Lupin AR 2010 - High Res - BBL

Spine has to adjusted by the printer at his end
2010
the science and art of Lupin
GO!

give me six hours to

chop down a tree and
I will spend the first
four sharpening
the axe
Abraham Lincoln
LUPIN LIMITED
Corporate Office
Laxmi Towers, 'B' Wing, Bandra Kurla Complex
Bandra (East), Mumbai 400 051
Tel: + 91 22 6640 2222
Fax: + 91 22 6640 2130
Registered Office
159, C.S.T. Road, Kalina
Santacruz (East), Mumbai 400 098
Tel: + 91 22 6640 2323
Fax: + 91 22 2652 8806
Email
investorservices@lupinpharma.com
hocommunications@lupinpharma.com
Website
www.lupinworld.com

1968 Lupin founded by Dr Desh Bandhu Gupta
1980 Lupin commissions formulation plant and R&D centre at Aurangabad

Ethambutol API production started
1992 Injectable Cephalosporins plant commissioned at Mandideep

Fermentation plant set up at Tarapur
1993 Lupin goes public and is listed on major Indian stock exchanges
1997 Three Lupin plants (Mandideep, Tarapur and Ankleshwar) receive

US FDA approval
2001 Lupin Research Park (global R&D hub) commissioned at Pune
2004 Branded business starts in the US with the launch of Suprax®
2005 Generic business launched in the US with five products
2007 Lupin acquires Kyowa Pharmaceutical Industry Company, Japan
2008 Lupin makes acquisitions in Germany, Australia, South Africa and

the Philippines
2009
th
Lupin becomes 8 largest generic company in the US (by Rx's)
Enters Primary Care space in the US with the acquisition of Antara®
Makes it to the Top 5 in the Indian pharmaceutical market
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chairman's message
Lupin is at the tipping

point between its
heritage and its destiny
02
GO!
My Dear Shareowners
Every business strives to create value and achieve success. This however has many interpretations. Some
view it purely financially, others in terms of market share or ability to survive a hostile economic
environment. Over 40 years of operations have taught us many lessons but what remains sacrosanct at
Lupin is the balance between vision and execution, between dreams and hard work, between financial and
human capital. This defines the culture of our company, which we refer to as the science and art of Lupin.
This year's annual report showcases our performance as a billion dollar company. But for me this heralds the
beginning of a new journey, not just a milestone to reflect upon.
As expected, our robust vertically integrated business model is unlocking increasingly higher revenues and
margins and strong sustainable growth. We are outperforming our peers in every global market and therapy
segment we are present in. We have established new beachheads in Europe, Africa and other important
regions like Japan and Australia and we continue to explore and enter new territories to extend our global
footprint. The triad of the US, Europe and Japan shall continue driving our major growth. In addition, our plan is
to develop Lupin's onshore presence in all major pharmerging markets which by 2018 are expected to become
equal to the US and Japan put together.
Our prime focus has always been to consistently exceed customer expectations in terms of quality, value and
service, which is the mantra of our business strategy. Underpinned by years of commitment to each of our
markets and now our investment into proprietary Research & Development, the stage is set for our next phase
of growth as a major global player.
I believe that Lupin is at the 'tipping point' between its heritage and its destiny. We have earned our rights of
passage into the major international arena and our determination and commitment to continue to
outperform has never been stronger.
It is the behaviour of our leadership team and our people, their passion and shared wisdom that defines Lupin.
Together, we have created a business democracy, where entrepreneurship can flourish within a corporate
environment. Where dreams are embraced, unraveled and turned into realities through diligence, discipline
and a strong work ethic.
Against the backdrop of a more realistic and confident world economy, I am sure that we have the assets and
momentum for an exceptional future. When I review our journey so far and look at the road ahead, our
achievements and milestones seem just the preparation for the next chapter in our story. We can say that Lupin
is now truly ready to GO!
With Best Wishes

Dr Desh Bandhu Gupta
Founder and Chairman
Lupin Limited
03 LUPIN Annual Report 2010

LUPIN 2010
Lupin Research Park, Pune 04

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contents
06 Financial Highlights 34 Research & Development

08 Corporate Information 42 Human Resources
10 Managing Director's Review 44 Financial Commentary
14 US & Europe 48 Corporate Social Obligation
20 India 50 Welcome to the Future
24 Rest of the World 52 Five Year Financial Summary
30 Active Pharmaceutical Ingredients 54 Reports and Accounts

LUPIN 2010
Sales (Gross) 47,678
anything worth (INR million)

38,238
doing is worth 20,717

27,730
17,503
doing 100%
Konosuke Matsushita
FY 06 FY 07 FY 08 FY 09 FY 10
Revenue Composition EBIDTA

(%) (INR million)
9,981
16
7,439
6,423
API
4,913
Domestic Formulations
2,977
Emerging Markets 28
Formulations
Advanced Markets
Formulations
49 FY 06 FY 07 FY 08 FY 09 FY 10
7
Profit Before Tax 8,357 Consolidated Net Profit

(INR million) (INR million)
6,816
6,060
5,402
5,015
4,075 4,083
3,086
2,255
1,730
FY 06 FY 07 FY 08 FY 09 FY 10 FY 06 FY 07 FY 08 FY 09 FY 10
06
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financial highlights
Market Break Down

% Contribution
Emerging Markets
Advanced Markets
Exports
(INR million) 5,562
API 22 23 35 47 50
Formulations 5,047
5,260
5,555 4,938
78 77 65 53 50
3,051 5,094 10,032 19,654 26,405
Business Mix Geographic Break Down

% Contribution % Contribution
Formulation Domestic
Exports - Advanced Markets
API Exports - Emerging Markets
27 25 20 18 17
48 39 30 19 16
22 23 35 47 50
52 61 70 81 84
51 52 45 35 33
Earning Per Share (Basic) 楶楤敮

(INR) 79.18 %
135
60.84 125
50.01
100
37.79
65
21.12 50

directors
Dr Desh Bandhu Gupta, Chairman

Dr Kamal K Sharma, Managing Director
Mrs M D Gupta, Executive Director
Ms Vinita Gupta
Mr Nilesh Gupta, Executive Director
Mr K V Kamath, Additional Director
Dr Vijay Kelkar, Additional Director
Mr Richard Zahn, Additional Director
Mr R A Shah
Dr K U Mada
Mr D K Contractor
Mr Sunil Nair (up to May 5, 2010)
Lupin Manufacturing Plant, Indore 08

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corporate information
SENIOR MANAGEMENT TEAM COMPANY SECRETARY & SOLICITORS

Dr. Desh Bandhu Gupta COMPLIANCE OFFICER Crawford Bayley & Co.
Chairman Mr. R. V. Satam
Dr. Kamal K. Sharma
Managing Director BANKERS
Ms. Vinita Gupta Central Bank of India
Group President & AUDITORS
CEO - Lupin Pharmaceuticals Inc., USA Bank of Baroda
Deloitte Haskins & Sells
Mr. Nilesh Gupta Chartered Accountants
State Bank of India
Group President & Executive Director
Citibank N.A.
Mr. Shakti Chakraborty ICICI Bank Limited
Group President - India Region Formulations
Mr. Satish Khanna The Hongkong and Shanghai
Group President - API
AUDIT COMMITTEE Banking Corporation Limited
Mr. Vinod Dhawan Dr. K. U. Mada Standard Chartered Bank
President - AAMLA & Business Development Chairman
The Royal Bank of Scotland N.V.
Mr. Harish Narula Mr. D. K. Contractor
Kotak Mahindra Bank Limited
President - Corporate Development & CIS Dr. Kamal K. Sharma
HDFC Bank Limited
Mr. Naresh Gupta
President - API & Global TB
Dr. Rajender Kamboj
President - Novel Drug Discovery & Development INVESTORS' GRIEVANCES REGISTERED OFFICE
Dr. Ninad Deshpanday COMMITTEE 159, C.S.T. Road,
President - Pharma Research & Development Kalina, Santacruz (East),
Mr. D. K. Contractor
Mr. Ramesh Swaminathan Chairman
Mumbai - 400 098.
President - Finance & Planning Tel:+ 91 22 6640 2323
Dr. K. U. Mada Fax:+ 91 22 2652 8806
Mr. Divakar Kaza
President - Human Resources Development
Dr. Dhananjay Bakhle
Executive Vice President - Medical Research CORPORATE OFFICE
REMUNERATION/
Mr. Debabrata Chakravorty Laxmi Towers, 'B' Wing,
Executive Vice President - Supply Planning & COMPENSATION COMMITTEE
Bandra Kurla Complex,
Strategic Sourcing Dr. K. U. Mada Bandra (East),
Mr. Alok Ghosh Chairman Mumbai - 400 051.
Executive Vice President - Global Dosage Pharma Mr. R. A. Shah Tel: + 91 22 6640 2222
Manufacturing and Quality Assurance
Fax: + 91 22 6640 2130
Mr. Sunil Makharia www.lupinworld.com
Executive Vice President - Finance
Mr. Andrew Macaulay
Executive Vice President - Lupin (Europe) Ltd.
Dr. Sofia Mumtaz
EMAIL
Executive Vice President - IPMG info@lupinworld.com
FORWARD-LOOKING STATEMENT
In this Annual Report, we have disclosed forward-looking information to enable investors to comprehend our prospects
and take informed investment decisions. This report and other statements - written and oral that we periodically make,
contain forward-looking statements that set out anticipated results based on the management's plans and assumptions.
We have tried, wherever possible, to identify such statements by using words such as 'anticipate', 'estimate', 'expects',
'projects', 'intends', 'plans', 'believes' and words of similar substance in connection with any discussion of future
performance.
We cannot guarantee that these forward-looking statements will be realised, although we believe we have been prudent in
assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known
or unknown risks or uncertainties materialise, or should underlying assumptions prove inaccurate, actual results could vary
materially from those anticipated, estimated or projected. Readers should bear this in mind.
We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information,
future events or otherwise.

managing director's review
at the heart of Lupin's

growth story are our people.
We outperform in the
marketplace through the
'outbehavior' of our teams
across the world.
Dr Kamal K Sharma
Managing Director
10
unleashing the power within
Dear Shareholders
As expected, this has been a strong year for the and careful planning. We have a strong, truly world-
Company - one which ushers in a new era in Lupin's class leadership team in place and an
story. For the past 5 years we have been carefully entrepreneurial, democratic and transparent
putting in place the strategic foundations for a robust culture that empowers all our people worldwide to
and, what I believe will be, remarkable future journey. excel and defines 'how we do things at Lupin'.
Over the years, we have targeted and invested in the
higher value segments of the pharmaceutical value MARKET EXPANSION
chain, which now would result in increased Our international business continues to grow and
momentum, consistent growth and better financial increased by 29% in FY 2010 to INR 31,966 million
performance. We have transformed our Company from INR 24,701 million in FY 2009. It is also
into one of the highest growth major players in all the heartening to know that Formulations today
markets and product segments we operate in, across contribute 84% of our overall revenues with the rest
the globe. coming from API's.
In FY 2010, net sales grew by 26% to INR 47,405 Advanced Markets

million (USD 1.1 billion) up from INR 37,759 the US & Europe
previous year. EBITDA margins increased to 21.1% We recorded a stellar performance in the Advanced
from 19.7% in FY 2009 and net profits grew at 36% to Markets of US & Europe. These markets contributed
INR 6,816 million (USD 152 million) compared to INR a healthy 38% of total revenues at INR 17,893
5,015 million in FY 2009. Standing on the shoulders of million, up from INR 12,916 million in FY 2009.
our past performance record, these results deliver
some of the best growth numbers in the industry - Lupin's Generic and Brand business also recorded
29% CAGR in Gross Sales; 45% CAGR in EBITDA and high growth during the financial year. We have
49% CAGR in Net Profits for the last 6 years. A emerged as the 8th largest and the fastest growing
performance that we are determined to maintain or amongst the Top 10 generic players (by
exceed in the years to come. prescriptions) in the US - the first Indian company to
reach this milestone. FY 2010 saw Lupin expanding
The momentum behind Lupin's growth is driven its US branded portfolio with the acquisition of
across the spectrum of an engineered market AllerNazeTM, an Intra-Nasal Steroid and Antara®, an
expansion, differentiated product portfolio, higher anti-cholestrol drug. The US branded business
investments in research and development and contributed 37% of the overall US revenues with a
embedded stringent quality and compliance turnover of USD 127 million, growing by 72% during
standards - all underpinned by financial prudence FY 2010 as compared to USD 74 mn in FY 2009.
GROSS SALES 47,678

EBIDTA PAT
6,816
CAGR : 29% CAGR : 45% 9,981 CAGR : 49%
38,238
7,439 5,015
27,730 6,423 4,083
20,717 4,913 3,086
17,503
13,123 2,977 1,730
1,568 918
FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10
INR million INR million INR million

Lupin is the only Indian Pharma company with a Asthma and Gastro therapy segments. The India
significant Branded presence in the US market. Region Formulations brand business continues to
outpace the industry growing by over 21% during FY
Formulation sales to the three most developed 2010 (Net of Excise).
pharmaceutical markets in the world (US, Europe and
Japan) were up by 34% during FY 2010 and stood at South Africa
49% of the Company's Gross Sales. Lupin recorded revenues of INR 1,328 million from
Pharma Dynamics, our subsidiary in South Africa, up
Japan 57% from FY 2009 with clear leadership in the
Kyowa, the Company's subsidiary in Japan posted cardiovascular segment. Pharma Dynamics is now
robust net sales of INR 5,341 million, growing 21% ranked No. 6 amongst the generic pharmaceutical
over the last fiscal. It now contributes 11% of Lupin's companies in South Africa and is the fastest growing
revenues. Kyowa launched 6 products and filed of the Top 10 players.
applications for another 8 during FY 2010.
Philippines
Australia and New Zealand In March 2009, the Company acquired a majority
The Company continued its focus on this important stake in Multicare Pharmaceuticals Philippines, Inc.
strategic region. FY 2010 saw the cumulative MAA A premium branded generics company with a strong
filings go up to 27 of which 22 stand approved till date. position in women's health and the childcare
segment, Multicare has now emerged as the 10th
Emerging Markets
largest and the fastest growing generic company in
India
the Philippines (IMS Feb, 2010).
India forms a key part of Lupin's overall growth and is
a very important market for us. The India Region
DIFFERENTIATED PRODUCT PORTFOLIO
Formulations contributed 28% of our Gross Sales at
Moving up the value chain in the pharmaceutical
INR 13,502 million during FY 2010 as against INR
universe has helped us deliver superior margins and our
11,412 million, up 18% over the previous year.
track record of establishing leadership in both generic
This growth was driven by strong performance and and branded formulations is evident given our strong
increasing market share in the CVS, Diabetes, CNS, market position in all markets of direct operations.
12
GO!
In addition to being the 8th largest Generic player in

the US in terms of prescriptions, 13 out of our 26
generic products now rank No. 1 by market share and
25 out of these 26 products are in the Top 3.
RESEARCH AND DEVELOPMENT
We recognized very early in Lupin that focused long-term

investment in new areas of research would form the
backbone of the Company's future business performance
and profitability. FY 2010 total expenditure on R&D
amounted to INR 4,119 million, 8.7% of Net Sales as against
INR 2,669 million in FY 2009. We reported a record number
of filings in FY 2010 - 37 ANDA's and 19 DMF's with the US
FDA, in addition to 11 MAA's with European Authorities. We
also out-licensed one of our drug delivery system based
products to Salix Pharmaceuticals for the US market. 31st March 2010, reflecting further optimisation in our
Working Capital management. Material cost reduced
In addition to the ramp-up in our established areas of
by 1% of Net Sales, personnel cost remained constant
Generic product research and Advanced Drug
at 12% of Net Sales and Selling, General and
Delivery Systems, we completed the restructuring of
Administrative costs increased marginally to 28% of
the Novel Drug Discovery and Development program
in FY 2010. Our biotechnology research program has Net Sales from 27% during FY 2009.
also made rapid strides this year.
The Debt Equity Ratio improved to 0.44 from 0.62
QUALITY AND COMPLIANCE STANDARDS and all outstanding FCCBs were redeemed or
In the year, Lupin received official communication converted into shares during FY 2010.
from the US FDA on the satisfactory resolution of the
Warning Letter issued earlier to the Mandideep site. OUR PEOPLE
The US FDA also inspected two new sites of the At the heart of Lupin's growth story are our people. I
Company at Aurangabad (Liquids) & Indore (Oral
am very proud of their passion and commitment to
Solids and Oral Contraceptives). Both inspections
the Company, its dreams and aspirations. Our
were found acceptable. All our plants catering to
leadership group stands apart in the Industry,
Advanced Markets were inspected last year and were
preparing us for the challenges and opportunities of
found to be in good shape.
the future. Each member has a key role to play in
FINANCIAL PRUDENCE TO ENHANCE engineering our destiny. It gives me great pleasure
EARNINGS to introduce our leadership team in the following
Despite a 26% increase in net sales, Net Operating chapters. They will contour the major growth
Working Capital increased only by 4.3% from INR 11,388 engines of Lupin and tell you in more detail what to
million as of 31st March, 2009 to INR 11,869 million as of expect from us going forward.
Yours Sincerely
Dr Kamal K Sharma
Managing Director
Lupin Limited

US & Europe
Lupin has clearly broken

away from the rest to
emerge as the 8th largest
and the fastest growing Top
10 Generic Business in the
US (in Rx's) - the only Indian
pharma major to ever
achieve this feat
Ms Vinita Gupta
Group President & CEO
Lupin Pharmaceuticals Inc., USA
14
the growth leader
Lupin's Advanced Markets business in US and Europe

continued its upward growth momentum during the
the Company now has 26
year with total sales of INR 18,570 million, up from INR generic products in the US
MD& A
13,567 million during the previous fiscal, a growth of out of which 13 are market
37%. The Company's Formulations sales in the US leaders. Lupin also holds
market grew to INR 16,497 million during FY 2010, up
Top 3 positions for 25 of
US & Europe | India | ROW | API | R&D | HR | Financial Commentary | CSO

from INR 11,894 million during the previous year. The
Company continues to register impressive growth in these 26 products
the European Market where Formulations sales grew
36%, to INR 1,395 million for FY 2010 up from
INR 1,023 million during FY 2009. market leaders, ranked No. 1 by market share. Lupin
holds the Top 3 positions in terms of market share
for 25 of the 26 marketed products (IMS Health).
US Formulations Revenue What has been unique about Lupin, is its ability to
(INR million)
increase and build on existing market shares for
16,497
most of the 26 marketed products in the US on the
11,894
back of flawless execution and excellent
7,205 relationships with trade partners, all serviced by an
3,553 agile and responsive supply chain. The Company
2,240
continues to record the highest per product
revenues amongst its Indian peers.
FY 06 FY 07 FY 08 FY 09 FY 10
The Company received 7 approvals from the US FDA

during FY 2010, out of which 3 were tentative
approvals. The approvals received in the year were
Levofloxacin Tablets, Ethambutol Tablets,
US Memantine Tablets, Perindopril Tablets,
Riding high on the momentum built up in our
Amlodipine and Benazepril Capsules, Imipramine
Branded Business and sustained, consistent growth
Tablets and Eszopiclone Tablets.
in Generics, Lupin's Formulations business in the US
emerged as the key growth driver for the Company,
recording sales of INR 16,497 million during FY 2010 Top Ten US Generic Drug Manufacturers Market Share
by Prescription (Total Rxs)
as compared to INR 11,894 million in FY 2009, up 39%.
2009
Manufacturer Total Rxs % Change % Share
US Generics Teva 634,415 1.70% 25.20%
The Company's Generics business reported growth of Mylan 331,562 11.90% 13.60%
16% in the US, up from USD 187 million in FY 2009 to Watson 251,970 6.40% 10.30%
USD 217 million in FY 2010. Today, Lupin is the 8th Sandoz 218,891 10.90% 9.00%
Qualitest 109,802 11.30% 4.50%
largest Generic player in the US in terms of
Greenstone 102,316 24.80% 4.20%
prescriptions. The Company is also the fastest
Apotex 99,841 4.80% 4.10%
growing Top 10 generic player in the US for the Lupin 92,757 51.10% 3.80%
second year running, growing at 51% by Malinckdrodt 90,824 -4.90% 3.70%
prescriptions (IMS Health). The Company now has 26 Actavis-Purepac 73,524 -10% 3.00%
generic products in the US out of which are 13 are Source: IMS Data

Lupin's branded business contributed 37% of the overall US revenues
with a turnover of USD 127 million, growing by 72% during FY 2010
Delivering value by Leveraging Intellectual Indian peers but also emerged as one of the Top 10
Property ANDA filers globally. The cumulative number of ANDA
FY 2010 was marked with several examples where the filings now stands at 127, with 40 approvals to date.
Company was able to leverage its intellectual property Lupin has 55 Para IV Filings with the US FDA, out of which
capabilities into driving organisation growth. During 24 were filed during FY 2010. The cumulative first-to-file
the year, the Company settled all ongoing litigation and exclusive opportunities now stand at 12.
with Novartis on Lotrel (Benazepril/Amlodipine)
capsules and then launched the product in the US On the Drug Delivery front, in FY 2010 Lupin and Salix
Market. The Company also settled all litigation relating entered into an agreement under which the two
to Memantine tablets, Lupin's generic version of Forest companies will collaborate in the development and
Laboratories Inc.'s Alzheimer disease treatment commercialisation of Lupin's extended release
"Namenda®" Tablets. In addition, the Company sold its Rifaximin product for the US market. Lupin will also
first-to-file ANDA on Antara® (Fenofibrate) Tablets to supply Rifaximin API to Salix. Salix made a USD 5
Dr. Reddy's before buying the brand for the US. Lupin million up-front payment to Lupin and the alliance also
and Natco Limited have an alliance to jointly envisages typical milestone and royalty payments.
commercialise generic equivalents of Shire's
FOSRENOL® (Lanthanum Carbonate) Tablets. Natco is Quality and Regulatory Compliance
one of the first-to-files on the product. FY 2010 was a landmark year for Lupin on the Quality
and Regulatory Compliance front. We were able to
During FY 2010, the Company filed 37 Abbreviated New successfully resolve the Warning Letter issued to our
Drug Applications (ANDAs) with the United States Food Mandideep site in under 8 months. Earlier in the year,
and Drug Administration. Lupin not only clocked in one the UK MHRA and the Australian TGA had also
of the highest number of ANDA filings amongst its conducted a joint inspection of the Mandideep
ANDA Pipeline DMF Pipeline
127 104
85
90 74
60
62 46
51
36
16
facility and had found it acceptable. Clearing the Antara® (Fenofibrate Capsules 43 mg and 130 mg)
Warning Letter in such a short timeframe is even from Oscient Pharmaceuticals under the procedures of
more commendable in the current heightened the US Bankruptcy Court. Antara® recorded net sales of
MD& A
regulatory environment and is strong testimony of USD 70 million for 2008 (IMS Dec '08). Antara® has strong
how the Company has kept pace and stayed ahead of brand equity with primary care physicians and is
the regulatory curve. prescribed for treatment of hypercholesterolemia (high

blood cholesterol) and hyper-triglyceridemia (high
Lupin's Goa and Tarapur facilities were also triglycerides). In the US Fenofibrate products market,
inspected in 2009 and found to be acceptable. The at around USD 1.9 billion, Antara® has 4.5% share of
US FDA also inspected Lupin's Aurangabad (Liquids) the market and grew 20 % in revenue in the past year.
& Indore (Oral Solids and Oral Contraceptives) sites.
Both inspections were found acceptable and these The Company's experience, sound market
inspections bring the Company a step closer to understanding and effective marketing strategies are
launching Liquids and Oral Contraceptives in the US reflected in the success of our flagship brand,
market. With these recent inspections, all Lupin's Suprax®. During FY 2010, Suprax® continued its
facilities catering to Advanced Markets have now upward growth trajectory. The Suprax basket now
been inspected in the past year and have been found encompasses Suprax® (Cefixime) for Oral Suspension
to be in good shape and in line with the expectations 100mg/5ml, 200mg/5ml and Suprax® 400mg
of regulators across the world. Tablets. The Company has strengthened its portfolio
of offerings by value-added line extensions and will
US BRANDED continue to invest in developing new products and
Lupin's Branded business contributed 37% of the product line extensions using its proprietary
overall US revenues with a turnover of USD 127 million, controlled release and taste making platforms.
growing by 72% during FY 2010 as compared to USD
74 million during the last fiscal. In FY 2010, Lupin ramped - up its US sales force
from 60 to 150 representatives, given the addition
FY 2010 saw Lupin expanding its branded portfolio
by acquiring the worldwide rights for the intra-nasal
steroid (INS) product, AllerNaze™ (triamcinolone)
Nasal Spray, 50mcg, from Collegium Pharmaceutical,
Inc. The US FDA has already approved AllerNaze™, an
aqueous based intranasal steroid indicated for the
once daily treatment of nasal symptoms associated
with both seasonal allergic rhinitis (SAR) and
perennial allergic rhinitis (PAR) in adults and children
above 12 years of age and older. AllerNaze™ offers a
quality intranasal steroid option to physicians as they
deal with adherence and compliance issues when
treating allergic rhinitis. The intranasal steroid
market generated USD 2.5 billion in annual sales in
the United States alone (IMS).
During the year, the Company made its second

branded acquisition by obtaining US rights for

of Antara® and soon to come AllerNazeTM to its During FY 2010, the Company's Formulations business
Branded portfolio. The ramp-up helps create a in Europe recorded a growth of 36%. Additionally,
specialty sales force that now addresses both during the year, Lupin filed as many as 11 MAAs and 3
Pediatricians and Primary Care Physicians with a EDMFs and COSs across Europe. The total cumulative
complete portfolio of products. finished product filings within the EU stands at 65, with
31 total approvals.
EUROPE
Lupin has developed a solid foundation to grow its Germany
Formulations business in the European markets with Lupin made strategic inroads into the German
a robust product pipeline. Having built its presence Market by acquiring Hormosan Pharma GmbH
across select EU markets through a blend of direct-to- (Hormosan), a German Generics company,
market initiatives, acquisitions and strategic specialized in the supply of pharmaceutical
partnerships, the Company is today well placed to products. Hormosan enjoys a strong brand
address the unique demands of the fragmented and identity in Germany, especially in the CNS area.
diverse EU market. With the change to a substitution-driven market,
18
GO!
the Company has completely realigned its focus France

and is now geared towards capitalising on the Having built successful partnerships over the past
right Generic opportunities. Hormosan registered year, Lupin continues to make inroads into the
MD& A
a growth of over 100% during FY 2010. French market with its Cefpodoxime Proxetil
tablets, accounting for over 72% market share. The
Company also launched Cefpodoxime Proxetil
UK

Suspension in FY 2010.
Lupin's direct-to-market initiative has worked well in
the UK, which is evident from the success of the
Company's flagship brand, Lisinopril that commands a Overall, Lupin is well on its way to grow its direct-to-
market share in excess of 15%. Lupin is now looking at market business as well as its partnered business in
introducing several new value-added products. The Europe. In addition to UK, Germany and France, the
Company has a strong pipeline of 22 filings in the UK Company is also focused on building its position in
and received approvals for Valsartan Tablets and the markets of Italy, Spain, Portugal, Poland, Czech
Perindopril + Indapamide tablets during FY 2010. Republic, Hungary and Turkey.

