Dear Valued Shareholders,
 
 I am happy to communicate with you the progress made by your company
 during the year 2012. We had our share of achievements, opportunities
 and challenges. Overall, it was a satisfying year and we achieved
 consolidated global sales of US$ 2.3 billion, surpassing our guidance.
 Ranbaxy will continue with its best efforts to further strengthen the
 quality assurance and control processes, with the ultimate purpose of
 delivering quality medicines worldwide. I frmly believe that this must
 be the bedrock of the pharmaceutical business.
 
 Our performance was good in both, the developed and emerging markets.
 We believe the emerging markets will continue to offer opportunities in
 the coming years. With a strong presence in these markets, your company
 is well poised to capitalise on this trend.
 
 In my last year''s message, I had stated that your company will be
 embarking on a new journey, laying the foundation for a new Ranbaxy.
 To emerge as a leading global enterprise, we have to be alive to the
 realities around us and remain relevant and contemporary. In order to
 adapt to the rapidly changing business dynamics and meet the growing
 needs of humanity, we are taking several steps to build a splendid
 future for Ranbaxy - a future that will be single mindedly driven by
 one philosophy - ''Quality and Patients First''.
 
 It is our global commitment to develop and offer high quality medicines
 and make them available, accessible and affordable to people around the
 world. We are encouraging a culture that will foster world class
 business practices to ensure that our products are safe, effective and
 compliant with internationally accepted good practices.
 
 I believe that a pharmaceutical company should always explore
 innovative models to serve the entire spectrum of customers.  At
 Ranbaxy, we relentlessly think about how we can provide both generic
 and innovative medicines to serve the needs of patients. Our hybrid
 business model with Daiichi Sankyo is unique as it embraces the
 strengths of Ranbaxy, a global generic company and Daiichi Sankyo, a
 leading global innovator.  Today, Ranbaxy is among the very few global
 generic companies that offers a basket of both, generic and innovator
 medicines.  This collaboration is maturing and will emerge even
 stronger.
 
 One of the defning moments for Ranbaxy in 2012 was the launch of
 SynriamTM, India''s frst new drug for the treatment of malaria. The
 drug, currently available in India, has established itself as the
 preferred option in the hands of doctors to fght malaria, which claims
 more than half a million lives worldwide each year. Science and
 innovation is the elixir of our growth and we will continue to develop
 more such new and novel medicines for the beneft of patients.
 
 After a gap of four years, we resumed supply of drugs from India to the
 US, from our manufacturing plant at Mohali, Punjab, India.  The product
 exported was Atorvastatin tablets. The resumption of supplies from
 India to the US market was an important milestone in rebuilding the
 business in the US.
 
 Ranbaxy''s generic Atorvastatin, launched in November 2011 has helped
 millions of Americans manage healthy cholesterol levels.
 Unfortunately, in November 2012, we had to recall the product from the
 US market due to some quality issues in select batches.  Because of our
 uncompromising commitment to quality and patients, we proactively took
 the decision to inform the US Food & Drug Administration (FDA) and
 initiated a voluntary recall of the product. We have since conducted
 our investigations and shared the fndings with the US FDA. Multiple
 Corrective and Preventive Actions (CAPA) have been implemented to avoid
 recurrence of such problems in the future. We have now resumed the
 supply of Atorvastatin to the US market.
 
 Serving the disadvantaged sections of the community has been an
 important motto of your company. As a responsible corporate citizen, we
 have been working for over three decades to make a meaningful and
 lasting positive social impact. ''Maatra Shishu Swasthya Seva'' (Mother &
 Child Health Service), a joint social initiative of Daiichi Sankyo and
 Ranbaxy, to reduce child mortality, improve maternal health and combat
 HIV/AIDS, malaria and other diseases in the rural areas of District
 Dewas, Madhya Pradesh, India, is progressing in the right direction.
 This initiative is aligned with the United Nations Millennium
 Development Goals.
 
 Two well-equipped mobile healthcare vans cover several villages in
 District Dewas. These vans provide clinical and diagnostic services
 including free dispensing of medicines.
 
 Additionally, your company, under the aegis of Ranbaxy Community
 Healthcare Society, operates 16 well-equipped mobile healthcare vans.
 We are also working closely with the Government and reputed
 Non-Government Organisations in India to extend our reach and service.
 Today in our own humble way, we are touching the lives of around
 6,50,000 people spread across 345 villages and urban slum areas in the
 Indian states of Punjab, Haryana, Himachal Pradesh, Madhya Pradesh and
 Delhi.
 
 The year 2012 marked the 60th anniversary of the establishment of
 diplomatic relations between India and Japan, the two great nations,
 that have a rich heritage and culture. To commemorate this historic
 occasion, Ranbaxy hosted a unique exhibition of Nihonga style paintings
 by Prof. Kokyo Hatanaka, an eminent Japanese artist whose paintings
 have a profound Indian infuence.
 
 Your company has always believed in a sound Code of Corporate
 Governance as a tool for establishing the highest standards of
 management and business integrity. This Code guides us to make informed
 decisions and policies in the best interests of the company as well as
 shareholders and all other stakeholders. As a measure of good corporate
 governance, Ranbaxy has constituted a Nomination Committee of the Board
 of Directors. The Committee will formulate, inter-alia, the criteria
 for determining qualifcations, positive attributes and independence of
 a Director and evaluate the performance of Directors. This will further
 ensure transparency and uniformity of decision making in all processes
 and actions.
 
 Employees are one of our critical assets and the cornerstone of our
 future growth. I deeply appreciate the consistent and sincere hard work
 of all my fellow Ranbaxians, who have once again risen to the occasion
 and demonstrated tremendous grit and determination in overcoming the
 challenges faced by the company and turning the tide in our favour.
 Going forward, there will be even greater focus on building a
 high-performance culture that nurtures excellence, collaboration and
 greater team spirit with a view to shaping an organisation that is more
 nimble and responsive.
 
 In the coming years, you will see a good measure of strategic changes
 in Ranbaxy aimed at transforming the company into a more proftable and
 sustainable global enterprise. We will deploy our resources in building
 intellectual capital, improving processes and systems, capacities,
 infrastructure and in exploring markets that will further build and
 strengthen our future.
 
 I, on behalf of the Board of Directors, would like to take this
 opportunity to thank all our shareholders for the trust and cooperation
 extended in making Ranbaxy a leading generic pharmaceutical company.
 The Board values the interest of all its shareholders and is especially
 cognizant of the interest of the minority shareholders. I would like to
 reassure you that the Board remains committed in building a stronger
 Ranbaxy that will create value for you and all the other stakeholders.
 
 On behalf of the Board, I would like to thank the Ranbaxy leadership
 team led by Mr. Arun Sawhney for steering the company through these
 challenging times.
 
 My best wishes to all of you.
 
 Sincerely,
 
 Dr. Tsutomu Une 
 
 Chairman