The Directors take pleasure in presenting the 22nd Annual Report on
 the business & operations of the company and Audited Statement of
 Accounts for the year ended 31st March, 2012 along with the Auditor''s
 Report thereon.
 
 FINANCIAL RESULTS
 
                                          Rs. in Lakhs
 
 Particulars                2011-2012        2010-2011
 
 Net Sales / Income           2915.29          1001.21
 
 Total Expenditure            2513.56           761.74
 
 Gross Operating Profit        401.73           239.47
 
 Interest and                   61.87            71.47
 Finance Charges
 
 Forex Gain/Loss              1417.24           116.05
 
 Depreciation                   37.73            35.16
 
 Profit before Tax            1719.36            16.79
 
 Provision for Tax             557.85             3.11
 
 Net Profit                   1161.51            13.68
 
 OPERATIONS
 
 The Directors report that during the year under review the total income
 was Rs.2915.29 Lakhs as against Rs.1001.21 Lakhs in the previous year
 and the Net Profit for the year was Rs.1161.51 Lakhs as against
 Rs.13.68 Lakhs for the previous year.  There was a forex gain of
 Rs.1417.24 lakhs due to which the profit had gone up. During the year,
 the company has incurred an amount of Rs.260.35 lakhs on ongoing
 product development and Rs.  135.57 Lakhs on Fixed Assets as against
 Rs.286.01 lakhs and Rs. 64.33 Lakhs respectively in 2010-11.
 
 It has been a year of significant innovation and product development.
 It has been a year where the value of innovation is sadly not
 recognized in due terms and we believe that this lack of acknowledged
 value being unfairly reflected in the stock price of your company. We
 site an example of our oral insulin technology which has immense value,
 among few others, such lack of recognition.
 
 TrabOrln - An innovative formulation for oral delivery of Insulin
 
 We have been able to unravel the mysteries surrounding the successful
 delivery of insulin by oral route which has been eluding several
 companies across the world. Transgene has developed an oral insulin
 formulation with a goal to provide the most preferable method to
 control diabetes in the type 2 and segments of the type 1 populations.
 TrabOrln eliminates the need for painful injections and expensive
 healthcare professionals for insulin administration, improves patient
 compliance (through greater convenience of administration), offers a
 sustained release of insulin over a prolonged period, and also
 eliminates the ''peaks-and-troughs'' in serum profiles observed in both
 type 1 and 2 diabetic patients (which often leads to a number of other
 severe symptoms).
 
 Diabetes and the problems of Sub- Cutaneous Delivery
 
 Diabetes is the world''s fastest growing chronic disease and currently
 affects over 250 million people worldwide, a number expected to rise to
 380 million by 2025. According to the World Health Organization, type 2
 diabetes accounts for 85-95% of all diabetes worldwide. Global Data
 analysis shows that the global type 2 diabetes therapeutics market was
 worth .7 billion in 2011. By 2020, the market is expected to be
 worth .1 billion, indicating a Compound Annual Growth Rate (CAGR) of
 7.4% between 2011 and 2020.
 
 Insulin therapy has evolved in the last century from using bovine (or
 porcine) insulin to recombinant human insulin and more recently
 recombinant insulin analogues, which represent the 3rd generation of
 human insulin. Treatment of diabetes generally involves thrice daily
 monitoring of blood glucose levels and injection of insulin, sometimes
 four times per day, for the rest of the patient''s life. With factors
 including needle- phobia, there is a relatively high rate of non-
 compliance in diabetic patients, in-turn leading to improper treatment
 and the development of undesirable sequelae. Even for ''compliant''
 patients, strict glycaemic control is often difficult to achieve
 because of variable release from the site of injection which also
 depends upon the adiposity of the injection site - again leading to a
 high variability between and within individuals.
 