India
Lupin today is the fastest

growing amongst the Top 5
Indian pharma companies.
We are now poised to go for
leadership
Shakti Chakraborty
Group President - India Region Formulations
20
revving our engines
In FY 2010, Lupin's India Region Formulations formidable player in important chronic therapies
business continued its outstanding growth and like Cardiology, Central Nervous System (CNS),
further enhanced its market shares across multiple Diabetology, Anti-Asthma, Anti-Infective, Gastro
MD& A
therapy segments. During FY 2010, Lupin's domestic Intestinal and Oncology. Lupin's smart, lean
formulations business outpaced and outperformed business model coupled with sharp marketing
the Indian Pharmaceutical Market (IPM) and recorded strategies is reflected by its success in the

sales of INR 13,502 million as compared to INR 11,412 domestic market.
million during FY 2009, a growth of 18%. Spurred by
gains made this year, Lupin has today emerged as the In FY 2010, Lupin expanded its product portfolio
fastest growing among the top 5 in the IPM, with an with the introduction of a mix of branded and
overall market share of 2.75% (ORG IMS Mar 2010). value added generics into the market place. The
Company also added new therapy areas such as
Nephrology and Osteoarthritis as it went about
Domestic Formulations (Sales) building market share in other existing segments.
(INR million)
13,502 The Company's growth rates in some of the major
11,412 therapeutic segments remain the best in the
9,496
7,530
industry. In the Anti-Asthma segment. The
6,064
Company's diabetics business also recorded an
impressive growth of over 44%, outperforming the
market growth rate of 24%.
FY 06 FY 07 FY 08 FY 09 FY 10
Top Ten Lupin Brands

PRODUCTS THERAPEUTIC RANKING IRF Therapeutic Contribution (%)
SEGMENT 12%
TONACT CVS 3 CVS
GLUCONORM ANTI DIABETIC 2 Anti Tb 10%

Anti Asthma 21%
RABLET GASTRO INTESTINAL 2
Antibiotics
RCINEX ANTI TB 1 GI 2%
AKT ANTI TB 1 Anti Diabetic 5%
CNS 11%
RAMISTAR CVS 2 6%
Nsaids
CLOPITAB CVS 3
Others 6% 9%
L-CIN LEVOFLOXACIN 1 Generics (Incl. Inst.)
ODOXIL ANTI -INFECTIVE 1 18%
DOXCEF CEFPODOXIME SOLIDS 7
(ORG IMS Mar 10)
GROWTH DRIVERS Marketing Strategy & Execution

Focus on Chronic Therapy Segments The Company's sales and marketing efforts, with
Over the years, Lupin has transitioned its therapy sharp product and therapy focus has helped Lupin
focus from primarily acute treatment to lifestyle build brands that are market leaders. 6 Lupin
segments and chronic therapies. Lupin is now a products find a place amongst the Top 300 in the

Therapeutic Market Growth Lupin Growth Lupin Femina
Segments Rate (%) Rate (%) The Lupin Femina division was launched in FY 2009
CVS 20 20
to spearhead the Company's entry into the
Anti Tb -2 7
women's health care segment. Lupin Femina
Anti Asthma 21 34
Anti Infective 15 15 registered a dynamic growth of 134% and launched
GI 17 20 seven new brands during FY 2010. Lupin Femina
CNS 20 36 also launched two in-licensed products in the
Anti Diabetic 24 44
Gynaecology segment during the year, namely
(ORG IMS Mar 10)
Faa-20 and Luprolide.
industry. During FY 2010, Lupin continued to witness
growth across all key business divisions and therapy Endeavour
This multi-specialty division is responsible for the
segments. Some of these segments are:
Anti-infective and Cephalosporin business for Lupin.
It focuses on acute therapy areas with a product
Lupin Respira
The Company's entry into Anti-Asthma, Allergy and portfolio comprising Antibiotics, Pain management,
Respiratory Tract Infections and COPD medicine is Gastrointestinal and Anti-Osteoporosis products.
spearheaded by the Lupin Respira division. With Lupin grew at an outstanding rate of 20% in the GI
eight new brands launched in FY 2010, it continues to space in FY 2010. Lupin's Anti-infective business in
garner market share in the Indian Anti-Asthma India grew by 15% in the same timeframe. Endeavour
market, registering a growth of 34% in FY 2010 as made a strategic entry into the anti-arthritic segment
against the market growth of 21%. with the launch of its first in-licensed brand Hyalgan
for Osteoarthritis. Hyalgan is a research product of
Pinnacle CVS Fidia, Italy.
Lupin's specialised division that focuses on the
Cardiac market continued to post strong results Maxter
growing at 20% in FY 2010 commanding a 5.2% One of the youngest divisions within Lupin's India
share of the overall Indian Cardiac market. The formulations business it focuses on the Critical Care
division also launched a neutraceutical in the year, segment as well as making inroads into the field of
Harty (Resveratrol). Five new brands were launched Wound Management. Some of Maxter's products like
during FY 2010. Tazar and Merotrol are market leaders in their
categories. Maxter is the fastest growing player in the
Lupin Diabetes Care critical-care segment with special focus on high-end
The Diabetes Care division posted yet another year of injectables as well as other life-saving medicines and
exemplary growth garnering 3.3% market share of the products. The division recorded a growth rate of 11%
overall Indian diabetes market. In FY 2010, the in FY 2010.
Company's Diabetes business grew at 44% as against
the Industry growth rate of around 24%. Lupin is Lupin CVN
ranked 8th overall in the (Oral+Insulin) diabetic market The year witnessed the launch of Lupin CVN, Lupin's
growing at twice the market rate. The division Super Speciality Division catering to the nephrology
launched two new brands during FY 2010. segment. Already 7 of 11 Lupin CVN brands feature
22
GO!
within the Top 3 in ORG IMS with 5 new brands launched LUPIN WITHIN THE MEDICAL COMMUNITY
during FY 2010. Novastat was relaunched and has Lupin has always focused on working with the
achieved the 7th position in its first year. medical fraternity by creating knowledge sharing
MD& A
platforms to keep them abreast of the latest
technological advances and breakthroughs.
Mindvision and Oncology
With the Indian CNS market growing at about 20%, FY 2010 marks the 5th year of the acclaimed

Mindvision has driven Lupin's entry into the neuro- International Symposium on Diabetes (ISD), a
psychiatry segment. One of the fastest growing platform created by Lupin in association with
divisions of Lupin's India Region Formulations, faculty from the JOSLIN Diabetes Centre, USA. ISD
Mindvision registered a growth of 41% in FY 2010 continues to be the largest platform for Indian
and including the oncology division recorded a doctors to exchange and share thoughts with
growth of 46%. renowned Diabetologists from the Joslin Diabetes
Centre. The event is attended by up to 5,000
doctors from across India. The Symposium clearly
Lupin
The Lupin division continues to lead the pack in the highlights Lupin's endeavor in keeping doctors
anti-TB segment, as well as maintain its presence in the abreast of the latest developments and practices in
cardiovascular, diabetic, asthma and CNS space. The medical science.
Lupin division now commands 46% market share in a
INR 2,920 million anti-TB market and grew by 7% Lupin was the first to enable Indian doctors to tap
during FY 2010. into the vast knowledge resource of Global medical
institutions such as the European Neurological
Society (ENS) and the American College of
IN-LICENSING
Cardiology (ACC).
Partnerships and in-licensing arrangements are
integral to the Company's India Region Formulations
growth strategy. Successful in-licensing deals have During FY 2010 Lupin also collaborated with the
enabled Lupin to emerge as the 'first-to-market' for Federation of Obstetric and Gynaecological
several important products. Recognising the Societies of India (FOGSI), by initiated the 'Nanhi
importance of in-licensing to its growth objectives, Kali' program that champions the cause of 'Save
the Company has set up a dedicated team to identify the Girl Child'. The initiative focuses on
and pursue novel and potential in-licensing empowering the underprivileged girl child by
opportunities. meeting their basic education needs. Lupin and
FOGSI are also working towards evolving an
In the last few years, the Company has introduced 19 Online "e-FOGSI data registry system" - a first of its
in-licensed products and of these, 6 products were first kind initiative wherein the Indian medical
of their kind to be introduced into the Indian market. fraternity would offer gynaecologists a platform
During FY 2010, five in-licensed products were to archive, maintain and access clinical data, for
launched covering the Gynaecology, Anti-Arthritic, better patient management as well as to facilitate
Anti-Asthmatic and the Anti-Phrombotics segments. peer interaction.

rest of the world
Lupin has emerged as the

fastest growing Top 10
Generic player in the
markets of Japan, South
Africa and the Philippines
Vinod Dhawan
President - AAMLA and Business Development
24
gathering momentum
Lupin's AAMLA Business division covers the markets Finished Dosages Filings (Rest of World)
of Japan, Australia, South East Asia, Africa, Middle 557

490
East, and Latin America. It is the youngest and one of
MD& A
321 344
the fastest growing SBUs of the Company. 243
During FY 2010, Lupin's business from these markets

accounted for 16% of our total consolidated
FY 06 FY 07 FY 08 FY 09 FY 10
revenues. Ex-India operations along with our
subsidiaries Kyowa - Japan, Pharma Dynamics - South
Africa and Multicare - Philippines, recorded revenues
of INR 7,741 million, a growth of 32% from the
previous year. With 67 product filings across various resulting in success across key geographies,
markets, the Company looks forward to further specifically in advanced markets such as Japan and
extend its reach into promising new markets and Australia as well as the emerging markets of South
niche segments therein with the introduction of new Africa and South East Asia.
value added products.
Lupin's current formulations business within these
FY 2010 was a year of integration and consolidation markets addresses chronic therapies and lifestyle
in these markets where Lupin focused on creating segments like Cardiovascular, Paediatric, Central
and achieving synergies between Lupin India and its Nervous System, Gastro Intestinal and Women's
Health as well as Anti-Infectives, Anti-Asthma, and
ROW Sales Anti-TB treatments. In a span of four years, our
(INR million)
achievements in the AAMLA geographies have
7,741
already helped build strong foundations for the
5,861
sustainable future growth of the Company.
1,788
329 478 JAPAN
Valued at USD 75 billion, Japan is the second largest
FY 06 FY 07 FY 08 FY 09 FY 10 pharmaceutical market in the world. Almost 100%
of Japanese citizens are covered through National
subsidiaries. The Company started filing DMF's of in- Health Insurance, funded by the Japanese
house API's for Japan, sourced 18 new products for Government. To reduce the healthcare expenditure
the Philippines and negotiated better sourcing rates burden, the Government has introduced a series of
for its products in South Africa. The division also reforms that would expand Generic penetration to
introduced value added, differentiated and novel 30% of the overall Japanese pharmaceutical market
products in multiple therapy areas across various by 2012 with an estimated market size of USD 6.5
countries. These concerted efforts are already billion. The Government is also offering financial

incentives to hospitals, pharmacies, patients and
other stakeholders to encourage the use and
adoption of Generics. This has created unique
opportunities for growth of Generic players and
makes Japan one of the most attractive Generic
markets in the world.
Kyowa, Lupin's 100 % subsidiary in Japan is

focused on tapping into this emerging
opportunity and has identified Neurology,
Cardiovascular, Gastroenterology and Respiratory
segments as core therapeutic areas of focus for
drug development and marketing. Kyowa is
amongst the fastest growing generic APIs have been identified as a key area for synergy
pharmaceutical companies in Japan. Today, it between Lupin and Kyowa and the Company has
markets over 200 products through its 75 strong started developing and filing the APIs required by
sales and marketing team. Kyowa is one of the Kyowa. The Company filed and recieved approvals
largest generic players in the Neurology segment for 2 Drug Master Files for the Japanese market
with 95 products and covers 94% of psychiatry during FY 2010. The supply of these APIs to Kyowa
hospitals in Japan. would commence shortly and would help Kyowa
achieve significant savings and better margins. The
For FY 2010, Kyowa reported consolidated sales of Company is already working on augmenting the
JP¥ 10.4 billion (INR 5,341 million) contributing to pipeline of APIs from India and many more DMFs
11% of Lupin's consolidated revenues, a growth of will be filed in the next few years.
9% over the previous fiscal. Kyowa's conscious drive
for cost optimisation through API prices has To support its growth plan and increased demand,
resulted in improvement in gross margins by 4%. Kyowa plans to enhance its manufacturing
capacity, improve machine productivity and reduce
In FY 2010, Kyowa launched 6 new products and utility costs for its manufacturing facility in Japan.
filed applications for an additional 8 products. With
a view to augment product filings and optimise SOUTH AFRICA
R&D costs, Lupin has also started developing The South African pharmaceutical market is
products in India for Kyowa. The Company is also valued at about USD 2.5 billion and recorded a
exploring In-licensing arrangements and strategic growth of 13% in FY 2010. Compulsory Generics
alliances with various Japanese, European and substitution implemented by the legislation and
Indian companies to introduce new products into the emergence of National Health Insurance for
the Japanese market. South African citizens is slated to further spur
26
market growth. Patent expiries in the forthcoming sales personnel, MultiCare has created significant
years will also set the pace for the creation of brand equity and a commendable franchise with
MD& A
additional growth opportunities. the medical fraternity in the Philippines, which is
further augmented by strong distribution alliances.
For FY 2010, Pharma Dynamics recorded revenues
of ZAR 218 million (INR 1,328 million) registering a For FY 2010, MultiCare recorded revenues of PHP

growth of 34% over the previous fiscal. The growth 328 million (INR 328 million). More importantly,
was achieved by a planned focus on growing Multicare Pharmaceuticals emerged as the 10th
market shares in key therapy segments such as largest and the fastest growing Top 10 generic
Cardiovascular (CVS) and the OTC segments. pharma company in the Philippines.
Pharma Dynamics remains the fastest growing Top
10 Generics player in the South African Market and AUSTRALIA
is the 6th largest Generic company in the country. With an estimated size of USD 11 billion and a
growth rate of around 7%, the Australian market
Lupin plans to improve the consolidated entity's presents a significant opportunity for Lupin. The
profitability and margins through backward Australian Generics industry accounts for
integration and backending production into our around 10% of the total market. Top selling
manufacturing facilities in India as well as supporting medicines expected to go off patent are
Pharma Dynamics in terms of patent issues, regular opening avenues for new business
reliable supplies and overall process optimisation opportunities. Also, there is active generic
and control. substitution by pharmacists and one in every
four prescriptions presented to pharmacists in
PHILIPPINES Australia is now filled with Generic medicines.
The Philippines market is valued at about USD 2.7
billion. Lupin's subsidiary, MultiCare Pharmaceuticals An ageing Australian population, an expanding
is a premium branded generics company with a OTC market combined with almost all citizens
strong position in the women's health and childcare being covered by the National Health
segments. With force strength of 165 highly trained Insurance further make this an interesting
generic market. It is estimated that over half of
the Top 100 selling prescription medicines in
Australia are expected to come off patent in the
next 4 years.
In a move to consolidate its position, Lupin

increased its stake in Generic Health Pty. Ltd. to
49.9% in FY 2010 from erstwhile 36.6%. With its
wide range of quality generic prescription and

OTC products, Generic Health presents a strategic THE ROAD AHEAD
fit to Lupin's growth aspirations in Australia. Lupin In a bid to scale greater heights in the next few years,
is in the process of augmenting Generic Health's AAMLA has a focused approach to establish on-shore
Hospital segment by adding a complete range of presence in promising emerging markets and
hospital products. The Hospital segment market geographies by way of planned organic growth,
size is currently about USD 50 million. acquisitions or by forging strategic alliances and
partnerships. Brazil and Mexico have been identified
During FY 2010, Lupin received approvals for 2 as two of the emerging markets for an onshore
dossiers and filed an additional 2 dossiers through its presence. The Brazilian market is valued at around
100% subsidiary, Lupin Australia. Patent expiries in USD 15.4 billion and grew at 15% (IMS Dec 2009). The
the forthcoming years will set the pace for additional market presents attractive opportunities in high
growth opportunities. Going forward, Lupin is growth, specialty segments like gynaecology,
planning to leverage its intellectual property as well as cardiology, Oral Contraceptives and biotechnology.
introduce value-added generic initiatives into the The Mexican Pharma market is currently pegged at
Australian market. M$ 140 billion (USD 11.4 billion).
28
GO!
CIS
The growing CIS pharmaceutical market with an

the Company is building estimated size of USD 17 billion represents a great
brands that will be key opportunity. An ageing population, changing
MD& A
drivers for value creation lifestyles, steadily rising incomes and increased
Government spending in health-care are all
indicators that back Lupin's decision to expand its

Harish Narula
President - Corporate Development and CIS presence in this region. In particular, Russia and
Ukraine are of prime interest.
Lupin's presence in the region is marked by both a

Direct-to-Market as well as a Local Partnership
strategy. Local partnerships have been established
keeping in mind their future potential and cross-
functional synergies.
The CIS business has been built around offering

differentiated products with a long term view of
creating strong niches from product mix,
comprising Value Added Generics, Branded
Generics and the Company's Branded Business.
Bearing in mind changing market dynamics, Lupin is
putting added emphasis on brand building
exercises for its products such as IXIME, Dr. KASHEL,
SOFTOVAC, RIBAVIN, ONE-BE and GATISPAN. The
Company's Branded Business recorded a healthy
growth rate and brands such as IXIME and Dr.
KASHEL are fast gaining market share.
Lupin plans to continue the strengthening of its

presence in the CIS region by filing the right
products, increasing its field force, forging strategic
trade relationships and enhancing its distributor
networks. The Company is looking forward to
building new brands from its filings in the region,
which shall be key drivers for value creation in the
years to come.

active pharmaceutical ingredients
the success of the visible

comes from the invisible.
Our proficiency in creating
the building blocks of
medicines has allowed us to
go places in the global
pharmaceutical marketplace
Satish Khanna
Group President - API
30
fueling growth
TOWARDS GLOBAL LEADERSHIP API Sales Therapeutic Contribution

The global Active Pharmaceutical Ingredients (API)
space is driven by the two Asian giants China and
MD& A
44% 34%
India. While India has fewer API players than China, it Others
Anti TB Family
is more prolific than its counterpart in the API industry
Cardio Vascular
largely because of India's Quality and credentials as

Cephalosporins
the best manufacturer of generic formulations
worldwide. Lupin is one of the select few API players 3% 19%
from India that have made an indelible mark on the
global stage. Lupin is also amongst one of the very
few pharmaceutical companies globally that are 9% YOY. This was achieved by focus on improving
strong players on both fronts of the pharmaceutical operational efficiencies with a careful and
business - APIs and Formulations. This makes Lupin a meticulous product selection strategy.
truly formidable, fully-integrated global
pharmaceutical company. By maintaining cost leadership and competitiveness
in its chosen therapeutic domains, Lupin's API
In FY 2010, the Company's API business generated business has been ensuring the profitability and
INR 7,772 million in revenues, representing growth of growth of the Company's Formulation business in

addition to being a top API supplier globally. Product Market Global Ranking
Attaining global scale of operations has been the Ethambutol 1
Rifampicin 1
underlying principle governing Lupin's API
Pyrazinamide 2
business model. Being a first mover in specialty 7 ADCA and Family 1
products and adding the requisite size and scale 7 ACCA and Family 1
into manufacturing new APIs, the Company creates Lisinopril 1
SABA/SABAM 2
a formidable position for its products in the highly
Lovastatin 3
competitive Advanced Markets. Rifabutin 1
Today, the Company has established global through efficient productivity and prudent
leadership position for its APIs and holds a firm procurement planning.
grip in the Cephalosporins, Cardiovascular and
Anti-TB space. The compounding growth in captive consumption
from Lupin's fast expanding Formulations business
Despite the on-going price volatility on PenG, one of has added a continual thrust to the volumes
the vital inputs for the building blocks of oral produced by the API division. Lupin expects its
Cephalosporins, the Company protected its margins Formulations business to thrive on the back of
32
GO!
efficiencies stemming from its in-house APIs and

Lupin expects its
Intermediates. Over the years and more importantly
Formulations business to
MD& A
in the financial year under review, the Company's
API output has grown significantly in both volume thrive on the back of
and value.
efficiencies stemming from

Lupin continues to enjoy global market leadership in
its in-house APIs and
Rifampicin, Pyrazinamide and Ethambutol, as well as in Intermediates
Cephalosporins such as Cephalexin, Cefaclor and their
Naresh Gupta
Intermediates. In FY 2010, the Company continued to
President - API and Global TB
record significant growth in the 7-ADCA and 7-ACCA
family of products.
The Company is a key supplier of anti-TB formulations

to the Global Drug Facility (GDF) and maintained its
premier position in the Anti-TB space during the
current fiscal.
THE ROAD AHEAD

In a bid to chart greater heights in times to come, the
Company has developed a focused marketing
strategy for its APIs by establishing on-shore
presence in select geographies. In the near future, it
plans to launch several new API products along with
P2P (Principal-to-Principal) finished products. To
tap into the lucrative Chinese market, Lupin is
exploring strategic joint venture opportunities.
Through the introduction of new products and

further ramp - up of its capacities, the Company
looks forward to an even more efficient utilisation of
its API manufacturing facilities. This will ensure that
the API division continues to be a long term growth
driver for the Company.

research and development
FY 2010 was a landmark year for Research and Lupin's Research and Development covers the
Development at Lupin. Lupin's Research program not following broad areas:
only witnessed heightened activity but also gathered
momentum across the entire R&D value chain, be it p Generics Research
Intellectual Property Management, Generics Research, − Process Research
Advanced Drug Delivery Systems Research, the newly − Pharmaceutical Research
recast Novel Drug Discovery and Development p Advanced Drug Delivery Systems (ADDS)
Program or the Company's Biotechnology Research. Research
p Intellectual Property Management
p Novel Drug Discovery and Development (NDDD)
The state-of-the-art Lupin Research Park at Pune,
p Biotechnology Research
Lupin's global R&D hub, was the epicenter of all these
rapid changes as the Group went about creating new
In FY 2010, the Company's Research Program was firing
infrastructure and launching new development
on all cylinders. The Group filed an unprecedented 37
initiatives and programs. Lupin Research Park today
ANDAs, 19 DMFs and 11 European applications. The
Company also licensed out its drug delivery technology
Scientific Pool - LRP (%)
based Rifaximin product to Salix Pharmaceuticals for
13%
the US. The Company also completed the restructuring
14%
and staffing of its Novel Drug Discovery and
M.Sc
51% Development Program. We are now truly set to take
M.Pharm's /M.tech's
Lupin Research to the next level.
Ph.D/ MBBS
MBA & Others 22%
GENERICS RESEARCH
Lupin's Generic Research Program develops APIs and
Pharmaceutical Products for US, Europe, Japan and
houses a pool of over 800 scientists, compared to 550 other Advanced Markets. The Program comprises
research scientists last year. During FY 2010, the Process Research, Pharmaceutical Research,
Company invested 8.7% of its net sales for R&D and Analytical support and Bio-clinical Research.
related spends, amounting to INR 4,119 million.
PROCESS RESEARCH
Lupin is well known for its research and manufacturing
Research & Development Spend
4119 capabilities for developing and producing cost-
2669
effective and reliable APIs. The Company has built
2038 strong capabilities for developing cost-effective, non-
1421 infringing, safe and eco-conscious technologies for
the synthesis of APIs. The Company's Process Research
capabilities have helped build a robust vertically
integrated model for complex and difficult-to-
FY 07 FY 08 FY 09 FY 10 develop ingredients.
34
firing on all cylinders
the tone has been set for
MD& A
a truly world-class R&D
program to propel the

company to its rightful
destiny as a global
pharma major
Nilesh Gupta,
Group President & Executive Director

this year we have not only Cumulative DMF Filings
104
become the benchmark for 85

74
the industry in terms of the 46

60
number and quality of filings

but have also gone a step
ahead by successfully out- FY 06 FY 07 FY 08 FY 09 FY 10
licensing one of our drug

FY 2010 was a record year for the Company's generics
delivery products process research program. During the year, the
Company filed 19 US DMF filings taking the cumulative
Dr Ninad Deshpanday total to 104 DMF filings and 118 EDMFs/COSs, featuring
President - Pharma Research and Development
several unique and complex APIs.
PHARMACEUTICAL RESEARCH
The last three years have been landmark years for
Lupin in the generic pharmaceutical research space.
In FY 2010, Lupin's Pharmaceutical Research Group
filed 37 Abbreviated New Drug Applications (ANDAs)
with the United States Food and Drug
Administration. Lupin not only registered one of the
highest number of ANDA filings amongst its Indian
peers but also emerged as one of the Top 10 ANDA
filers globally. The cumulative number of ANDA
filings now stands at 127, with 40 approvals,
including 6 tentative approvals granted by the US
FDA to date. The total cumulative filings within the
EU stands at 65, with 31 total approvals.
Cumulative ANDA Filings

127
90
62
51
36
FY 06 FY 07 FY 08 FY 09 FY 10
36

FY 2010 saw the addition of development in new p Matrix/Coated Extended Release
therapeutic areas such as Ophthalmics, not to
 p Taste Masking Technologies
mention the Company expanding the number of
MD& A

filings for Oral Contraceptives to 23 ANDAs to date. p Improved Bioavailability through Solubilisation
Furthermore, the cumulative first-to-file and and Nano-particle technology
exclusive opportunities now stand at 12. As part of its current strategy, the Company aims to

license its ADDS products to innovator companies
ADVANCED DRUG DELIVERY SYSTEMS whilst also developing niche brands for itself.
The Advanced Drug Delivery Systems (ADDS)
initiative has emerged as a key growth driver within ANALYTICAL RESEARCH
the Company's R&D program. Over the last 5 years, The Analytical Research Group ensures that all
Lupin has made strategic investments towards processes and products transferred to Lupin's
strengthening its ADDS research capabilities. plants meet regulatory requirements and
expectations through the development and
FY 2010 was a landmark year primarily because validation of the right testing methods. LRP houses
Lupin successfully out-licensed its proprietary drug a sophisticated analytical facility supporting both
delivery technology based Rifaximin product to Process Research and Pharmaceutical Research. The
Salix Pharmaceuticals for the US Market. facility is also equipped to study physical properties
such as polymorphism in both, API and drug
Lupin and Salix entered into an agreement under products, using Powder X-ray Diffraction, Solid
which the two companies will collaborate in the State NMR and Differential Scanning Calorimetry.
development and commercialisation of an extended Additionally, isolation/synthesis and
release product incorporating Rifaximin and utilizing characterisation of impurities in APIs and drug
Lupin's proprietary bioadhesive technology. Lupin products is conducted with the latest LC/MS-MS
and Salix have also entered into an exclusive systems and automated preparative HPLC
agreement for supply of Rifaximin Active
techniques and instrumentation.
Pharmaceutical Ingredient (API). Salix made a USD 5
million up-front payment to Lupin and will make
LUPIN BIORESEARCH CENTER
additional regulatory milestone payments.
Lupin Bioresearch Center (LBC) was started in early
Furthermore, Salix will pay royalties on net sales of
2009 and has both Clinical and Bioanalytical
the bioadhesive Rifaximin product to Lupin.
capabilities. LBC successfully completed 31 full
studies in FY 2010. This independent center in
This alliance further validates Lupin's growing
Pashan, Pune, houses 2 clinics with a total of 56
capabilities in the drug delivery space. The Company
beds, a bioanalytical lab with 7 state-of-the-art
now has a host of drug delivery platforms that have
LC/MS-MS systems and its own clinical chemistry
already been developed. These include:
lab amongst several other capabilities.
p Bioadhesive Extended Release

LBC conducts important bioequivalence testing
p Laser-Drilled Extended Release exclusively for Lupin's generic products prior to

the filing of ANDAs or other regulated market In FY 2010, Lupin also sold its first-to-file ANDA for the
filings. LBC also manages out-sourced Bio- generic version of Antara® (Fenofibrate tablets) to Dr.
Equivalence studies, clinical end-point studies as Reddy's before acquiring the brand Antara® from
well as the studies for the Company's ADDS Oscient Pharmaceuticals in the US.
initiatives.
The Company's IP group is also responsible for
protecting the intellectual wealth generated by the
INTELLECTUAL PROPERTY MANAGEMENT
Lupin's Intellectual Property Group identifies new Company's research in addition to leading patent
therapy areas and products for the Company's challenges across the globe.
research to develop. Working in conjunction with the
research teams, marketing as well as external agencies During the year, the Company demonstrated its
it puts in place a well-differentiated, high-value capabilities on the Intellectual Property front by
product pipeline, with a strong accent on controlled successfully settling all ongoing litigation with Novartis
release, exclusive and unique first-to-file filings. on Lotrel® (Benazepril/Amlodipine) capsules and then
launching the product in the American Market. The
During FY 2010, the Company filed a record 37 New Company successfully litigated and settled all
Drug Applications (ANDAs), with as many as 4 first-to- ongoing litigation relating to Memantine tablets,
file opportunities with the US. The Company had 4 first- Lupin's generic version of Forest Laboratories Inc.'s
to-files for the generic versions of Glumetza®, Lo Alzheimer disease treatment “Namenda®” Tablets.
Seasonique®, Ciprofloxacin® and Ranexa®. Lupin has 55 Namenda® tablets had US sales of USD 949 million in
Para IV Filings with the US FDA so far, out of which 24 2009 (IMS Data).
were filed during FY 2010. Furthermore, the cumulative
first-to-file and exclusive opportunities now stand at 12. Lupin and Natco Limited, established an alliance to
jointly commercialise generic equivalents of Shire plc's
FOSRENOL® (Lanthanum Carbonate) tablets. Natco is
one of the first-to-files on the product. FOSRENOL®
tablets achieved sales of USD 131 million (IMS Data).
During the course of the year, Lupin filed 26

Formulation patents, 84 API/Process patents and
14 NCE patents. It also received approval for 4
Formulation patents and more importantly 31 NCE
patents.
Patents filed
777
API/Process NCE Formulation

323 225 229
Pending Granted Pending Granted Pending Granted

251 72 165 60 205 24
38
NOVEL DRUG DISCOVERY AND
DEVELOPMENT our goal is to be world-
The essence and the soul of Lupin's vision in the class in any of the
MD& A
Novel Drug Discovery and Development (NDDD)
space is to discover, develop, out-license and
therapy and target areas
commercialise novel drugs that address disease that we work in

areas with significant unmet medical need.
Dr Rajender Kamboj
President - Novel Drug Discovery and Development
Having made its mark in the Generics space, the
Company has consistently invested in NDDD over
the last few years to make a similar impact in this
field. The Company is in the process of creating
new molecular entities for accelerated
development in identified markets globally.
These novel products would utilise Lupin's newly
acquired strengths in drug discovery and
development complemented by Lupin's drug
delivery expertise. A slew of such exclusive
products will provide the bridge for the
Company's transition from a generic powerhouse
to an innovative drug discovery and
development organisation.
During FY 2010, the Company completed its

overhaul of the NDDD setup. Lupin has now built
very sophisticated infrastructure, has acquired
cutting-edge technologies and has built the right
pool of talented scientists with the necessary skill-
sets to make this endeavor a success. It has
identified molecular targets from which 9 new
research programs have been initiated.
In FY 2010, the Company created a new Medicinal

Research facility at Hinjewadi, in Pune. It also initiated the
validation of its new biology facility at Lupin Research
Park, where highly sophisticated robotic 'FLIPR'
Functional Assaying machines and High Throughput
Screening (HTS) capacities were also commissioned.

