Ahlcon Parenterals (India) Limited. Ahlcon Parenterals (India) Ltd. “20th Annual Report 2011–12” NOTICE. Notice is hereby given that the 20. th. Annual General Meeting of Ahlcon

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Ahlcon Parenterals (India) Limited


4, Community Centre, Saket, New Delhi - 110017, India

Telefax No. 91-11-26852036 | Email: [email protected]

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20th Annual Report 2011-12

www.ahlconinida.com

Ahlcon cover for stat.indd 1 9/11/2012 5:39:27 PM

Note: Annual Listing Fee for the year 2012-2013 has been paid to all the Stock Exchanges

MAS SERVICES LTD.T-34, 2nd Floor, Okhla Industrial Area,Phase - II, New Delhi - 110 020Ph: 011-26387281/82/83,Fax: 011- 26387384Email: [email protected]: www.masserv.com

For Dematerialisation of SharesISIN No. INE 027C01011

REGISTRAR & SHARE TRANSFER AGENTS

STOCK EXCHANGES(Where the Company’s equity shares are listed)

1. Delhi Stock Exchange Ltd. DSE House, 3/1, Asaf Ali Road, New Delhi - 110002

2. Bombay Stock Exchange Ltd. P. J. Towers, 25th Floor, Dalal Street, Mumbai - 400001

3. Jaipur Stock Exchange Ltd. Jawaharlal Nehru Marg, Malviya Nagar, Jaipur - 302017

4. The Calcutta Stock Exchange Association Ltd. Calcutta Stock Exchange Building 7, Lyons Range, Kolkata - 700001

CORPORATE INFORMATIONBOARD OF DIRECTORS

BANKERS

REGISTERED OFFICE

AUDITORS

Mr. Bikramjit AhluwaliaChairman

Dr. Rohini AhluwaliaExecutive Vice Chairperson, CEO

Ms. Sudarshan Walia, DirectorMr. Arun Kumar Gupta, DirectorProf. G.P. Talwar, DirectorDr. S.S. Arora, DirectorDr. S.C.L. Gupta, DirectorMr. S.K. Sachdeva, Director

Punjab & Sind Bank Syndicate Bank State Bank of Bikaner & JaipurHDFC Bank Ltd.

4, Community Centre, Saket, New Delhi - 110017Tel: +91-11-26852036Fax: +91-11-26852036

MANUFACTURING FACILITIESSP-917 & 918, Phase III, Industrial Area,Bhiwadi - 301019Dist. Alwar, RajasthanTel: +91-01493-305300 Fax: +91-01493-221045

CORPORATE OFFICEM-1, Saket, New Delhi - 110017Tel: +91-011-40504562

WEBSITEwww.ahlconindia.comemail: [email protected]

M/s. Arun K. Gupta & Associates Chartered Accountants, D-58, East of Kailash,New Delhi - 110065

COMPANY SECRETARY Mr. Ranjan Kumar Sahu

CONTENTSNotice.......... 01 Directors’ Report.......... 03 Management Discussion & Analysis Report... 07

Report on Corporate Governance.......... 11 Auditors’ Report.......... 17 Balance Sheet....... 20

Statement of Profit and Loss.......... 21 Notes.......... 22 Cash Flow Statement.......... 44


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Ahlcon Parenterals (India) Ltd. “20th Annual Report 2011–12”

NOTICENotice is hereby given that the 20th Annual General Meeting of Ahlcon Parenterals (India) Limited will be held on Thursday, the 27th day of September 2012 at 03.00 P.M. at the Ahlcon Public School, Mayur Vihar, Phase-I, New Delhi-110091 to transact the following business:

ORDINARY BUSINESS:

1. To receive, consider and adopt the Audited Balance Sheet of the Company as at 31st March, 2012, Statement of Profit & Loss and Cash Flow Statement for the year ended on that date together with Reports of the Board of Directors and the Auditors thereon.

2. To consider the Interim Dividend of 10% paid only for the year 2011-12 on Equity Shares of the company as Final Dividend.

3. To appoint a Director in place of Mr. Arun Kumar Gupta, who retires by rotation and being eligible, offers himself for reappointment.

4. To appoint a Director in place of Prof. G. P. Talwar, who retires by rotation and being eligible, offers himself for reappointment.

5. To appoint a Director in place of Dr. S. S. Arora, who retires by rotation and being eligible, offers himself for reappointment.

6. To appoint Auditors to hold office from the conclusion of this Annual General Meeting until the conclusion of the next Annual General Meeting of the Company and authorise the Board of Directors/ Audit Committee to fix their remuneration.

M/s. Arun K. Gupta & Associates, Chartered Accountants, are the retiring Auditors and, being eligible, offer themselves for reappointment.

By order of the Board

Place : New Delhi Ranjan Kumar SahuDated : 08.08.2012 Company Secretary

NOTES:

1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF/ HERSELF AND SUCH PROXY NEED NOT BE A MEMBER OF THE COMPANY.PROXIES IN ORDER TO BE EFFECTIVE, MUST BE RECEIVED BY THE COMPANY AT ITS REGISTERED OFFICE NOT LATER THAN, 48 HOURS BEFORE THE COMMENCEMENT OF THE MEETING.

2. Proxies shall not have any voting rights except on a poll.

3. Only bonafide members of the company whose names appear on the Register of Members/ Proxy holders, in possession of valid attendance slips duly filled and signed will be permitted to attend the meeting. The company reserves its right to take all steps as may be deemed necessary to restrict non members (excluding valid proxy holder) from attending the meeting.

4. The Register of Members and Share Transfer Books of the company shall remain closed from 20th September, 2012 to 27th September, 2012 (both days inclusive) for the purpose of Annual General Meeting.

5. After perusal of the availability of adequate net profit in the half- yearly results of the Financial year 2011-12, the Board in its meeting held on dated 13.02.2012 has considered the declaration of an Interim dividend of 10 % on the fully-paid up Equity Shares having a face value of ` 10 and paid ` 1 per equity share to those members whose names appeared in the Company’s Register of Members as on the opening hours of 25th February, 2012 by way of electronic transfer to the account of the shareholders who have provided their Bank account details to the DP and through cheques for others. While approving the audited financial results for the year ended 31st March, 2012, the Board has not recommended any further dividend and has considered the interim dividend only as Final Dividend, on Equity shares. Further, the Board has approved for payment of final dividend only on the 6% Cumulative, Redeemable Preference Shares amounting to ` 1,35,000/- (excluding tax on dividend) for the year 2011-12, in addition to ` 4,05,000/- (excluding tax on dividend) already paid as Interim Dividend on the said preference shares.

6. Those members who have so far not encashed their dividend warrants for the below mentioned financial years, may claim or approach the company for the payment thereof as the same will be transferred to the Investor Education and Protection Fund of the Central Government, pursuant to section 205C of the Companies Act, 1956 on the respective dates mentioned there against. Intimation in this regards is being sent to the concerned shareholders periodically. Kindly note that after such dates, members will lose their right to claim such dividend.

FINANCIAL YEAR ENDED AGM DATE DUE DATE

31.03.2005 30.09.05 05.11.2012

31.03.2006 30.09.06 05.11.2013

31.03.2007 29.09.07 04.11.2014

31.03.2008 30.09.08 05.11.2015

31.03.2009 30.09.09 05.11.2016

31.03.2010 17.09.10 23.10.2017

31.03.2011 30.09.11 05.11.2018

7. Pursuant to the provisions of Section 205A of the Companies Act, 1956, the unpaid/unclaimed Dividend for the year 2004-05 will be transferred to the Investor Education and Protection Fund of the Central Government on the due date.

8. Members those who may not have received/ encashed the dividend warrants for the year 2004-05, 2005-06, 2006-07, 2007-08 2008-09, 2009-10, 2010-11 and Interim Dividend 2011-12 may claim it/ apply for revalidation either to the RTA or the Secretarial Department of the company.

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9. All documents referred in the notice are open for inspection at the Registered Office of the company between 11.00 A.M. to 1.00 P.M. on any working day prior to the date of the Annual General Meeting.

10. Members / Proxies should bring the attendance slips duly filled in for attending the meeting. Members who hold shares in dematerialised form are requested to bring their Client ID and DP ID numbers for easy identification of attendance at the meeting.

11. It will be appreciated that queries, if any, on accounts and operations of the company are sent to the corporate office of the company ten days in advance of the meeting so that the information may be made readily available.

12. Shareholders are requested to immediately intimate the change in email address, correspondence address and bank details, if any, to the Company’s Registrar and Share Transfer Agent M/s. MAS Services Ltd., T-34, 2nd Floor, Okhla Industrial Area, Phase - II, New Delhi - 110 020 for payment of dividend, Annual Report and other documents from time to time. Those who are holding their shares in dematerialized form should notify to their Depository participants, change / correction in their address / bank account particulars etc.

13. Shareholders are requested to bring their copy of Annual Report to the meeting.

14. INFORMATION REQUIRED TO BE FURNISHED IN PURSUANCE OF CLAUSE 49 OF THE LISTING AGREEMENT WITH STOCK EXCHANGES

The particulars of the Directors who are proposed to be appointed /reappointed are as given below:

Mr. Arun Kumar Gupta, Independent Director

DOB: 27-12-1949, Age: 62 years

Mr. Arun Kumar Gupta is a Fellow member of the Institute of Chartered Accountants of India, as well as an Associate member of The Institute of Cost Accountants of India. He is also qualified as a Management Accountant from The Institute of Chartered Accountants of India. He is a Commerce Graduate from the prestigious Shri Ram College of Commerce, Delhi.

Mr. Gupta was nominated by Govt. of India between 1992 – 1995 to the Central Council of The Institute of Chartered Accountants of India, the highest governing body of the accountants in the country.

Mr. Gupta has vast experience in almost entire financial accounting spectrum including systems formulations, MIS, internal control, audit, taxation, and corporate laws. He has also been involved in few merger and acquisitions for small and medium enterprises. He has also been responsible for revival of many sick industrial units. Mr. Gupta has also successfully handled arrangement of loan

fund to over fifty companies. He has been a part of several teams for negotiating formation of joint ventures in India with Foreign Companies. He has also appeared as an Accounting Expert before International Chamber of Commerce, Paris.

He is Director and Chairman of Audit Committee of the following companies:

Indosolar LimitedAhluwalia Contracts (India) LimitedAhlcon Parenterals (India) LimitedSatia Synthetics Limited

He is also associated with number of NGO’s both as a member and as an advisor.

He is holding 1279 shares of the company as on 31.03.12.

Prof. G. P. Talwar, Independent Director

DOB : 02.10.1926 Age: 85 years

Prof. Talwar is having the qualifications of B.Sc. (Hons.) M.Sc. (Tech.) and Docteur es Sciences (Sorbonne). He is the founder Director of the Talwar Research Foundation for Immunology. To name a few of his previous experience, he was the head of Research and Training Centre in Immunology of WHO for India and South East Asia, Professor and HOD of Biochemistry, AIIMS, New Delhi, Professor of Eminence and Senior Consultant, International Centre for Genetic Engineering and Biotechnology, New Delhi.

He has been bestowed with several prestigious Honours and awards by many premier organizations at national and international level.

He is holding 500 shares of the company as on 31.03.12 and not holding directorship in any other company.

Dr. S. S. Arora, Independent Director

DOB: 16-01-1959, Age: 53 years

Dr. Arora is an MBBS, MD and having the Fellowship of American Association of Respiratory Care, USA. Presently, he is a Senior Consultant, Batra Hospital, New Delhi a large group of Hospital.

He possesses in-depth knowledge on analysis of pharmaceutical market data, and has expertise in establishing strategies for marketing of pharmaceutical products. Further, he is having an extensive 30 years of experience in pharmaceutical world specifically with respect to meeting challanges for unmet medical needs, healthcare and related medical activities.

He is not holding any shares and directorship in any other company.

By order of the Board

Place : New Delhi Ranjan Kumar SahuDated : 08.08.2012 Company Secretary


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DIRECTORS’ REPORTTo the Members,

Your Directors have pleasure in presenting the 20th Annual Report on the business and operations of the Company for the financial year ended 31st March, 2012.

FINANCIAL RESULTS(` in lacs)

FOR THE YEAR ENDED 31.03.2012 CURRENT YEAR

31.03.2011 PREVIOUS YEAR

Sales (including excise) and other Income

8754.85 6827.84

Gross operating Profit 1489.86 1200.07

Financial Charges 369.91 247.09

Cash Profit 1119.95 952.98

Deprecation 339.60 289.32

Provision for doubtful debts/obsolete Stock

85.03 30.23

Provision for doubtful debts written back

45.94 16.12

Prior period Adjustments 17.82 1.28

Profit before Tax 723.44 648.28

Provision for Deferred Tax 5.34 159.70

Provision for Current 216.58 132.40

MAT Credit Entitlement (5.85) (73.03)

Income Tax Paid for earlier years 7.43 –

Profit after Tax 499.93 429.21

Balance brought forward from previous year

2082.44 2045.47

Profit available for appropriation 2782.37 2474.68

Interim Dividend on Preference Shares

4.05 –

Proposed Final Dividend on Preference Shares

1.35 5.40

Tax on Interim Dividend on Preference Shares

0.66 –

Tax on Proposed Dividend on Preference Shares

0.22 0.90

Interim Dividend on Equity Shares

72.00 –

Proposed Final Dividend on Equity Shares

– 108.00

Tax on Interim Dividend on Equity Shares

11.68 –

Tax on Final Dividend on Equity Shares

– 17.94

Profits transferred to General Reserve

60.00 60.00

Profit carried forward 2632.41 2282.44

OPERATIONAL PERFORMANCE

Your Directors have the reasons to be satisfied about the financial & operational performance of the company as it has continued to surpass all its previous records and has achieved a sales turnover of ` 7970 lacs as compared to the previous year sales turnover of ` 6277 lacs and thereby achieved a growth of 27%. The Company Net Profit has recorded a growth of 16.47% by scaling up from the previous year figure of ` 429.21 lacs to ` 499.93 lacs.

Constant thrust on productivity enhancement, cost optimization is being put by your directors to maintain a continuous growth track in the operational results of the company.

DIVIDEND

After perusal of the availability of adequate net profit in the half- yearly results of the Financial year 2011-12, the Board in its meeting held on 13.02.2012 has considered the declaration of an Interim dividend of 10 % on the fully-paid up Equity Shares having a face value of ` 10 and paid ` 1 per equity share to those members whose names appeared in the Company’s Register of Members as on the opening hours of 25th February, 2012 by way of electronic transfer to the account of the shareholders who have provided their Bank account details to the DP and through cheques for others. While approving the audited financial results for the year ended 31st March, 2012, the Board has not recommended any further dividend and has considered the interim dividend only as Final Dividend, on Equity shares.

Further, the Board has approved for payment of final dividend only on the 6% Cumulative, Redeemable Preference Shares amounting to ` 1,35,000/- (excluding tax on dividend) for the year 2011-12, in addition to ` 4,05,000/- (excluding tax on dividend) already paid as Interim Dividend on the said preference shares.