 Insulin therapy commonly results in weight gain in both type 1 and type
 2 diabetes. This weight gain can be excessive, adversely affecting the
 patient''s cardiovascular risk profile. This is often attributed to the
 ''non-physiological'' pharmacokinetic and metabolic profile following
 sub-cutaneous administration. Thus, injected insulin avoids the
 first-pass metabolism, wherein large quantities of insulin are
 available to stimulate adipocytes and increase glucose and lipid uptake
 into these cells. High local concentrations of insulin result in
 lipodystrophy, due to areas of local down- regulation of insulin
 receptors in adjacent adipocytes.
 
 TrabOrln is a proprietary nano-encapsulated formulation that
 effectively and efficiently delivers the required dosage of insulin
 into the bloodstream, in a sustained release that avoids the crests and
 troughs of blood glucose levels that many diabetes patients suffer from
 via subcutaneous insulin injections. TrabOrln , which has the capacity
 to deliver far greater quantities (dosages) of insulin has demonstrated
 a remarkable reduction in the blood-glucose levels in studies conducted
 at two different centers in 2012. The TrabOrln formulation utilizes
 naturally occurring ''molecule-specific pathways'' to pass through the Gl
 and deliver its payload of insulin.
 
 It is with a sense of pride and satisfaction we submit to you the
 highly exciting results on this novel formulation conducted at two
 different centers. This enables us to file USFDA''s fast track
 (505(b)(2)) application and aim for clinical development and
 commercialization within 3 years.
 
 TBL-0306
 
 TBL-0306 is a monoclonal antibody drug effective against three
 different targets - Colon cancer, Non- Hodgkins Lymphoma and Multiple
 myeloma.
 
 TBL-0306 has been developed to target a sub- family of TNFRSF that is
 expressed on the cell surface of Multiple Myeloma, Colon Cancer and
 NHL, but has no expression on normal cells.
 
 Target was identified and validated over a period of 3 years by
 studying patient databases from numerous cancer hospitals in the USA,
 ensuring a high success rate.
 
 An immunogenic peptide epitope was then engineered from the specific
 TNFRS antigen.  Finally, Transgene generated mAbs specifically targeted
 at the above engineered peptide.
 
 Binding assays confirmed attack of TBL-0306 on Non-Hodgkin''s Lymphoma,
 Multiple Myeloma, and Colon cancer cells. ADCC, CDC and Apoptosis
 assays confirmed cancer cell killing by the chimerized TBL-0306.
 
 TBL-0306 is now progressing towards INDA enabling studies following the
 completion of humanization.
 
 TBL-0404 Liver Cancer Drug
 
 Hepatocellular carcinoma (HCC) is a primary malignancy of the
 hepatocyte, generally leading to death within 6-20 months.
 Hepatocellular carcinoma frequently arises in the setting of cirrhosis,
 appearing 20-30 years following the initial insult to the liver.
 However, 25% of patients have no history or risk factors for the
 development of cirrhosis. The extent of hepatic dysfunction limits
 treatment options, and as many patients die of liver failure as from
 tumor progression.
 
 Hepatocellular carcinoma is the fifth most common cancer in men and the
 eighth most common cancer in women worldwide. An estimated 560,000 new
 cases are diagnosed annually. The incidence of hepatocellular carcinoma
 worldwide varies according to the prevalence of hepatitis B and C
 infections. Areas such as Asia and sub-Saharan Africa with high rates
 of infectious hepatitis have incidences as high as 120 cases per
 100,000.
 
 Emerging evidence strongly suggests a critical role played by
 miRNA-mRNA interaction in the initiation and progression of human
 cancers. It is even possible to categorize tumor types and their origin
 by virtue of their miRNA profiles. The role of miRNAs in human cancer
 is further supported by the fact that over 50% of miRNA genes are
 located at fragile genomic loci that are frequently altered by
 deletions and amplifications.
 
 In Hepatocellular Cancer (HCC), the most common form of Liver Cancer,
 it is estimated that roughly 37% of miRNA genes have alterations in the
 DNA copy number at genomic loci. Several studies identified
 abnormalities in miRNA expression due to either gain or loss of gene
 copy number that were unique to HCC. Over-expression or under
 expression of certain miRNAs have been shown to be specific for HCC.
 
