The Directors have pleasure in presenting the Annual Report together
 with the audited Statement of Accounts for the year ended 31st March
 2012.
 
 FINANCIAL RESULTS
 
 The operating results of the Company for the year ended on 31st March,
 2012 are briefly indicated below:- 
 
                                                         (Rs. in Lacs)
 
                                                    Year          Year
                                               2011-2012     2010-2011
 
 Profit Before Depreciation and Taxation          911.29        763.76
 
 Less : Depreciation                              188.65        166.68
 
 Less: Provision for Taxation - Current           162.19        141.00
 
 Less : Deferred tax Expense                       63.79         52.93
 
 Profit after Taxation                            496.66        403.15
 
 Add : Balance brought forward                   1822.05       1582.64
 
 Profit available for Appropriation              2318.71       1985.79 
 
 APPROPRIATION
 
 1.  Proposed Dividend                             97.86         97.86
 
 2.  Dividend Tax                                  15.88         15.88
 
 3.  General Reserve                               50.00         50.00
 
 Net Balance carried to Balance sheet            2154.97       1822.05 
 
 OPERATIONS
 
 During the year under review, your company has performed well and
 achieved total revenue of Rs. 17755.58 lacs (Previous year Rs.16912.80
 lacs). The Company has earned net profit of Rs.496.66 lacs( previous
 year of Rs. 403.15 lacs). Further details are given in management
 discussions and analysis Report, which forms part of this report.
 
 CORPORATE GOVERNANCE REPORT
 
 Your Company has complied with the Corporate Governance practice
 mandated by Clause 49 of the Listing Agreement. A report on the same is
 given separately.
 
 DIVIDEND
 
 Your Directors are pleased to recommend a payment of dividend @6%
 (Rs.0.60 per equity shares) for the year ended 31-03-2012.  (Previous
 year - 6%).
 
 DEPOSITS
 
 The Company has not accepted deposits within the meaning of Section 58A
 of the Companies Act, 1956.
 
 DIRECTORS
 
 Shri Mihirbhai V. Patel and Shri Arvindbhai G. Patel-Directors of the
 Company are retiring by rotation and being eligible, offer themselves
 for re-appointment.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 As required under Section 217(2AA) of the Companies Act, 1956, your
 Directors to the best of their knowledge and belief and according to
 the information and explanation obtained by them, confirm that:
 
 (1) in the preparation of the annual accounts, the applicable
 accounting standards have been followed along with proper explanation
 relating to material departures, if any;
 
 (2) appropriate accounting policies have been selected and applied
 consistently and judgments and estimates made that are reasonable and
 prudent so as to give true and fair view of the state of affairs of the
 Company at the end of the financial year and of the profit of the
 Company for that period;
 
 (3) proper and sufficient care has been taken 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;
 
 (4) the accounts have been prepared on going concern basis.
 
 SUBSIDIARY COMPANY :
 
 Pursuant to the provision of Section 212(8) of the Act, 1956, the
 Ministry of Corporate Affairs vide its circular dated February 8, 2011
 has granted general exemption from attaching the balance sheet,
 statement of profit and loss and other documents of the subsidiary
 companies with the balance sheet of the Company. A statement containing
 brief financial details of the Company''s subsidiaries for the financial
 year ended 31.03.2012 is included in the Annual Report. The
 Consolidated Financial Statements presented by the Company include the
 financial results of its subsidiary companies. Annual Accounts of the
 subsidiary companies are also kept ready for inspection by any
 shareholders of the Company at registered office of the Company and of
 the concerned subsidiary companies. The Company will furnish a hard
 copy of details of accounts of subsidiaries to any shareholder on
 demand.
 
 INSURANCE :
 
 The Company has taken adequate insurance to cover its assets.
 
 LISTING :
 
 Company''s Securities are listed with the Stock Exchanges at Ahmedabad
 and Mumbai. The Company has already paid the listing fees for the year
 2012-2013 to both the Stock Exchanges.
 
 EMPLOYEES :
 
 As there are no employees drawing remuneration more than the limit
 prescribed under Section 217(2A) of the Companies Act, 1956, and the
 Companies ( Particulars of Employees) Rules, 1975, as amended, from
 time to time, statement under section 217(2A) is not required.
 
 COST AUDIT :
 
 M/s. Kiran J. Mehta & Company Cost Accountants, Ahmedabad, have been
 appointed to conduct cost audit for the year ended 31-03-2013.
 
 AUDITORS :
 
 The Company''s Auditors M/s. Chandulal M. Shah & Co. Chartered
 Accountants, Ahmedabad will retire at the ensuing Annual General
 Meeting and being eligible offer themselves for re-appointment. The
 Members are requested to appoint auditors for the current year and fix
 remuneration.
 
 AUDITORS'' OBSERVATION :
 
 With reference to Auditors'' observation relating to non provision of
 trade receivables to the extent of Rs. 215.21 Lacs, management is
 hopeful for the recovery of the same and hence provision has not made
 for the same in the accounts.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
 EARNINGS AND OUTGO :
 
 Particulars to be given in respect of the above activity under the
 Companies (Disclosure of Particulars in report of Directors) Rules,
 1988 is given in the annexure to this report.
 
 ACKNOWLEDGEMENT:
 
 The Board is thankful to its bankers for their continued support and
 assistance which has played important role in progress of the Company.
 
 Your Directors further places on records the contribution of employees
 of the Company at all levels and other business associates for their
 commitment, dedication and respective contribution to the Company''s
 operations during the year under review.
 
                              For and on behalf of the Board
 
                            For Lincoln Pharmaceuticals Limited.
 
 Place : Ahmedabad.          Mahendra G. Patel   Hasmukhbhai I. Patel
 
 Date : 14th August, 2012   (Managing Director) (Whole-Time Director)