Health Care

in
Safe Hands...

ANNUAL R E PORT
2012-2013

Marksans Pharma Limited
Operations
Marksans Pharma Limited’s
operations span across multiple
legal entities. The operations of the
Company have been divided in to four
FRPSDQLHV Bell, Sons & Co. (Druggists) Limited, UK
1. Marksans Pharma Ltd., India
2. Bell, Sons & Co. (Druggists)
Limited, UK
3. Relonchem Limited, UK
4. Nova Pharmaceuticals Australasia
Pty. Ltd., Australia
Bells Product
Marksans India business
Marksans India business comprises developing, manufacturing and selling branded
formulations and generic products for regulated and emerging markets; providing
CRAMS services to leading pharmaceutical companies; and developing and filing for
ANDA/product approvals for manufacturing and selling generic products in the USA,
Europe, Canada, Australia and emerging markets.
Growth The growth of Marksans India sales is primarily a function of growth
in CRAMS demand and export of generic products to US, Europe
and emerging markets.
The company expects sales to grow primarily driven by ANDA/
Product approvals in the global markets.
Profitability Company expects increase in its EBITDA margin on account of new
ANDA product launches in the US markets and also due to better
realization of currency movements.
However, with increase in competition over the years, pricing
pressure may erode the margins.
Investment The company has planned marginal expenses that may be incurred
requirement against the current ANDA filings for launching corresponding
generic products in the US markets.
‡ Bell, Sons & Co. (Druggists) Limited is a manufacturer and distributor of OTC products
in the UK and also exports its products into global markets.
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having full approval of the UK MHRA and currently holds 38 product licenses.
Licensed products contribute over 45% of Bell’ total turnover.
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customers in own label form together with a range of unlicensed products. Customers
include retailers, pharmacies, chemist wholesalers and cash and carry outlets.
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between retail and wholesale sectors. It also has a significant and well established
portfolio of export distributors.
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- Cough and cold remedies
- Galenicals
- Vitamins
- Palliative and healthcare items
- Oils
- Antiseptics and disinfectants
‡ 7KHFRPSDQ\KDVWUDGHGLQWKHH[SRUWPDUNHWVIRU\HDUV7KHFRPSDQ\XVHVD
network of established distributors as the route to overseas markets. Distributors
generally benefit from exclusive distribution rights for their country of operation, thus
providing stability in terms of marketing and price maintenance for both distributor
and the company.
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greatly respected in many overseas markets. The company’s products are sold in more
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Growth The Management expects sales to grow higher than overall growth
rate of UK OTC market. The company plans to further spread out
in domestic markets by strengthening its distribution network going
forward.
The Management plans to utilize Bell’s distribution network to push
pharmaceutical products such as solid orals, which are manufactured
by Marksans India into the UK market.
Profitability Gross profit margins of the company are expected to increase. This
increase in gross profit margin is because the company plans to
source its raw material from price competitive countries like India and
China in the future.
Relonchem Limited, UK
Relonchem Limited is engaged in licensing, marketing and supply of generic pharmaceutical products across UK. The Company has major national
distributors like AAH, Unichem and Phoenix and regional wholesalers as their distribution partners.

The company plans to increase its sourcing from Marksans India’s Goa plant thereby taking advantage of low cost manufacturing.

Growth Relonchem acquisition has given Marksans, immediate sales and marketing front-end access to the UK generic licensing market of
wholesalers, retailers and hospitals. The UK is the second-largest generics market in the European Union, accounting for 26 percent
of the market in value terms. The country’s generics market is one of the world’s largest in terms of both size and value.
Profitability The Management plans to integrate some of the functions such as logistics, finance and accounts and others with Bell. The
Management expects cost synergies which will curtail certain operating expenses and thus improve EBITDA margins.

Nova Pharmaceuticals Australasia Pty Ltd, Australia

Nova Pharmaceuticals Australasia Pty Ltd markets private label OTC and pharmaceutical products.

Growth 1RYDLVVXSSO\LQJSURGXFWVWRWKHWRSPRVWUHWDLOHUVSKDUPDFLHVLQ$XVWUDOLDOLNH:RROZRUWKV/WG&ROHV0D\HU/WG$OGLV0HWFDVK
and Fauldings and Company’s sells are expected to grow higher than overall growth rate of Australia’s OTC market.
Profitability The company plans to increase the sourcing of its products from Marksans India’s Goa plant, which will help it to maintain its profit
margins due to low cost manufacturing.

BUSINESS SUMMARIES
Marksans Pharma Limited (“Marksans” or the
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subsidiary of Glenmark Pharmaceuticals Limited. In
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Laboratories Ltd. and subsequently changed its name to
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engaged in manufacturing and marketing of generic
pharmaceutical products. The Company also offers
Contract Research and Manufacturing Services (CRAMS)
to global pharmaceutical companies. The Company is
listed in India on the BSE and NSE.

GEOGRAPHIC FOCUS
Marksans’ India business focus is on providing branded
formulations with main focus on Oncology, Critical care,
Nuero-Psychiatrist, CVS, Anti-diabetic and Pain Management. Outside of India, its main focused market are US, UK, Australia, New Zealand, Canada,
Germany and other European markets. The Company has established itself in Australia and New Zealand by acquiring a marketing company, Nova
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with its subsidiary, Bell, Sons & Co. (Druggist) Ltd., which is engaged in manufacturing of range of Over the Counter (OTC) products and licensed
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MANUFACTURING AND R&D CAPABILITIES

The Company has a formulation manufacturing unit at Goa. It is one of the leading manufacturing facility for soft gelatin capsules in Asia. This plant
is approved by US FDA, UK MHRA, Australian TGA, Brazilian ANVISA and other foreign health authorities. Marksans also owns a UK MHRA licensed
factory in Southport, UK for manufacturing non-sterile liquids, ointments and powder products. The Company has set up R&D facility at Goa, having
capability of dossier development service, formulation development, analytical development and conducting stability studies.
LEGAL STRUCTURE
Marksans global manufacturing and marketing functions are organized amongst its four legal entities in India, UK and Australia. This structure has
evolved primarily as a consequence of the acquisitions / divestitures done by the Company in past five years. The figure below depicts the current
structure of operations of Marksans at a consolidated level.

India
Marksans Pharma Limited

UK Australia
Nova Pharmaceuticals
Marksans Pharma (UK) Limited
Australasia Pty Limited

Marksans Holding Limited Relonchem Limited

Bell, Sons & Co. (Druggists)

Limited

In order to reduce its real time entry in new markets and expand into global formulation market, the Company adopted the inorganic path.

BUSINESS DIVISION AND PRODUCT PROFILE

The Company specializes in the manufacture of a range of prescription
& OTC generic drugs. Though US, UK, Australia, New Zealand, Canada,
Germany and other European markets are the main focus markets, the
Company is expanding its reach in emerging markets and has filed for
529 registrations across all emerging markets. Out of these it already
has registration of 313 products in countries like Cambodia, Philippines,
Vietnam, Sri Lanka, Kenya, Tanzania, Ukraine, Russia, Hong Kong,
Panama, Nigeria, etc.
Business division

Marksans primarily offers generic pharmaceutical products across

international market, which are primarily manufactured by the Company
itself at its Goa and Southport, UK facilities.

India - CRAMS

Currently the Company has alliance with Multi National generic

Companies for CRAMS for generic products for global markets. It has
licensing agreements with numerous companies for development and
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US

The Company has received ANDA approvals from US FDA which are primarily into CNS, Anti-diabetic, Pain management segments. Company’s
Goa manufacturing plant is also approved by US FDA for its soft gelatin based products. Company has also filed ANDAs for the products which are
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Company has already tied up with major distributors / big pharma companies in the US market for sales and distribution of these products.
Europe

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The Company, through its subsidiary Relonchem Limited markets licensed generic products in the UK, which are primarily sourced from Marksans
India Plant. The Company’s subsidiary Bell, Sons & Co. (Druggists) Ltd.PDQXIDFWXUHVDEURDGUDQJHRI27&ZKLFKDUHVROGLQ8.:HVW$IULFDDQG
the Middle East.

Australia & New Zealand

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with leading retail chains / pharmacies.

Manufacturing and R&D capability

Marksans has two manufacturing facilities – Goa, India and Southport, UK.
Manufacturing facility

1. Goa –India: Marksans’ manufacturing facility in India

is located at Verna, Goa. This plant is of international
standards and adheres to stringent quality norms and
is approved by US FDA, UK MHRA, Australian TGA,
Brazilian ANVISA and other foreign health authorities.
The plant is primarily used for manufacturing
formulations. This facility is one of the largest
manufacturing facility for soft gelatin based products
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2. Southport – UK: Marksans operates a UK MHRA

licensed facility in Southport, UK through its
subsidiary Bell, Sons & Co. (Druggists) Ltd. The
facility manufactures non-sterile liquids, ointments
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Middle East. The facility houses development laboratory and have the capability to develop and improve formulations.

R & D Capability
Goa – India: Currently the Company undertakes all its R&D activities from its R&D facility which is located at its manufacturing facility at Verna, Goa.
Focused area of Marksans R&D activity is to develop generic products and identification of niche areas for product development, mainly in dossier
development, post patent filing for regulated and emerging markets. The R&D capabilities of the Company includes Dossier Development Service,
Formulation Development and conducting stability studies. The facility in houses a
pilot manufacturing plant. This facility is approved by DSIR.

INDIAN CRAMS MARKET

India addresses the outsourcing need across the entire product lifecycle. Indian
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3 times the global CMO market growth rate. Currently innovators outsource 55
percent of the CMO activity. The outsourcing of CTO and CRO is 35 percent and
25 percent of total outsourcing pie. CTO and CRO phase account for 62 percent
and 26 percent of the entire drug development spending, respectively. The share of
spending in CTO and CRO are also much higher compared to CMO in the pharma
life-cycle.

Indian CRAMS Market

1. Indian CRAMS industry (both contract manufacturing and contract research together) accounted just about 4 percent of global CRAMS
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- Growth in the CRO sector is expected to be greater than the growth in the CMO sector.
Indian CMO Market

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2. Formulations outsourcing forms a small part of the Indian CMO sector. However, formulation outsourcing is expected to capture greater market
share in the next few years.

3. Indian CRAMs players have diversified in terms of their product offerings and are building competencies to match the global players

- The players are investing in MNC relationships and have also made some overseas acquisitions to gain access to customers and critical
technologies/capabilities.

Indian CRO Market

1. Apart from the cost advantage, India offers several

other advantages for contract research outsourcing by
pharmaceutical companies including process, analytical and
research chemistry skills, GLP compliant R&D facilities and a
large talent pool of scientists.

2. The growth in the CRO market has been greater than the growth
of the CMO market because of the low base of the market. The
CRO market grew at a CAGR of approximately 85 percent from
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3. Pharmaceutical companies are increasingly shifting the

clinical trials to emerging markets; there is a huge demand for
outsourcing of biometrics, and drug safety work to India.

Future Drivers
High end and complex technology services

High-end outsourced activities like CTO and CRO with significantly higher margins as well as services like high potency drug manufacturing (with
micro operational exposure as in oncology drug), research in nanotechnology etc. are expected to drive growth for the Indian CRAMs players.

Challenges
Regulatory environment

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2. The regulatory timelines need to be shortened.

3. Moreover, investments in upgrading facilities to make them compliant with the regulatory authorities and technological advances costs form a
big part of high percent of fixed costs to the CMOs.

IPR compliance

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innovator pharmaceutical companies.
Lack of CMOs providing comprehensive services

1. There are only a few CMOs that provide end-to-end services spanning development services to packaging and managing logistics.

2. Pharmaceutical companies are interested in alliances with CMO players which provide a comprehensive portfolio of services to them.

High capital expenditure requirement

CRAMs business has a long gestation period and a significant front-ended capital expenditure is involved.

ANDA – Generic Market Opportunities in India

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by new patent expiries and growth in existing generics. At USD 35 bn, the US generics market commands the largest share in the global market.
US Generic Market
1. There is continued penetration of generics in the US market due to steeply escalating healthcare costs and the impending patent cliff. Large
number of patented drugs are going off-patent in the next few years, thereby offering significant opportunities for Indian pharmaceutical players.

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- Approval from US FDA can open up a large USD 35bn market;

- The market is easier to penetrate as it is dominated by ‘generic generics’ compared to branded-generic markets in the emerging world;

- Distribution chain already in place and hence large upfront investments in sales and marketing infrastructure are not required; and

- The gestation period is shorter, as there is no need to build relationships with physicians.

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Impending ‘Patent Cliff’

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2. The sale value of drugs going off-patent over the next five years in the US market is approximately double the sale value of drugs that went off-
patent in the last five years.

3. New generics sales are expected to be the key growth drivers in the regulated markets of the US and Europe.

4. The new generics sales are expected to grow at a CAGR of 22 to 23 percent in the US.

- The existing generics market is expected to grow slowly at a rate of around 3 percent .

5. This provides a considerable opportunity for generic manufacturers to capture greater generics’ share of the US pharma market.

6. Additionally, generic companies will also benefit by the US healthcare bill to extend healthcare coverage to Americans who are still uncovered,
as part of healthcare reforms. The provisions of the new healthcare bill are expected to provide a big impetus to generic drug manufacturers,
globally.

7. The absorption rate for generics in the US market is thus expected to steadily increase over the next few years.

Strategies adopted by Marksans

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little competition in the portfolio of mid-sized and smaller molecules
on account of lower opportunity size as compared to large or
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are concentrated in small and medium-sized molecules. However,
in order to grow to a considerable size in this market, newer players
are required to have a reasonable presence in large and blockbuster
molecules.

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offering niche products in which competition is low. These products
usually address niche segments of the market, are relatively small-
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making these products inaccessible to low-end players competing on price.
Major Challenges faced by Indian Players
Generics players are increasingly facing challenges
including pricing pressures and competition from the big
pharmaceutical MNCs. However, the strategies adopted by
the players are expected to enable them to remain competitive
in the US market.

Competition from MNCs

To stunt the growth of generic companies, the Big Pharma

companies are posing a threat to generic manufacturers
through litigations. They are also increasingly launching
authorized generics. In order to compete with the low prices,
MNCs are also pricing drugs competitively.

Price erosion

1. Multiple players (new and old) rushing towards the US generics market along with the regulatory changes proposed by the government has
resulted in pricing pressure leading to severe price erosion compared with the brand price.

2. Price erosion in certain blockbuster drugs has been as high as 95 percent.

3 The leading Indian players are in a comfortable position to counter the impact of severe price erosion in US generic market because of their large
ANDA/DMF portfolios. However, for limited competition products and vanilla generic fillings, the pressure is still piling.

Delays in approval

A few leading Indian companies have been subject to USFDA scrutiny of their facilities and this has affected the image of Indian companies as
suppliers of quality generics. Hence, the increasing scrutiny and stringency being imposed on generic manufacturers has led to delays in approvals
and are also likely to result in a decrease in the ANDA approvals over the next few years.

Emerging Markets – Formulation Export

The share of formulation exports in the emerging markets has increased in the last few years and Marksans has adopted strategies to maintain and
grow in these markets with a presence in emerging markets. Marksans plans to diversify from the highly competitive regulated markets.

1. Africa, Asia, Central African Republic (CARs) and Commonwealth of Independent States (CIS) account for over 87 percent of the total emerging
markets exports from India.

2. Growth in the emerging markets of Africa, Asia, CARs and CIS countries and Latin America has been healthy. Growth in Latin America was
stronger with a CAGR of 27.5 percent compared to the growth in the other emerging markets which grew at a CAGR of 23 percent between
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emerging markets.

4. Among the emerging markets, the pharmaceutical markets of countries such as Brazil, Mexico, China, South Korea and the CIS region have
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has been strong. Therefore, these markets present considerable opportunities to Indian players.

5. The fast growing emerging markets of Latin America, East Asia and Africa are expected to grow at a rate of 12-14 percent over the next few
years.

6. However, the emerging markets are expected to provide steady growth opportunities to Indian players. Indian players are expected to increase
their presence in these markets through distribution tie-ups and marketing alliances. Indian players with an established presence are expected
to increase their presence in these markets.
Board of Directors Key Management Personnel

Mr. Mark Saldanha Chairman & Managing Director Mr. Mark Saldanha Chairman & Managing Director
Dr. B. S. Desai Whole-time Director Dr. B. S. Desai Whole-time Director & COO
Mr. S. R. Buddharaju Director Mr. Anurag Pathak Head - International Business &
Mr. Ajay S. Joshi Director Global Exports
Mr. Jitendra Sharma &KLHI)LQDQFLDO2IÀFHU

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Company Secretary & Manager – Legal
11th Floor, Lotus Business Park
Off New Link Road Harshavardhan Panigrahi
Andheri (West)
Mumbai – 400053
Statutory Auditors
M/s N. K. Mittal & Associates
Registrar & Share Transfer Agent
Bigshare Services Pvt. Ltd.
E-2/3, Ansa Industrial Estate
Saki Vihar Road, Sakinaka
Andheri (East), Mumbai – 400072

Legal Advisors
M/s Crawford Bayley & Co. Index
Notice ...................................................................................... 01

Bankers Directors’ Report ..................................................................... 03

State Bank of India Annexure to Directors’ Report ................................................ 05

Bank of India Management Discussion & Analysis ...................................... 07
Corporation Bank
Report on Corporate Governance .......................................... 13
Lakshmi Vilas Bank Ltd
Auditors’ Report ...................................................................... 21

Balance Sheet ......................................................................... 24

Works
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I L-82 & 83, Verna Industrial Estate, Verna, Goa - 403 722.
Notes to Financial Statements ................................................ 26
II Bell, Sons & Co. (Druggists) Ltd.
Gifford House, Slaidburn Crescent, Southport, PR9 9AL Cash Flow Statement .............................................................. 41

Statement U/s 212 of the Companies Act, 1956 ................... 42

21st Annual General Meeting
Auditors’ Report on Consolidated Financial Statements ....... 43
Day & Date : Thursday, 26th September, 2013
Consolidated Balance Sheet .................................................. 44
Time : 10.30 a.m.
Venue : GMS Community Centre Hall, &RQVROLGDWHG6WDWHPHQWRI3URÀWDQG/RVV ............................ 45
Sitladevi Complex, Notes to the Consolidated Financial Statements ................... 46
1st Floor, D.N. Nagar, Link Road,
Consolidated Cash Flow Statement ....................................... 58
Andheri (W), Mumbai - 400 053.
 Marksans Pharma Limited

NOTICE
To the Members of Marksans Pharma Limited,

NOTICE is hereby given that the 21st Annual General Meeting of the Members of Marksans Pharma Limited will be held on
Thursday, the 26th September, 2013 at GMS Community Centre Hall, Sitladevi Complex, 1st Floor, D.N. Nagar, Link Road,
Andheri (W), Mumbai 400 053, at 10.30 a.m. to transact the following business:

ORDINARY BUSINESS

1. To receive, consider and adopt the audited Balance Sheet as at 31st0DUFKWKH6WDWHPHQWRI3URÀWDQG/RVVIRUWKH

period ended as on that date and the Report of the Directors and the Auditors thereon.

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$QQXDO*HQHUDO0HHWLQJDQGWRÀ[WKHLUUHPXQHUDWLRQ

SPECIAL BUSINESS

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“RESOLVED THAT Mr. Seetharama Raju Buddharaju be and is hereby appointed as a Director of the Company, liable to
retire by rotation.”