 TBL-0404 is an miRNA identified by Transgene whose expression is
 down-regulated in liver cancer, that is delivered by TRABI-AAV.
 TBL-0404 has been shown to negatively regulate the cancer epigenome by
 directly targeting a metastasis specific gene in liver cancer. TBL-0404
 represents the forced expression of the specific miRNA by our
 proprietary AAV vector.
 
 Investigations by TBL have shown that TBL-0404 suppresses HCC cell
 growth, proliferation and invasion in-vitro and tumor forming ability
 in-vivo
 
 TBL-0905 Breast Cancer Drug
 
 Breast cancer is by far the most frequent cancer among women with an
 estimated 1.38 million new cancer cases diagnosed in 2008 (23% of all
 cancers), and ranks second overall (10.9% of all cancers). 1 in 10 of
 all new cancers diagnosed worldwide each year is breast cancer and is
 the most common cancer in women in both developing and developed areas.
 Incidence rates vary from 19.3 per 100,000 women in Eastern Africa to
 89.7 per 100,000 women in Western Europe, and are high (greater than 80
 per 100,000) in developed regions of the world (except Japan) and low
 (less than 40 per 100,000) in most of the developing regions. It is
 also the principle cause of death from cancer among women globally.
 
 TBL-0905 is a novel shRNA that targets a gene critical for the
 progression and metastasis of Breast Cancer. The target gene is
 abnormally over- expressed in Breast Cancer cells and absent in normal
 cells.
 
 TBL-0905 is targeted at metastatic Breast Cancer, and delivered by
 TRABI-AAV. Transgene has cloned the required Adenoviral genes in a
 plasmid, and hence no adenoviral contaminations in the purified AAV.
 Our work has shown that TBL-0905 promotes apoptosis and inhibits
 motility of breast cancer cells In Vitro.
 
 In in-vivo animal studies, the drug demonstrated remarkable tumour
 regression (>75%) at the end of 8 weeks.
 
 CoBenCo-TD
 
 CoBenCo-TD is a blend of derivatives / analogues of Vitamin B12,
 Vitamin D and Curcumin, delivered via Transgene''s unique patented
 technology called TrabiDerm , which transforms the formulation into a
 micro-emulsion that is designed to be applied topically. It is a
 water-in-oil microemulsion technology that is novel and innovative, a
 new concept in getting water soluble molecules through the skin.
 
 CoBenCo-TD is a unique non-steroidal anti- inflammatory drug, a
 patented micro-emulsion consisting of derivatives / analogues of
 Vitamin B12, Vitamin D and Curcumin.
 
 CoBenCo-TD has demonstrated in carrageenan mouse models a reduction of
 inflammation by >70% within 72 hrs.
 
 CoBenCo-TD has already passed toxicology test on rats.
 
 CoBenCo-TD has 100% drug incorporation with >60% bioavailability.
 
 CoBenCo-TD is targeted against inflammatory conditions such as
 Oste-arthritis, Rheumatoid
 
 — I
 
 arthritis and skin conditions such as Allergy, Psoriasis, Eczema and
 also in other inflammatory conditions such as Alveolitis and Pulmonary
 fibrosis and Diabetic neuropathy.
 
 CoBenCo-TD has application in individuals with deficient in vitamin
 B12, or vitamin D both increasing in epidemic proportions.
 
 CoBenCo-TD can be administered to animals too
 
 - dogs, cats etc devoid of any side effects, as generally seen with
 standard anti-inflammatory drugs.
 
 CoBenCo-TD ''s unique platform is employed in developing another
 exciting drug against neuro- degenerative diseases such as Multiple
 Sclerosis (MS) & Parkinson''s.
 
 TBL-1203 AIDS (Therapeutic) Vaccine
 
 Since the first report in 1981, more than 67 million persons have been
 infected with HIV, and more than 27 million have died of AIDS. More
 than 40% of new infections worldwide occur among adults in the age
 range of 15-24 years. In fact, AIDS is now the leading cause of
 premature death among people 15 to 59 years of age.
 
