RPG LIFESCIENCES RPG Life Sciences (RPGLS) is an Indian Pharmaceutical Company.

Formerly known as Searle (India) Ltd, RPG Life Sciences is part of RPG Enterprises. It has its corporate office in RPG House in Worli,Mumbai. Its three major activities are manufacturing and marketing of bulk drugs, also known as API, (Active Pharmaceutical Ingredients), pharmaceutical formulation and fermentation & biotechnology. RPGLS is present in the domestic as well as the international market. It exports its products primarily to Europe, Latin America, Australia & South East Asian countries.

BALANCE SHEET AS AT 31ST MARCH, 2010 31st mar2010 Sources of Funds Shareholders Funds Capital Reserves and Surplus 2 Share arrants Refer Note 3 of Schedule 120,551 515,243 635,794 114,951 421,593 536,544 31st mar2009

8520 Loan Funds Secured Loans 3 Unsecured Loans 4 490,524 Deferred Taxation 5 Deferred Tax Liabilities Less: Deferred Tax Assets 64,037 13,241 50,796 Total 1,185,634 486,300 4,224

12,668

469,149 94,762 563,911

49,008 9,463 39,545 1,152,668

Application of Funds Fixed Assets 6 Gross Block Less: Depreciation/Amortisation Net Block Capital ork-in-Progress (including advances for capital expenditure) 28,160 1,112,061 1 Current Assets, Loans and Advances Inventories Sundry Debtors Cash and Bank Balances Loans and Advances 548,413 Less: Current Liabilities and Provisions Liabilities Provisions 424,794 50,046 474,840 Net Current Assets Total 1,185,634 73,573 473,688 43,512 517,200 (9,160) 1,152,668 149,042 312,387 8,006 78,978 141,094 258,405 2,191 106,350 508,040 625 161,828 1,326,408 242,507 1,083,901 1, 1,328,306 167,103 161,203

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2010 Year ended 31st March, 2010 Rs. 000 Rs. 000 Income Year ended 31st March, 2009 Rs. 000 Rs. 000

Gross Sales Less: Excise Duty on Sales Net Sales Other Income

1,639,917 41,443 1,598,474 32,514 1,630,988

1,469,048 64,322 1,404,726 39,701 1,444,427

Expenditure Materials Personnel Cost Other Expenses Interest Depreciation/Amortisation 465,241 300,461 546,558 81,392 91,822 1,485,474 Profit before Taxation Provision for Taxation Current Tax 26,300 9,000 145,514 422,571 258,576 499,848 86,116 94,181 1,361,292 83,135

Minimum Alternate Tax Credit (9,000) Deferred Tax Fringe Benefits Tax 5,450 37,551 Profit after Taxation 107,963 17,060 66,075 36,385 102,460 11,251 11,610

Balance brought forward from previous year 78,983 186,946 Appropriations Transfer to General Reserve Proposed Dividend Tax on Proposed Dividend 8,097 21,699 3,604

3,304 17,243 2,930 78,983

Balance carried to Balance Sheet 153,546

186,946 Earnings per Share - Rs. per Equity Share of Rs. 8 each Basic 7.51 4.60 Diluted 6.54 4.59

102,460

SCHEDULES FORMING PART OF THE BALANCE SHEET AS AT 31ST MARCH, 2010 As at 31st March, 2010 Rs. 000 Rs. 000 As at 31st March, 2009 Rs. 000 Rs. 000

Capital Authorised 18,750,000 Equity Shares of Rs. 8 each Issued and Subscribed 15,068,850 (Previous year - 14,368,850) Equity Shares of Rs. 8 each fully paid-up 120,551 114,951 Of the above (a) 14,368,850 shares were allotted as fully paid-up pursuant to a Scheme of Arrangement without payments being received in cash Refer Note 1 of Schedule 18 . (b) 700,000 (Previous year - Nil) shares were issued on conversion of Share arrants Refer Note 3 of Schedule 18 . Schedule 2 Reserves and Surplus Capital Reserve Share Premium Balance as per last Balance Sheet Add: Credited during the year on conversion of Share arrants Refer Note 3 of Schedule 18 10,990 321,039 310,049 310,049 310,049 500 500 150,000 150,000

