632 -
!o|a| 1,011 -
l |o onc ,car
|ror onc ,car |o ||vc ,cars
2004 - 2005 2003 - 200+
Rs. 000 ks 000
558 55
63 105
!o|a| 621 1
|or s|a|u|or, aud||
kc|r|urscrcn| o| ou|-o|-oc|c| ccnscs
2004 - 2005 2003 - 200+
THB 000 !ll 000
8,496 1++
700,000 00000
12.14 2109
\c|jh|cd avcrajc nur|cr o| sharcs
lro||| a||cr |a
las|c larn|njs cr Sharc |n lah|
AS AT 31
ST
11. Details of capacities, production, turnover and stocks:
a) Details of production and purchases of finished goods:
b) Details of Turnover
Value \a|uc
Quantity Rs. 000 0uan|||, ks 000
31st March, 31s| Varch 31st March, 31st March, 31s| Varch 31s| Varch
C|ass|||ca||on ln|| 2005 200+ 2005 2005 200+ 200+
lu|| lrujs
ln|crrcd|a|cs and
Chcr|ca|s Vc|r|c !on 429.45 39293 226.15 294,289 2805 +80+0
Quantity
Production Purchase of Traded Goods
Value \a|uc
C|ass|||ca||on ln|| Quantity THB 000 0uan|||, !ll 000
and Chcr|ca|s Vc|r|c !on 648.18 831,518 532 98095
2004 - 2005 2003 - 200+
lu|| drujs ln|crrcd|a|cs
Value \a|uc
C|ass|||ca||on ln|| Quantity Rs. 000 0uan|||, ks 000
and Chcr|ca|s Vc|r|c !on 648.18 927,658 532 109181
2003 - 200+
lu|| drujs ln|crrcd|a|cs
2004 - 2005
AS AT 31
ST
Value Value
Quantity THB 000 0uan|||, THB 000
31st March, 31s| Varch 31st March, 31st March, 31s| Varch 31st March,
C|ass|||ca||on ln|| 2005 200+ 2005 2005 200+ 2004
lu|| lrujs
ln|crrcd|a|cs and
Chcr|ca|s Vc|r|c !on 429.45 39293 226.15 263,789 2805 431,643
Quantity
Production Purchase of Traded Goods
147 text 147
147 147 147
c ) Details of stock
12. PROMOTIONAL PRIVILEGES
l, v|r|uc o| |hc lndus|r|a| lnvcs|rcn| lroro||on /c| ll 2520 |hc Coran, has |ccn jran|cd ccr|a|n r|v||cjcs
rc|a||nj |o harraccu||ca| chcr|ca|s |or rcd|c|nc |or |hc ccr||on |ror a,rcn| o| |ror| du|, |or |ror|cd
su||cs |o |c uscd |n roduc||on |or cor||nj and joods |ror|cd |or rc-cor||nj c|r|nj |n /ujus| 2005
/s a roro|cd coran, |hc Coran, rus| cor|, w||h ccr|a|n |crrs and cond|||ons as rcscr||cd |n |hc
roro||ona| ccr||||ca|cs
\a|uc Value
C|ass|||ca||on ln|| 0uan|||, !ll 000 Quantity THB 000
lu|| lrujs-
||n|shcd Coods lroduc||on Vc|r|c !on 588 ++39 52.95 38,119
||n|shcd Coods !rad|nj Vc|r|c !on 15+0 1810 15.51 15,676
Va|cr|a|s |n lroccss +3 5,560
kaw Va|cr|a|s - lror| Vc|r|c !on 21+0 159 72.11 25,142
kaw Va|cr|a|s - loca| Vc|r|c !on 2932 510 26.76 930
lac||nj Va|cr|a|s 188 1,086
0|hcrs S|orcs 1519 1,011
Va|cr|a| |n !rans|| +1509 19,157
!o|a| 1191 106,681
31s| Varch 200+ 31st March, 2005
lrcsscd |n !ha| lah|
C|os|nj S|oc| Closing Stock
\a|uc \a|uc
C|ass|||ca||on ln|| 0uan|||, ks000 0uan|||, ks000
lu|| lrujs-
||n|shcd Coods lroduc||on Vc|r|c !on 588 +988+ 5295 +25+9
||n|shcd Coods !rad|nj Vc|r|c !on 15+0 20189 1551 1+98
Va|cr|a|s |n lroccss 1 20
kaw Va|cr|a|s - lror| Vc|r|c !on 21+0 8 211 280+
kaw Va|cr|a|s - loca| Vc|r|c !on 2932 59 2 1039
lac||nj Va|cr|a|s 210 1211
0|hcrs S|orcs 193 1129
kaw Va|cr|a| |n !rans|| +282 2138+
!o|a| 13281 119081
lrcsscd |n lnd|an kucc
C|os|nj S|oc| C|os|nj S|oc|
31s| Varch 200+ 31s| Varch 2005
AS AT 31
ST
13. Related Party Disclosures
!hc Coran, has ccr|a|n |ransac||ons w||h ||s rc|a|cd coran|cs / or||on o| |hc Coran,s assc|s ||a||||||cs
rcvcnucs cos|s and ccnscs arosc |ror |ransac||ons w||h |hc rc|a|cd coran|cs !hcsc coran|cs arc rc|a|cd
|hroujh corron sharcho|d|njs and/or d|rcc|orsh|s
kc|a|cd ar|, d|sc|osurcs arc j|vcn |c|ow
a) Relationships
Ca|cjor, l |hc larcn| Coran,
lu|n l|r||cd
Ca|cjor, ll Kc, Vanajcrcn| lcrsonnc|
karcsh Chandra Sa|oo Vanaj|nj l|rcc|or
Ca|cjor, lll kc|a||vcs ||nc|ud|nj |hc|r ||rrs) o| |c, ranajcrcn| crsonnc|
|o|c !hcrc arc no ho|d|nj coran, and |c||ow su|s|d|ar|cs
b) Transactions carried out with the related parties in 2005
c) Balances due from/to the related parties as at 31
st
March, 2005
/ccoun|s la,a||c - !radc |Ca|cjor, l) 19853 2211
!ransac||ons !ha| lah| lnd|an kucc
lurchasc !ransac||ons
|Ca|cjor, l )
318+ 35559
|Ca|cjor, ll)
1980 2209
Con|r||u||on lrov|dcn| |und
|Ca|cjor, ll)
8
20+8 2285
In 000
3559 3992
AS AT 31
ST
149 text 149
149 149 149
14. Balance Sheet Abstract and Companys General Business Profile
14.1 Registration Details
kcj|s|ra||on |o 8 / 2 5 3 0 S|a|c Codc
la|ancc Shcc| la|c 3 1 0 3 2 0 0 5
14.2 Capital raised during the year (Amount in Thousand Thai Baht)
Capital raised during the year (Amount in Thousand Indian Rupee)
14.3 Position of mobilization and deployment of funds (Amount in Thousand Thai Baht)
Sources of funds
Application of funds
| l l | l l
| l l | l l
k|jh| |ssuc
lr|va|c |accrcn|
lu|||c lsssuc
lonus lssuc
| l l | l l
| l l | l l
lr|va|c |accrcn|
lu|||c |ssuc k|jh| |ssuc
lonus |ssuc
-
0 0 0 0 - + 2 9 3
lnsccurcd loans Sccurcd loans
| l l 9 3 3 9 3
|c| ||cd /ssc|s lnvcs|rcn|s
3 + 8 8 3 | l l
|c| Currcn| /ssc|s
8 5 8 0
AS AT 31
ST
8 + 2 + 8 3 3 8 5 9
1 2 + 0 + 8 + 9
1 2 1 + | l l
!o|a| ccnd||urc
larn|nj cr cqu||, sharc |n ks lqu||, d|v|dcnd ra|c C `
lro||| |c|orc |a lro||| a||cr |a
!urnovcr
Position of mobilization and deployment of funds (Amount in Thousand Indian Rupee)
Sources of funds
Application of funds
14.4 Performance of Company (Amount in Thousand Thai Baht)