 While the research for an effective HIV vaccine continues, which might
 take few years to completely realize, there is immediate need for an
 efficient alternative treatment besides the present antiretroviral drug
 therapies for treatment of HIV infected persons. Though the current
 antiviral drug treatments are effective in controlling the HIV
 replication to a large extent, are ineffective in mounting the HIV
 specific, especially envelop specific (gpl20) CD4  Thl responses, which
 are proven to be essential for complete viral clearance.
 
 HIV/AIDS remains both a medical and economic challenge in developing
 countries especially in Sub-Saharan Africa. Unfortunately, after nearly
 30 years of research there are still three compelling facts driving the
 development of new anti-AIDS drugs and delivery systems:
 
 i) there is a lack of an effective vaccine or prophylactic agent that
 would provide protection for the foreseeable future,
 
 ii) there is a constant need for both less expensive and more tolerable
 drug therapies, and
 
 iii) the development of resistant viral strains in
 treatment-experienced patients continue. The late Dr. Paul Janssen
 described four ideal characteristics of a novel anti-HIV drug.
 
 The drug must possess:
 
 i) high antiviral activity against both wild- type and mutant virus,
 thus a drug must be effective despite the genetic flexibility of the
 virus and it must anticipate resistant strains that may develop once
 therapy is initiated,
 
 ii) high oral bioavailability and a long elimination half-life to allow
 for once daily dosing, which is considered the gold standard of any
 therapy,
 
 iii) have minimal adverse effects, which will ultimately impact patient
 compliance, and;
 
 iv) be easy to synthesize and formulate into dosage forms, which
 ultimately impact the cost of the drug for both the manufacturer and
 the patient. However, the development of drugs that meet these criteria
 is an arduous task.
 
 TBL 1203 - a novel therapeutic vaccine against AIDS
 
 TBL 1203 is conceptually designed to restore gpl20 specific Thl
 responses (which have the potential to control HIV) in HIV infected
 persons through selective abrogation of gpl20 antibody producing B
 cells so that the immune responses will shift towards Thl type from
 previously Th2 type.
 
 TBL 1203 is an immune-toxin constructed by recombinant technology that
 specifically targets and kills the gpl20 antibody producing B cells.
 Removal of these B cells and hence the gpl20 specific antibodies
 through this immune correction mechanism will have many positive
 effects.
 
 Retroviral drugs limit HIV replication but do not eliminate the virus
 as they do not restore the cell mediated attack mechanism on the virus.
 Hence, the virus bounces back once treatment is discontinued.
 
 TBL 1203 focuses on the restoration of gpl20 specific Thl responses
 (which have the potential to control HIV) in HIV infected persons.
 
 TBL 1203 targets selective abrogation of gpl20 antibody producing B
 cells, (that express anti- gpl20 Abs on their surface) so that the
 immune responses shift towards Thl type from the previous Th2 type.
 
 The cytotoxin (CTx) targets all APC that have anti- gpl20 Ab on their
 surface which would include all those macrophages (which potentially
 are the store of the latent HIV virions) actively involved in
 processing antigen, plus DCs.
 
 The vaccine has demonstrated exciting results during the pre-clinical
 in-house studies by selective killing of only the HIV infected cells -
 This sets it apart from any other existing drugs.
 
 DHA
 
 DHA, an Omega-3 fatty acid is the second biopharmaceutical product
 developed by Transgene and started its commercial production offering
 the product in oil, powder and formulated capsule forms. The marketing
 efforts over the last 6-8 months have started to yield the expected
 results from Q2 of 2012-13''onwards.
 
 Tacrolimus
 
 Tacrolimus is a powerful immune-suppressant drug, the technology for
 the manufacture of this is being developed by the scientists of
 Transgene.  The technology is optimized and the management is looking
 to commence the commercial operations soon.
 