By order of the Board of Directors

Mumbai Harshavardhan Panigrahi

Dated : 16th August, 2013 Company Secretary and Legal Manager

NOTES:
a) A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND
VOTE INSTEAD OF HIMSELF. A PROXY NEED NOT BE MEMBER OF THE COMPANY. Proxies in order to be effective
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meeting.

b) The Register of Members and Share Transfer Books of the Company will be closed from Saturday, the 21st September,
2013 and will remain closed till Thursday, the 26th September, 2013 (both days inclusive).

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advance so as to enable the Management to keep the Information ready.

d) Members holding shares in physical form are requested to immediately intimate to the Company’s Share Transfer Agents,
changes, if any, in their registered address along with the PIN code number. Members holding shares in dematerialized
mode are requested to forward intimation for change of address, if any, to their respective Depository Participant.

e) Trading in the Company’s shares through Stock Exchange is permitted only in dematerialized /electronic form. The
equity shares of the Company have been inducted in both National Securities Depository Limited and Central Depository
Services (India) Limited to enable shareholders to hold and trade the securities in dematerialized /electronic form. In view
of the numerous advantages offered by the Depository System, members holding shares of the Company in physical
form are requested to avail of the facility of dematerialization.

f) In terms of provisions of Section 109A of the Companies Act, 1956, nomination facility is available to individual
shareholders. The shareholders who are holding shares in physical form and are desirous of availing this facility may
kindly write to the Company’s Share Transfer Agent M/s Bigshare Services Private Limited for nomination form quoting
their folio number. Shareholders holding shares in dematerialized form should write to their Depository Participant for the
purpose.

1
 AN N UA L R E P O RT 2012-2013

EXPLANATORY STATEMENT PURSUANT TO SECTION 173(2) OF THE COMPANIES ACT, 1956.

ITEM NO. 3

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vacancy caused by the resignation of Mr. M. B. Parikh. The tenure of Mr. Seetharama Raju Buddharaju shall come to an end
on the date of the forthcoming Annual General Meeting by virtue of the provisions of Section 262(2) of the Companies Act,
1956.

Notice along with deposit of ` 500/- has been received under Section 257 of the Companies Act, 1956, from a member of the
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the Company, liable to retire by rotation.

Mr. Seetharama Raju Buddharaju is a Science Graduate with Post Graduate Diploma in Marketing & Sales Management and
Post Graduate Diploma in Business Management having more than 35 years of experience in Sales Management, Marketing
*HQHUDO$GPLQLVWUDWLRQ+HKDVVXFFHVVIXOO\KDQGOHGYDULRXVVDOHVPDQDJHPHQWDVVLJQPHQWVLQ3DUNH'DYLVDQG3À]HUDW
senior levels in various locations for 22 years. He has also worked as Sales Head for 3 divisions of Sarabhai Chemicals. His
LQGHSWKNQRZOHGJHDQGH[SHULHQFHLQWKHDIRUHVDLGÀHOGVKDOOEHRIJUHDWKHOSWRWKH&RPSDQ\LQWKHORQJUXQLIDSSRLQWHG
as a Director of the Company.

The Board, therefore, commends this item of the accompanying notice for approval of the Members.

None of the Directors, except Mr. Seetharama Raju Buddharaju, is interested or concerned with this resolution.

By order of the Board of Directors

Mumbai Harshavardhan Panigrahi

Dated : 16th August, 2013 Company Secretary and Legal Manager

Important Communication
The Ministry of Corporate Affairs, vide its Circular No. 18/2011 dated 29th$SULOKDVFODULÀHGWKDWDVDPHDVXUH
of “Green initiative in Corporate Governance” it will be in compliance if the Annual Report is sent to the shareholders
through e-mail. To support this green initiative, members holding shares in demat form are requested to provide their
e-mail ID to the Depository through their concerned depository participant and members holding shares in physical
form are requested to provide e-mail ID to the Company’s Registrar and Transfer Agent M/s Bigshare services Pvt. Ltd.
and also update the e-mail address as and when there is any change.

2
 Marksans Pharma Limited

DIRECTORS’ REPORT
The Directors take pleasure in presenting the 21st Report the settlement amount is payable over a period of 12
together with the Audited Accounts of the Company for the months from the date of signing the respective settlement
year ended 31 March, 2013. agreements. Accordingly, the Company has written back
FINANCIAL RESULTS WKH HQWLUH DPRXQW RI 86'  %RQGV DORQJ ZLWK
(` / Lacs) UHGHPSWLRQ SUHPLXP RI 86'  DJJUHJDWLQJ WR
86'DQGSURYLGHGIRUQHZOLDELOLW\EDVHGRQWKH
Particulars 2012-13 2011-12 settlement payout in terms of the Settlement Agreements in
the books of accounts for the year ended 31 March, 2013.
Turnover 19,229.70 15,459.13
3URÀWEHIRUH'HSUHFLDWLRQ 
Amortization expenses, Non-
recurring expenses and Tax
expenses
Less:
Depreciation &
Amortization Expenses
Non-recurring expenses
3,830.84  DE-REGISTRATION FROM BIFR
Due to settlement of a substantial amount of FCCBs and
LPSURYHG ÀQDQFLDO SHUIRUPDQFH RI \RXU FRPSDQ\ WKH 1HW
Worth of your company has turned positive as at 31 March,
2013. Therefore, your company has been de-registered from
the purview of SICA and is no longer under BIFR.
870.33  INTERNAL CONTROL SYSTEMS
- 14,163.27 Your company has in place adequate system of internal
control and management information systems which
Tax expenses (997.77) 
FRYHUVDOOÀQDQFLDODQGRSHUDWLQJIXQFWLRQV7KHVHV\VWHPV
3URÀWDIWHU7D[ 3,958.28  are designed in a manner which provides assurance with
OPERATIONS
During the year ended 31 March, 2013, total turnover achieved
by your company was ` 19229.70 Lacs as compared to
` 15459.13 Lacs in the previous year. The year under review
KDVUHJLVWHUHGDQHWSURÀWRI`/DFVDVDJDLQVWQHW
loss of `/DFVLQWKHSUHYLRXV\HDU7KLVLVPDLQO\
GXHWRVWURQJEXVLQHVVDQGLPSURYHGÀQDQFLDOSHUIRUPDQFHV
new ANDA product licenses in US markets and also due to
better realization on account of currency movement.
RESEARCH AND DEVELOPMENT
The global challenges for the Indian pharma industry at large
have increased several folds in the face of the transition
from process to product patent regime in India from 2005
and to face the challenge, your company has continuously
sharpened its focus on R & D, which is the need of the
hour and will continue to commit funds to strengthen R & D
capabilities. In fact, one of the Company’s biggest strength
lies in vibrant and productive R & D function that has
continuously placed Marksans Pharma Ltd ahead through
consistent development of niche technology, processes
and products. Your company will continue to invest in R
& D to keep pace with the changing domestic and global
scenario. During the year, your company continued product
GHYHORSPHQW DQG GRVVLHU ÀOLQJ LQ 86 (XURSH DQG RWKHU
emerging markets.
FOREIGN CURRENCY CONVERTIBLE BONDS (FCCBs)
Your company has signed settlement agreement with
few bond holders for settlement of principal value of USD
ZRUWKRI%RQGV8QGHUWKHVHWWOHPHQWDJUHHPHQW
regard to maintenance of strict accounting control, optimum
HIÀFLHQF\ LQ RSHUDWLRQV DQG XWLOL]DWLRQ RI UHVRXUFHV DV ZHOO
DVÀQDQFLDOUHSRUWLQJSURWHFWLRQRI&RPSDQ\·VWDQJLEOHDQG
intangible assets and compliance with policies, applicable
laws, rules and regulations.
INFORMATION TECHNOLOGY
Your company continues to make required investments
in the Information Technology area to cope up with the
growing information needs necessary to manage operations
HIÀFLHQWO\
HEALTH, SAFETY & ENVIRONMENT
Your company is committed to ensure sound Safety, Health
and Environment performance related to its activities,
products and services. Your company is also committed
to strengthen pollution prevention and waste management
practices and to provide a safe and healthy environment.
DIVIDEND
In view of settlement payout to the Bond holders, the Board of
'LUHFWRUVLVQRWUHFRPPHQGLQJDQ\GLYLGHQGIRUWKHÀQDQFLDO
year ended 31 March, 2013.
FIXED DEPOSITS
During the year under review, your company has not
accepted any deposits.
DIRECTORS RESPONSIBILITY STATEMENT
In terms of provisions of Section 217(AA) of the Companies
$FWWKH'LUHFWRUVFRQÀUPWKDW
3
 AN N UA L R E P O RT 2012-2013
- in the preparation of the annual accounts, the applicable
accounting standards have been followed;
- appropriate accounting policies have been selected
and applied consistently and judgments and estimates
made that are reasonable and prudent so as to give a
true and fair view of the state of affairs of the Company at
WKHHQGRIWKHÀQDQFLDO\HDUHQGHG0DUFKDQG
WKH6WDWHPHQWRI3URÀWDQG/RVVIRUWKHSHULRGHQGHG
March, 2013;
 SURSHU DQG VXIÀFLHQW FDUH KDV EHHQ WDNHQ IRU WKH
maintenance of adequate accounting records in
accordance with the provisions of the Companies Act,
1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
- the annual accounts have been prepared on a going
concern basis.
CONSOLIDATED FINANCIAL STATEMENTS
In compliance with the Accounting Standard - 21 on
Consolidated Financial Statements, this Annual Report also
LQFOXGHV&RQVROLGDWHG)LQDQFLDO6WDWHPHQWVIRUWKHÀQDQFLDO
year under review. From the Consolidated Statement of
3URÀWDQG/RVVLWPD\EHREVHUYHGWKDWWKHWXUQRYHURIWKH
year under review has increased to `  /DFV IURP
`  /DFV LQ WKH SUHYLRXV ÀQDQFLDO \HDU 'XULQJ WKH
year under review, your company registered a consolidated
QHW SURÀW RI `  /DFV DV DJDLQVW WKH QHW ORVV RI
`/DFVGXULQJWKHSUHYLRXVÀQDQFLDO\HDU
SUBSIDIARIES
Performance of Marksans Pharma (UK) Limited, which
operates in the European market has improved.
Nova Pharmaceuticals Australasia Pty Ltd (your company
holds 60% of the share capital) which operates mainly in
Australia is doing well with consistent growth.
Pursuant to a Central Government’s Circular dated
th February, 2011, the audited accounts together with Director’s
Report and Auditor’s Report of the subsidiaries namely M/s.
Nova Pharmaceuticals Australasia PTY Limited and M/s.
Marksans Pharma (U.K.) Limited are not being appended to
the Annual Report. However, a statement giving information
in aggregate for each subsidiary including subsidiaries of
subsidiaries are attached to the Consolidated Balance Sheet.
CONSERVATION OF ENERGY, TECHNOLOGY
ABSORPTION, FOREIGN EXCHANGE EARNINGS AND
OUTGO
The information required under Section 217(1)(e) of the
Companies Act, 1956 read with the Companies (Disclosure
of Particulars in the Report of the Board of Directors) Rules,
LVDQQH[HGKHUHWRDQGIRUPVSDUWRIWKLV5HSRUW
4
EMPLOYEES
There is no employee drawing remuneration exceeding ` 60
Lacs per annum or ` 5 Lacs per month during the year ended
31 March, 2013 and therefore, provisions of Section 217(2A)
of the Companies Act 1956, read with the Companies
(Particulars of Employee) Rules 1975, as amended up to
date do not apply.
HUMAN RESOURCES DEVELOPMENT AND INDUSTRIAL
RELATIONS
The guiding principle of HR Policy at your company is that
the “Intellectual Capital” and dedication of employees will
help the Company emerge as a successful player in this
highly competitive scenario.
The recruitment procedure ensures that people with talent
and the right skill sets are selected. Nurturing of talent and
a Performance Management System (PMS) is in place to
ensure that the coordinated efforts of our people lead to
achievement of the Business Goals of the company.
Empowerment and a motivational package ensure that
employees keep performing at peak levels. The HR Policy
is directed towards creating “Ownership of Goals” at levels
and synchronizing the efforts of all employees to achieve the
company’s quality and business goals.
Development of skills through mentoring and training by
our seasoned professionals ensures that the talent pool
keeps expanding. The Leadership Role played by our senior
professionals helps to keep the next rung of leadership ready
to take up the challenges thrown up by the global market.
The management helps the process of decision making by
decentralizing and empowering professionals to execute
tasks in a speedy manner. The management fosters
information sharing and free exchange of ideas. Above all,
the sense of ownership and empowerment to take decisions
helps the Company to adapt and be ahead of the competition
in this rapidly changing global environment.
The industrial relation at all the plant sites of your company
is cordial.
As on 31 March, 2013, the Company’s permanent employee
VWUHQJWKZDV
DIRECTORS
Mr. Seetharama Raju Buddharaju, who was appointed
DV D 'LUHFWRU WR ÀOO WKH FDVXDO YDFDQF\ FDXVHG E\ WKH
resignation of Mr. M. B. Parikh with effect from 5th October,
 ZLOO YDFDWH WKH RIÀFH IURP WKH IRUWKFRPLQJ $QQXDO
General Meeting. Your company has received notice from
a member proposing the appointment of Mr. Seetharama
Raju Buddharaju as a Director of the Company. The Board
recommends the appointment of Mr. Seetharama Raju
Buddharaju as a Director liable to retire by rotation.
 Marksans Pharma Limited

CORPORATE GOVERNANCE
Pursuant to the Clause 49 of the Listing Agreement, a
detailed report on Corporate Governance and Management
'LVFXVVLRQDQG$QDO\VLVDQGDFHUWLÀFDWHIURPWKH$XGLWRUV
regarding compliance with the conditions of Corporate
Governance forms a part of this report.
ANNEXURE TO THE REPORT OF
THE BOARD OF DIRECTORS
INFORMATION UNDER SECTION 217(1)(e) OF THE
COMPANIES ACT, 1956, READ WITH THE COMPANIES
(DISCLOSURE OF PARTICULAR IN THE REPORT OF THE
AUDITORS
Members of the Company are requested to appoint Auditors
for the ensuing year. It is proposed to appoint M/s. N. K. Mittal
and Associates, Chartered Accountants, as the Statutory
Auditors of the Company. The Company has received letter
from them to the effect that their appointment, if made,
would be within the prescribed limits Under Section 224
of the Companies Act, 1956. The Board recommends their
appointment as Statutory Auditors.
APPRECIATION
The directors place on record their appreciation for the
contribution made by the employees at all levels enabling
%2$5' 2) ',5(&7256 58/(6  $1' )250,1*
PART OF DIRECTORS REPORT FOR THE YEAR ENDED
31ST MARCH, 2013.
A. CONSERVATION OF ENERGY
a) Energy Conservation measures taken:
The Company continues with its policy of
giving priority to energy conservation measures
including regular review of energy generation and
consumption and effective control on utilization of
energy.
The following energy conservation methods were
implemented during the year.
 
the Company to achieve the performance during the year
under review.
The directors also appreciate the valuable co-operation
and continued support extended by Company’s Bankers,
Medical Professionals, Business Associates and Investors
who have put their faith in the Company.
D ,QWHQVLÀHG LQWHUQDO DXGLW DLPHG DW GHWHFWLQJ
wastage and leakage of utility Circuits.
b) Scheduled production to avoid usage of diesel
during “Weekly Power Shutdown”.
c) Changed over to Agro Waste Fired boilers.
d) Optimisation in use of cooling water pumps.
  H 8VHRIHQHUJ\HIÀFLHQWSXPSVDQGPRWRUV
By order of the Board of Directors
f) Chemical dosing of cooling/chilling water
system.
Mumbai Mark Saldanha   J ,QVWDOOHG HQHUJ\ HIÀFLHQW PRWRUV IRU FKLOOLQJ
Dated 16th August, 2013 Chairman & Managing Director plant compressors.
h) Cold Insulation ducting and HVAC system was
checked and sections redone.
b) Additional investments:
The Company is continuously installing electronic
devices to improve quality of power and reduction
of energy consumption:
c) Impact of above measure:
The adoption of energy conservation measures
have resulted in considerable savings and increased
level of awarness amongst the employees. The
energy conservation measures have also resulted
in improvement of power factor and consequential
WDULIIEHQHÀWV

5
 AN N UA L R E P O RT 2012-2013

d) Energy Consumption: (3) Future plan in action

Particulars 2012-13 2011-12 Development of new and innovative products
1 Electricity will lead to evolution of comprehensive range
(a) Purchases
of generics leading to Abbreviated New Drug
$SSOLFDWLRQV'RVVLHUVIRUÀOLQJ
Units (kwhs) 5,196,315.00 5,555,130.00
Total Amount (`) 24,983,447.00 21,710,545.00 (4) Expenditure on R&D
Rate/ Unit (`) 4.81 3.91   &RPSDQ\ FRQWLQXHV WR EHQHÀW IURP WKH H[WHQVLYH
(b) Own Generation Research and Development (R&D) activity carried
(i) Through Diesel on. During the year, your company has incurred
Generation expenses of R & D nature for new products
Units (in’000 kwhrs) 162.80 204.22 GHYHORSPHQW DQG $1'$  'RVVLHUV ÀOLQJ IRU
Units per Ltr of Diesel 2.96 2.96
regulated and emerging markets.
Oil Technology absorption, adaptation and innovation.
Cost/ Unit (`) 15.15 14.39 1. Efforts in brief, made towards technology absorption
(ii) Through Steam 0 0 adaptation and innovation.
Turbine/ Generator
Improvements in process parameters, up-gradation
2 Coal 0 0
of plant and systems facility, working systems,
3 Furnace Oil documentation and practices to international
Qty (units in’000 K.Ltrs) 0 0 regulatory standards for European and U.S. Market.
Total Amount (`in’000) 0 0
2. %HQHÀWVGHULYHGDVDUHVXOWRIWKHDERYHHIIRUWV
Average Rate (`/K/Ltr) 0 0
4 Light Diesel Oil Bio Fuel being substantially cheaper to Furnace
Oil, its usage will generate savings in fuel cost. Also
Units (K.Ltrs) 0 0
it will save time on steam generation and add to
Total Amount (` ‘000) 0 0
operator safety. Access to highly regulated markets,
Average Rate (`/K.Ltr) 0 0
thereby increasing the sales volumes. Installation
5 Petcoke of new testing equipment has substantially
Qty (units in ‘000) 0 0 reduced dependency on external testing, thereby
Total Amount (` ‘000) 0 0 reducing the overall operational time cycles. The
Average Rate 0 0 same has also resulted in reduction in manpower.
6 Agrowaste Improvements in process parameters have reduced
Consumption the percentage rejection in the process thereby
Qty (units in ‘000) 4,073.70 3,544.00 reducing the wastage of costly raw material.
Total Amount (` ‘000) 14,961.47  3. Imported Technology
Average Rate 3.67 3.36 Nil
7 Other Internal 0 0
C. FOREIGN EXCHANGE EARNINGS & OUTGO
Generation
'XULQJ WKH ÀQDQFLDO \HDU  \RXU FRPSDQ\
B. TECHNOLOGY ABSORPTION used foreign exchange amounting to `  /DFV
(Previous Year ` 2041.32 Lacs) and earned foreign
Research and Development (R&D)
exchange amounting to `/DFV3UHYLRXV<HDU
(1) 6SHFLÀF DUHDV LQ ZKLFK 5 ' FDUULHG RXW E\ WKH ` 15041.17 Lacs).
Company.
  )RUD\ LQWR *HQHULF EXVLQHVV DQG LGHQWLÀFDWLRQ RI By order of the Board of Directors
few niche areas for product development, mainly in
GRVVLHUGHYHORSPHQWSRVWSDWHQWÀOLQJIRUUHJXODWHG
& semi regulated markets. Mumbai Mark Saldanha
16th August, 2013 Chairman & Managing Director
(2) %HQHÀWVGHULYHGDVDUHVXOWRIDERYH5 '
Increase in number of products exported to US,
Europe and other regulated and emerging markets.