Performance of Company (Amount in Thousand Indian Rupee)
14.5 Generic names of three principal products of Company (As per monetary terms)
lroduc| lcscr|||on l|cr Codc |o |/s cr l!C Codc)
|) lr,|hror,on Sa|| - |orru|a||on |ll
||) l,raz|nar|dc - lu|| lruj |ll
|||) /ro,c||||n - lu|| lruj |ll
9 + + 1 0 9 9 3 0 2 1
1 3 8 3 8 9 + 8
1 3 5 + | l l
!urnovcr
lro||| |c|orc |a
larn|nj cr cqu||, sharc |n ks
!o|a| ccnd||urc
lro||| a||cr |a
lqu||, d|v|dcnd ra|c C `
|c| ||cd /ssc|s lnvcs|rcn|s
3 8 9 3 | l l
|c| Currcn| /ssc|s
9 5 8 0
8 1 3 - + 5
lnsccurcd loans Sccurcd loans
| l l 1 0 + 2 + 9
0
AS AT 31
ST
151 text 151 151
LUPIN HONG KONG LIMITED
151
DIRECTORS REPORT
To the Members,
\our l|rcc|ors havc |casurc |n rcscn||nj |hc|r rcor| on |hc ocra||ons o| ,our
Coran, |or |hc ,car cndcd Varch 31 2005
Financial results
Performance review
lur|nj |hc ,car |hc Coran, ||c| s|ar|cd ||s |rad|nj ocra||on and corr|ss|on
ajcnc, scrv|ccs |or /ll roduc|s \our Coran, has donc wc|| |n |o|h |hcsc arcas
Dividend
!hc l|rcc|ors con||rr |ha| wh||c rcar|nj |hc annua| accoun|s a||ca||c accoun||nj
s|andards had |ccn |o||owcd a|onj w||h rocr c|ana||on rc|a||nj |o ra|cr|a|
dcar|urcs !hc, |ur|hcr con||rr |ha| |hc, had sc|cc|cd such accoun||nj o||c|cs and
a||cd |hcr cons|s|cn||, and radc udjrcn|s and cs||ra|cs |ha| arc rcasona||c
and rudcn| so as |o j|vc a |ruc and |a|r v|cw o| |hc s|a|c o| a||a|rs o| |hc Coran,
a| |hc cnd o| |hc ||nanc|a| ,car and o| |hc ro||| o| |hc Coran, |or |hc sa|d ,car !hc,
a|so con||rr |ha| |hc annua| accoun|s havc |ccn rcarcd on a jo|nj conccrn |as|s
and |ha| rocr and su|||c|cn| carc has |ccn |a|cn |or ra|n|cnancc o| adcqua|c
accoun||nj rccords |or sa|cjuard|nj |hc assc|s o| ,our Coran, and |or rcvcn||nj
and dc|cc||nj |raud and o|hcr |rrcju|ar|||cs
Directors
ln accordancc w||h |hc /r||c|cs o| /ssoc|a||on a|| l|rcc|ors sha|| rc||rc a| |hc |or|hcor|nj
/nnua| Ccncra| Vcc||nj and arc c||j|||c |or rc-ao|n|rcn|
Appreciation
\our l|rcc|ors w|sh |o |acc on rccord |hc|r arcc|a||on o| |hc va|ua||c scrv|ccs
rcndcrcd |, a|| |hc cr|o,ccs o| |hc Coran, and |o |hc |us|ncss assoc|a|cs o| |hc
Coran, |or |hc|r con||nucd suor|
Naresh K Gupta
Director
Place : Vur|a|
Date : Va, 1 2005
|lK S) |ls)
lncorc |ror ocra||ons o445025 3o2532oo
lro||| |c|orc ln|crcs| lcrcc|a||on and !a 525432 254035
l|nancc Charjcs 24139 13582
lcrcc|a||on 111o9 o2o5
lro||| |c|orc !a 490124 255559o
!a 85119 4819o0
`c| lro||| carr|cd |o la|ancc Shcc| 404213 203o3o
\c havc aud||cd |hc la|ancc Shcc| o| lu|n lonj Konj l|r||cd |' |hc coran,) as
a| 31
s|
Varch 2005 |hc lro||| and loss /ccoun| and a|so |hc Cash l|ow S|a|crcn| o|
|hc Coran, |or |hc ,car cndcd on |ha| da|c ||hc ||nanc|a| s|a|crcn|s) a||achcd
hcrc|o wh|ch havc |ccn rcarcd |n accordancc w||h |hc Ccncra||, /ccc|cd
/ccoun||nj lr|nc||cs |n lnd|a
!h|s rcor| |s |ssucd so|c|, |or |hc urosc o| conso||da||on o| accoun|s |, |hc ho|d|nj
coran, lu|n l|r||cd and |o cor|, w||h |hc rov|s|ons o| |hc Coran|cs /c|
195o
!h|s rcor| docs no| |nc|udc a s|a|crcn| on |hc ra||crs scc|||cd |n arajrahs 4
and 5 o| |hc Coran|cs |/ud||ors lcor|) 0rdcr 2003 |ssucd |, |hc Ccn|ra|
Covcrnrcn| |n |crrs o| su|-scc||on |4/) o| scc||on 22 o| |hc Coran|cs /c| 195o
s|ncc |n our o|n|on and accord|nj |o |hc |n|orra||on and c|ana||ons j|vcn |o us
|hc sa|d 0rdcr |s no| a||ca||c |o |hc Coran,
Respective Responsibilities of the Management and Auditors
!hc ranajcrcn| o| |hc Coran, |s rcsons|||c |or |hc rcara||on o| |hcsc ||nanc|a|
s|a|crcn|s l| |s our rcsons||||||, |o |orr an |ndccndcn| o|n|on |ascd on our
aud|| o| |hc s|a|crcn|s and |o crcss our o|n|on |hcrcon
Basis of Opinion
a) !hc ||nanc|a| s|a|crcn|s o| |hc Coran, |or |hc ,car cndcd 31
s|
Varch 2004
wcrc aud||cd |, o|hcr |ndccndcn| aud||ors whosc aud|| rcor| da|cd 21
s|
/r|| 2004 was unqua||||cd \c havc rc||cd uon |hc |a|anccs o| assc|s and
||a||||||cs as a| 31
s|
Varch 2004 |c|nj |hc ocn|nj |a|anccs as a| 1
s|
/r||
2004 |or |hc uroscs o| |hc ||nanc|a| s|a|crcn|s |or |hc ,car cndcd 31
s|
Varch
2005
|) \c conduc|cd our aud|| |n accordancc w||h |hc aud|||nj s|andards |ssucd |,
|hc lns|||u|c o| Char|crcd /ccoun|an|s o| lnd|a /n aud|| |nc|udcs car|na||on
on a |cs| |as|s o| cv|dcncc rc|cvan| |o |hc aroun|s and d|sc|osurcs |n |hc
||nanc|a| s|a|crcn|s l| a|so |nc|udcs an asscssrcn| o| |hc s|jn|||can| cs||ra|cs
and udjrcn|s radc |, |hc ranajcrcn| |n |hc rcara||on o| |hc ||nanc|a|
s|a|crcn|s and whc|hcr |hc accoun||nj o||c|cs arc aror|a|c |o |hc
c|rcurs|anccs |o |hc Coran, cons|s|cn||, a||cd and adcqua|c|, d|sc|oscd
\c |anncd and cr|orrcd aud|| so as |o o||a|n a|| |n|orra||on and c|ana||on
wh|ch |o |hc |cs| o| our |now|cdjc and |c||c| wcrc ncccssar, |or |hc urosc
o| our aud||
c) !hc la|ancc Shcc| lro||| and loss /ccoun| and |hc Cash l|ow S|a|crcn| dca||
w||h |, |h|s rcor| arc |n ajrccrcn| w||h |hc |oo|s o| accoun|s o| |hc Coran,
and cor|, w||h |hc accoun||nj s|andards rc|crrcd |o |n su|-scc||on |3C) o|
Scc||on 211 o| |hc Coran|cs /c| 195o
Opinion
ln our o|n|on and |o |hc |cs| o| our |n|orra||on and accord|nj |o |hc c|ana||ons