The NDDD Research group is committed to creating Committee (IBSC) for research on recombinant DNA.
innovative new drug molecules that will change the Furthermore, this facility has also been accredited as
way dozens of diseases have been treated so far. a Biotech Centre by the Bioinformatic Centre of the
Working with a targeted drug design approach with University of Pune. Today, Lupin has 7 proteins in
proven biological mechanisms that alter disease different stages of development.
processes will be a sure-fire recipe for success in this
otherwise high-risk, capital intensive field. In FY 2010, the Company commissioned cGMP
facilities for microbial as well as mammalian
BIOTECHNOLOGY RESEARCH cultures. The Company has also filed 5 patents for
The vision of the Biotechnology Research group the technologies developed in-house and
based out of Pune is to develop and commercialise published 6 research articles last year. Lupin is now
Bio-Similars and New Biological Entities for the looking to launch its first Biological in the Indian
Company. Lupin's state-of-the-art Biotech market in 2011. It is also exploring collaborative
research & manufacturing facility has already been opportunities in the field of new biological
approved by the Institutional Bio Safety formulations and New Biological Entities.
40
GO!
quality & regulatory compliance
At Lupin, we have always identified Quality and 2010 also saw the introduction of Lupin's Global
Regulatory Compliance as a true enabler and the Pharmacovigilance Cell. Pharmacovigilance
critical differentiator between a market leader and involves the monitoring of the safety profile of
MD& A
the rest - the mainstay of long-term competitiveness. medicinal products from clinical trials to the pre-
Over the years, we have built and nurtured an marketing period, when the drug is introduced to
environment around deep respect for quality and the general population and thereafter - it continues

compliance, in line with global best practices. We throughout the life cycle of the product. The aim of
believe that quality not only has to be embedded in Pharmacovigilance is to protect and safeguard
the product but into the very way an employee thinks public health by identifying, evaluating and
and works. This instills and engineers quality and minimising safety issues to ensure that the overall
compliance into the culture of the organisation. benefits of medicines far outweigh the risks.
Today, this culture is ingrained in the Lupin Brand
DNA and embraced by all Lupin personnel. A dedicated global QC team spread across all
manufacturing locations, globally, is engaged in
FY 2010 was a landmark year for Lupin in terms of driving the quality philosophy of the organisation and
Quality and Compliance. Lupin received official assuring that global standards of good manufacturing
communication from the US FDA on the satisfactory are implemented in the best manner at every Lupin
resolution of the Warning Letter issued earlier to its facility. The team also develops and implements the
Mandideep site. The facility was re-inspected in Quality Policy and Guidelines for key systems and
November 2009 and the company was able to processes within the company. Corporate Quality
satisfactorily address all of the concerns related to the Assurance is enforced and supported by a team of over
Warning Letter and the site compliance status was 700 personnel comprising the quality and regulatory
found to be acceptable. Earlier in the year, the UK functions at all Lupin sites and they are responsible for
MHRA and the Australian TGA conducted a joint ensuring quality and compliance to regulatory
inspection of the Mandideep facility and found it requirements globally.
acceptable as well.
The US FDA also inspected two new sites of the

Company at Aurangabad (Liquids) & Indore (Oral
Solids and Oral Contraceptives). Both inspections
were found acceptable and these inspections bring
the company a step closer to launching Liquids and
Oral Contraceptives in the US. In addition, the
Company's Tarapur and Goa facilities were inspected
by the US FDA in 2009 and found acceptable. Goa was
re-inspected in early 2010 by the US FDA and again
found to be compliant. Lupin's API plant at Tarapur
was also audited by the UK MHRA and found to be
compliant with cGMP.

human resources
employee development
and engagement is at the
core of our consistent
business growth
Divakar Kaza
President - Human Resources Development
42
GO!
nurturing innovation
At the very heart of Lupin and our phenomenal MANAGING DIVERSITY

growth story is our biggest asset - Our People. Managing a diverse workforce is no longer a choice
but an imperative. In an age of cultural pluralism,
MD& A
We are proud of their passion and commitment to the
multiculturalism is needed to manage diversity
company and the alignment of their aspirations and
effectively. Lupin realises that managing diversity
dreams to our shared vision. Our growth and successes
means acknowledging people's differences and
are met equally by even greater steps to ensure that we

recognising differences as valuable. This
not only comply but lead in areas of processes and
enhances good management practices by
human relations to unleash and harness innovation at
preventing discrimination and promoting
every level within the organisation. It is the behavior of
inclusiveness. It stems from an understanding
our leadership team and our people, their shared
that we all operate on a single stage. The goal
wisdom, which has gone into creating the business
has been to create a workplace that truly values
democracy that is Lupin - a Company where
diversity: a workplace built around the core
entrepreneurship and innovation thrive.
values of meritocracy and innovation.
As a closely knit team of over 10,500 employees
There has been a visible rise in the number of
globally, we have outperformed the Industry over the
women professionals in core areas of the Company
last 6 years. It is against this backdrop that the Human
such as R&D, Regulatory and Quality Compliance.
Resources function assumes a strategic and critical
The Company has also set up management and
role. HR has gone beyond traditional employee
leadership programs to help promote talent within
engagement programs to ensure that Lupin not
the women workforce of the organisation. Today,
only nurtures talent and leadership internally, but
around 18% of Lupin's worldwide workforce are
also develops platforms that help identify potential
women, one of the highest in the generic
talent by creating opportunities to learn, perform
pharmaceutical industry, up from 6% in 2004.
and succeed.
The agenda now is to enhance mindsets that
NURTURING LEADERSHIP enable our people to consistently think global
Through customised training programs, Lupin has
and act local. Structured, well designed induction
today ensured the creation of a reservoir of leaders.
programs aimed at mentoring new employees for
During the last financial year, Learning and
their effective settling-in and assimilation of our
Development was focused on creating world-class
corporate values are in place. These programs
developmental opportunities and provided inputs for
ensure that every employee is not only clear
the largest ever number of employees across locations,
about their role and expected contribution but
levels, functions and geographies. Team capabilities
also aligned to the overall corporate growth
were also strengthened through collective experience-
objectives.
based training programs. Our strategic tie-ups with
leading management institutes such as IIM Today, HR has become a critical catalyst for
Ahmedabad, NMIMS Mumbai and leading technology continuous transformation during a phase of
institutions such as the Birla Institute of Technology and rapid growth and transition; shaping not only
Science (BITS Pilani), University of Pune and Manipal processes, people and mindsets, but creating a
University helped our employees pursue their academic culture that typifies Lupin and unleashes
interests concurrently while working at Lupin. innovation at every level within the organisation.

financial commentary
robust financial
performance and a strong
Balance Sheet give us the
confidence to go for even
bigger opportunities as we
move ahead
Ramesh Swaminathan
President - Finance & Planning
44
stable and on-course
The Company recorded a growth of 25% in and Lupin is today the 8 th Largest and fastest
consolidated revenues to INR 47,678 million in growing Top 10 generic pharmaceutical players
FY 2010 from INR 38,238 million in FY 2009. The
MD& A
in the US market, not to mention the largest
Company also generated INR 6,816 million in net Indian generic player.
profits, an increase of 36% over the previous year's
profit of INR 5,015 million. All the subsidiaries of the Company be they in Japan,

Europe and the Rest of the World markets clocked
The growth in profits was an outcome of expanding impressive sales and contributed to the Company's
market share in key markets globally and achieving a overall growth. The Company's overall sales outside
better revenue mix out of our focus on niche difficult- India grew by 29% during FY 2010, and now make
to-make products and entry into new high barrier up 67% of the company's gross sales.
therapy areas. Furthermore, the Company also
improved upon its profitability indices because of Lupin's India Region Formulations business
continued focus on achieving cost leadership derived continues to operate as a well-oiled machine and
from Lupin's vertically integrated business model and registered a commendable net sales growth of 18%.
its API strengths. The Indian Region Formulation business accounted
for 28 % of the Company's total sales.
These factors contributed towards the growth in
Earnings before Interest, Depreciation, Tax and EXPANDING GLOBAL FOOTPRINT
Amortisation (EBIDTA) by 34%, from INR 7,439 million The company continues to grow in all markets of
in the previous year to INR 9,981 million. During the direct onshore operations. Pharma Dynamics in
year, EBIDTA rose to 21% of net sales. South Africa clocked in INR 1,328 million in revenues
for the year.
ROBUST GROWTH ACROSS KEY MARKETS
Lupin Pharmaceuticals Inc. (LPI), the Company's Kyowa in Japan has already been well integrated into
subsidiary in the US, continues to chart out robust the Lupin system. The Japanese subsidiary posted
growth in both the Brand as well as the Generics robust net sales of INR 5,341million in FY 2010, and
business with overall Formulation sales rising to now contributes 11% of Lupin's total revenues.
INR 16,542 million recording a growth of 32% in
INR terms over the previous year. The bygone R&D SPEND
fiscal was an exciting year for LPI with the Lupin has consistently invested 6-7% of its overall
Company adding two valuable brand assets to its net sales into its research and development efforts.
portfolio; AllerNaze® that we acquired from The expenditure on R&D during the year stood at
Collegium and the Antara® acquisition from INR 4.1 billion, 8.7% of the Company's net sales. In
Oscient. Existing sales for the AeroChamber Plus® addition to ramping up our existing research areas,
line of products and our flagship brand, Suprax® significant investments were made into revamping
continued to grow well during FY 2010. Lupin's the Company's Novel Drug Discovery and
Generic business recorded even stronger growth Development program.

HEALTHY CASH FLOWS & EFFECTIVE capabilities on an on-going basis to meet current
RESOURCE PLANNING and future growth.
Despite spending on brand acquisitions in the US and
capacity expansions in most of our facilities in
DIVIDENDS AND TAXATION
addition to creating several new plants during the The Company recorded Earnings per Share of INR
year, the cash flow position of the Company remains 79.18 during FY 2010, up 30% from the previous
healthy. Thanks to judicious financial planning, the year. The Board recommended a dividend of 135%,
ability of the Company to raise credit remains an aggregate amount of INR 1,400 million, inclusive
unparalleled. Lupin's short-term debt program of tax on Dividend. This record step-up in the
continues to receive the highest rating from ICRA. In dividend rate is a strong indicator of the confidence
fact, subsequent to the global financial meltdown, that the Board of Directors have in the financial
Lupin's FCCB bonds were amongst the few that strength of the Company.
continued to be quoted well above par, and all the
residual bonds have been already redeemed or The Company has implemented several tax saving
converted into shares. initiatives to optimise its taxation in various parts of
the world. In the Indian context, the aggregate tax
On the working capital front, there was tremendous obligations of the Company were lower as compared
optimisation. The Net Working Capital increased by to the previous year due to higher turnovers from Tax
only 4%, whilst the sales of the Company increased by exempt production zones. The effective tax rate for
25%. The working capital optimisation exercise that the consolidated financials for FY 2010 was 16%.
we have currently undertaken will yield even greater
results in the days to come. The Company has increased its reserves and
surplus by INR 11,369 million to INR 24,789 million
Overall interest payments were INR 385 million for FY during FY 2010.
2010, reflecting an average cost of borrowing of 4%
for the year. The total debt at the year-end stood at INTERNAL CONTROL SYSTEMS
INR 11,399 million and the Debt Equity Ratio The Company has in place sound internal control
improved to 0.44 as on 31st March 2010 from 0.62 as systems commensurate to its size, scale of business
on 31st March 2009. and complexity of operations. Clearly defined
policies, procedures and inbuilt checks and controls,
CAPITAL EXPENDITURE supplement the internal control procedures. A well
During FY 2010, the Company invested INR 4,433 established and empowered system of internal
million on capital expenditure. The Company has audits and control procedures independently
set up multiple new API plants and a new ophtal reviews the financial and operational controls and
formulation facility. We have also expanded reports deviations, if any, and further enables course
capacities at most of our formulation and API correction, as and when required. The Company is
plants as well as at our research facility in Pune. constantly engaged in practicing the best financial
The Company would continue to make and operational control systems, as per international
investments into building fresh capacities and practices and standards.
46
GO!
The reputed firm of Chartered Accountants M/s Lupin's acquisition philosophy is predicated on
Khimji Kunverji and Co., are engaged as the internal the need to enter into certain markets which are
auditors who submit their reports to the Audit of strategic interest. The acquisitions have been
MD& A
Committee of the Board, which reviews the same and carried through in such a way that there were no
provides guidance on measures to be initiated to disruptions to extant managements. All our
further enhance the efficiency and effectiveness of acquisitions were well evaluated and deliberated

this vital control system. internally and were prudent in terms of outlays.
INFORMATION TECHNOLOGY The Drug Price Control Order (DPCO) continues to

During FY 2010, Lupin invested in upgrading its SAP challenge the entire Indian Pharmaceutical
and Business Intelligence platforms. With the new Industry. However, over the years, Lupin's basket
upgraded Enterprise Resource Planning system in of products and the chosen markets and
place, the Company is well equipped to leverage its segments it operates in, have meant that DPCO
existing technology investments to ensure directives are becoming increasingly less material
operational and transactional control and to the overall business of the Company.
compliance, across the organisation. The new
systems are expected to create a global, The volatility in PenG prices, a key raw material
standardised, scalable and flexible platform for input to APIs, is a recurring phenomenon
Lupin's global supply chain program and would help stemming from the vagaries in the supply and
achieve operational efficiencies to support the demand positions with primarily Chinese
Company's growth objectives globally. manufacturers. These situations tend to be
short term in nature, nevertheless contribute
RISKS CONCERNS & THREATS to the volatility in the price movement of this
Over the years, the Company has consciously adopted key input. Over the years, the Company has
prudent risk management measures and practices to gained experience and expertise in dealing
mitigate environmental, operational and business with such volatility and mitigating its impact
risks. The Company believes that it has the requisite on the business.
competencies to handle varied risks and is continually
evolving proactive strategies to counter them. It has been seen recently that regulatory authorities
globally are becoming more vigilant on
Price erosion within the global generic markets is one pharmaceutical players with respect to compliance
of the key threats faced by all generic players. Due to to standards and regulations. Lupin believes in
its vertically integrated model, in which the being compliant in all respects at all times. The
Company's strengths in API and Intermediates play a Company takes all its compliance requirements
crucial role in maintaining the competitive position of extremely seriously and maintains rigorous systems
its Formulation products, and our focus on value to withstand scrutiny at all times. Lupin is
added products, Lupin is well positioned to thrive in a committed to doing whatever is necessary to meet
highly competitive environment, consistently and exceed norms laid by global regulatory
gaining market share and enjoying quality earnings. authorities.

corporate social obligation
be the change
you want to see
in the world
Mahatma Gandhi
We truly believe that it is our obligation to do all we uplifting people and families below the poverty line
can to enrich the communities that we live in. Over as well as women empowerment. Today, as many as
the years, The Lupin Human Welfare & Research 56,000 families are covered under the aegis of the
Foundation (LHWRF) has been successful in creating Foundation through agriculture, animal husbandry
and undertaking well-planned sustainable and and the rural industry activities of LHWRF.
integrated rural development programs - social and
economic initiatives that continue to touch and
ECONOMIC DEVELOPMENT
transform the lives of over two millions rural folk in LHWRF's principal focus is on creating employment
over 2,200 villages spread across 4 states in India - and employability by imparting skills and creating
Rajasthan, Madhya Pradesh, Maharashtra and
programs that would create job opportunities -
Uttarakhand. The Foundation through its work has
specifically for the youth and women. During FY
emerged as a social and economic catalyst
2010, the Foundation worked on strengthening
empowering rural communities.
areas like agriculture and animal husbandry by
The Foundation continues to work on enriching the working on programs that would yield higher output
lives of the poorest of the poor. Our focus is on and offer value addition to help improve the overall
48
GO!
empowering communities
economic realisation of the rural communities. The slum and rural areas. The Foundation is planning
Foundation also emphasised on promoting 100% coverage to ensure that all children are fully
secondary occupations such as the local cottage immunized and vaccinated in these areas.
MD& A
industry, handicrafts and services sector by creating
fairs and promoting them. It also worked on The foundation has always believed that creating
introducing better technologies and best practices the right infrastructure is the key to progress and

with a view to improve quality and market prosperity. LHWRF programs were focused on
acceptability for these products in new markets. building internal roads and basic sanitation
facilities in various districts in Rajasthan. It also
SOCIAL DEVELOPMENT focused on strengthening and revamping formal
LHWRF has always aimed at the development of education and community centers and training
proper social, cultural, scientific and spiritual and production centers in various States.
attitudes amidst the rural community. The endeavor
is to instill an urge to not only work but be THE NEXT STEPS
responsible for their own development in villagers, LHWRF has always believed that any business has a
especially women, children, the youth and older direct social obligation to the community and
people. Significant social development initiatives society it exists and works with, and its role cannot
undertaken during 2010 were in the areas of Health, remain restricted to returns to stockholders or its
Women Empowerment, Infrastructure Development customers. After 22 years of having served rural
and Renewable Energy. The Foundation aims to communities, LHWRF today is not only focused on
continue bringing qualitative and quantitative bringing the benefits of a knowledge-based
improvement in the health services across areas that economy to the poor and the needy but it stands
are bereft of medical facilities. LHWRF has been for ensuring better Public health services and for
working on establishing health centers and mobile creating scalable and replicable programs that
health units to provide medical care to the poor would ensure Education and Employability for
populace, targeting women and children residing in rural India.

welcome to the future
50
GO!
billion is the new zero
Your Company has achieved several benchmarks this year. Not just in terms of revenues but in
improved product development, market entries and in our research initiatives. Importantly there
is a groundswell of continued and passionate commitment from our people across the business
units and around the world.
As current mentors of the organisation, we must also ensure that our pace and successes are met
equally by ever greater steps to ensure that we not only comply but lead in areas of human
relations, safety, technology, innovation and corporate responsibility or, as we say at Lupin, our
obligations to the communities who touch our lives directly or indirectly.
We have carefully planned, innovated and engineered a future that will take Lupin across new
thresholds to higher milestones. At the same time we are recalibrating our already high standards
of performance, corporate governance and responsibility. So, Lupin is resetting the achievements
of the past as the “new Zero”. We're proud to have been born in India, but we live in the knowledge
that we now operate on a global stage as a transnational company and must be ready to take our
place as a responsible global pharmaceutical major.
Thank you for being a part of the Lupin story. We welcome your correspondence on any issue as
we develop and prepare for the future of Lupin. It's going to be a great journey.
With Kind Regards and Best Wishes
Dr Desh Bandhu Gupta Dr Kamal K Sharma

Founder & Chairman Managing Director
dbgupta@lupinpharma.com kamalsharma@lupinpharma.com

five year financial summary
CONSOLIDATED BALANCE SHEET (INR million)
As at March 31, 2006 2007 2008 2009 2010
SOURCES OF FUNDS
Shareholders' funds
Equity Share Capital 401.4 803.4 820.8 828.2 889.4
Reserves and Surplus 5,831.4 7,929.7 11,976.0 13,420.0 24,788.9
6,232.8 8,733.1 12,796.8 14,248.2 25,678.3
Minority Interest 15.8 94.5 142.5 254.9
[31.03.2007 Rs.27/-]
Loan Funds
Secured Loans 4,409.5 3,911.2 7,080.6 7,569.2 8,722.4
Unsecured Loans 4,839.5 4,736.4 4,948.2 4,663.5 2,676.1
9,249.0 8,647.6 12,028.8 12,232.7 11,398.5
Deferred Tax Liabilities (net) 956.1 1,027.2 1,248.0 1,387.2 1,630.4
TOTAL 16,453.7 18,407.9 26,168.1 28,010.6 38,962.1
APPLICATION OF FUNDS
Fixed Assets
Gross Block 8,561.3 9,527.9 14,858.8 18,200.3 22,937.1
Less : Depreciation and Amortisation 2,095.6 2,382.1 4,697.5 6,188.3 7,072.2
Net Block 6,465.7 7,145.8 10,161.3 12,012.0 15,864.9
Capital Work-in-Progress 252.1 825.5 963.8 2,239.7 3,578.7
6,717.8 7,971.3 11,125.1 14,251.7 19,443.6
Goodwill on Consolidation - - 1,872.3 3,173.7 3,196.8
Investments 28.0 28.0 58.2 215.6 264.3
Deferred Tax Assets (net) 17.1 1.3 141.2 222.8 195.4
Current Assets, Loans & Advances
Inventories 3,429.1 4,298.1 7,893.4 9,571.6 9,714.9
Sundry Debtors 3,111.6 4,038.5 7,439.0 9,179.7 11,265.7
Cash and Bank Balances 4,774.2 3,844.5 2,741.8 777.7 2,015.3
Loans and Advances 1,999.6 2,448.2 2,367.0 2,779.7 4,758.6
13,314.5 14,629.3 20,441.2 22,308.7 27,754.5
Less: Current Liabilities & Provisions
Current Liabilities 3,146.9 3,515.2 6,018.8 10,334.8 9,649.4
Provisions 476.8 706.8 1,451.1 1,827.1 2,243.1
3,623.7 4,222.0 7,469.9 12,161.9 11,892.5
Net Current Assets 9,690.8 10,407.3 12,971.3 10,146.8 15,862.0
TOTAL 16,453.7 18,407.9 26,168.1 28,010.6 38,962.1
52
CONSOLIDATED PROFIT AND LOSS ACCOUNT (INR million)
Year ended March 31, 2006 2007 2008 2009 2010
INCOME
Sales (Gross) 17,503.4 20,716.5 27,730.1 38,237.8 47,678.4
Less : Excise Duty 549.4 579.4 666.4 479.0 273.2
Sales (Net) 16,954.0 20,137.1 27,063.7 37,758.8 47,405.2
Other Operating Income 669.0 1,733.2 1,853.2 907.6 1,302.7
Other Income 72.0 257.3 211.3 46.1 142.0
Total Income 17,695.0 22,127.6 29,128.2 38,712.5 48,849.9
EXPENDITURE
Cost of Materials 8,259.2 9,320.8 11,638.0 16,043.1 19,694.2
Personnel Expenses 1,689.6 2,199.9 3,076.0 4,871.3 5,871.5
Manufacturing and Other Expenses 4,769.6 5,694.1 7,991.2 10,359.2 13,303.3
Total Expenses 14,718.4 17,214.8 22,705.2 31,273.6 38,869.0
Profit before Interest,

Depreciation and Tax 2,976.6 4,912.8 6,423.0 7,438.9 9,980.9
Interest and Finance Charges 312.8 372.2 373.5 498.6 384.9
Depreciation and Amortisation 408.8 466.1 647.4 879.9 1,239.1
Profit before Tax 2,255.0 4,074.5 5,402.1 6,060.4 8,356.9
Current Tax 402.6 779.6 1,022.6 727.0 1,109.8
Deferred Tax 28.0 128.5 180.6 106.2 250.4
Fringe Benefit Tax 90.7 80.0 114.8 149.8 -
Net Profit before Minority Interest

and Share of Loss in Associates 1,733.7 3,086.4 4,084.1 5,077.4 6,996.7
Minority Interest 3.8 0.8 1.3 28.6 111.6
Share of Loss in Associates - - 0.3 33.4 68.8
Net Profit 1,729.9 3,085.6 4,082.5 5,015.4 6,816.3
Note : Figures for the previous years have been suitably regrouped to make them comparable.

LUPIN 2010
reports & financials

55 Directors' Report
65 Corporate Governance Report
82 Auditors' Certificate on Corporate Governance
83 Auditors' Report
86 Financial Statements
123 Auditors' Report on Consolidated Financial Statements
124 Consolidated Financial Statements
166 Section 212
167 Financial Information of Subsidiary Companies
54
Directors' Report
To the Members
Your Directors have pleasure in presenting their report on the business and operations of your Company for
the year ended March 31, 2010.
Financial results
(Rs. in million)
Standalone Consolidated
2009-10 2008-09 2009-10 2008-09
Sales (Gross) 36660.6 29419.4 47678.4 38237.8
Profit before interest, depreciation and tax 8186.1 5792.5 9981.0 7438.9
Less: Interest and finance charges 283.8 415.2 384.9 498.6
Less: Depreciation and amortisation 815.7 663.5 1239.2 879.9
Profit before tax 7086.6 4713.8 8356.9 6060.4
Less: Provision for taxation (including wealth tax, deferred
tax and fringe benefit tax) 597.3 544.1 1360.2 983.0
Net Profit before Minority Interest and Share of loss in Associates - - 6996.7 5077.4
Less: Minority Interest and Share of loss in Associates - - 180.4 62.0
Net Profit 6489.3 4169.7 6816.3 5015.4
Add: Surplus brought forward from previous year 6368.5 4910.1 6688.6 4407.8
Amount available for Appropriation 12857.8 9079.8 13504.9 9423.2
Appropriations:
Transfer to General Reserve 1500.0 1500.0 1500.0 1500.0
Dividend on Ordinary Shares by an Overseas Subsidiary - - 36.6 21.2
Proposed dividend on Equity Shares 1200.7 1035.3 1224.7 1035.3
Dividend on Equity Shares for previous year 10.8 0.1 10.8 0.1
Corporate tax on dividend 201.2 175.9 211.0 178.0
Balance carried to Balance Sheet 9945.1 6368.5 10521.8 6688.6
12857.8 9079.8 13504.9 9423.2
Performance Review
Your Company scaled newer heights and benchmarks in terms of sales and profits for the year ended March 31,
2010. Consolidated sales at Rs.47678.4 mn., grew by 25% over Rs.38237.8 mn. of the previous year.
International markets accounted for 67% of the revenues. Net Profit at Rs.6816.3 mn. as against Rs.5015.4 mn.,
registered a growth of 36%. Earning per share was higher at Rs.79.18 as compared with Rs.60.84 for the
previous year.
Dividend
Your Directors are pleased to recommend dividend of Rs.13.50 per equity share of Rs.10/- each, absorbing an
amount of Rs.1400.1 mn., inclusive of tax on dividend.
Share Capital
During the year, the paid-up equity share capital of your Company rose by Rs. 61.2 mn. consequent to: -
a) allotment of 5816742 equity shares of Rs.10/- each upon conversion of Foreign Currency Convertible
Bonds aggregating US $ 71.3 mn. and
b) allotment of 307541 equity shares of Rs.10/- each to eligible employees under the 'Lupin Employees Stock
Option Plan 2003', 'Lupin Employees Stock Option Plan 2005' and 'Lupin Subsidiary Employees Stock
Option Plan 2005'.

Sub-division of Shares
The Board of Directors is pleased to recommend the sub-division of one share of the face value of Rs.10/- each
into five shares of the face value of Rs.2/- each, subject to approval of shareholders at the forthcoming Annual
General Meeting.
Foreign Currency Convertible Bonds (FCCBs)
Of the FCCBs of US $ 100 mn. issued by the Company in January 2006, Bonds aggregating US $ 98.6 mn. were
converted (including Bonds of US $ 71.3 mn. during the year) at a pre-determined price of Rs.567.04 per share
in accordance with the terms of the issue. The balance FCCBs for US $ 1.4 mn. were redeemed during the year.
There are no Bonds outstanding as on March 31, 2010.
Credit Rating
ICRA Limited reaffirmed its “A1+” (pronounced A one plus) rating for your Company's short-term debt
(including Commercial Paper) programme of Rs.2500 mn. This rating is the highest-credit-quality rating
assigned by ICRA for such borrowings.
ICRA Limited assigned “LAA+” (pronounced “L Double A Plus”) rating for your Company's Non Convertible
Debenture programme of Rs.5000 mn. This rating is the high-credit-quality rating assigned by ICRA for
long-term debt instruments.
Management Discussion & Analysis
A detailed Management Discussion and Analysis forms part of this Annual Report.
Subsidiary Companies
As on March 31, 2010, the Company had 14 subsidiaries.
During the year, Lupin (Europe) Ltd., U.K. and Lupin Pharma Canada Ltd., Canada were incorporated on June 5,
2009 and June 18, 2009 respectively. Lupin Holdings B.V., the Netherlands transferred its holdings in Max
Pharma Pty Ltd., Australia, a wholly-owned subsidiary of the Company to Generic Health Pty. Ltd., Australia, an
associate of the Company upon which Max Pharma Pty Ltd. ceased to be a subsidiary of the Company w.e.f.
May 31, 2009.
Statements pursuant to Section 212 (1)(e) of the Companies Act, 1956 and relating to performance/financials
of the subsidiary companies form part of this Annual Report.
Amalgamation
With a view to achieving synergies of operations, optimum utilisation of resources and control costs, the Board
of Directors decided to amalgamate Novodigm Ltd., Lupin Pharmacare Ltd. and Lupin Herbal Ltd. (wholly-
owned subsidiaries of the Company) with Lupin Limited w.e.f. April 1, 2009 i.e. 'the Appointed Date'.
The Hon'ble High Court of Judicature at Bombay, by its Order dated January 8, 2010, sanctioned the scheme of
amalgamation between Lupin Pharmacare Ltd. and Lupin Herbal Ltd. with the Company subject to the order
to be passed by the High Court of Gujarat sanctioning the scheme of amalgamation between Novodigm Ltd.
and the Company. The order of the Gujarat High Court is awaited pending which, the standalone accounts of
the Company for the year ended March 31, 2010 do not include financials of Novodigm Ltd., Lupin Pharmacare
Ltd. and Lupin Herbal Ltd.
Corporate Governance
Report on Corporate Governance forms an integral part of this Annual Report. The Auditors' certificate
certifying compliance with the conditions of Corporate Governance under Clause 49 of the Listing Agreement
is also annexed to this Report.
Directors' Responsibility Statement
Pursuant to the provisions of Section 217(2AA) of the Companies Act, 1956 (Act), your Directors confirm that:
i) in the preparation of the annual accounts, the applicable accounting standards had been followed along
with proper explanation relating to material departures;
56
ii) 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 your Company at the end of the financial year ended March 31, 2010 and of the profit of your
Company for that year;
iii) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding the assets of your Company and for preventing
and detecting fraud and other irregularities; and
iv) the Directors had prepared the annual accounts on a 'going concern' basis.
Directors
Mr. K. V. Kamath, Dr. Vijay Kelkar and Mr. Richard Zahn, who were appointed as Additional Directors
w.e.f. January 29, 2010, hold office up to the date of the forthcoming Annual General Meeting. Notices have
been received from certain shareholders proposing their names for appointment as directors.
Due to professional commitments, Mr. Marc Desaedeleer and Mr. Sunil Nair resigned from the directorship of
the Company w.e.f. January 29, 2010 and May 5, 2010 respectively. The Board records its sincere appreciation
for the valuable contributions made by Mr. Marc Desaedeleer and Mr. Sunil Nair during their tenure as directors
of the Company.
Dr. Kamal K. Sharma and Mr. D. K. Contractor retire by rotation at the forthcoming Annual General Meeting and
are eligible for re-appointment.
Conservation of Energy,Technology Absorption and Foreign Exchange Earnings and Outgo
The particulars as prescribed by Section 217(1)(e) of the Companies Act, 1956 read with Companies (Disclosure
of particulars in the report of Board of Directors) Rules, 1988 relating to conservation of energy, technology
absorption and foreign exchange earnings and outgo are given in Annexure 'A'.
Fixed Deposits
Your Company has not accepted any fixed deposit during the year under review. No deposit was outstanding
as on March 31, 2010. As on March 31, 2010, 106 deposits aggregating Rs.1.18 mn. were lying unclaimed with
the Company, of which four deposits aggregating Rs.20,000/- have since been claimed. Reminders are
continuously sent to the depositors concerned to claim repayment of their matured deposits.
Auditors
The Statutory Auditors of the Company, M/s. Deloitte Haskins & Sells, Chartered Accountants, retire at the
conclusion of the forthcoming Annual General Meeting and are eligible for re-appointment. The Audit
Committee and the Board recommend the re-appointment of M/s. Deloitte Haskins & Sells, Chartered
Accountants, as Statutory Auditors of your Company.
M/s. Khimji Kunverji & Co., Chartered Accountants, Mumbai, are the Internal Auditors of the Company.
Cost Auditors
Pursuant to the provisions of Section 233B of the Companies Act, 1956 and with the prior approval of the
Central Government, Mr. S. D. Shenoy and Mr. D. H. Zaveri, practising Cost Accountants, were appointed to
conduct audit of cost records of Bulk Drugs and Finished Dosages respectively. Cost Audit Reports would be
submitted to the Central Government within the prescribed time.
Employees Stock Option Plans
Pursuant to the provisions of the Securities and Exchange Board of India (Employee Stock Option Scheme and
Employee Stock Purchase Scheme) Guidelines, 1999, the details of stock options granted by the Company as
on March 31, 2010 under 'Lupin Employees Stock Option Plan 2003', 'Lupin Employees Stock Option Plan 2005'
and 'Lupin Subsidiary Companies Employees Stock Option Plan 2005' are set out in Annexure 'B' forming part
of this Report.

