200909 - Quarter 2

Status of Investor Complaints for the quarter ended September 30,
2009

Complaints Pending at
the beginning of the quarter		Nil

Complaints Received during
the quarter
				06

Complaints disposed off during the quarter
			06

Complaints unresolved at the
end of the quarter 		Nil

1. The Company is essentially in the
pharmaceutical business
segment.

2. The paid-up equity share capital stands increased
to Rs.160.58 crores
(80,29,21,357 equity shares of Rs.2 each) upon allotment of
2,56,30,000 equity shares of Rs.2 each
issued at a price of Rs.263.75 (including premium of Rs.261.75) under
Qualified Institutions
Placement (QIP) during the quarter.

3. The Company and other
manufacturers have challenged
the inclusion of five drugs i.e Salbutamol, Theophylline,
Ciprofloxacin, Cloxacillin and
Norfloxacin within the ambit of price control. The Bombay High Court
held in favour of the Company
that the drugs are outside the ambit of price control. However, on
appeal, the Supreme Court has
remanded the matter to the Bombay High Court to be reexamined in the
light of certain directions
and principles laid down by the Supreme Court. The matter is still
pending in the Bombay High
Court. The Supreme Court also stayed the recovery of amounts demanded
from the Company and other
petitioners but gave liberty to the government to recover 50% of the
alleged overcharged amounts.
In a separate writ petition filed before the Allahabad High Court,
the Company had challenged the
price fixation notifications in respect of formulations of the
aforementioned and other drugs like
Doxycycline, etc. The Allahabad High Court had ruled that all the
said price fixation notifications
were ultra vires, illegal and void. The government has filed an
appeal against this judgement which
is pending in the Supreme Court. The Supreme Court has stayed the
judgement of the Allahabad High
Court but directed that no prosecution can be launched or coercive
action taken against the Company
for recovery of any amount in respect of these drugs till the appeal
has been finally decided. The
Company has been advised that as a result of the order of the Supreme
Court, the Company cannot be
compelled to make payment of any amounts demanded in respect of these
drugs. Despite the
aforementioned order of the Supreme Court, the government has issued
various demand notices from
time to time in respect of these very drugs demanding various amounts
including interest for
varying periods. The total amount demanded as of date including
interest, amounts to Rs.1136.96
crores. The Company has received legal advice that none of the demand
notices of the government is
tenable, sustainable or payable and the Company has also informed the
same to the
government.

4. The figures of the previous year have been
regrouped/recast to render them
comparable with the figures of the current year.

5. The above
results after being reviewed
by the Audit Committee were approved at the meeting of the Board of
Directors held on October 28,
2009.

Dr. Y. K. Hamied
Chairman & Managing Director