6

MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT
Global Pharmaceutical Market
The global pharmaceutical market is expected to grow at
a CAGR of 5%, exceeding sales worth US$ 1.1 Trillion by
2017. This market, however, is expected to undergo a
number of transitions which would impact the course of its
growth. These transitions include a shift of growth from the
developed to the emerging markets, an increasing focus
on biopharmaceuticals compared to small molecule drugs
and an increasing preference for generics compared to their
branded versions.
*HQHULFVIRFXVHG FRPSDQLHV ZLOO FRQWLQXH WR EHQHÀW IURP
patent expirations in 2013. While generic drug use is rising
globally, ongoing price erosion and higher costs associated
with producing more complex drugs are likely to cut into
SURÀWV
+RZHYHU86GHÀFLWUHGXFWLRQHIIRUWVDQGSHUVLVWHQWSULFLQJ
pressures from healthcare reforms, in Europe in particular,
will continue to weigh on the revenues of pharmaceutical
companies.
The regulatory pathway for biosimilars, which are copies of
biotech drugs, is likely to become clearer in the US, opening
WKH GRRU WR UHJXODWRU\ ÀOLQJV WKLV \HDU %LRWHFK GUXJV DUH
manufactured in a living system such as plant or animal
cells, as opposed to traditional pharmaceutical drugs, which
are made by combining chemical ingredients. In Europe, the
creation of a pathway for copies of more complex biotech
drugs could lead to at least one biosimilar being ready for
launch when the patent on Remicade expires in Europe in
Marksans Pharma Limited
However, increasing price and cost pressure, regulatory
changes and expiring patents are leading to shrinking
margins in the pharmaceutical industry.
The global pharmaceutical industry is facing a major
structural change. Even though global sales have risen in
UHFHQW\HDUVSURÀWPDUJLQVKDYHGURSSHGFRQVLGHUDEO\7KLV
PHDQVUHDOLJQLQJEXVLQHVVPRGHOVWRÀWWKHYDULRXVSURGXFW
market constellations and their requirements is imperative
for ensuring business success.
Strategies for success
(i) pharmaceutical companies must manufacture their
SURGXFWVLQDFRVWHIÀFLHQWZD\WRUHPDLQSURÀWDEOH7R
do so, companies can completely outsource certain
functions or relocate them to low-cost countries.
Companies that can offer high-quality products at
reasonable prices will be successful, but this will require
HIÀFLHQWDGPLQLVWUDWLRQPDUNHWLQJDQGVDOHVPRGHOV
(ii) A growing middle class, improving healthcare and rising
income levels in emerging markets is driving up demand,
even for more expensive medication. The development
of new and innovative products provides considerable
growth potential. However, successful market entry is
SRVVLEOHRQO\LISURGXFWVPHHWVSHFLÀFPDUNHWFRQGLWLRQV
and patient requirements. To realize this, companies
should conduct their medical affairs and R&D activities
locally. Furthermore, these companies need a strong
local sales organization and to collaborate with regional
companies in order to gain effective access to patients
willing to pay higher prices.
August 2014. LLL 3KDUPDFHXWLFDO FRPSDQLHV QHHG HIÀFLHQW SURGXFWLRQ
However, market uncertainty, responding to price pressure, and sales initiatives to drive their sales and earnings.
rising competition and regulatory changes are the leading To do so, collaborating with local partners makes good
business concerns for the global pharmaceutical industry in business sense.
2013.
US Generic Market:
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‡ 7KHUH LV FRQWLQXHG SHQHWUDWLRQ RI JHQHULFV LQ WKH 86
industry respondents highlighted that capital expenditure
market due to steeply escalating healthcare costs and
towards ‘new product development’, ‘employee training’,
the impending patent cliff. Large number of patented
and ‘IT infrastructure development’ would increase in 2013.
drugs are going off-patent in the next few years,
The top three priorities for global pharmaceutical industry are WKHUHE\ RIIHULQJ VLJQLÀFDQW RSSRUWXQLWLHV IRU ,QGLDQ
¶QHZSURGXFWVDQGVHUYLFHV·¶LPSURYHRSHUDWLRQDOHIÀFLHQF\· pharmaceutical players.
and ‘expand in current markets’.
‡ 7KH 86 JHQHULF PDUNHW SUHVHQWV WKH IROORZLQJ
The US to offer the highest growth potential among advantages for the Indian generics players:
developed countries in 2013-2014.

7
 AN N UA L R E P O RT 2012-2013
- Approval from US FDA can open up a large USD
35bn market;
- The market is easier to penetrate as it is dominated
by ‘generic generics’ compared to branded-
generics markets in the emerging world;
- Distribution chain already in place and hence
large upfront investments in sales and marketing
infrastructure are not required; and
- The gestation period is shorter, as there is no need
to build relationships with physicians.
‡ 7KH86PDUNHWDFFRXQWVIRUDSSUR[LPDWHO\SHUFHQWRI
the global generics market and therefore offers a large
scope for scaling up operations.
Impending ‘Patent Cliff’
‡ $SSUR[LPDWHO\86'EQZRUWKRIGUXJVDUHH[SHFWHG
to go off-patent by 2015. The value of these drugs going
RIISDWHQWLVH[SHFWHGWRSHDNLQWKHFXUUHQWÀVFDO
‡ 7KHVDOHYDOXHRIGUXJVJRLQJRIISDWHQWRYHUWKHQH[WÀYH
years in the US market is approximately double the sale
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‡ 1HZJHQHULFVVDOHVDUHH[SHFWHGWREHWKHNH\JURZWK
drivers in the regulated markets of the US and Europe.
‡ 7KHQHZJHQHULFVVDOHVDUHH[SHFWHGWRJURZDWD&$*5
of 22 to 23 percent in the US. However, the existing
generics market is expected to grow slowly at a rate of
around 3 percent.
‡ 7KLV SURYLGHV D FRQVLGHUDEOH RSSRUWXQLW\ IRU JHQHULF
manufacturers to capture greater generics’ share of the
US pharma market.
‡ $GGLWLRQDOO\JHQHULFFRPSDQLHVZLOODOVREHQHÀWE\WKH
US healthcare bill to extend healthcare coverage to
Americans who are still uncovered, as part of healthcare
reforms. The provisions of the new healthcare bill are
expected to provide a big impetus to generic drug
manufacturers, globally.
‡ 7KHDEVRUSWLRQUDWHIRUJHQHULFVLQWKH86PDUNHWLVWKXV
expected to steadily increase over the next few years.
Emerging markets offer growth opportunities
Focusing on high-growth emerging markets could
provide a way out of this tough situation. These markets
will play a major role in driving the growth of the global
pharmaceuticals market in the coming years. While the
market for pharmaceutical products will grow on average

by 4.5% annually through 2016, growth in emerging market
will increase by almost 12%. Especially China, Brazil, India
and Russia are experiencing above-average growth. Overall,
emerging markets are expected to account for nearly 40% of
the global market for pharma solutions by 2016.
The rising purchasing power in these regions, the growing
middle class and better healthcare systems are driving the
demand for medication. Many pharmaceutical companies
are increasingly focusing on emerging markets to better
leverage the considerable growth potential in these regions.
More and more pharmaceutical companies are already
planning to relocate their administration, R&D and sales
departments to these high-growth countries.
Global outsourcing market:
Recent structural changes in the global pharmaceutical
industry has led to outsourcing being a key strategy for
LPSURYLQJ SURÀWDELOLW\ IRU LQQRYDWRU FRPSDQLHV 7KHVH
include a) declining productivity, b) rising costs of R&D, c)
looming patent cliff, d) increasing genericization of products
coupled with weaker pipelines of innovator companies, e)
fewer blockbuster launches, and f) delays in new product
approvals.
Major decisive factors for pharmaceutical companies to
DGRSWRXWVRXUFLQJLQFOXGHÁH[LELOLW\TXLFNHUWLPHWRPDUNHW
and lower scale-up costs in order to meet increasing
demand for new drugs and focus on core competencies.
Outsourcing also helps in the reduction of excess capacity in
their manufacturing networks and restructure supply chains.
‡ *OREDO RXWVRXUFLQJ PDUNHW UHSRUWHG D VORZGRZQ LQ
growth driven by factors such as inventory rationalization
by global innovators, reduced R&D spending etc.,
triggered by the recent economic crisis.
‡ +RZHYHURYHUWKHPHGLXPWRORQJWHUPWKLVPDUNHWLV
likely to grow at a CAGR of about 20-25 percent, backed
by strong fundamental drivers such as a) increased
outsourcing by big pharmaceutical companies; and
b) increased traction in the new and high-end service
contracts.
Asia emerging as a preferred outsourcing hub
‡ 7KHQXFOHXVRIRXWVRXUFLQJLVIDVWVKLIWLQJIURPZHVWHUQ
territories of North America and Europe towards Asia.
Asia has number of local contract manufacturing players
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DQG*03FHUWLÀFDWLRQV
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compared to the western region.
 Marksans Pharma Limited

‡ 3KDUPDFHXWLFDO FRPSDQLHV KDYH DOUHDG\ UHDOL]HG WKH The Company has now started its next phase of development
potential offered by these markets with about 32 percent of molecules with high potential in the US and European
of them preferring Asia for outsourcing. markets. The Company has adopted a cognizant strategy
RI LGHQWLÀFDWLRQ RI SURGXFWV LQYROYLQJ FRPSOH[ FKHPLVWU\
Indian CRAMS Market
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‡ ,QGLDQ &5$06 LQGXVWU\ ERWK FRQWUDFW PDQXIDFWXULQJ regulatory norms. This focused presence in niche areas
and contract research together) is growing at about 12 will help to ensure a sustainable market opportunity and
percent of the global CRAMs market. Growth in the CRO FRQWLQXHGSURÀWDELOLW\
sector is expected to be greater than the growth in the
R & D has developed the new formulations for existing
CMO sector.
molecules and drug combinations which include its
‡ )RUPXODWLRQV RXWVRXUFLQJ IRUPV D VPDOO SDUW RI WKH standardization and execution at production site, evaluation of
Indian CMO sector. However, formulation outsourcing is these batches against reference samples for pharmaceutical
expected to capture greater market share in the next few and bio-equivalence. Alliances for the said molecules are
years. already in place for the US market.
‡ ,QGLDQ&5$0VSOD\HUVKDYHGLYHUVLÀHGLQWHUPVRIWKHLU Europe Market: The company currently has more than 100
product offerings and are building competencies to product registrations across various therapeutic segments.
match the global players. The players are investing in For contract manufacturing opportunities, the Company
MNC relationship and have also made some overseas has tied up with major Generic players across Europe.
acquisitions to gain access to customers and critical The Company has also registered growth in its business
technologies/capabilities. via supply to major retail brands in the analgesics and anti
LQÁDPPDWRU\VHJPHQW7KHIROORZLQJDUHVRPHRIWKHPDMRU
PERFORMANCE REVIEW
products in these markets:
The Company is actively engaged in R&D and offering
CRAMS to global pharmaceutical companies. The R&D Product Therapeutic Category
capability of the Company includes Dossier Development Ibuprofen softgel caps 200/400mg analgesic
6HUYLFH )RUPXODWLRQ 'HYHORSPHQW DQG 6SHFLÀHG 'UXJ Metformin anti-diabetic
Delivery System. Paracetamol antipyretic, analgesic
Gabapentin anti-epileptic
The Company’s state-of-the-art manufacturing facility in Goa Ranitidine anti-ulcerant
is of international standards adhering to stringent quality Quanapril anti-hypertensive
norms and are approved by US FDA, UK MHRA, Australian 7HUELQDÀQH skin infections
TGA, Brazillian ANVISA and other foreign health authorities. Loratadine anti-allergic
This facility is designed to produce high quality, high value Aspirin E antipyretic, analgesic
formulations using cost-effective methods and processes. Temazepam insomia
The company meets international standards of quality at Tramadol pain reliever
each step of the manufacturing process. It is one of the Fluoxetine depression
biggest manufacturing facilities for soft gelatin capsules and 1RUÁR[DFLQ anti-infective
tablets in Asia. Lisinopril anti-hypertensive
Alprazolam anti-anxiety
International formulation business Piroxicam NSAIDs
Main focus market for the Company is US, UK, Australia, Chlordiazepoxide sedative
New Zealand, Canada and other European markets. It is also Cyclazine HCI antihistamine
eying to tab huge Russian and CIS markets and has started Mitrazapine depression
GRVVLHUÀOOLQJLQWKHVHFRXQWULHV Co-trimoxazole anti-infective
Domeperidone antiemetic
US Market: The Company has received ANDAs approval Phenytoin anti-epileptic
from US FDA and are in the process of approval for more Dextromethorphan cough Scold
products. Paracetamol+Phenylephrine HCI analgesic, antipyretic
The Company has already tied up with major distributors/ Diphenhydramin HCI anti-allergic
big pharma companies in the US market for sales and Gliclazide anti-diabetic
Acebutolol anti-hypertensive
distribution of these products.
Bisoprolol anti-hypertensive

9
 AN N UA L R E P O RT 2012-2013

Australia & New Zealand Markets: After getting approvals for Relonchem Limited is engaged in licensing, marketing and
the Ibuprofen 200mg Soft gel product within Australia and supply of generic pharmaceutical products across UK. Nova
New Zealand, major Pharmacies have already tied up for Pharmaceuticals Australasia PTY Limited is a wholesale
supply of the product through their retail chains. distributor of private label OTC and pharmaceutical products
Emerging Markets: The Company is aggressively spreading which operates in Australia and New Zealand. Whereas
LWV ZLQJV LQ WKH HPHUJLQJ PDUNHWV 7LOO QRZ LW KDV ÀOHG Bell, Sons & Co. (Druggists) Limited is a manufacturer and
529 registrations across all emerging markets and about distributor of OTC products in the UK.
 SURGXFWV DUH LQ WKH SURFHVV RI ÀOLQJ 2XW RI WKH WRWDO Major products of these subsidiaries are as follows:
UHJLVWUDWLRQÀOHGLWKDVDOUHDG\JRWSURGXFWVUHJLVWHUHG
in these countries. Company’s products are well accepted in Bell, Sons & Relonchem Nova
these countries. Co. (Druggists) Limited, UK Pharmaceuticals
Limited, UK Australasia Pty
Further, statutory compliances are in process for entering in Limited. Australia
central and south America and other CIS countries. Bronchial Balsam Fluoxetine capsules Hedanol
New Products to drive growth Emmollient Lisinopril tablets Hedafen
Muscle Rub Ibuprofen tablets YLC tablets
The Company has introduced several new products in global
markets in the last two years. The new products launched Coop Dry Tickly Loratadine tablets HB cream
dispenser
in FY12 and FY13 generated revenues of ` 274mn in FY13.
We expect the new products to drive future growth of the Vapour Rub Tamoxifen tablets +%FUHPHUHÀOO
company. These products are as follows: Cough Linctus Aciclovir ointment Strataderm
2%
Year Product Therapeutic category Asda Bronchial Metformin tablets B & G cough
FY12 Quinapril anti hypertensive Balsam syrup
7HUELQDÀQH skin infections Tesco Adult Omeprazole Signature Say &
Cough capsules Night
Loratadine anti-allergic
Menthodex Propanolol Signature Allergy
Temazepam insomnia
Cough Mix tablets
1RUÁR[DFLQ anti-infective
Hydrogen Ranitidine tablets Signature Sinus
Alprazolam anti-anxiety Peroxide
Domeperidone antiemetic Menthodex Simvastatin Signature Head
Phenytoin anti-epileptic Lozenges tablets Cold
FY13 Gabapentin anti-epileptic Baby Cough 7HUELQDÀQH HB capsules
Piroxicam NSAIDs tablets
Chlordiazepoxide sedative Gliclazide tablets B & Gchestrub
Cyclazine HCI antihistamine Finasteride tablets Soft gel Headafen
Mirtazepine depression Medi Choice
Co-trimoxazole anti-infective Ibuprofen
Dextromethorphan cough Scold Terry White Aspirin
Parecetamol + analgesic, antipyretic Chem Mart
Phenylepherine HCI Aspirin Pharmacy
Choice Aspirin
Diphenhydramin HCI anti-allergic
Gliclazide anti-diabetic OPERATIONAL REVIEW
Acebutolol anti hypertensive The Company constantly reviews its product-market portfolio
Bisoprolol anti hypertensive with a view to strengthen sustainable growth. It has worked
Subsidiaries towards strengthening its competitive status by investing in
long-term value assets.
The Company’s global manufacturing and marketing
functions are organized amongst four legal entities in India, To ensure superior control of operations, the company has
UK and Australia. been able to better monitor its operations and costs.