The dividend payout for the year under review has been formulated keeping in view the company’s need for capital, its growth plans and the intent to finance such plans through internal accruals to the maximum. Your directors believe that this would increase shareholder value and eventually lead to a higher return threshold.

TRANSFER TO RESERVES

Out of the profit available for appropriation, your directors propose to transfer ` 60 lacs to the General Reserve of the company which they consider for building a strong reserve position for future utilization.

EARNING PER SHARE

EPS (Earning Per Share) is ` 6.94, as compared to the previous year’s figure of ` 5.87 by a growth of 18.22 % as compare to the previous year.


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MATERIAL CHANGES WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO WHICH THE BALANCE-SHEET RELATES AND THE DATE OF REPORT

OPEN OFFER MADE BY B. BRAUN SINGAPORE PTE. LTD. (“Purchaser”) IN ACCORDANCE WITH THE SEBI TAKEOVER REGULATIONS, 2011

The promoters of the Company have entered into a Share Purchase Agreement with B. Braun Singapore Pte. Ltd. (Purchaser) on dated 21st March, 2012 for ceding controlling stake in the Company to it and in accordance with the provisions of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (“SEBI Takeover Regulations”), an open offer had been given by the purchaser to purchase the equity shares from the public shareholders of the Company at a price determined in accordance with the SEBI Takeover Regulations.

The Purchaser has made a Detailed Public Statement in accordance with the SEBI Takeover Regulations on dated 29.03.2012 and has, in light of the provisions of Regulation 26(6) of the SEBI Takeover Regulations, requested the Board of Directors of the Company to constitute a Committee of Independent Directors to provide reasoned recommendations with respect to the Open Offer made by the Purchaser in accordance with the SEBI Takeover Regulations and to publish such recommendations in accordance with the SEBI Takeover Regulations.

After adequate legal consultation, the Committee of Independent Directors has approved its recommendation on dated 19.05.2012, about the fairness of the offer price of ` 460/- by the purchaser, which were also published on various National newspapers for the information of the shareholders.

After the successful completion of the open offer process, there will be a change in the Management of the company.

UPGRADATION / PRODUCT DEVELOPMENT

The GMP standards has been revised for International as well as domestic markets. Revised Schedule M of the Drugs and Cosmetics Rules, WHO-GMP and other International norms relating to good manufacturing practices, require facilities and equipments, which causes additional financial burden upon the Company.

To meet with the current GMP norms and as well as revised Schedule M to the Drugs and Cosmetics Rules, WHO-GMP and other international norms relating to good manufacturing practices, the Company has engaged a renowned Pharma Consultant for upgrading the present facilities. Your company is updating the existing formulations, manufacturing process, packing materials and develop new formulations for AHLCON through its own In house R&D Division. The production facilities of

the Company have to be upgraded as it plans to stretch its value added products in both the domestic as well as in international markets.

RESEARCH & DEVELOPMENT

The Company has considered Research and Development (R&D) as crucial for the sustained growth of the Company. 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. The Company has stepped-up investments in R&D to keep pace with the changing domestic and global scenario.

The Company has established an In house R&D Division at Bhiwadi with a dedicated team of highly qualified, skilled scientists engaged in developing the formulations and products for its strategic portfolio management. R&D is also well on its way to realize the potential of the company by innovating with various drug delivery technologies. The company is in the process of research and development of new formulations and registration of products.

The Company has R&D Division at Bhiwadi, duly recognized by the Government of India, Ministry of Science and Technology, Department of Scientific & Industrial Research (DSIR).

With qualified and experienced research scientists manning the research and development activities, the Company has focused its thrust on new and innovative process and product development.

In respect of weighted tax benefit under the R&D expenditure, the company has filed application before the prescribed authority under Section 35 (2AB) of the Income Tax Act, 1961 which is under pipeline.

EXPORTS

In this report your company has planned for major attention of its operation on export market due to opportunity and demand of your products in the international market. Your directors are putting constant efforts for increasing the export sales component on the total turnover to mitigate the risk posed by various domestic markets and factors, which are resulting into price discrimination, cut throat competition, entry of new entities in the market, government price regulatory mechanism. Taking advantage of the increased demand of Indian pharmaceutical products, in the international market, the company has carried on registration and arrangement with several international agencies for increasing the base of export markets. Further plans are underway to increase the direct and indirect exports to various countries. As a result of this, during the year under review, the direct export sales were ` 1519 lacs as compared to the previous year’s figure of ` 670 lacs, achieving a growth of 127% approx.

As informed in our previous report, to further expand the company’s export activities, your company is in the process of registration of its product dossiers, in both the regulated as well as unregulated markets and


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the registration formalities with number of countries are well in progress. We have obtained orders from some parties and as some countries registration process is in under the pipe line and hence soon after these registration certificates are obtained, company shall be able to grab the export earnings by exporting to those countries.

BANKERS

We are banking with the Punjab & Sind Bank which has been providing financial assistance to our company for various purposes and for which we express our hearty commends.

DIRECTORS

The Present directors having a vast experience in this Industry & their timely directions ultimately had provided long term benefits to the Company. Their constant efforts and seasoned decisions paved the way to success in each path.

In accordance with the provisions of the Companies Act, 1956 and Articles of Association of the company, Mr. Arun Kumar Gupta, Prof. G. P. Talwar and Dr. S. S. Arora, Directors of the company are liable to retire by rotation at the ensuing Annual General Meeting and being eligible, offer themselves for reappointment.

Necessary resolutions seeking the approval of the shareholders for the aforesaid appointment & reappointment of directors, form part of the notice, convening the Annual General Meeting. The details of the directors, seeking appointment/ reappointment is provided under the “Report on Corporate Governance” forming part of this Annual Report.

Directors’ Responsibility Statement: Pursuant to the requirement under section 217 (2AA) of the Companies Act, 1956, with respect to Directors’ Responsibility Statement, it is hereby confirmed :

(i) That the applicable accounting standards have been followed alongwith proper explanation relating to material departures in the preparation of annual accounts;

(ii) That the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that were reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for the year under review;

(iii) That the Directors have taken proper and sufficient care for the 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;

(iv) That the Directors have prepared the accounts for the financial year ended 31st March, 2012 on a ‘going concern’ basis.

CORPORATE GOVERNANCE

Pursuant to Clause 49 of the Listing Agreement with the Stock Exchanges, a separate section titled “Report on Corporate Governance” has been annexed to this Annual Report.

AUDITOR’S REPORT

The remarks referred to in the Auditors Report are self explanatory except on the observation of disputed tax / other demand mentioned at point no. 9 (ii) of the Annexure to their report, the company has already preferred appeals before the appellate authorities against the said demand of the respective departments. Company has strong grounds to believe that the appellate authorities shall pass orders in favour of the company.

STATUTORY AUDITORS: M/s. Arun. K. Gupta & Associates, Chartered Accountants, Statutory Auditors of the company, hold office until the conclusion of the ensuing Annual General Meeting and are eligible for reappointment. We recommend for their reappointment.

COST AUDITORS: M/s. Kabra and Associates, Cost Accountants, New Delhi have been reappointed as Cost Auditors of the company for the financial year 2012-13,by the Board of Directors, on a remuneration to be settled mutually. The Cost Audit report for the financial year 2011-12 shall be filed with the MCA within the prescribed time.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS / OUTGO: The information pursuant to section 217(1)(e) of the Companies Act, 1956 read with Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 1988 is furnished in the Annexure forming part of this report.

PARTICULARS OF EMPLOYEES: During the year under review, no employee was in receipt of remuneration exceeding the specified limits. Hence, no disclosure under section 217(2-A) of the Companies Act, 1956, is required to be made.

INDUSTRIAL RELATION: The Company continued to maintain very healthy, cordial and harmonious industrial relations at all levels and your Directors wish to place on record their appreciation for the contributions made by the employees at all levels and take this opportunity to thank all employees for their hard work, dedication and commitment.

ACKNOWLEDGEMENTS: Your Directors take this opportunity to offer their sincere thanks to various departments of the Central and State Governments, Banks and Investors for their unstinted support, assistance and valuable guidance. Last but not the least, the directors wish to place on record their deep sense of appreciation for the devoted service of the Executives, Staff and workers of the company at all levels.

For and on behalf of the Board of Directors

Place: New Delhi Bikramjit AhluwaliaDate: 08.08.2012 Chairman


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ANNEXURE TO THE DIRECTORS’ REPORT I - CONSERVATION OF ENERGY

Steps towards energy conservation are being continuously undertaken to reduce wastage and improve efficiency resulting in reduced energy cost. The company has appointed a specialized agency to conduct an energy audit regularly and implement new and improved powers saving techniques to optimize the energy consumption and reduce cost on such account.

FORM - A

(A) 1. Electricity, power and fuel consumption:

CURRENT YEAR PREVIOUS YEAR

(a) Purchased:

Units 7057700 6459740

Total amount (`) 38079177 30792562

Average Rate per Unit 5.40 4.77

(b) Own Generation: Units Generated 891266 625860

Units generated per liter of Diesel oil 3.42 3.30

Average Cost per Unit (`) 11.22 10.25

2. Fuel (Furnace Oil/LDO):

Units (Ltrs.) 1335971 1058501

Total amount (`) 51938678 30306256

Average Rate/Unit (`) 38.88 28.63

B. AVERAGE CONSUMPTION (VALUE) PER UNIT OF PRODUCTION:

Electricity 0.345 0.277

Fuel (Furnace Oil/ LDO) 0.373 0.226

II - TECHNOLOGY ABSORPTION, ADOPTION AND INNOVATION:

The company manufactures IV Fluids and ophthalmic products using the FFS (Form-Fill-Seal) latest imported technology which is considered as the best technique world over. Further, At Ahlcon, our investment in Research and Development has been initiated to meet the challange of unmet medical needs. A strong new product pipeline, one that is continually replenished, will be our aim for the coming years as a means to achieve success as a Branded Pharmaceutical Company.

FORM - B

1. Specific area in which R&D carried out by the Company.

a. To develop new products in different dosage form for Domestic and International market.

b. To develop new analytical methods and their validation

c. Improvement of existing products with the objective to reduce cost, improve process and quality.

d. To develop new innovative products in novel drug delivery system

e. To develop new innovative products for different segments where currently products are not available

f. To develop ‘ready to use’ injectable dosage form

2. Benefits derived as results of the R&D process.

Six products are developed by R&D division and commercialized. Ten products are under different stages of development and a few more have been taken of for cost optimisation.

3. Future plan of action

Your Company has ambitious plans to invest further for enhancing its R&D capabilities.

4. Expenditure on Research and Development:` `

Capital 4,225,716.00

Recurring

Material 1,326,711.00

Personnel 3,886,617.00

Printing & Stationery 1,02187.00

5,315,515.00

Depreciation (R&D Division) 211,910.00 5,527,425.00

Total R&D Expenditure 9,753,141.00

As a percentage of total turnover 1.12%

III - FOREIGN EXCHANGE EARNINGS AND OUTGO:(` in lacs)

CURRENT YEAR PREVIOUS YEAR

Foreign Exchange earnings 1519.09 670.00

Foreign Exchange Outgo:

(a) Imports - Machinery spares

15.62 100.85

(b) Capital Goods 0.00 921.72

(c) Imports - Raw Materials

1459.11 854.54

(d) Bank charges 3.18 1.12

(e) Registration Charges 2.06 11.95

(f) Professional Charges – 25.64

(g) Business Promotion 35.78 –

1515.75 1915.82


Place: New Delhi Bikramjit AhluwaliaDate: 08.08.2012 Chairman


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MANAGEMENT DISCUSSION & ANALYSIS REPORT

To the Shareholders,

This report aims to be helpful to the Shareholders of the pharmaceutical and healthcare market and provide them with an in-depth analysis of the business prospects.

CAVEAT

This section of the 20th Annual Report has been included in adherence to the spirit enunciated in the Code of Corporate Governance approved by the Securities and Exchange Board of India. Shareholders are cautioned that certain data and information external to the Company is included in this section. Though these data and information are based on sources believed to be reliable, no representation is made on their accuracy or comprehensiveness. Further, though utmost care has been taken to ensure that the opinions expressed by the management herein contain their perceptions on most of the important trends having a material impact on the Company’s operations, no representation is made that the following presents an exhaustive coverage on and of all issues related to the same. The opinions expressed by the management may contain certain forward-looking statements in the current scenario, which is extremely dynamic and increasingly fraught with risks and uncertainties. Actual results, performances, achievements or sequence of events may be materially different from the views expressed herein. Shareholders are hence cautioned not to place undue reliance on these statements, and are advised to conduct their own investigation and analysis of the information contained or referred to in this section before taking any action with regard to their own specific objectives. Further, the discussion following herein reflects the perceptions on major issues as on date and the opinions expressed here are subject to change without notice.

The Company undertakes no obligation to publicly update or revise any of the opinions or forward-looking statements expressed in this section, consequent to new information, future events, or otherwise.

ECONOMIC BACKGROUND

According to the Economic Survey 2011-12, Indian economy is estimated to grow at 6.9% in 2011-12 and is expected to be around 7.6% in 2012-13. The growth has been broad based with a rebound in the agriculture sector which is expected to grow around 2.5%. Manufacturing and services sector also have registered impressive gains. The Survey reports that the industrial output growth rate was 3.9% while the services sector registered a growth rate of 9.4% in 2011-12.

In order to review the performance of Ahlcon in the financial year 2011-12, it will be relevant to comprehend the prevailing backdrop:

• Cumulativeexportsrecordedduring2011-12(April-January)stoodat USD 242.8 billion, registering a growth of 23.5%;

• Importsin2011-12(April-January)atUSD391.5billionregistereda growth of 29.4%;

• ForexreservesstoodatUSD292.6billionatendofJanuary2012;

• Services sectorgrewby9.4%, its share ingrossdomesticproduct(GDP) goes upto 59%

• Industrialgrowthisestimatedtobe3.9%,expectedtoimproveaseconomic recovery resumes;

• Foreigntradeperformancetoremainakeydriverofgrowth;

• Net capital flows stood at USD 41.1 billion in the first half of 2011-12, remained higher as compared to USD 38.9 billion in the first half of 2010-11;

• India’s external debt stock stood at USD 326.6 billion at endSeptember 2011;

• Indiaremainsamongthefastestgrowingeconomiesoftheworld.The country’s sovereign credit rating rose by a substantial 2.98% during the period 2007-12.

The year was also adversely affected by severe inflationary pressures, rising interest costs, volatile rupee-dollar ratio with a tendency to get weaker and currency concerns in almost all trading partner-countries.

Despite the macro strains and likely headwind of double-dip recessions in Europe and the US, India’s economic growth is expected to remain robust in 2012 and 2013, according to a United Nations’ annual economic report - World Economic Situation and Prospects 2012. They believe Indian economy is expected to grow between 7.7% and 7.9% this year, as per the report.

India is the second most preferred destination for foreign investors, according to the report ‘Doing Business in India’ by Ernst & Young. The report explores India’s key sectors, investment climate, funding scenario, laws and regulations, to aid companies that are doing, or plan to do business in India.

