2009-10 was a transformational year for your Company. We moved
 decisively to strengthen and expand our core businesses. We made
 excellent progress generating solid financial results, advancing our
 product development pipeline and strengthening our market presence.
 
 For the year ended March 31, 2010, your Companys revenues increased
 marginally to Rs 2150 mn, a growth of 17% over the previous year.
 However there has been a robust increase in our bottomline.  From a
 loss of Rs 174 mn in the previous fiscal we have reported a profit of
 Rs 74 mn. The principal reason for this turnaround has been our ability
 to operate at more than 100% capacity. Its our goal at Hiran to
 position the Company for accelerated growth in revenues and earnings.
 
 INDUSTRY DEVELOPMENTS
 
 The global generic industry is expected to grow at a faster pace at
 CAGR of 9% over FY 08-13 as compared to the overall pharmaceutical
 market which is slated to grow at a CAGR of 2-3% over FY 08-13.
 Currently valued at USD 87 bn, the global generic market is expected to
 touch USD 135 bn by 2013. Factors triggering this growth include drugs
 worth USD 235 bn going off patent over FY 10-15, tripling of elderly
 population (60+ population -700 mn in 2005 would reach 1900 mn by
 2050), spiraling health care expenses across the globe and favourable
 government policies.
 
 This was the broad overview about the industry that your Company
 operates in and now let me give you macro picture about the operations
 of your Company.
 
 MANUFACTURING
 
 The biggest highlight for the year under review is establishing a new
 entity ActGen Pharma Pvt. Ltd.  in collaboration with Procycon
 Lifescienes Pvt. Ltd. With this newly formed entity our combined
 manufacturing capacity stands at nearly 2000 MT p.a. Involving a capex
 of Rs 300 mn and a 49% stake this newly formed entity your Company is
 equipped to cater to the increasing demand for its products and mark
 its foray into the high margin regulated markets after receiving the US
 FDA approval. Further, your Company is not only looking to expand but
 is also taking steps to maxmise operational efficiencies due to which
 our capacities were operational at more than 100% in the year under
 review.
 
 RESEARCH AND DEVELOPMENT
 
 Research and development is a powerful engine which serves as a tool to
 enrich your Companys product pipeline, enter the developed markets and
 to fortify its position as a fast-growing pharmaceutical company. Hiran
 views its R&D capabilities as a vital component of the business
 strategy which will provide it with a sustainable, long-term
 competitive advantage.
 
 QUALITY
 
 Quality being the supreme objective, your Company continuously keeps
 abreast of the latest information and technological developments both
 in India and abroad. Your Company has evolved a quality policy, and
 this has helped us grow manifolds in this business since our inception.
 Further, we also ensure our manufacturing capacities incorporate best
 practices and adhere to stringent regulatory compliances and quality
 norms.
 
 REAL ESTATE INVESTMENT
 
 To garner attractive returns your Company had made an investment in the
 fast growing real estate sector in the year 2006-07. Your Company has
 acquired land in Coimbatore and has plans to develop an integrated
 township which would be developed in 3 phases.
 
 A BRIGHT FUTURE AHEAD
 
 Clearly, we believe that we are entering an exciting new phase of
 development. We will continue to make the necessary investments in R&D
 to pursue our long term strategy of expanding our product portfolio and
 strengthening our market presence. We also plan to raise Rs 500 mn
 through a GDR issue in the next fiscal which would be employed for
 capital expenditure, meeting long term working capital requirements and
 setting up offices overseas.
 
 Our strong financial foundation, a very promising pipeline of products
 and unique technology platforms will be the key factor driving growth.
 
 ON A PARTING NOTE
 
 We have an excellent team of employees committed to achieving the
 Companys goals in the coming years. I look forward to reporting on our
 progress towards those goals in months and years ahead.
 
 Sincerely,
 
 Kantilal Hiran
 
 Chairman and Managing Director