Dear Friends ,
 
 Evolution becomes the harbinger of progress only when it goes beyond
 mere change to become a source of transformational growth. And progress
 becomes meaningful when it impacts not only the future of those who
 catalyze it but also the lives of hundreds of thousands of people
 around the world.
 
 A year ago, we had embarked on a journey of extensive expansion across
 our business operations. It was another big step towards our
 transformational growth that saw us scale new levels of excellence,
 across our financial and operational performance. It enabled us to span
 new boundaries & markets, and to extend our operations across new
 innovations & products. It set the stage for a new phase of progress
 for your Company - a progress that was to go beyond numbers towards a
 far more holistic advancement for us in the burgeoning and expanding
 world of medicine and healthcare.
 
 For us, at Panacea Biotec, it became vitally important to look beyond
 today into a future in which we perceive India to play a pivotal and
 leadership role in the critical areas of healthcare and medicine.
 India''s tryst with medicine is civilizations old and we feel it is time
 to augment and build brand India. It is to this end that we have made
 Think Medicine~Think India'' the bedrock of our Vision 2020 to be the
 Largest, Greatest and Most Admired Biotech Company globally.
 
 Excellent Numbers
 
 Although our focus now is to go beyond mere numbers, our financial
 performance during the year was a clear indicator of the fact that we
 were definitely going in the right direction in our journey towards the
 future.
 
 Our focused strategy by seamless execution helped us post excellent
 numbers during the financial year under review. The Net turnover
 expanded by 28% at Rs.11,305 million during the year ended March 31,
 2011. Both the net turnover of pharmaceutical formulations and vaccine
 segment grew smartly by 24% and 29% respectively. I am happy to report
 that the turnover is matched by substantial growth in the EBITDA by 67%
 and PAT by 69% at Rs.1,351 million. The Company has achieved a record
 turnover of more than US$ 250 million in the history of the Company.
 The Company also achieved record export turnover of US$ 157 million
 during FY 2010-11.
 
 Excellent Strategy
 
 With our Vision 2020 firmly in place and our strategy to achieve the
 same rooted in our robust strengths - innovative product portfolio,
 state-of-the-art facilities, respect for IPR and extensive
 collaborations across people competencies, systems and processes - we
 are fully geared to take on the global future challenges in the field
 of healthcare and medicine.
 
 The award of US FDA approval to our Pharmaceutical Formulations
 Facility at Baddi in Himachal Pradesh in April 2010 has laid the
 foundation for our exemplary operational performance for years to come.
 This latest regulatory approval, as I mentioned in my communication
 even last year, is very much in line with your Company''s strategic plan
 to expand its formulations business to the fast-growing ICH markets.
 The company expects to launch products very soon in the United States
 through its distribution partner.
 
 Capitalizing on its collaborative strength, your Company also spread
 its wings in Australia, New Zealand, Turkey and Latin American markets
 during the year under review. These collaborations are in line with
 your Company''s belief in investing in partnerships that provide human,
 technical and financial resources to engage and empower the community
 worldwide.
 
 New brands and products continued to find focus in your Company''s
 strategic growth plans for the future. The thrust, however, was on
 finding curative solutions for serious health-related problems. One of
 the most notable of such diseases is cancer, and 2010-11 saw us come
 out with a novel drug delivery product - PacliALL (refers to Paclitaxel
 `For All'') that seeks to address the unmet needs of cancer treatment,
 namely elimination of side effects, heightening cost-effectiveness and
 accelerating the quality benchmark.
 
 Far more evolved that other products of the kind, PacliALL is the
 ultimate solution to everyone''s needs - from critics, to NGOs, to
 Government (regulators), patients and doctors.
 
 Conclusion
 
 Our strategic initiatives, as detailed above, are clearly aimed at
 enabling the translation of our Vision 2020 in an environment of
 futuristic growth and progress. The growth trajectory that we have
 charted for ourselves envisages a strong focus on broad-based
 advancement for each of us through progressive growth of the Indian
 healthcare industry. And as we move forward towards realizing our
 goals, we do so with a strong sense of confidence that we have the
 continuing support and dedicated commitment of every member of the
 Panacea Biotec family, including our employees, partners and
 associates.
 
 Thank you 
 
 Soshil Kumar Jain