To the Members,
 
 The Directors have pleasure in presenting 16th Annual Report together
 with Audited Statements of Accounts of the Company for the financial
 year ending March 2011.
 
 Financial Performance
 
 Your Directors are delighted to present the Financial Results of our
 business and operations for the year ending 31st March, 2011 were as
 follows:
 
                                                       (Rs. in Lacs)
 
                                                  F.Y.         F. Y.
 Particulars                                   2010-11       2009-10
 
 Net Sales                                   16,966.75     13,600.46
 
 Add: Other Income                               39.31         52.90
 
 Total Revenue                               170,06.06     13,653.36
 
 Profit before Interest,                      3,696.73      2,949.72 
 Depreciation and Taxes
 
 Profit before Tax                            2,393.85      1,824.08
 
 Profit after Tax                             2,169.02      1,642.93
 
 Profit brought forward                       1,484.48        663.64
 from the previous year
 
 Profit available for                         3,653.50      2,306.57 
 appropriation
 
 Appropriations:
 
 -Transferred to                              1,000.00        500.00
 General Reserve
 
 - Proposed Dividend
 and Dividend                                   385.25        322.10
 Distribution Tax
 Excess provision of
 Dividend & Dividend
 Distribution Tax of                            (3.11)             -
 Previous Year written
 back
 
 Surplus carried to                           2,271.36      1,484.48 
 Balance Sheet
 
 The Company recorded net sales of Rs. 16,966.75 lac against Rs.
 13,600.46 lac in the previous year, recording a growth of approximately
 25%.The Profits after tax for the year is Rs. 2,169.02 lac against Rs.
 1,642.93 lac for the previous year, which translates into a rise of
 32%.
 
 The boost in profits is on account of economies achieved and cost
 cutting measures taken by the Company. This was achieved in spite of
 the spike in cost of raw material and other inputs. The efforts of the
 management were rewarded as increase in the production.
 
 Dividend
 
 Based on the Company''s encouraging performance, your Directors are
 happy to recommend a dividend @ Rs. 3.00 per Equity Share of Rs. 10/-
 each for the financial year 2010-11. The dividend, if approved at the
 ensuing Annual General Meeting, will be paid to those Shareholders
 whose names appear on the Register of Members of the Company as on the
 8th September, 2011. In respect of shares held in demat form, it will
 be paid to the Members whose names are furnished by the National
 Securities Depository Limited and Central Depository Services (India)
 Limited as beneficial owners. The dividend would involve an outflow of
 Rs. 3,30.38 lac towards dividend and Rs. 54.87 lac towards dividend
 distribution tax, resulting in a total outflow of Rs. 385.25 lac.
 
 Transfer to Reserves
 
 It may be noted that, the Board of Directors has proposed to transfer
 Rs. 1,000.00 lac to General Reserves out of the amount available for
 appropriations and balance of Rs. 2,271.36 lac is being carried to the
 Balance Sheet.
 
 Expansion Program
 
 Taking cognisance of the increase in demand for the Company''s products,
 the Company is in the process of expanding its installed capacity by
 approximately 25% in the current financial year, at a capital cost of
 Rs. 2,500 lac. A sum of Rs. 1,560 lac is proposed to be raised by way
 of debt and the balance will be met from internal accruals. To achieve
 the expansion, the Company explored the possibility of diversifying its
 business by introduction of Infusion Therapy devices. Having realised
 the potential, it has set up a plant which was inaugurated on 22nd day
 of May, 2011.
 
 Development of New Products
 
 Your Company is continuously endeavouring to launch new products in the
 diagnostic field and take advantage of the Company''s experience gained
 in the field.
 
 Subsidiaries
 
 As the Shareholder are aware that the Company has acquired/floated
 subsidiaries in China and USA as a part of its strategy to become a
 significant global player. The Company has two subsidiaries viz.
 
 Poly Medicure (Laiyang) Co. Ltd, China - The Company started commercial
 production during the year and achieved a turnover of Rs. 328.38 Lac.
 
 US Safety Syringes Co., LLC, USA – After taking into full account of
 risks and opportunities, the Company is in the process of starting the
 business activities.
 
 Joint Venture/Associate
 
 The Company has one Joint Venture in Egypt, viz.,
 
 Ultra for Medical Products, Egypt - The Company is performing well and
 has achieved sales of Rs. 2,579.46 lac during the financial year ended
 31st December 2010.
 
 The Company has given appropriate information relating to subsidiary
 companies in the Annual Report in pursuance of Section 212 of the Act.
 
 Consolidated Financial Statements of your Company along with its
 subsidiaries, prepared in accordance with the relevant Accounting
 Standards issued by the Institute of Chartered Accountants of India,
 forms part of the Annual Report. Annual accounts of subsidiary
 companies and the related detailed information to the shareholders is
 available at the Registered Office of the Company.
 
 Quality
 
 Poly Medicure has successfully implemented a well- documented QMS
 (Quality Management System) which has been accredited by SGS Systems
 and Services Certifications, United Kingdom with ISO 9001:2008,
 ISO-13485:2003 and CE mark from DNV, Norway thus making the entire
 product range compliant with International Quality Standards.
 
 Awards & Recognition(s)
 
 In pursuance of the Company striving for excellence, the following
 awards and recognition in various field. The Shareholders will be happy
 to hear that it has received;
 
 - Silver Patent award by Department of Pharmaceutical ministry of
 Chemicals and Fertilizers Government of India and Pharmaceuticals
 Export Promotion Council in recognition of commendable contribution in
 Medical devices patent Category.
 
 - Awarded by India Brand Equity Foundation (IBEF), in certificate of
 excellence in recognition of exemplary growth and sustainable success.
 