INDUSTRY PERSPECTIVE

After a brief period of sluggishness, the growth momentum in the domestic formulations market appears to be back on track. Structural demand drivers include:

• rising household income levels; increasing prevalence of lifestylerelated diseases;

• improvinghealthcareinfrastructure/deliverysystems;and

• rising penetration in smaller towns and rural areas continue tosupport long term growth

However, competitive pressures in the domestic market are likely to sustain as MNCs become aggressive and domestic companies leverage on their expanded field force. Potential regulatory interventions could put pressure or hurt pricing.

A large number of patent expirations continue to offer strong growth prospects for generic players in the developed markets. In the recent quarters, a peer set of seven leading generic players have reported a fairly strong revenue growth in the US driven by steadily expanding product


8


portfolio and exclusivities. While patent expiries are expected to peak out in 2012, the growth momentum would sustain as most Indian companies have a fairly spread product pipeline till 2014. While some companies have a healthy pipeline of First-to-File opportunities, a few others are likely to benefit from the launch of niche, limited competition products.

Significantly, the quality of filings by major Indian companies has also significantly improved over the years with complex molecules, non-orals (i.e. inhalers, injectables, oral contraceptive, ophthalmic etc.) and Para IV/FTFs forming increased share of the pipeline.

Globally, generics players however, continue to face competitive environment with increasingly crowded space for filing ANDAs (Abbreviated New Drug Application) and Para IV challenges and aggressive product life cycle management strategies of large innovator companies. Price erosion, especially through regulatory interventions, remains a foremost challenge in the European markets, while presence in limited competition product segments and over-the-counter (OTCs) segment offers some protection for margins.

Most developed markets continue to move away from branded generics to commoditised un-branded generics and lower margin tender based business. Amongst new frontiers, Japanese genericmarket offers largepotential, though there are significant challenges.

In the U.S., companies with a robust and selective product pipeline, presence in niche/complex segments and diversified therapies would continue to exhibit a relatively strong earnings profile. There would also be significant one-time upsides for companies, stemming largely from Para IV/FTF opportunities in US.

In the European markets, while companies may face pressure on profitability, volume growth would continue as healthcare reforms initiated by governments would push growth in generics. Emerging markets, with growing spend on healthcare and strong branded generic markets offer profitable growth opportunities for formulations business. Besides emerging markets, the gradually evolving generics opportunity in Japan,thesecond-largestmarketintheworld(afterUnitedStates)alsooffers the generic players an opportunity to pursue long-term investments.

On the CRAMS (Contract Research and Manufacturing Services) front, Indian players are focusing on providing services across the value chain spanning from development stage to commercial scale production. Relatively lower exposure to small biotech companies has been a risk mitigant during the downturn for these entities. With several drugs going off-patent and big pharma increasing their exposure to cost efficient sourcing locations, opportunities remain favourable for CRAMS players to provide developmental services and subsequently graduate to commercial scale production.

Key challenges facing the industry are potential implementation of the new pricing policy in India, increasing competitive pressure in the chronic

segments, aggressive approach such as authorized generics by innovators in the US and healthcare reforms in European markets are some of the factors that could impede profitability for pharma companies.

Patent expirations, weak pipeline quality and increasing focus by governments to reduce healthcare costs continue to exert pressure on innovator companies which supports outsourcing to low-cost nations. Despite challenges, leading Indian players continue to exhibit strong profitability indicators (excluding one-time instances like exclusivity-related aberrations or impact of foreign exchange fluctuations) and credit metrics. These strengths are also reflected in their strong credit profile.

Overall, outlook on the Indian pharmaceutical companies remains favourable as earnings growth will continue with companies benefitting from an expanding domestic market, strong growth potential in developed markets on the back of patent expiries and potential outsourcing opportunities. Investments including capital expenditure are likely to remain buoyant over the medium term. Balance sheets of major pharmaceutical companies continue to remain strong providing adequate room for fund raising. (Source: ICRA’s Indian Pharmaceutical Sector Industry update, March 2012).

OVERVIEW AHLCON

Ahlcon Parenterals (India) Limited is one of the leading manufacturing Company in the Indian Pharmaceutical Industry. The Company’s revenues are mainly from Contract Manufacturing and ethical sale of branded-generic and unbranded-generic manufactured pharmaceutical products. A further break down of pharmaceutical sales can be done as, Domestic formulations (comprising branded pharmaceuticals formulations sold in the domestic market), Contract manufacturing (comprising sourcing, manufacturing and supplying pharmaceutical formulations to giant pharma company under their brand name) and direct export to International market comprising exports of branded and generic manufactured pharmaceutical formulations. The operating costs primarily comprise raw and packing materials, purchase of finished goods, staff cost, selling and marketing expenses, manufacturing, Research & Development expenses and general overheads.

OPERATIONAL PERFORMANCE

AHLCON growth continued in 2011-12 in terms of value as well as volumes and performance is given below:

(` in lacs)

2011-12 2010-11 GROWTH

Total Income 8201.44 6550.59 25.20%

EBIDTA 1415.35 1162.71 21.73%

Profit before Tax (PBT) 723.44 648.28 11.59%

Net Profit after Tax (PAT) 499.93 429.21 16.47%

Earning per Share (EPS) 6.94 5.87 18.23%


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OVERVIEW INDIAN PHARMA INDUSTRY

The Indian pharmaceutical industry currently tops the chart amongst India’s science-based industries with wide ranging capabilities in the complex field of drug manufacture and technology. It ranks very high amongst all the third world countries, in terms of technology, quality and the vast range of medicines that are manufactured. It ranges from simple headache pills to sophisticated antibiotics and complex cardiac compounds, almost every type of medicine is now made in the Indian pharmaceutical industry.

It has expanded drastically in the last two decades. The Pharmaceutical and Chemical industry in India is an extremely fragmented market with severe price competition and government price control. The Pharmaceutical industry in India meets around 70% of the country’s demand for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and injectibles.

Advantages in India

The Indian Pharmaceutical Industry, particularly, has been the front runner in a wide range of specialties involving complex drugs’ manufacture, development and technology.

Competent workforce: India has a pool of personnel with high managerial and technical competence as also skilled workforce. Professional services are easily available.

Cost-effective chemical synthesis: Its track record of development, particularly in the area of improved cost-beneficial chemical synthesis for various drug molecules is excellent. It provides a wide variety of bulk drugs and exports sophisticated bulk drugs.

Legal & Financial Framework: India as a democracy have solid legal framework and strong financial markets.

Information & Technology: It has a good network of world-class educational institutions and established strengths for the same.

Globalisation: The country is committed to a free market economy and globalization. Above all, it has a 70 million middle class market, which is continuously growing.

Consolidation: For the first time in many years, the international pharmaceutical industry is finding great opportunities in India. The process of consolidation, which has become a generalized phenomenon in the world pharmaceutical industry, has started taking place in India.

OUTLOOK ON THREATS, RISK AND CONCERNS

Government Initiative

The Department of Pharmaceuticals has prepared a “Pharma Vision 2020” for making India one of the leading destinations for end-to-end drug discovery and innovation and for that purpose provides requisite

support by way of world class infrastructure, internationally competitive scientific manpower for pharma research and development (R&D), venture fund for research in the public and private domain and such other measures. The government plans to open 3,000 Jan Aushadhistores, which sell unbranded generic drugs at heavy discounts to branded drugs, in the next two years.

Pharmaceuticals Pricing:

One of the very serious concerns for the Pharmaceuticals division is Government regulation of prices of medicines and mounting pressure to reduce drug prices. The control extends two ways with the first being on the cost of inputs i.e raw materials, packing materials where the Government determines the fixation of prices and the second being the conversion cost and packing cost which is yet again decided by the Government on the basis of studies carried out by them. The domestic market is subject to price control under DPCO, 1995. More and more products are being added to the list of controlled products and thereby, the profit margins could be significantly affected. The Company manages its product portfolio, product mix and value added products, so as to move away, reduce and minimize the product weightage of drugs under price control.

Financial Risks:

With the high amount of imports of raw materials like granules and exports of finished goods transacted in foreign currencies the foreign exchange fluctuations have may an impact on the working of the Company. By way of hedging of foreign exchange transactions wherever found prudent, the Company minimizes the impact of foreign exchange loss. Due to the broad customer base in Pharmaceuticals segment, the Company is exposed to a low credit risk in its sales markets.

Weakness in domestic markets:

Fierce price competition has become the order of the day for the domestic pharma industry, which has restricted the ability of the domestic pharma market to grow in value terms. Due to its highly fragmented structure, the pricing power of the players has been pruned. The Indian markets have traditionally been and continue to remain price sensitive and premium pricing of products is extremely difficult to maintain .The new players in the industry are resorting to the cutthroat price competition. However, the company has been able to increase its product ranges and able to maintain a balance for its existing profit percentage.

Challenges

Over the past decade, pharmaceutical companies have entered a difficult period where shareholders, the market and regulators have created significant pressures for change within the industry. The core issues for most of drug companies are declining productivity of in-house R&D, patent expiration of number of block buster drugs, increasing legal and regulatory concern, and pricing issue. As a result larger pharmaceutical


10


companies are shifting to new business model with greater outsourcing of discovery services, clinical research and manufacturing.

Current global financial conditions and the threat of a broad recession accelerated the timetable for implementing transformational changes in global organizations, as the industry confronts lower corporate stock prices and an increasingly cost-averse customer. Leaders of the largest global pharmaceutical companies recognize the need for transformational change and will need to move swiftly to ensure sustained growth.

Transformations in the business model of larger pharmaceutical industry spell more opportunities for Indian pharmaceutical companies. Pharmaceutical production costs are almost 50 percent lower in India than in western nations, while overall R&D costs are about one-eighth and clinical trial expenses around one-tenth of western levels.

At the same time, the Indian Pharma Industry would have to contend with several challenges particularly the :

• Effectsofnewproductpatent

• Drugpricecontrol

• Regulatoryreforms

• Infrastructuredevelopment

• Qualitymanagementand

• Conformancetoglobalstandards.

(Sources: http://www.cci.in/pdf/surveys_reports/indias_pharmaceutical_industry.pdf)

INTERNAL CONTROL SYSTEMS AND ADEQUACY

Your company has reviewed internal controls and its effectiveness through the internal audit process. Internal audits were undertaken for every operational department and all major corporate functions under the direction of the Internal Audit department. The focus of these reviews are to Identify weakness and areas of improvement; Compliance with defined policies and processes; Safeguarding of tangible and intangible assets; Management of business and Operational risks; Compliance with applicable statutes and the Ahlcon’s Code of Conduct. The internal control system provide for well-documented policies, guidelines, authorisations and approval procedures. The Companies internal control activities is headed by President & Chief Executive-Operation, which carries out review and checks extensively each and every department throughout the year. The Internal Audit Department make a executive summary to the President & Chief Executive-Operation, Audit Committee and Board on periodically basis. To make such control procedures a foolproof system, outside independent agencies are also employed to make test audit. The prime objective of such audits is to test the adequacy and effectiveness of all internal controls laid down by the management and to suggest improvements.

HUMAN RESOURCES & INDUSTRIAL RELATIONS

AHLCON believes that its human assets give it the competitive edge.

The definition and institutionalization of work ethics has resulted in creating a transparent, empowered and ownership driven culture in the organization. All efforts are being taken to ensure that people processes are aligned to business processes through key processes such as Talent Acquisition, Performance Management, KRA and Talent Development. Internal Communication continues to be the key engine to motivate and engage employees at the work place.

At AHLCON, we have been continuously developing the internal potential of the employees from the present level to the desired level, to sustain the growth of our company. Regular and detailed performance appraisal system is in place to evaluate the performance of all employees and the necessary steps are taken to strengthen the areas which need improvements. Regular Training programmes, were organized for the employees. The Company regards its human resources amongst its most valuable assets and proactively reviews and evolves policies and processes to attract and retain its substantial pool of scientific, technical and managerial resources through a work environment that encourages initiative, provides challenges and opportunities.

Adequate facilities and opportunities are also being provided to the technical and professional staff to update themselves in the fast changing era of technologies. More experienced technical manpower’s are being taken at the senior and middle level to streamline the whole business process.

Corporate Social Responsibility:

At Ahlcon, a large part of its commitment to caring for life comprises its commitment to think and make a difference beyond the world of business into the world of the under privileged and needy. It is in keeping with this core ideology of making a difference to communities and being at the forefront of corporate social responsibility that the AHLCON has always offered financial aid. Ahlcon recognizes the important responsibility towards society and has constantly endeavored and embarked on spreading awareness about social responsibility.

CAUTIONARY STATEMENT

The statements in this Report, particularly which relate to Management Discussion and Analysis describing the Company’s objectives, plans, projections, estimates and expectations, may constitute “forward looking statements” within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied in the statement depending on the circumstances, which are beyond the control of the Company. The company assumes no responsibility in respect of forward looking statements which may be amended or modified in the future on the basis of subsequent developments, information or events.


Place: New Delhi Bikramjit AhluwaliaDated: 08.08.2012 Chairman


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REPORT ON CORPORATE GOVERNANCEThe best corporate governance practices have been adopted by Ahlcon Parenterals (India) Ltd. and the same is being continuously reviewed to ensure that they adhere to the latest corporate developments and conform to the best corporate governance ethics. In accordance with Clause 49 of the listing agreement with the stock exchanges, the details of compliance by the Company are as under:

1. BOARD OF DIRECTORS

The Board is having a non-executive Chairman and appropriate composition of Executive and Non- Executive Directors conforming to the specification provided in the Listing Agreement. All the Directors are equipped with variety of perspectives and skills, to ensure effectiveness of the Board, facilitating efficient discharge of duties and adding value in the context of the Company’s circumstances.

The composition and category of Board of Directors is as follows:

NAME OF DIRECTOR

CATEGORY BOARD MEETING

ATTENDED

ATTENDANCE AT THE LAST

AGM HELD ON 30/09/2011

NO. OF DIRECTORSHIP

IN OTHER COMPANIES

NUMBER OF COMMITTEE

MEMBERSHIP HELD IN OTHER COMPANIES

DATE OF APPOINTMENT/ RESIGNATION

CHAIRMAN MEMBER

Mr. Bikramjit Ahluwalia

Chairman (Promoter) Non Executive

5 Yes 3 NIL NIL Since Incorporation

Dr. Rohini Ahluwalia

Vice Chairperson (WTD) (Promoter & Executive)

5 NO 2 NIL NIL 01.04.1994, elevated as Vice Chairperson since 29.07.2006 and reappointed as WTD from 01.04.2009

Ms. Sudarshan Walia

Director (Promoter) Non Executive

5 NO 3 NIL 1 Since Incorporation

Mr. Arun Kumar Gupta

Independent Director Non Executive

5 Yes 3 2 2 15.03.1993

Prof. G.P. Talwar Independent Director Non Executive

4 Yes NIL NIL NIL 30.01.2002

Dr. S.S. Arora Independent Director Non Executive


Dr. S.C.L. Gupta Independent Director Non Executive


Mr. S.K. Sachdeva Non Executive Director 5 Yes 1 NIL NIL 30.01.2009

Five Board meetings of the Company were held during the year on the following dates:

I.14.05.2011, II.11.08.2011, III.11.11.2011, IV.12.11.2011, V.13.02.2012.