j|vcn |o us |hc ||nanc|a| s|a|crcn|s rcad w||h |hc accoun||nj o||c|cs and no|cs
|hcrcon j|vc a |ruc and |a|r v|cw
||) |n |hc casc o| |hc la|ancc Shcc| o| |hc s|a|c o| a||a|rs o| |hc Coran, as a|
31
s|
Varch 2005 and
|||) |n |hc casc o| |hc lro||| and loss /ccoun| o| |hc ro||| |or |hc ,car cndcd on
|ha| da|c and
||||) |n |hc casc o| |hc Cash l|ow S|a|crcn| o| |hc cash ||ows |or |hc ,car cndcd on
|ha| da|c
P. R. Barpande
Partner
Vcr|crsh| ò15291
Place: Vur|a|
Dated: Va, 1 2005
AUDITORS REPORT
TO THE MEMBERS OF LUPIN HONG KONG LIMITED
CASH FLOW STATEMENT
ST
MARCH, 2005
AS AT 31
ST
MARCH, 2005
BALANCE SHEET
AS AT 31
ST
MARCH, 2005
For Deloitte Haskins & Sells For and on Behalf of The Board of Directors
P. R. Barpande Naresh K Gupta Sanjay M Moolchandani
Partner Director Director
Place: Vur|a|
Dated: Va, 1 2005
As at As at As at As at
31.03.2005 31.03.2004 31.03.2005 31.03.2004
Schedules HK $ HK $ Rs. Rs.
I. SOURCE OF FUNDS
Shareholders' funds
Sharc ca||a| 1 800,000 100000 4,682,000 5o4000
lcscrvcs and Sur|us 2 404,213 - 2,073,636 -
1,204,213 100000 6,755,636 5o4000
Deferred Tax Liability 4,229 23,724
(Refer note no 2.6 of
Schedule 11)
!o|a| 1,208,442 100,000 6,779,360 564,000
Fixed Assets 3
Cross ||oc| 41,782 - 234,397 -
lcss lcrcc|a||on 11,169 - 62,657 -
Net Block 30,613 - 171,740 -
Current Assets,
Loans and Advances 4
Sundr, lc||ors 2,334,072 - 13,094,144 -
Cash and lan| |a|anccs 726,439 100000 4,075,322 5o4000
loans and /dvanccs 46,848 - 262,817 -
3,107,359 100000 17,432,283 5o4000
Less : Current Liabilities 5
and Provisions
Currcn| l|a||||||cs 1,827,931 - 10,254,693 -
lrov|s|ons 101,599 - 569,970 -
1,929,530 - 10,824,663 -
Net Current Assets 1,177,829 100000 6,607,620 5o4000
!o|a| 1,208,442 100,000 6,779,360 564,000
11
Significant Accounting
Policies and Notes
forming part of Accounts
Place: Vur|a|
Dated: Va, 1 2005
Rs. Rs. Rs. Rs. lKS lKS lKS lKS
lro||| |c|orc !a 255559o 490124
/dus|rcn|s |or
lcrcc|a||on o2o5 111o9
lchanjc d|||crcncc |scc no|c 2 |c|ow) 10898
0cra||nj ro||| |c|orc wor||nj ca||a| chanjcs 2o29151 501293
/dus|rcn|s |or
!radc and o|hcr rccc|va||cs |1335o9o1) |2380920)
Currcn| ||a||||||cs and rov|s|ons 103oo42 184848
|2990534) |53302)
Net cash used in operating activities (A) (361,383) |319)
B. Cash flow from investing activities
lurchasc o| ||cd assc|s |23439) |4182)
Net cash used in investing activities (B) (234,397) |4182)
lrocccds |ror |ssuc o| sharcs 4118000 5o4000 00000 100000
Net cash from Financing activities ( C ) 4,118,000 5o4000 00000 100000
`c| |ncrcasc |n cash and cash cqu|va|cn|s 3522220 5o4000 o2o439 100000
Cash and cash cqu|va|cn|s
a| |hc |cj|nn|nj o| |hc ,car 5o4000 - 100000 -
Cash and cash cqu|va|cn|s
a| |hc cnd o| |hc ,car 408o220 5o4000 2o439 100000
lrcv|ous ,car lrcv|ous ,car 31st March,2005 31st March,2005
Current
Year
lrcv|ous
\car Current Year
lrcv|ous
\car
ended cndcd ended cndcd
31.03.05 310304 31.03.05 310304
Schedules HK $ lK S Rs. ls
INCOME FROM OPERATIONS
Sa|cs and
0cra||nj lncorc o 6,437,173 - 36,209,098 -
0|hcr lncorc 7,852 - 44,168 -
6,445,025 - 36,253,266 -
EXPENDITURE
Cos| o| Va|cr|a|s 8 2,295,005 - 12,909,403 -
la,rcn| |o and
rov|s|on |or cr|o,ccs 9 544,052 - 3,060,292 -
0cra||nj and
o|hcr ccnscs 10 3,080,536 - 17,529,536 -
l|nancc Charjcs 24,139 135,782 -
lcrcc|a||on 11,169 62,657 -
5,954,901 - 33,697,670
Profit Before Tax 490,124 - 2,555,596 -
lrov|s|on |or |aa||on
- Currcn| lncorc !a 81,682 458,236 -
- lc|crrcd |a 4,229 23,724
Profit After Tax 404,213 - 2,073,636
la|ancc carr|cd |o la|ancc shcc| 404,213 - 2,073,636 -
404,213 - 2,073,636
larn|nj cr sharc - las|c
and l||u|cd 0.62 3.19
|lc|cr no|c no 2 o|
Schcdu|c 11)
òr|na| va|uc o| cach cqu||, sharc |s lKS1
Significant Accounting
Policies
and Notes Forming Part of
Accounts 11
153 text 153 153
153
SCHEDULE "1" - SHARE CAPITAL
SCHEDULE 2 - RESERVES & SURPLUS
Notes :
1) Cash and cash cqu|va|cn|s |nc|udcs cash and |an| |a|anccs as s|a|cd |n schcdu|c
4 o| |hc ||nanc|a| s|a|crcn|
2) Cash and cash cqu|va|cn|s |nc|udc
As at 31st
March 2005
/s a| 31s|
Varch 2004
Rs. ls
Cash and lan| |a|anccs 4,075,322 5o4000
lchanjc d|||crcncc 10,898 -
!o|a| 4,086,220 5o4000
CASH FLOW STATEMENT
ST
MARCH, 2005 (Contd.)
3) lurchasc o| ||cd assc|s arc cons|dcrcd as a ar| o| |nvcs||nj ac||v|||cs
4) !hc Cash l|ow S|a|crcn| has |ccn rcarcd undcr |hc '|nd|rcc| rc|hod as sc| ou|
|n |hc accoun||nj s|andard |/S-3) 'Cash l|ow S|a|crcn| |ssucd |, |hc |ns|||u|c o|
Cha|crcd /ccoun|an|s o| lnd|a
Place: Vur|a|
Date: Va, 1 2005
AS AT 31
ST
MARCH 2005
31.03.2005 31.03.2004 31.03.2005 31.03.2004
HK $ HK $ Rs. Rs.
Authorised
1000000 lqu||, sharcs
o| lKS1/- cach 1,000,000 1000000 5,640,000 5o40000
Issued, Subscribed and
Paid up Capital
800000 |lrcv|ous \car
100000) lqu||, sharcs o|
lKS1/- cach |u||, a|d
u 800,000 100000 4,682,000 5o4000
|/|| |hc a|ovc sharcs arc
hc|d |, 'lu|n l|r||cd'
|hc ho|d|nj coran,
and ||s nor|ncc)
!o|a| 800,000 100000 4,682,000 5o4000
Sur|us as cr lro||| and 404,213 - 2,073,636 -
loss accoun|
!o|a| 404,213 - 2,073,636 -
P
a
r
t
i
c
u
l
a
r
s
/
s