Human Resources
Your Company remains committed and focused on its most valuable resource viz. people. The Company
believes that people play a pivotal role in driving performance and has effectively empowered them. In
pursuance of the Company's commitment to retain and develop best available talents, several programmes
are conducted at various levels on a regular basis. Employee relations continued to be cordial and harmonious
at all levels and in all the units of the Company.
Particulars of Employees
Particulars of employees required to be furnished pursuant to the provisions of Section 217(2A) of the
Companies Act, 1956 (Act), read with Companies (Particulars of Employees) (Amendment) Rules, 2002, are
given as an annexure to this Report. However, as per the provisions of Section 219(1)(b)(iv) of the Act, the
Report and Accounts are being sent to all the members excluding the aforesaid annexure. Members, who are
interested in the said information, may write to the Company Secretary at the registered office of the Company.
Acknowledgements
Your Directors wish to express their gratitude to the Central and State governments, investors, analysts,
financial institutions, banks, business associates and customers, the medical profession, distributors and
suppliers for their whole-hearted support. Your Directors commend all employees of your Company for their
continued dedication, significant contributions, hard work and commitment.
For and on behalf of the Board of Directors
Dr. Desh Bandhu Gupta

Chairman
Mumbai, May 5, 2010
58
Annexure 'A' to the Directors' Report
Pursuant to the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988.
A. CONSERVATION OF ENERGY
a) Energy conservation measures taken:

i) Installed Plate Heat Exchanger for saving consumption of furnace oil in the Boiler.
ii) Consumption of diesel was brought down by providing 20KVA DG power on power staggering days.
iii) Timer set for ETP blower thereby reducing number of hours of operation.
iv) Resized header and network correction for optimum chilled water distribution.
v) Replaced existing chilled water pumps with pumps consuming less power.
vi) Installed Trane Chiller with 60KVAR capacitor.
vii) Replaced existing condenser pumps with new ones.
viii) Installed additional capacitors at load end.
ix) Use of State Electricity Board power instead of Diesel Generated power.
x) Installed an additional multiple effect evaporator to evaporate waste water and use the same in
the plant.
xi) Replaced HPSV lamps with CFL ones.
xii) Installed economiser on waste heat recovery boiler.
xiii) Installed two stage efficient vaccum pumps.
xiv) Installed aerodynamically designed FRP fan at cooling tower.
b) Additional investments and proposals:

i) Install condensing economizer to recover thermal energy from boiler and CPP exhaust flue gases.
ii) Install Captive power plant jacket heat recovery system.
iii) Review insulation effectiveness on hot and cold surfaces.
iv) Monitor and review the operation of ventilation blowers.
v) Replace desiccant air dryer with refrigerated air dryer.
vi) Regroup and resize cooling water pumps and decentralise chilled brine system to reduce piping
losses.
vii) Steam header grouping.
viii) Installed VFD for air compressor motors.
ix) Improve condensate recovery for water as well as fuel consumption.
c) Impact of measures in (a) & (b):

i) Reduction in overall energy cost.
ii) Reduced fuel water and power consumption.
iii) Optimal consumption of resources resulting in overall efficiency improvement
iv) Boiler efficiency improved.
d) Total energy consumption and energy consumption per unit of production:

Details are given in Form A

FORM 'A'
(See Rule 2)
FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY
Year ended Year ended

March 31, 2010 March 31, 2009
A. POWER & FUEL CONSUMPTION
1. Electricity
a) Purchased Units Thousand KWH 138496 108106
Total amount Rs. in Mn. 732.6 560.1
Rate/unit (KWH) Rs. 5.3 5.2
b) Own Generation
i) Through Diesel Generator (HSD)
Units Thousand KWH 4737 4353
Units per litre of diesel oil KWH 3.1 3.1
Cost/unit (KWH) Rs. 12.2 11.4
ii) Through Generator (furnace oil)
Units per litre of furnace oil KWH 4.3 4.1
iii) Through Generator (gas)
Units per M3 of Natural gas KWH 3.5 3.3
2. Coal Nil Nil

3. i) Furnace oil (Boiler)
Quantity KL 13270 14024
Rate/unit (KL) Rs. 22196 23780
ii) Furnace oil (Power Plant)
Quantity KL 1991 4661
Rate/unit (KL) Rs. 17862 19563
4. Natural gas
Quantity Cu. mts. 12221028 9005477
Rate/unit (Cu. mt.) Rs. 13.6 10.8
B. CONSUMPTI0N PER UNIT OF PRODUCTION:

The Company manufactures APls and several drug formulations of different pack sizes. It is therefore,
impractical to apportion the consumption and cost of utilities to each product.
NOTE:
There are no specific standards, as the consumption per unit depends upon the product mix. Variations in
consumption are due to different product mix.
60
B. TECHNOLOGY ABSORPTION:
e) Efforts made in technology absorption as per Form B are given below:
FORM 'B'
(See Rule 2)
FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO ABSORPTI0N
Research and Development (R & D)

1) Specific areas in which R&D was carried out by the Company:
The state-of-the-art Research Park at Pune was at the epicentre of the Company's R&D initiatives which
focussed broadly on Generics Research comprising Process and Formulations Research, Advanced Drug
Delivery Systems (ADDS), Novel Drug Discovery and Development (NDDD) and Biotechnology
Research. It was a prolific year for generics process research programmes wherein focus was on process
and formulations research. The ADDS program emerged as a key growth driver and area of strategic
focus within the overall R&D program. With significant investments being channelised towards
strengthening its ADDS research capabilities, different drug delivery platforms were developed.
Bio-adhesive and gastro retentive technologies were deployed in building unique products, based on
which, differentiated extended release products are currently in advanced stages of development.
There was a strong accent on controlled release and exclusive, unique first-to-file niche filings. The
Company's state-of-the-art Biotech research & manufacturing facility has been approved by the
Institutional Bio Safety Committee for research on recombinant DNA and also accredited as a Biotech
Centre by the Bioinformatic Centre of the University of Pune. Lupin BioResearch Center's (LBC)
state-of-the-art cGCP and cGLP facilities for Bio-Availability and Bio-Equivalence (BA/BE) clinical studies
spread over 23500 square feet with a capacity of 56 beds, became fully operational. The said facility
carries out Pilot and Pivotal BE studies for generics as also investigations for new products and ADDS
programmes. LBC also carries out BA and Clinical end-point studies, including inspections, DCGI, DSIR
and NABL pre-assessments. Necessary infrastructure was built and pre-requisite technologies and
skill-sets acquired. Targets were identified; research programs initiated and back-up programs
evaluated for prospective research areas. The medicinal chemistry facility was activated which would
ascertain the rationale, feasibility, IP commercial potentials for clearly defining milestones and
decisions. Validation process for the new biology facility was initiated where; highly sophisticated
robotic Functional Assaying machines and High Throughput Screening capacities were commissioned.
2) Benefits derived as a result of the above R&D:

The Company emerged as one of the top 10 ANDA filers in the US market. During the year, the Company
filed 19 US DMFs taking the cumulative total to 104 and 4 EDMFs/AU DMFs, featuring several unique
and complex APIs such as Prostaglandins for Oral Contraceptives. The formulations research group filed
37 Abbreviated New Drug Applications (ANDAs) with the USFDA and received 7 approvals, out of which,
3 were tentative approval. The cumulative number of ANDA filings stands at 127, with 40 approvals,
including 6 tentative approvals till date. The total cumulative filings within the EU stands at 65, with 31
approvals till date. Filings were made in new therapeutic areas such as Opthalmics and Dermatology in
addition to expanding the number of filings for Oral Contraceptives to 22 ANDAs till date. The
cumulative first-to-file and exclusive opportunities now stand at 12. The Company successfully out-
licensed its Bio-adhesive Technology platform to Salix Pharmaceuticals, a US major, for use with
Rifaximin. This validates the investment that the Company made in the ADDS program over the years as
also it's growing capabilities in the drug delivery space. The Company filed 26 Formulations patents,
84 API/Process patents and 14 NCE patents. Approvals were received for 4 Formulations patents and
31 NCE patents. The Company has filed 5 patents for the technologies developed by bio-technology
research and published 6 research articles. The Company has a pipeline of 4 Investigational New
Drugs for addressing Migraine, Psoriasis and Tuberculosis and the same remain in various phases of
clinical development.
3) Future plan of action:

Efforts are being directed towards developing, discovering and commercialising novel drugs to address
disease areas with significant unmet medical need. The Company plans to launch its first Biological in
the Indian market and is exploring collaborative opportunities in the field of new biological
formulations and biological entities. The Company aims to license its ADDS products to innovator
companies whilst also developing niche brands for itself. Plans are afoot to commission cGMP facilities
for microbial as well as mammalian suites.

4) Expenditure on R&D (Consolidated):
a. Capital Rs. 681 . 0 Mn.
b. Recurring (excluding depreciation of Rs.132.0 Mn.) Rs. 3438 . 1 Mn.
c. Total Rs. 4119 . 1 Mn.
d. Total R&D expenditure as a percentage of net sales 8 .7%
Technology absorption, adaptation and innovation:

i) Efforts in brief, made towards technology absorption, adaptation and innovation:
The Innovation Cell and the Intellectual Property Management Group work in conjunction to
identify well differentiated new therapy areas and the creation of a value based product pipeline
involving complex technologies. As the Company continues to explore new areas of research, it
would continue to focus on adopting and integrating latest innovations and technologies to
ensure that it becomes a knowledge-based, technology driven research organisation designed to
emerge as a global Pharma major.
ii) Benefits derived as a result of the above efforts:
The Company witnessed heightened activity as momentum gathered across the entire value
chain with development of cost-effective products, specifically for the advanced markets of US
and Europe.
iii) Imported technology:
During the year, the Company did not import any specific technology. The Company developed
technology through efforts of its in-house Research and Development.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO:

f) Information regarding exports activities and related matters is covered elsewhere in this Annual Report.
g) Earnings in foreign exchange was equivalent to Rs.21531.9 Mn. and expenditure Rs.7881.8 Mn.

Chairman
Mumbai, May 5, 2010
62
Annexure 'B' to the Directors' Report
DETAILS OF STOCK OPTIONS AS ON MARCH 31, 2010
In terms of Clause 12.1 of the Securities and Exchange Board of India (Employee Stock Option Scheme and
Employee Stock Purchase Scheme) Guidelines, 1999 (“the SEBI Guidelines”) the particulars of options on March
31, 2010 are as under :
No. Description Details
a) Options granted during the year l 151000 options under ESOP 2003
l 38000 options under ESOP 2005
l 75350 options under SESOP 2005
Each option is convertible into one equity share of nominal
value of Rs.10/- each.
b) The pricing formula l Exercise price for 254350 options is the market price of
the shares, as defined under the SEBI Guidelines.
l Exercise price for 10000 options is 50% of the market
price of the shares, as defined under the SEBI Guidelines.
c) Options vested during the year l 206551 options under ESOP 2003
d) Options exercised during the year l 204024 options under ESOP 2003
e) Total number of shares arising as result of l 204024 shares under ESOP 2003
exercise of options l 99267 shares under ESOP 2005
l 4250 shares under SESOP 2005
f) Options lapsed during the year Lapsed on account of resignation of employees:
g) Variation of terms of options There has been no variation in terms of the options granted
during the year, from those approved by the shareholders.
h) Money realised by exercise of options l Rs.59,522,162 under ESOP 2003
l Rs.46,109,696 under ESOP 2005
l Rs.1,844,394 under SESOP 2005
i) Total no. of options in force l 308421 options under ESOP 2003
j) Employee-wise details of options granted to
i. Senior Managerial Personnel 1. Dr. Kamal K. Sharma 10000 options under ESOP 2005
2. Dr. Dhananjay Bakhle 12000 options under ESOP 2003
ii. Employees to whom options granted 1. Dr. Dhananjay Bakhle 12000 options Under
amounting to 5% or more, of the total 2. Mr. Meneleo Hernandez 8000 options ESOP 2003
options granted during the year. 3. Dr. Kamal K. Sharma 10000 options
4. Mr. Lalit Singal 6500 options
5. Mr. Arun Khedkar 6500 options Under
6. Mr. Amit Kumar Jain 5000 options ESOP 2005
7. Mr. Amit Trivedi 5000 options
8. Mr. Krishna Mohan B 5000 options
9. Mr. William Gileza 7750 options
10. Mr. Tony Amato 10000 options
11. Mr. Larry Weaver 4400 options
12. Ms. Melody Sies 4000 options
13. Dr. Karl Roberts 9900 options Under
14. Ms. Ursula Lockl 7900 options SESOP 2005
15. Mr. Watanbe Kenji 10000 options
16. Mr. Ryo Akai 6500 options
17. Mr. Yoshiro Mukai 6500 options
18. Mr. Hiroshi Kobayashi 4000 options
iii. Employees to whom options equal to or Nil
exceeding 1% of the issued capital have
been granted during the year.

No. Description Details
k) Diluted earnings per share (EPS) pursuant to issue Rs.74.08
of shares on exercise of options and conversion
of FCCBs during the year and ESOPs
outstanding as on 31.03.2010, calculated in
accordance with Accounting Standard (AS) 20
'Earnings per share'
l) Where the company has calculated the employee Adjusted EPS:
compensation cost using the intrinsic value of - Basic Rs. : 74.77
the stock options, the difference between the - Diluted Rs. : 73.48
employee compensation cost so computed and
the employee compensation cost that shall have
been recognized if it had used the fair value of
the options, shall be disclosed. The impact of this
difference on profits and on EPS of the company.
m) Weighted average exercise prices and weighted Weighted average exercise price of options granted during
average fair values of options disclosed separately the year whose :-
for options whose exercise price either equals or a. Exercise price equals market price: Rs.1149.70
exceeds or is less than the market price of the stock b. Exercise price is greater than market price: N.A.
c. Exercise price is less than the market price: Rs. 614.08
Weighted average fair value of options granted during
the year whose :-
a. Exercise price equals market price: Rs.534.81
b. Exercise price is greater than market price: N.A.
c. Exercise price is less than the market price: Rs.794.41
n) Description of the method and significant assumptions used during the year to estimate the fair values of the
options, including the following weighted average information :
l Fair value calculated by using Black-Scholes option pricing formula.
l Stock price: The closing price on NSE as on the date of grant has been considered for valuing the
options granted.
l Volatility: The historical volatility of the stock till the date of grant has been considered to calculate the
fair value of the options.
l Risk free rate of return: The risk free interest rate on the date of grant considered for the calculation is
the interest rate applicable for a maturity equal to the expected life of the options based on the zero
coupon yield curve for Government Securities.
l Time to Maturity: Time to Maturity / Expected Life of option is the period for which the Company expects
the options to be live. The minimum life of a stock option is the minimum period before which the options
cannot be exercised and the maximum life is the period after which the options cannot be exercised.
l Expected dividend yield: Expected dividend yield has been calculated as an average of dividend yields
for the four financial year preceding the date of the grant.
Variables Weighted Average Information

Plan ESOP 2003 ESOP 2003 ESOP 2005 ESOP 2005 SESOP 2005
Grant date 22.09.09 29.01.10 29.05.09 04.11.09 22.09.09
Risk free rate (%) 7.14 7.49 6.66 7.08 7.14
Expected life (years) 6.45 6.45 6.45 5.50 6.45
Volatility (%) 40.95 39.87 41.83 38.79 40.95
Dividend yield (%) 1.29 1.29 1.29 1.29 1.29
Stock price (NSE closing rate) Rs. 1070.10 1422.65 836.15 1258.75 1070.10
Option Fair Value Rs. 497.76 673.26 389.31 794.41 497.76
64
Corporate Governance Report
1 Company's Philosophy on Corporate Governance:

Corporate Governance is a continuous journey for sustained value creation and it is an upward moving target. In
its pursuit of growth, excellence and commitment to values, corporate governance forms an integral part of the
Company's philosophy. The Company believes that good governance goes beyond working results and
financial propriety and is a pre-requisite for attaining and further gaining excellence in performance. While
carving a niche in the global corporate world, the Company stays committed to good corporate governance by
aligning its actions and leveraging all its resources to optimize shareholder value on a long-term basis. In its
mission to be an exemplary corporate citizen, your Company aims at creating an ethical culture by instilling and
ensuring commitments of the highest order. While the management team comprises competent professionals,
the Company is being vastly benefitted by the invaluable inputs provided by its non-executive directors. The
Company has implemented all mandatory and a few non-mandatory requirements of Clause 49 of the Listing
Agreement. Non-mandatory requirements viz. formation of Remuneration / Compensation Committee and
formulation of a Whistle Blower Policy have been implemented. Codes of conduct have been adopted by
directors and senior management personnel and they are posted on the website of the Company
(www.lupinworld.com). All board members and senior management personnel have affirmed compliance with
the respective codes for the year ended March 31, 2010.
The Company has formulated a Whistle Blower Policy for its employees as also its subsidiaries. In terms of this
Policy, employees are free to raise their concerns regarding unethical behaviour, fraudulent business
conduct or violation of the Company's Code of Conduct and Workplace Ethics Policy. Employees, who raise
concerns in accordance with the provisions of the Whistle Blower Policy, are provided with adequate
safeguards against victimization and unfair treatment. A committee called the 'Office of the Ombudsperson'
comprising two senior executives of the Company with global responsibilities and an Executive Director has
been constituted to review and take necessary action on the complaints received. The applicability and
mechanism of the said Policy has been communicated to all employees and has also been posted on the
Company's intranet.
Sound systems of internal checks and balances are in place across the Company and they are regularly
evaluated and updated. The Company has a comprehensive risk management policy wherein key risks are
identified after organizing interactive sessions, workshops and conducting interviews at various levels
across different locations. Key risk elements are discussed at top management meetings wherein, risks are
rated and assessed in terms of their implications, probability of occurence and its consequences on the
Company's business. The system evaluates significant risk exposure, accesses actions by management in
mitigating the risk and compliance with all applicable laws in conformity with business processes.
A detailed Management Discussion and Analysis report forms part of this Annual Report.
2 Board of Directors:
The strength of the Board as on March 31, 2010 was twelve, of which, three are executive promoter -
directors, one is a non-executive promoter director, one is an executive director and seven are
independent directors. The requisite particulars are given below: -
Sl. Name of the director Whether No. of Board Attendance Number of Member/
No. Promoter/ Meetings during at the last directorships chairman of
Executive/ the year AGM of other committees other
Independent Held Attended companies than the Company
1. Dr. Desh Bandhu Gupta, Chairman P. & E.D. 5 5 Yes 7 -
2. Dr. Kamal K. Sharma, Managing Director E.D. 5 5 Yes 7 -
3. Mrs. M. D. Gupta, Executive Director P. & E.D. 5 5 Yes 7 -
4. Mr. Nilesh Gupta, Executive Director P. & E.D. 5 5 Yes 7 -
5. Mr. D. K. Contractor I. N-E.D. 5 5 Yes 7 2/-
6. Mr. Marc Desaedeleer (up to 29.01.2010) I. N-E.D. 4 - No 7 -
7. Ms. Vinita Gupta P. & N-E.D. 5 2 Yes 2 -
8. Mr. K. V. Kamath (w.e.f. 29.01.2010) I. N-E.D. 1 1 N.A. 3 1/1
9. Dr. Vijay Kelkar (w.e.f. 29.01.2010) I. N-E.D. 1 1 N.A. 6 1/-
10. Dr. K. U. Mada I. N-E.D. 5 5 Yes 3 5/2
11. Mr. Sunil Nair (up to 05.05.2010) I. N-E.D. 5 - No 1 -
12. Mr. R. A. Shah I. N-E.D. 5 5 Yes 22 10/5
13. Mr. Richard Zahn (w.e.f. 29.01.2010) I. N-E.D. 1 1 N.A. 1 -
Notes:
a) P. & E.D.: Promoter & Executive Director; E.D.: Executive Director; I. N-E.D.: Independent Non-Executive Director;
P. & N-E.D.: Promoter & Non-Executive Director.
b) In the case of Mr. R. A. Shah, directorships include a foreign company, private limited company and six Alternate
directorships of public limited companies.
c) Mrs. M. D. Gupta is the wife of Dr. Desh Bandhu Gupta, Ms. Vinita Gupta their daughter and Mr. Nilesh Gupta their son.

Board Meetings
The Board of Directors plays a key role in ensuring good corporate governance. The Board approves and
reviews business strategies and directs management activities. It oversees performance so as to ensure
adherence to the best practices of corporate governance. Board members express their opinions and
bring up matters for discussion at Board meetings. Board meeting dates are finalised in consultation with
all directors. Agenda papers are accompanied by comprehensive notes providing detailed information so
as to enable the Board to discharge its responsibilities effectively and take informed decisions. Minutes of
the meeting of the Board are circulated in advance to all Directors and confirmed at the subsequent Board
meeting. Copies of signed minutes of the various Committees of the Board as also Board meetings of
subsidiary companies are tabled at Board meetings.
Details of Board Meetings
Board meetings are held at least once in every quarter and the time gap between two meetings is not more
than four months. During the year, five Board Meetings were held on May 13, 2009, July 29, 2009,
September 22, 2009, October 26, 2009 and January 29, 2010.
Remuneration to Executive Directors
Remuneration during 2009-10 (Rs. million)
Particulars of Remuneration Dr. Desh Bandhu Gupta, Dr. Kamal K. Sharma, Mrs. M. D. Gupta, Mr. Nilesh Gupta,
Chairman Managing Director Executive Director Executive Director
Fixed Component:
Salary 15.36 34.72 1.92 19.73
Benefits/Allowances 3.11 0.51 0.33 0.40
Provident Fund/Superannuation 2.59 4.32 0.32 3.44
Variable Component:
Performance-Linked Incentive - 19.67 - 9.18
Commission [Note (b)] 70.00 - - -
Stock Options - 4.75 - -
Total: 91.06 63.97 2.57 32.75
Remuneration to Non - Executive Directors

Sl. Name of the director No. of equity Remuneration paid in 2009-10 (Rs. million)
No. shares held Sitting fees Commission Total
[Note (c)]
1. Mr. D. K. Contractor 2660 0.27 0.50 0.77
2. Mr. Marc Desaedeleer (up to 29.01.2010) Nil - - -
3. Ms. Vinita Gupta 10320 0.04 - 0.04
4. Mr. K. V. Kamath (w.e.f. 29.01.2010) Nil 0.02 - 0.02
5. Dr. Vijay Kelkar (w.e.f. 29.01.2010) Nil 0.02 - 0.02
6. Dr. K. U. Mada 600 0.30 1.00 1.30
7. Mr. Sunil Nair Nil - - -
8. Mr. R. A. Shah 3000 0.14 1.00 1.14
9. Mr. Richard Zahn (w.e.f. 29.01.2010) Nil 0.02 - 0.02
Notes:
a) Dr. Desh Bandhu Gupta, Chairman, Dr. Kamal K. Sharma, Managing Director, Mrs. M. D. Gupta, Executive Director and Mr. Nilesh Gupta, Executive
Director, are in whole-time employment of the Company and their employment is contractual in nature. While Dr. Gupta and Mrs. Gupta hold office
up to December 31, 2010, Dr. Sharma holds office up to September 28, 2012 and Mr. Nilesh Gupta holds office up to October 7, 2013.
b) Dr. Desh Bandhu Gupta is entitled to a commission @ 1% of the net profit, calculated in accordance with the provisions of Sections 349 and 350 of
the Companies Act, 1956, provided the net profit is not less than Rs.500 million in the relevant accounting year. Accordingly, the commission
payable to Dr. Gupta for the year 2009-10 works out to Rs.70 million which has been provided. The same would be paid after approval of the
accounts at the ensuing Annual General Meeting.
c) At the 23rd Annual General Meeting held on July 28, 2005, members had approved payment of commission to non-executive directors, not
exceeding in the aggregate 0.25% p.a. of the Company's net profit, provided that the aggregate of commission payable to all of them together shall
not exceed Rs. five million per year. The Board is authorised to decide upon the eligibility criteria and the quantum of commission payable to each
non-executive director. Commission to non-executive directors as mentioned above, is for the year 2008-09 which was paid in 2009-10. An amount
of Rs. five million has been provided towards commission payable to non-executive directors for the year 2009-10.
d) On November 4, 2009, 10,000 options were granted to Dr. Kamal K. Sharma at an exercise price of Rs.614.08 (being 50% of the market price) under
the "Lupin Employees Stock Option Plan 2005". The vesting period of the options is 12 months and the same are exercisable within ten years from
the date of the grant.
e) During the year, Crawford Bayley & Co., Solicitors & Advocates, of which Mr. R. A. Shah, non-executive director, is a senior partner, was paid professional
fees aggregating Rs.0.45 million, which constitute less than one percent of the total revenues of the said firm and an insignificant fraction of the
Company's turnover. The Board of Directors is of the view and has also taken a legal opinion on the subject, confirming that the said firm does not have a
material association with the Company and payment of the fees is not material enough to impinge on the independence of Mr. Shah.
66
Brief profiles, other directorships and committee memberships etc. of directors seeking re-appointment
/ appointment at the 28th Annual General Meeting: -
Dr. Kamal K. Sharma
Dr. Kamal K. Sharma is a chemical engineer from the Indian Institute of Technology (lIT), Kanpur with a
post-graduate diploma in industrial management from Jamnalal Bajaj Institute of Management Studies,
Mumbai and a Ph.D. in Economics from lIT, Mumbai. He has also completed an advanced management
programme from Harvard Business School, Boston. Dr. Sharma has vast industry experience spanning
more than three decades and has held a range of senior management positions in the fields of projects,
operations, corporate development and general management in pharma and chemical industries.
List of other directorships Chairman/member of the committees of the board
of the companies on which he is a director
Faisa Financial Pvt. Ltd., Director -
Templetree Properties Pvt. Ltd., Director
Lupin Pharmacare Ltd., Director
Kyowa Pharmaceutical Industry Co., Ltd., Japan, Director
Generic Health Pty. Ltd., Australia, Director
Pharma Dynamics (Proprietary) Ltd., South Africa, Director
Amel Touhoku, Japan, Director
Mr. D. K. Contractor
Mr. D. K. Contractor is a commerce graduate from Mumbai University and a certified Associate and Fellow
of the Indian Institute of Bankers. He held several senior positions in the Central Bank of India and retired as
its Executive Director. Mr. Contractor has vast experience of over 40 years in the areas of banking, finance
and administration.

Jai Corp Ltd., Director Jai Corp Ltd., Member of Audit Committee
Mazda Ltd., Director IL&FS Trust Company Ltd., Member of Audit Committee
Tufropes Pvt. Ltd., Director
The Victoria Mills Ltd., Director
Zoroastrian Co-operative Bank Ltd., Director
Advisory & Analytics India Pvt. Ltd., Director
IL&FS Trust Company Ltd., Director
Mr. K.V. Kamath

Mr. K. Vaman Kamath is the non-executive Chairman of the Board of Directors of ICICI Bank Limited, India's
second largest bank. Mr. Kamath has a degree in mechanical engineering and did his management studies
at the Indian Institute of Management, Ahmedabad. He started his career in 1971 at ICICI, an Indian
financial institution that founded ICICI Bank and merged with it in 2002. In 1988, he moved to the Asian
Development Bank and spent several years in South-East Asia before returning to ICICI as its Managing
Director & CEO in 1996. Under his leadership, the ICICI Group transformed itself into a diversified,
technology-driven financial services group that has leadership positions across banking, insurance and
asset management in India, and an international presence. He retired as Managing Director & CEO in April
2009, and took up his present position. Mr. Kamath was conferred with the Padma Bhushan, one of India's
highest civilian honours, in 2008. He has received widespread recognition internationally and in India,
including being named "Businessman of the Year" by Forbes Asia and "Business Leader of the Year" by
The Economic Times, India in 2007 and CNBC's "Asian Business Leader of the Year" in 2001. Mr. Kamath was
the President of the Confederation of Indian Industry for the year 2008-09. He is also an independent
Director on the Board of Directors of Infosys Technologies Limited and Schlumberger Limited. He has
been a co-chair of the World Economic Forum's Annual Meeting in Davos and is a member of the Board of
the Institute of International Finance.

ICICI Bank Ltd., Chairman Institute for International Finance Inc. - Chairman of the
Infosys Technologies Ltd., Director Audit Committee.
Institute for International Finance Inc., Member-Board of Directors
Dr.Vijay Kelkar
Dr. Vijay Kelkar holds an M.S. from the University of Minnesota and Ph.D. from the University of
California. He held senior positions in the Government of India and was Chairman/Member of several
high-powered Committees, Councils, Task Forces, Working Groups, set up by different ministries and
Departments of the Government of India. He was Finance Secretary, Government of India, during
1998 -1999, Executive Director for India, Sri Lanka, Bangladesh and Bhutan on the IMF, Washington,
D.C., from 1999 to 2002 and Advisor to the Minister of Finance, Government of India, in the rank of a
Minister of State from 2002 to 2004.
Dr. Kelkar delivered lectures at the Universities of California, Pennsylvania, Vanderbilt, Harvard and
Cornell in the US and was visiting Professor at the South Asia Institute, Heidelberg University, West
Germany and the Center for Economic Development and Administration, Government of Nepal. He was
a senior faculty member of the Administrative Staff College of India, Hyderabad, and Instructor -
Microeconomics, University of California, and U.S.A. Dr. Kelkar has authored several books, publications
and journals on micro and macroeconomics, functioning of Indian public sector undertakings, trade
policies and reforms in India.
Dr. Kelkar was an Independent Director on the Board of the Company during the period October 19, 2005
to December 31, 2007. On his appointment as Chairman of the 13th Finance Commission, Dr. Kelkar
relinquished his directorship w.e.f. December 31, 2007.