10

Revenue
Turnover of the Company has increased from ` 15459.13
Lacs in 2011-12 to ` 19229.70 Lacs in 2012-13 i.e. an
increase by 24.39%.
Cost of Sales
Cost of sales has increased to ` 10270.37 Lacs in 2012-13
from `/DFVLQLHDQLQFUHDVHE\
Other Expenses
Other Expenses decreased from ` 17105.90 Lacs in 2011-12
to `/DFVLQLHDGHFUHDVHE\7KH
other expenses were high during 2011-12 due to one time
exceptional charges.
Depreciation and amortization expenses
Depreciation and amortization expenses decreased from
`/DFVLQWR`/DFVLQLHD
decrease by 51.60%.
Finance Cost
)LQDQFHFRVWKDVGHFUHDVHGIURP/DFVLQWR
` 1013.24 Lacs in 2012-13 i.e. a decrease by 79.36%. During
2011-12, it was high due to provisioning of foreign exchange
ÁXFWXDWLRQORVVRQ)&&%V
Share Capital
Share Capital has increased to ` 5203.07 Lacs in 2012-13
from `/DFVLQWKH\HDULHDQLQFUHDVHE\
GXHWRFRQYHUVLRQRIZDUUDQWVLQWRHTXLW\VKDUHV
Reserves and Surplus
The Reserves & Surplus is ` 5794.56 Lacs in 2012-13 as
compared to a negative Researve & Surplus of `
Lacs in the year 2011-12 i.e. an increase by 124.19%.
Long term borrowings
Long term borrowings has reduced to `/DFVLQ
13 from `/DFVLQLHDGHFUHDVHE\
due to the repayment during the year.
Short term borrowings
Short term borrowings has reduced to ` 7531.23 Lacs in
2012-13 from `/DFVLQLHDGHFUHDVHE\
2.42%.
Trade Payables
Trade payables has increased to `/DFVLQ
from `/DFVLQLHDQLQFUHDVHE\
Marksans Pharma Limited
Other current liabilities
Other current liabilities has reduced to ` 7505.16 Lacs in
2012-13 from ` 29443.49 Lacs in 2011-12 i.e. a decrease by
74.51% due to FCCB settlement.
Tangible Assets
The Company’s tangible assets has increased to ` 5029.12
Lacs in 2012-13 from `  /DFV LQ  LH DQ
increase by 2.73%.
Intangible Assets
During the year 2012-13, the Company’s Intangible Assets
has reduced to ` 2256.34 Lacs from ` 2770.13 Lacs in 2011-
LHDGHFUHDVHE\
Non-current investments
Non-current investments has increased to ` 6761.64 Lacs
in 2012-13 from ` 2351.46 Lacs in 2011-12, on account of
reinstatement of the investment value at cost due to improved
ÀQDQFLDOSHUIRUPDQFHRIWKHVXEVLGLDULHV
Long term loans and advances
Long term loans and advances has decreased to ` 120.21
Lacs in 2012-13 from ` 395.09 Lacs in 2011-12.
Inventory
Inventory has increased to ` 5131.75 Lacs in 2012-13 from
` 4024.70 Lacs in 2011-12 i.e an increase by 27.51%.
Receivable
Receivable has increased to `/DFVLQIURP
`/DFVLQGXHWRLQFUHDVHLQVDOHV
Short term loans and advances
Short term loans and advances has increased to ` 2542.51
Lacs in 2012-13 from `/DFVLQ
Cash and cash equivalents
Cash and cash equivalents has reduced to ` 41.29 Lacs in
2012-13 from `/DFVLQ
OPPORTUNITIES
We see the following forces to provide ample opportunities
for the Indian pharmaceutical sector.
1. The Indian pharmaceutical market is expected to grow
at 13% to 16% in the coming years.
2. Many big global players are outsourcing Contract
Research and Manufacturing services (CRAMS) in India.
11
 AN N UA L R E P O RT 2012-2013

3. Billions of US$ worth of drugs going off patent each 2. Low cost manufacturing base
year in US opening the vast US market for the Indian
3. World class manufacturing facilities with huge capacities
pharmaceutical sectors.
approved by major global health authorities
THREATS, RISKS AND CONCERNS
4. Own front ends into UK/Europe and Australia
Compared with other sectors, pharmaceutical sector works
5. Tie up with big pharmaceutical companies
in a dynamic environment and are subject to the following
threats, risks and concerns. 6. Strong R&D, Dossier development capabilities

1. High competition is adversely affecting the margins. 7. Preferred outsourcing partner

2. High attrition rate. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

 /DFNRIWDOHQWHGDQGWHFKQLFDOÀHOGVWDII The Company has an adequate internal control system

4. Government action on price control.
 5LVLQJDXGLWEXUGHQVLQVSHFWLRQVDQGÀWQHVVUHJXODWLRQV
6. Though the global economy has started recovery,
growth in the US and European markets which are the
major focused market for the Company, is relatively low.
 )RUHLJQ([FKDQJHÁXFWXDWLRQV
 ,35LVVXHV
OUTLOOK
Despite the aforesaid threats, risks and concerns, the
Management looks forward to a satisfactory performance in
the coming years in the light of the opportunities available.
The following key factors will drive the Company forward :
1. Global presence – Export Oriented Unit
including suitable monitoring procedures commensurate
with its size and the nature of the business. The internal
control system – based on existing laws, regulations and
the company policies – comprises regular internal audits,
management reviews and use of standard policies and
JXLGHOLQHVDLPHGDWHQVXULQJUHOLDELOLW\RIÀQDQFLDODQGRWKHU
records.
CAUTIONARY STATEMENT
Statements in the Management’s Discussion and Analysis
Report describing the Company’s objective, projections and
estimates are forward looking statements and progressive
within the meaning of applicable Security Laws and
Regulations. Actual results could differ materially from those
expressed or implied since the company’s operations are
LQÁXHQFHGE\PDQ\H[WHUQDODQGLQWHUQDOIDFWRUVEH\RQGWKH
control of the Company.

12
 Marksans Pharma Limited

CORPORATE GOVERNANCE REPORT 2012-13

Company’s Philosophy on Corporate Governance
The Company is committed to the principles of good corporate governance to achieve long term corporate goals and to
enhance shareholders value by managing its operations at all levels with highest degree of transparency, responsibility and
GHOHJDWLRQZLWKHTXLW\LQDOOIDFHWVRILWVRSHUDWLRQVOHDGLQJWRVKDUSIRFXVDQGRSHUDWLRQDOO\HIÀFLHQWJURZWK7KHVSLULWRI
&RUSRUDWH*RYHUQDQFHKDVSUHYDLOHGLQWKH&RPSDQ\DQGKDVLQÁXHQFHGLWVGHFLVLRQVDQGSROLFLHV7KHVWURQJLQWHUQDOFRQWURO
system and procedures and codes of conduct for observance by the Company’s directors and employees are conducive
in achieving good corporate governance practices in the Company. The compliance report is prepared and given below in
conformity with the mandatory requirements of Clause 49 of the Listing Agreement with the Stock Exchanges.
Board of Directors
As on the date of this report, the total number of Directors on the Board is 4 (four). Out of that two Directors are non-
H[HFXWLYH DQG LQGHSHQGHQW 'XULQJ WKH ÀQDQFLDO \HDU XQGHU UHYLHZ  %RDUG 0HHWLQJV ZHUH KHOG RQ WKH IROORZLQJ GDWHV

and 27.03.2013.
None of the Directors are members of more than 10 Committees of the Board nor are the Chairman of more than 5 Committees
of the Board across all the companies in which they are directors. The details as to Composition, Status, Attendance at the
Board Meetings and the last Annual General Meeting, outside Directorship and other Committees membership are as follows:

Name of the Executive/ No. of No. of No. of Membership Chairmanship Whether

Director Non- Shares Board outside held in held in attended last
executive/ in the Meetings directorship Committee of committee of AGM
Independent/ Company attended in Public Directors** Directors**
Promoter out of 11 Limited
held Companies*
Mr. Mark Saldanha Executive,  9 Nil Nil Nil Yes
(Chairman & Non-
Managing Director) Independent
& Promoter
Dr. B. S. Desai Executive Nil 11 Nil Nil Nil Yes
& Non-
Independent
Mr. S. R. Non- Nil 9 Nil Nil Nil -
Buddharaju executive &
Independent
Mr. Ajay S. Joshi Non- Nil 1*** Nil Nil Nil No
executive &
Independent

* This excludes directorship held in private companies, foreign companies, companies formed under section 25 of the
Companies Act, 1956 and directorship held as an alternate director.
** Membership/Chairmanship in Committee of Directors include Audit Committees and Shareholder/Investors Grievance
Committees only. This does not include membership/chairmanship in committee of Directors of Marksans Pharma Limited.
*** Mr. Ajay S. Joshi has attended one meeting physically and three meetings through tele conferencing.

Audit Committee
The Audit Committee consists of Directors, namely Mr. S. R. Buddharaju (Chairman), Dr. B. S. Desai and Mr. Ajay S. Joshi.
The Managing Director, head of Finance along with statutory auditors are invited to the audit committee meetings. Company
Secretary acts as the Secretary to the Committee. The constitution, functions and the terms of the reference of the Audit
Committee are those prescribed under Clause 49 of the Listing Agreement as well as under Section 292A of the Companies
$FW'XULQJWKHÀQDQFLDO\HDUXQGHUUHYLHZ$XGLWFRPPLWWHHPHHWLQJVZHUHKHOGZKLFKZHUHDWWHQGHGE\DOOWKH
members of the Committee.

13
 AN N UA L R E P O RT 2012-2013

Remuneration Committee
The Remuneration Committee of the Company consists of Directors, namely Mr. S. R. Buddharaju (Chairman), Dr. B. S. Desai
and Mr. Ajay S. Joshi. The Committee has power to determine the remuneration of the executive Directors of the Company as
per the provisions of Clause 49 of the Listing Agreement and applicable provisions of the Companies Act, 1956.
Investors’ Grievance Redressal Committee
The Investor Grievance Redressal Committee consists of Directors, namely Mr. S. R. Buddharaju (Chairman), Dr. B. S. Desai
and Mr. Ajay S. Joshi. The Committee looks into the shareholders’ and Investors grievances. The Committee also oversees the
performance of the Registrar and Share Transfer Agent and recommends measures to improve the level of investor services.
Number of complaints received during the year :4
Number of complaints resolved to the satisfaction of shareholders :4
Share Transfer System
The Company has appointed Bigshare Services Private Limited as its Registrar and Share Transfer Agent for both physical
and demat segment. The Company has authorised the Company Secretary of the Company to approve the share transfers
lodged in physical mode. The shares lodged in physical mode are transferred and returned in 15 days from the date of
receipt, so long as the documents are complete in all respects. As on 31.03.2013, no shares were pending for transfer.
7KH%RDUGKDVGHVLJQDWHG0U+DUVKDYDUGKDQ3DQLJUDKLWKH&RPSDQ\6HFUHWDU\RIWKH&RPSDQ\DV&RPSOLDQFH2IÀFHU
Disclosures
D 1RPDWHULDOÀQDQFLDODQGFRPPHUFLDOWUDQVDFWLRQVZHUHUHSRUWHGE\WKHPDQDJHPHQWWRWKH%RDUGRI'LUHFWRUVLQZKLFK
PDQDJHPHQWKDGSHUVRQDOLQWHUHVWKDYLQJDSRWHQWLDOFRQÁLFWZLWKWKHLQWHUHVWRIWKH&RPSDQ\DWODUJH
b) There was no non-compliance during the last three years by the Company on any matter related to the capital market.
Consequently, there were neither any penalties imposed nor strictures passed on the Company by Stock Exchanges,
SEBI or any statutory authority.
c) The Company is fully compliant with the applicable mandatory requirements of Clause 49 of the Listing Agreement on
Corporate Governance.
d) There is no pecuniary relationship or transaction between the non-executive directors and the Company.
e) There is no relationship between the directors inter se except as members of the Board.
f) Details of related party transactions during the year ended 31st March, 2013 has been set out under Note No. 2.20 of the
Notes annexed to the Financial Statements for the year ended 31st March, 2013.
Directors Remuneration
The non-executive directors are not paid any remuneration. The executive directors are paid remuneration under the applicable
provisions of the Companies Act, 1956 with approval of the shareholders in the General Meeting. Details of the remuneration
paid to the executive directors of the Company during the year ended 31st March, 2013 has been set out under Note No.
2.20(a) of the Notes annexed to the Financial Statements for the year ended 31st March, 2013.
Management’s Discussion And Analysis Report.
The Annual Report has a separate and detailed chapter on Management’s Discussion and Analysis which deals with Industry
structure and development, opportunities and threats, segment wise performance, outlook, risks and concerns of the
&RPSDQ\DQGGLVFXVVLRQVRQÀQDQFLDOVZLWKUHVSHFWWRRSHUDWLRQ
Means of Communication
Quarterly, Half-yearly, and Annual results of the Company are published in one English and one Marathi newspaper. These
are also submitted to the stock exchanges in accordance with the Listing Agreement and are available on the website of the
BSE (www.bseindia.com) & NSE (www.nseindia.com) and also on the Company’s website (www.marksanspharma.com).
The Company has not made any presentation to institutional investors or analysts.

14
 Marksans Pharma Limited

General Body Meetings

Annual General Date Time Venue No. of Special

Meetings Resolutions

Twentieth 27.09.2012 10:30 A.M. GMS Community Centre Hall Nil

Sitladevi Complex, 1st Floor
D.N. Nagar, Link Road
Andheri (W), Mumbai - 400053

Nineteenth 29.09.2011 10:30 A.M. GMS Community Centre Hall 1*

Sitladevi Complex, 1st Floor
D.N. Nagar, Link Road
Andheri (W), Mumbai - 400053

Eighteenth  10.30 A.M. GMS Community Centre Hall 1**

Sitladevi Complex, 1st Floor
D.N. Nagar, Link Road
Andheri (W), Mumbai - 400053

* One Special Resolution has been passed in the AGM held on 29th September, 2011 to create, issue and allot 1,75,00,000
Warrants on a preferential basis to Mr. Mark Saldanha and/or other Promoters and/or Promoters Group of the Company.
 2QH 6SHFLDO 5HVROXWLRQ KDV EHHQ SDVVHG LQ WKH $*0 KHOG RQ th September, 2010 regarding re-appointment of
Mr. Mark Saldanha as Managing Director of the Company.
Postal ballot
As of date, there is no proposal to pass any resolution by postal ballot.
General Shareholder Information

AGM : Twenty First Annual General Meeting.

Day & Date : Thursday, the 26th September, 2013.
Time : 10:30 AM
Venue : GMS Community Centre Hall, Sitladevi Complex, 1st Floor, D.N. Nagar, Link Road, Andheri
(W), Mumbai 400 053
Financial calendar : Financial Year - April to March
First Quarter Results – 2nd week of August
Second Quarter Results – 2nd week of November
Third Quarter Results – 2nd week of February
Last Quarter Results – 3rd / 4th week of May
Date of Book Closure : From Saturday, the 21st September, 2013 upto Thursday, the 26th September, 2013 (both
days inclusive).
Dividend payment date : Nil, as there is no proposal to declare dividend.
Listing on Stock Exchanges : The Bombay Stock Exchange Limited (BSE)
The National Stock Exchange of India Limited (NSE)
The annual listing fees for the year 2013-2014 have been paid.
Stock Code : BSE : 524404
NSE : MARKSANS
ISIN : INE750C01026

15
 AN N UA L R E P O RT 2012-2013

Market price data on BSE during the period April 2012 to March 2013

Month Open (`) High (`) Low (`) Close (`)

April 2012 1.63 1.74 1.50 1.56
May 2012 1.57 1.70 1.27 1.46
June 2012 1.43 1.60 1.30 1.40
July 2012 1.40 2.32 1.40 1.52
August 2012  1.66 1.44 1.47
September 2012 1.50 1.70 1.39 
October 2012 1.70 2.10 1.43 1.47
November 2012 1.50 2.50 1.45 2.50
December 2012 2.62  2.55 
January 2013 3.41 4.24 2.70 3.52
February 2013 3.63 4.32 3.21 
March 2013 3.70 4.30 3.70 3.90
Shareholding Pattern as on 31.03.2013

Category No. of % of No. of Shares % of

Shareholders Shareholders held Shareholding
Individual  97.79 341041397 
Bodies Corporate 673 1.55  7.21
NRIs 256 0.59  
FIIs 1 - 1110507 0.29
Non-Resident Bodies Corporate 2 - 11765101 3.05
Trust 1 - 20000 -
Bank, Financial Institution & Insurance 2 - 10000 -
Companies
Clearing Members 71 0.16  0.07
Total 43488 100 385307204 100
Promoters 2 0.01 196672960 51.04
Non-Promoters  99.99  
Total 43488 100 385307204 100
Distribution of Shareholding as on 31.03.2013

Shareholding No. of Shareholders % of Shareholders No. of Shares held % of Shareholding

Upto 5000    
5001 – 10000 2379 5.47 19036706 4.94
10001 – 20000  2.55  4.24
20001 – 30000 423 0.97 10751091 2.79
30001 – 40000  0.36 5627346 1.46
40001 – 50000 137 0.32 6399911 1.66
50001 – 100000 242 0.56  4.55
Above 100000 176 0.40 263451399 
Total 43488 100 385307204 100

16

Registrar and Transfer Agents
Dematerialization of the Based on SEBI directives, Company’s shares are traded in dematerialized form. As on
Shares and Liquidity
Outstanding GDR/ADR/
Warrants or any convertible
instruments, conversion dates
and likely impact on equity
Plant Locations
Address for Correspondence
Non Mandatory Requirements
(I) The Board
There is no policy in the Company for determining the tenure of independent directors.
(II) Shareholders Rights
 +DOI\HDUO\ÀQDQFLDOUHVXOWVLQFOXGLQJVXPPDU\RIWKHVLJQLÀFDQWHYHQWVDUHSUHVHQWO\QRWEHLQJVHQWWRWKHVKDUHKROGHUV
Marksans Pharma Limited
Bigshare Services Pvt. Ltd.
E-2, Ansa Industrial Estate, Saki Vihar Road, Andheri (East), Mumbai 400 072.
3K1R
)D[1R
E-mail: investor@bigshareonline.com;
Website: www.bigshareonline.com
Our RTA has launched Gen-Next Investor Interface Module “iBoss” the most advanced
tool to interact with investors. Shareholders are requested to login into “iBoss” and help
them to serve you better.
31.03.2013, 97.3% of the paid up share capital of the Company was in dematerialized form.
The Company has signed Settlement Agreement with few bond holders for settlement
RI86'%RQGVLQSULQFLSDOYDOXH8QGHUWKHVDLGDJUHHPHQWVWKHVHWWOHPHQW
amount is payable over a period of 12 months from the date of signing the agreement. The
current outstanding of the Bonds (including payables under the settlement agreement) is
USD 9006920 (` 490922173) as at 31 March, 2013.
- Formulation Plant:
/ 9HUQD,QGXVWULDO(VWDWH9HUQD*RD
- U.K. Plant:
Bell, Sons & Co (Druggists) Ltd.
Slaidburn Crescent, Southport, PR9 9AL
Mr. Harshavardhan Panigrahi
Company Secretary & Manager-Legal
Marksans Pharma Limited
11th Floor, Lotus Business Park, Off New Link Road, Andheri (W), Mumbai 400 053.
Tel. No. : 022- 40012000
Fax No. 022- 40012011
Email: companysecretary@marksanspharma.com
,,,$XGLW4XDOLÀFDWLRQV
 (YHU\HQGHDYRULVPDGHWRPDNHWKHÀQDQFLDOVWDWHPHQWVZLWKRXWTXDOLÀFDWLRQ
(IV) Training of Board Members
The members of the Board are eminently competent to discharge their duties.
(V) Mechanism for evaluating non-executive Board Members
There is no policy in the Company for evaluation of non-executive Directors.
(VI) Whistle Blower Policy
Presently there is no whistle blower policy in the Company.

17
 AN N UA L R E P O RT 2012-2013

BRIEF RESUME OF THE PERSON PROPOSED TO BE APPOINTED AS DIRECTOR OF THE COMPANY AT THE ANNUAL
GENERAL MEETING.

Name Mr. Seetharama Raju Buddharaju

Age 61 Years

4XDOLÀFDWLRQ B.Sc.; Diploma in Business Management; PG Diploma in Marketing & Sales

Management.

Experience He has more than 35 years of experience in Sales Management, Marketing &
General Administration. He has successfully handled various sales management
DVVLJQPHQWVLQ3DUNH'DYLVDQG3À]HUDWVHQLRUOHYHOVLQYDULRXVORFDWLRQVIRU
years. He has also worked as Sales Head for 3 divisions of Sarabhai Chemicals.