 Finance of Additional Facilities
 
 The Company is moving ahead to touch new milestones and in order to
 meet the fund requirements; the Company has arranged credit facilities
 of Rs. 15.00 Cr. from Citi Bank N.A.
 
 Upgradation of Rating assigned by CRISIL
 
 The Company has been awarded the Financial Credit Rating assigned by
 CRISIL as A/stable (Upgraded from A-/Stable) and P1 (Upgraded from P2 )
 for fund based and non-fund based facility respectively. The underscore
 financial strength of the Company in terms of the highest safety with
 regard to timely fulfillment of its financial obligations.
 
 Approval received for allotment of 1,06,250 Equity Shares
 
 During the year under review, your Company has received approval from
 the Bombay Stock Exchange Limited (BSE) for allotment of 1,06,250
 Equity Shares, a matter pending with Bombay Stock Exchange Limited
 (BSE).
 
 Directors'' Responsibility Statement
 
 Pursuant to the provisions of Section 217(2AA) of the Companies Act,
 1956, the Directors hereby 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;
 
 2.  Appropriate accounting policies have been selected and applied them
 consistently and have made judgements and estimates that are reasonable
 and prudent so as to give a true and fair view of the state of affairs
 of the Company as at 31st March 2011 and of the Profit of the Company
 for the year ended on that date;
 
 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 annual accounts of the Company have been prepared on a going
 concern basis.
 
 Auditors and Auditors'' Report
 
 M/s Doogar & Associates, Chartered Accountants, Auditors of the Company
 hold office upto the conclusion of ensuing Annual General Meeting. The
 Company has received a letter from them to the effect that their
 appointment, if made by the Company for the year 2011-12 will be within
 the limit prescribed under Section 224(1-B) of the Companies Act, 1956.
 
 Secretarial Audit Report
 
 As a measure of good Corporate Governance practice, the Board of
 Directors of the Company appointed Shri B.K. Sethi, Practicing Company
 Secretary, to conduct Secretarial Audit of records and documents of the
 Company.
 
 The Secretarial Audit Report confirms that the Company has complied
 with all the applicable provisions of the Companies Act, 1956,
 Depositories Act, 1996, Listing Agreement with Stock Exchanges,
 Securities Contracts (Regulation) Act, 1956 and all the regulations and
 guidelines of SEBI as applicable to the Company.
 
 Employee Stock Option Scheme
 
 The Company is proposing to grant 20,440 Options subject to the
 approval of the members to the eligible employees.  Each option holder
 thereof would be entitled to apply for and get allotted one share of
 the Company of Rs. 10/- each for such option, upon the payment of
 exercise price during the exercise period. The exercise period
 commences from the date of vesting of the option and expires at the end
 three months from the date of such vesting:
 
 The vesting periods for conversion of Options are as follows:
 
 On completion of 24 months               : 50% 
 from the date of grant of option           vests
 
 On completion of 30 months               : 50% 
 from the date of grant of option           vests
 
 Directors
 
 Sh. J.K. Baid and Sh. D.R. Mehta, retire by rotation at the ensuing
 Annual General Meeting and being eligible offer themselves for
 re-appointment.
 
 Brief resume of the aforesaid Directors are furnished in the Corporate
 Governance Report.
 
 Human Resources Management
 
 Employees are vital and most valuable assets. The Company has created a
 favorable work environment that encourages innovation and meritocracy.
 Yours Directors wish to place on record their sincere appreciation for
 the excellent spirit with which entire team of the Company worked at
 all plants and offices and achieved commendable progress.
 
 Corporate Governance
 
 Your Company remains committed to maintain the best standards of good
 Corporate Governance practices and adhere to Corporate Governance
 requirements set out by SEBI.
 
 The report on Corporate Governance along with a certificate from Sh.
 B.K. Sethi, Practicing Company Secretary confirming compliance of
 conditions of Corporate Governance as stipulated in Clause 49 of the
 Listing Agreement of Stock Exchange is also annexed and forms part of
 the Annual Report.
 
 All Board Members and Senior Management Personnel have affirmed
 compliance with code of conduct as applicable to them for the year
 ending March 2011. A declaration to this effect is signed by Sh.
 Himanshu Baid, Managing Director, is annexed to this Report.
 
 Management Discussion and Analysis Report
 
 The Management Discussion and Analysis Report on the operations of the
 Company, as required under the Listing Agreement with the Stock
 Exchange is provided in Annexure-I forming part of Directors'' Report.
 
 Particulars of Conservation of Energy, Technology Absorption and
 Foreign Exchange Earnings and Outgo
 
 Particulars with respect to conservation of energy, technology
 absorption, foreign exchange earnings and outgo as required under
 Section 217(1)(e) of the Companies Act, 1956 read with the Companies
 (Disclosure of Particulars in the Report of Board of Directors) Rules,
 1988 are given in Annexure II and forming an integral part of this
 Report.
 
 Particulars of Employees
 
 A statement showing the particulars of employees, pursuant to Section
 217(2A) of the Companies Act, 1956 read with the Companies (Particulars
 of Employees) Rules, 1975 as amended, is annexed as Annexure III.
 
 Acknowledgement
 
 Inspired by this vision, driven by values and powered by innate
 strengths, your Directors would like to acknowledge and place on record
 their sincere appreciation of the wholehearted support extended by the
 Regulatory and Government authorities, Company''s Shareholders and other
 stakeholders customers, vendors, bankers, employees and all other
 business partners for their continued co-operation and excellent
 support received during the year.
 
                    For and on behalf of the Board of Directors
 
                    D.R. Mehta                Himanshu Baid
                    Chairman                  Managing Director
 
 New Delhi 
 30th July 2011