a
|

0
1
0
4
2
0
0
4
/
d
d
|
|
|
o
n
s
l
c
d
u
c
|
|
o
n
s
A
s

a
t

3
1
.
0
3
.
2
0
0
5
L
|
o

3
1
0
3
2
0
0
4
l
o
r

|
h
c

,
c
a
r
l
c
d
u
c
|
|
o
n
U
p
t
o

3
1
.
0
3
.
2
0
0
5
A
s

a
t

3
1
.
0
3
.
2
0
0
5
/
s

a
|

3
1
0
3
2
0
0
4
C
o
r
u
|
c
r
s
-
2
1
o
3
4

-
2
1
,
6
3
4

-
1
3
9

-
7
,
1
3
9

1
4
,
4
9
5

-
0
|
|
|
c
c

c
q
u
|
r
c
n
|
s
-
o
4
3
9

-
6
,
4
3
9

-
1
2
8
8

-
1
,
2
8
8

5
,
1
5
1

-
l
u
r
n
|
|
u
r
c

a
n
d

l
|
|
u
r
c
s
-
1
3
0
9

-
1
3
,
7
0
9

-
2
4
2

-
2
,
7
4
2

1
0
,
9
6
7

-
!
o
|
a
|
-
4
1
8
2

-
4
1
,
7
8
2

-
1
1
1
o
9

-
1
1
,
1
6
9

3
0
,
6
1
3

-
l
r
c
v
|
o
u
s

\
c
a
r
-
-
-
-
-
-
-
-
-
-
G
r
o
s
s

b
l
o
c
k
D
e
p
r
e
c
i
a
t
i
o
n
N
e
t

b
l
o
c
k
I
n

H
K

$
P
a
r
t
i
c
u
l
a
r
s
/
s

a
|

0
1
0
4
2
0
0
4
/
d
d
|
|
|
o
n
s
l
c
d
u
c
|
|
o
n
s
A
s

a
t

3
1
.
0
3
.
2
0
0
5
L
|
o

3
1
0
3
2
0
0
4
l
o
r

|
h
c

,
c
a
r
l
c
d
u
c
|
|
o
n
U
p
t
o

3
1
.
0
3
.
2
0
0
5
A
s

a
t

3
1
.
0
3
.
2
0
0
5
/
s

a
|

3
1
0
3
2
0
0
4
C
o
r
u
|
c
r
s
-
1
2
1
3
o

-
1
2
1
,
3
6
7

-
4
0
0
5
1

-
4
0
,
0
5
1

8
1
,
3
1
6

-
0
|
|
|
c
c

c
q
u
|
r
c
n
|
s
-
3
o
1
2
3

-
3
6
,
1
2
3

-
2
2
5

-
7
,
2
2
5

2
8
,
8
9
8

-
l
u
r
n
|
|
u
r
c

a
n
d

l
|
|
u
r
c
s
-
o
9
0

-
7
6
,
9
0
7

-
1
5
3
8
1

-
1
5
,
3
8
1

6
1
,
5
2
6

-
!
o
|
a
|
-
2
3
4
3
9

-
2
3
4
,
3
9
7

-
o
2
o
5

-
6
2
,
6
5
7

1
7
1
,
7
4
0

-
l
r
c
v
|
o
u
s

\
c
a
r
-
-
-
-
-
-
-
-
-
-
G
r
o
s
s

b
l
o
c
k
D
e
p
r
e
c
i
a
t
i
o
n
N
e
t

b
l
o
c
k
I
n

R
s
.
S
C
H
E
D
U
L
E
S

F
O
R
M
I
N
G

P
A
R
T

O
F

T
H
E

A
C
C
O
U
N
T
S
A
S

A
T

3
1
S
T

M
A
R
C
H

2
0
0
5
S
C
H
E
D
U
L
E

-

F
I
X
E
D

A
S
S
E
T
S
SCHEDULE "11" - SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING
PART OF ACCOUNTS
!hcsc l|nanc|a| s|a|crcn|s arc rcarcd so|c|, |or |hc uroscs o| conso||da||on |,
|hc ho|d|nj coran, lu|n l|r||cd and |o cor|, w||h |hc rov|s|on o| |hc lnd|an
Coran|cs /c| 195o
1. Significant Accounting Policies:
1.1 Basis of preparation:
!hc accoran,|nj ||nanc|a| s|a|crcn|s havc |ccn rcarcd undcr |hc h|s|or|ca|
cos| convcn||on |n accordancc w||h jcncra||, accc|cd accoun||nj r|nc||cs
|n lnd|a and |hc a||ca||c accoun||nj s|andards |ssucd |, |hc lns|||u|c o|
Char|crcd /ccoun|an|s o| lnd|a
1.2 Use of Estimates:
!hc rcara||on o| |hc ||nanc|a| s|a|crcn|s |n con|orr||, w||h |hc jcncra||,
accc|cd accoun||nj r|nc||cs rcqu|rcs cs||ra|cs and assur||ons |o |c radc
|ha| a||cc| |hc rcor|cd aroun|s o| assc|s and ||a||||||cs on |hc da|c o| |hc
||nanc|a| s|a|crcn|s and |hc rcor|cd aroun|s o| rcvcnucs and ccnscs dur|nj
|hc rcor||nj cr|od l|||crcnccs |c|wccn ac|ua| rcsu||s and cs||ra|cs arc
rccojn|zcd |n |hc cr|od |n wh|ch |hc rcsu||s arc |nown / ra|cr|a||zc
1.3 Translation to Indian Rupees:
!hc |oca| accoun|s arc ra|n|a|ncd |n |oca| and |unc||ona| currcnc, wh|ch |s
|hc lonj Konj do||ars |lKS) !hc ||nanc|a| s|a|crcn|s havc |ccn |rans|a|cd |o
lnd|an luccs on |hc |o||ow|nj |as|s
|) /|| |ncorc and ccnscs arc |rans|a|cd a| |hc avcrajc ra|c o| cchanjc
rcva|||nj dur|nj |hc ,car
||) Vonc|ar, assc|s and ||a||||||cs arc |rans|a|cd a| |hc c|os|nj ra|c on |hc
la|ancc Shcc| da|c
|||) òn Vonc|ar, assc|s and ||a||||||cs and sharc ca||a| |s |rans|a|cd a|
h|s|or|ca| ra|cs
|v) !hc rcsu|||nj cchanjc d|||crcncc arc accoun|cd |n 'lchanjc l|||crcncc
accoun| and |s charjcd / crcd||cd |o |hc lro||| and loss /ccoun|
SCHEDULE "4" - CURRENT ASSETS
ò|c lan| |a|anccs |nc|udc |a|anccs w||h non-schcdu|cd |an|s as undcr
SCHEDULE 5 - LIABILITIES & PROVISIONS
SCHEDULES FORMING PART OF THE ACCOUNTS AS AT 31
ST
MARCH 2005
31.03.2005 31.03.2004 31.03.2005 31.03.2004
HK $ HK $ Rs. Rs.
àrc o| |hc |an|
Coun|r,
/s a|
31032005
ls
/s a|
31032004
ls
,car
31032005
|n ls
,car
31032004
|n ls
C||| |an| - LS S accoun| lonj|onj 1,060,849 - 6,589,743 -
C||| |an| - lK S accoun| lonj|onj 3,006,631 5o4000 3,849,194 5o4000
Va|rur |a|ancc
31.03.2005 31.03.2004 31.03.2005 31.03.2004
HK $ HK $ Rs. Rs.
SCHEDULE 6 - SALES AND OPERATING INCOME
SCHEDULE 8 - COST OF MATERIAL
Sales (Traded Finished Goods) 2,892,430 - 16,269,919 -
Commission Income 3,544,743 - 19,939,179 -
Total 6,437,173 - 36,209,098
Year
ended
31.03.2005
Year
ended
31.03.2004
Year
ended
31.03.2005
Year
ended
31.03.2004
HK $ HK $ Rs. Rs.
Exchange difference -
on transactions (net) 7,852 - 44,168 -
Total 7,852 - 44,168 -
Purchase of Finished
traded goods 2,295,005 - 12,909,403 -
Total 2,295,005 - 12,909,403 -
SCHEDULE "9" - PAYMENTS TO AND PROVISIONS FOR EMPLOYEES
SCHEDULE "10" - OPERATING & OTHER EXPENSES
Year
ended
31.03.2005
Year
ended
31.03.2004
Year
ended
31.03.2005
Year
ended
31.03.2004
HK $ HK $ Rs. Rs.
A. Sundry Debtors
(Unsecured
Considered Good)
lc||s ou|s|and|nj |or a
cr|od
0|hcr dc||s
|duc |ror ho|d|nj coran,
- lu|n l|d) 2,334,072 - 13,094,144
!o|a| 2,334,072 - 13,094,144 -
B. Cash and Bank Balance
Cash |n hand 1,398 - 7,843 -
lan| la|anccs
- ln Currcn| accoun|s
|scc no|c |c|ow) 725,041 100000 4,067,480 5o4000
!o|a| 726,439 100,000 4,075,322 564,000
C. Loan and Advances
|Lnsccurcd cons|dcrcd jood)
lcos||s 46,848 - 262,817 -
!o|a| 46,848 - 262,817 -
A. Current Liabilities
Sundr, Crcd||ors |o|hcr
|han sra|| sca|c |ndus|r|cs)
luc |o lo|d|nj Coran,
- lu|n l|d 3,800 - 21,318 -
0|hcrs 1,824,131 - 10,233,375 -
!o|a| 1,827,931 - 10,254,693 -
B. Provisions
- lor !aa||on 81,682 - 458,236 -
- lor Cra|u||, 19,917 - 111,734 -
!o|a| 101,599 - 569,970 -
Sa|ar|cs \ajcs and lonus 502,152 - 2,824,605 -
Con|r||u||on |o lrov|dcn| lund 38,317 - 215,533 -
S|a|| wc||arc ccnscs 3,583 - 20,154 -
!o|a| 544,052 - 3,060,292 -
Corr|ss|on 2,385,773 - 13,419,973 -
lchanjc d|||crcncc - on
|rans|a||ons - - 201,522 -
!ravc||nj and
convc,ancc 192,949 - 1,085,338 -
lcn| 185,000 - 1,040,625 -
lcja| and lro|css|ona|
lccs 192,507 - 1,082,851 -
Sc|||nj and lroro||on
ccnscs 31,394 - 176,591 -
!c|chonc lcnscs 27,868 - 156,757 -
/ud|| |ccs 8,596 - 48,353 -
V|scc||ancous ccnscs 56,449 - 317,526 -
||nc|udcs l|cc|r|c||,
charjcs lr|n||nj and
s|a||oncr, cour|cr
charjcs c|c)
Total 3,080,536 - 17,529,536 -
155 text 155 155
155
SCHEDULES FORMING PART OF THE ACCOUNTS AS AT 31
ST
MARCH 2005
SCHEDULE "11" - SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF ACCOUNTS (Contd.)
2.2 !hc Coran, ocra|cs so|c|, |n |hc harraccu||ca|s scjrcn| and hcncc |hcrc
|s on|, onc rcor|a||c scjrcn|
2.3 /dd|||ona| |n|orra||on ursuan| |o |hc rov|s|ons o| arajrahs 34 and 4l o|
ar| ll o| schcdu|c \l o| |hc lnd|ans Coran|cs /c| 195o
/) Cll \a|uc o| lror|s |n rcscc| o|
l) lcnd||urc |n lorc|jn currcnc|cs
on accoun| o|
2004-2005 2004-2005
HK $ Rs.
2,295,005 12,909,403
!0!/l 2,295,005 12,909,403
|) !radcd l|n|shcd Coods
176,078 990,437
2,385,773 13,419,973
!0!/l 2,561,851 14,410,410
|) !ravc||nj
||) Corr|ss|on
1.4 Revenue Recogni t i on:
lcvcnuc |ror sa|c o| joods |s rccojn|zcd whcn |hc s|jn|||can| r|s|s and rcwards
o| owncrsh| arc |rans|crrcd |o |hc cus|orcr and arc nc| o| lc|urns Corr|ss|on
lncorc |s rccojn|zcd on rcndcr|nj o| ajcnc, scrv|ccs |n accordancc w||h |hc
|crrs o| undcrs|and|nj w||h |hc ar|,
1.5 Fixed Assets:
l|cd /ssc|s arc s|a|cd a| cos| o| acqu|s|||on |nc|ud|nj |acs du||cs !hcsc arc
s|a|cd a| h|s|or|ca| cos| |css accuru|a|cd dcrcc|a||on
1.6 Foreign Currency Transactions:
|) !ransac||ons |n |orc|jn currcnc, arc rccordcd a| |hc or|j|na| ra|cs o| |hc
cchanjc |n |orcc a| |hc ||rc |ransac||ons arc c||cc|cd lchanjc
d|||crcnccs ar|s|nj on sc|||crcn| o| |ransac||ons arc rccojn|zcd |n |hc
ro||| and |oss accoun|
||) Vonc|ar, ||crs dcnor|na|cd |n |orc|jn currcnc, arc rcs|a|cd us|nj |hc
cchanjc ra|cs rcva|||nj a| |hc da|c o| |a|ancc shcc| and |hc rcsu|||nj