None of the Directors on the Board hold directorship in more than fifteen companies and no Director is a member of more than 10 committee and Chairman of more than 5 Committee (as specified in Clause 49), across all the Companies of which he/she is a Director. The Directors have made the necessary disclosures regarding directorship and committee positions in other companies.

2. BOARD AND ITS SUBORDINATE COMMITTEES

With a view to sub serve the functions specifically prescribed by

Clause 49 of the listing agreements; the company has constituted an Audit Committee, Remuneration Committee and Shareholders Grievance Committee. The following report depicts the composition of the committees and also the nature of functions performed by them during the year under report:

AUDIT COMMITTEE

The Board has constituted an Audit Committee on dated 30th April, 2002 and nominated Mr. Arun K. Gupta, an Independent Director and a Chartered Accountant by profession, as the Chairman of the Committee. The role and powers of the audit committee as stipulated by the Board are in accordance with the items listed in Clause 49 (II) (C) & (D) of the Listing Agreement and as per Section 292A of the Companies Act, 1956.


12


Four meetings of the Committee were held during the year on the following dates:

I.14.05.2011, II.11.08.2011, III.11.11.2011, IV.08.02.2012

The composition and other details of the Audit Committee are as follows.

NAME OF THE DIRECTOR

DESIGNATION NATURE OF DIRECTORSHIP

NO. OF MEETINGS

ATTENDED


Chairman Independent Director

4

Dr. S.S. Arora Member Independent Director

3

Dr. Rohini Ahluwalia

Member Vice Chairperson & CEO, WTD

4

Dr. S.C.L. Gupta

Member Independent Director

4

The President & Chief Executive-Operation, Statutory Auditors and the Internal Auditors of the Company were also invited to attend the Audit Committee meetings along with the Incharge of Finance (CFO) and Company Secretary. As per the need, other key functionaries of the company were also invited to attend the meetings.

REMUNERATION COMMITTEE

The Board has set up a Remuneration Committee to formalize company’s policy on remuneration packages of the executive directors and determine the same from time to time.

The composition and other details of the remuneration committee are as follows

NAME OF THE DIRECTOR

DESIGNATION NATURE OF DIRECTORSHIP

Prof. G. P. Talwar Chairman Independent Director


Member Independent Director

Dr. S. S. Arora Member Independent Director

There was no meeting held during the year 2011-12.

Details of remuneration paid to Directors for the year 2011-2012

The details of the remuneration paid to the Executive Directors during the year 2011-12 are as under:

EXECUTIVE DIRECTOR DR. ROHINI AHLUWALIA, (WTD, VC, CEO) (`)

Salary and allowances 24,00,000

Contribution to P.F 3,26,640

Perquisites 2,62,949

Gratuity –

Total 29,89,589/-

Note: Whole Time Director is covered under the Company’s gratuity scheme along with the other employees of the Company. The gratuity liability is determined for all the employees on overall basis by an independent actuarial valuation. The specific amount of gratuity for whole time directors cannot be ascertained separately and accordingly the same has not been included in the above note. There is no any fixed component or commission as performance linked incentives for the executive directors. No severance fee or notice period is specified. Presently, the company does not have a scheme for grant of Stock Options either to the Executive Directors or employees.

Dr. Rohini was holding 4,69,710 Equity Shares of the company, as on 31st March, 2012.

Statement of sitting fees paid to Non-Executive Director for the year 2011-12 and their shareholding position as on 31.03.2012.

NON EXECUTIVE DIRECTOR

SITTING FEES (`)

SHARE HOLDING

Mr. Bikramjit Ahluwalia NIL 2949312

Ms. Sudarshan Walia NIL 709610

Mr. Arun Kumar Gupta 50000 1277

Dr. S. S. Arora 40000 NIL

Dr. G .P. Talwar 25000 500

Dr. S. C. L. Gupta 50000 NIL

Mr. S. K. Sachdeva NIL NIL

The above figures are inclusive of fees paid for the attendance of the Committee meetings.

SHAREHOLDERS’/INVESTORS’ GRIEVANCE COMMITTEE

The Board of Directors of the Company has constituted a Shareholders’/Investors’ Grievance Committee, comprising of Prof. G. P. Talwar, Chairman, Dr. S. C. L. Gupta, Member, Dr. Rohini Ahluwalia, member, interalia approves issue of duplicate certificates and oversees and reviews all matters connected with the securities transfers. The Committee also looks into redressal of shareholders’ complaints like transfer of shares, non-receipt of balance sheet etc. The Committee oversees the performance of the Registrar and Transfer Agents, and recommends measures


13


for overall improvement in the quality of investor services. The Board of Directors has delegated the power of approving transfer of securities to the Company Secretary. The Board has designated Shri Ranjan Kumar Sahu,Company Secretary & Sr.Manager-Legal, as the Compliance Officer.

During the financial year 2011-12, 66 investors’ complaints were received including those received through the website :www.scores.gov.in, designated by SEBI for investor grievances, and all of them were resolved to the satisfaction of the shareholders.

BOARD PROCEDURE

The Chairman of the Board and the Company Secretary in consultation with other concerned persons in the senior management, finalise the agenda papers for the Board Meetings. All divisions/departments in the Company are encouraged to plan their functions well in advance, particularly with regard to matters requiring discussion /approval /decision in the Board/ Committee Meetings. All such matters are communicated to the Company Secretary in advance so that the same could be included in the Agenda for the Board Meetings. Agenda papers are circulated to the Directors, in advance and all material information is incorporated in the Agenda Papers for facilitating meaningful, informed and focused discussions at the meeting. Where it is not practicable to attach any document to the Agenda, the same are placed on the table at the meeting with specific reference to this effect in the Agenda.

4. COMPLIANCE

The Company Secretary while preparing the agenda, notes on agenda, minutes etc. of the meeting(s) and holding and conducting the meetings, is responsible for and is required to ensure adherence to all the applicable provisions of law including the Companies Act, 1956 and the Secretarial Standards recommended by the Institute of Company Secretaries of India, New Delhi.

5. CODE OF CONDUCT

A code of Conduct for the Board members and senior management of the company has been laid down by the Board and it is posted on the website of the company. The same has been circulated to all the concerned who have affirmed the compliance with it. The declaration by the vice Chairperson (CEO) to that effect part of this report as Annexure I.

6. CEO/CFO Certification

The CEO/CFO of the company have certified to the Board as required under Clause (V) of the Listing Agreement. A copy of the certificate is attached hereto.

7. GENERAL BODY MEETINGS

Annual General Meetings

Location and time for last 3 Annual General Meetings were as

follows:

Year, Location, Date and Time:

2008-09: Ahlcon Public School Auditorium, Mayur Vihar, Phase-I, Delhi-92 on 30th September, 2009 at 3.00 P.M.

2009-10: same as above 17th September, 2010 at 3.00 P.M.

2010-11: same as above 30th September, 2011 at 4.00 P.M.

II Special Resolutions passed in the previous three years

Year 2008-09:

One Resolution: One relating to Reappointment of Whole Time Director.

Year 2009-10:

One resolution relating to increase of managerial remuneration of Whole time director

Year 2010-11:

There was no special resolution passed during the year 2010-11.

III. Passing of postal ballot: No resolution was passed through postal ballot in the last year.

IV. No resolution is proposed to be conducted through postal ballot in the ensuing Annual General Meeting.

8. DISCLOSURES

a) Disclosures on materially significant related party transactions i.e. transactions of the Company of material nature, with its promoters, the directors or the management, their subsidiaries or relatives, etc. that may have potential conflict with the interests of the Company at large.

None of the transactions with any of the related parties were in conflict with the interest of the Company.

b) Details of non-compliance by the Company, penalties, and strictures imposed on the Company by Stock Exchanges or SEBI, or any statutory authority, on any matter related to capital markets, during the last three years.

No penalty or strictures had been imposed on the company by any regulatory authorities relating to capital markets in the last three years.

c) Whistle Blowing Policy Mechanism:

Considering the nature and size of the company, no such mechanism has been established as on date.


14


9. Means of Communication

The quarterly, half yearly and annual financial results of the company were published in leading national newspaper namely, Economics Times, Nav Bharat Times alongwith Business Standard/ The Pioneer in English and Veer Arjun, Hari Bhoomi in Hindi, Financial express etc. The same is displayed in the company’s website www.ahlconindia.com for public information in compliance with listing agreements.

10. THE MANAGEMENT DISCUSSION AND ANALYSIS REPORT FORMS PART OF THIS ANNUAL REPORT.

11. GENERAL SHAREHOLDER INFORMATION

11.1 20th Annual General Meeting

The 20th Annual General Meeting of the company will be held on Thursday, 27th day of September, 2012 at Ahlcon Public School Auditorium, Mayur Vihar, Phase-I, Delhi-91 at 3.00 P.M.

11.2 Tentative Financial Calendar for the year 2012-2013:

The financial year of the Company is April to March. Financial calender (tentative and Subject to change) of the financial year 2012-13 is as follows:

Quarterly Results:

First Quarter Results on or before 14th August, 2012

Second Quarter Results on or before 14th November, 2012

Third Quarter Results on or before 14th February, 2013

Fourth Quarter Results on or before 15th May, 2013

11.3 Date of Book closure

From 20th September, 2012 to 27th September, 2012 (both days inclusive), for the purpose of Annual General Meeting of the company.

11.4 Dividend payment date

The Board in its meeting held on dated 13.02.2012 has considered and paid an Interim dividend of 10% on the fully-paid up Equity Shares having a face value of ` 10 and paid ` 1 per equity share to those members whose names appeared in the Company’s Register of Members as on the opening hours of 25th February, 2012.

While approving the audited financial results for the year ended 31st March, 2012, the Board has not recommended any further dividend and has considered the interim dividend only as Final Dividend, on Equity Shares.

Further, the Board has approved for payment of final dividend only on the 6% Cumulative, Redeemable Preference Shares amounting to ` 1,35,000/- (excluding tax on dividend) for the year 2011-12, in

addition to ` 4,05,000/- (excluding tax on dividend) already paid as Interim Dividend on the said preference shares.

11.5 Listing of Equity Shares on Stock Exchanges at:

Mumbai,Calcutta,NewDelhiandJaipur.

Note: The Company has paid Annual Listing Fee 2012-2013 to each of these Stock Exchanges and their respective addresses have been given in the Annual Reports sent to member’s alongwith the notice of the 20th Annual General Meeting of the company.

11.6 a) Stock Code: Trading Symbol - Bombay Stock Exchange Ltd.: ‘524448’AhlconParen,DES:‘101237’.JSE:‘294’,CSE:‘11084’

b) Demat ISIN Numbers in NSDL & CDSL for Equity Shares: ISIN No. INE027C01011.

c) Stock Market Data (In ` per share) in the year in Bombay Stock Exchange Limited (BSE) with Month’s High and Low:

MONTH HIGH LOW

April, 2011 72.00 62.10

May, 2011 74.40 59.10

June,2011 70.5 58.05

July,2011 72.5 62.00

August, 2011 76.00 59.00

September, 2011 81.05 60.00

October, 2011 112.9 74.9

November, 2011 115.3 95.10

December, 2011 144.90 85.00

January,2012 130.00 105.00

February, 2012 307.95 129.00

March, 2012 427.15 197.65

11.7 Registrars and Transfer Agents:

M/s. MAS Services Ltd.T-34, 2nd Floor, Okhla Industrial Area, Phase-II,New Delhi-110 020, Tel. No.-011-26387281/82/83Fax No.- 011-26387384, E.mail: [email protected]

11.8 Share Transfer System

Presently, the share transfers which are received in physical form are processed and the share certificates returned within a period of 10 to 15 days from the date of receipt, subject to the documents being valid and complete in all respects. The share Certificates are despatched within a period of one month from the date of its receipt. All the demateralisation request received from the shareholders are confirmed within the specified period of 21 days from the date of its generation of DRN Number by the DPs and physically received in the office of the RTA.


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11.9 Distribution of share holders as at 31st March, 2012

SHARE OR DEBENTURE HOLDING OF NOMINAL VALUE

OF ` 10/- EACH

NUMBER OF SHARE

SHARE HOLDERS SHARE AMOUNT

` ` NUMBER % TO TOTAL (IN `) % TO TOTAL

Upto 5,000 398827 3673 92.426 3988270 5.539

5,001 10,000 106845 132 3.322 1068450 1.484

10,001 20,000 99819 68 1.711 998190 1.386

20,001 30,000 66677 27 0.679 666770 0.926

30,001 40,000 52922 15 0.377 529220 0.735

40,001 50,000 52325 11 0.277 523250 0.727

50,001 1,00,000 127011 18 0.453 1270110 1.764

1,00,001 and above 6295724 30 0.755 62957240 87.439

TOTAL 7200150 3974 100.000 72001500 100.000

Shareholding Pattern as at 31st March, 2012

SL. NO. CATEGORY NO OF SHARES HELD % OF SHAREHOLDING

1 Promoters 51,08,205 70.946

2 NRI’s, OCB’s etc. 4,407 0.061

3 Mutual Funds, Banks, FII’s – 0.000

4 Bodies Corporate 2,77,539 3.855

5 Indian Public 15,64,214 21.724

6 Clearing Member 2,45,785 3.414

TOTAL 72,00,150 100.00

11.10 Dematerialisation of Shares

95.12 % of the Company’s paid-up equity share capital has been dematerialised as on 31st March, 2012. Trading in Equity Shares of the Company is permitted only in dematerialised form as per notification issued by the Securities and Exchange Board of India (SEBI).

Liquidity

The shares of the company are being regularly traded in the Bombay Stock Exchange.

11.11 Plant Location- Bhiwadi

SP- 917 & 918, Phase-III, Bhiwadi, Dist- Alwar, Rajasthan-301019

11.12 Address for Correspondence

For share transfer, transmission and demateralisation request M/s. MAS Services Ltd. T-34, 2nd Floor, Okhla Industrial Area, Phase-II, New Delhi - 110 020 Ph: 26387281/82/83, Fax: 26387384, email: [email protected], website: www.masserv.com. Any

assistance relating to such matters or Annual Report may be taken up with Mr. Ranjan Kumar Sahu, Company Secretary & Sr. Manager-Legal at the registered office of the company at 4, Community Centre, Saket, New Delhi - 110 017, Telephone No. 011-40504562, Telefax Nos. 011-26852036, email: [email protected] or [email protected].

Annexure 1 to the Corporate Governance Report

To the ShareholdersAffirmation of compliance with Code of Business Conduct. I, Dr. Rohini Ahluwalia, Vice Chairperson (CEO) declare that the Board of Directors of the Company has received affirmation on compliance with the Code of Business Conduct for the period from 1st April, 2011 or date of their joining the Company, whichever is later to 31st March, 2012 from all members of the Board and employees under Senior Management Cadre.