Name of the other Companies in which Nil

also holds directorship

Name of the other Company in Nil

the committee of which also holds
membership / chairmanship

No. of shares held in the Company Nil


 Marksans Pharma Limited

AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE

To,
The Members,
MARKSANS PHARMA LTD.
We have examined the compliance of conditions of Corporate Governance by MARKSANS PHARMA LTD. for the year ended
31st March, 2013 as stipulated in Clause 49 of the Listing Agreement of the said Company with Stock Exchanges in India.
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 conditions of Corporate
*RYHUQDQFH,WLVQHLWKHUDQDXGLWQRUDQH[SUHVVLRQRIRSLQLRQRQWKHÀQDQFLDOVWDWHPHQWVRIWKH&RPSDQ\
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 with the conditions of Corporate Governance as stipulated in the above-mentioned Listing Agreements.
We state that as per the records maintained by the Company, there were no investor grievances remaining unattended /
pending for a period exceeding one month.
:HIXUWKHUVWDWHWKDWVXFKFRPSOLDQFHLVQHLWKHUDQDVVXUDQFHDVWRWKHIXWXUHYLDELOLW\RIWKH&RPSDQ\QRUWKHHIÀFLHQF\RU
effectiveness with which the Management has conducted the affairs of the Company.

For N.K.MITTAL & ASSOCIATES

Chartered Accountants

N.K. MITTAL
Proprietor
0HPEHUVKLS1R
)1R:
Place: Mumbai
th
Date : 16 August, 2013

19
 AN N UA L R E P O RT 2012-2013

CEO/CFO CERTIFICATION
To,
The Board of Directors
Marksans Pharma Limited

This is to certify with reference to the Annual Accounts of the Company for the year ended 31st March, 2013 that:-

D :HKDYHUHYLHZHGÀQDQFLDOVWDWHPHQWVDQGWKHFDVKÁRZVWDWHPHQWIRUWKH\HDUHQGHGRQst March, 2013 and that to

the best of our knowledge and belief :

i. these statements do not contain any materially untrue statement or omit any material fact or contain statements that
might be misleading;

ii. these statements together present a true and fair view of the company’s affairs and are in compliance with existing
accounting standards, applicable laws and regulations.

b. There are, to the best of our knowledge and belief, no transactions entered into by the company during the year which
are fraudulent, illegal or violative of the company’s code of conduct.

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d. We have indicated to the Auditors and the Audit committee :

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iii. that there is no instances of any fraud.

For Marksans Pharma Limited

Mumbai Mark Saldanha Jitendra Sharma

27th0D\ 0DQDJLQJ'LUHFWRU &KLHI)LQDQFLDO2IÀFHU

DECLARATION ON COMPLIANCE OF THE COMPANY’S CODE OF CONDUCT

7KLV LV WR FRQÀUP WKDW GXULQJ WKH \HDU HQGHG st March, 2013, all the members of the Board and Senior Management
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Agreement with Stock Exchanges, in so far as it is applicable to them.

For Marksans Pharma Limited

Mumbai Mark Saldanha

Date: 27th May, 2013 Managing Director

20
 Marksans Pharma Limited

AUDITORS’ REPORT
To together with the notes thereon, give the information required
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accepted in India : -
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 AN N UA L R E P O RT 2012-2013

ANNEXURE
5HMARKSANS PHARMA LIMITED, 31st March, 2013
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account of disputes and the forum where the dispute is pending are as under:

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 AN N UA L R E P O RT 2012-2013

Balance Sheet as at March 31, 2013

3DUWLFXODUV 1RWH 31 March 2013 0DUFK
1R ` `
I. EQUITY AND LIABILITIES
1 Shareholders’ funds
(a) 6KDUHFDSLWDO  520,307,204 
(b) 5HVHUYHVDQGVXUSOXV  579,456,224 
(c) Money received against share warrants - 11,565,500
2 Share application money pending allotment - -
3 Non-current liabilities
(a) /RQJWHUPERUURZLQJV 5 78,768,473 
(b) 'HIHUUHGWD[OLDELOLWLHV1HW 6 22,212,778 
4 Current liabilities
(a) 6KRUWWHUPERUURZLQJV  753,123,045 
(b) 7UDGHSD\DEOHV  298,593,798 
(c) 2WKHUFXUUHQWOLDELOLWLHV 9 750,516,068 
(d) 6KRUWWHUPSURYLVLRQV 10 99,499,019 
TOTAL 3,102,476,609 

II. ASSETS
1 Non-current assets
(a) )L[HGDVVHWV 11
L 7DQJLEOHDVVHWV 502,911,664 
LL ,QWDQJLEOHDVVHWV 225,634,457 
(b) 1RQFXUUHQWLQYHVWPHQWV 12 676,163,898 
(c) /RQJWHUPORDQVDQGDGYDQFHV  12,021,619 
2 Current assets
(a) Inventories  513,175,755 
(b) 7UDGHUHFHLYDEOHV 15 914,188,422 
(c) &DVKDQGFDVKHTXLYDOHQWV 16 4,129,546 
(d) 6KRUWWHUPORDQVDQGDGYDQFHV  254,251,248 
(e) 2WKHUFXUUHQWDVVHWV0LVFHOODQHRXVH[SHQGLWXUH - -
TOTAL 3,102,476,609 

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For and on Behalf of For and on behalf of the Board of Directors

N. K. MITTAL & ASSOCIATES
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1 5HYHQXHIURPRSHUDWLRQV  1,922,970,129 
2 Other income 19 41,717,545 
3 Total Revenue (1 + 2) 1,964,687,674 
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&RVWRIPDWHULDOVFRQVXPHG 20 659,574,703 
3XUFKDVHVRI6WRFNLQ7UDGH 275,531,365 
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2WKHUH[SHQVHV 25 299,318,656 
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Total expenses 1,668,637,023 
5 3URÀW/RVVEHIRUHH[FHSWLRQDODQGH[WUDRUGLQDU\LWHPVDQGWD[ 296,050,651 
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2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.1 Accounting Standards
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26
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Contingent liabilities and commitments (to the extent not provided for) (`LQODFV

3DUWLFXODUV 2012-13 2011-12

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2.17 Foreign Exchange Transactions

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BUSINESS SEGMENTS
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6HJPHQW5HYHQXH 2012 – 2013 ²
(a) ([SRUWV 18,901.66 
(b) /RFDO 328.05 
Total 19,229.70 

2.20 Related Party Disclosures

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2012 – 2013 ²

0U0DUN6DOGDQKD 16.93 
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Total 42.31 

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2012 – 2013 ²

Subsidiary company
6DOHRI)LQLVKHGSURGXFWV 5,055.53 
3XUFKDVHRI5DZ0DWHULDO - 
Dividend received 251.04 -
Balances outstanding at the end of the year
5HFHLYDEOHIURPVXEVLGLDU\ 1,834.96 

29
 AN N UA L R E P O RT 2012-2013

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2.22 Accounting for Leases
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Earnings Per Share (EPS) ` `
1) 1HW SURÀW DV SHU WKH 6WDWHPHQW RI 3URÀW  /RVV DYDLODEOH IRU HTXLW\ 395,827,780 
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 AN N UA L R E P O RT 2012-2013

Note No. 3
Share Capital

Particulars 31 March 2013 0DUFK

Number ` 1XPEHU `
Authorised
(TXLW\6KDUHVRI`HDFK 550,000,000 550,000,000 550,000,000 550,000,000
5HGHHPDEOH&XPXODWLYH3UHIHUHQFH6KDUHVRI`HDFK 1,400,000 140,000,000  
551,400,000 690,000,000  690,000,000

Issued, Subscribed & Paid up

(TXLW\6KDUHVRI`HDFK 385,307,204 385,307,204  
5HGHHPDEOH&XPXODWLYH3UHIHUHQFH6KDUHVRI`HDFK 1,350,000 135,000,000  
Total 386,657,204 520,307,204  

a. Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

Particulars Equity Shares of ` 1 each 7% Redeemable

Cumulative preference
Shares of `HDFK
Number ` Number `
6KDUHVRXWVWDQGLQJDWWKHEHJLQQLQJRIWKH\HDU    
6KDUHV,VVXHGGXULQJWKH\HDU   - -
6KDUHVERXJKWEDFNGXULQJWKH\HDU - - - -
6KDUHVRXWVWDQGLQJDWWKHHQGRIWKH\HDU    
 7KH&RPSDQ\KDGLVVXHGRQWK'HFHPEHUFRQYHUWLEOHZDUUDQWVWR0U0DUN6DOGDQKDSURPRWHU
RIWKH&RPSDQ\RQSUHIHUHQWLDOEDVLV'XULQJWKH\HDU0U0DUN6DOGDQKDH[FHUFLVHGKLVULJKWRIFRQYHUVLRQ
RIWKHVDLGZDUUDQWVLQWRHTXLW\VKDUHV$FFRUGLQJO\WKH&RPSDQ\KDVRQLVVXHGDQGDOORWWHG
equity shares of `HDFKIDFHYDOXHWR0U0DUN6DOGDQKDLQFRQYHUVLRQRIWKHZDUUDQWV&RQVHTXHQWO\WKHFRPSDQ\·V
,VVXHG6XEVFULEHG DQG 3DLG8S (TXLW\ 6KDUH &DSLWDO KDV LQFUHDVHG IURP  HTXLW\ VKDUHV RI `  HDFK WR
HTXLW\VKDUHVRI`HDFKHIIHFWLYHIURP7KHVHHTXLW\VKDUHVZHUHLVVXHGDWDFDVKFRQVLGHUDWLRQ
of `SHUHTXLW\VKDUHGHWHUPLQHGLQDFFRUGDQFHZLWKDSSOLFDEOH6(%,JXLGHOLQHV
E 7HUPVULJKWVDWWDFKHGWR(TXLW\6KDUHV
 7KH &RPSDQ\ KDV RQO\ RQH FODVV RI (TXLW\ 6KDUHV KDYLQJ D SDU YDOXH RI `  SHU VKDUH $OO WKH (TXLW\ 6KDUHV UDQN
SDULSDVVXLQDOOUHVSHFW(DFKKROGHURI(TXLW\6KDUHVLVHQWLWOHGWRRQHYRWHSHUVKDUH7KHHTXLW\VKDUHKROGHUVDUH
HQWLWOHGWRGLYLGHQGLIGHFODUHGE\WKHVKDUHKROGHUVLQDQ$QQXDO*HQHUDO0HHWLQJLQSURSRUWLRQWRWKHQXPEHURI(TXLW\
6KDUHVKHOGE\WKHVKDUHKROGHUV,QWKHHYHQWRIOLTXLGDWLRQRIWKH&RPSDQ\WKHKROGHUVRI(TXLW\6KDUHVZLOOEHHQWLWOHG
WR UHFHLYH UHPDLQLQJ DVVHWV RI WKH &RPSDQ\ DIWHU GLVWULEXWLRQ RI DOO SUHIHUHQWLDO DPRXQWV 7KH GLVWULEXWLRQ ZLOO EH LQ
SURSRUWLRQWRWKHQXPEHURI(TXLW\6KDUHVKHOGE\WKHVKDUHKROGHUV
F 7HUPVULJKWVDWWDFKHGWR3UHIHUHQFH6KDUHV
 7KH &RPSDQ\ KDG LVVXHG   5HGHHPDEOH &XPXODWLYH 3UHIHUHQFH 6KDUHV RI `  HDFK IXOO\ SDLGXS WR
*OHQPDUN3KDUPDFHXWLFDOV/LPLWHGRQ0DUFK7KHVHSUHIHUHQFHVKDUHVKDYHEHHQUHGHHPHGRQ0DUFK
E\LVVXHRIQHZ5HGHHPDEOH&XPXODWLYH3UHIHUHQFH6KDUHVRI`HDFKIXOO\SDLGXSXQGHUWKHVDPH
WHUPVDQGFRQGLWLRQV7KHQHZSUHIHUHQFHVKDUHVZLOOEHGXHIRUUHGHPSWLRQRQ0DUFK7KHVHSUHIHUHQFHVKDUHV
FDUU\GLYLGHQGDWWKHUDWHRISHUDQQXPVXEMHFWWRDSSURYDORIWKHVKDUHKROGHUVDWDQ$QQXDO*HQHUDO0HHWLQJ7KH
KROGHURIWKHSUHIHUHQFHVKDUHVLVHQWLWOHGWRRQHYRWHSHUVKDUHRQO\RQUHVROXWLRQVSODFHGEHIRUHWKH&RPSDQ\ZKLFK
GLUHFWO\DIIHFWWKHULJKWVDWWDFKHGWRWKHSUHIHUHQFHVKDUHV,QWKHHYHQWRIOLTXLGDWLRQRIWKH&RPSDQ\EHIRUHUHGHPSWLRQ
RI WKH SUHIHUHQFH VKDUHV WKH KROGHU RI WKH SUHIHUHQFH VKDUHV ZLOO KDYH SULRULW\ RYHU HTXLW\ VKDUHV LQ WKH SD\PHQW RI
GLYLGHQGDQGUHSD\PHQWRIFDSLWDO


 Marksans Pharma Limited

d. The company has not issued bonus shares and shares for consideration other than cash nor the company has bought
EDFNDQ\VKDUHVGXULQJWKHSHULRGRIÀYH\HDUVLPPHGLDWHO\SUHFHGLQJWKHUHSRUWLQJGDWHH[FHSWWKHLVVXHRISUHIHUHQFH
VKDUHVDVVWDWHGLQ1RWH1RFDERYH
e. Details of shareholders holding more than 5% shares in the Company

Name of Shareholder 31 March 2013 0DUFK

No. of % of 1RRI RI
Shares held Holding 6KDUHVKHOG +ROGLQJ
(TXLW\6KDUHVRI` HDFKIXOO\SDLG
0U0DUN6DOGDQKD 196,672,780 51.04  
5HGHHPDEOH&XPXODWLYH3UHIHUHQFH6KDUHVRI
`HDFKIXOO\SDLG
*OHQPDUN3KDUPDFHXWLFDOV/LPLWHG 1,350,000 100  100

Note No.4
Reserves & Surplus

Particulars 31 March 2013 0DUFK

` `
a. Capital Reserves 122,500 122,500
122,500 122,500
b. Securities Premium Account
2SHQLQJ%DODQFH 435,588,795 
 6HFXULWLHVSUHPLXPFUHGLWHGRQ6KDUHLVVXH 27,300,000 -
 &ORVLQJ%DODQFH 462,888,795 
c. General Reserve
 2SHQLQJ%DODQFH 507,110,591 
 &XUUHQW<HDU7UDQVIHU 2,551,486,609 
 :ULWWHQ%DFNLQ&XUUHQW<HDU - -
 &ORVLQJ%DODQFH 3,058,597,200 
d. Surplus
 2SHQLQJEDODQFH (3,337,980,051) 
 1HW3URÀW1HW/RVV)RUWKHFXUUHQW\HDU 395,827,780 
 &ORVLQJ%DODQFH (2,942,152,271) 
Total 579,456,224 

Note No.5
Long Term Borrowings
Secured
a. Term loans
 IURPEDQNV 78,400,000 
b. Vehicle Loan 368,473 
Total 78,768,473 

Note No.5.1
7KHWHUPORDQLVVHFXUHGE\DFKDUJHRQWKHSODQWVDQGPDFKLQHULHVRI*RDSODQWV7KHUHDUHQRRYHUGXHVUHSD\PHQWRIWKH
WHUPORDQ0DWXULW\SURÀOHRI7HUP/RDQDUHDVVHWRXWEHORZ
2 years \HDUV \HDUV %H\RQG\HDUV
7HUP/RDQIURP%DQN`)    


 AN N UA L R E P O RT 2012-2013

Particulars 31 March 2013 0DUFK

` `
Note No.6
Deferred tax liabilities (Net)
Deferred Tax Liabilities : DTL
7DQJLEOHDVVHWV%) 125,868,907 
$PRUWL]DEOHJRRGZLOO - -
Total 125,868,907 
Deferred Tax Assets : DTA
,QWDQJLEOH,PSDLUPHQWRIDVVHWV 103,656,129 -
Total 103,656,129 -
1HW'7$'7/ 22,212,778 
7KH1HW'7$'7/KDVWKHIROORZLQJEUHDNGRZQ
'HIHUUHG7D[/LDELOLWLHV'7/ 125,868,907 
'HIHUUHG7D[$VVHWV'7$ 103,656,129 -
1HW'7$'7/ 22,212,778 

Note No.7
Short Term Borrowings
Secured
:RUNLQJ&DSLWDOIDFLOLWLHVIURP%DQN 753,123,045 
Total 753,123,045 

Note No.7.1
:RUNLQJFDSLWDOIDFLOLWLHVDUHVHFXUHGE\+\SRWKHFDWLRQRIVWRFNRIUDZPDWHULDOSDFNLQJPDWHULDOÀQLVKHGJRRGVZRUNLQ
SURJUHVVUHFHLYDEOHVDQGHTXLWDEOHPRUWJDJHRQÀ[HGDVVHWVRIPDQXIDFWXULQJIDFLOLW\RI*RDSODQWVSUHVHQWDQGIXWXUH

Note No.8
Trade Payable
D7RWDORXWVWDQGLQJGXHVWR0LFURDQG6PDOOHQWHUSULVHV - -
E7RWDORXWVWDQGLQJGXHVWRRWKHUWKDQ0LFURDQG6PDOOHQWHUSULVHV 298,593,798 
Total 298,593,798 

* Refer Note no.2.24 on outstanding dues from Micro and Small enterprises.
7UDGH3D\DEOH,QFOXGHVJHQHUDODQGPLVFHOODQHRXVFUHGLWRUV


 Marksans Pharma Limited

Particulars 31 March 2013 0DUFK

` `
Note No.9
Other Current Liabilities
D &XUUHQWPDWXULWLHVRI7HUP/RDQ 74,508,638 
E &XUUHQWPDWXULWLHVRI9HKLFOH/RDQ 192,444 
F )RUHLJQ&XUUHQF\&RQYHUWLEOH%RQGV 675,804,986 
G 'HSRVLWV 10,000 -
Total 750,516,068 

Note No.9.1 Foreign Currency Convertible Bonds

7KH)RUHLJQ&XUUHQF\&RQYHUWLEOH%RQGVKDGEHFRPHGXHIRUUHGHPSWLRQRQWK1RYHPEHUDQGZHUHQRWUHGHHPHG
7KHVH %RQGV KDYH UHGHPSWLRQ SUHPLXP RI  RI WKH SULQFLSDO YDOXH )XUWKHU GXH WR WKH UHGHPSWLRQ GHIDXOW WKH
UHGHPSWLRQDPRXQWDWWUDFWVGHIDXOWLQWHUHVWDWSDIURPWKHGXHGDWHRIUHGHPSWLRQ
$VUHSRUWHGHDUOLHUWKHFRPSDQ\KDGEHHQLQFRQVWUXFWLYHGLDORJXHZLWKWKH%RQGKROGHUVIRUDSRVVLEOHVHWWOHPHQWSURSRVDO
7KHFRPSDQ\KDVVLJQHGIXOODQGÀQDOVHWWOHPHQWDJUHHPHQWZLWKIHZ%RQGKROGHUVZKRKROGVXEVWDQWLDODPRXQWRI%RQGV
IRUVHWWOLQJWKHLURXWVWDQGLQJRYHUDSHULRGRIPRQWKVVWDUWLQJIURP)HEUXDU\7KHFXUUHQWRXWVWDQGLQJ,QFOXGLQJ
SD\DEOHVXQGHUVHWWOHPHQWDJUHHPHQWLV86'`DVDW

Note No.10
Short Term Provisions
a. Provision for Gratuity and compensated absences
 *UDWXLW\ 5,195,550 
 &RPSHQVDWHGDEVHQFHV 18,961,453 
b. Others 75,342,016 -
Total 99,499,019 