 We are happy to report that we are due to sign a collaborative
 agreement very soon with one of the largest European pharmaceutical
 companies for the manufacture and marketing of this drug throughout
 Europe, USA and South American countries. The management is
 simultaneously exploring the possibility for a similar tie-up with
 another pharma company for manufacturing and marketing this drug in the
 rest of the world.
 
 Intellectual property and patents: We have been active in filing
 several non-provisional patents in continuity and in addition to our
 existing provisional patents based on the advances made in each drug
 under development supported by the in-vitro and in-vivo data generated
 during the year.
 
 Expansion of scientific staff: In line with the expansion of
 manufacturing operations and with advancing R&D milestones, several new
 and experienced employees have been added while few others have been
 replaced by qualified and experienced leaders.
 
 DIVIDEND
 
 In spite of increased profits keeping in mind of the fund requirement
 for the advancement of product development which is at inflection point
 for several projects your Directors are unable to recommend any
 dividend.
 
 GROWTH PLANS AND OUTLOOK
 
 A recent trend is seen in the pharma and biotech sector with a focus on
 emerging markets.  Companies like Mylan, Pfizer, Merck, Eli Lilly,
 Glaxo and Sanofi are all looking to expand their presence in India,
 China, Brazil and other emerging markets.  Until recently, most of the
 commercialization efforts were focused on the US — the largest
 pharmaceutical market — along with Europe and Japan.
 
 Emerging markets are slowly and steadily gaining more importance and
 several companies are now shifting their focus to these areas.
 According to the IMS Institute, spending on medicines in the emerging
 markets will almost double to 5 billion - 5 billion in five years
 from 4 billion in 2011.
 
 As far as developed nations are concerned, the IMS Institute expects US
 spending to go up by  billion -  billion (1-4%) in the next five
 years.  The introduction of medicines targeting unmet
 
 needs and higher patient access resulting from Obamacare are expected
 to drive growth.
 
 However, growth in Europe will continue to be pressurized by austerity
 and cost-containment measures. According to the IMS Institute, growth
 in Europe will range from negative 1% to positive 2%. The Japanese
 market is expected to grow at a slower pace annually (1-4%) through
 2016 compared to the last five years.
 
 Outlook for future
 
 The biotechnology industry has emerged as a major growth area in the
 global healthcare industry. Since its emergence in the 1970s,
 biotechnology industry has shown tremendous growth to reach
 approximately  billion in 2008.
 
 According to Ernst and Young, the biotechnology industry in India stood
 at  billion for Financial Year 2010-11. Indian biopharmaceutical
 industry constitutes 60% of the biotech industry and grew at 21% y-o-y
 to reach .3 billion in 2010-11, which is approximately 15% of the
 Indian pharmaceutical industry. Vaccines, insuJin, erythropoietin and
 monoclonal antibodies have been the mainstay of the biopharma segment.
 
 The key concerns that puts Indian biotech at '' critical juncture -
 Indian companies are not able to launch new product at regular pace in
 the domestic market, multiple regulatory bodies resulting delays,
 companies facing funding constraints as investor community shied away
 from early stage ventures, no optimal trained manpower to cater the
 biotech industry demand and most of the biotech parks across the
 country are not congenial for pure-play biotech manufacturing
 companies.
 
 India is already facing stiff competition from China, Korea,
 Singapore, and more recently Malaysia, in terms of attracting
 investments from MNCs. said Ajit Mahadevan, Partner, Ernst & Young
 adding that this has been mainly due to the better technological and
 scientific competence, better infrastructure, tax and duty exemptions,
 and easier regulatory procedures of these countries compared to India.
 
 Oncology and infectious diseases are the high growth therapeutic areas
 that will drive the growth of the biotechnology industry. The
 biotechnology industry pipeline mainly comprises of products for
 oncology (35%), infectious diseases including HIV (28%) and others
 (37%).  Oncology constitutes a significant part of the pipeline
 portfolio for most of the biotech companies. Other important focus
 areas for the top biotechnology companies include, infectious diseases
 and CNS disorders. According to GBI Research''s analysis, the oncology
 based sales will potentially value approximately .8 billion in 2015.
 