Place : New Delhi Dr. Rohini AhluwaliaDate : 08.08.2012 Vice Chairperson (CEO)


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AUDITORS’ CERTIFICATEToThe members ofAhlcon Parenterals (India) Limited

We have examined the compliance of conditions of Corporate Governance by Ahlcon Parenterals (India) Limited for the year ended on March 31, 2012, as stipulated in Clause 49 of the Listing Agreement of the said company with Stock Exchange(s).

The Compliance of conditions of Corporate Governance is the responsibility of the management. Our examination was limited to procedures and implementation thereof, adopted by the company for ensuring the compliance of the conditions of the corporate Governance. It is neither an audit nor an expression of opinion of the financial statement of the Company.

In our opinion and the to the best of our information and according to the explanation given to us, we certify that the Company has complied

with conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement.

We state that no investor grievance is pending for a period of exceeding one month against the Company as per the records maintained by the Shareholders / Investor Grievance Committee.

We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company.

For ARUN K. GUPTA & ASSOCIATES Chartered Accountants

Firm Registration No. 000605N

SACHIN KUMARPlace: New Delhi PartnerDated: 08.08.2012 M.NO. 503204

Dated: 30.05.2012ToThe Board of Directors,Ahlcon Parenterals (India) Limited4, Community Centre, Saket,New Delhi-110017

We hereby certify that for the financial year ending 31st March, 2012, on the basis of the review of the financial statements and the cash flow statement and to the best of our knowledge and belief that:-

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

2. 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;

3. There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year ended on 31st March, 2012, which are fraudulent, illegal or violative of the Company’s code of conduct.

4. We accept responsibility for establishing and maintaining internal controls. We have evaluated the effectiveness of the internal control system of the company and we have disclosed to the auditors and the Audit Committee those deficiencies, of which we are aware, in the design of operation of the internal control systems and that we have taken the required steps to rectify these deficiencies.

5. We further certify that: -

a) There have been no significant changes in internal control during this year.

b) There have been no significant changes in accounting policies during this year.

c) There have been no instances of significant fraud of which we have become aware and involvement therein, of management or an employee having a significant role in the company’s internal control system.

Dr. Rohini Ahluwalia Rajeev Kumar WaliaVice Chairperson (CEO) Chief Financial Officer

CERTIFICATION BY THE CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER


17


AUDITORS’ REPORTTo,The Members of AHLCON PARENTERALS (INDIA) LIMITED.

1. We have audited the attached Balance Sheet of Ahlcon Parenterals (India) Ltd., as at 31st March, 2012 and also the Statement of Profit and Loss and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We have conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor’s Report) Order, 2003 (as amended) issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to above, we report that:

(i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit;

(ii) In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of those books;

(iii) The balance sheet, Statement of Profit and Loss and cash flow statement dealt with by this report are in agreement with the books of account;

(iv) In our opinion, the balance sheet, Statement of Profit and Loss and cash flow statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

(v) On the basis of written representations received from the directors, as on 31st March, 2012 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2012 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956;

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of the Balance Sheet, of the state of affairs of the company as at 31st March, 2012;

(b) in the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and

(c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.



SACHIN KUMARPlace : New Delhi PartnerDated : 30.05.2012 M.NO. 503204

ANNEXURE TO THE AUDITORS’ REPORT(REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE)


1. The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. The management during the year has physically verified the fixed assets and no material discrepancies have been noticed on such verification. In our opinion, the frequency of physical verification of fixed assets is reasonable having regard to the size of the Company and the nature of its business. In our opinion the company has not disposed of any substantial part of its fixed assets during the year and

the going concern status of the company is not affected.

2. The management has conducted physical verification of inventory at reasonable intervals. The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. The Company is maintaining proper records of inventory except for work in progress, which has been determined on the physical verification at the year-end. No material discrepancies in inventory were noticed on physical verification.


18


3. i. As informed to us, the Company has not granted any loan, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

ii. As informed to us, the Company has not taken any loan, from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

4. In our opinion and according to the information and explanations given to us, there is an adequate internal control commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services. Accordingly the issue of continuing failure to correct major weakness in internal control in these areas does not apply.

5. According to the information and explanations given to us, there are no transactions made in pursuance of contracts or arrangements

entered into the register maintained under Section 301 and exceeding the value of five lacs rupees.

6. The Company has not accepted any deposits from the public within the meaning of section 58A & 58AA of the Companies Act, 1956 and the rules made there under.

7. In our opinion, internal audit system of the company is commensurate with the size and nature of its business.

8. We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of Cost Records under Section 209 (1) (d) of the Companies Act, 1956 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have, however not made a detailed examination of the records.

9. i. According to the records of the company, the company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees’ State Insurance, Income-Tax, Sales-Tax, Service Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities. According to the information and explanations given to us, there are no undisputed amounts payable in respect of Wealth Tax, Sales Tax, Service Tax, Customs duty and Excise duty outstanding, as at 31st March, 2012 for a period of more than six months from the date they became payable except for Entry Tax (Rajasthan) ` 96,918/- for F.Y. 2007-08, ` 1,33,668/- for F.Y. 2008-09 ` 2,51,496/- for F.Y. 2009-10 ` 1,89,806/- for F.Y. 2010-11, ` 4,87,030/- for F.Y. 2011-12 and Income Tax of ` 2,26,864/-, ` 1,04,936/-, ` 43,334/- respectively for F.Y. 2000-01, F.Y. 2002-03 & F.Y. 2004-05.

ii. According to the records of the Company, the dues outstanding of Income Tax, Sales Tax, Customs Duty, Wealth Tax, Excise Duty and Cess on account of any dispute are as under:

NATURE OF STATUTE

NATURE OF DUES AMOUNT (`) PERIOD TO WHICH AMOUNT RELATES

FORUM WHERE DISPUTE IS PENDING

Central Excise Penalty on Service Tax on Transport Services

113189/- April 05 to September 05 RajasthanHighCourtBench,Jaipur

Central Excise Excise Duty on Physician Sample

16,67,708/- April 05 to March 06 Customs, Excise and Service Tax appellate Tribunal, New Delhi

Central Excise Service Tax on Foreign based services

9,01,021/- April 06 to August 09 Customs, Excise and Service Tax appellate Tribunal, New Delhi

Penalty on above 9,01,021/- -do-Penalty on above 5,000/- -do-

Central Excise Cenvat Credit on Photocopy of bill of entry

6,08,056/- 2009-2010 JointCommissioner,Jaipur,Rajasthan

Central Excise Service Tax on Foreign based services

1,15,342/- April 10 to March 11 Asst. Commissioner, Bhiwadi, Rajasthan

Central Sales Tax Demand against non submission of forms

14,19,780/- 2007-2008 to 2009-2010 Commercial Tax Officer, Bhiwadi, Rajasthan

Central Sales Tax Interest on Sales Tax 3,47,427/- 1999-2000 to 2009-2010 Commercial Tax Officer, Bhiwadi, Rajasthan


19


10. The Company has no accumulated losses at the end of the financial year and it has not incurred any cash losses in the current and immediately proceeding financial year.

11. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to financial institutions or bank.

12. According to the information and explanation given to us and based on the documents and records produced to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion and according to the information and explanation given to us, the nature of activities of the Company does not attract any special statute applicable to chit fund, nidhi / mutual benefit fund and Societies.

14. The Company has not dealt / traded in shares, securities, debentures and other investments.

15. We have been informed that the company has not given any guarantee for loans taken by others from bank & financial institutions.

16. Based on information and explanations given to us by the management the term loans were applied for the purpose for which loans were obtained.

17. According to the information & explanation given and on the basis of overall examination of balance sheet of the company in our opinion no short term funds have been used for long term investments during the year.

18. During the year the company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act.

19. During the period covered by our audit, the Company has not issued any debentures.

20. The company has not raised any money through a public issue during the year.

21. Based upon the audit procedures performed by us for expressing our opinion on these financial statements and as per information & explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.



SACHIN KUMARPlace : New Delhi PartnerDated : 30.05.2012 M.NO. 503204


20


BALANCE SHEET AS AT 31ST MARCH, 2012

PARTICULARS NOTE AS AT 31ST MARCH, 2012

AS AT 31ST MARCH, 2011

` ` ` `

EQUITY AND LIABILITIES

Shareholders’ Funds

Share Capital 1 81,001,500 81,001,500

Reserves and Surplus 2 340,995,614 421,997,114 299,998,339 380,999,839

Non-Current Liabilities

Long Term Borrowings 3 70,144,447 113,333,636

Deferred Tax Liabilities (net) 4 63,800,424 63,266,016

Long Term Provisions 5 3,910,368 137,855,239 2,556,037 179,155,689

Current Liabilities

Short Term Borrowings 6 116,435,779 91,147,070

Trade Payables 7 67,586,395 55,862,662

Other Current Liabilities 8 79,689,902 85,194,533

Short Term Provisions 9 7,362,291 271,074,367 13,894,473 246,098,738

TOTAL 830,926,720 806,254,266

ASSETS

Non Current Assets

Fixed assets

Tangible Assets 10 496,840,137 499,891,725

Intangible Assets 10 2,955,325 3,505,666

Capital Work-In-Progress 10 31,903,177 24,921,785

Long-Term Loans and Advances 11 24,245,088 17,958,527

Other Non-current Assets 12 4,194,084 560,137,811 3,585,184 549,862,887

Current Assets

Inventories 13 97,370,459 76,202,966

Trade Receivables 14 129,980,519 145,693,414

Cash and Cash Equivalents 15 19,036,958 12,054,682

Short Term Loans and Advances 16 15,121,820 18,539,847

Other Current Assets 17 9,279,153 270,788,909 3,900,470 256,391,379

TOTAL 830,926,720 806,254,266

Significant Accounting Policies Notes on Financial Statements

(1 to 37)

As per our report of even dateFor Arun K. Gupta & AssociatesChartered AccountantsFirm Registration No : 000605N

Sachin Kumar Bikramjit Ahluwalia Dr. Rohini AhluwaliaPartner Chairman Vice Chairperson (CEO)M. No: 503204

Place : New Delhi Rajeev Kumar Walia Ranjan Kumar SahuDate : 30-05-2012 Chief Financial Officer Company Secretary


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PARTICULARS NOTE YEAR ENDED 31ST MARCH, 2012

YEAR ENDED 31ST MARCH, 2011

` ` ` `

INCOME

Revenue from Operations 18 866,407,011 677,380,976

Less: Excise duty 18 69,379,425 53,044,901

Revenue from Operations (Net) 797,027,586 624,336,075

Other Income 19 9,077,891 5,402,788

Total Revenue 806,105,477 629,738,863

EXPENDITURE

Cost of Materials Consumed 20 310,571,323 233,374,008

Purchases of Stock-in-Trade 20 144,926 11,897,288

Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade

21 (13,893,868) (13,422,761)

Employee Benefits Expense 22 130,403,511 104,423,500

Finance Costs 23 36,991,401 24,708,975

Depreciation and Amortisation Expense 10 33,959,591 28,931,582

Other Expenses 24 235,585,116 174,998,303

Total expenses 733,762,000 564,910,895

Profit Before Tax 72,343,477 64,827,968

Tax Expenses:

Current Tax Expense for current year 21,657,570 13,239,564

Less: MAT Credit Entitlement (585,061) 21,072,509 (7,302,775) 5,936,789

Current Tax Expense Relating to Prior years 743,492 –

Net Current Tax Expense 21,816,001 5,936,789

Deferred Tax 534,408 15,970,299

22,350,409 21,907,088

Profit for the Year 49,993,068 42,920,880

Earnings per Equity Share of - Face Value of ` 10 /- each

Basic 25 6.94 5.87

Diluted 6.94 5.87

Significant Accounting Policies Notes on Financial Statements

(1 to 37)




STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED 31ST MARCH, 2012


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Significant Accounting Policies

1 Nature of Operations

Ahlcon Parenterals (India) Limited is the manufacturer of Pharmaceutical Intravenous Fluids and Opthalmics / Ear drops.

2 Statement of Significant Accounting Policies

a. Basis of Accounting

i The Accounts of the Company are prepared under the historical cost convention. For recognition of Income and Expenses, accrual basis of accounting is followed except for claims not accepted / acknowledged, which are accounted for on cash basis on account of uncertainties.

ii Gratuity and Leave encashment liability is accounted for on accrual basis as per the Acturial Valuation determined, at the end of accounting year.

iii Cenvat benefit on the Raw Material stocks is accounted for on the basis of production plan for excisable and non - excisable products.

b. Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Sale of Goods

Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer. It includes excise duty but excludes sales return, volume discount and value added tax / sales tax. Excise Duty deducted from turnover (gross) is the amount that is included in the amount of turnover (gross) and not the entire amount of liability that arose during the year.

Revenue from the sale / Contract Packaging of goods is recognised upon dispatch of goods to the customers and shown net of sales tax and excise duty.

Export Benefit

Export Benefits constituting import duty benefits under Duty Exemption Pass Book (DEPB) / Duty Draw Back are accounted for on accrual basis.

Interest

Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

c. Fixed Assets

Fixed Assets have been shown at cost of acquisition, comprising of purchase price (net of rebates and discounts) levies and any other directly attributable cost and indirect expenditure for bringing the asset to its working condition for the intended use less accumulated depreciation

d. Depreciation

i. Depreciation on all completed Fixed Assets is provided on the Straight Line Method in accordance with the Schedule XIV of Companies Act, 1956.

ii. Leasehold land is amortized over the period of lease.

iii. Software costs relating to acquisition and development are capitalized in the year of purchase and amortized on a straight-line basis over its useful life not exceeding 10 years.

iv. Improvement in Building is written off in three equal annual installments.

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2012


23



e. Borrowing Cost

Borrowing costs specifically relatable to acquisition of fixed assets are capitalized as part of the cost of fixed assets. Other borrowing costs are charged to revenue.

f. Inventories

Inventories are valued as follows :

Finished goods and Work in Progress : Lower of cost and net realizable value.

Scrap : Net Realisable value

Raw Material, Stores and Spare and others : Lower of cost and net realizable value. However materials and other items held for use in the production of inventories are not written down below cost if the finished products, in which they will be incorporated, are expected to be sold at or above cost. Cost of Raw materials is determined on a monthly moving weighted average basis and cost of stores and spares is determined on transaction moving weighted average.

g. Foreign Currency Transactions

The monetary items of foreign currency transactions (not covered under forward contracts) are converted into Indian Rupees at the exchange rates prevailing on the date of Balance Sheet. The Exchange difference on such conversion is adjusted in Income/Expenditure. Foreign Currency transactions are recognized at the exchange rate prevailing at the time of transaction.

In respect of Forward Exchange Contract entered into by the Company, the difference between the contracted rate and the rate at the date of transaction is recognized as gain or loss over the period of contract. Exchange differences on such contracts are recognized in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or expense for the year.

h. Share issue expenses are amortised in 5 yearly equal installments.

i. Current Tax is being provided as per the prevailing provisions of Income Tax Act, 1961.

j. In accordance with AS 14 on ‘Disclosure of Revenue from Sales Transactions’ issued by Institute of Chartered Accountants of India, excise duty on turnover has been reduced from turnover in Profit & Loss Account.

k. Deferred Taxation

Deferred tax resulting from timing differences between book and tax profits is accounted for under the liability method, at the substantively enacted rate of tax on the Balance Sheet date, to the extent that the timing differences are expected to crystallize / capable of reversal as deferred tax charge / benefit in the Profit and Loss Account and as deferred tax liability / asset in the Balance Sheet.

l. Impairment of Assets

Consideration is given at each balance sheet date to determine whether there is any indication of the impairment / loss of the fixed assets. If any indication exists, an asset recoverable amount is estimated and impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

m. Retirement and other Employee Benefits

Gratuity liability is defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year.