Note No.11

Fixed Assets Gross Block Accumulated Depreciation Net Block

%DODQFHDVDW $GGLWLRQV 'LVSRVDOV Impairments Balance as %DODQFHDVDW Depreciation 2QGLVSRVDOV Balance as Balance as %DODQFHDVDW
$SULO at 31 March $SULO charge for the at 31 March at 31 March 0DUFK
2013 year 2013 2013

` ` ` ` ` ` ` ` ` ` `
a Tangible Assets

 /DQG  - - - 9,665,840 - - - - 9,665,840 

 %XLOGLQJV  - - - 177,060,451   - 57,542,795 119,517,656 

 3ODQWDQG(TXLSPHQW   - - 528,725,819   - 166,223,961 362,501,858 

AN N UA L R E P O RT

 )XUQLWXUHDQG)L[WXUHV   - - 8,105,852   - 3,506,864 4,598,988 

 9HKLFOHV  -  - 8,016,649    5,124,130 2,892,519 

 2IÀFHHTXLSPHQW   0 0 4,227,357   - 2,353,012 1,874,345 

 &RPSXWHUDQG6RIWZDUH   0 0 26,638,386   - 24,777,928 1,860,458 

Total    - 762,440,354    259,528,690 502,911,664 

b Intangible Assets
2012-2013

 ,QWHUQDOO\ *HQHUDWHG $1'$  - - - 513,786,882   - 288,152,425 225,634,457 
0DUNHW$XWKRULVDWLRQV3URGXFW
/LFHQFHV 2WKHUV

Total  - - - 513,786,882   - 288,152,425 225,634,457 

Total (a+b)    - 1,276,227,236    547,681,115 728,546,121 

 3UHYLRXV\HDUÀJXUH 2,131,193,970 47,266,032 3,076,265 947,726,840 1,227,656,897 282,188,642 179,812,395 912,548 461,088,489 766,568,408 1,849,005,328

Note No.11.1
/DQGKHOGRQOHDVHKROGEDVLV%XLOGLQJLQFOXGHVWKRVHFRQVWUXFWHGRQOHDVHKROGODQG
7KHFRPSDQ\KDVLQWHUQDOO\JHQHUDWHGLQWDQJLEOHDVVHWVLQWKHQDWXUHRI$1'$0DUNHW$XWKRULVDWLRQ6LWH9DULDWLRQ/LFHQVHVIRU&5$067KHH[SHQVHVLQFXUUHG
RQGHYHORSPHQWRISURFHVVSURGXFWDQGFRPSOLDQFHZLWKUHJXODWRU\SURFHGXUHVRI86)'$DQGRWKHUJOREDOKHDOWKDXWKRULWLHVLQÀOLQJRI$EEUHYLDWHG1HZ
'UXJ$SSOLFDWLRQ$1'$0DUNHW$XWKRULVDWLRQ6LWH9DULDWLRQ/LFHQVHVIRU&5$06DQG0+5$SURFHGXUHIRU0DUNHW$XWKRULVDWLRQ6LWH9DULDWLRQ/LFHQVHVDUH
FDSLWDOLVHGDQGLGHQWLÀHGDVLQWDQJLEOHDVVHWVLQDFFRUGDQFHZLWK$6,QWDQJLEOH$VVHWV6RPHRIWKHVHLQWDQJLEOHDVVHWVDUHRXWOLFHQVHGWRRYHUVHDV
SDUWLHVJLYLQJWKHPH[FOXVLYHVHPLH[FOXVLYHULJKWVWRPDUNHWWKHFRPSDQ\·VSURGXFWVLQWKHLQWHUQDWLRQDOPDUNHWV
 Marksans Pharma Limited

Particulars 31 March 2013 0DUFK

` `
Note No.12
Non-current investments
Trade Investments
,QYHVWPHQWLQVXEVLGLDULHV8QTXRWHG 676,163,898 
Total 676,163,898 

Note No.12.1
7KH&RPSDQ\LQWKH\HDUDFTXLUHGWZR8.EDVHGFRPSDQLHV%HOO6RQVDQG&R'UXJJLVWV/LPLWHGDQG5HORQFKHP
/LPLWHGWKURXJKLWVVXEVLGLDU\0DUNVDQV3KDUPD8./LPLWHG
+RZHYHUGXHWRORVVHVLQFXUUHGE\5HORQFKHP/LPLWHGDQGXQGHUSHUIRUPDQFHRI%HOO6RQVDQG&R'UXJJLVWV/LPLWHGLQ
WKH\HDUHQGHGWKH0DQDJHPHQWFDUULHGRXWDQDQDO\VLVRIWKHYDOXHRILQYHVWPHQWLQVXEVLGLDULHV7KHDQDO\VLV
ZDVEDVHGRQÀQDQFLDOSURMHFWLRQVDQGPDUNHWYDOXDWLRQRIWKHSHHUFRPSDQLHVRSHUDWLQJLQWKHVLPLODUDUHDRIRSHUDWLRQ
7KLVDQDO\VLVLQGLFDWHGDGLPLQXWLRQLQWKHUHDOLVDEOHYDOXHRILQYHVWPHQWLQWKHVXEVLGLDULHV$FFRUGLQJO\WKHFDUU\LQJYDOXH
RIWKHLQYHVWPHQWLQVXEVLGLDULHVZDVUHGXFHGLQWKH%DODQFH6KHHWDVRQ0DUFKDQGWKHDPRXQWRIWKHGLPLQXWLRQ
of `/DFVFKDUJHGWRWKH6WDWHPHQWRI3URÀWDQG/RVVIRUWKH\HDUHQGHG0DUFKLQDFFRUGDQFHZLWK$6
$FFRXQWLQJIRU,QYHVWPHQWV
+RZHYHU GXULQJ WKH SHULRG XQGHU UHYLHZ WKH DIRUHVDLG WZR VXEVLGLDULHV KDYH VKRZQ LPSURYHPHQW LQ SHUIRUPDQFHV 7KH
PDQDJHPHQW IRUHVHH IXUWKHU LPSURYHPHQW LQ ERWK WKH VXEVLGLDU\·V SHUIRUPDQFH LQ WKH \HDUV WR FRPH 7KHUHIRUH WKH
PDQDJHPHQW KDV UHYLVLWHG WKH LQYHVWPHQW YDOXDWLRQ DW `  DV RQ  $FFRUGLQJO\ WKH &RPSDQ\ KDV
ZULWWHQEDFNWKHDPRXQWRIGLPLQXWLRQLQWKHYDOXHRILQYHVWPHQWRI`/DFVGLUHFWO\LQ%DODQFH6KHHWIRUWKH\HDUHQGHG


Note No.12.2
Investement in Equity Instruments

1DPHRIWKH%RG\&RUSRUDWH 1RYD3KDUPDFHXWLFDOV$XVWUDODVLD ,QYHVWPHQWLQ0DUNVDQV3KDUPD

3W\/WG 8./7'
6XEVLGLDU\  $VVRFLDWH  -9 &RQWUROOHG 6XEVLGLDU\ 6XEVLGLDU\
(QWLW\2WKHUV
31 March 2013 0DUFK 31 March 2013 0DUFK
1RRI6KDUHV 90 90 1000 1000
4XRWHG8QTXRWHG Unquoted 8QTXRWHG Unquoted 8QTXRWHG
3DUWO\3DLG)XOO\SDLG Fully Paid )XOO\3DLG Fully Paid )XOO\3DLG
([WHQWRI+ROGLQJ 60%  100% 
$PRXQW`) 15,905,003  660,258,895 
:KHWKHUVWDWHGDW&RVW <HV1R Yes <HV Yes 12
,I$QVZHUWR&ROXPQDERYHLV¶1R·%DVLV N.A. 1$ N.A. Diminution as per
RI9DOXDWLRQ $6

Particulars 31 March 2013 0DUFK

` `
Note No.13
Long Term Loans and Advances
8QVHFXUHGFRQVLGHUHGJRRG 12,021,619 
Total 12,021,619 


 AN N UA L R E P O RT 2012-2013

Particulars 31 March 2013 0DUFK

` `
Note No.14
Inventories
D 5DZ0DWHULDOVDQG3DFNLQJ0DWHULDOV 409,284,390 
E :RUNLQSURJUHVV 57,456,042 
F )LQLVKHGJRRGV 40,249,140 
G 6WRFNLQWUDGH 6,186,183 
Total 513,175,755 

Note No.15
Trade Receivables
7UDGHUHFHLYDEOHVRXWVWDQGLQJIRUDSHULRGOHVVWKDQVL[PRQWKVIURPWKHGDWHWKH\
are due for payment
8QVHFXUHGFRQVLGHUHGJRRG 914,188,422 
Total 914,188,422 

Note No.16
Cash and cash equivalents
D %DODQFHVZLWKEDQNV 3,783,384 
E &DVKRQKDQG 293,348 
F %DQNGHSRVLWVZLWK/HVVWKDQPRQWKVPDWXULW\ 18,575 
G 0DUJLQ0RQH\ 34,239 
Total 4,129,546 

Note No.17
Short-term loans and advances
a. Advance recoverable in cash or kind
 8QVHFXUHGFRQVLGHUHGJRRG 254,251,248 
Total 254,251,248 


 Marksans Pharma Limited

Particulars 2012-13 2011-12

` `
Note No.18
Revenue from operations
6DOHRISURGXFWV 1,910,252,630 
Other operating revenues 12,717,499 
/HVV([FLVHGXW\ - -
Total 1,922,970,129 

Note No.19
Other income
Interest Income 7,736,037 
,QVXUDQFH&ODLPUHFHLYHG 8,877,329 
Dividend Income 25,104,179 -
Total 41,717,545 

Note No.20
Cost of materials and components consumed
Inventory at the beginning of the year 206,647,868 
$GG3XUFKDVHV 862,211,225 
/HVV,QYHQWRU\DWWKHHQGRIWKH<HDU (409,284,390) 
Cost of material and components consumed 659,574,703 

Note No.21
&KDQJHVLQLQYHQWRULHVRIÀQLVKHGJRRGVZRUNLQSURJUHVVDQG6WRFNLQ7UDGH
Inventory at the beginning of the year 195,822,388 
,QYHQWRU\DWWKHHQGRIWKH<HDU (103,891,365) 
&KDQJHVLQLQYHQWRULHVRIÀQLVKHGJRRGVZRUNLQSURJUHVVDQG6WRFNLQ7UDGH 91,931,023 

Note No.22
(PSOR\HH%HQHÀWV([SHQVH
D 6DODULHVDQGLQFHQWLYHV 140,367,147 
E &RQWULEXWLRQVWR3URYLGHQGIXQG(6,&DQGRWKHUIXQG 5,270,790 5,155,962
F 6WDIIZHOIDUHH[SHQVHV 8,287,010 
Total 153,924,947 

Note No.23
Finance Costs
,QWHUHVWH[SHQVH 74,035,635 
Others 27,288,005 
$SSOLFDEOHQHWORVVRQIRUHLJQ([FKDQJH - 
Total 101,323,640 

Note No.24
Depreciation and amortization expense
'HSUHFLDWLRQRQWDQJLEOHDVVHWV 35,654,001 
$PRULWL]DWLRQRILQWDQJLEOHDVVHWV 51,378,688 
Total 87,032,689 


 AN N UA L R E P O RT 2012-2013

Particulars 2012-13 2011-12

` `
Note No.25
Other Expenses
:DWHU&KDUJHV 3,120,075 
3RZHU )XHO 42,617,615 
)UHLJKW,QZDUG 5DZ0DWHULDO&OHDULQJ&KDUJHV 15,713,052 
5HSDLUV 0DLQWHQDQFH 20,253,740 
2WKHU0DQXIDFWXULQJ([SHQVHV 22,544,538 
5HQW 18,011,041 
5DWHV 7D[HV 1,216,126 
7UDYHOOLQJ([SHQVHV 12,590,081 
&RPPXQLFDWLRQ([SHQVHV 2,482,047 
&RXULHU 3RVWDJH([SHQVHV 1,766,494 
3ULQWLQJ 6WDWLRQHU\ 4,065,079 
$XGLW)HHV 337,000 
9HKLFOH([SHQVHV /RFDO&RQYH\DQFH 2,507,159 
/HJDO 3URIHVVLRQDO)HHV 28,216,199 
2IÀFH([SHQVHV 12,801 
,QVXUDQFH&KDUJHV 6,980,544 
Diminution of Investment - 
,PSDLUPHQWRI$VVHWV - 
([FKDQJH/RVV*DLQ (34,381,981) 
/RVVRQVDOHRI)L[HG$VVHWV 126,884 
2WKHU2SHUDWLQJ([SHQVHV 42,730,309 
)UHLJKW2XWZDUG ([SRUW&OJ([SV 59,969,342 
6HOOLQJ 'LVWULEXWLRQ([SHQVHV 48,440,511 
Total 299,318,656 

Note No.25.1
'HWDLOVRI3D\PHQWVWRWKH$XGLWRU
D $V$XGLWRU 337,000 
Total 337,000 

For and on Behalf of For and on behalf of the Board of Directors

N. K. MITTAL & ASSOCIATES
&KDUWHUHG$FFRXQWDQW
MARK SALDANHA DR. BALWANT S. DESAI
&KDLUPDQDQG0DQDJLQJ'LUHFWRU :KROH7LPH'LUHFWRU
N.K.MITTAL
3URSULHWRU
0HPEHUVKLS1R HARSHAVARDHAN PANIGRAHI
)1R: &RPSDQ\6HFUHWDU\ /HJDO0DQDJHU
3ODFH0XPEDL
'DWHth0D\


 Marksans Pharma Limited

Statement of Cash Flow for the year ended as on March 31, 2013
$PRXQWLQ`)
Particulars For the period ended as on
31.03.2013 31.03.2012
A. Cash Flow From Operating Activities
3URÀW/RVV%HIRUH7D[ 296,050,651 
$GMXVWPHQWVWRUHFRQFLOHSURÀWEHIRUHWD[DQGSULRUSHULRG
items to cash provided by operations:
-Depreciation 87,032,689 
-Impairment of assets - 
 3UHOLPLQDU\ 'HIHUUHG5HYHQXH([SHQVHV:ULWWHQRII - 
 /RVVRQVDOHRI%XVLQHVV)L[HG$VVHWV 126,884 
 ,QWHUHVW([SHQVH 74,035,635 
 ,QWHUHVW5HFHLSW (7,736,037) 
2SHUDWLQJ3URÀWEHIRUHZRUNLQJFDSLWDOFKDQJHV 449,509,822 
Movements in working capital :
,QFUHDVH'HFUHDVHLQ,QYHQWRULHV (110,705,499) 
,QFUHDVH'HFUHDVHLQ7UDGHDQGRWKHUUHFHLYDEOHV (172,294,249) 
,QFUHDVH'HFUHDVHLQORDQVDQGDGYDQFHV (161,911,360) 
,QFUHDVH'HFUHDVHLQ7UDGH3D\DEOHDQGVKRUWWHUPSURYLVLRQV 85,082,545 
,QFRPH7D[3DLG (3,879,000) 
Net cash used in operating activities 85,802,259 
B. Cash Flow provided by (used in) Investing Activities:
3XUFKDVH6DOHRI%XVLQHVV)L[HG$VVHWV (49,137,286) 
Investment (441,017,576) 
,QWHUHVW5HFHLSW 7,736,037 
Net Cash Flow provided by (used in) Investing Activities (482,418,825) 
C. Cash Flow provided by (used in) Financing Activities:
,QFUHDVHLQ(TXLW\6KDUH&DSLWDO 17,500,000 -
,QFUHDVHLQ6KDUH3UHPLXP 27,300,000 -
,QFUHDVHLQ*HQHUDO5HVHUYH 2,551,486,609 
Money received against share warrants (11,565,500) 11,565,500
3URFHHGV5HSD\PHQWRI6KRUW7HUPDQG/RQJ7HUP%RUURZLQJV:ULWHEDFN (2,285,789,095) 
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Net Cash Flow provided by (used in) Financing Activities 224,896,379 
1HW,QFUHDVH'HFUHDVHLQ&DVKDQG%DQN%DODQFHV (171,720,187) 

Cash & Bank Balances as at 31.03.2012 175,849,733 

Cash & Bank Balances as at 31.03.2013 4,129,546 
(171,720,187) 

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For and on Behalf of For and on behalf of the Board of Directors

N. K. MITTAL & ASSOCIATES
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 AN N UA L R E P O RT 2012-2013

Statement Pursuant to Section 212 of the Companies Act,1956 Relating

to Holding Company’s Interest in the Subsidiary Companies
Nova Pharmaceuticals Marksans Pharma (UK)
Australasia Pty Ltd Limited (Consolidated)
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For and on behalf of the Board of Directors

Mark Saldanha Dr. Balwant S. Desai Harshavardhan Panigrahi

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 Marksans Pharma Limited

AUDITORS’ REPORT
Auditor’s report to the Board of Directors of MARKSANS PHARMA LIMITED

1) We have audited the attached Consolidated Balance Sheet of MARKSANS PHARMA LIMITED (the company) and its
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based on our audit.

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ZHSODQDQGSHUIRUPWKHDXGLWWRREWDLQUHDVRQDEOHDVVXUDQFHDERXWZKHWKHUWKHÀQDQFLDOVWDWHPHQWVDUHIUHHRIPDWHULDO
misstatement. An audit includes, examining on a test basis, evidence supporting the amounts and disclosures in the
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reasonable basis for our opinion.

3) We report that:

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opinion, insofar as it relates to the amounts included in respect of these subsidiaries, is based solely on the report
of other auditors.

