Dear Stakeholders,
 
 I am very pleased to present you with the annual report of Ahlcon
 Parenterals ( India) Limited at an interesting juncture in its journey.
 Your company is well on its way to complete twenty years of splendid
 existence, and it is with a deep sense of pride that I reflect on the
 years gone by and redefine the goals for the future.  This report
 endeavours to provide you a review of our activities in 2010-11 as well
 as take you through our strategy, targets, expectations which we have
 set for ourselves for attainment of vigorous growth in the years ahead.
 
 SUCCESS IN IMPLEMENTING STRATEGIES
 
 Our main objective is to become one of India''s leading pharmaceutical
 companies and attain revenue growth both in India and abroad through a
 combination of organic and inorganic strength. As a company we are
 committed to reviewing our business strategy on an ongoing basis with
 the aim of increasing shareholder value. We achieved a very significant
 measure of success in implementing our business strategies in 2010-11,
 reaching most of our goals including successfully and timely
 commissioning of the new additional LVP line of production, in addition
 to posting a satisfactory set of financial and operational results
 considering the sluggishness of the pharmaceutical sector in general
 for the year under review. While your company reported a positive sales
 growth, profitability suffered on the back of excess volatility in
 input prices and mounting governmental pressure to reduce drug prices.
 Our sales turnover increased from Rs 5063 lakhs in 2009-10 to Rs 6277
 lakhs in 2010-11. Direct
 
 Export Sales have risen by 44% over last year which highlights the
 recognition of our quality products in the overseas markets and also
 the successful implementation of our well thought out direct export
 strategies in addition to the third party exports. I would also like to
 state that despite decrease in the volume of profits, the Board has
 recommended a dividend payout similar to last years, subject to
 shareholder approval, with the objective of rewarding shareholders for
 the trust they have shown in the company at all times.
 
 LOOKING AHEAD
 
 We at Ahlcon are focussed on increasing our momentum in the branded
 business in our key markets. To achieve this goal, we are not only
 changing but we are changing ahead of time. At the heart of the
 organisation lies the spirit and will to experiment, to take calculated
 risks and learn from them. We are cognizant of the fact that innovation
 and technological development are the lifeblood of our business and our
 success in the markets rests on how we deploy these assets. Thus at
 Ahlcon, our investment in research and development has been initiated
 to meet the challenge of unmet medical needs. A strong new product
 pipeline, one that is continually replenished, will be our aim for the
 coming years to ensure our success as a branded pharmaceutical company.
 
 As pharmaceutical companies scan for new growth opportunities over the
 next decade, they have realized that some of the most pioneering are to
 be found in the world''s emerging economies. In recent years, the global
 pharmaceutical industry has shown high interest in India due to its
 sustained economic growth, healthcare reforms, patent-related 
 legislations and improved infrastructure facilities. Leveraging 
 India''s globally competitive cost base and exceptional scientific 
 talent your company is committed to expand its capacities by increasing 
 its operations in the domestic and international market and gain 
 from economies of scale. With the ongoing process of receiving 
 registration from newer countries for our products, about to be 
 completed in the forthcoming years export prospects look very bright 
 indeed.
 
 People are at the heart of our operations. To enable us achieve the
 targets we have set, it is imperative that we hire and retain the best
 talent. Cognizant of the contribution of our employees in realizing our
 vision of growth by developing innovative solutions, your company
 strives to build capacities by encouraging its employees to participate
 in exhibitions and seminars and providing them with an environment to
 develop their inner talent and expertise. By rewarding good performance
 and providing exciting opportunities for growth of technical,
 entrepreneurial, and management skills we are confident of building a
 solid foundation for the growth of your company.
 
 While optimising, profitability may be one measurement of our success,
 we recognise that responsible growth is also important.  We are
 committed to provide quality, low cost pharmaceutical products with
 significant emphasis on protecting environment, occupational safety and
 health, and thereby improving the life of other communities. We
 understand that it is only by concentrating on these activities
 simultaneously can we build an ever flourishing and lasting
 organisation.
 
 I take this opportunity to thank my employees for their tireless
 efforts in ensuring that Ahlcon delivers on its promises. I would also
 like to thank our customers, shareholders, suppliers and bankers for
 reposing faith in us and appreciating the value of true quality in
 pharmaceutical products. And as we reach out for the next phase of
 growth, I look forward to your continued support.
 
 With Best wishes, 
 
 Yours Sincerely 
 
 Bikramjit Ahluwalia 
 
 Chairman