Retirement benefits in the form of Provident Fund (where contributed to the Regional PF Commissioner) is a defined contribution scheme


24


and the contributions are charged to the Profit and Loss Account of the year when the contributions to the fund are due. There are no other obligations other than the contribution payable to the respective authorities.

Short term compensated absences are provided for on based on estimates. Long term compensated absences are provided for based on actuarial valuation carried by an actuary as at the end of the year.

Actuarial gains/losses are immediately taken to Profit and Loss account and are not deferred.

n. Segment Reporting

1. Business Segment: In the opinion of the management, there is only one reportable segment i.e. manufacturing of pharmaceuticals products, as envisaged by Accounting Standard 17 ‘Segment Reporting’, prescribed by the companies (Accounting Standards) Rules, 2006.

2. Geographical Segment: The Company sells its products to various customers within the country and also exports to other countries. Considering size and proportion of exports to local sales, the Company considers sales made with in the country and exports as different geographical segments.

Accordingly, Information about secondary business segment have been considered for disclosure as follows:

For Sales Revenue

• SalesrevenuewithinIndiaincludesSalestocustomerswithinIndia.

• SalesrevenueoutsideIndiaincludesSalestocustomerslocatedoutsideIndia.

For Carrying Amount of Geographical Segment Assets (i.e. Debtors)

Carrying amount receivables / (Advance from Customers) of Geographical segmented assets are as follows:

• ReceivableswithinIndia

• ReceivablesoutsideIndia

• SegmentLiabilitiesoutsideIndia(AdvancefromCustomers)

For Common Fixed Assets

The Company has common fixed assets for producing goods for domestic market and Overseas Market. Hence, segregated figures are not furnished.



25


PARTICULARS AS AT 31ST MARCH, 2012 (`)

AS AT 31ST MARCH, 2011 (`)

NOTE 01 – SHARE CAPITAL

Authorised Share Capital

1,10,00,000 Equity Shares of ` 10/- each 110,000,000 110,000,000

70,00,000 Preference Shares of ` 10/- each 70,000,000 70,000,000

180,000,000 180,000,000

Issued, Subscribed and fully paid up

72,00,150 Equity Shares of ` 10/- each 72,001,500 72,001,500

9,00,000, 6% Redeemable Cumulative Preference Shares of ` 10/- each fully paid up

9,000,000 9,000,000

Total Share Capital 81,001,500 81,001,500

a) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:

AS AT 31ST MARCH, 2012 AS AT 31ST MARCH, 2011

Number of shares

` Number of shares

`

Equity Shares

At the beginning of the year 7,200,150 72,001,500 7,200,150 72,001,500

Add: Shares issued during the year – – – –

Outstanding at the end of the period 7,200,150 72,001,500 7,200,150 72,001,500

6% Redeemable Cumulative Preference Shares

At the beginning of the year 900,000 9,000,000 900,000 9,000,000

Add: Shares issued during the period – – – –

Outstanding at the end of the year 900,000 9,000,000 900,000 9,000,000

b) Terms / rights / preferences and restrictions attached to the each class of shares

(i) Terms / rights attached to Equity Shares

The Company has fully paid up equity shares having a par value of ` 10/- per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupee.

During the year ended March 31, 2012, the amount of final dividend for 2010 -11 distributed to equity shareholders was ` 1.50 per share (previous year ̀ 1.50 per share for 2009-10). Further during the year Interim dividend for 2011-12 was also distributed to equity share holder at ` 1.00 per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. This distribution will be in proportion to the number of equity shares held by the shareholders.

(ii) Terms / rights attached to Preference Shares

The Company has fully paid up 6% Redeemable cumulative preference shares having a par value of ` 10/- per share. Each holder of redeemable preference shares entitled to one vote per share only on resolutions placed before the company which directly affect the rights attached to redeemable preference shares. The Company declares and pays preference dividend in Indian rupee.

The preference shares are non-convertible and non - participatory and are redeemable at par by way of a put and call options at any time after a period of two years from the date of their allotment i.e. 28.10.2006 by giving one month prior notice either by the Company or by preference shareholders.

During the year ended March 31, 2012, neither company nor preference shareholders have exercised the call / put option.



26


c) Details of shares held by each shareholder holding more than 5% shares in the Company

CLASS OF SHARES / NAME OF SHAREHOLDER AS AT 31ST MARCH, 2012 AS AT 31ST MARCH, 2011

Number of shares held

% holding in that class of

shares

Number of shares held

% holding in that class of

sharesEquity Shares

Bikramjit Ahluwalia 2,949,312 41 2,941,312 41

Sudarshan Walia 709,610 10 709,610 10

Rohini Ahluwalia 469,710 7 469,710 7

Redeemable Preference Shares

Chander P. Sharma and Sneh L. Sharma 430,000 48 430,000 48

Sneh L. Sharma and Chander P. Sharma 470,000 52 470,000 52



NOTE 02 – RESERVES AND SURPLUS

Capital Reserve

State Subsidy on Fixed Capital Investment 1,721,246 1,721,246

Surplus on Reissue of Forfeited Shares 33,000 1,754,246 33,000 1,754,246

Capital Redemption Reserve 29,000,000 29,000,000

General Reserve

Balance as per last financial statement 41,000,000 35,000,000

Add: Transferred from Surplus in Statement of Profit and Loss 6,000,000 47,000,000 6,000,000 41,000,000

Surplus / (Deficit) in Statement of Profit and Loss

Balance as per last financial statement 228,244,095 204,546,913

Add: Profit for the year 49,993,068 42,920,880

Less: Appropriations

Interim Dividend distributed to Equity Shareholders 7,200,150 –

Final Dividend Proposed to be distributed to Equity Shareholders – 10,800,225

Interim Dividend distributed to Preference Shareholders 405,000 –

Dividend proposed to be distributed to Preference Shareholders 135,000 540,000

Tax on Interim Dividend 1,233,745 –

Tax on Final Dividend 21,900 1,883,475

Transferred to General Reserve 6,000,000 6,000,000

Net Surplus in Statement of Profit & Loss 263,241,368 228,244,093

Total Reserves and Surplus 340,995,614 299,998,339

NOTE 03 – LONG-TERM BORROWINGS

From Banks (Secured)

Term Loans 70,144,447 112,844,421

Vehicle Loan – 489,215

Total Long-Term Borrowings 70,144,447 113,333,636



27


a) Term loans from Punjab & Sind Bank are secured by way of first and exclusive charge on the specific machinery purchased against the terms loans and on other fixed assets including hypothecation and mortgage on land & building of the company as well as on all the current assets of the company. The said loans is further secured by the personnel guarantee of the Chairman and two promoter directors in their individual capacity. The term loans bears floating interest at the rate, base rate plus 2.75% p.a. The loans are repayable in quarterly installments of ` 28.23 lacs and ` 78.75 lacs respectively along with interest.

b) Vehicle loan is secured by hypothecation of specific vehicle acquired out of proceeds of the loan and carries interest at the rate 8.75% p.a.



NOTE 04 – DEFERRED TAX LIABILITY

Deferred Tax Liabilities

Fixed Assets : Impact of difference between tax depreciation and depreciation / amortisation charged for financial reporting

70,893,187 68,329,213

Gross Deferred Tax Liability 70,893,187 68,329,213

Deferred Tax Assets

Effect of expenditure debited to statement of profit and loss in the current year but allowed for tax in the following years.

7,092,763 5,063,197

Gross Deferred Tax Assets 7,092,763 5,063,197

Net Deferred Tax Liability / (Assets) 63,800,424 63,266,016

Deferred Tax Liability / (Assets) for the year 534,408 15,970,298

NOTE 05 – LONG-TERM PROVISIONS

Provision for Leave Encashment 3,910,368 2,556,037

Total Long Term Provisions 3,910,368 2,556,037

NOTE 06 – SHORT-TERM BORROWINGS

Secured Working Capital Facility from Bank 116,435,779 91,147,070

Total Short-Term Borrowings 116,435,779 91,147,070

Note

(i) Working Capital facility from Punjab & Sind Bank is secured by way of first exclusive hypothecation charge on entire current assets (both present & future) including stock of raw materials, finished goods, work in progress, stores & spares etc and assignment of entire book debts of the Company and further secured by way of equitable mortgage of industrial land & building of the company at its Bhiwadi works, Rajasthan, and the personal guarantee of the Chairman and two promoter directors in their individual capacity.

(ii) The Working Capital facility from Punjab & Sind Bank is repayable on demand and carries interest at base rate plus 2.75% p.a.

NOTE 07 – TRADE PAYABLES

Trade Payables

Total Outstanding Dues of Micro, Small & Medium Enterprises (Refer Note 27)

2,188,976 462,027

Total Outstanding Dues other than Micro, Small & Medium Enterprises 65,397,419 55,400,635

Total Trade Payables 67,586,395 55,862,662



28




NOTE 08 – OTHER CURRENT LIABILITIES

Current Maturities of Term Loans 42,793,500 42,793,500

Current Maturities of Vehicle Loan 483,486 535,859

Interest Accrued and Due on Borrowings 1,037,810 3,588,282

Unpaid Dividend 1,708,384 1,723,334

(To be transferred to Investor Education & Protection Fund as and when due)Due to Statutory Authorities 7,160,421 6,179,181

Trade / Security Deposits 660,000 812,000

Payables for Capital Goods 1,734,147 7,640,457

Advances from Customers 17,254,779 14,439,896

Due to Director 99,554 21,000

Expenses Payable 6,757,821 7,461,024

Total Other Current Liabilities 79,689,902 85,194,533

NOTE 09 – SHORT-TERM PROVISIONS

For Employee Benefits:

Provision for Bonus 3,084,818 2,694,506

Provision for Leave Encashment 508,537 954,335

Provision for Gratuity 1,092,615 1,614,680

Total Provision for Employee Benefits 4,685,970 5,263,521

Others:

Provision for Taxation (Net of Advance Tax Payments ` 1,91,38,149/- Previous Year ` 1,78,32,312/-)

2,519,421 (4,592,748)

Provision for Proposed Equity Dividend – 10,800,225

Provision for Proposed Preference Dividend 135,000 540,000

Provision for Tax on Proposed Dividend 21,900 1,883,475

Total Others 2,676,321 8,630,952

Total Short-Term Provisions 7,362,291 13,894,473



29

Ahlcon Parenterals (India) Ltd. “20th Annual Report 2011–12”SC

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30




NOTE 11 – LONG-TERM LOANS AND ADVANCES

Unsecured Considered Good

Capital Advances 2,121,966 965,410

Loans and Advances to Employees 783,131 274,501

Advance Income Tax (Net of Provisions) 13,452,155 9,415,841

MAT Credit Entitlement 7,887,836 7,302,775

Total Long Term Loans & Advances 24,245,088 17,958,527

NOTE 12 – OTHER NON-CURRENT ASSETS

Unsecured Considered Good

Security Deposits

Earnest Money Deposits 400,000 1,000,000

Other Security Deposits 3,794,084 2,585,184

Total Other Non - Current Assets 4,194,084 3,585,184

NOTE 13 – INVENTORIES (AT LOWER OF COST AND NET REALISABLE VALUE)

Raw Materials 26,778,441 22,158,148

Work-In-Progress 13,251,079 6,118,319

Finished Goods (other than those acquired for Trading) 31,946,074 25,596,859

Stock-In-Trade (acquired for Trading) 22,108 223,511

Stores and Spares 12,685,428 12,274,183

Scrap 662,128 48,832

Packing Materials 15,749,638 13,681,615

Gross total 101,094,896 80,101,467

Less Provision for Obsolete Stock 3,724,437 3,898,501

Total Inventory 97,370,459 76,202,966

NOTE 14 – TRADE RECEIVABLES

Receivables for a Period Exceeding Six Months from the date they are Due for PaymentUnsecured, Considered Good 4,716,213 8,441,629

Considered Doubtful 8,611,846 5,253,814

13,328,059 13,695,443

Less: Provision for Doubtful 8,611,846 5,253,814

4,716,213 8,441,629

Other Receivables

Unsecured, Considered Good 125,264,306 137,251,785

Total Receivable 129,980,519 145,693,414



31




NOTE 15 – CASH AND BANK BALANCE

Cash and Cash Equivalents

Cash on Hand 117,969 222,151

Balances with Banks

In Current Accounts 13,159,184 5,796,548

Unpaid Dividend Accounts* 1,708,384 1,723,334

Deposits with Original Maturity of - Less than 3 Months – –

Total Cash and Cash Equivalents 14,985,537 7,742,033

Other Bank Balances

Deposits with Original Maturity of More than 3 Months but Less than 12 Months (Pledged as Margin Money)

4,051,421 4,312,649

Total Other Bank Balances 4,051,421 4,312,649

Total Cash and Bank Balances 19,036,958 12,054,682

Notes: *These balances are not available for use by the company as they represent corresponding Unpaid Dividend Liabilities.

NOTE 16 – SHORT-TERM LOANS AND ADVANCES

Advances Recoverable in Cash or in Kind or for value to be Received (Unsecured, Considered Good) Earnest Money Deposits

Unsecured Considered Good 889,000 857,233

Considered Doubtful 618,233 –

1,507,233 857,233

Less: Provision for Doubtful 618,233 –

889,000 857,233

Advance to Suppliers

Unsecured Considered Good 836,072 5,117,851

Considered Doubtful 310,029 203,942

1,146,101 5,321,793

Less: Provision for Doubtful 310,029 203,942

836,072 5,117,851

Security Deposits 1,335,190 900,538

Loans and Advances to Employees 1,779,617 576,900

Prepaid Expenses 610,122 660,110

Balances with Government Authorities 9,671,819 10,427,215

Total Short Term Loans & Advances 15,121,820 18,539,847

NOTE 17 – OTHER CURRENT ASSETS

Interest Receivable 495,600 343,279

Export Benefit Receivable 8,783,553 3,557,191

Total Other Current Assets 9,279,153 3,900,470



32


PARTICULARS FOR THE YEAR ENDED 31ST MARCH, 2012 (`)

FOR THE YEAR ENDED 31ST MARCH, 2011 (`)

NOTE 18 – REVENUE FROM OPERATIONS

Sales 552,359,674 401,676,912

Sale Contract Packaging 290,062,760 257,802,915

Other Operating Revenues 23,984,577 17,901,149

866,407,011 677,380,976

Less: Excise Duty 69,379,425 53,044,901

Total 797,027,586 624,336,075

Excise duty on sales amounting to ` 6,92,35,747/- (previous year ` 5,30,44,901/-) has been reduced from sales in statement of profit & loss.