nc| cchanjc d|||crcncc |s rccojn|zcd |n |hc ro||| and |oss accoun|
|||) òn-Vonc|ar, ||crs arc carr|cd a| cos|
1.7 Inventories:
lnvcn|or|cs o| |radcd ||n|shcd joods arc va|ucd a| cos| or nc| rca||za||c va|uc
wh|ch cvcr |s |css Cos| |s dc|crr|ncd on lll0 |as|s Cos| corr|scs o| urchasc
r|cc and o|hcr rc|a|cd cos| |ncurrcd |n |r|nj|nj |hc |nvcn|or|cs |o ||s rcscn|
|oca||on and cond|||on
1.8 Depreciation:
lcrcc|a||on on ||cd assc|s |s rov|dcd on S|ra|jh| ||nc rc|hod ovcr |hc usc|u|
|||c o| |hc assc|s as cs||ra|cd |, |hc ranajcrcn| as undcr
Coru|crs 3 ,cars
lurn||urc and |||urcs 5 ,cars
0|||cc cqu|rcn|s 5 ,cars
1.9 Retirement Benefits:
Coran,s Con|r||u||on |o Vanda|or, lrov|dcn| lund Schcrc |s charjcd |o
lro||| and loss accoun| lrov|s|on |s radc |owards ||a|||||, |or Cra|u||, as
a,a||c undcr |hc lr|o,rcn| 0rd|nancc |lonj Konj)
1.10 Income Tax:
lrov|s|on |or currcn| |a |s radc a||cr |a||nj |n|o cons|dcra||on |cnc|||s adr|ss|||c
undcr |hc rov|s|ons o| ln|and lcvcnuc 0rd|nancc o| lonj Konj
lncorc |acs arc accoun|cd |or |n accordancc w||h /ccoun||nj S|andard 22 |/S-
22) /ccoun||nj |or |acs on |ncorc |ssucd |, |hc lns|||u|c o| Char|crcd
/ccoun|an|s o| lnd|a lc|crrcd |a assc|s and ||a||||||cs arc rccojn|zcd |or
|u|urc |a conscqucnccs a||r||u|a||c |o ||r|nj d|||crcnccs |c|wccn |aa||c
|ncorc and accoun||nj |ncorc |ha| arc caa||c o| rcvcrs|nj |n onc or rorc
su|scqucn| cr|ods and arc rcasurcd us|nj |hc rc|cvan| cnac|cd |a ra|cs /|
cach la|ancc shcc| da|c |hc coran, rcasscsscs unrccojn|zcd dc|crrcd |a
assc|s |o |hc c|cn| |hc, havc |ccorc rcasona||, ccr|a|n or v|r|ua||, ccr|a|n o|
rca||za||on as |hc casc ra, |c
1.11 Provision, Contingent Liabilities and Contingent Assets:
lrov|s|ons |nvo|v|nj su|s|an||a| dcjrcc o| cs||ra||on |n rcasurcrcn| arc
rccojn|zcd whcn |hcrc |s a rcscn| o|||ja||on as a rcsu|| o| as| cvcn|s and ||
|s ro|a||c |ha| |hcrc w||| |c an ou|||ow o| rcsourccs Con||njcn| ||a||||||cs arc
no| rccojn|zcd |u| arc d|sc|oscd |n |hc no|cs Con||njcn| /ssc|s arc nc||hcr
rccojn|zcd nor d|sc|oscd |n |hc ||nanc|a| s|a|crcn|s
2 Notes to Accounts:
2.1 Company Overview:
!hc Coran, was |ncorora|cd |n lonj Konj undcr |hc Coran|cs 0rd|nancc
on 31s| Va, 2002 !hc Coran, |s a who||, owncd Su|s|d|ar, o| lu|n l|d l|s corc
|us|ncss |s |o rov|dc corr|ss|on ajcnc, scrv|ccs |or |u|| drujs roduc|s and |o
|radc |n |u|| drujs !hc Coran, has corrcnccd ocra||ons |ror Va, 2004
C) larn|njs |n lorc|jn cchanjc on
accoun| o|
l) Vanajcr|a| lcruncra||on
2,892,430 16,269,919
3,544,743 19,939,179
!0!/l 6,437,173 36,209,098
||) Corr|ss|on
|) l0l \a|uc o| lor|s
317,461 18513
24,917 14015o
100,000 5o2500
!0!/l 442,378 24883o9
lcrqu|s||cs
Con|r||u||on |o lrov|dcn| and 0|hcr
lunds
2.4 Quantitative details of Traded Finished Goods (Bulk drugs):
2.5 Related Parties Disclosures:
a) Name of Related parties and description of relationship:
|) Coran, whosc con|ro| c|s|s - lu|n l|r||cd |lo|d|nj Coran,)
||) Kc, ranajcrcn| crsona| - Vr Sana, Voo|chandan| |l|rcc|or)
b) Related Party Transactions:
Note: -
|) lc|a|cd lar|, rc|a||onsh| |s as |dcn||||cd |, |hc Coran, and rc||cd uon |, |hc
/ud||ors
Quantity in Kgs Value in Rs. Value in HK$
0cn|nj S|oc| `|| `|| `||
lurchascs 48o0 12909403 2295005
Sa|cs 48o0 1o2o9919 2892430
C|os|nj s|oc| `|| `|| `||
Sr.
No.
Description and Nature Of
Transaction
Holding
Company
Key
Management
Personnel
Holding
Company
Key
Management
Personnel
(Rs.) (Rs.) (HK$) (HK$)
1 lurchasc o| joods 12909403 - 2295005 -
2 Corr|ss|on lncorc 1993919 - 354443 -
3 lc|r|urscrcn| o| ccnscs 21318 - 3800 -
4
lc||ors |a|ancc as a| 31
s|
Varch 2005 13094144 - 233402 -
5
Crcd||ors |a|ancc as a| 31
s|
Varch 2005 21318 - 3800 -
o Vanajcr|a| lcruncra||on - 24883o9 - 4423
2.8 lur|nj |hc ,car |hc Coran, corrcnccd |hc ocra||on |ror Va, 2004 and
accord|nj|, |hc lro||| and loss /ccoun| has |ccn rcarcd S|ncc |hcrc wcrc no
ocra||ons |n |hc rcv|ous ,car no lro||| and loss /ccoun| has |ccn rcarcd |n
rcv|ous ,cars and conscqucn||, |hc |n|orra||on rc|a||nj |o |hc rcv|ous ,car |n
ò|c nur|cr 23 24 25 2o and 2 has no| |ccn |urn|shcd /ccord|nj|, |hc
||jurcs |or |hc currcn| ,car arc no| s|r|c||, corara||c w||h |ha| o| |hc rcv|ous
,cars
2.9 !hc |n|orra||on con|a|ncd |n |hc ||nanc|a| s|a|crcn|s |or |hc ,car cndcd 31s|
Varch 2005 and |hc cr|od cndcd 31s| Varch 2004 d|sc|oscd |n lKS |s c|rac|cd
|ror |hc |oo|s o| accoun|s |oca||, ra|n|a|ncd and convcr|cd |n|o lnd|an ruccs
as d|sc|oscd |n '!rans|a||on |o lnd|an luccs as s|a|cd a|ovc Such d|sc|osurc
|n lKS arc on|, |or add|||ona| |n|orra||on
210 la|ancc Shcc| /|s|rac| /nd Coran,s Ccncra| lus|ncss lro|||c
(a) Registration Details
' !hc Coran, |s |ncorora|cd |n lonj Konj !hus |hcrc |s no rcj|s|ra||on nur|crs / s|a|c
codc
(b) Capital Raised during the Year (Amount in Rs. Thousands)
SCHEDULE "11" - SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF ACCOUNTS (CONTD.)
lcj|s|ra||on ò ' S|a|c Codc '
la|ancc Shcc| la|c 31032005
lu|||c lssuc `ll l|jh|s lssuc `ll
lonus lssuc `ll lr|va|c l|accrcn| 4118
!o|a| l|a||||||cs 1o04 !o|a| /ssc|s 1o04
Sources of Funds
la|d-L Ca||a| 4o82 lcscrvcs and Sur|us 204
lc|crrcd !a 24 Sccurcd loans -
Lnsccurcd loans -
Application of Funds
`c| l|cd /ssc|s 12 lnvcs|rcn|s -
`c| Currcn| /ssc|s oo08 V|sc lcnd||urc -
/ccuru|a|cd losscs -
!urnovcr 3o209 !o|a| lcnd||urc 33o98
lro||| lc|orc !a 255o lro||| /||cr !a 204
larn|nj cr lqu||, Sharc |n l 319 lqu||, l|v|dcnd la|c ` -
lroduc| lcscr|||on l|cr Codc ò|/s cr l!C Codc)
|) Ccha|c|n - lu|| lruj 29419002
||) l|har|u|o| - lu|| lruj 29051401
Place: Vur|a|
Date: Va, 1 2005
(e) Generic Names of Three Principal Products of Company
(As per monetary terms)
As at 31
st
March
2005 HK $
As at 31
st
March
2005 Rs.
4,229 23,724
4,229 23,724
lcrcc|a||on
lc|crrcd |a ||a|||||,
lar||cu|ars o| ||r|nj d|||crcncc
For the year ended
31
st
March 2005 in
HK $
For the year ended
31
st
March 2005 in
Rs.
404,213 2,073,636
650,000 650,000
0.62 3.19
lar||cu|ars
las|c and l||u|cd carn|njs cr sharc
\c|jh|cd avcrajc nur|cr o| lqu||,
sharcs las|c and d||u|cd
`c| ro||| a||cr |a
2.6 The break up of deferred tax liability is as under:
2.7 Earnings per share is calculated as follows:
(c) Position of Mobilisation and Deployment of funds (Amount in Rs. Thousands)
(d) Performance of Company (Amount in Rs. Thousands)
157 text 157
LUPIN HERBAL LIMITED
157
DIRECTORS REPORT
To the Members,
Your Directors have pleasure in presenting the first report with audited accounts of
the Company for the period from February 26, 2004 (date of incorporation) to
March 31, 2005.
Financial Results
Conversion of the Company
The Company was incorporated as a private company on February 26, 2004 and it
commenced operations in July 2004. Upon Lupin Limited acquiring the entire equity
capital, the Company became a public company within the meaning of Section
3(1)(iv)(c) of the Companies Act, 1956 (the Act). After completing necessary formalities,
the Registrar of Companies, Maharashtra issued a Certificate certifying the change
in the Companys status as a public limited company w.e.f. March 28, 2005.
Increase in the Authorised Capital and issue of equity shares
The authorised capital of the Company was increased from Rs. 1,00,000/- to
Rs.5,00,000/-. On November 30, 2004, 40,000 equity shares of the face value of
Rs.10/- were allotted to Lupin Ltd.
Performance Review
The Company was incorporated for providing marketing and promotional services to the
Herbal Division of Lupin Ltd. The service profile includes marketing and promoting of
herbal products of Lupin Ltd., detailing to Doctors, laisoning with the Institutions and