Tata Consultancy Services Ltd., Director J. M. Financial Ltd., Member of Audit Committee
JSW Steel Ltd., Director
National Stock Exchange of India Ltd., Chairman
Roche Scientific Company India Pvt. Ltd., Director
Green Infra Ltd., Chairman
J. M. Financial Ltd., Director
Mr. Richard Zahn

Mr. Richard is a B. S. (Business Administration) with Honors, Kansas State Teachers College, Kansas. He had
completed Executive Education with Amos Tuck School, Dartmouth University, Harvard/MIT Program on
Negotiation, The Wharton School, University of Pennsylvania and National Association of Corporate
Directors - Certificate of Director Education.
Mr. Richard is the Managing Partner of HMJ Global Partners, a corporate governance and not-for-profit
public policy advisory group. With more than 30 years of experience in the biotechnology and
pharmaceutical industries, he is an established leader and strategist in healthcare research and
development, marketing management, managed care, and human resources. He is widely recognized as
an insightful speaker on economic and policy issues.
Mr. Richard was President of Schering Laboratories, U.S., Director, Schering Corporation and Corporate
Vice President of Schering-Plough Corporation, a global research-based company engaged in the
discovery, development, manufacturing and marketing of pharmaceutical, biotechnology and healthcare
prescription pharmaceutical marketing arm for Schering-Plough. Mr. Richard spent 20 years at Johnson &
Johnson. Mr. Richard has focused his efforts on world economic development and public policy. He has
received several awards for his devoted work towards various organizations and charities with particular
focus on health care and minority issues.
68
3 Audit Committee:
The Audit Committee comprises Dr. K. U. Mada (Chairman) and Mr. D. K. Contractor, independent
directors, and Dr. Kamal K. Sharma, Managing Director. Dr. K. U. Mada is an eminent economist and
development banker. Mr. D. K. Contractor retired as Executive Director, Central Bank of India. All the
members of the Audit Committee are financially literate. Mr. R. V. Satam, Company Secretary &
Compliance Officer, acts as the Secretary of the Committee. The head of finance, representatives of
accounts, statutory auditors, internal auditors and cost auditors attend meetings of the Audit Committee.
The Audit Committee addresses matters pertaining to adequacy of internal controls, reliability of financial
statements, adequacy of provisions for liabilities and appropriateness of audit tests and checks. Emphasis
is on proper disclosures and compliance with all relevant statues.
The Chairman of the Committee attended the last Annual General Meeting of the Company held on
July 29, 2009.
The Committee performs the functions spelt out in Clause 49 of the Listing Agreement and Section 292A
of the Companies Act, 1956. The matters deliberated upon by the Committee include: -
a) Overseeing and reviewing the financial reporting process and dissemination of financial information.
b) Recommending to the Board, the appointment/re-appointment of statutory auditors and fixation of
audit fees as also approving payments for any other services.
c) Reviewing with the management the quarterly and annual financial statements before submission to
the Board for approval with particular reference to: -
i) matters required to be included in the Directors' Responsibility Statement in terms of Clause
(2AA) of Section 217 of the Companies Act, 1956;
ii) changes, if any, in accounting policies and practices and reasons for the same;
iii) major accounting entries involving estimates based on the exercise of judgment by management;
iv) significant adjustments made in the financial statements arising out of audit findings;
v) compliance with listing and other legal requirements relating to financial statements;
vi) disclosure of related party transactions; and
vii) qualifications in the draft audit report, if any.
d) Reviewing the financial statements of subsidiary companies as also the consolidated financial
statements including investments made by the subsidiary companies.
e) Reviewing with the management, the performance of statutory and internal auditors and adequacy
of the internal control systems.
f) Reviewing the adequacy of the internal audit function, including the structure of the internal audit
department, its staffing, reporting structure and frequency of audits.
g) Discussing with internal auditors, significant findings and follow-up thereon and reviewing findings
of internal auditors and reporting them to the Board.
h) Discussion with statutory auditors before the audit commences about the nature and scope of audit
as also post-audit discussion to ascertain areas of concern.
i) Look into the reasons for any defaults in the payment to depositors, debenture holders, members (in
case of non-payment of declared dividends) and creditors.
j) Review the functioning of the Whistle Blower mechanism.
k) Review and discuss with the management the status and implications of major legal cases and matters.
l) Carrying out such functions as may be mentioned in the terms of reference of the Audit Committee.
In addition, the Committee reviews the management discussion and analysis report and management letters.

Details of Audit Committee Meetings
During the year, six meetings of the Audit Committee were held on May 13, 2009, July 29, 2009, September
22, 2009, October 26, 2009, January 29, 2010 and March 23, 2010 and the attendance was as follows: -
Sl. No. Name of the director No. of Meetings
Held Attended
a) Dr. K. U. Mada, Chairman 6 6
b) Mr. D. K. Contractor 6 6
c) Dr. Kamal K. Sharma 6 1
4 Investors' Grievances Committee:

The Investors' Grievances Committee comprises Mr. D. K. Contractor (Chairman) and Dr. K. U. Mada,
independent directors. Mr. R. V. Satam, Company Secretary & Compliance Officer, acts as the Secretary of
the Committee. Meetings of the Investors' Grievances Committee are attended by the finance head and
head of Investors' Services Department.
The Committee evaluates multifaceted activities viz. dematerialization and transfer of shares,
disbursement of dividend, depository operations, management of employees stock option plans, transfer
of unclaimed amounts to Investor Education & Protection Fund and regulatory compliances etc. to ensure
that the highest standards of service levels are maintained.
It encourages team members to provide prompt and qualitative services and expeditious redressal of
investors' grievances.
The Company received and resolved 45 complaints from shareholders during the year. As on March 31,
2010, no complaints remained pending/un-attended. During the year, no share transfers/ complaints
remained pending for over 30 days.
Details of the Investors' Grievances Committee Meetings
During the year, two meetings of the Investors' Grievances Committee were held on September 22, 2009
and March 23, 2010 and the attendance was as under:-
Held Attended
a) Mr. D. K. Contractor, Chairman 2 2
b) Dr. K. U. Mada 2 2
5 Remuneration/Compensation Committee:
The Remuneration/Compensation Committee comprises Dr. K. U. Mada (Chairman) and Mr. R. A. Shah,
independent directors. The Committee inter alia performs functions spelt out in Clause 49 of the Listing
Agreement and Schedule XIII of the Companies Act, 1956. The Committee reviews and recommends to
the Board, the remuneration payable to executive directors. The Company follows a market-linked
remuneration policy. The Committee determines and recommends remuneration after evaluating
criteria viz. position, experience, expertise, leadership qualities, responsibilities shouldered by the
individual as also the volume of Company's business and profits earned by it. To attract, reward and
retain talented and qualified personnel as also to create a sense of belonging among them, the
Company had formulated employees stock option plans. The Committee approves grant of stock
options to employees of the Company and its subsidiaries and performs such functions as may be
required under various stock option plans.
Details of the Remuneration/Compensation Committee Meetings
During the year, four meetings of the Remuneration/Compensation Committee were held on September
22, 2009, October 26, 2009, December 17, 2009 and January 29, 2010 and the attendance was as under: -
Held Attended
a) Dr. K. U. Mada, Chairman 4 4
b) Mr. R. A. Shah 4 4
The Committee passed by circulation two resolutions dated May 29, 2009 and November 4, 2009.
70
6 General Body Meetings:
Details of the last three Annual General Meetings: -
Year Day, Date and Time Location No. of Special Resolutions passed
2006 - 07 Thursday, July 19, 2007 Birla Matushri Sabhagar -
at 2.30 p.m. (Bombay Hospital Trust),
19, Marine Lines,
Mumbai - 400 020
2007 - 08 Tuesday, July 22, 2008 Rang Sharda Natyamandir, -
at 2.30 p.m. Bandra Reclamation,
Bandra (West),
Mumbai - 400 050
2008 - 09 Wednesday, July 29 2009 Rang Sharda Natyamandir, One
at 2.30 p.m. Bandra Reclamation,
Bandra (West),
Mumbai - 400 050
No business was required to be transacted through postal ballot at the above meetings. Similarly, no
business is required to be transacted through postal ballot at the forthcoming Annual General Meeting.
7 Disclosure on materially significant related party transactions:
During the year under review, there have been no materially significant related party transactions,
monetary dealings or relationships between the Company and its promoters, directors, management
or their relatives, subsidiaries etc. which may have potential conflict with the interests of the Company
at large. Statements of transactions in summary form with related parties in the ordinary course
of business were placed at meetings of the Audit Committee. The Audit Committee reviewed statements
of related party transactions submitted by the management. The Register of Contracts contains
details of transactions in which Directors are interested and the same is placed before meetings of the
Board. During the year under review, Crawford Bayley & Co., Solicitors & Advocates of which Mr. R. A. Shah,
non-executive director, is a senior partner was paid Rs.0.45 million towards professional fees. Apart
from payment of sitting fees, commission and professional fees (if any), there is no pecuniary transaction
with the non-executive directors. In compliance with Accounting Standard AS 18, details of related
party transactions are disclosed in the notes to accounts. The Company has complied with the
requirements of Stock Exchanges, SEBI and other statutory authorities on all matters relating to capital
markets during the last three years and they have not imposed any penalties on, or passed any strictures
against the Company.
8 Means of communication:
Quarterly and annual financial results of the Company are communicated to the stock exchanges
immediately after the Board approves them and thereafter, they are published in prominent English (The
Economic Times, all editions) and Marathi (Maharashtra Times, Mumbai edition) newspapers. The results
are also posted on the Company's website viz. www.lupinworld.com and on the Electronic Data
Information Filing and Retrieval (EDIFAR) website maintained by the National Informatics Centre, as
required by SEBI. The website also displays official news releases and presentations made to institutional
investors and analysts. Disclosures pursuant to various clauses of the Listing Agreement are promptly
communicated to the stock exchanges.
9 General Members' information:
X INVESTORS' SERVICES DEPARTMENT - AT THE SERVICE OF THE ESTEEMED INVESTORS
Expeditious redressal of investor queries and highest standards of regulatory compliances are the
thrust areas of the Investors' Services Department (ISD). Accent and focus of ISD is towards innovative
and proactive services. The Department is committed through its proficient and experienced team to
render services commensurate to the expectations and needs of the esteemed shareholders. It has,
over the years, fine-tuned its service delivery mechanism to attain its objectives.

The department deals with the various matters relating to:
< Transfer and transmission of shares
< Dematerialisation of shares
< Regulatory compliances
< Redressal of investor grievances
< Issuance of duplicate share certificates
< Execution of corporate actions and other depository operations
< Compliances pursuant to SEBI (Prohibition of Insider Trading) Regulations
< Disbursement of dividend and reminders to claim the unpaid dividends
< Allotment of shares under ESOPs and upon conversion of FCCBs
< Liaisoning with stock exchanges, regulatory bodies, including the Reserve Bank of India
< Listing of shares with stock exchanges
< ESOP management - including liaisoning with local and overseas employees
< Continual updation of share-related data on the Company's official website
< Transfer of unclaimed amount to Investor Education and Protection Fund (IEPF)
< Management of postal ballots etc.
The ISD is dedicated to its investors and can be approached for any query or assistance through letter,
telephone, fax, email or in-person at the Registered Office of the Company, located at:
< 159, C.S.T. Road, Kalina, Santacruz (East), Mumbai - 400 098, India.
Tel: +91 22 6640 2323 (Ext: 2402/3)
Fax: +91 22 2652 8806
Exclusive email id for investor grievances
Pursuant to Clause 47 (f) of the Listing Agreement, the following email id has been exclusively
designated for communicating investor grievances:
Email: investorservices@lupinpharma.com
For the convenience of investors, a link has also been established to the Department through the
Company's website, www.lupinworld.com/contact.htm#investor
< Person in-charge of the Department: Mr. Pradeep Bhagwat, General Manager - Investors' Services.
X ANNUAL GENERAL MEETING

The 28th Annual General Meeting will be held at 2.30 p.m. on Wednesday, July 28, 2010, at Rang Sharda
Natyamandir, Bandra Reclamation, Bandra (West), Mumbai - 400 050.
X FINANCIAL CALENDAR
First quarter results : July 2010
Second quarter results : October 2010
Third quarter results : January 2011
Annual results : April/May 2011
Annual General Meeting : July/August 2011
X BOOK CLOSURE
The Register of Members and the Share Transfer Register will remain closed from Wednesday, July 21,
2010 to Wednesday, July 28, 2010, both days inclusive.
Dividend for the year ended March 31, 2010, if declared, at the Annual General Meeting, shall be paid to:
a) beneficial owners at the end of business day on Tuesday, July 20, 2010 as per lists furnished by NSDL
and CDSL in respect of shares held in electronic form; and
b) persons whose names appear on the Register of Members as at the end of the business day on
Tuesday, July 20, 2010 in respect of shares held in physical form.
72
X DIVIDEND PAYMENT DATE
Dividend, if declared, shall be paid within three days from the date of the Annual General Meeting.
Dividend shall be remitted through National Electronic Clearing Service (NECS), wherever bank details
including MICR no. are available with the Company, and in other cases, through warrants payable at par.
X SHARES LISTED AT
The equity shares of the Company are listed on:
Bombay Stock Exchange Limited (BSE)
Phiroze Jeejeebhoy Towers,
Dalal Street, Mumbai Samachar Marg,
Mumbai - 400 001.
National Stock Exchange of India Limited (NSE)
Exchange Plaza,
Bandra Kurla Complex, Bandra (East),
Mumbai - 400 051.
Annual Listing fees for the year 2010-11 have been paid to stock exchanges. The Company has also
paid the Annual Custodial fees to both the depositories.
X STOCK CODES
The stock codes of the Company are:
BSE 500257
NSE LUPIN
X INTERNATIONAL SECURITIES IDENTIFICATION NUMBER (ISIN)

ISIN is a unique identification number allotted to dematerialised scrip. The ISIN has to be quoted in
each transaction relating to dematerialized shares of the Company. The ISIN of the equity shares of the
Company is INE 326A 01029.
X CORPORATE IDENTITY NUMBER (CIN)

CIN of the Company, allotted by the Ministry of Corporate Affairs, Government of India:
L24100MH1983PLC029442
X MARKET PRICE DATA

Equity shares of the Company are traded in A group and are also available for trading in Futures &
Options (F & O) segment of the NSE.
The market-price data covering the period April 2009 to March 2010 is given below:
BSE NSE
(Rs.) (Rs.) (Rs.) (Rs.)
MONTH HIGH DATE LOW DATE HIGH DATE LOW DATE
APR-2009 748.00 28.04.09 630.00 08.04.09 748.00 28.04.09 621.05 08.04.09
MAY-2009 905.00 20.05.09 703.60 13.05.09 906.00 20.05.09 715.00 04.05.09
JUN-2009 901.00 25.06.09 803.00 01.06.09 905.00 25.06.09 792.15 02.06.09
JUL-2009 991.90 24.07.09 754.90 08.07.09 989.95 24.07.09 767.90 09.07.09
AUG-2009 1055.20 26.08.09 918.30 04.08.09 1059.00 26.08.09 903.05 31.08.09
SEP-2009 1190.00 25.09.09 950.00 03.09.09 1188.40 29.09.09 935.40 09.09.09
OCT-2009 1314.00 14.10.09 1125.00 05.10.09 1309.95 12.10.09 1129.00 01.10.09
NOV-2009 1400.25 27.11.09 1216.10 03.11.09 1402.20 27.11.09 1196.00 04.11.09
DEC-2009 1564.00 31.12.09 1353.00 01.12.09 1554.70 18.12.09 1371.00 02.12.09
JAN-2010 1494.00 04.01.10 1310.00 22.01.10 1494.80 04.01.10 1310.10 22.01.10
FEB-2010 1624.00 02.02.10 1419.00 01.02.10 1609.90 15.02.10 1425.00 01.02.10
MAR-2010 1673.70 23.03.10 1495.00 02.03.10 1710.00 15.03.10 1496.10 03.03.10

X TRADING VOLUMES
The number of shares traded at BSE and NSE were:
Month BSE NSE Total
APR - 2009 702327 2028990 2731317
MAY- 2009 2274188 3825857 6100045
JUN - 2009 386590 2680036 3066626
JUL - 2009 831405 3661627 4493032
AUG - 2009 1735737 3638195 5373932
SEP - 2009 782758 3239285 4022043
OCT - 2009 946888 6373561 7320449
NOV - 2009 832755 3618417 4451172
DEC - 2009 857185 5207120 6064305
JAN - 2010 671368 4078308 4749676
FEB - 2010 931438 3805543 4736981
MAR - 2010 503060 3259606 3762666
TOTAL: 11455699 45416545 56872244
X PERFORMANCE IN COMPARISON WITH BROAD BASED INDICES

Lupin share price compared with BSE Sensex and NSE S&P CNX Nifty (Month-end closing)
BSE NSE
Month Lupin share price Sensex Lupin share price S&P CNX Nifty
(Rs.) (Rs.)
APR - 2009 717.05 11403.25 718.55 3473.95
MAY - 2009 833.85 14625.25 836.15 4448.95
JUN - 2009 817.10 14493.84 816.20 4291.10
JUL - 2009 945.90 15670.31 950.40 4636.45
AUG - 2009 1015.15 15666.64 1015.15 4662.10
SEP - 2009 1136.85 17126.84 1135.00 5083.95
OCT - 2009 1226.25 15896.28 1229.95 4711.70
NOV - 2009 1374.45 16926.22 1375.30 5032.70
DEC - 2009 1490.30 17464.81 1474.10 5201.05
JAN - 2010 1420.45 16357.96 1422.65 4882.05
FEB - 2010 1497.65 16429.55 1500.70 4922.30
MAR - 2010 1624.55 17527.77 1627.35 5249.10
X EVOLUTION OF CAPITAL
Equity shares in the Company of face value of Rs.10/- each have been issued as under:
Year of issue Allotment of shares No. of shares Cumulative total

2001 - 02 upon amalgamation * 40141134 40141134
2006 - 07 under ESOP (Pre - Bonus) 11360 40152494
as bonus (in the ratio of 1:1) 40152494 80304988
under ESOP (Post - Bonus) 39576 80344564
2007 - 08 upon conversion of FCCB 1656100 82000664
under ESOP 80231 82080895
2008 - 09 upon conversion of FCCB 571069 82651964
under ESOP 167586 82819550
2009 - 10 under ESOP 307541 83127091
upon conversion of FCCB 5816742 88943833
* Amalgamation of Lupin Laboratories Limited with Lupin Chemicals Limited whose name was changed to Lupin Limited.
74
X SHARE TRANSFER SYSTEM
The equity shares of the Company are being traded compulsorily in demat form and they are
transferable only through depository system. The activities related to transfer of shares in physical
form are carried out by the Investors' Services Department of the Company and placed before the
Share Transfer Committee for its approval.
The Board has constituted a Share Transfer Committee comprising Dr. Desh Bandhu Gupta, or in his
absence, Dr. Kamal K. Sharma as Chairman of the Committee. Mrs. M. D. Gupta and Mr. D. K.
Contractor are the members. The Committee met 23 times during the year and approved transfer of
13290 equity shares.
In terms of Clause 47 (c) of the Listing Agreement, every six months, a qualified Practising Company
Secretary undertakes audit of the share transfer related activities carried out by the Investors' Services
Department and issues a compliance certificate, which is submitted to the stock exchanges.
X ALLOTMENT COMMITTEE
The Board has delegated powers to the Allotment Committee of Directors to allot the shares of the
Company. Dr. Desh Bandhu Gupta, or in his absence, Dr. Kamal K. Sharma is Chairman of the
Committee. Mrs. M. D. Gupta is a member.
During the year 17 meetings of the Allotment Committee were held. The Committee approved
allotment of 307541 shares to the employees, upon exercising the options granted under Lupin
Employees Stock Option Plans and 5816742 shares upon conversion of Foreign Currency
Convertible Bonds.
Executives of the Company are authorised by the Allotment Committee to comply with post-
allotment formalities, including execution of corporate actions to credit the shares into demat
account of the allottees through depositories and listing them with the stock exchanges.
X SHAREHOLDING PROFILE AS ON MARCH 31, 2010

i. Distribution of Shareholding
Shareholding range Shareholders Shareholding

(No. of shares) Numbers % Numbers %
1 - 500 44447 96.56 2785317 3.13
501 - 1000 571 1.24 437633 0.49
1001 - 2000 301 0.65 436453 0.49
2001 - 3000 126 0.27 311690 0.35
3001 - 4000 82 0.18 295475 0.34
4001 - 5000 57 0.12 264356 0.30
5001 - 10000 114 0.25 850880 0.96
10001 and above 332 0.72 83562029 93.95
Total: 46030 100.00 88943833 100.00
ii. Shareholding Pattern
Category No. of shares %

Promoters 41931508 47.14
Mutual Funds 11626948 13.07
Insurance Cos./ Banks/ Financial Institutions 9285682 10.44
Foreign Institutional Investors (FIIs) 15401679 17.32
Foreign Bodies / Banks 569355 0.64
Non Residents 132904 0.15
Public 9995757 11.24
Total: 88943833 100.00

iii. Shareholding Profile
Mode Demat Physical Total
(nos.) % (nos.) % (nos.)
Shareholding 88139102 99.10 804731 0.90 88943833
Shareholders 32935 71.55 13095 28.45 46030
iv. Geographical presence of shareholders as on March 31, 2010
State Shareholders
Nos. %
Andhra Pradesh 1851 4.02
Bihar 649 1.41
Chhattisgarh 120 0.26
Delhi 2807 6.10
Gujarat 5289 11.49
Haryana 680 1.48
Jharkhand 208 0.45
Karnataka 2393 5.20
Kerala 553 1.20
Madhya Pradesh 1235 2.68
Maharashtra 19159 41.62
North Eastern States 322 0.71
Orissa 235 0.51
Punjab 816 1.77
Rajasthan 1629 3.54
Tamilnadu 2027 4.40
Uttarakhand 439 0.95
Uttar Pradesh 2559 5.56
West Bengal 2549 5.54
Others 510 1.11
Total: 46030 100.00
X DIVIDEND PROFILE
Financial year Book closure/Record date Dividend Date of Date of payment
declared declaration
2008 - 09 22.07.09 - 29.07.09 125 % 29.07.2009 30.07.2009
2007 - 08 15.07.08 - 22.07.08 100 % 22.07.2008 23.07.2008
2006 - 07 12.07.07 - 19.07.07 50 % * 19.07.2007 20.07.2007
2005 - 06 11.07.06 - 12.07.06 65 % 25.07.2006 26.07.2006
2004 - 05 19.07.05 - 20.07.05 65 % 28.07.2005 29.07.2005
2003 - 04 15.07.04 - 16.07.04 65 % 29.07.2004 30.07.2004
2002 - 03 17.07.03 - 18.07.03 50 % 06.08.2003 07.08.2003
2001 - 02 (Final) 20.08.02 - 21.08.02 25 % 02.09.2002 03.09.2002
2001 - 02 (Interim) 07.02.02 25 % 17.01.2002 15.02.2002
2000 - 01 13.09.01 - 14.09.01 35 % 25.09.2001 26.09.2001
* On enhanced share capital consequent to Bonus Issue in the ratio of 1:1
X DEMATERIALISATION OF SHARES AND LIQUIDITY

The Company's scrip forms part of compulsory dematerialized segment for all the investors. To
facilitate easy access of the dematerialized system to the investors, your company has established
direct connectivity with both the depositories i.e. National Securities Depository Limited (NSDL)
76
and Central Depository Services (India) Limited (CDSL). As on March 31, 2010, 99.10% of the share
capital of the Company was held in dematerialised form.
With a view to expedite dematerialisation of Company's shares, requests received from depository
participants for dematerialisation are being regularly monitored. During the year, the Company has
electronically confirmed demat requests in respect of 109414 equity shares.
X CODE OF CONDUCT FOR PREVENTION OF INSIDER TRADING

In accordance with the provisions of the Securities and Exchange Board of India (Prohibition of Insider
Trading) Regulations, 1992, the Company has established system and instituted a comprehensive
Code of Conduct for prevention of insider trading in shares of the Company.
The Code restricts the Directors, Auditors and other specified employees of the Company to deal in the
shares of the Company on the basis of any unpublished price sensitive information available to them
by virtue of their position in the Company.
Your Company maintains the highest ethical standards by diligently complying with the SEBI
guidelines in respect of insiders' stock trading; which is subjected to certain restrictions, such as 'not
dealing in shares during trading window closures', 'seeking pre-clearance of trade' etc., as envisaged in
the Code. Besides, the Company obtains periodic disclosure reports from the persons concerned.
The Code has been disseminated through the Company's intranet which is easy to access and also
increases awareness.
X SECRETARIAL AUDIT FOR RECONCILIATION OF CAPITAL

As stipulated by Securities and Exchange Board of India (SEBI), a qualified practicing Company
Secretary carries out Secretarial Audit to reconcile the total admitted capital with National Securities
Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) and the total issued
and listed capital. This audit is carried out every quarter.
The Secretarial Audit, inter alia, confirms that the total listed and paid-up capital is in agreement with
the aggregate of the total no. of shares in dematerialized form and in physical form. Details of changes
in share capital of the Company during the quarter are also covered in the audit report. The audit
report is submitted to the stock exchanges and is also placed before the meetings of the Board of
Directors and the Investors' Grievances Committee.
X EMPLOYEES STOCK OPTION PLANS (ESOPs)

During the year, the Company granted 151000 options under 'Lupin Employees Stock Option Plan 2003',
38000 options under 'Lupin Employees Stock Option Plan 2005' and 75350 options under 'Lupin
Subsidiary Companies Employees Stock Option Plan 2005 ' to employees in five separate grants.
Plans were implemented according to the provisions of SEBI (Employee Stock Option Scheme and
Employee Stock Purchase Scheme) Guidelines, 1999, with an exercise period of 10 years from the date of
each grant. Each option is convertible into one fully paid-up equity share of the face value of Rs.10/- each.
In accordance with the terms of the respective stock option plan and other applicable provisions, the
Company allotted 307541 shares during the year to those employees who exercised options vested in
them; the relevant details are given below:

Sl. No. Date of allotment No. of shares
1. April 28, 2009 8400
2. May 27, 2009 6120
3. June 19, 2009 18125
4. July 13, 2009 71445
5. August 10, 2009 15565
6. August 25, 2009 32798
7. September 08, 2009 8389
8. September 22, 2009 9080
9. October 08, 2009 10335
10. October 21, 2009 3050
11. November 05, 2009 2620
12. November 30, 2009 34210
13. December 18, 2009 18838
14. January 05, 2010 30460
15. January 22, 2010 15617
16. February 17, 2010 9364
17. March 22, 2010 13125
Total: 307541
The Company has obtained necessary approvals for grant of options and allotment of shares. The
allotted shares have been listed on BSE and NSE.
X CONVERSION OF FOREIGN CURRENCY CONVERTIBLE BONDS (FCCBs)

Your Company had issued FCCBs aggregating US $ 100 million in January 2006. In terms of the
Offering Memorandum, the FCCBs were convertible into equity shares at a conversion price of
Rs.567.04 per share.
The Company has issued total 8043911 equity shares upon conversion of FCCBs, as under:
Year No. of FCCBs Value of FCCBs No. of shares allotted
US $ in Mn. upon conversion
2007-08 203 20.30 1656100
2008-09 70 7.00 571069
2009-10 713 71.30 5816742
The following are particulars of shares allotted during the year 2009-10:
Sl. No. Date of allotment No. of shares

1. June 19, 2009 293691
2. July 13, 2009 465012
3. August 10, 2009 660809
4. August 25, 2009 293692
5. September 08, 2009 856604
6. September 22, 2009 611860
7. October 08, 2009 726073
8. October 21, 2009 1027924
9. November 05, 2009 677125
10. November 30, 2009 203952
Total: 5816742
The Company has complied with necessary formalities in this regard and listed the said shares on BSE
and NSE.
78
X STATUS OF UNCLAIMED DIVIDENDS
Year of dividend Date of Status of unclaimed Entitlement
dividend dividend
1993-94 {LCL} 08.12.1994 Transferred to General Amount can be claimed from The
1993-94 {LLL} (Interim) 09.08.1994 Revenue a/c of Registrar of Companies, Maharashtra,
1993-94 {LLL}(Final) 20.12.1994 Central Government. C.G.O. Bldg, 2nd Floor, C.B.D. Belapur,
Navi Mumbai - 400 614.
1994-95 (LLL) 01.02.1996 Transferred to Investor Amount cannot be claimed as
1995-96 (LLL) 01.02.1997 Education & Protection per the relevant provisions.
1996-97 (LLL) 02.02.1998 Fund (IEPF).
1997-98 (LLL) 05.01.1999
1997-98 (LCL) 19.01.1999
1998-99 (LLL) 03.01.2000
1998-99 (LCL) 04.01.2000
1999-2000 (LLL) 22.05.2000
1999-2000 (LCL) 08.11.2000
2000-01 26.09.2001
2001-02 (Interim) 15.02.2002
2001-02 (Final) 03.09.2002
With a view to safeguard interests of the shareholders, the Company initiates proactive and
innovative steps like sending personalised reminders to the shareholders of the Company to
claim their unpaid dividend, before it becomes necessary to transfer them to the Investor
Education & Protection Fund (IEPF).
Unclaimed dividends for the year 2002 - 03 onwards will be transferred to the IEPF, as required; the
details are given below:
Year Date of Declaration Due date for transfer to IEPF
2002 - 03 06.08.2003 11.09.2010
2003 - 04 29.07.2004 03.09.2011
2004 - 05 28.07.2005 02.09.2012
2005 - 06 25.07.2006 30.08.2013
2006 - 07 19.07.2007 24.08.2014
2007 - 08 22.07.2008 27.08.2015
2008 - 09 29.07.2009 03.09.2016
Shareholders are advised to confirm with their records and claim the amount well before the due date,
if not encashed earlier.
X OUTSTANDING GDRs/ADRs/WARRANTS/CONVERTIBLE INSTRUMENTS

In January 2006, the Company had issued Foreign Currency Convertible Bonds (FCCBs) aggregating
US $ 100 million. There are no Bonds outstanding as on March 31, 2010.
The Company had granted stock options to its employees and those in its subsidiaries under the
employee stock option plans. The Company shall be allotting equity shares from time to time, upon
the employees exercising the options vested in them pursuant to the provisions of SEBI (Employee
Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 and the terms and
conditions of the respective employee stock option plan.
There are no outstanding warrants. Further, the Company has not issued any GDR/ADR.

