Ankur Drugs & Pharma Ltd.

ANKUR DRUGS AND PHARMA LIMITED ANNUAL REPORT 2010-2011 CHAIRMAN'S REPORT Dear Shareowners, 'The joy of visualizing a bright future is not without challenges' The year gone by was indeed full of challenges. Challenges from all sides in a heap, Challenge to complete the expansion project within the regulatory time deadline; challenge to fund the project; challenge of execution ; challenge of co-ordinating several/various activities for survival, streamlining and growth. Your Company had to restrategise its planned activities in tune with demands of time, money, efforts and manpower to complete and start the project to avail the various tax benefits available at Baddi. And I have great satisfaction to state that indeed we have met the deadline. We have consciously taken a big hit on the profits by way of increased depreciation and interest outflow. In view of the above circumstances the board has not been able to declare dividends. The entire gamut of exercise was undertaken because we visualize a bright future for the company. Short term aberrations do not deter the ambitious. We take it as a challenge to overcome them and become victorious. We are on our path towards it and once again very bright future lies ahead of us. Our future focus is to scale up our activites taking advantage of the knowledge, the experience, dedicated manpower and infrastructure that we have built and established. The management strongly believes that 'BEING COMMITTED, NOTHING IS DIFFICULT'. The newly set up production facilities at Baddi have been validated by major leading international pharma companies. The Company has large numbers of orders in hand, which is lined up to be executed during the year. The CDR EG has approved the restructuring package of the Company and constraints of working capital have been addressed to a large extent to regain growth momentum. Ankur today is one of the leading company in the area of Contract Manufacturing of pharmaceutical formulations of various dosage forms to leading national and multinational pharma companies. For the current year 2011-12, the monsoon is better in major parts of India, but the monstrous rising inflation is expected to cast a dark cloud on the horizon of growth. Before I conclude, let me assure you of our commitment to create value for our stakeholders. I take this opportunity to thank the board for their constant guidance and support and Ankur employees for their commitment and contribution. We value the confidence that you have reposed in Ankur and sincerely look forward to your continued support and encouragement. Warm regards, Purnandu Jain Chairman and Managing Director Saturday, September 03, 2011.