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31st March, 2013,

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for the year ended 31st March, 2013, and

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)25N.K.MITTAL & ASSOCIATES

Chartered Accountants

N. K. MITTAL
(Proprietor)
012
)12:
Place : Mumbai
Date : 27th May, 2013

43
 AN N UA L R E P O RT 2012-2013

Consolidated Balance Sheet as at March 31, 2013

Particulars Note 31 March 2013 31 March 2012
No. ` `
I. EQUITY AND LIABILITIES
1 Shareholders’ funds
(a) Share capital 3 520,307,204 
(b) Reserves and surplus 4 344,480,283 
(c) 0RQH\UHFHLYHGDJDLQVWVKDUHZDUUDQWV - 11,565,500
2 Share application money pending allotment - 
Minority Interest 69,899,770 56,161,232
3 Non-current liabilities
(a) /RQJWHUPERUURZLQJV 5 78,768,473 152,013,622
(b) Deferred tax liabilities (Net) 6 26,164,432 
4 Current liabilities
(a) 6KRUWWHUPERUURZLQJV 7 1,137,870,477 
(b) Trade payables  560,615,599 
(c) 2WKHUFXUUHQWOLDELOLWLHV  1,087,343,666 
(d) 6KRUWWHUPSURYLVLRQV 10 186,996,108 
TOTAL 4,012,446,012 
II. ASSETS
1 Non-current assets
(a) )L[HGDVVHWV 11
(i)Tangible assets 741,250,588 
LL,QWDQJLEOHDVVHWV 819,912,669 

(b) 1RQFXUUHQWLQYHVWPHQWV - 

(c) /RQJWHUPORDQVDQGDGYDQFHV 12 12,021,619 
2 Current assets
(a) ,QYHQWRULHV 13 776,918,989 
(b) Trade receivables 14 1,313,142,667 
(c) &DVKDQGFDVKHTXLYDOHQWV 15 158,799,569 
(d) 6KRUWWHUPORDQVDQGDGYDQFHV 16 190,399,911 71,135,157
(e) 2WKHUFXUUHQWDVVHWV0LVFHOODQHRXVH[SHQGLWXUH - 
TOTAL 4,012,446,012 
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For and on Behalf of For and on behalf of the Board of Directors
N. K. MITTAL & ASSOCIATES
Chartered Accountant
MARK SALDANHA DR. BALWANT S. DESAI
Chairman and Managing Director :KROH7LPH'LUHFWRU
N.K.MITTAL
Proprietor
0HPEHUVKLS1R HARSHAVARDHAN PANIGRAHI
)1R: &RPSDQ\6HFUHWDU\ /HJDO0DQDJHU
Place : Mumbai
Date : 27th May, 2013

44
 Marksans Pharma Limited

&RQVROLGDWHG6WDWHPHQWRI3URÀW /RVVIRUWKH\HDUHQGHGDVRQ0DUFK
Particulars Note 2012-13 
No. ` `
1 Revenue from operations 17 4,384,223,541 
2 2WKHULQFRPH  43,954,398 
3 Total Revenue (1+2) 4,428,177,939 3,576,003,774
4 Expenses:
Cost of materials consumed  1,359,288,096 
3XUFKDVHVRI6WRFNLQ7UDGH 1,047,815,387 
&KDQJHVLQLQYHQWRULHVRIÀQLVKHGJRRGVZRUNLQSURJUHVVDQG 20 121,542,505 117,715,604
6WRFNLQ7UDGH
(PSOR\HHEHQHÀWVH[SHQVH 21 559,125,071 
)LQDQFHFRVWV 22 145,964,494 
Depreciation and amortization expense 23 156,498,769 
2WKHUH[SHQVHV 24 602,470,896 
0LVFHOODQHRXV([SHQGLWXUH:ULWWHQ2II - 
Total expenses 3,992,705,218 
5 3URÀW/RVVEHIRUHH[FHSWLRQDODQGH[WUDRUGLQDU\LWHPVDQGWD[ 435,472,721 
6 Exceptional items - 
7 3URÀW/RVVEHIRUHH[WUDRUGLQDU\LWHPVDQGWD[ 435,472,721 
 ([WUDRUGLQDU\,WHPV - 
9 3URÀW/RVVEHIRUHWD[ 435,472,721 
10 Tax expense:
(1) Current Year 51,739,725 
(2) Earlier year (72,766) 4,700,413
(3) Deferred tax (104,456,199) 
Total Tax Expenses (52,789,240) 
11 3URÀW/RVVIRUWKHSHULRGIURPFRQWLQXLQJRSHUDWLRQV 488,261,961 
12 3URÀW/RVVIURPGLVFRQWLQXLQJRSHUDWLRQV - 
13 Tax expense of discontinuing operations - 
14 3URÀW/RVVIURP'LVFRQWLQXLQJRSHUDWLRQVDIWHUWD[ - 
15 3URÀW/RVVIRUWKHSHULRGEHIRUHDGMXVWPHQWIRU0LQRULW\ 488,261,961 
interest (11+14)
16 Less: Minority Interest 29,419,239 
17 3URÀW/RVVIRUWKHSHULRGDIWHUDGMXVWPHQWIRU0LQRULW\ 458,842,722 
interest(15-16)
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(1) Basic 1.19 
(2) Diluted 1.19 (4.64)
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For and on Behalf of For and on behalf of the Board of Directors
N. K. MITTAL & ASSOCIATES
Chartered Accountant
MARK SALDANHA DR. BALWANT S. DESAI
Chairman and Managing Director :KROH7LPH'LUHFWRU
N.K.MITTAL
Proprietor
0HPEHUVKLS1R HARSHAVARDHAN PANIGRAHI
)1R: &RPSDQ\6HFUHWDU\ /HJDO0DQDJHU
Place : Mumbai
Date : 27th May, 2013

45
 AN N UA L R E P O RT 2012-2013

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FORMING

PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2013
1 PRINCIPLE OF CONSOLIDATION
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Name of Subsidiary Country of Percentage of

Incorporation Ownership
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prevailing during the year and the resulting net transaction adjustment has been adjusted to reserve.
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1.1 As per the audited Balance Sheet as at 31 March, 2011, the Company’s Net Worth had been completely eroded.
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2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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2.4 Depreciation
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2.5 Impairment of Assets
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charged against revenue of the year.
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2.12 Investments
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 AN N UA L R E P O RT 2012-2013

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 /LDELOLW\IRU*UDWXLW\LVDFFRXQWHGRQDFFUXDOEDVLV
2.14 Revenue Recognition
The company recognizes sale of goods on the invoice date. Sales comprise of amounts invoiced for goods sold,
LQFOXGLQJH[FLVHGXW\ZKHUHYHUDSSOLFDEOHEXWQHWRIUHWXUQVDQGWUDGHGLVFRXQWV
 'LYLGHQG,QFRPHLVDFFRXQWHGRQUHFHLSWRIWKHVDPH
 &5$06PLOHVWRQHUHYHQXHVDUHUHFRJQLVHGRQVLJQLQJRI$JUHHPHQWZLWKUHVSHFWLYHSDUWLHV
2.15 Income Tax
Current Year:
 3URYLVLRQ IRU FXUUHQW WD[ KDV EHHQ PDGH LQ DFFRUGDQFH ZLWK WKH ,QFRPH 7D[ /DZV SUHYDLOLQJ IRU WKH UHOHYDQW
assessment years.
Deferred Tax:
 'HIHUUHGWD[DVVHWVDQGOLDELOLWLHVDUHUHFRJQL]HGIRUWKHIXWXUHWD[FRQVHTXHQFHVDWWULEXWDEOHWRWLPLQJGLIIHUHQFH
WKDWUHVXOWEHWZHHQWKHSURÀWRIIHUHGIRULQFRPHWD[HVDQGSURÀWDVSHUWKHÀQDQFLDOVWDWHPHQWVRIWKH&RPSDQ\
'HIHUUHG WD[ DVVHWV DQG OLDELOLWLHV DUH PHDVXUHG XVLQJ WKH WD[ UDWHV DQG WD[ ODZ WKDW KDYH EHHQ HQDFWHG RU
substantively enacted by the balance sheet date. The effect on deferred assets and liabilities of a change in tax
UDWHVLVUHFRJQL]HGLQWKHSHULRGWKDWLQFOXGHVWKHHQDFWPHQWVXEVWDQWLYHHQDFWPHQWGDWH'HIHUUHGWD[DVVHWVRQ
WLPLQJGLIIHUHQFHDUHUHFRJQL]HGRQO\LIWKHUHLVDUHDVRQDEOHFHUWDLQW\WKDWVXIÀFLHQWIXWXUHWD[DEOHLQFRPHZLOO
EHDYDLODEOHDJDLQVWZKLFKVXFKGHIHUUHGWD[DVVHWVFDQEHUHDOL]HG+RZHYHUGHIHUUHGWD[DVVHWVRQWKHWLPLQJ
GLIIHUHQFHZKHQXQDEVRUEHGGHSUHFLDWLRQDQGORVVHVFDUULHGIRUZDUGH[LVWDUHUHFRJQL]HGRQO\WRWKHH[WHQW
WKDWWKHUHLVYLUWXDOFHUWDLQW\WKDWVXIÀFLHQWIXWXUHWD[DEOHLQFRPHZLOOEHDYDLODEOHDJDLQVWZKLFKVXFKGHIHUUHG
tax assets can be realized. Deferred tax assets are reassessed for the appropriateness of their respective carrying
amounts at each balance sheet date. The Company offsets , on a year on year basis, the current and noncurrent
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liabilities on a net basis.
2.16 PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS
Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if
a. the Company has a present obligation as a result of past event,
 E DSUREDEOHRXWÁRZRIUHVRXUFHVLVH[SHFWHGWRVHWWOHWKHREOLJDWLRQDQG
c. the amount of the obligation can be reliably estimated.
Contingent liability is not recognized but disclosed in the Notes to the Accounts. The Contingent Assets are
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Balance Sheet date.
Contingent liabilities and commitments (to the extent not provided for) (` in lacs)
Particulars 2012-13 2011-12
` `
Contingent Liabilities
D&ODLPVDJDLQVWWKHFRPSDQ\QRWDFNQRZOHGJHGDVGHEW  
E*XDUDQWHHVDQG/HWWHURI&UHGLW  
F2WKHUPRQH\IRUZKLFKWKHFRPSDQ\LVFRQWLQJHQWO\OLDEOH
Sales Tax
6DOHV7D[%67&67² 20.21 20.21
6DOHV7D[%67&67²  
6DOHV7D[&67²  3.23
G)RUHLJQ&XUUHQF\&RQYHUWLEOH%RQGV  
 15,152.65

L 7KH&RPSDQ\KDVVLJQHG6HWWOHPHQW$JUHHPHQWZLWKIHZERQGKROGHUVIRUVHWWOHPHQWRISULQFLSDOYDOXHRI
86'ZRUWKRI%RQGV8QGHUWKH6HWWOHPHQW$JUHHPHQWWKHVHWWOHPHQWDPRXQWLVSD\DEOHRYHU
a period of 12 months from the date of signing the respective agreements.


 Marksans Pharma Limited

 $FFRUGLQJO\ WKH &RPSDQ\ KDV ZULWWHQ EDFN WKH HQWLUH DPRXQW RI 86'  %RQGV DORQJZLWK
UHGHPSWLRQSUHPLXPRI86'DJJUHJDWLQJWR86'DQGSURYLGHGIRUQHZOLDELOLW\
EDVHGRQWKHVHWWOHPHQWSD\RXWLQWHUPVRIWKH6HWWOHPHQW$JUHHPHQWLQWKHERRNVRIDFFRXQWVIRUWKH\HDU
ended 31 March, 2013.
 ,QFDVHWKH&RPSDQ\GHOD\VLQPDNLQJWKHSD\PHQWRIWKHEDODQFHFRQVLGHUDWLRQDVSURYLGHGLQWKHERRNV
RIDFFRXQWVWKH&RPSDQ\ZLOOKDYHWRSD\VXUFKDUJHIRUWKHGHOD\HGSD\PHQWLQWHUPVRIWKH6HWWOHPHQW
$JUHHPHQW  +RZHYHU LI WKH GHOD\ LV EH\RQG  PRQWKV IURP WKH GDWH RI VLJQLQJ WKH $JUHHPHQW WKHQ
WKHVDLG$JUHHPHQWZLOOEHWUHDWHGDVWHUPLQDWHGDQGWKHOLDELOLW\WRZDUGVRXWVWDQGLQJERQGVDORQJZLWK
UHGHPSWLRQSUHPLXPDOUHDG\ZULWWHQEDFNZLOOEHUHLQVWDWHGLQWKHERRNVRIDFFRXQWV

2.17 Information of Subsidiaries

PARTICULARS Currency Bell, Sons Relonchem 0DUNVDQV3KDU- Currency NOVA Phar-
& Co (Drug- Limited ma U.K. Limited maceuticals
gists) Limited CONSOLIDATED Australasia
Pty Ltd
Capital *%3 6334 2300 1000 $8' 150
RS. 524733   RS. 
Reserve *%3    $8' 
RS.    RS. 174744643
Total Assets *%3    $8' 
RS.    RS. 
7RWDO/LDELOLWLHV *%3    $8' 
RS.    RS. 
,QYHVWPHQW *%3    $8' 
RS.    RS. 
Turnover *%3    $8' 
RS.    RS. 
3URÀW/RVV *%3    $8' 
Before Taxation RS.    RS. 
Provision for *%3  0  $8' 571724
Taxation RS.  0  RS. 32101502
3URÀW/RVV *%3    $8' 
After Taxation RS. 65253341   RS. 
Dividend *%3    $8' 
RS.    RS. 

2.18 )LJXUHVRIWKHSUHYLRXV\HDUKDYHEHHQUHJURXSHGDQGUHDUUDQJHGZKHUHYHUQHFHVVDU\VRDVWRPDNHWKHPFRP
SDUDEOHZLWKWKHFXUUHQW\HDU·VÀJXUHV


 AN N UA L R E P O RT 2012-2013

Note No.3
Share Capital
Particulars 31 March 2013 31 March 2012
Number ` Number `
Authorised
(TXLW\6KDUHVRI`HDFK 550,000,000 550,000,000 550,000,000 550,000,000
7% Redeemable Cumulative Preference Shares
of `HDFK 1,400,000 140,000,000 1,400,000 140,000,000
551,400,000 690,000,000 551,400,000 
Issued, Subscribed & Paid up
(TXLW\6KDUHVRI`HDFK 385,307,204 385,307,204  
7% Redeemable Cumulative Preference Shares
of `HDFK 1,350,000 135,000,000 1,350,000 135,000,000
Total 386,657,204 520,307,204  

a. Reconciliation of the shares outstanding at the beginning and at the end of the reporting period
Particulars Equity Shares of `HDFK 7%Redeemable Cumulative
preference Shares of `
each
Number ` Number `
Shares outstanding at the beginning of the   1,350,000 135,000,000
year
6KDUHV,VVXHGGXULQJWKH\HDU 17,500,000 17,500,000  
6KDUHVERXJKWEDFNGXULQJWKH\HDU    
Shares outstanding at the end of the year   1,350,000 135,000,000
 7KH&RPSDQ\KDGLVVXHGRQWK'HFHPEHUFRQYHUWLEOHZDUUDQWVWR0U0DUN6DOGDQKDSURPRWHU
RIWKH&RPSDQ\RQSUHIHUHQWLDOEDVLV'XULQJWKH\HDU0U0DUN6DOGDQKDH[FHUFLVHGKLVULJKWRIFRQYHUVLRQ
RIWKHVDLGZDUUDQWVLQWRHTXLW\VKDUHV$FFRUGLQJO\WKH&RPSDQ\KDVRQLVVXHGDQGDOORWWHG
HTXLW\VKDUHVRI`HDFKIDFHYDOXHWR0U0DUN6DOGDQKDLQFRQYHUVLRQRIWKHZDUUDQWV&RQVHTXHQWO\WKHFRPSDQ\·V
,VVXHG6XEVFULEHGDQG3DLG8S(TXLW\6KDUH&DSLWDOKDVLQFUHDVHGIURPHTXLW\VKDUHVRI`HDFKWR
HTXLW\VKDUHVRI`HDFKHIIHFWLYHIURP7KHVHHTXLW\VKDUHVZHUHLVVXHGDWDFDVKFRQVLGHU
ation of `SHUHTXLW\VKDUHGHWHUPLQHGLQDFFRUGDQFHZLWKDSSOLFDEOH6(%,JXLGHOLQHV
E 7HUPVULJKWVDWWDFKHGWR(TXLW\6KDUHV
 7KH&RPSDQ\KDVRQO\RQHFODVVRI(TXLW\6KDUHVKDYLQJDSDUYDOXHRI` SHUVKDUH$OOWKH(TXLW\6KDUHVUDQNSDUL
SDVVXLQDOOUHVSHFW(DFKKROGHURI(TXLW\6KDUHVLVHQWLWOHGWRRQHYRWHSHUVKDUH7KHHTXLW\VKDUHKROGHUVDUHHQWLWOHG
WRGLYLGHQGLIGHFODUHGE\WKHVKDUHKROGHUVLQDQ$QQXDO*HQHUDO0HHWLQJLQSURSRUWLRQWRWKHQXPEHURI(TXLW\6KDUHV
KHOGE\WKHVKDUHKROGHUV,QWKHHYHQWRIOLTXLGDWLRQRIWKH&RPSDQ\WKHKROGHUVRI(TXLW\6KDUHVZLOOEHHQWLWOHGWRUH
FHLYHUHPDLQLQJDVVHWVRIWKH&RPSDQ\DIWHUGLVWULEXWLRQRIDOOSUHIHUHQWLDODPRXQWV7KHGLVWULEXWLRQZLOOEHLQSURSRUWLRQ
WRWKHQXPEHURI(TXLW\6KDUHVKHOGE\WKHVKDUHKROGHUV
F 7HUPVULJKWVDWWDFKHGWR3UHIHUHQFH6KDUHV
The Company had issued 1,350,000 7% Redeemable Cumulative Preference Shares of `  HDFK IXOO\ SDLGXS WR
*OHQPDUN3KDUPDFHXWLFDOV/LPLWHGRQ0DUFK7KHVHSUHIHUHQFHVKDUHVKDYHEHHQUHGHHPHGRQ0DUFK
E\LVVXHRIQHZ5HGHHPDEOH&XPXODWLYH3UHIHUHQFH6KDUHVRI`HDFKIXOO\SDLGXSXQGHUWKHVDPH
WHUPVDQGFRQGLWLRQV7KHQHZSUHIHUHQFHVKDUHVZLOOEHGXHIRUUHGHPSWLRQRQ0DUFK7KHVHSUHIHUHQFHVKDUHV
FDUU\GLYLGHQGDWWKHUDWHRISHUDQQXPVXEMHFWWRDSSURYDORIWKHVKDUHKROGHUVDWDQ$QQXDO*HQHUDO0HHWLQJ7KH
KROGHURIWKHSUHIHUHQFHVKDUHVLVHQWLWOHGWRRQHYRWHSHUVKDUHRQO\RQUHVROXWLRQVSODFHGEHIRUHWKH&RPSDQ\ZKLFK
GLUHFWO\DIIHFWWKHULJKWVDWWDFKHGWRWKHSUHIHUHQFHVKDUHV,QWKHHYHQWRIOLTXLGDWLRQRIWKH&RPSDQ\EHIRUHUHGHPSWLRQ
RIWKHSUHIHUHQFHVKDUHVWKHKROGHURIWKHSUHIHUHQFHVKDUHVZLOOKDYHSULRULW\RYHUHTXLW\VKDUHVLQWKHSD\PHQWRIGLYL
dend and repayment of capital.