Excise duty differential of ` 92,113/- on increase in stock in the current year and of ` 2,05,562/- on increase in stock in the previous year, has been shown under the manufacturing expense in note 24.

Detail of Goods Sold

Manufactured Goods

IV Infusion 387,789,160 249,638,288

Opthalmics 76,653,708 91,873,712

Injection 40,238,551 6,619,474

Respiratory 46,359,102 40,017,827

Total - Sale of Manufactured Goods 551,040,521 388,149,301

Contract Packaging

IV Infusion 138,764,222 82,634,506

Opthalmics 116,769,088 97,405,955

Injection 10,005,372 9,896,937

Respiratory 24,524,078 30,450,830

Total Sale of Contract Packaging 290,062,760 220,388,228

Traded Goods

Ahlmo Eye Ointment 356,282 193,783

Eye Look Capsule 962,874 1,061,042

IV Fluids – 12,272,786

Total Traded Goods 1,319,156 13,527,611

iii) Other Operating Revenue Comprise:

Sale of Scrap 15,036,123 12,869,259

Duty Drawback and Other Export Incentives 8,715,287 5,031,890

Others 233167 –

Total - Other Operating Revenues 23,984,577 17,901,149



33




NOTE 19 – OTHER INCOME

Interest Income on Fixed Deposits 395,035 827,534

Foreign Exchange Fluctuation Gain 3,257,480 (564,103)

Rent 36,000 36,000

Profit on Sale of Fixed Assets 2,430 33,636

Liabilities / Provisions Written Back 4,706,875 3,552,018

Miscellaneous Income 680,071 1,517,703

Total Other Income 9,077,891 5,402,788

NOTE 20 – COST OF MATERIALS CONSUMED

Raw Material

Opening stock 21,022,148 13,702,493

Add: Purchases 219,911,205 171,470,959

240,933,353 185,173,452

Less: Closing Stock 24,772,630 21,022,148

Raw Material Consumed 216,160,723 164,151,304

Packing Material Consumed 94,410,600 69,222,704

Total Cost of Material Consumed 310,571,323 233,374,008

Details of Raw Materials

PE Granules 157,525,823 113,802,225

Dextrose 32,425,986 21,133,260

Chemicals and Others 26,208,914 29,215,819

Total 216,160,723 164,151,304

Details of Purchase of Traded Goods

Ahlmo Eye Ointment – 176,789

Eye Look Capsules 144,926 301,412

IV Fluids – 11,419,087

Total 144,926 11,897,288

NOTE 21 – CHANGES IN INVENTORIES OF FINISHED GOODS, WORK-IN-PROGRESS AND STOCK-IN-TRADE

Inventories at the End of the Year:

Finished Goods 31,946,074 25,596,859

Work-In-Progress 13,913,207 6,167,151

Stock-In-Trade 22,108 223,511

45,881,389 31,987,521

Inventories at the beginning of the Year:

Finished Goods 25,596,859 12,266,976

Work-In-Progress 6,167,151 6,227,714

Stock-In-Trade 223,511 70,070

31,987,521 18,564,760

Net Increase / (Decrease) in Inventories 13,893,868 13,422,761



34


Details of Finished Goods -

IV Infusion 26,900,326 17,181,470

Opthalmics 4,101,738 6,185,921

Injection 580,482 514,150

Respiratory 363,493 1,715,318

Total 31,946,039 25,596,859

Details of Work-In-Progress

IV Infusion 3,725,372 3,219,532

Opthalmics 3,199,848 1,598,223

Injection 6,539,138 823,794

Respiratory 448,884 525,602

Total 13,913,242 6,167,151

Details of Stock-In-Trade

Ahlmo Eye Ointment 3,063 112752

Eye Look Capsule 19,045 110759

Total 22108 223511

NOTE 22 – EMPLOYEE BENEFIT EXPENSES

Salaries, Wages and Bonus 114,530,102 91,954,874

Contributions to Provident and other Funds 10,473,325 8,064,080

Staff Welfare Expenses 5,400,084 4,404,546

Total Employee Benefit Expenses 130,403,511 104,423,500

NOTE 23 – FINANCE COST

Interest Expense on:

Term Loans 14,728,905 13,606,166

Working Capital 17,542,939 8,131,032

Others 2,960,562 774,332

Other Borrowing Cost 579,075 1,420,113

Bank Charges 1,179,921 777,332

Total Finance Cost 36,991,401 24,708,975





35




NOTE 24 – OTHER EXPENSES

Manufacturing Expenses

Consumption of Stores and Spares 25,416,908 29,194,365

Increase / (Decrease) of Excise Duty on Inventory 92,113 205,562

Power and Fuel 100,016,305 67,654,901

Testing Fees 2,860,500 4,128,816

Repairs and Maintenance - Machinery 4,331,073 2,005,593

Sub Total (A) 132,716,899 103,189,237

Selling and Distribution Expenses

Freight and Forwarding 28,856,796 18,939,008

Sales Commission 5,448,245 7,034,999

Sales Discount 2,320,417 1,047,997

Business Promotion 6,407,433 4,610,369

Bad Trade and other Receivables, Loans and Advances Written Off 3,494,982 32,435

Registration Charges 210,844 1,196,057

Sub Total (B) 46,738,717 32,860,865

Administrative and Other Expenses

Rent 3,523,000 1,207,859

Repairs and Maintenance - Buildings 1,291,109 3,063,215

Repairs and Maintenance - Others 2,730,048 3,539,391

Vehical Running & Maintenance 2,151,745 1,877,826

Insurance 457,996 480,568

Rates and Taxes 2,817,764 1,111,056

Communication 2,458,955 2,531,491

Travelling and Conveyance 11,960,387 11,595,186

Printing and Stationery 2,048,317 1,765,409

Research & Development Exp. (Excluding Depreciation) Refer Note 35 5,315,515 –

Sale Tax Demand 576,403 166,568

Watch & Ward 1,364,777 1,074,301

Electricity & Water Charges 722,831 184,523

Donations 600,000 616,100

Legal and Professional 4,912,860 3,254,505

Director Sitting Fee 170,000 138,000

Membership & Subscription 274,593 334,424

Payments to Auditors 666,004 521,738

Loss on Fixed Assets Sold 10,928 564,491

Provision for Doubtful Trade/Other Receivables, Loans & Advances (Net) 8,502,631 3,023,198

Prior Period Adjustments (Net) 1,782,496 127,639

Miscellaneous Expenses 1,791,141 1,770,713

Sub Total (C) 56,129,500 38,948,201

Total Other Expenses (A+B+C) 235,585,116 174,998,303



36




NOTE 25 – EARNING PER SHARE (EPS)

Net Profit for Calculation of Basic / Diluted EPS 49,993,068 42,920,880

Weighted Average Number of Equity Shares for Calculating Basic & Diluted EPS

7,200,150 7,200,150

Basic (in `) 6.94 5.87

Diluted EPS (in `) 6.94 5.87

SL. NO.

PARTICULARS CURRENT YEAR (`)

PREVIOUS YEAR (`)

NOTE 26 – CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF: -

a Excise duty pending hearing of appeals / writ petitions.

i Cenvat credit availed on raw material utilised on prorata basis 2,275,764 3,990,947

ii Cenvat credit disallowed on inputs – 454,797

iii Other Miscellaneous Cases – 170,586

b. Service Tax

i Reversal of cenvat credit availed on input services 113,189 113,189

ii Demand on import of services 1,922,384 1,922,384

c. Value Added Tax

i Declaration forms pending submission 1,767,512 1,218,974

d Letter of credit for import of raw material 15,209,233 31,972,760

e Bank guarantees 5,949,655 4,536,264

f Duty exemption availed on import of machinery under EPCG Scheme 8,982,469 22,619,163

Based on favourable decisions in similar cases legal opinion taken by the Company, discussions with the solicitors etc., the Company believes that there is fair chance of decisions in its favour in respect of all the items listed in (a) to (d) above and hence no provision is considered necessary against the same.

i. National Pharmaceutical Pricing Authority (NPPA) vide its orders, letter F. No. 21 (807)07/DW IV /NPPA dated 03/09/2008; subsequent letters dated 24/11/2008, 01/05/2009, 08/11/2010 and in continuation letter dated 06/02/2012 have raised a demand of ` 6,01,92,891/- being excess amount charged from consumers of product Ciplox, over and above price as per norms under DPCO, 1995, manufactured by us on behalf of CIPLA Ltd., along with interest thereupon, amounting to ` 5,59,00,067/- (previous year ` 4,45,95,347/-) thereby aggregating to ` 11,60,92,958/- (Previous year ` 10,47,88,238/-)

ii. Capital Commitments :- Capital contracts remaining to be executed (net of advances) and not provided for ` 1,19,09,039/- (previous year ` 52,96,373/-)



37


SL. NO.

DESCRIPTION CURRENT YEAR (`)

PREVIOUS YEAR (`)

NOTE 27 – AMOUNT DUE TO SUPPLIERS COVERED UNDER MICRO, SMALL AND MEDIUM ENTERPRISES ACT, 2006 ON THE BASIS OF CONFIRMATION RECEIVED IS AS UNDER:I The principal amount and the interest due thereon remaining unpaid to any supplier as at the end

of yearPrincipal Amount Unpaid 2,188,976 462,027

Interest Due 120,887 26,621

II The amount of interest paid by the buyer in terms of section 16, of the Micro Small and Medium Enterprise Development Act, 2006 along with the amounts of the payment made to the supplier beyond the appointed day during the year.Payment made beyond the Appointed Date 12,195,396 4,782,438

Interest Paid beyond the Appointed Date – –

III The amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under Micro Small and Medium Enterprise Development Act, 2006.

476,528 175,910

IV The amount of interest accrued and remaining unpaid at the end of the year; and 597,415 202,531

V The amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise for the purpose of disallowance as a deductible expenditure under section 23 of the Micro Small and Medium Enterprise Development Act, 2006

921,487 324,072

NOTE 28 – GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS:

The Company has a defined benefit gratuity plan. Gratuity is computed as 15 days salary, for every completed year of service or part thereof in excess of 6 months and is payable on retirement/termination/resignation. The benefit vests on the employees after completion of 5 years of service. The Gratuity liability has been funded. Company makes provision of such gratuity liability in the books of accounts on the basis of actuarial valuation as per the Projected unit credit method.

The Company has also provided long term compensated absences which are unfunded.

The following tables summarise the components of net benefit expense recognized in the profit and loss account and the unfunded status and amounts recognized in the balance sheet for the Gratuity.

Profit and Loss Account

Net employee benefit expense (recognised in Employee Cost) (Amount in `)

GRATUITY 31ST MARCH, 2012 31ST MARCH, 2011

Current service cost 1,511,408 1,161,323

Interest cost on benefit obligation 698,341 574,792

Expected return on plan assets (837,007) (576,541)

Net actuarial loss / (gain) recognised in the year 532,726 455,106

Past service cost – –

Net benefit expense 1,905,468 1,614,680

Actual return on plan assets 837,007 576,541



38


Balance Sheet

Details of provision for Gratuity (Amount in `)

31ST MARCH, 2012 31ST MARCH, 2011

Defined benefit obligation 11,152,240 8,729,258

Fair value of plan assets 10,059,625 6,461,494

Less: Unrecognised past service cost – –

Plan liability (1,092,615) (2,267,764)

Changes in the present value of the defined benefit obligation are as follows: (Amount in `)

31ST MARCH, 2012 31ST MARCH, 2011

Defined benefit obligation as at April 1 (Opening Balance) 8,729,258 7,464,833

Interest cost 698,341 574,792

Past service cost – –

Current service cost 1,511,408 1,161,323

Benefits paid (319,493) (926,796)

Actuarial losses on obligation 532,726 455,106

Defined benefit obligation as at March 31 (Closing Balance) 11,152,240 8,729,258

The principal assumptions used in determining gratuity benefit obligations for the Company’s plans for last three years are shown below:

31ST MARCH, 2012 31ST MARCH, 2011 31ST MARCH, 2010

Discount rate 8.70% 8.00% 7.70%

Increase in Compensation cost 6.00% 5.50% 5.50%

Rate of Return on Plan Assets 9.15% 9.15% 9.15%

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

Amount for the current and previous two years are as follows:

GRATUITY

31ST MARCH, 2012 31ST MARCH, 2011 31ST MARCH, 2010 31ST MARCH, 2009

Defined benefit obligation 11,152,240 8,729,258 7,464,833 5,885,903

Plan Assets 10,059,625 6,461,494 5,642,161 4,426,759

Deficit (1,092,615) (2,267,764) (1,822,672) (1,459,144)

Experience adjustments on plan liabilities (Loss) / Gain (760,409) (1,206,745) 194,364 529,296

Experience adjustments on plan assets (Loss)/ Gain – – 76,819 156,725

Contribution to Defined Contribution Plans:


PREVIOUS YEAR (`)

Provident Fund 6,756,258 5,124,625



39


NOTE 29

i) AUDITOR’S REMUNERATION

SL.NO.


PREVIOUS YEAR (`)

a. For Statutory audit 393,260 358,475

b. For Tax Audit 112,360 82,725

c. Certification and other matters 168,540 110,300

d. Out of pocket expense 25,000 23,077

Total * 699,160 * 574,577

Note : * Including Service tax ` 74,160/- (previous year: ` 52,839/-) claimed / set off as cenvat credit.

ii) DIRECTOR’S REMUNERATION

a. Salaries and allowances 2,400,000 2,160,000

b. Contribution to Provident Fund 326,640 293,976

c. Perquisites 262,949 123,630

Total 2,989,589 2,577,606

Note: Wholetime Director is covered under the Company’s gratuity scheme along with the other employees of the Company. The gratuity liability is determined for all the employees on overall basis by an independent actuarial valuation. The specific amount of gratuity for whole time directors cannot be ascertained separately and accordingly the same has not been included in the above note.

NOTE 30 – LEASE

The Company has taken various residential and office premises under operating lease agreements. These are generally not non-cancellable and are renewable by mutual consent on mutually agreed terms. There are no restrictions imposed by Lease Agreement. There are no subleases.

PARTICULARS LEASE PAYMENTS

CURRENT YEAR (`)

PREVIOUS YEAR (`)

Total lease payment for the year (Recognised in Profit & Loss Account) 3,516,000 1,151,809

Minimum Lease Payment

Not later than one year 3,450,000 696,000

Later than one year but not later than five years 2,375,000 7,395,000

Later than five years – –

NOTE 31 – RELATED PARTY DISCLOSURES

a. List of Related Parties (As ascertained by the management)

1 Enterprises under Common Control Ahluwalia Contracts (India) Ltd.Ahluwalia Builders Development Group (P) Ltd.Tidal Securities Pvt. Ltd.Capricon Industrials Ltd.Ahlcons India (P) Ltd.Ahlcon Ready Mix Concrete Pvt. Ltd.Dipesh Mining Pvt. Ltd.