X PLANT LOCATIONS
The Company's plants are located at:
i) T-142, MIDC Industrial Estate, v) A 28/1, MIDC Area, ix) Novodigm Limited,
Tarapur Industrial Area, Chikalthana, Aurangabad, Block 21, Village Dabhasa,
Boisar, Dist. Thane, Maharashtra - 431 001. Taluka: Padra,
Maharashtra - 401 506. vi) B-15, Phase I-A, District: Vadodara
ii) 198-202, New Industrial Area II, Verna Industrial Area, Gujarat - 391 440.
Mandideep, Dist. Raisen, Verna Salcette, x) Lupin Pharmacare Limited,
Madhya Pradesh - 462 046. Goa - 403 722. Plot No.2, Phase - II,
iii) 211, New Industrial Area II, vii) Export Promotion Special Economic Zone,
Mandideep, Dist. Raisen, Industrial Park, Pithampur, Dist. Dhar,
Madhya Pradesh - 462 024. SIDCO Industrial Complex, Madhya Pradesh - 454 775.
iv) 124, GIDC Industrial Estate, Kartholi, Bari Brahmana, xi) Kyowa Pharmaceutical
Ankleshwar, Jammu - 181 133. Industry Co. Ltd.,
Gujarat - 393 002. viii) Gat No. 1156 11-1 Techno Park, Sanda,
Village Ghotawade, Hyogo 669 - 1339,
Taluka Mulshi, Dist. Pune, Japan.
Maharashtra - 411 042.
X R & D CENTRES
i) Lupin Research Park ii) Lupin Bioresearch Centre iii) Kyowa Pharmaceutical
Survey Nos. 46A/47A, S No 1462\2\1b, Sai Trinity Complex, Industry Co. Ltd.,
Nande Village, Wing A, Above Cosmos Bank, 6-7-2 Yurinokidai, Sanda,
Mulshi Taluka, Dist. Pune, Pashan Sus Road, Pashan, Pune, Hyogo 669 - 1324,
Maharashtra - 411 042. Maharashtra - 411 021. Japan.
X CONTACT PERSONS FOR ENQUIRIES

Financial matters : Mr. Sunil Makharia, email: sunilmakharia@lupinpharma.com
Secretarial matters : Mr. Rajvardhan V. Satam, email: rajvardhansatam@lupinpharma.com
Investors related matters : Mr. Pradeep Bhagwat, email: pradeepbhagwat@lupinpharma.com
X ADDRESS FOR CORRESPONDENCE

Members may address their queries/communications to:
Registered Office/Investors' Services Department:
159, C.S.T. Road, Kalina, Santacruz (East), Mumbai - 400 098, India.
Tel: +91 22 6640 2323 Ext: 2402/2403
Fax: +91 22 2652 8806.

Chairman
Mumbai, May 5, 2010
80
DECLARATION PURSUANT TO CLAUSE 49 I (D) (II) OF THE LISTING AGREEMENT
In accordance with Clause 49 I(D)(ii) of the Listing Agreement with the Stock Exchanges, I hereby declare that the
Directors and Senior Management of the Company have affirmed compliance with the Code of Conduct as
applicable to them for the year ended March 31, 2010.
For LUPIN LIMITED
DR. KAMAL K. SHARMA

MANAGING DIRECTOR
Mumbai, May 5, 2010

Auditors' Certificate on Corporate Governance
To,
The Members of Lupin Limited
We have examined the compliance of conditions of Corporate Governance by Lupin Limited, for the year ended on
March 31, 2010, as stipulated in Clause 49 of the Listing Agreement of the said Company with the stock exchanges.
The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination
was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of
the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial
statements of the Company.
In our opinion and to the best of our information and according to explanations given to us, we certify that the
Company has complied with the conditions of Corporate Governance as stipulated in the above-mentioned Listing
Agreement.
We state that no investor grievance is pending for a period exceeding one month against the Company, based on the
records maintained by Investors Services Department and as certified by the Compliance Officer of the Company.
We further state that such compliance is neither an assurance as to the future validity of the Company nor the
efficiency or effectiveness with which the management has conducted the affairs of the Company.
For Deloitte Haskins & Sells

Chartered Accountants
(Registration No. 1173664)
M. S. Dharmadhikari
Partner
Membership No. 30802
Place: Mumbai
Date: May 5, 2010
82
Auditors' Report
To The Members of Lupin Limited
1. We have audited the attached Balance Sheet of Lupin Limited ("the Company") as at 31st March, 2010, the
Profit and Loss Account and the Cash Flow Statement of the Company for the year ended on that date,
both annexed thereto. These financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those
Standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit includes examining, on a test basis,
evidence supporting the amounts and the disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the significant estimates made by the management, as well
as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (CARO) issued by the Central Government in
terms of Section 227 (4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3 above, we report as follows:
(a) we have obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purposes of our audit;
(b) in our opinion, proper books of account as required by law have been kept by the Company so far as it
appears from our examination of those books;
(c) the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this report
are in agreement with the books of account;
(d) in our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with
by this report are in compliance with the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956;
(e) in our opinion and to the best of our information and according to the explanations given to us, the
said accounts give the information required by the Companies Act, 1956 in the manner so required
and give a true and fair view in conformity with the accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2010;
(ii) in the case of the Profit and Loss Account, of the profit of the Company for the year ended on that
date and
(iii) in the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on
that date.
5. On the basis of the written representations received from the Directors as on 31st March, 2010 taken on
record by the Board of Directors, none of the Directors is disqualified as on 31st March, 2010 from being
appointed as a director in terms of Section 274(1)(g) of the Companies Act, 1956.

(Registration No 117366W)
M. S. Dharmadhikari
Place: Mumbai Partner
Dated: May 5, 2010 Membership No. 30802

Annexure to the Auditors' Report
(Referred to in paragraph 3 of our report of even date)
(i) Having regard to the nature of the Company's business/activities, clauses (iii), (x), (xii), (xiii), (xiv) and (xx) of
CARO are not applicable.
(ii) In respect of its fixed assets :
(a) The Company has maintained proper records showing full particulars, including quantitative details and
situation of the fixed assets.
(b) The fixed assets were physically verified during the year by the management in accordance with a regular
programme of verification which, in our opinion, provides for physical verification of all the fixed assets at
reasonable intervals. According to the information and explanation given to us, no material discrepancies
were noticed on such verification.
(c) The fixed assets disposed off during the year, in our opinion, do not constitute a substantial part of the
fixed assets of the Company and such disposal has, in our opinion, not affected the going concern status
of the Company.
(iii) In respect of its inventory:
(a) As explained to us, the inventories were physically verified during the year by the management at
reasonable intervals.
(b) In our opinion and according to the information and explanation given to us, the procedures of physical
verification of inventories followed by the management were reasonable and adequate in relation to the
size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations given to us, the Company has maintained
proper records of its inventories and no material discrepancies were noticed on physical verification.
(iv) In our opinion and according to the information and explanations given to us, having regard to the
explanations that some of the items purchased are of special nature and suitable alternative sources are not
readily available for obtaining comparable quotations, there is an adequate internal control system
commensurate with the size of the Company and the nature of its business with regard to purchases of
inventory and fixed assets and the sale of goods and services. During the course of our audit, we have not
observed any major weakness in such internal control system.
(v) In respect of contracts or arrangements entered in the Register maintained in pursuance of Section 301 of the
Companies Act, 1956, to the best of our knowledge and belief and according to the information and
explanations given to us:
(a) The particulars of contracts or arrangements referred to Section 301 that needed to be entered in the
Register maintained under the said Section have been so entered.
(b) Where each of such transaction is in excess of Rs 5 lakhs in respect of any party during the year, have been
made at prices which are reasonable having regard to the prevailing market prices at the relevant time,
where such prices are available.
(vi) According to the information and explanations given to us, the Company has not accepted any deposit from
the public during the year. In respect of unclaimed deposits, the Company has complied with the provisions of
Sections 58A & 58AA or any other relevant provisions of the Companies Act, 1956.
(vii) In our opinion, the internal audit functions carried out during the year by firm of Chartered Accountants appointed
by the management have been commensurate with the size of the Company and the nature of its business.
(viii) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by
the Central Government for the maintenance of cost records under Section 209(1) (d) of the Companies Act,
1956 in respect of the manufacture of bulk drugs and formulations and are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. We have, however, not made a detailed
examination of the records with a view to determining whether they are accurate or complete.
(ix) According to the information and explanations given to us in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed dues, including Provident Fund,
Investor Education and Protection Fund, Employees' State Insurance, Income-tax, Sales Tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it with the
appropriate authorities.
(b) There were no undisputed amounts payable in respect of Income-tax, Wealth Tax, Custom Duty, Excise
Duty, Cess and other material statutory dues in arrears as at 31st March, 2010 for a period of more than six
months from the date they became payable.
84
(c) Details of dues of Sales Tax and Excise Duty which have not been deposited as on 31st March, 2010 on
account of disputes are given below:
Name of the Statute Nature of Forum where Dispute Period to which Amount involved
the Dues is pending the amounts relate (Rs. in Millions)
Central Excise Act, 1944 Excise duty Customs, Excise and Service Tax 1997-2009 132.0
Appellate Tribunal (CESTAT)
Commissioner of Central Excise 1998-2009 0.7
(Appeals)
Central and various Sales tax Commissioner of Sales Tax (Appeals) 1992-2003 16.7
States' Sales Tax Acts Joint Commissioner of Sales Tax 2002-2009 6.3
(Appeals)
Deputy Commissioner of Sales Tax 1998-2006 1.9
(Appeals)
Sales Tax Tribunal 1992-2003 3.7
Appellate Commissioner of 2005-2006 0.6
Commercial taxes
High Court, Jabalpur 2001-2006 14.9
(x) In our opinion and according to the information and explanations given to us, the Company has not defaulted
in the repayment of dues to banks, financial institutions and debenture holders.
(xi) In our opinion and according to the information and explanations given to us, the terms and conditions of the
guarantees given by the Company for loans taken by others from banks and financial institutions are not prima
facie prejudicial to the interests of the Company.
(xii) In our opinion and according to the information and explanations given to us, the term loans have been applied
for the purposes for which they were obtained.
(xiii) In our opinion and according to the information and explanations given to us and on an overall examination of
the Balance Sheet, we report that funds raised on short-term basis have not been used during the year for long-
term investment.
(xiv) The Company has not made any preferential allotment of shares to parties and companies covered in the
Register maintained under Section 301 of the Companies Act, 1956 and hence, the question of whether the
price at which shares have been issued is prejudicial to the interest of the Company does not arise.
(xv) According to the information and explanations given to us, during the period covered by our audit report, the
Company had issued short term MIBOR linked secured debentures, which have been repaid prior to creation of
security in favour of the debenture holders.
(xvi) To the best of our knowledge and according to the information and explanations given to us, no fraud by the
Company and no material fraud on the Company has been noticed or reported during the year.

(Registration No 117366W)
M. S. Dharmadhikari
Place: Mumbai Partner

Balance Sheet
As at March 31, 2010
Schedules As at As at
31.03.2010 31.03.2009
Rs. in million Rs. in million
I. SOURCES OF FUNDS
Shareholders' Funds
Share Capital 1 889.4 828.2
Reserves and Surplus 2 24,416.1 12,924.8
25,305.5 13,753.0
Loan Funds
Secured Loans 3 7,040.0 5,651.2
Unsecured Loans 4 2,028.1 3,797.9
9,068.1 9,449.1
Deferred Tax Liabilities (net) 1,582.5 1,347.3
[Refer note no.5 of Schedule 18(B)]
TOTAL 35,956.1 24,549.4
II. APPLICATION OF FUNDS
Fixed Assets 5
Gross Block 16,165.2 13,313.7
Less: Depreciation and Amortisation 4,251.3 3,557.5
Net Block 11,913.9 9,756.2
Capital Work in Progress 1,408.3 1,163.1
13,322.2 10,919.3
Investments 6 7,240.7 4,738.7
Current Assets, Loans and Advances
Inventories 7 7,137.0 7,158.8
Sundry Debtors 8 9,165.9 7,090.6
Cash and Bank Balances 9 374.2 121.3
Loans and Advances 10 6,466.0 3,666.4
23,143.1 18,037.1
Less: Current Liabilities and Provisions 11
Current Liabilities 6,081.8 7,721.8
Provisions 1,668.1 1,423.9
7,749.9 9,145.7
Net Current Assets 15,393.2 8,891.4
TOTAL 35,956.1 24,549.4
Significant Accounting Policies and Notes to Accounts 18
In terms of our report attached

For Deloitte Haskins & Sells For Lupin Limited
M. S. Dharmadhikari Dr. Desh Bandhu Gupta Dr. Kamal K. Sharma M. D. Gupta
Partner Chairman Managing Director Executive Director
Nilesh Gupta D. K. Contractor Vinita Gupta
Executive Director Director Director
K. V. Kamath Dr. Vijay Kelkar Dr. K. U. Mada
Director Director Director
Sunil Nair R. A. Shah Richard Zahn
Place : Mumbai R. V. Satam

Dated : May 5, 2010 Company Secretary
86
Profit and Loss Account
For the year ended March 31, 2010
Schedules Current Previous

31.03.2010 31.03.2009
INCOME
Sales (Gross) 36,660.6 29,419.4
Less: Excise Duty 259.7 433.8
Sales (Net) 36,400.9 28,985.6
Other Operating Income 12 684.2 685.7
Other Income 13 41.0 38.3
37,126.1 29,709.6
EXPENDITURE
Cost of Materials 14 14,927.7 12,418.5
Personnel Expenses 15 3,765.5 3,344.7
Manufacturing and Other Expenses 16 10,246.8 8,153.9
Interest and Finance Charges 17 283.8 415.2
Depreciation and Amortisation 815.7 663.5
30,039.5 24,995.8
Profit before Tax 7,086.6 4,713.8
Provision for Taxation
- Current Tax (including Wealth Tax) 1,161.2 502.6
Less: MAT Credit Entitlement (794.4) (222.9)
- Deferred Tax 230.5 115.2
- Fringe Benefit Tax - 149.2
Net Profit after Tax 6,489.3 4,169.7
Add : Surplus brought forward from previous year 6,368.5 4,910.1
Amount Available for Appropriation 12,857.8 9,079.8
APPROPRIATIONS
- Transfer to General Reserve 1,500.0 1,500.0
- Proposed Dividend on Equity Shares 1,200.7 1,035.3
- Dividend on Equity Shares for previous year 10.8 0.1
- Corporate Tax on Dividend 201.2 175.9
Balance Carried to Balance Sheet 9,945.1 6,368.5
12,857.8 9,079.8
Earnings Per Share (in Rs.) [Refer note no.12 of Schedule 18 (B)]
- Basic 75.38 50.58
- Diluted 74.08 50.07
Face Value of Equity Shares (in Rs.) 10.00 10.00



Cash Flow Statement
Current Previous
31.03.2010 31.03.2009
A. Cash Flow from Operating Activities
Net Profit before Tax 7,086.6 4,713.8
Adjustments for:
Depreciation and Amortisation 815.7 663.5
Loss on sale/discard of Fixed Assets (net) 74.2 32.5
Profit on sale of Current Investments - Non Trade - (0.4)
Interest and Finance Charges 283.8 415.2
Interest on Long Term Investments - Non Trade - (0.2)
Interest on Fixed Deposits with Banks (1.0) (30.2)
Dividend on Long Term Investment - Trade
[31.03.2010 Rs. 4,410/- , 31.03.2009 Rs. 33,820/-]
Dividend on Current Investments - Non Trade - (1.7)
Provision for Doubtful Debts 16.5 23.5
Employee share based payment cost 4.7 0.7
Exchange (gain) / loss on revaluation of foreign currency loans (257.1) 42.9
Provision for Diminution in value of Long Term investments written back - (0.5)
Operating Profit before Working Capital Changes 8,023.4 5,859.1
Adjustments for:
Trade and other Receivables (2,519.8) (772.6)
Inventories 21.8 (900.3)
Trade Payables 847.0 578.0
Cash Generated from Operations 6,372.4 4,764.2
Direct Taxes paid (net) (1,049.5) (474.4)
Fringe Benefit Tax paid 2.8 (151.6)
Net Cash Generated from Operating Activities 5,325.7 4,138.2
B. Cash Flow from Investing Activities
Additions to Fixed Assets / Capital Work-in-Progress (3,321.1) (2,239.7)
Sale of Fixed Assets 14.7 4.1
Purchase of Investments in Subsidiaries (2,502.0) (1,834.4)
Purchase of Investments in others - (1,330.0)
Sale of Investments - 1,351.5
Loans and Advances to Subsidiary Companies (1,033.7) (905.9)
Interest on Long Term Investments - Non Trade - 0.2
[31.03.2010 Rs. 4,410/- , 31.03.2009 Rs. 33,820/-]
Dividend on Current Investments - Non Trade - 1.7
Interest on Fixed Deposits with Banks 1.0 30.2
Net Cash Used in Investing Activities (6,841.1) (4,922.3)
C. Cash Flow from Financing Activities
Proceeds from Borrowings (net) 3,238.4 72.8
Repayment of Foreign Currency Convertible Bonds (64.7) -
Premium on repayment of Foreign Currency Convertible Bonds (12.6) -
Issue of Equity Shares (ESOPs) 3.0 1.7
Securities Premium Received (ESOPs) 104.4 51.9
Interest and Finance Charges paid (net) (278.1) (412.6)
Dividend paid (1,044.4) (819.8)
Corporate Dividend Tax paid (177.7) (139.4)
Net Cash Generated / (used in) from Financing Activities 1,768.3 (1,245.4)
Net increase / (decrease) in Cash and Cash equivalents 252.9 (2,029.5)
Cash and Cash equivalents as at the beginning of the year 121.3 2,150.8
Cash and Cash equivalents as at the end of the year 374.2 121.3
88
Notes :
1. Cash and Cash equivalents include cash and bank balances in current accounts and in deposit accounts
(refer Schedule 9 of the Balance Sheet).
2. Rs. 5.4 million (previous year Rs. 2.9 million) being deposits under lien lodged with banks as margin money
not readily available to the Company.
3. The above Cash Flow Statement has been prepared under the 'Indirect Method' as set out in the
Accounting Standard 3 (AS-3) "Cash Flow Statement".
4. Previous year figures have been regrouped wherever necessary.



Schedules Forming Part of the Balance Sheet
As at As at
31.03.2010 31.03.2009
SCHEDULE 1 - SHARE CAPITAL
Authorised
100,000,000 (previous year 100,000,000) Equity Shares of Rs 10/- each 1,000.0 1,000.0
TOTAL 1,000.0 1,000.0
Issued, Subscribed and Paid-up
88,943,833 (previous year 82,819,550) Equity Shares of Rs 10/- each
fully paid-up 889.4 828.2
TOTAL 889.4 828.2
Notes:
Of the above Equity Shares-
i) 37,311,048 (previous year 37,311,048) Equity Shares of Rs. 10/- each were allotted as fully paid-up without payment
being received in cash, pursuant to the Scheme of Amalgamation with erstwhile Lupin Laboratories Limited.
ii) 40,152,494 (previous year 40,152,494) Equity shares of Rs 10/- each have been allotted as fully paid-up bonus shares by
way of capitalisation of General Reserve.
iii) 606,294 (previous year 298,753) Equity Shares of Rs. 10/- each, fully paid-up have been allotted pursuant to Lupin
Employees Stock Option Plans. [Refer note no.14(a) of Schedule 18(B)].
Particulars of options on unissued share capital [Refer note no.14(a) of Schedule 18(B)].
iv) 8,043,911 (previous year 2,227,169) Equity Shares of Rs. 10/- each, fully paid - up have been allotted on conversion of
Foreign Currency Convertible Bonds in accordance with the terms of the issue. [Refer note no.19 of Schedule 18(B)].
90
As at As at
31.03.2010 31.03.2009
SCHEDULE 2 - RESERVES AND SURPLUS
Capital Reserve
- Investment Subsidies from Central Government
Balance as per last Balance Sheet 1.0 1.0
- Investment Subsidies from State Government
- On restructuring of capital of the Company under the Scheme
of Amalgamation
263.9 263.9
Capital Redemption Reserve

Securities Premium Account

Balance as per last Balance Sheet 1,731.5 1,361.5
Add: Received during the year* 3,344.6 370.0
Less: Premium on redemption of Foreign Currency Convertible 12.6 -
Bonds (net of tax of Rs. 6.5 million, previous year Rs. nil)
[Refer note no. 19 of Schedule 18(B)]
5,063.5 1,731.5
General Reserve
Add: Transferred from Profit and Loss Account 1,500.0 1,500.0
8,515.4 7,015.4
Amalgamation Reserve
Cash Flow Hedge Reserve

Balance as per last Balance Sheet (2,899.6) (145.6)
Add: Credited / (Debited) during the year (net) (net of tax of 3,078.0 (2,754.0)
Rs. 4.8 million, previous year Rs. nil) [Refer note no. 17 of Schedule 18(B)]
178.4 (2,899.6)
Employees Stock Options Outstanding

Balance at the beginning of the year 2.9 -
Add: Options granted during the year 6.1 2.9
Balance at the end of the year (A) 9.0 2.9
Deferred Employees Stock Options Cost
Less: Amortisation during the year 4.7 0.7
Balance at the end of the year (B) 3.6 2.2
(A-B) 5.4 0.7
Surplus in Profit and Loss Account 9,945.1 6,368.5

TOTAL 24,416.1 12,924.8
* Represents amount received on allotment of 307,541 ( previous year 167,586) Equity Shares of Rs. 10/- each,
pursuant to "Lupin Employees Stock Option Plans" and 5,816,742 ( previous year 571,069) Equity Shares of
Rs. 10/- each on conversion of Foreign Currency Convertible Bonds in accordance with the terms of the issue.
[Refer notes no.14(a) and 19 of Schedule 18(B)].

As at As at
31.03.2010 31.03.2009
SCHEDULE 3 - SECURED LOANS
Working Capital Loans from Banks 7,040.0 5,651.2
TOTAL 7,040.0 5,651.2
Notes :
1. Working Capital Loans from Banks comprise of Cash Credit, Short Term Loans, Packing Credit, Post Shipment Credit,
Bills Discounted and Overseas Import Credit and are secured by hypothecation of inventories and book debts and
moveable current assets at godowns, depots, in course of transit or on high seas and a second charge on immovable
properties and movable assets of the Company both present and future situated at (a) Aurangabad, Pune and
Tarapur in Maharashtra, (b) Ankleshwar in Gujarat, ( c) Mandideep in Madhya Pradesh, (d) Verna in Goa and (e) Bari
Brahmana in Jammu and Kashmir.
2. Working Capital Loans from Banks include foreign currency loans of Rs. 5,212.3 million (previous year Rs. 2,928.4 million).
As at As at
31.03.2010 31.03.2009
SCHEDULE 4 - UNSECURED LOANS
Foreign Currency Convertible Bonds - 3,363.1
[Refer note no.19 of Schedule 18(B)].
Working Capital Loans from Banks 634.2 -
Foreign Currency Term Loans from Bank 960.9 -
Other Loans
a) Sales Tax Deferment Loan - Government of Maharashtra 63.0 64.8
b) Loans from Council for Scientific and Industrial Research, Department of 370.0 370.0
Science and Technology, Government of India
TOTAL 2,028.1 3,797.9
Notes :
1. Working Capital Loans from Banks include foreign currency loans of Rs. 634.2 million (previous year Rs. nil).
2. Unsecured Loans (other than working capital loans) include Rs. 64.9 million (previous year Rs. 0.2 million) repayable
within one year.
92
93
SCHEDULE 5 - FIXED ASSETS (Rs. in million)
Particulars Gross Block Depreciation and Amortisation Net Block

As at As at Up to For the Up to As at As at
April 01, Additions Deductions March 31, March 31, Year Deductions March 31, March 31, March 31,
2009 2010 2009 2010 2010 2009
Freehold Land 46.3 24.5 - 70.8 - - - - 70.8 46.3
Leasehold Land 148.7 166.4 - 315.1 16.1 3.2 - 19.3* 295.8 132.6
Buildings 3,123.8 648.2 2.0 3,770.0 535.6 107.4 0.3 642.7 3,127.3 2,588.2
Plant, Machinery and Equipments 9,654.8 2,083.9 205.8 11,532.9 2,849.5 672.4 120.2 3,401.7 8,131.2 6,805.3
Furniture and Fixtures 254.9 99.9 1.9 352.9 92.5 24.9 0.7 116.7 236.2 162.4
Vehicles 27.1 13.9 1.1 39.9 7.2 3.1 0.7 9.6 30.3 19.9
Intangible Assets :
Computer Software-Acquired 58.1 25.5 - 83.6 56.6 4.7 - 61.3 22.3 1.5
TOTAL 13,313.7 3,062.3 210.8 16,165.2 3,557.5 815.7 121.9 4,251.3 11,913.9 9,756.2
Previous year 11,550.5 1,825.6 62.4 13,313.7 2,919.8 663.5 25.8 3,557.5 9,756.2
Capital Work-in-Progress 1,408.3 1,163.1
TOTAL 13,322.2 10,919.3
* Amounts written off in respect of leasehold land for the period of lease which has expired.
Notes :
1. Cost of Buildings include cost of shares in co-operative societies of Rs. 1,000/- (previous year Rs. 1,000/-).
2. Capital Work-in-Progress includes capital advances paid, machinery under installation / in transit and construction and erection materials (including those lying with contractors) and pre-
operative expenses [Refer note no. 4 of Schedule 18(B)].
3. Additions to Fixed Assets include items of fixed assets aggregating Rs. 720.4 million (previous year Rs. 440.8 million) located at Research and Development Centres of the Company.
LUPIN Annual Report 2010

Face As at As at
Number Value 31.03.2010 31.03.2009
Rs. in million Rs. in million Rs. in million
SCHEDULE 6 - INVESTMENTS
Long Term Investments
(At cost/carrying amount unless otherwise stated)
1. In Government Securities- Unquoted (Non Trade)
National Saving Certificates
(31.03.2010 Rs. 6,000/-, 31.03.2009 Rs. 6,000/-)
[Deposited with Government Authority 31.03.2010
Rs. 6,000/-, 31.03.2009 Rs. 6,000/-]
2. In Shares
a) In Subsidiary Companies - Unquoted
(Trade) In Equity/Ordinary shares
- Novodigm Ltd. 2,384,783 Rs. 372.9 372.9
(Including 6 shares held by nominees) (2,384,783) 10
- Lupin Holdings B. V., Netherlands 105,579 Euro 6,705.5 4,223.5
[Refer note no. 3 of Schedule 18(B)]. (70,224) 1000
- Lupin Pharmacare Ltd. 1,050,000 Rs. 100.5 100.5
(Including 6 shares held by nominees) (1,050,000) 10
- Lupin Herbal Ltd. 50,000 Rs. 0.5 0.5
(Including 6 shares held by nominees) (50,000) 10
- Lupin Pharmaceuticals Inc., USA 300,000 USD 13.8 13.8
(300,000) 1
- Lupin Australia Pty Ltd., Australia 500,000 AUD 16.9 16.9
(500,000) 1
- Lupin Europe Ltd., UK 251,000 GBP 20.0 -
(-) 1
7,230.1 4,728.1
b) Others - Unquoted (Trade)
In Equity shares
- Biotech Consortium India Ltd. 50,000 Rs. 0.5 0.5
(50,000) 10
- Bharuch Enviro Infrastructure Ltd. 4,410 Rs.
(31.03.2010 - Rs. 44,100/-, 31.03.2009 (4,410) 10
Rs. 44,100/-)
- Bharuch Eco-Acqua Infrastructure Ltd. 924,675 Rs. 9.2 9.2
(924,675) 10
- Tarapur Environment Protection Society 9,248 Rs. 0.9 0.9
(9,248) 100 10.6 10.6
TOTAL 7,240.7 4,738.7
Note :
All the Investments in shares are fully paid up.
94
As at As at
31.03.2010 31.03.2009
SCHEDULE 7 - INVENTORIES
Stock-in-trade
- Raw Materials 2,307.3 2,371.4
- Packing Materials 449.1 384.6
- Work-in-Process 1,728.8 1,833.8
- Finished Goods (including Traded Goods) 2,492.9 2,407.7
Consumable Stores, Spares and Fuel 158.9 161.3
TOTAL 7,137.0 7,158.8
SCHEDULE 8 - SUNDRY DEBTORS

(Unsecured)
Debts outstanding for a period exceeding six months
- Considered Good 151.5 257.8
- Considered Doubtful 70.0 53.5
221.5 311.3
Other Debts Considered Good 9,014.4 6,832.8
9,235.9 7,144.1
Less: Provision for Doubtful Debts 70.0 53.5
TOTAL 9,165.9 7,090.6
Note :
Sundry Debtors include debts due from subsidiary companies Rs. 5,476.6 million
(previous year Rs. 3,784.0 million).
SCHEDULE 9 - CASH AND BANK BALANCES

Cash in hand [including Cheques on hand of Rs. 44.2 million 47.1 39.6
(previous year Rs. 36.7 million)]
Bank Balances
- With Scheduled Banks
In Current Accounts (including remittances in transit) 312.6 45.8
In Exchange Earners Foreign Currency Account 0.3 0.3
In Deposit Accounts [including Margin Deposits Rs. 5.4 million 8.9 27.7
(previous year Rs. 2.9 million)
- With Others
In Current Accounts 5.3 7.9
[See note (ii) below]
TOTAL 374.2 121.3
Notes :
i) The Bank balances in deposit accounts include interest accrued on fixed deposits amounting to Rs. 0.4 million
(previous year Rs. 1.0 million).
ii) Bank balances include balances with non scheduled banks as under : (Rs. in million)
Maximum balance
Name of the Bank Country As at As at during the year ended
31.03.2010 31.03.2009 31.03.2010 31.03.2009
Bank of Foreign Trade - Vneshtorg Bank US$ A/c Russia 1.5 1.2 2.6 3.6
Bank of Foreign Trade - Vneshtorg Bank Rouble A/c Russia 1.5 0.3 1.9 2.4
Texaka Bank-Tenge A/c Kazakhstan 0.1 0.7 0.7 1.3
Texaka Bank-US$ A/c Kazakhstan 0.5 - 0.8 1.4
Ukreximbank UAH (31.03.2010 Rs. 35,632/-) Ukraine 0.3 2.6 1.6
Ukreximbank US$ (31.03.2010 Rs.15,047/-) Ukraine 0.2 2.6 2.5
Citibank N.A. UK - 4.1 13.5 14.0
Citibank, Shanghai China 1.4 0.9 1.6 1.1
Shanghai Bank, Shanghai China 0.2 0.1
(31.03.2010 Rs. 809/-, 31.03.2009 Rs. 29,010/-)
National Bank - Uzbekistan US$ A/c Uzbekistan 0.3 0.2 0.3 0.5
Standard Chartered Bank-US$ A/c Vietnam - 0.3 -
(31.03.2010 Rs. 2,055/-)
Standard Chartered Bank-VND A/c Vietnam - - 0.1 -

