We recognize that our products are consumed by patients and they seek
 good health. Every employee is sensitized to this belief and committed
 to wellness of our consumers. We believe that we are not only building
 a robust organization but also working towards shared values and a
 relationship of mutual trust with all our stakeholders.
 
 I am pleased to report that the corporate goals we set ourselves for
 the financial year have been achieved. Our business operations gained
 speed with significant improvement in volumes and turnover and we
 achieved a record performance in all key business parameters.
 
 The consolidated revenue was higher by 22.7% at Rs.44809.8 million in
 2010-11, compared to Rs.36513.4 million in 2009- 10 with much of the
 growth coming from our addressable markets in the US, Europe and
 emerging markets. In these regions, we believe our sales growth was
 better than the industry average. Our manufacturing efficiencies and
 performance continued to improve which favorably impacted our Earnings
 before Interest, Tax, Depreciation and Amortization (EBITDA), despite
 an inflationary environment.
 
 In the year under review, EBITDA was 6.5% higher at H0324.8 million as
 compared to Rs.9693.9 million in 2009- 10. Profit before tax at Rs.7985.2
 million was an increase of 6.1% over Rs.7522.5 million achieved in
 2009-10. Net profit after tax and exceptional item was Rs.5634.5 million,
 almost the same at Rs.5634.0 million achieved in the previous year.
 
 The diluted EPS for the year was Rs.17.6 as against H7.8 in 2009-10.
 
 We continued to stay on a growth trajectory and in fact worked hard to
 reinforce the future viability of Aurobindo.  We are pursuing
 sustainable growth through people development, higher efficiencies in
 manufacturing and more effective presence in markets. In the process, I
 am confident, we shall create the financial headroom we need to
 systematically invest for our future.
 
 For the longer term, we believe we are building a solid foundation. The
 Aurobindo of today is not just a company with a very large basket of
 products, a vertically integrated manufacturing process, presence in
 some of the premium markets and close working relationship with the
 topmost global names in the pharmaceutical industry. Indeed, we have
 all of the above. More significantly, we have imbued the Company with a
 strong sense of values, an uncompromising attitude towards regulatory
 compliance, strong commitment to quality systems and processes and a
 tighter management to ensure safety and environmental safeguards.
 
 Our employees with their professional approach are being encouraged to
 focus and work towards quality in pursuit of operational excellence. We
 have been completely quality driven and focused on compliance standards
 set by regulators as well as by stringent customer expectations.  Our
 qualified and experienced professionals play an active role to monitor
 performance and ensure oversight of all pharmaceutical products from
 raw materials to finished product despatches.
 
 We recognize that our products are consumed by patients and they seek
 good health. Every employee is sensitized to this belief and committed
 to wellness of our consumers.  We believe that we are not only building
 a robust organization but also working towards shared values and a
 relationship of mutual trust with all our stakeholders.
 
 My team and I Look ahead and identify future challenges and reshape our
 business model in order to take the Company to the next level. We are
 recalibrating the Company from generic formulations to branded
 generics. We are stepping up our active ingredients business in Europe,
 USA and Japan. In a bid to explore accelerated and focused growth, we
 are examining if the Company needs to be restructured. A Committee of
 the Board has been formed to study the proposal and suggest appropriate
 action.
 
 I am convinced that Aurobindo has much potential to do even better and
 we are pursuing momentum. I believe that we shall gain stronger
 foothold in markets, increase volumes and ensure top line growth. We
 are in it for all our stakeholders and for the sustainable long term.
 Maintaining and enhancing the sustainable performance of Aurobindo
 takes precedence over maximizing earnings in the short term.
 
 These initiatives will sustain our objective to step up business,
 revenues and margins in a market that recognizes our commitment to
 quality and compliance norms.
 
 As we keep raising the volume of business, such commitment to quality
 and best practices becomes even more imperative. Our team at Aurobindo
 fully recognizes the importance of sustaining the hard earned
 reputation.  As always, we are committed to doing business in an
 ethical and correct manner and take compliance with all laws earnestly.
 Over the years, we have experienced that responsible business is
 aligned to good business strategy.  In short, responsible business
 makes for good economics.
 
 We are drawing primarily on the strength of our competent and talented
 employees in all our business units, across all functions. They have
 been performing to their potential and done so for 25 years. Several of
 them have been with the company for more than two decades, and indeed
 all our employees have taken the Company to the present elevated
 levels. I wish to extend my warmest gratitude to all Aurobindo
 employees for their diligence and for a job well done. I would also
 like to thank all customers, business partners and investors for their
 support and co-operation.
 
 Our journey towards a sustained growth will continue to be built on the
 trust that we create with all those who deal with us and on the
 high-end quality that we shall maintain in our products, processes and
 transactions. My team and I will strive to see that the next 25 years
 are equally successful in the best interest of all those with whom we
 are associated.
 
 Warm/ regards 
 
 P. V. Ramprasad Reddy