Trade. The Company earns a mutually agreed consideration for the services rendered.
Dividend
Your directors do not recommend dividend.
In terms of the provisions of Section 217(2AA) of the Act, your Directors confirm:
i) that in the preparation of the annual accounts, the applicable accounting
standards had been followed along with proper explanation relating to material
departures;
ii) that the Directors had selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of your Company
at the end of the financial year and of the profit of your Company for that year;
iii) that the Directors had taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the Act for
safeguarding the assets of your Company and for preventing and detecting
fraud and other irregularities; and
iv) that the Directors had prepared the annual accounts on a going concern
basis.
Directors
Upon the Company becoming a public company, the number of directors was raised
to three. Mr. S. P. Chakraborty and Mr. Sunil Makharia who were appointed as
additional directors on November 1, 2004, hold office upto the date of the forthcoming
Annual General Meeting. Notices have been received from certain shareholders
proposing the names of Mr. Chakraborty and Mr. Makharia for appointment as
directors.
Mr. Ajey Kumar resigned w.e.f. November 1, 2004. The Board places on record its
sincere appreciation of the valuable services rendered by him during his tenure as a
director.
Mr. Pradeep Pande retires by rotation at the forthcoming Annual General Meeting
and is eligible for re-appointment.
The Companies (Disclosure of particulars in the report of Board of Directors)
Rules, 1988
Particulars as prescribed under Section 217(1)(e) of the Act, read with the Companies
(Disclosure of particulars in the report of Board of Directors) Rules, 1988 are not
applicable to your Company.
Appreciation
Your Directors wish to place on record their appreciation of the valuable services
rendered by all the employees of the Company and to the business associates of the
Company for their continued support.
S. P. Chakraborty
Chairman
Place : Mumbai
Date : May 18, 2005
(Rs.)
Income from operations 6,325,913
Profit before tax 8,320
Tax 3,044
Net profit carried to Balance Sheet 5,276
AUDITORS REPORT
To the Members of Lupin Herbal Ltd.
1. We have audited the attached Balance Sheet of LUPIN HERBAL Limited (the
company) as at March 31, 2005, the Profit and Loss Account and also the
Cash Flow Statement of the Company for the period ended on that date (together
referred to as financial statements). These financial statements are the
responsibility of the Companys management. Our responsibility is to express
an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards generally
accepted in India. These Standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (CARO) issued by
the Central Government of India in terms of Section 227 (4A) of the Companies
Act, 1956 (the Act), and on the basis of such checks of the books and records
as we considered necessary and appropriate and according to the information
and explanations given to us during the course of the audit, we enclose in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of the
said Order.
4. Further to our comments in the Annexure referred to in para 3 of our audit
report.
i. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of
our audit;
ii. In our opinion, proper books of account as required by law have been
kept by the Company, so far as appears from our examination of those
books;
iii. The Balance Sheet & Profit and Loss Account dealt with by this report
are in agreement with the books of account;
iv. In our opinion, the Balance Sheet and Profit and Loss Account comply
with the accounting standards referred to in sub-section (3C) of Section
211 of the Act.
v. On the basis of the written representations received from the directors,
and taken on record by the Board of Directors, we report that none of
the directors are disqualified as on 31
st
March 2005 from being
appointed as a director under clause (g) of sub-section (1) of Section
274 of the Act.
vi. In our opinion and to the best of our information and according to the
explanations given to us, the said financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles generally
accepted in India;
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2005;
b) In the case of the Profit and Loss Account, of the profit of the
Company for the period ended on that date; and
c) In the case of the Cash Flow Statement, of the Cash Flows for
the period ended on that date.
For JAIN JAIN AND ASSOCIATES
CHARTERED ACCOUNTANT
GOUTAM JAIN
PARTNER
M.No.35344
Place : Mumbai
Date : May 18, 2005
FOR THE PERIOD 26
TH
FEBRUARY, 2004 TO 31
ST
MARCH, 2005
BALANCE SHEET
AS AT 31
ST
MARCH, 2005
ANNEXURE TO AUDITORS REPORT
of even date to the Member of Lupin Herbal Limited
i. (a) The Company has no Fixed Assets.
(b) Sub-clauses (b) & (c) not applicable.
ii. (a) Clause 2(a), (b) & (c) are not applicable since the Company is not a
manufacturing company.
iii. (a) The Company has not accepted any loans from other companies covered
under register maintained section 301 of the Companies Act, 1956. The
Company has not granted any loans to other companies covered under
register maintained section 301 of the Company Act, 1956.
(b) Clause (b), (c) & (d) are not applicable.
iv. (a) Clause (iv) is not applicable.
v. (a) Clause (v) (a), (b) are not applicable.
vi. The Company has not accepted any deposit from the public.
vii. The clause regarding Internal Audit is not applicable.
viii. Clause (viii) is not applicable as the Company is not liable to maintain cost
record.
(ix) (a) The Company is regular in depositing with appropriate authorities
undisputed statutory dues.
(b) According to the information and explanations given to us, no undisputed
amount payable in the respect of Income Tax, were in arrears, as at 31
st
March, 2005 for a period of more than 6 months from the date become
payable.
(c) According to the information & explanations given to us, there are no
dues of sales tax, income tax, customs duty which have not been
deposited on account of any dispute.
(x) This clause not applicable to company because Company has been registered on
26
th
Feb.2004.
(xi) In our opinion & according to the information given to us, the Company has not
defaulted in repayment of dues to a financial institution, bank or debenture
holders and also there is no loan from bank & financial institution.
(xii) The clause (xii) is not applicable.
(xiii) In our opinion, the Company is not a chit fund or a nidhi mutual benefit fund/
society. Therefore the provision of clause 4(xiii) of the Companies (Auditors Report)
Order, 2003 are not applicable to the company.
(xiv) In our opinion, the company is not dealing in or shares, securities, debenture and
other investment. According, the provision of clause 4(xiv) of the Companies
(Auditors Report) Order, 2003 are not applicable to the Company.
(xv) On the basis of information & explanation given to us the Company has not given
any guarantee for loans taken by others from bank or financial institution.
(xvi) There were no term loans accepted during the year.
(xvii) According to the information and explanation given to us and on an overall
examination of the Balance Sheet of the Company, we report that the no funds
raised for short terms and long term used.
(xviii) During the year, the Company has not made any preferential allotment of
