Poly Medicure

Dear Shareholders,
 
 You will be happy to know that your company has completed another
 eventful year marching ahead. In the context of emerging economic
 worldwide concerns the country has been passing through an anxious
 ohase. In this scenario, the company had a mixed iscal year 2007-08. On
 one front we witnessed a constrained growth in turnover in rupee terms
 and on he other we made good strides in our expansion and backward
 integration programmes which have given us enhanced capacities and a
 better future outlook.
 
 Operational progress
 
 The appreciation in Indian rupee during the year adversely impacted our
 export realizations. However, we maintained our margins despite
 challenging currency environment. This reflects the strength of our
 business model. The economic uncertainties and business risks may
 constrain for some time but our long term growth opportunities and
 potentials are promising.
 
 The year witnessed commissioning of the Haridwar Plant and the
 formation of the first subsidiary, US Safety Syringes Co., LLC, in the
 USA. The China project, a proposed 100% subsidiary of your company, has
 also entered into production phase. The Companys Joint-Venture in
 Egypt, Ultra For Medical Products Company (UltraMed), an Egyptian joint
 stock company, showed a 38% growth in its net profits. You will be
 happy to know that UltraMed has issued bonus shares in the ratio 7:10.
 
 This has been possible because of continuous support extended to us by
 all the stakeholders of the company. We at POLYMED work as a family
 under the name Polymedians. The Company has already established its
 market in around 50 countries and has succeeded in developing a
 portfolio of more than 45 healthcare products.
 
 Quality Policy
 
 The Company is positioning itself as a first line solution provider of
 world class quality and latest products with innovative designs. The
 Company has set for itself the goal of establishing itself as a role
 model of professional, ethical and strategic management. It is the
 companys objective to present a compelling range of products to the
 market, expanding value delivered by Polymed branded products, expand
 quality sales across the globe .upgrade operating practices and
 minimize delivered product costs. The Company has embarked on a
 strategic customer value proposition to attain leadership in
 product/service deliveries, customer relationship and brand image.
 
 Driven By a Dream
 
 We are driven by our motto we care as we cure and our target is to
 secure affordable and quality healthcare for all.
 
 We are confident that POLYMEDS competent and committed human
 resources, strong management team, and its shared vision and drive,
 will continue to create value for all the stakeholders. We assure all
 stakeholders continued growth and prosperity from their association
 with Poly Medicure Limited.
 
 D. R. Mehta                  Himanshu Baid
 Chairman                     Managing Director
 
 New Delhi
 29 July, 2008