Contingency Reserve Balance as per last Balance Sheet Less: Expenses in connection with the Scheme of Arrangement Refer Note 1 of Schedule 18 1,381 25,780 General Reserve Balance as per last Balance Sheet Add: Transfer from Profit and Loss Account 6,281 8,097 14,378 Profit and Loss Account 153,546 515,243 Schedule 3 Secured Loans Working Capital Loans from Banks 225,378 354,709 2,977 3,304 6,281 78,983 421,593 25,780 25,780 27,161

Secured by hypothecation of inventory and book debts and second charge on immovable assets at Thane / Ankleshwar Factory Long Term w orking Capital Loan from a Financial Institution 200,000 Secured by hypothecation of fixed assets (movable) and second charge on entire current assets at Thane / Ankleshwar Factory Term Loan from Banks Secured by hypothecation of specific assets purchased under loan Term Loan from Banks 42,494 89,141 580 734

Secured by hypothecation of specific assets purchased under loan and second charge on immovable assets at Thane factory Leased Liabilities Secured on the underlying assets 486,300 469,149 17,848 24,565

CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2010 Year ended 31st March, 2010 Rs. 000 Rs. 000 A. Cash flow from operating activities Net Profit before Taxation Adjustments for Depreciation/Amortisation Interest Income Dividend Income - (50) (Profit)/Loss on Sale of Fixed Assets (Net) (2,892) Fixed Assets written off Interest Expense 1,401 81,392 312 86,116 91,822 (421) 94,181 (138) 145,514 83,135 Year ended 31st March, 2009 Rs. 000 Rs. 000

Unrealised Exchange Loss (Net) 1,970 456 173,272 Operating profit before working capital changes 318,786 Adjustments for Trade and Other Receivables Inventories Trade and Other Payables (33,524) (7,948) (50,379) (91,851) Cash generated from operations 226,935 18,998 11,829 8,982 39,809 303,821 (15,726) 288,095 180,877 264,012

Direct Taxes paid (including Fringe Benefits Tax and net of refund of taxes) (21,277) Net cash from operating activities B. Cash flow from investing activities Purchases of Fixed Assets (including advances for capital expenditure) (55,047) 205,658

(41,060)

Sale of Fixed Assets Redemption of Investment Interest received Dividend received - 50

14,898 421

4,866 4,414 237

Expenses in connection with the Scheme of Arrangement Net cash used in investing activities C. Cash flow from financing activities Proceeds from issue of Share Capital/Share arrants Proceeds from Long Term Borrowings (Secured/ Unsecured Loans) Repayment of Long Term Borrowings (Secured/ Unsecured Loans) Repayment of Short-term Borrowings Dividend paid Tax paid on Dividend Interest paid Net cash used in financing activities Net increase/(decrease) in cash and cash equivalents Cash and Cash Equivalents Cash and Cash Equivalents Opening Balance Closing Balance

(39,728)

(1,852) (33,345)

12,442 205,782 (55,965) (224,002) (14,739) (2,930) (80,703) (160,115) 5,815 2,191 8,006

12,668 17,445 (112,479) (68,409) (16,832) (2,930) (87,469) (258,006) (3,256) 5,447 2,191

CONCLUSION
It is clear from above financial statements that liabilities have decrease in 2010 and earnings on assets have increased Also dividend and interest paid have decreased in the FY2010 as compared to FY2009. But sales of fixed assets has increased and taxes on fringe benefits have also increased in FY2010. Expenditure have also increase and profit before taxation have also increased and current taxes have also increased. Operating profit before taxation have also increased and trades and other recievables have also increased in FY2010. Working capital loans and depreciation/amortisation both have decreased in FY2010 as compared to 2009. As a whole we can say that in FY 2010 the company has made profit as compared to FY2009.

By Rajesh kumar MBA SEC D 1225111420