shares to parties and companies covered in the Register maintained under
section 301 of the Act.
(xix) There was no issue of debenture by the Company during the year.
(xx) The Company has not raised the monies by public issues during the year and
hence the question of disclosures and verification of end use of such monies
does not arise.
(xxi) According to the information and explanation given to us, no fraud on or by the
Company has been noticed or reported during the course of our audit.
For JAIN JAIN AND ASSOCIATES
CHARTERED ACCOUNTANT
GOUTAM JAIN
PARTNER
M.No.35344
Place : Mumbai
Date : May 18, 2005
Period Ended
31 st March, 2005
Schedules Rs.
INCOME
Commission 246,300
6,079,613
6,325,913
EXPENDITURE
Personnel Costs 7 3,504,465
Promotional Expenses 8 2,617,127
Administrative and Other Expenses 9 196,001
6,317,593
Profit Before Taxation 8,320
Provision For Taxation 3,044
Net Profit carried to Balance Sheet 5,276
Notes to the Financial Statements 10
Reimbursement of Expenses (Refer Note 4 of Schedule 10)
As per our report attached of even date
For J ai n J ai n & Associ at es For and on behal f of t he Board of Di rect ors
Goutam Jain S. P. Chakraborty Sunil Makharia
Membership No.35344
Pl ace: Mumbai
Date: May 18, 2005
As at
31 st March, 2005
Schedules Rs.
I. SOURCES OF FUNDS
Shareholders' Funds
Share Capital 1 500000
Reserves and Surplus 2 5276
Loan Funds
Secured Loan -
Unsecured Loan -
505276
Fixed Assets -
Investments -
Cash and Bank Balances 3 309457
Loans, Advances and Receivables 4 466841
776298
Less: Current Liabilities and Provisions
Current Liabilities 5 282454
Provisions 6 3044
285498
Net Current Assents 490800
Miscellaneous Expenditure
Preliminary Expenses 14476
(To the extent not written off or adjusted)
505276
Notes to the Financial Statement 10
Membership No.35344
Pl ace: Mumbai
Date: May 18, 2005
159 text 159
LUPIN HERBAL LIMITED
159
STATEMENT OF CASH FLOW
FOR THE PERIOD 26
TH
FEBRUARY 2004 TO 31
ST
MARCH 2005.
Notes:
1. The above cash flow statement has been prepared under the Indirect Method as
set out in the Accounting Standard - 3 on Cash Flow Statements, issued by the
Institute of Chartered Accountants of India.
2. There are no corresponding figures for the previous year as this is the first
accounting period of the Company.
AS AT 31
ST
MARCH, 2005
SCHEDULE 1: SHARE CAPITAL
All the above shares are held by Lupin Ltd, the holding
company, and its nominees
Authorised Capital
50,000 Equity Shares of Rs. 10/- Each 5,00,000
Issued, Subscribed & Paid Up Capital
50,000 Equity Shares of Rs. 10/- Each 5,00,000
As on
31st March, 2005
Rs.
SCHEDULE 2: RESERVES AND SURPLUS
SCHEDULE 3: CASH AND BANK BALANCES
SCHEDULE 4: LOANS, ADVANCES AND RECEIVABLES
Profit and Loss Account 5,276
Cash in Hand 252
Balance with Bank in Current Account 3,09,205
3,09,457
Unsecured (Considered good) :
Advances recoverable in cash or in kind or for value to be
received 4,54,731
Tax deducted at source 12,110
4,66,841
AS AT 31
ST
MARCH, 2005 (CONTD.)
As on
31st March, 2005
Rs.
SCHEDULE 5: CURRENT LIABILITIES
SCHEDULE 6: PROVISIONS
SCHEDULE 7: PERSONNEL COST
SCHEDULE 8: PROMOTIONAL EXPENSES
SCHEDULE 9: ADMINISTRATIVE AND OTHER EXPENSES
Creditors for Expenses 31,846
Other Liabilities 2,50,608
2,82,454
Provision for Income Tax 3,044
Salaries and allowances 33,04,739
Contribution to Provident and Other Funds 1,57,747
Staff Welfare Expenses 41,979
35,04,465
Field Expenses 26,17,127
Statutory Audit Fees 11,020
Profession Tax 4,200
Bank Charges 5,149
Directors Sitting Fees 9,000
Legal and Professional Fees 33,805
License, Registration and Other Fees 34,084
Conveyance Expenses 2,676
Printing and Stationery 26,270
Rent 50,000
Software Development Charges 15,750
Preliminary Expenses Written Off 3,619
Miscellaneous Expenses 428
1,96,001
SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE PERIOD 26
TH
ST
MARCH, 2005
SCHEDULE 10: NOTES TO THE FINANCIAL STATEMENTS
1. Significant Accounting Policies
a. The Company adopts the accrual concept in the preparation of
the accounts.
b. Preliminary expenses are written off over the period of five years.
2. Fixed assets and Investments There are no fixed assets and investments.
3. Deferred Tax
There being no differences in between the taxable income and accounting
income that originate in one period and are capable of reversal in one or
more subsequent periods, there are no Deferred Tax Assets / Liabilities.
4. Reimbursement of expenses represent, reimbursement of personnel costs
and promotional expenses by Lupin Limited, the holding company in terms
of the agreement with Lupin Ltd.
5. The Company has only one reportable segment - promotion and marketing
of pharmaceutical products.
6. Related Party Disclosures Enterprise where control exists Holding Company
Lupin Limited Disclosure of transactions between the Company and related
party and outstanding balances as at the period end:
Commission Rs. 2,46,300
Reimbursement of expenses Rs. 60,79,613
Rent paid Rs. 50,000
Balances at the period end
Amounts recoverable Rs. 4,40,231
Period Ended
31st March, 2005
Rs. Rs.
Net Profit before Taxation 8,320
Adjustments for :
Miscellaneous Expenditure 3,619
Operating Profit before Working Capital changes 11,939
Adjustments for Working Capital changes
Trade and Other Receivables (466,841)
Trade and Other payables 285,498
(181,343)
Cash generated from operations (169,404)
Less : Income Tax 3,044
Net Cash generated from operating activities (172,448)
B. CASH FLOW FROM INVESTING ACTIVITIES Nil
C. CASH FLOW FROM FINANCING ACTIVITIES
Issue of Shares 500,000
Less : Preliminary Expenses 18,095
Net Cash from financing activities 481,905
Net Increase in Cash and Cash Equivalents 309,457
Cash and Cash Equivalents - Opening Balance Nil
Cash and Cash Equivalents - Closing Balance 309,457
Membership No.35344
Pl ace: Mumbai
Date: May 18, 2005
10. Balance Sheet Abstract and Companys General Business Profile
I Registration Details
II Capital Raised during the year (Amount in Rupees thousand)
SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE PERIOD 26
TH
ST
MARCH, 2005
SCHEDULE 10 :NOTES TO THE FINANCIAL STATEMENTS (CONTD.)
The Company was incorporated as a private company on 26th February 2004.
Upon Lupin Limited acquiring 100 percent of the Companys equity share
capital, the Company became a public company within the meaning of Section
3(iv)(c) of the Companies Act, 1956. Accordingly, it was converted into a public
limited company. Accordingly the number of directors were raised to three and
pai d-up share capi t al of t he Company was i ncreased t o
Rs. 5,00,000/-. Necessary formalities for the said conversion were completed,
consequent to which the Registrar of Companies, Maharashtra issued a
Certificate certifying the change in status as a public limited Company w.e.f.
March 28, 2005.
8. Basic earnings per share have been calculated by dividing profit for the period
attributable to equity shareholder by the weighted average number of equity
shares outstanding during the period. The Company has not issued any potential
equity shares and accordingly, the basic earnings per share and diluted earnings
per share are the same. Earnings per share are calculated as under:
9. There are no corresponding figures for the previous year as this is the first
accounting period of the Company and the accounts are presented for the period
from 26
th
February 2004 to 31
st
March 2005.
Profit for the period (Rs.) 5,276
Weighted average number of shares 25,385
Earnings per share - Basic and Diluted (Rs.) 0.21