50
 Marksans Pharma Limited

d. The company has not issued bonus shares and shares for consideration other than cash nor the company has bought
EDFNDQ\VKDUHVGXULQJWKHSHULRGRIÀYH\HDUVLPPHGLDWHO\SUHFHGLQJWKHUHSRUWLQJGDWHH[FHSWWKHLVVXHRISUHIHUHQFH
shares as stated in Note No.3c above.

e. Details of shareholders holding more than 5% shares in the Company

Name of Shareholder 31 March 2013 31 March 2012
No. of Shares % of Holding No. of Shares % of Holding
held held
(TXLW\6KDUHVRI` HDFKIXOO\SDLG
0U0DUN6DOGDQKD 196,672,780 51.04  
7% Redeemable Cumulative Preference
Shares of `HDFKIXOO\SDLG
*OHQPDUN3KDUPDFHXWLFDOV/LPLWHG 1,350,000 100 1,350,000 100

Note No.4
Reserves & Surplus
Particulars 31 March 2013 31 March 2012
` `
a. Capital Reserves
 2SHQLQJ%DODQFH 122,500 122,500
(+) Current Year Transfer - 
Closing Balance 122,500 
b. Securities Premium Account
 2SHQLQJ%DODQFH 435,588,795 
(+) Securities premium credited on Share issue 27,300,000 
Closing Balance 462,888,795 
c. General Reserve
 2SHQLQJ%DODQFH 507,110,591 167,411,324
(+) Current Year Transfer 2,551,486,609 
 :ULWWHQ%DFNLQ&XUUHQW<HDU - 
Closing Balance 3,058,597,200 
G([FKDQJH)OXFWXDWLRQ$F (22,444,797) 
(22,444,797) 
e. Surplus
 2SHQLQJEDODQFH (3,566,735,656) 
 1HW3URÀW1HW/RVV)RUWKHFXUUHQW\HDU 458,842,722 
 'LYLGHQG (46,790,481) 
Closing Balance (3,154,683,415) (3,566,735,656)
Total 344,480,283 

Note No.5
Long Term Borrowings
Secured
a. Term loans
 IURPEDQNV 78,400,000 151,452,705
b. Vehicle Loan 368,473 
Total 78,768,473 152,013,622

51
 AN N UA L R E P O RT 2012-2013

Note No.5.1
7KHWHUPORDQLVVHFXUHGE\DFKDUJHRQWKHSODQWVDQGPDFKLQHULHVRI*RDSODQWV7KHUHDUHQRRYHUGXHVUHSD\PHQWRI
WKHWHUPORDQ0DWXULW\SURÀOHRI7HUP/RDQDUHDVVHWRXWEHORZ
2 years \HDUV \HDUV Beyond 4 years
7HUP/RDQIURP%DQN`) 26,614,430 20,530,124  17,200,000

Particulars 31 March 2013 31 March 2012

` `
Note No.6
Deferred tax liabilities (Net)
Deferred Tax Liabilities : DTL
7DQJLEOHDVVHWV%) 125,868,907 
$PRUWL]DEOHJRRGZLOO - 
$GG'HIHUUHG7D[/LDELOW\RI0DUNVDQV3KDUPD8./WG 3,951,654 
Total 129,820,561 
Deferred Tax Assets : DTA
,QWDQJLEOH,PSDLUPHQWRIDVVHWV 103,656,129 
Total 103,656,129 
1HW'7$'7/ 26,164,432 
7KH1HW'7$'7/KDVWKHIROORZLQJEUHDNGRZQ
'HIHUUHG7D[/LDELOLWLHV'7/ 129,820,561 
Deferred Tax Assets : DTA 103,656,129 
1HW'7$'7/ 26,164,432 

Note No.7
Short Term Borrowings
Secured
:RUNLQJ&DSLWDOIDFLOLWLHVIURP%DQN 1,137,870,477 
Total 1,137,870,477 

Note No.7.1
:RUNLQJFDSLWDOIDFLOLWLHVDUHVHFXUHGE\+\SRWKHFDWLRQRIVWRFNRIUDZPDWHULDOSDFNLQJPDWHULDOÀQLVKHGJRRGVZRUNLQ
SURJUHVVUHFHLYDEOHVDQGHTXLWDEOHPRUWJDJHRQÀ[HGDVVHWVRIPDQXIDFWXULQJIDFLOLW\RI*RDSODQWVSUHVHQWDQGIXWXUH
:RUNLQJFDSLWDOORDQVWDNHQIRU%HOO6RQVDQG&R'UXJJLVWV/LPLWHGDQG5HORQFKHP/LPLWHGDUHVHFXUHGE\&RUSRUDWH
*XDUDQWHHSURYLGHGE\WKHSDUHQWFRPSDQ\0DUNVDQV3KDUPD/WG

Note No.8
Trade Payable
Trade Payable 560,615,599 
Total 560,615,599 

7UDGH3D\DEOH,QFOXGHVJHQHUDODQGPLVFHOODQHRXVFUHGLWRUV

52
 Marksans Pharma Limited

Particulars 31 March 2013 31 March 2012

` `
Note No.9
Other Current Liabilities
D&XUUHQWPDWXULWLHVRI7HUP/RDQ 411,336,236 
E&XUUHQWPDWXULWLHVRI9HKLFOH/RDQ 192,444 
F)RUHLJQ&XUUHQF\&RQYHUWLEOH%RQGV 675,804,986 
d. Deposits 10,000 
Total 1,087,343,666 

Note No.9.1 Term Loan

7HUP ORDQ LQFOXGHV ORDQ RI RI …  PLOOLRQ WDNHQ E\ VXEVLGLDU\ &RPSDQLHV ZKLFK LV VHFXUHG E\ FRUSRUDWH JXDUDQWHH
SURYLGHGE\WKHSDUHQWFRPSDQ\0DUNVDQV3KDUPD/WGDQGDSOHGJHRIVKDUHVLQ0DUNVDQV+ROGLQJ/LPLWHG 5HORQFKHP
/LPLWHG

Note No.9.2 Foreign Curreny Convertible Bonds

7KH)RUHLJQ&XUUHQF\&RQYHUWLEOH%RQGVKDGEHFRPHGXHIRUUHGHPSWLRQRQWK1RYHPEHUDQGZHUHQRWUHGHHPHG
7KHVH %RQGV KDYH UHGHPSWLRQ SUHPLXP RI  RI WKH SULQFLSDO YDOXH )XUWKHU GXH WR WKH UHGHPSWLRQ GHIDXOW WKH
UHGHPSWLRQDPRXQWDWWUDFWVGHIDXOWLQWHUHVWDWSDIURPWKHGXHGDWHRIUHGHPSWLRQ
$VUHSRUWHGHDUOLHUWKHFRPSDQ\KDGEHHQLQFRQVWUXFWLYHGLDORJXHZLWKWKH%RQGKROGHUVIRUDSRVVLEOHVHWWOHPHQWSURSRVDO
7KHFRPSDQ\KDVVLJQHGIXOODQGÀQDOVHWWOHPHQWDJUHHPHQWZLWKIHZ%RQGKROGHUVZKRKROGVXEVWDQWLDODPRXQWRI%RQGV
IRUVHWWOLQJWKHLURXWVWDQGLQJRYHUDSHULRGRIPRQWKVVWDUWLQJIURP)HEUXDU\7KHFXUUHQWRXWVWDQGLQJ,QFOXGLQJ
SD\DEOHVXQGHUVHWWOHPHQWDJUHHPHQWLV86'`DVDW

Note No.10
Short Term Provisions
a. Provision for Gratuity and compensated absences
 *UDWXLW\ 5,195,550 3,626,106
 &RPSHQVDWHGDEVHQFHV 18,961,453 
b. Others 162,839,105 
Total 186,996,108 

53
54
Note No.11
Fixed Assets *URVV%ORFN Accumulated Depreciation 1HW%ORFN
"Balance as at Additions Disposals ,PSDLUPHQWV "Balance as at "Balance as at Depreciation 2QGLVSRVDOV "Balance as at "Balance as at "Balance as at
1 April 2012" 31 March 1 April 2012" charge for the 31 March 31 March 31 March
2013" year 2013" 2013" 2012"
` ` ` ` ` ` ` ` ` ` `
a Tangible Assets
/DQG     9,665,840    - 9,665,840 
Buildings     378,426,406    76,274,988 302,151,418 
3ODQWDQG(TXLSPHQW     812,003,920    397,117,213 414,886,707 
)XUQLWXUHDQG)L[WXUHV  63,771   9,805,590 3,757,570   4,567,394 5,238,196 
Vehicles   704,724  11,718,280 5,536,731  440,063 6,155,959 5,562,321 
AN N UA L R E P O RT

2IÀFHHTXLSPHQW 5,522,645 164,002   5,686,647    3,800,999 1,885,648 
&RPSXWHUDQG6RIWZDUH     26,638,386    24,777,928 1,860,458 5,533,207
Total  63,053,345 704,724  1,253,945,069   440,063 512,694,481 741,250,588 
b Intangible Assets
*RRGZLOO    452,659,117   114,032,337 338,626,780 
Prescription Product    344,737,793  20,044,757 91,970,251 252,767,542 
/LFHQFHV
27&3URGXFW/LFHQFHV    3,622,103 474,705 263,507 738,212 2,883,891 
2012-2013

,QWHUQDOO\*HQHUDWHG     513,786,881 236,773,737   288,152,425 225,634,456 277,013,144

$1'$0DUNHW
Authorisations, Product
/LFHQFHV 2WKHUV
Total     1,314,805,894    494,893,225 819,912,669 
Total (a+b)   704,724  2,568,750,963   440,063 1,007,587,706 1,561,163,257 
3UHYLRXV\HDUÀJXUH 3,401,340,877 54,525,647 3,076,265 947,726,840 2,505,063,419 615,443,902 236,997,646 912,548 851,529,000 1,653,534,419 2,785,896,975
Note No.11.1
7KHFRPSDQ\KDVLQWHUQDOO\JHQHUDWHGLQWDQJLEOHDVVHWVLQWKHQDWXUHRI$1'$0DUNHW$XWKRULVDWLRQ6LWH9DULDWLRQ/LFHQVHVIRU&5$067KHH[SHQVHVLQFXUUHGRQGHYHORSPHQW
RISURFHVVSURGXFWDQGFRPSOLDQFHZLWKUHJXODWRU\SURFHGXUHVRI86)'$DQGRWKHUJOREDOKHDOWKDXWKRULWLHVLQÀOLQJRI$EEUHYLDWHG1HZ'UXJ$SSOLFDWLRQ$1'$0DUNHW
$XWKRULVDWLRQ6LWH9DULDWLRQ/LFHQVHVIRU&5$06DQG0+5$SURFHGXUHIRU0DUNHW$XWKRULVDWLRQ6LWH9DULDWLRQ/LFHQVHVDUHFDSLWDOLVHGDQGLGHQWLÀHGDVLQWDQJLEOH DVVHWV LQ
DFFRUGDQFHZLWK$6,QWDQJLEOH$VVHWV6RPHRIWKHVHLQWDQJLEOHDVVHWVDUHRXWOLFHQVHGWRRYHUVHDVSDUWLHVJLYLQJWKHPH[FOXVLYHVHPLH[FOXVLYHULJKWVWRPDUNHWWKH
FRPSDQ\·VSURGXFWVLQWKHLQWHUQDWLRQDOPDUNHWV           
 Marksans Pharma Limited

Particulars 31 March 2013 31 March 2012

` `
Note No.12
Long Term Loans and Advances
8QVHFXUHGFRQVLGHUHGJRRG 12,021,619 
Total 12,021,619 

Note No.13
Inventories
5DZ0DWHULDOV3DFNLQJ0DWHULDOV:RUNLQSURJUHVV)LQLVKHGJRRGVDQG6WRFNLQ
trade 776,918,989 
Total 776,918,989 

Note No.14
Trade Receivables
Trade receivables outstanding for a period less than six months from the date they
are due for payment
8QVHFXUHGFRQVLGHUHGJRRG 1,313,142,667 
Total 1,313,142,667 

Note No.15
Cash and cash equivalents
D%DODQFHVZLWKEDQNV 155,058,393 53,140,264
b. Cash on hand 422,135 
F%DQNGHSRVLWVZLWK/HVVWKDQPRQWKVPDWXULW\ 18,575 167,362,155
d. Margin Money 3,300,466 3,174,255
Total 158,799,569 

Note No.16
Short-term loans and advances
D$GYDQFHUHFRYHUDEOHLQFDVKRUNLQG
 8QVHFXUHGFRQVLGHUHGJRRG 190,399,911 71,135,157
Total 190,399,911 71,135,157

55
 AN N UA L R E P O RT 2012-2013

Particulars 2012-13 

` `
Note No.17
Revenue from operations
Sale of products 4,371,506,042 
2WKHURSHUDWLQJUHYHQXHV 12,717,499 
/HVV([FLVHGXW\ - 
Total 4,384,223,541 

Note No.18
Other income
,QWHUHVW,QFRPH 9,972,890 
,QVXUDQFH&ODLPUHFHLYHG 8,877,329 
'LYLGHQG,QFRPH 25,104,179 
Total 43,954,398 

Note No.19
Cost of materials and components consumed
Cost of material and components consumed 1,359,288,096 

Note No.20
&KDQJHVLQLQYHQWRULHVRIÀQLVKHGJRRGVZRUNLQSURJUHVVDQG6WRFNLQ7UDGH
&KDQJHVLQLQYHQWRULHVRIÀQLVKHGJRRGVZRUNLQSURJUHVVDQG6WRFNLQ7UDGH 121,542,505 117,715,604

Note No.21
(PSOR\HH%HQHÀWV([SHQVH
(a) Salaries and incentives 500,886,863 
E&RQWULEXWLRQVWR3URYLGHQGIXQG(6,&DQGRWKHUIXQG 42,786,357 
F6WDIIZHOIDUHH[SHQVHV 15,451,851 
Total 559,125,071 

Note No.22
Finance Costs
,QWHUHVWH[SHQVH 114,528,722 134,722,264
2WKHUV 31,435,772 
Applicable net loss on foreign Exchange - 
Total 145,964,494 

Note No.23
Depreciation and amortization expense
Depreciation on tangible assets 60,219,825 
Amoritization of intangible asssets 96,278,944 
Total 156,498,769 

56
 Marksans Pharma Limited

Particulars 2012-13 

` `
Note No.24
Other Expenses
Water Charges 8,127,834 
3RZHU )XHO 53,108,626 
)UHLJKW,QZDUG 5DZ0DWHULDO&OHDULQJ&KDUJHV 46,169,692 
Repairs & Maintenance 32,208,449 
2WKHU0DQXIDFWXULQJ([SHQVHV 52,296,906 
Rent 27,270,920 
Rates & Taxes 7,033,576 
Travelling Expenses 27,021,432 
Communication Expenses 5,390,622 
Courier & Postage Expenses 3,175,975 
Printing & Stationery 6,942,320 
$XGLW)HHV 3,026,797 
9HKLFOH([SHQVHV /RFDO&RQYH\DQFH 5,136,108 
/HJDO 3URIHVVLRQDO)HHV 38,267,016 
2IÀFH([SHQVHV 511,596 
,QVXUDQFH&KDUJHV 16,079,026 13,720,075
'LPLQXWLRQRI,QYHVWPHQW - 
,PSDLUHPHQWRI$VVHWV - 
([FKDQJH/RVV*DLQ (35,075,027) 
/RVVRQVDOHRI)L[HG$VVHWV 126,884 435,012
2WKHU2SHUDWLQJ([SHQVHV 82,385,243 
)UHLJKW2XWZDUG ([SRUW&OJ([SV 116,632,526 
Selling & Distribution Expenses 106,634,375 
Total 602,470,896 

Note No.24.1
Details of Payments to the Auditor
a. As Auditor 3,026,797 
Total 3,026,797 

For and on Behalf of For and on behalf of the Board of Directors

N. K. MITTAL & ASSOCIATES
Chartered Accountant
MARK SALDANHA DR. BALWANT S. DESAI
Chairman and Managing Director :KROH7LPH'LUHFWRU
N.K.MITTAL
Proprietor
0HPEHUVKLS1R HARSHAVARDHAN PANIGRAHI
)1R: &RPSDQ\6HFUHWDU\ /HJDO0DQDJHU
Place : Mumbai
Date : 27th May, 2013

57
 AN N UA L R E P O RT 2012-2013

Consolidatd Statement of Cash Flow for the year ended as on March 31, 2013
(Amount in `)
Particulars For the period ended as on
31.03.2013 31.03.2012
A. Cash Flow From Operating Activities
3URÀW/RVV$IWHU7D[ 458,842,722 
$GMXVWPHQWVWRUHFRQFLOHSURÀWEHIRUHWD[DQGSULRUSHULRG
items to cash provided by operations:
 'HSUHFLDWLRQ 156,498,769 
 ,PSDLUPHQWRIDVVHWV - 
 3UHOLPLQDU\ 'HIHUUHG5HYHQXH([SHQVHV:ULWWHQRII - 
 ([FKDQJH)OXFWXDWLRQ5HVHUYH 17,343,204 
 /RVVRQVDOHRI%XVLQHVV)L[HG$VVHWV 126,884 435,012
 ,QWHUHVW([SHQVH 114,528,722 134,722,264
 ,QWHUHVW5HFHLSW (9,972,890) 
2SHUDWLQJ3URÀWEHIRUHZRUNLQJFDSLWDOFKDQJHV 737,367,411 
0RYHPHQWVLQZRUNLQJFDSLWDO
,QFUHDVH'HFUHDVHLQ,QYHQWRULHV (43,330,275) (61,407,126)
,QFUHDVH'HFUHDVHLQ7UDGHDQGRWKHUUHFHLYDEOHV (185,455,772) 
,QFUHDVH'HFUHDVHLQORDQVDQGDGYDQFHV (90,459,304) 
'HIHUUHG7D[$VVHWV/LDELOLW\ (104,440,388) (26,501,247)
0LQRULW\,QWHUHVW 13,738,538 31,046,567
,QFUHDVH'HFUHDVHLQ7UDGH3D\DEOHDQG6KRUWWHUPSURYLVLRQV 58,183,265 
Net cash used in operating activities 385,603,475 
B. Cash Flow provided by (used in) Investing Activities:
3XUFKDVH6DOHRI%XVLQHVV)L[HG$VVHWV (64,254,490) 
,QYHVWPHQW - 
,QWHUHVW5HFHLSW 9,972,890 
Net Cash Flow provided by (used in) Investing Activities (54,281,600) 
C. Cash Flow provided by (used in) Financing Activities:
,QFUHDVHLQ(TXLW\6KDUH&DSLWDO 17,500,000 
,QFUHDVHLQ6KDUH3UHPLXP 27,300,000 
,QFUHDVHLQ*HQHUDO5HVHUYH 2,551,486,609 
,QFUHDVHLQ&DSLWDO5HVHUYH (468,600,000) 
0RQH\UHFHLYHGDJDLQVWVKDUHZDUUDQWV (11,565,500) 11,565,500
Dividend Paid (46,790,481) 
3URFHHGV5HSD\PHQWRI6KRUW7HUPDQG/RQJ7HUP%RUURZLQJV:ULWHEDFNRQ
)&&%6HWWOHPHQW (2,351,190,013) 
,QWHUHVW([SHQVH (114,528,722) (134,722,264)
Net Cash Flow provided by (used in) Financing Activities (396,388,107) 
1HW,QFUHDVH'HFUHDVHLQ&DVKDQG%DQN%DODQFHV (65,066,232) 
&DVK %DQN%DODQFHVDVDW 223,865,801 
&DVK %DQN%DODQFHVDVDW 158,799,569 
(65,066,232) 

Notes :
 7KH&DVK)ORZ6WDWHPHQWKDVEHHQSUHSDUHGXQGHUWKH´,QGLUHFW0HWKRGµDVVHWRXWLQ$FFRXQWLQJ6WDQGDUGRQ&DVK)ORZ6WDWHPHQWV
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 7KH3UHYLRXV\HDU·VÀJXUHVKDYHEHHQUHJURXSHGZKHUHYHUQHFHVVDU\LQRUGHUWRFRQIRUPWRWKLV\HDU·VSUHVHQWDWLRQ

For and on Behalf of For and on behalf of the Board of Directors

N. K. MITTAL & ASSOCIATES
Chartered Accountant MARK SALDANHA DR. BALWANT S. DESAI
Chairman and Managing Director :KROH7LPH'LUHFWRU
N.K.MITTAL
Proprietor
0HPEHUVKLS1R HARSHAVARDHAN PANIGRAHI
)1R: &RPSDQ\6HFUHWDU\ /HJDO0DQDJHU

Place : Mumbai
Date : 27th May, 2013


 Marksans Pharma Limited

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