40


JiwanjyotiTradersPvt.Ltd.Paramount Dealcomm Pvt. Ltd.Prem Sagar Merchants Pvt. Ltd.Splendor Distributors Pvt. Ltd.Enterprises over which key managerial personal is able to exercise significant influence.Shantidevi Progressive Educational Society Karamchand Ahluwalia Charitable Hospital

2 Individuals owning, directly or indirectly a substantial Interest in the voting power of the CompanyMrs. Sudarshan Walia Director (Also relative of Key Management Personnel)

3 Key Management PersonnelMr. Bikramjit Ahluwalia ChairmanDr. Rohini Ahluwalia Vice Chairperson & Whole Time Director (also relative of Key management personnel)

4 Relative of the key management personnel with whom the transactions have taken place during the yearMrs. Mukta Ahluwalia Daughter of Chairman

5 Non-Executive DirectorsMrs. Sudarshan WaliaMr. Arun Kumar GuptaDr. S.S. AroraProf. G.P. TalwarDr. S.C.L GuptaMr. S.K. Sachdeva

b. Transactions with Related Parties

SL.NO.


PREVIOUS YEAR (`)

i Rent Paid to

- Companies under common control 270,000 270,000

- Daughter of Chairman 360,000 360,000

- Wife of Chairman 2,400,000 200,000

ii Managerial Remuneration

- Key Management Personnel 2,989,589 2,577,606

iii Payment of Donation

Enterprises over which key managerial personal is able to exercise significant influence. 600,000 600,000

c. Amount Due from / to Related Parties

i. Included in Current Liabilities

- Due to key management personnel 99,554 21,000

ii - Companies under common control

- Rent 121,500 303,750

- Purchase – 156,587

Note :- No amount has been written off provided for in respect of transaction with related parties.



41


NOTE 32 – SEGMENT REPORTING:

1. Business Segment: In the opinion of the managemnt, there is only one reportable segment i.e. manufacturing of pharmaceuticals products, as envisaged by Accounting Standard 17 ‘Segment Reporting’, prescribed by the companies (Accounting Standards) Rules, 2006.

2. Geographical Segment: The Company sells its products to various customers within the country and also exports to other countries. Considering size and proportion of exports to local sales, the Company considers sales made with in the country and exports as different geographical segments.

Information about secondary business Segments:

a. Revenue as per Geographical Markets

CURRENT YEAR (`)

PREVIOUS YEAR (`)

Revenue within India (Gross) 714,197,285 609,399,542

Revenue outside India 152,209,726 67,981,434

Total Gross Revenue 866,407,011 677,380,976

b. Carrying amount of Segment Assets (Debtors) by geographical location of assets

Receivables within India 116,427,215 133,454,898

Receivables outside India 13,553,304 12,238,516

Segment Liabilities outside India (From Customers) (6,870,334) (3,982,207)

Total 123,110,185 141,711,207

Rest of the current assets are common and not segregateable, geographical segment wise.

c. The Company has common fixed assets for producing goods for domestic market and Overseas Market. Hence, Separate figurers for fixed assets / addition to fixed assets cannot be furnished.

NOTE 33 – DERIVATIVE INSTRUMENTS AND UNHEDGED FOREIGN CURRENCY EXPOSURE

Particulars of unhedged foreign currency exposure as at Balance Sheet date:

PARTICULARS CURRENT YEAR PREVIOUS YEAR

AMOUNT IN FOREIGN CURRENCY

AMOUNT (`)

AMOUNT IN FOREIGN CURRENCY

AMOUNT (`)

Import Creditors – – – USD 196,264 9,009,167

Export Debtors USD 264,938 13,553,301 USD 272,360 12,238,516

Advance Given USD 6,867 346,120 USD 11,743 537,199

Advance Received USD 128,978 6,598,476 USD 81,674 3,727,152

EUR 3,978 271,858 EUR 3,978 255,055



42


NOTE 34

DESCRIPTION CURRENT YEAR (`)

PREVIOUS YEAR (`)

a) Expenditure in Foreign Currency (Payment basis)

Bank Charges 318,343 112,154

Business Promotion 3,578,123 2,563,908

Registration Fee / Advance for registration 206,444 1,195,097

b) Remittance in foreign currency on account of dividend :

Interim Dividend

Number of non - resident shareholder 13 –

Number of shares held 22,517 –

Amount of dividend 22,517 –

Final Dividend

Number of non - resident shareholder 18 15

Number of shares held 25,624 9,479

Amount of dividend 38,438 14,219

c) Earning in Foreign Currency:

FOB Value of Exports 151,908,950 67,041,559

d) Value of Imports calculated on CIF basis:

Raw materials 145,911,453 85,453,744

Stores & Spares 1,562,384 10,085,409

Capital Goods – 92,171,711

e) Value of Materials, Stores & spares Consumed:

DESCRIPTION CURRENT YEAR PREVIOUS YEAR

VALUE % VALUE %

Materials

Imported 143,190,623 46.11 96,907,707 41.52

Indigenous 167,380,700 53.89 136,466,302 58.48

310,571,323 100.0 233,374,009 100.00

Stores & Spares

Imported 2,015,717 7.93 8,293,425 28.41

Indigenous 23,401,190 92.07 20,900,940 71.59

25,416,907 100.00 29,194,365 100.00



43


NOTE 35 – RESEARCH AND DEVELOPMENT

Company have incurred during the year, in addition to capital expenditure, revenue expenditure on research and development and the break - up of the amount is as under:

CURRENT YEAR (`)

PREVIOUS YEAR (`)

Material 1,326,711 –

Personnel 3,886,617 –

Printing & Stationery 102,187 –

Depreciation 211,910 –

Total 5,527,425 –

NOTE 36

The promoters of the company viz., Ahluwalia family group, vide letter dated 22nd March, 2012 informed the company that they have executed an agreement to sell their shareholding of equity shares of ` 10 each held by them in the company to B. Braun Singapore Pte. Ltd. (Acquirer). The transfer of aforesaid shares will take place after receiving the necessary approvals by the Acquirer. The Acquirer is an unlisted company incorporated under the laws of Singapore.

NOTE 37

Till the year ended 31st March, 2011, the Company was using pre-revised Schedule VI to the Companies Act, 1956, for the preparation and presentation of its financial statements. During the year ended 31st March, 2012, the revised Schedule VI has been notified under the companies Act, 1956, which has become applicable to the Company. Accordingly in view of the same, the Company has reclassified previous year figures to confirm to this year classification.






44


CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2012

PARTICULARS YEAR ENDED 31ST MARCH, 2012


` ` ` `

A. Cash flow from operating activities

Net Profit / (Loss) before extraordinary items and tax 72,343,477 64,827,968

Adjustments for:

Depreciation and amortisation 33,959,591 28,931,582

(Profit) / loss on sale / write off of assets 8,498 530,855

Finance costs 35,232,405 22,511,530

Interest income (395,035) (827,534)

Liabilities / provisions no longer required written back (4,706,875) (1,612,089)

Bad trade and other receivables, loans and advances written off 3,494,982 32,435

Provision for doubtful trade/other receivables, loans & advances 8,502,631 76,096,197 2,990,763 52,557,542

Operating profit / (loss) before working capital changes 148,439,674 117,385,510

Changes in working capital:

Adjustments for (increase) / decrease in operating assets:

Inventories (20,993,429) (28,420,887)

Trade receivables 9,341,280 (38,002,837)

Short-term loans and advances 2,212,308 (11,959,883)

Long-term loans and advances (5,738,901) (8,825,101)

Other current assets (5,378,683) (334,245)

Mat Credit Entitlement – (20,557,425) 7,302,775 (80,240,179)

Adjustments for increase / (decrease) in operating liabilities:

Trade payables 11,836,265 11,164,372

Other current liabilities (5,504,631) 20,834,540

Short-term provisions 4,015,197 1,006,488

Long-term provisions 1,354,331 11,701,162 372,594 33,377,994

Cash generated from operations 139,583,411 70,523,325

Interest Paid (35,232,405) (22,511,530)

Net income tax paid (19,296,580) (17,832,312)

Net cash flow from / (used in) operating activities (A) 85,054,426 30,179,483

B. Cash flow from investing activities

Capital expenditure on fixed assets, including capital advances (40,619,063) (184,082,779)

Proceeds from sale of fixed assets 2,123,452 766,356

Interest received 395,035 827,534

(Profit) / loss on sale of assets (8,498) (530,855)

Net cash flow from / (used in) investing activities (B) (38,109,074) (183,019,744)


45


CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2012

PARTICULARS YEAR ENDED 31ST MARCH, 2012


` ` ` `

C. Cash flow from financing activities

Proceeds from long-term borrowings – 124,079,792

Repayment of long-term borrowings (43,189,189) (19,654,075)

Net increase / (decrease) in working capital borrowings 25,288,709 43,439,581

Dividends paid (22,062,595) (13,223,700)

Net cash flow from / (used in) financing activities (C) (39,963,075) 134,641,598

Net increase/(decrease) in Cash and cash equivalents (A+B+C) 6,982,277 (18,198,663)

Cash and cash equivalents at the beginning of the year 12,054,681 30,253,344

Cash and cash equivalents at the end of the year 19,036,958 12,054,681

Reconciliation of Cash and cash equivalents with the Balance Sheet:

Cash and cash equivalents as per Balance Sheet (Refer Note 19) 19,036,958 12,054,681

Less: Bank balances not considered as Cash and cash equivalents as defined in AS 3 Cash Flow Statements

4051421 4312649

Net Cash and cash equivalents (as defined in AS 3 Cash Flow Statements) included in Note 15

14,985,537 7,742,032

Cash and cash equivalents at the end of the year Comprises:

Cash on hand 117,969 222,151

Balances with Banks:

In current accounts 13,159,184 5,796,548

In deposit accounts with original maturity of less than 3 months – –

Unpaid Dividend Accounts* 1,708,384 1,723,334

14,985,537 7,742,033

Notes: *These balances are not available for use by the company as they represent corresponding Unpaid Dividend Liabilities.





NOTES

#


AHLCON PARENTERALS (INDIA) LIMITEDRegd. Office: 4, Community Centre, Saket, New Delhi-110017

20th Annual General Meeting – September 27, 2012

I certify that I am a member / proxy for the member of the company.I record my presence at the 20th Annual General Meeting of the Company to be held at Ahlcon Public School, Mayur Vihar, Phase-I, New Delhi-110091, at 3.00 P.M. on Thursday, 27th day of September 2012.

------------------------------------------------------------------------------ ------------------------------------------------------------------------------Name of the member/proxy Signature of member/proxy(In BLOCK letters)

Note: Please fill up this attendance slip and hand over at the entrance of the meeting hall.Members are requested to bring their copies of the annual report to the meeting.

I/we --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

of -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

in the district of ------------------------------------------------------------------------------------------------------------------------------------------------------------ being a member / members of the Company, hereby

appoint Shri/Smt. ------------------------------------------------------------------------------ of ------------------------------------------------------------------------------ in the district of ------------------------------------------------------ or

failing him /her --------------------------------------------------------------------------------------------------------------------------------------------------------------------------- of ----------------------------------------------------------------------------------------

in the district of --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

as my / our proxy to vote for me / us on my / our behalf at the 20th Annual General Meeting of the Company to be held on Thursday, 27th day of

September 2012 at 03.00 P.M. at Ahlcon Public School, Mayur Vihar, Phase-I, New Delhi-110091 and at any adjournment (s) thereof.

Signed this ------------------------------------------------------------------------------ day of September, 2012. Signature ------------------------------------------------------------------------------

Notes: This form, in order to be effective, should be duly stamped, completed, signed and deposited at the Registered Office of the Company, not less than 48 hours before the meeting.

AHLCON PARENTERALS (INDIA) LIMITEDRegd. Office: 4, Community Centre, Saket, New Delhi-110017

(Name of Member)

(Address)

(Name of alternate proxy)

(Address of alternate proxy)

(Address of proxy)

(Name of proxy)

Affix ` 1 Revenue Stamp

please tear here ##

#

ATTENDANCE SLIP

REGD FOLIO No.

DP ID No.

CLIENT ID No.

No. OF SHARES HELD

PROXY FORM

REGD FOLIO No.

DP ID No.

CLIENT ID No.

No. OF SHARES HELD



Note: Annual Listing Fee for the year 2012-2013 has been paid to all the Stock Exchanges

MAS SERVICES LTD.T-34, 2nd Floor, Okhla Industrial Area,Phase - II, New Delhi - 110 020Ph: 011-26387281/82/83,Fax: 011- 26387384Email: [email protected]: www.masserv.com

For Dematerialisation of SharesISIN No. INE 027C01011

REGISTRAR & SHARE TRANSFER AGENTS

STOCK EXCHANGES(Where the Company’s equity shares are listed)

1. Delhi Stock Exchange Ltd. DSE House, 3/1, Asaf Ali Road, New Delhi - 110002

2. Bombay Stock Exchange Ltd. P. J. Towers, 25th Floor, Dalal Street, Mumbai - 400001

3. Jaipur Stock Exchange Ltd. Jawaharlal Nehru Marg, Malviya Nagar, Jaipur - 302017

4. The Calcutta Stock Exchange Association Ltd. Calcutta Stock Exchange Building 7, Lyons Range, Kolkata - 700001

CORPORATE INFORMATIONBOARD OF DIRECTORS

BANKERS

REGISTERED OFFICE

AUDITORS

Mr. Bikramjit AhluwaliaChairman

Dr. Rohini AhluwaliaExecutive Vice Chairperson, CEO

Ms. Sudarshan Walia, DirectorMr. Arun Kumar Gupta, DirectorProf. G.P. Talwar, DirectorDr. S.S. Arora, DirectorDr. S.C.L. Gupta, DirectorMr. S.K. Sachdeva, Director

Punjab & Sind Bank Syndicate Bank State Bank of Bikaner & JaipurHDFC Bank Ltd.

4, Community Centre, Saket, New Delhi - 110017Tel: +91-11-26852036Fax: +91-11-26852036

MANUFACTURING FACILITIESSP-917 & 918, Phase III, Industrial Area,Bhiwadi - 301019Dist. Alwar, RajasthanTel: +91-01493-305300 Fax: +91-01493-221045

CORPORATE OFFICEM-1, Saket, New Delhi - 110017Tel: +91-011-40504562

WEBSITEwww.ahlconindia.comemail: [email protected]

M/s. Arun K. Gupta & Associates Chartered Accountants, D-58, East of Kailash,New Delhi - 110065

COMPANY SECRETARY Mr. Ranjan Kumar Sahu

CONTENTSNotice.......... 01 Directors’ Report.......... 03 Management Discussion & Analysis Report... 07

Report on Corporate Governance.......... 11 Auditors’ Report.......... 17 Balance Sheet....... 20

Statement of Profit and Loss.......... 21 Notes.......... 22 Cash Flow Statement.......... 44


If undelivered, please return to:

BOOK-POST



4, Community Centre, Saket, New Delhi - 110017, India

Telefax No. 91-11-26852036 | Email: [email protected]

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20th Annual Report 2011-12

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Documents

Ahlcon Parenterals (India) Limited. Ahlcon Parenterals (India) Ltd. “20th Annual Report 2011–12” NOTICE. Notice is hereby given that the 20. th. Annual General Meeting of Ahlcon