 Innovation
 
 At Transgene, we have always believed that innovation is the best way
 to build a global organization that delivers outstanding results.
 
 Today, Transgene has a pipeline of more than six molecules in
 development - both novel bio- technology and bio-generic drugs, some of
 them such TrabOrln and mAb and SiRNA drugs being first-in class
 globally. At Transgene, innovation is the key word repeated often,
 developing new processes, innovating new technology platforms that spin
 out new and novel products.
 
 The company''s strategy builds on evolving these candidates to a stage
 of strategic partnerships or out-licensing them at ari appropriate
 phase of the development. In the therapeutics area, commercialization
 of some of these technologies combined with strategic partnerships for
 manufacturing and marketing of bio-generic drugs provides secure cash
 flows from long-term partnerships with large pharmaceutical companies.
 
 Strategic partnerships with established CRO companies within and
 outside India for advancing the novel drug pipeline accelerate the
 process for regulatory approvals in India, Europe and North America.
 
 Strategic Outlook
 
 We may need to raise significant amounts of additional capital that may
 not be available to us.
 
 We expect to make additional capital outlays and to increase operating
 expenditures over the next several years as we hire additional
 employees and support our preclinical development, manufacturing and
 clinical trial activities, as well as commercialize TrabOrln '' TBL 0306
 etc and position our other product candidates for potential regulatory
 approval and commercial sale. Although some of these expenditures
 related to TrabOrln and TBL 0306 are expected to be shared with our
 potential partners, and we expect to offset some of these costs with
 sales or out-licensing proceeds of TrabOrln , we may need to raise
 significant amounts of additional capital. We may seek additional
 funding through public or private financings, including equity
 financings, and through other means, such as collaborations and license
 agreements.
 
 If adequate funds are not available to us when we need them, we will be
 required to delay, reduce the scope of or eliminate one or more of our
 development programs, which may adversely affect our business and
 operations. Our future capital requirements will depend upon a number
 of factors, including:
 
 the rate of progress and cost of the confirmatory studies that we are
 required to conduct as a condition to the FDA''s accelerated approval of
 TrabOrln the time and costs involved in obtaining regulatory approvals
 of TrabOrln in other countries;
 
 the size, complexity, timing, and number of our clinical programs
 involving other drug candidates;
 
 our receipt of milestone-based payments or other revenue from our
 collaborations or license arrangements;
 
 progress with clinical trials;
 
 the costs associated with acquisitions or licenses of additional
 products, including licenses we may need to commercialize our products;
 
 the terms and timing of any future collaborative, licensing and other
 arrangements that we may establish;
 
 the costs involved in preparing, filing, prosecuting, maintaining and
 enforcing patent claims;
 
 the timing and cost of milestone payment obligations as our product
 candidates progress towards commercialization; and
 
 competing technological and market developments.
 
 EMPLOYEES STOCK OPTION SCHEME
 
 The employee stock option scheme has not been implemented so far.
 
 DIRECTORS
 
 Sri P Narayana Murthy and Sri S S Marthi retire by rotation and being
 eligible offer themselves for re-appointment.
 
 ISSUE OF GDRs
 
 The company was able to successfully issue further 2500000 GDRs @ USD 7
 per GDR which were fully subscribed. The underlying shares of 25000000
 Equity Shares of Rs.10/- each were listed on the Bombay Stock Exchange
 Limited w.ef.  4th April, 2012. .
 
 FIXED DEPOSITS
 
 The company has not accepted any Fixed Deposits and the provisions of
 section 58A of the Companies Act, 1956 are not applicable to the
 Company.
 