As at As at
31.03.2010 31.03.2009
SCHEDULE 10 - LOANS AND ADVANCES
Unsecured, considered good unless otherwise stated
Loans and Advances to Subsidiary Companies 2,259.3 1,225.6
Advances recoverable in cash or in kind or for value to be received
- Considered Good (refer note below) 2,753.4 1,657.9
2,759.9 1,664.4
Less: Provision for Doubtful Advances 6.5 6.5
2,753.4 1,657.9
Note:
Includes fair value of foreign exchange forward contracts Rs. 672.2 million
(previous year Rs. nil)
Deposits 405.0 392.6
Balances with Customs and Excise Authorities 15.2 23.4
Advance payment of Income Tax (net of Provision) 4.5 136.4
Advance payment of Fringe Benefit Tax (net of Provision) 4.8 7.6
MAT Credit Entitlement 1,023.8 222.9
TOTAL 6,466.0 3,666.4
SCHEDULE 11 - CURRENT LIABILITIES AND PROVISIONS

Current Liabilities
Acceptances 902.8 414.1
Sundry Creditors
- Total outstanding dues of Micro Enterprises and Small Enterprises 88.3 64.1
- Total outstanding dues of creditors other than Micro Enterprises and 4,323.6 4,125.7
Small Enterprises
[includes Rs. 551.8 million (previous year Rs. 419.7 million) due to
Subsidiary Companies]
Other Liabilities (refer note below) 701.0 3,058.5
Interest Accrued but not due on loans 52.1 45.9
Unclaimed Dividend * 11.1 9.4
Unclaimed Matured Fixed Deposits * 1.9 2.7
Unclaimed Interest Warrants * 1.0 1.4
* There are no amounts due and outstanding to be credited to Investor
Education and Protection Fund.
6,081.8 7,721.8
Note:
Other Liabilities includes fair value of foreign exchange forward and
currency option contracts Rs. 535.4 million (previous year Rs. 2,959.3 million).
Provisions
For Gratuity 31.1 21.4
For Compensated Absences 215.3 156.6
For Taxation (including Wealth Tax) ( net of Advance Tax) 21.6 34.7
For Proposed Dividend on Equity Shares 1,200.7 1,035.3
For Corporate Tax on Dividend 199.4 175.9
1,668.1 1,423.9
TOTAL 7,749.9 9,145.7
96
Schedules Forming Part of the Profit and Loss Account
Current Previous
Year Ended Year Ended
31.03.2010 31.03.2009
SCHEDULE 12 - OTHER OPERATING INCOME
Export Benefits and Other Incentives 249.4 345.8
Income from Research Services 251.0 94.0
Income from Product Registration Services (Dossiers) 78.6 79.3
Insurance Claims 8.9 12.0
Compensation Received 51.8 0.7
Credit balances written back - 4.1
Exchange Rate Difference (net) - 113.4
Miscellaneous Income 44.5 36.4
TOTAL 684.2 685.7
SCHEDULE 13 - OTHER INCOME

Profit on Sale of Current Investments - Non Trade - 0.4
Dividend on Long Term Investments - Trade
[31.03.2010 Rs. 4,410/- , 31.03.2009 Rs. 33,820/-]
Interest on Fixed Deposits with Banks 1.0 30.2
[Tax Deducted at Source Rs. 0.1 million (previous year Rs. 0.9 million)]
Other Interest (including interest on income tax refunds) 40.0 5.3
[Tax Deducted at Source Rs. 0.6 million (previous year Rs. 0.6 million)]
Provision for diminution in value of Long Term Investments written back - 0.5
TOTAL 41.0 38.3
SCHEDULE 14 - COST OF MATERIALS

Raw Materials Consumed 9,533.2 8,016.0
Packing Materials Consumed 1,312.2 1,182.5
Purchase of Traded Goods 4,062.5 3,474.6
Opening Stock :
Finished Goods (including Traded Goods) 2,407.7 2,487.6
Work - in - Process 1,833.8 1,499.3
4,241.5 3,986.9
Closing Stock :
Finished Goods (including Traded Goods) 2,492.9 2,407.7
Work - in - Process 1,728.8 1,833.8
4,221.7 4,241.5
Decrease/(Increase) in Stock of Finished Goods (including Traded Goods)
and Work-in-Process 19.8 (254.6)
TOTAL 14,927.7 12,418.5
SCHEDULE 15 - PERSONNEL EXPENSES

Salaries, Wages and Bonus 3,260.8 2,928.2
Contribution to Provident , Gratuity and Other Funds 284.5 236.0
Welfare Expenses 220.2 180.5
TOTAL 3,765.5 3,344.7

Current Previous
31.03.2010 31.03.2009
SCHEDULE 16 - MANUFACTURING AND OTHER EXPENSES
Processing Charges 227.3 202.4
Consumable Stores and Spares 1,059.8 843.1
Repairs and Maintenance :
- Buildings 132.1 90.8
- Plant and Machinery 210.0 169.7
- Others 175.7 120.8
Rent 182.8 160.7
Rates and Taxes 67.7 54.7
Insurance 118.6 116.3
Power and Fuel 1,416.8 1,238.3
Contract Labour Charges 258.1 206.4
Excise Duty (net) 79.0 (5.9)
Selling and Promotion Expenses 2,746.7 2,179.2
Commission, Brokerage and Discount 560.7 505.5
[Including cash discount of Rs. 5.5 million (previous year Rs. 4.8 million)]
Freight and Forwarding 282.3 257.0
Lease Rent and Hire Charges 83.8 84.7
Postage and Telephone Expenses 108.9 100.7
Travelling and Conveyance 582.1 476.8
Legal and Professional Charges 638.2 378.4
[Net of recoveries of Rs. 143.6 million (previous year Rs. 152.2 million)]
Donations 100.1 52.3
Clinical and Analytical Charges 456.1 448.8
Loss on Sale/Discard of Fixed Assets (net) 74.2 32.5
Bad Debts written off 6.2 17.8
Directors Sitting Fees 0.8 0.7
Exchange Rate Difference (net) 213.2 -
Miscellaneous Expenses 449.1 398.7
(includes Printing and Stationery, Vehicle Expenses,
Product Registration Fees, Audit Fees, etc.)
TOTAL 10,246.8 8,153.9
SCHEDULE 17 - INTEREST AND FINANCE CHARGES

Interest on Debentures 35.5 12.5
Interest on Fixed Loans 33.5 13.4
Others 214.8 389.3
TOTAL 283.8 415.2
98
Schedules Forming Part of the Accounts
SCHEDULE 18 - SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF

THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT
A) SIGNIFICANT ACCOUNTING POLICIES
a) Basis of Preparation of Financial Statements:

The financial statements are prepared under the historical cost convention in accordance with the generally
accepted accounting principles in India, the provisions of the Companies Act, 1956 and the applicable
accounting standards.
b) Use of Estimates:
The preparation of financial statements requires estimates and assumptions that affect the reported
amount of Assets and Liabilities on the date of the financial statements and the reported amount of
Revenues and Expenses during the reporting period. Differences between the actual results and the
estimates are recognised in the period in which the same are known/materialised.
c) Fixed Assets:
Fixed Assets are recorded and stated at cost, net of cenvat, less accumulated depreciation and accumulated
impairment losses, if any. Cost includes directly attributable cost of bringing the assets to their working
conditions for their intended use.
d) Intangible Assets:
Intangible Assets are recognised only if it is probable that the future economic benefits that are attributable
to the assets will flow to the enterprise and the cost of the assets can be measured reliably. The Intangible
Assets are recorded at cost and are carried at cost less accumulated amortisation and accumulated
impairment losses, if any.
e) Foreign Currency Transactions / Translation:
i) Transactions in foreign currency are recorded at the original rate of exchange in force at the time
transactions are effected.
ii) Exchange difference arising on settlements during the year of short term monetary items denominated
in foreign currency; and exchange difference arising on the reporting of short term monetary items
denominated in foreign currency which are outstanding at the year end using the exchange rates
prevailing at the balance sheet date, are recognized in the Profit and Loss Account.
iii) In terms of the Notification relating to AS 11 issued by the Ministry of Corporate Affairs in March 2009:
a) The exchange difference arising on reporting of the "Long Term Foreign Currency Monetary Items"
at the rates different from those at which they were initially recorded during the period or reported
in the previous financial statements and the exchange difference on settlement of such items, in so
far as such items relate to the acquisition of a depreciable capital asset, are added or deducted as the
case may be, from the cost of the respective asset and depreciated over the balance life of those
assets and
b) In other cases, these are accumulated in a "Foreign Currency Monetary Item Translation Difference
Account" and amortised over the balance period of such long term asset/liability but not beyond
31st March, 2011.
iv) In case of forward exchange contracts entered into to hedge the foreign currency exposure in respect of
short term monetary items, the difference between the exchange rate on the date of such contracts and
the year end rate is recognized in the Profit and Loss Account. Any profit/loss arising on cancellation of
forward exchange contract is recognized as income or expense of the year. Premium/discount arising
on such forward exchange contracts is amortised as income/expense over the life of contract.
v) Foreign offices/branches:
In respect of the foreign offices/branches, which are integral foreign operations, all revenues and
expenses during the year are reported at average rate. Monetary assets and liabilities are restated at
the year end exchange rate. Non monetary assets and liabilities are stated at the rate prevailing on
the date of the transaction. Net gain/loss on foreign currency translation is recognised in the Profit
and Loss Account.
f) Derivative instruments and hedge accounting:
Forward and Option Contracts, in the nature of highly probable forecast transactions, entered into by the
Company for hedging the risks of foreign currency exposure are accounted based on recognition and

THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT (CONTD.)
measurement principles stated in Accounting Standard 30 (AS 30) "Financial Instruments: Recognition and
Measurements".The amount removed from the Cash Flow Hedge Reserve, on the occurrence of the hedged
transaction, is included in the Profit and Loss Account, against the related hedged item.
g) Investments:
Long term investments are stated at cost which includes expenses directly incurred on acquisition of
investments. Investments in equity/ordinary shares in foreign currency are stated at cost by converting at
exchange rate prevailing at the time of acquisition. Provision for diminution in the value of long term
investments is made only if such decline is other than temporary. Current investments are carried at cost or
fair value, whichever is lower.
h) Inventories:
Stock-in-trade and stock of consumable stores, spares and furnace oil are valued at lower of cost and net
realisable value. Cost is computed based on moving weighted average in respect of all procured materials
and traded finished goods and includes appropriate share of utilities and other overheads in respect of
Work-in-Process and finished goods. Cost also includes all charges incurred for bringing the inventories to
their present location and condition.
i) Revenue recognition:
i) Revenue from sale of goods is recognised when the significant risks and rewards in respect of ownership
of products are transferred by the Company.
ii) Revenue (including in respect of insurance or other claims, interest, etc.) is recognised when it is
reasonable to expect that the ultimate collection will be made.
iii) Revenue from product sales is stated net of returns, sales tax/VAT and applicable trade discounts
and allowances.
iv) Income from research and product registration (dossiers) services and sale of patent rights is recognised
as revenue when earned in accordance with the terms of the relevant agreements.
v) Dividend from investment is recognised as revenue when right to receive the payments is established.
vi) Interest income is recognised on time proportionate basis.
j) Export Benefits:
Export benefits available under prevalent schemes are accrued in the year in which the goods are exported
and are accounted to the extent considered receivable.
k) Excise Duty:
Excise duty is accounted on the basis of payments made in respect of goods cleared and provision is made
for goods lying in bonded warehouses.
l) Depreciation and Amortisation:
Depreciation on fixed assets is provided on straight line basis in the manner and at the rates prescribed in
Schedule XIV to the Companies Act, 1956, except for the following Fixed Assets and Intangible Assets which
are depreciated/amortized over their useful life (being lower than the life considering the rates prescribed
in Schedule XIV to the Companies Act, 1956) as determined by the management on the basis of technical
evaluation, etc.
Assets Estimated useful life

Captive Power Plant at Tarapur 15 years
Certain assets provided to employees 3 years
Leasehold Land Over the period of lease
Intangible Assets (Computer Software) 6 years
m) Employee Benefits:
a) Post Employment Benefits and Other Long Term Benefits:
i) Defined Contribution Plan:
Company's contribution for the year paid/payable to defined contribution retirement benefit
schemes are charged to Profit and Loss Account.
100
ii) Defined Benefit and Other Long Term Benefit Plans:

Company's liabilities towards defined benefit plans and other long term benefits viz. gratuity and
compensated absences expected to occur after twelve months, are determined using the Projected
Unit Credit Method. Actuarial valuations under the Projected Unit Credit Method are carried out at
the Balance Sheet date. Actuarial gains and losses are recognised in the Profit and Loss Account in
the period of occurrence of such gains and losses. Past service cost is recognised immediately to the
extent benefits are vested, otherwise it is amortised on straight-line basis over the remaining
average period until the benefits become vested.
The retirement benefit obligation recognised in the balance sheet represents the present value of
the defined benefit obligation as adjusted for unrecognised past service cost, and as reduced by the
fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost,
plus the present value of available refunds and reductions in future contributions to the scheme.
b) Short Term Employee Benefits:
Short term employee benefits expected to be paid in exchange for the services rendered by employees
are recognised undiscounted during the period employee renders services. These benefits include
performance incentives.
c) Employee Termination Benefits Costs:
Compensation to employees who have opted for retirement under the Voluntary Retirement
Scheme of the Company is charged to the Profit and Loss Account in the year of exercise of option by
the employees.
n) Taxes on Income:
Income taxes are accounted for in accordance with Accounting Standard 22 (AS 22) “Accounting for Taxes
on Income”. Tax expense comprises both Current Tax and Deferred Tax. Current tax is measured at the
amount expected to be paid or recovered from the tax authorities using the applicable tax rates.
Minimum Alternate Tax (MAT) credit entitlement is recognized as an asset by crediting the Profit and Loss
Account and disclosing an equivalent amount as an asset under 'Loans and Advances' in accordance with
guidance note on “Accounting for Credit Available in respect of Minimum Alternate Tax under the Income
Tax Act, 1961” issued by the Institute of Chartered Accountants of India.
Deferred tax assets and liabilities are recognised for future tax consequence attributable to timing
differences between taxable income and accounting income that are measured at relevant enacted tax
rates. At each balance sheet date the company reassesses unrecognised deferred tax assets, to the extent
they become reasonably certain or virtually certain of realisation, as the case may be.
o) Fringe Benefit Tax:
Fringe benefit tax was recognised in accordance with the relevant provisions of the Income Tax Act, 1961
and the Guidance note on Fringe Benefit Tax issued by the Institute of Chartered Accountants of India.
p) Operating Leases:
Assets taken on lease under which all risks and rewards of ownership are effectively retained by the lessor
are classified as operating lease. Lease payments under operating leases are recognised as expenses on
accrual basis in accordance with the respective lease agreements.
q) Provisions, Contingent Liabilities and Contingent Assets:
Provisions involving substantial degree of estimation in measurement are recognised when there is a
present obligation as a result of past events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognised but are disclosed in the Notes to Accounts. Contingent Assets are
neither recognised nor disclosed in the financial statements.
r) Borrowing Costs:
Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalised as part of
the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get
ready for its intended use. All other borrowing costs are charged to revenue.

s) Stock based Compensation:

The compensation cost of stock options granted to employees is measured by the intrinsic value method,
i.e. the difference between the market price of the Company's shares on the date of the grant of options and
the exercise price to be paid by the option holders. The compensation cost, if any is amortised uniformly
over the vesting period of the options.
t) Government Grants:
Government grants are accounted when there is reasonable assurance that the enterprise will comply with
the conditions attached to them and it is reasonably certain that the ultimate collection will be made.
Capital grants relating to specific fixed assets are reduced from the gross value of the respective fixed assets.
Revenue grants are recognised in the Profit and Loss Account.
u) Research and Development:
Revenue expenditure incurred on research and development is charged to the respective heads in the
Profit and Loss Account, in the year it is incurred and capital expenditure there on is included in the
respective heads under Fixed Assets.
v) Impairment of Assets:
An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An
impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting periods is reversed if there has been a change in the
estimate of recoverable amount.
102
B) NOTES TO ACCOUNTS
1. Estimated amount of contracts remaining to be executed on capital account and not provided for, net of
advances, Rs. 525.2 million (previous year Rs. 680.0 million).
2. Contingent Liabilities:
(Rs. in million)
As at As at
31.03.2010 31.03.2009
a) Income tax demands/matters in respect of earlier years, pending in 107.8 46.9
appeals [including Rs. 90.3 million (previous year Rs. Nil) consequent to
department preferring appeals against the orders of the Appellate
Authorities passed in favour of the company].
Amount paid thereagainst and included under Schedule 10 “Advances
recoverable in cash or in kind” Rs. 17.5 million (previous year Rs. 38.0
million).
b) Excise duty, Service tax and Sales tax demands disputed in appeals and 194.7 118.3
pending decisions. Amount paid thereagainst and included under
Schedule 10 Rs. 17.9 million (previous year Rs. 13.8 million).
c) Claims against the Company not acknowledged as debts [excluding 258.5 298.9
interest (amount unascertained) in respect of a claim].
Amount paid thereagainst without admitting liability and included
under Schedule 10 Rs. 76.5 million (previous year Rs. 64.2 million).
d) Counter guarantee given to GIDC in connection with loan sanctioned by 7.5 7.5
a financial institution to a company, jointly promoted by an Association
of Industries (of which, the Company is a member) and GIDC.
e) Guarantees given in respect of standby letter of credit issued by 151.2 164.8

the Company's bankers in connection with the credit facilities to
its subsidiaries aggregating Rs. 181.6 million (previous year
Rs. 239.0 million).
f) Letter of comfort issued by the Company towards the credit facilities 254.8 246.2
sanctioned by the bankers of subsidiary companies aggregating
Rs.620.4 million (previous year Rs. 425.3 million).
g) Corporate guarantee given in respect of credit facility sanctioned by 27.7 -
the bankers of subsidiary companies aggregating Rs. 40.5 million
(previous year Rs. Nil).
h) Other corporate guarantee given. 135.0 -
3. During the year, the Company through its wholly owned subsidiary Lupin Holdings B.V., Netherlands
(LHBV), acquired/subscribed to the equity stake of the following:
i) Additional Investment in Lupin Atlantis Holdings SA, Switzerland (100% subsidiary of the Company) at a
total cost of Rs. 2349.2 million.
ii) Additional Investment in Generic Health Pty Ltd., Australia (Associate) at a total cost of Rs. 122.2 million.
iii) 100% equity stake of Lupin Pharma Canada Ltd., Canada at a total cost of Rs. 125.3 million.
The above acquisitions/subscriptions are based on the net assets values, the future projected revenues,
operating profits and cash flows, etc. of the investee companies.

4. Pre-operative expenses, included in Capital Work-in-Progress (Schedule 5) represent the expenses incurred
for projects, which are yet to be commissioned. The details of the pre-operative expenses are:
(Rs. in million)
Particulars 2009-2010 2008-2009
Opening balance 13.5 9.0
Incurred during the current year:
Salaries, allowances and contribution to funds 22.9 19.6
Professional fees 0.1 0.5
Travelling expenses 1.7 3.4
Others 9.6 2.1
Total 47.8 34.6
Less : Capitalised during the year 35.1 21.1
Closing balance 12.7 13.5
5. The Deferred Tax Assets/ (Liabilities) arising out of significant timing differences are as under:
(Rs. in million)
Particulars As at As at
31.03.2010 31.03.2009
Deferred Tax Liabilities:
Depreciation (1769.6) (1514.0)
Other timing difference (4.8) -
Deferred Tax Assets:
Provision for doubtful debts and advances 25.4 20.3
FCCB issue expenses - 6.0
VRS Compensation 87.7 100.0
Other timing differences 78.8 40.4
Net Deferred Tax Liabilities (1582.5) (1347.3)
6. Segment Reporting:
The Company has presented data relating to its segments based on its consolidated financial statements,
which are presented in the same Annual Report. Accordingly, in terms of the provisions of Accounting
Standard 17 (AS 17) "Segment Reporting", no disclosures related to segments are presented in its
standalone financial statements.
7. Additional information pursuant to the Provisions of Paragraphs 3, 4C, and 4D of Part II of Schedule VI to the
Companies Act, 1956.
a) Consumption of Raw Materials:
2009-2010 2008-2009
Item Unit Quantity (Rs. in million) Quantity (Rs. in million)
DL2 (RECEMIC) M.T. 1418.4 774.6 1226.9 615.4
PEN G M.T. 4397.9 1692.6 3485.4 1763.4
Others 7066.0 5637.2
TOTAL 9533.2 8016.0
b) Value of Imported and Indigenous consumption:

i) Consumption of Raw Materials:
2009-2010 2008-2009
% (Rs. in million) % (Rs. in million)
Imported 44.7 4264.2 53.0 4251.9
Indigenous 55.3 5269.0 47.0 3764.1
TOTAL 100.0 9533.2 100.0 8016.0
104
ii) Consumption of Stores and Spares:

2009-2010 2008-2009
% (Rs. in million) % (Rs. in million)
Imported 7.3 77.8 7.4 62.2
Indigenous 92.7 982.0 92.6 780.9
TOTAL 100.0 1059.8 100.0 843.1
c) CIF Value of Imports:

(Rs. in million)
2009-2010 2008-2009
i) Capital Goods 519.9 504.3
ii) Raw Materials 4456.3 4557.3
iii) Packing Materials 307.0 205.6
iv) Purchase of Traded Goods 164.3 126.4
v) Consumable, Stores and Spares 199.4 142.6
TOTAL 5646.9 5536.2
d) Expenditure in Foreign currencies (subject to deduction of tax where applicable) on account of:
(Rs. in million)
2009-2010 2008-2009
i) Interest 33.3 54.8
ii) Travelling 33.6 33.3
iii) Commission 179.7 143.1
iv) Selling and Promotion expenses 1235.2 896.0
v) Clinical and Analytical charges 31.5 60.8
vi) Legal and Professional charges (net of recoveries) 494.7 219.4
vii) Personnel Expenses 101.5 152.5
viii) Others 125.4 205.1
TOTAL 2234.9 1765.0
e) Earnings in Foreign Exchange on account of: (Rs. in million)

2009-2010 2008-2009
i) FOB value of Exports 20787.2 15821.2
ii) Deemed Exports 218.3 327.5
iii) Reimbursement of freight and insurance on Exports 143.9 129.8
iv) Income from Research Services 251.0 94.0
v) Income from Product Registration Services (Dossiers) 78.6 79.3
vi) Interest on Bank Fixed Deposits - 26.4
vii) Compensation received 51.8 -
viii) Others 1.1 1.0
TOTAL 21531.9 16479.2
8. Remittance in Foreign currency on account of dividend:

The Company has paid dividend in respect of shares held by Non-Resident Shareholders on repatriation
basis. This inter-alia includes portfolio investment and direct investment, where the amount is also credited
to Non Resident External A/c (NRE A/c). The exact amount of dividend remitted in foreign currency cannot
be ascertained. The total amount remittable in this respect is given below:
Year to which the dividend relates 2008-2009 2007-2008
Number of non-resident shareholders 429 357
Number of shares held by them 12137680 14159940
Amount of dividend (Rs. in million) 151.7 141.6

9. a) Managerial Remuneration:
(Rs. in million)
Particulars 2009-2010 2008-2009
Salary and Allowances 101.1 70.1
Contribution to Provident and Other Funds 10.7 7.2
Perquisites 8.5 2.6
Commission to Whole time Director 70.0 47.3
Commission to Non Executive Directors 5.0 2.5
Sitting fees to Non Executive Directors 0.8 0.7
TOTAL 196.1 130.4
Notes:
(i) Above amount does not include remuneration paid by a wholly owned foreign subsidiary company to a
director aggregating Rs. 89.3 million (previous year Rs.68.7 million).
ii) Remuneration for the current year includes increased remuneration of the Managing Director and an
Executive Director w.e.f. 1st July 2009 in accordance with the Shareholder's resolutions.
iii) The provision for gratuity and compensated absences is made on the basis of actuarial valuation for all
the employees of the Company, including for the managerial personnel. Proportionate amount of
gratuity and compensated absences is not included in the above disclosure, since the exact amount is
not ascertainable.
b) Computation of Net Profit under Section 349 of the Companies Act, 1956 and commission payable to
Whole-time Director/ Non Executive Directors:
(Rs. in million)
Particulars 2009-2010 2008-2009
Profit before tax 7086.6 4713.8
Add :
i) Loss on sale/discard of fixed assets (net) 74.2 32.5
ii) Provision for doubtful debts 16.5 23.5
iii) Directors remuneration 196.1 130.4
Less:
Provision for diminution in value of long term investments written back - 0.5
Net Profit as per Section 349/350 7373.4 4899.7
Commission (as approved and restricted by the Board of Directors.
Refer note no. 21)
- To Executive Chairman (Whole-time Director) 70.0 47.3
- To Non Executive Directors 5.0 2.5
10. Auditors' Remuneration: (Rs. in million)

2009-2010* 2008-2009*
A) Payment to Auditors:
a) As Audit Fees 3.5 3.5
b) As adviser or in any other capacity of, in respect of:
Taxation matters 4.0 2.0
c) In any other manner:
for other services such as quarterly limited reviews, audit of
consolidated financial statements, certificates, etc. 3.9 2.6
d) Reimbursement of out-of-pocket expenses (2009-10 Rs. 38,247/-)
(2008-09 Rs. 19,936/-)
TOTAL 11.4 8.1
B) Cost Audit Fees 0.2 0.2
* Excluding service tax
106
11. The Company procures on lease, equipments, vehicles and office premises under operating leases. These
rentals recognised in the Profit and Loss Account for the year are Rs. 46.7 million (previous year Rs. 40.0 million).
The future minimum lease payments and payment profile of non cancellable operating leases are as under:
(Rs. in million)
2009-2010 2008-2009
Not later than one year 39.4 32.4
Later than one year but not later than five years 37.5 22.3
Later than five years - 0.1
TOTAL 76.9 54.8
12. Basic and Diluted Earnings per Share is calculated as under:

(Rs. in million)
2009-2010 2008-2009
Profit attributable to Equity Shareholders 6489.3 4169.7
Weighted average number of Equity Shares :
- Basic 86083153 82442414
Add: Effect of dilutive issue of FCCBs, employees stock options (ESOPs), -
converted during the year and ESOPs outstanding as on 31.03.2010 1513952 836054
- Diluted 87597105 83278468
Earnings per Share (in Rs.)
- Basic 75.38 50.58
- Diluted 74.08 50.07
13. Details of loans and advances in the nature of loans as per the requirements under clause 32 of the Listing
Agreement with Stock Exchanges :
(Rs. in million)
Name of the company Nature of relationship Amount outstanding Maximum amount
as at March 31, 2010 outstanding
during the year
Novodigm Limited Wholly-owned subsidiary 200.0 200.0
(175.0) (175.0)
Lupin Pharmacare Limited Wholly-owned subsidiary 2059.3 2059.3
(1030.7) (1030.7)
Notes:
i) The above loans are interest free, long term, repayable on demand.
ii) The loans to employees as per the Company's policy and security deposits paid towards premises taken
on leave and license/lease basis, against business conducting agreements, have not been considered.
iii) There are no investments by loanees in the shares of the Parent Company and/or the subsidiary
companies.
iv) Previous year figures are given in brackets.
14. Employees Stock Option Plans:

a) The Company implemented “Lupin Employees Stock Option Plan 2003” (ESOP 2003), “Lupin Employees
Stock Option Plan 2005” (ESOP 2005) and “Lupin Subsidiary Companies Employees Stock Option Plan
2005” (SESOP 2005) as approved in earlier years by the Shareholders of the Company and the
Remuneration/Compensation Committee of the Board of Directors. Details of the options granted
during the year under the plans are as under:

Lupin Employees Stock Option Plan 2003:
Grant Date No of Options Exercise price Vesting Period

Rs.
September 22, 2009 12000 1089.15 22.09.2009 to 31.12.2010
12000 1089.15 22.09.2009 to 31.12.2011
28000 1089.15 22.09.2009 to 31.12.2012
28000 1089.15 22.09.2009 to 31.12.2013
80000
January 29, 2010 10650 1404.00 29.01.2010 to 30.06.2011
10650 1404.00 29.01.2010 to 30.06.2012
24850 1404.00 29.01.2010 to 30.06.2013
24850 1404.00 29.01.2010 to 30.06.2014
71000

Rs.
May 29, 2009 4200 840.85 29.05.2009 to 30.06.2010
4200 840.85 29.05.2009 to 30.06.2011
9800 840.85 29.05.2009 to 30.06.2012
9800 840.85 29.05.2009 to 30.06.2013
28000
November 04, 2009 10000 614.08 04.11.2009 to 03.11.2010
10000
Lupin Subsidiary Companies Employees Stock Option Plan 2005:

Rs.
September 22, 2009 11302 1089.15 22.09.2009 to 31.12.2010
11303 1089.15 22.09.2009 to 31.12.2011
26372 1089.15 22.09.2009 to 31.12.2012
26373 1089.15 22.09.2009 to 31.12.2013
75350
The options are granted at an exercise price, which is in accordance with the relevant SEBI guidelines in
force, at the time of such grants. Each option entitles the holder to exercise the right to apply for and seek
allotment of one equity share of Rs.10/- each. The options have vesting periods as stated above in
accordance with the vesting schedule as per the said plans with an exercise period of ten years from the
respective grant dates.
The particulars of the options granted and lapsed under the Schemes are as below:
Particulars March 31, 2010 March 31, 2009
Nos. Nos.
Options outstanding as at the beginning of the year 361445 483411
Add: Options granted during the year 151000 25000
Less: Options lapsed during the year - 16490
Less: Options exercised during the year 204024 130476
Options outstanding as at the year end 308421 361445
108

Nos. Nos.
Less: Options lapsed during the year 23850 52311

Nos. Nos.
Add: Options granted during the year 75350 -
Less: Options exercised during the year 4250 -
b) The Company has followed the intrinsic value based method of accounting for stock options granted
after April 1, 2005 based on Guidance Note on Accounting for Employee Share-based Payments, issued
by the Institute of Chartered Accountants of India. Had the compensation cost for the Company's stock
based compensation plans been determined in the manner consistent with the fair value approach as
described in the said Guidance Note, the Company's net income would be lower by Rs. 52.5 million
(previous year Rs. 57.8 million) and earnings per share as reported would be lower as indicated below:
(Rs. in million)
Particulars Year Ended Year Ended
March 31, 2010 March 31, 2009
Net profit as reported 6489.3 4169.7
Less: Total stock-based employee compensation expense
determined under fair value based method 57.2 58.5
Add: Total stock-based employee compensation expense
determined under intrinsic value based method 4.7 0.7
Adjusted net profit 6436.8 4111.9
Basic earnings per share
- As reported (in Rs.) 75.38 50.58
- Adjusted (in Rs.) 74.77 49.88
Diluted earnings per share
- Adjusted (in Rs.) 73.48 49.38