7. Share Capital
Authorised:
50000 Equity shares of Rs. 10/- each Rs. 5,00,000
Allotted, Issued and Fully paid:
50000 Equity shares of Rs. 10/- each Rs. 5,00,000
Registration No. 144760
State Code 11
Balance Sheet Date 31.03.2005
Public Issue NIL
Right Inssue NIL
Bonus Issue NIL
Preferential Allotment 500
III. Position of mobilisation and deployment of funds (Amount in Rs. Thousands)
SOURCES OF FUNDS
Total Liabilities 505
Total Assets 505
10 Balance Sheet Abstract and Companys General Business Profile (Contd.)
APPLICATIONS OF FUNDS
IV. Performance of Company (Amount in Rs. Thousands)
V. Generic Names of Three Principal Products of the Company (As per monetary
terms)
Signature to Schedules 1 to 10
Paid up Capital 500
Reserve and Surplus 5
Secured Loans NIL
Unsecured Loans NIL
Net Fixed Assets NIL
Investments NIL
Net Current Assets 491
Miscellenous Expenditure 14
Accumulated Losses NIL
Total Income 6,326
Total Expenditure 6,317
Profit/(Loss) before tax 8
Profit/(Loss) after tax 5
Earnings per share in Rs. 0.21
(Based on weighted average of number of shares)
Dividend Rate % N.A.
Item code No. Not Applicable
Product Description Not Applicable
Membership No.35344
Pl ace: Mumbai
Date: May 18, 2005
161
LUPIN LABORATORIES SOUTH AFRICA (PROPRIETARY) LIMITED
DIRECTORS REPORT
To the Members,
Your Directors have pleasure in presenting their report on the operations of your
Company for the year ended March 31, 2005.
Financial results
The results of the Company for the year are fully set out in the attached financial
statements.
Operational review
No business was transacted during the year under review as the Company is in the
process of being wound-up.
Share Capital
There have been no changes in the authorised or issued share capital of the Company
during the year under review.
Dividend
Your Directors do not recommend dividend.
The Directors confirm that while preparing the annual accounts, applicable accounting
standards had been followed along with proper explanation relating to material
departures. They further confirm that they had selected such accounting policies and
applied them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs of the Company
at the end of the financial year and of the profit of the Company for the said year. They
also confirm that the annual accounts have been prepared on a going concern basis
and that proper and sufficient care has been taken for maintenance of adequate
accounting records for safeguarding the assets of your Company and for preventing
and detecting fraud and other irregularities.
Appreciation
Your Directors wish to place on record their appreciation of the valuable services
rendered by business associates of the Company.
S. C. Kulkarni
Director
Place : Hyde Park
Date : March 31, 2005
REPORT OF THE INDEPENDENT AUDITORS
TO THE MEMBERS OF LUPIN LABORATORIES
SOUTH AFRICA (PROPRIETORY) LIMITED
We have audited the financial statements of Lupin Laboratories South Africa
(Proprietary) Limited set out on pages 3 to 9 for the year ended 31 March 2005. These
financial statements are the responsibility of the companys directors. Our responsibility
is to express an opinion on these financial statements based on our audit.
Scope
We conducted our audit in accordance with statements of South African Auditing
Standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance that the financial statements are free of material misstatement.
An audit includes:
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements,
assessing the accounting principles used and significant estimates made
by management, and
evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
Audit opinion
In our opinion, the financial statements fairly present, in all material respects, the
financial position of the company at 31
st
March, 2005 and the results of its operations
and cash flows for the year then ended in accordance with South African Statements
of Generally Accepted Accounting Practice, and in the manner required by the
Companies Act in South Africa.
Treisman, Venter & Associates
Hyde Park
31
st
March, 2005
BALANCE SHEET
AS AT 31
ST
MARCH, 2005
Notes 2005 2004
R R
ASSETS
Current Assets
Cash & Bank Balances 500 500
Total 500 500
Current Liabilities
Accounts payable 0 0
Total 0 0
Net Current Assets 500 500
EQUITY AND LIABILITIES
Capital and reserves
Issued share capital 2 10,000 10,000
Retained earnings (9500) (9500)
Total capital and reserves 500 500
Notes 2005 2004
R R
Turnover 1.2 0 0
Cost of Sales 0 0
Gross Profit 0 0
Other Operating Income 0 0
Direct Expenses 0 0
Profit from Operations 2 0 0
Interest received 0 0
Profit before taxation 0 0
Income Tax Expense 0 0
Net Profit for the year 0 0
INCOME STATEMENT
ST
MARCH, 2005
STATEMENT OF CHANGES IN EQUITY
ST
MARCH, 2005
Share Retained
Capital Reserves Earnings Total
R R R R
Balance at 31 March 2004 10000 0 (9500) 500
Balance at 31 March 2005 10000 0 (9500) 500
CASH FLOW STATEMENT
ST
MARCH, 2005
Notes 2005 2004
R R
Cash Flows From Operating Activities
Net Cash generated from operations A 0 0
Net Cash paid 0 0
Increase in working capital B 0 0
Taxation C 0 0
Cash retained from operating activities 0 0
Cash Flows From Investing Activities 0 0
Acquisition of propoerty, plant and equipment 0 0
Proceeds on disposal of shares 0 0
(Increase) in share capital 0 0
(Decrease) in shareholders loans 0 0
Net Decrease / Increase in Cash
And Cash Equivalents 0 0
Cash and cash equivalents at the beginning of the year 500 500
Cash and Cash Equivalents at the End Of The Year 500 500
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH, 2005
2005 2004
R R
A. CASH GENERATED FROM OPERATIONS
Operating loss/profit for the year 0 0
Elimination of non cash items:
Net Interest paid 0 0
Bad debt provision 0 0
Total 0 0
B. INCREASE IN WORKING CAPITAL
Decrease in accounts receivable 0 0
Decrease /(Increase) in Inventory 0 0
(Decrease) in accounts payable 0 0
Total 0 0
C. TAXATION PAID IS RECONCILED TO THE
AMOUNTS DISCLOSED IN THE
INCOME STATEMENT AS FOLLOWS
Amounts unpaid at the beginning of the year 0 0
Amounts charged to the income statement 0 0
Amounts unpaid at the end of the year 0 0
Total 0 0
NOTES TO THE CASH FLOW STATEMENT
ST
MARCH, 2005
1. ACCOUNTING POLICIES
The annual financial statements are prepared on the historical cost
basis and incorporate the following principal accounting policies that
have been consistently applied in all material respects:
1. 1. Inventory
Inventory, consisting of raw materials, work in progress and finished
goods, is valued at the lower of cost, determined on the first-in, first-out
basis, and net reliable value.
1. 2. Turnover
Turnover comprises net invoicing in respect of normal trading activities
exclusive of value added tax.
2. SHARE CAPITAL
2005 2004
R R
Authorised
10,000 ordinary shares of R1 each 10,000 10,000
Issued
10,000 ordinary shares of R1 each 10000 10,000
Notes
INVESTING FOR GROWTH

Lupin 2004-05

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Lupin 2004-05

Uploaded by

Copyright:

Available Formats

INVESTING FOR GROWTH

We believe in our potential

the US for Suprax .

The factory was completed in a

Telista and Telista-H, the latest ARB, to treat diabetic

market. Suprax , an anti-Infective oral suspension, was

Building human value

Health & Hygiene

Water Resource Management

in the US, decline in the prices of Pen

has risen sharply in the recent months,

, which would enhance its reach beyond paediatric market.

82 Annual Report 2004-05

You might also like