 AUDITORS
 
 M/s Sarath & Associates, Chartered Accountants, Statutory Auditors of
 the Company retire at the ensuing Annual General Meeting and are
 eligible for reappointment.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 As required under the Companies Act, 1956, your Directors wish to
 state:
 
 (a) That in the preparation of the Annual Accounts, the applicable
 accounting standards have been followed.  
 
 (b) That the Directors had selected such accounting policies and
 applied them consistently and made judgments and estimates that are
 reasonable and prudent, so as to give a 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; ,
 
 (c) That the Directors had taken proper and sufficient care 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.
 
 (d) That the Directors had prepared the annual accounts for the year
 ended 31st March 2011 on a going concern basis.
 
 CORPORATE GOVERNANCE
 
 Pursuant to clause 49 of the listing agreement, your Company has taken
 adequate steps to ensure that all mandatory provisions of corporate
 Governance as prescribed under the listing agreement of the Stock
 Exchange with due compliance of all the applicable laws, rules and
 regulations. A separate report on Corporate Governance and the
 Auditor''s certificate on its.  compliance are annexed hereto and forms
 part of this Annual report.
 
 EMPLOYEE RELATIONS
 
 The key to our success is to develop core values within all of our
 staff which lead to an environment where they believe that what they
 are doing is making a difference. The core values with which we operate
 are participation, achievement, trust and respect, innovation and
 enthusiasm.
 
 Transgene recognises that in an industry based on innovation and
 research and development, its employees are some of its biggest assets
 and it seeks to communicate and, where appropriate, consult with them
 on matters affecting them as employees, in the correct manner.
 
 Transgene provides training and development appropriate to individual
 needs and offers remuneration packages (including pensions, permanent
 health and life insurance) and a working environment that are designed
 to be both fair and competitive with larger companies within the
 industry.
 
 There is no employee whose particulars are to be furnished pursuant to
 the provisions under Section 217 (2A) of the Companies Act, 1956 read
 with the Companies (Particulars of Employees) Rules, 1975 as amended by
 the Companies (Amendment) Act, 1988.
 
 CONSERVATION OF ENERGY, ENVIRONMENT, TECHNOLOGY ABSORPTION AND FOREIGN
 EXCHANGE
 
 A.  Conservation of Energy, Power and Environment:
 
 We are committed to minimising the impact of our activities on the
 environment and energy efficiency is the most important means of
 climate protection currently available to the company.  Efforts-for
 conservation of energy and fuel consumption are ongoing processes in
 the Company and every effort is made in that direction.  .
 
 B.  Research & Development:
 
 The Company''s R&D division continues to be recognized and certified
 under DSIR guidelines.  The company fosters the development of
 molecules owned/ co-owned by Transgene Biotek Ltd, in terms of finding
 right CROs in India, US and Europe based on their capabilities,
 overseeing, analysis and monitoring of information on in-vivo efficacy/
 toxicology studies being conducted within or outside India.
 
 C.  Foreign Exchange Earnings : Nil
 
 D.  Foreign Exchange Outgo : 3,30,57,704 ACKNOWLEDGEMENTS
 
 Our employees remain crucial to the success of Transgene and it is
 their skill and expertise that have enabled us to achieve our progress
 to date.  This has been recognised at various meetings where, over the
 past twelve months, Transgene has made presentations on its drug
 development pipeline.
 
 We are committed to the development of a motivated and professional
 workforce in order to build a business that is constantly looking to
 innovate and evolve. On behalf of the Board, we thank all our staff for
 their hard work and continued support and commitment.
 
 Your Directors wish to place on record their gratitude to the
 Government authorities, for the support and co-operation received from
 M/S Union Bank of India, Bankers of the company, Shareholders,
 Auditors, Customers, vendors, business associates and Staff of the
 Company for their valued support during the year under review.
 
                                                  By order of the Board
 
                                           For TRANSGENE BIOTEK LIMITED
 
                                                                   Sd/-
 
                                                   Dr. K. Koteswara Rao
 Place: Hyderabad                                            CHAIRMAN &
 Date: 03-09-2012                                     MANAGING DIRECTOR