The fair value of each option granted during the year is estimated on the date of grant based on the
following assumptions:
Particulars Grant dated Grant dated Grant dated Grant dated Grant dated
September 22, January 29, May 29, September 22, November 4,
2009 from 2010 from 2009 from 2009 from 2009 from
ESOP 2003 plan ESOP 2003 plan ESOP 2005 plan ESOP 2005 plan ESOP 2005 plan
Dividend yield (%) 1.29 1.29 1.29 1.29 1.29

Risk free interest rate (%) 7.14 7.49 6.66 7.14 7.08
Volatility (%) 40.95 39.87 41.83 40.95 38.79
15. Post Employment Benefits:

(i) Defined Contribution Plans:
The Company makes contributions towards provident fund and superannuation fund to a defined
contribution retirement benefit plan for qualifying employees. The superannuation fund is administered
by the Life Insurance Corporation of India (LIC). Under the plan, the Company is required to contribute a
specified percentage of payroll cost to the retirement benefit plan to fund the benefits.
The provident fund plan is operated by the “Lupin Ltd Employees Provident Fund Trust” (the “Trust”).
Eligible employees receive benefits from the said Provident Fund Trust. Both the employees and the
Company make monthly contributions to the Provident Fund Plan equal to a specified percentage of the
covered employee's salary. The minimum interest rate payable by the Trust to the beneficiaries every year
is being notified by the Government. The Company has an obligation to make good the short fall, if any,
between the return from the investments of the trust and the notified interest rate.
The Guidance Note on Implementing Accounting Standard 15 (AS -15), Employee benefits (revised 2005)
issued by Accounting Standards Board (ASB) states that benefit plans involving employer established
provident funds, which require interest shortfalls to be recompensed are to be considered as defined
benefit plans. Pending the issuance of the guidance note from the Actuarial Society of India, the
Company's actuary has expressed an inability to reliably measure provident fund liabilities. Accordingly,
the Company is unable to exhibit the related information.
The Company recognised Rs. 99.7 million (Previous year Rs. 78.5 million) for provident fund contributions
and Rs. 71.9 million (previous year Rs. 54.9 million) for superannuation contribution in the Profit and Loss
Account.
(ii) Defined Benefit Plan:
The Company makes annual contributions to the Lupin Limited Employees' Group Gratuity cum Life
Assurance Scheme administered by the LIC, a funded defined benefit plan for qualifying employees. The
scheme provides for payment to vested employees as under:
a) On normal retirement/ early retirement/ withdrawal/resignation:
As per the provisions of Payment of Gratuity Act, 1972 with vesting period of 5 years of service.
b) On death in service:
As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.
The most recent actuarial valuation of plan assets and the present value of the defined benefit
obligation for gratuity were carried out as at March 31, 2010 by the LIC. The present value of the
defined benefit obligations and the related current service cost and past service cost, were measured
using the Projected Unit Credit Method.
110
The following table sets out the status of the gratuity plan and the amounts recognised in the Company's
financial statements as at the Balance Sheet date.
(Rs. in million)
Sr. Particulars Gratuity (Funded)
No. As on 31.03.2010 As on 31.03.2009
I) Reconciliation in present value of obligations (PVO)
- defined benefit obligation :
Current Service Cost 20.5 17.3
Interest Cost 14.9 14.6
Actuarial loss 34.0 22.5
Benefits paid (11.6) (50.2)
PVO at the beginning of the year 186.5 182.3
PVO at end of the year 244.3 186.5
II) Change in fair value of plan assets :
Expected return on plan assets 18.0 15.6
Actuarial gain/(loss) - -
Contributions by the employer 41.8 21.4
Fair value of plan assets at beginning of the year 165.1 178.3
Fair value of plan assets at end of the year 213.3 165.1
III) Reconciliation of PVO and fair value of plan assets:
PVO at end of year 244.3 186.5
Fair Value of planned assets at end of year 213.3 165.1
Funded status (31.0) (21.4)
Unrecognised actuarial gain/ (loss) - -
Net liability recognised in the balance sheet (31.0) (21.4)
IV) Net cost for the year ended March 31,2010 :
Current Service cost 20.5 17.3
Interest cost 14.9 14.6
Expected return on Plan assets (18.0) (15.6)
Actuarial losses 34.0 22.5
Net cost 51.4 38.8
V) Category of assets as at March 31, 2010:
Insurer Managed Funds (100%) (Fund is Managed by 213.3 165.1
LIC of India as per IRDA guidelines, category-wise
composition of the Plan assets is not available)
VI Actual return on the plan assets 18.0 15.6
VII) Assumption used in accounting for the gratuity plan:
Discount rate (%) 8.0 8.0
Salary escalation rate (%) 6.0 5.0
Expected rate of return on plan assets (%) 9.5 9.1

16. The Company enters into Forward Exchange Contracts for hedge purpose and not intended for trading or
speculation purposes, to establish the amount of currency in Indian Rupees required or available at the
settlement date of certain payables and receivables. The following were the outstanding Forward Exchange
Contracts entered into by the Company:
Currency Buy or Sell Cross Currency Amount in US$
March 31, 2010 March 31, 2009
US $ Buy Indian Rupees - 27494783
The year end foreign currency exposures that have not been hedged by a derivative instrument or
otherwise are as below:
a. Amount receivable in foreign currency on account of the following:
Particulars As on 31.03.2010 As on 31.03.2009 Foreign

Currency
Rs. in Amount in Rs. in Amount in
million Foreign million Foreign
Currency Currency
Export of goods
97.5 2373756 50.5 1437692 AUD
3.5 77650 15.2 298900 ACUD
368.3 6083897 292.3 4327571 EURO
80.1 1176617 34.8 479513 GBP
7211.4 160611202 5520.1 108835007 US $
Other receivable
- - Rs. 6673/- 200 SGD
0.5 15565040 0.7 20873608 UZS
- - 19.9 297452 EURO
38.0 845475 153.6 3028461 US$
1.5 1014909 0.4 261537 RUB
0.1 333320 0.8 2498750 KZT
- - 15.3 210537 GBP
1.5 234405 1.2 160840 RMB
0.2 32731 0.3 47087 UAH
0.2 64450467 - - VND
112
b. Amount payble in foreign currency on account of the following:

Currency
Currency Currency
Import of goods and services
919.3 20473490 470.1 9268942 US $
31.8 466704 5.2 71002 GBP
14.5 239424 - - EURO
3.7 90884 3.6 103595 AUD
0.3 667311 - - JPY
0.1 2174 1.4 30713 CHF
Rs. 2665/- 83 Rs. 16683/- 500 SGD
- - 0.1 18440 HKD
4.8 435374922 - - AZM
0.2 4302 - - CAD
0.2 115265 - - RUB
Secured and Unsecured loans payable
6807.4 151611475 1063.8 20974017 US $
- - 480.3 932950000 JPY
Interest accrued and not due on
Secured and Unsecured loans
0.7 15916 3.8 74620 US $
- - 2.3 4479828 JPY
Other payables
699.6 15581397 439.3 8660726 US $
1.8 1176911 2.3 1578283 RUB
0.7 10236 15.2 210228 GBP
0.2 709673 0.6 1736900 KZT
0.2 8118064 Rs.6931 193598 UZS
0.6 12768 2.0 38701 ACUD
0.2 32680 0.3 56151 UAH
29.2 481951 14.5 214213 EURO
0.1 10211726 0.5 37536255 AZM
0.8 17829 0.9 25347 AUD
- - 0.2 5285 CHF
- - 0.2 12017 SAR
Rs. 43076/- 6557 - - RMB
0.1 1550 - - CAD
0.2 101607000 - - VND
17. Derivative Financial Instruments:

The Company enters into forward and option contracts in order to hedge and manage its foreign currency
exposures towards future export earnings. Such derivative contracts (including contracts for a period
extending beyond the financial year 2010-11) which are in the nature of highly probable forecast
transactions are entered into by the Company for hedging purposes only, and are accordingly classified as
cash flow hedges.

The category wise break-up there of is as under:
Particulars As at As at
31.03.2010 31.03.2009
Amount US$ Amount US$
in million in million
Forward contracts 423.5 373.8
Option contracts 72.0 114.0
The Company, based on the Announcement of The Institute of Chartered Accountants of India
“Accounting for Derivatives” has accounted for derivative forward and option contracts at fair values,
considering the principles of recognition and measurement stated in Accounting Standard 30 (AS-30)
“Financial instruments: Recognition and Measurement” and the accounting policy followed by the
Company in this respect.
The changes in the fair value of the derivative instruments during the year ended 31st March 2010
aggregating Rs. 3078.0 million (previous year Rs. 2754.0 million debited) designated as effective have
been credited to the Cash Flow Hedge Reserve Account and Rs. 13.3 million is credited (previous year Rs.
34.0 million debited) to the Profit and Loss Account, being the ineffective portion thereof.
18. The aggregate amount of revenue expenditure incurred during the year on Research and Development and
shown in the respective heads of account is Rs. 2738.3 million (previous year Rs. 1905.0 million).
19. During the year, in accordance with the terms of issue, Foreign Currency Convertible Bonds aggregating US
$ 71.3 million (aggregate to date US $ 98.6 million) were converted into 5,816,742 equity shares (aggregate
to date 8,043,911 equity shares) of Rs. 10/- each, fully paid-up, at a predetermined price of Rs. 567.04 per
share, resulting in an increase in the paid-up share capital by Rs. 58.2 million (aggregate to date Rs. 80.4
million) and securities premium by Rs. 3240.1 million (aggregate to date Rs. 4480.7 million). Balance FCCBs
aggregating US $ 1.4 million were redeemed during the year and the redemption premium of Rs. 12.6
million (net of tax of Rs. 6.5 million) is adjusted against securities premium account. There were no Bonds
outstanding as on March 31, 2010.
20. The information regarding Micro Enterprises and Small Enterprises has been determined to the extent such
parties have been identified on the basis of information available with the Company. This has been relied
upon by the auditors.
Amount due to Micro Enterprises and Small Enterprises as on March 31, 2010 is Rs. 88.3 million, interest
Rs. nil (previous year Rs. 64.1 million, interest Rs. nil), interest paid during the year Rs. nil (previous year Rs. nil).
21. a) Lupin Pharmacare Limited, Lupin Herbal Limited and Novodigm Limited (wholly owned subsidiaries of
the Company) had filed petitions before the Honourable High Courts of Mumbai and Gujarat for
amalgamation with the Company, the appointed date being April 1, 2009.
b) Vide its order dated January 8, 2010, the High Court of Mumbai sanctioned the scheme of amalgamation
between Lupin Pharmacare Ltd., Lupin Herbal Ltd. and the Company subject to the order to be passed
by the High Court of Gujarat sanctioning the scheme of amalgamation between Novodigm Ltd. and the
Company. The order of the Gujarat High Court is awaited pending which, the results of these
subsidiaries have not been considered in these financial statements of the Company.
c) Based on the audited accounts of the aforesaid wholly-owned subsidiary companies, aggregate net loss
for the year ended March 31, 2010 is Rs. 280.5 million. While calculating commission payable to
Executive Chairman, this has been considered on a conservative basis.
114
22. Details of capacities, production, turnover and stocks :

A) Details of licenced and installed capacities:
Installed Installed
Classification Unit 31.03.2010 31.03.2009
Formulations :
Tablets No. in million 9646.0 5534.3
Liquids Kilo-litres 3840.0 3225.0
Capsules No. in million 2033.0 1402.5
Injections:
- Liquids Kilo-litres 42.0 42.0
- Vials No. in million 12.0 12.0
Creams and Powder M. T. 312.0 312.0
Inhalers No. in million 4.3 3.6
Bulk Drugs, Intermediates
and Chemicals M. T. 4856.7 4677.4
Notes :
i) In terms of Press Note No.4 (1994 series) dated October 25, 1994 issued by the Department of Industrial
Development, Ministry of Industry, Government of India and Notification no. S.O.137(E) dated March
01,1999 issued by the Department of Industrial Policy & Promotion, Ministry of Industry, Government of
India, industrial licencing has been abolished in respect of bulk drugs and formulations. Hence, there is no
registered / licenced capacities for these bulk drugs and formulations.
ii) Installed capacities, being a technical matter, are as certified by the management and relied upon by the auditors.
B) Details of production and purchases of finished goods:
(Value Rs. in million)
Production Purchase of goods
Year ended Year ended Year ended Year ended
31.03.2010 31.03.2009 31.03.2010 31.03.2009
Classification Unit Quantity Quantity Quantity Value Quantity Value
A) Formulations :
Tablets No. in million 7783.6 5912.9 2241.7 1834.6 1732.6 1529.9
Liquids Kilo-litres 2078.1 1381.0 5220.2 542.2 4917.7 481.4
Capsules No. in million 1013.2 808.2 432.8 513.3 398.0 493.9
Injections:
- Liquids Kilo-litres 88.2 92.5 87.2 99.3 65.7 90.5
- Vials No. in million 28.0 27.5 24.4 918.2 18.8 738.0
Creams and
Powder M. T. 406.8 371.1 552.2 115.9 496.8 135.1
Inhalers No. in million 2.5 1.9 312000 Nos. 6.5 13000 Nos. 0.3
B) Bulk Drugs, M.T. 2605.4 2113.8 - - - -
Intermediates
and Chemicals
C) Others 32.5 5.5
TOTAL 4062.5 3474.6
Notes:
i) Production includes goods manufactured for replacement and on loan licence basis by other parties but
excludes manufactured on job work basis for other parties and manufactured for research and
development activities.
ii) Production consists of saleable bulk drugs and intermediates. It excludes bulk drugs consumed for
manufacture of formulations.
iii) Production/Purchases of formulations includes samples.

C) Details of Turnover: (Value Rs. in million)

Year ended 31.03.2010 Year ended 31.03.2009
Classification Unit Quantity Value Quantity Value
A) Formulations :
Tablets No. in million 9615.6 15761.8 7513.4 12237.8
Liquids Kilo-litres 6722.8 5227.4 5827.0 3821.2
Capsules No. in million 1358.4 4919.0 1237.0 3825.0
Injections:
- Liquids Kilo-litres 167.2 246.1 161.9 244.7
- Vials No. in million 44.3 2280.3 39.9 1853.9
Creams and Powder M. T. 853.4 366.0 792.1 372.4
Inhalers No. in million 1.9 282.8 1.5 232.8
B) Bulk Drugs, Intermediates M. T. 2524.3 7536.7 2178.3 6754.7
and Chemicals
C) Others 40.5 76.9
TOTAL 36660.6 29419.4
Notes :
i) Above excludes items distributed under free schemes and samples.
ii) Turnover is net of trade discounts
D) Details of Stock: (Value Rs. in million)
Opening Stock Closing Stock
Classification Unit Quantity Value Quantity Value
01.04.2009 01.04.2009 31.03.2010 31.03.2010
A) Formulation :
Tablets No. in million 560.9 658.7 866.7 816.1
(538.5) (648.4) (560.9) (658.7)
Liquids Kilo-litres 784.1 156.0 995.9 213.7
(574.0) (126.3) (784.1) (156.0)
Capsules No. in million 122.8 171.3 160.7 208.2
(181.5) (326.2) (122.8) (171.3)
Injections:
- Liquids Kilo-litres 24.3 19.2 26.3 25.1
(37.1) (25.4) (24.3) (19.2)
- Vials No. in million 7.8 220.7 7.1 260.8
(8.6) (222.3) (7.8) (220.7)
Creams and Powder M. T. 171.7 56.1 206.1 52.7
(144.4) (55.3) (171.7) (56.1)
Inhalers No. in million 0.5 24.1 0.5 31.7
(0.5) (38.2) (0.5) (24.1)
B) Bulk Drugs Intermediates M. T. 167.4 1086.1 166.3 864.4
and Chemicals (233.3) (1013.6) (167.4) (1086.1)
C) Others 15.5 20.3
(31.9) (15.5)
TOTAL 2407.7 2493.0
(2487.6) (2407.7)
Notes :
i) Opening and Closing stock of formulations includes quantity of samples.
ii) Figures in brackets are for previous year.
116
23. Related Party Disclosures, as required by AS-18 are given below :

A. Relationships -
Category I : Subsidiaries and Associates of the Company :
Subsidiaries :
Lupin Pharmaceuticals Inc., USA
Kyowa Pharmaceutical Industry Co, Ltd., Japan
Amel Touhoku, Japan
Novodigm Ltd., India
Max Pharma Pty. Ltd., Australia (upto 31st May, 2009)
Lupin Pharmacare Ltd., India
Lupin Australia Pty Ltd., Australia
Lupin Holdings B.V., Netherlands
Lupin Herbal Ltd., India
Lupin Atlantis Holdings SA, Switzerland
Hormosan Pharma GmbH, Germany (from 25th July 2008)
Pharma Dynamics(Proprietary) Ltd., South Africa
Multicare Pharmaceuticals Philippines Inc., Philippines (from 26th March 2009)
Lupin (Europe) Ltd., UK (from 5th June 2009)
Lupin Pharma Canada Ltd., Canada (from 18th June 2009)
Associates :
Generic Health Pty Ltd., Australia (from 20th August 2008)
Shinko Yakuhin, Japan (upto 10th March 2010)
Category II: Key Management Personnel
Dr. D. B. Gupta Chairman
Dr. K. K. Sharma Managing Director
Mrs. M. D. Gupta Executive Director
Mr. Nilesh Gupta Executive Director (from 8th October 2008)
Category III: Others (Relatives of Key Management Personnel and Entities in which the Key
Management Personnel have control or significant influence)
Mrs. Vinita Gupta
Mr. Nilesh Gupta (upto 7th October 2008)
Dr. Anuja Gupta
Mrs. Kavita Gupta Sabharwal
Dr. Richa Gupta
Mrs. Pushpa Khandelwal
Adhyatma Investments Pvt. Limited
Bharat Steel Fabrication and Engineering Works
Concept Pharmaceuticals Limited
D. B. Gupta (HUF)
Enzal Chemicals (India) Limited
Lupin Human Welfare and Research Foundation
Lupin International Pvt. Limited
Lupin Investments Pvt. Limited
Lupin Marketing Pvt. Limited
Matashree Gomati Devi Jana Seva Nidhi
Novamed Pharmaceuticals Pvt. Limited
Polynova Industries Limited
Pranik Landmark Associates (upto 3rd March 2010)
Rahas Investments Pvt. Limited
S N Pharma
Synchem Chemicals (I) Pvt. Limited
Zyma Laboratories Limited

B. Transactions with the related parties. (Rs. in million unless other wise stated)
Sr. Transactions Subsidiaries Associates Key Others Total
No. Management
Personnel
1 Sale of Goods 13,288.6 44.6 - 13.6 13,346.8
(9,788.4) (33.9) (-) (3.2) (9,825.5)
2 Miscellaneous income on account - - - - -
of sale of by-products (-) (-) (-) (2.9) (2.9)
3 Rent Expenses - - - 103.6 103.6
(-) (-) (-) (98.7) (98.7)
4 Business Conducting Expenses - - - Rs.6,000/- Rs.6,000/-
(-) (-) (-) (Rs.6,000/-) (Rs.6,000/-)
5 Agency Commission Expenses - 15.2 - 20.1 35.3
(-) (-) (-) (14.5) (14.5)
6 Expenses Recovered/Rent Received 37.1 - - 1.6 38.7
(5.5) (-) (-) (2.0) (7.5)
7 Remuneration Paid - - 190.3 - 190.3
(-) (-) (127.2) (10.2) (137.4)
8 Purchase of Goods/Materials 224.9 - - 31.2 256.1
(231.2) (-) (-) (31.8) (263.0)
9 Investments during the year 2,502.0 - - - 2,502.0
(1,834.4) (-) (-) (-) (1,834.4)
10 Donations Paid - - - 35.0 35.0
(-) (-) (-) (21.7) (21.7)
11 Dividend Paid - - 15.9 509.5 525.4
(-) (-) (11.7) (408.9) (420.6)
12 Services Received 994.7 - - - 994.7
(646.1) (-) (-) (-) (646.1)
13 Loans/Advances given 1,053.6 - - - 1,053.6
(905.9) (-) (-) (-) (905.9)
14 Sale of Fixed Assets 11.2 - - 9.0 20.2
(3.6) (-) (-) (-) (3.6)
15 Expenses Reimbursed 61.8 2.6 - 11.6 76.0
(47.3) (-) (-) (11.0) (58.3)
16 Sale of other assets 21.7 - - - 21.7
(-) (-) (-) (-) (-)
17 Guarantees given against standby 57.4 - - - 57.4
Letter of Credit issued by Company's (239.0) (-) (-) (-) (239.0)
bankers to the bankers of wholly
owned subsidiary companies.
18 Letter of Comfort issued by the 195.1 - - - 195.1
Company to the bankers of (425.3) (-) (-) (-) (425.3)
subsidiary companies.
19 Corporate guarantee issued by 40.5 - - - 40.5
the Company to the bankers of (-) (-) (-) (-) (-)
wholly owned subsidiary companies.
118
Out of the above items transactions in excess of 10% of the total related party transactions are as under :
(Rs. in million unless other wise stated)

Sr. Transactions Related party For the year For the year
No. relation ended 31.03.2010 ended 31.03.2009
1 Sale of Goods
Lupin Pharmaceuticals Inc., USA Subsidiary Company 13,051.9 9,636.7
2 Sale of Fixed Assets
Novodigm Ltd. Subsidiary Company 0.3 2.5
Lupin Pharmacare Ltd. Subsidiary Company 8.3 1.1
Concept Pharmaceuticals Ltd. Others 9.0 -
Lupin (Europe) Ltd., UK Subsidiary Company 2.6 -
3 Sales of by products
Synchem Chemicals (I) Pvt. Ltd. Others - 2.9
4 Sales of other assets
Lupin (Europe) Ltd., UK Subsidiary Company 21.7 -
5 Rent Expenses
Lupin Investments Pvt. Ltd. Others 83.0 78.9
Bharat Steel Fabrications and
Engineering Works Others 11.9 11.3
6 Business Conducting Expenses
Synchem Chemicals (I) Pvt. Ltd. Others Rs.6,000/- Rs.6,000/-
7 Agency Commission Expenses
Generic Health Pty Ltd., Australia Associate 15.2 -
S N Pharma Others 20.1 14.5
8 Expenses Recovered / Rent Received
Lupin Atlantis Holding SA Subsidiary Company 29.7 -
Polynova Industries Ltd. Others 1.0 0.8
Pranik Landmark Associates Others 0.6 1.2
9 Remunerations Paid
Dr. D. B. Gupta Key Management Personnel 91.1 66.7
Dr. K. K. Sharma Key Management Personnel 64.0 43.6
Mr. Nilesh Gupta Key Management Personnel 32.8 14.4
Mr. Nilesh Gupta Others - 10.2
10 Purchase of Goods/ Material
Enzal Chemicals (India) Ltd. Others 31.2 31.8
11 Investments during the year
Lupin Holdings B. V. Subsidiary Company 2,482.0 1,834.4
12 Donations Paid
Lupin Human Welfare and
Research Foundation Others 32.3 19.2


13 Dividend Paid
Lupin Marketing Pvt. Ltd. Others 101.0 80.8
Rahas Investments Pvt. Ltd. Others 114.2 91.4
Visiomed (I) Pvt. Ltd. Others 108.8 87.0
Zyma Laboratories Ltd. Others 137.4 109.9
14 Services Received
Lupin Pharmaceuticals Inc.,USA Subsidiary Company 849.6 645.9
Lupin Europe Ltd., UK Subsidiary Company 144.7 -
15 Expenses Reimbursed
Lupin Pharmaceuticals Inc., USA Subsidiary Company 13.8 29.8
Lupin Australia Pty Ltd. Subsidiary Company 28.1 17.5
Novodigm Ltd. Subsidiary Company 13.0 -
Synchem Chemicals (I) Pvt. Ltd. Others 11.0 10.0
16 Loan and advance given
Lupin Pharmacare Ltd. Subsidiary Company 1,028.6 851.0
Novodigm Ltd. Subsidiary Company - 35.0
17 Guarantees given against standby
Letter of Credit issued by Company's
bankers to the bankers of wholly
owned subsidiary companies
Max Pharma Pty Ltd. Subsidiary Company (70.2) 70.2
Hormosan Pharma GmbH Subsidiary Company 12.8 168.8
18 Letter of Comfort issued by the
Company to the bankers of
Multicare Pharmaceuticals, Philippines Subsidiary Company 99.4 -
19 Corporate guarantee issued by the
Company to the bankers of
Hormosan Pharma GmbH Subsidiary Company 30.3 -
Lupin Europe Ltd., UK Subsidiary Company 10.2 -
120
C. Balances due from/to the related parties. (Rs. in million unless other wise stated)
Sr. Transactions Subsidiaries Associates Key Others Total
No. Management
Personnel
1 Investments 7,230.1 - - - 7,230.1
(4,728.1) (-) (-) (-) (4,728.1)
2 Deposit paid under Leave and Licence - - - 71.7 71.7
arrangement for Office Premises (-) (-) (-) (71.7) (71.7)
3 Deposit given for Business - - - 180.0 180.0
Conducting Arrangement (-) (-) (-) (180.0) (180.0)
4 Debtors 5,476.6 32.6 - 10.5 5,519.7
(3,784.0) (9.9) (-) (-) (3,793.9)
5 Creditors 551.8 5.4 - 3.7 560.9
(416.0) (-) (-) (1.8) (417.8)
6 Commission Payable - - 70.0 - 70.0
(-) (-) (47.3) (1.1) (48.4)
7 Expenses payable 3.3 - - - 3.3
(3.6) (-) (-) (-) (3.6)
8 Expenses receivable 29.7 - - - 29.7
(-) (-) (-) (-) (-)
9 Loans and advances 2,259.3 - - - 2,259.3
(1,225.6) (-) (-) (-) (1,225.6)
10 Guarantees given against standby 181.6 - - - 181.6
Letter of Credit issued by Company's (239.0) (-) (-) (-) (239.0)
bankers to the bankers of
11 Letter of Comfort issued by the 620.4 - - - 620.4
Company to the bankers of (425.3) (-) (-) (-) (425.3)
12 Corporate guarantee issued by the 40.5 - - - 40.5
Company to the bankers of (-) (-) (-) (-) (-)
Notes:
i) Figures in brackets are for previous year.
ii) Related party relationship is as identified by the Company and relied upon by the Auditors.
24. Excise duty (Schedule 16) includes Rs. 22.0 million being net impact of the excise duty provision on opening and
closing stock.
25. Previous year figures have been regrouped wherever necessary to correspond with the figures of the current year.
Signatures to Schedule 1 to 18
For Lupin Limited
Dr. Desh Bandhu Gupta Dr. Kamal K. Sharma M. D. Gupta

Chairman Managing Director Executive Director

Balance Sheet Abstract and Company's
General Business Profile
(Submitted in terms of part IV of Schedule VI of the Companies Act, 1956)
(a) Registration Details

Registration No./ CIN No. L24100MH1983PLC029442 State Code 11
Balance Sheet Date 31.03.2010
(b) Capital Raised during the Year (Amount in Rupees Thousands)
Public Issue NIL Rights Issue 61,243
(ESOPs & FCCB)
Bonus Issue NIL Private Placement NIL
(c) Position of Mobilisation and Deployment of funds (Amount in Rupees Thousands)

Total Liabilities 43,706,130 Total Assets 43,706,130
Sources of Funds
Paid-Up Capital 889,438 Reserves and Surplus 24,416,011
Deferred Tax 1,582,534 Secured Loans 7,040,027
Unsecured Loans 2,028,014
Application of Funds
Net Fixed Assets 13,322,248 Investments 7,240,839
Net Current Assets 15,392,937 Misc Expenditure -
Accumulated Losses -
(d) Performance of Company (Amount in Rupees Thousands)

Turnover 36,400,830 Total Expenditure 30,039,546
Profit Before Tax 7,086,612 Profit After Tax 6,489,274
Earning per Equity Share in Rs.(Basic) 75.38 Equity Dividend Rate % 135
(e) Generic Names of Three Principal Products of Company

(As per monetary terms)
Product Description Item Code No.(As per ITC Code)
i) Cefixime 30049099
ii) Lisinopril 30049071
iii)Cefaclor 29419090
For Lupin Limited

122
Auditors' Report
To the Board of Directors of Lupin Limited
1. We have audited the attached Consolidated Balance Sheet of Lupin Limited ("the Company"), and its
subsidiaries, (the Company and its subsidiaries constitute "the Group") as at 31st March, 2010, the
Consolidated Profit and Loss Account and the Consolidated Cash Flow Statement of the Group for the year
ended on that date, both annexed thereto. The Consolidated Financial Statements include investments in
associates accounted on the equity method in accordance with Accounting Standard 23 (Accounting for
Investments in Associates in Consolidated Financial Statements) as notified under the Companies
(Accounting Standards) Rules, 2006. These financial statements are the responsibility of the Company's
management and have been prepared on the basis of the separate financial statements and other
information regarding components. Our responsibility is to express an opinion on these Consolidated
Financial Statements based on our audit.
2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit includes examining, on a test basis,
evidence supporting the amounts and the disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the significant estimates made by the management, as well
as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. We did not audit the financial statements of 8 subsidiaries, whose financial statements reflect total assets
of Rs. 7520.2 million as at 31st March, 2010, total revenues of Rs. 7823.7 million and net cash inflows
amounting to Rs. 228.6 million for the year ended on that date as considered in the Consolidated Financial
Statements. These financial statements have been audited by other auditors whose reports have been
furnished to us and our opinion in so far as it relates to the amounts included in respect of these
subsidiaries is based solely on the reports of the other auditors.
4. We report that the Consolidated Financial Statements have been prepared by the Company in accordance
with the requirements of Accounting Standard 21 (Consolidated Financial Statements), Accounting
Standard 23 (Accounting for Investment in Associates in Consolidated Financial Statements) as notified
under the Companies (Accounting Standards) Rules, 2006.
5. Based on our audit and on consideration of the separate audit reports on the individual financial
statements of the Company, and the aforesaid subsidiaries and associates, and to the best of our
information and according to the explanations given to us, in our opinion, the Consolidated Financial
Statements give a true and fair view in conformity with the accounting principles generally accepted
in India:
(i) in the case of the Consolidated Balance Sheet, of the state of affairs of the Group as at 31st March, 2010;
(ii) in the case of the Consolidated Profit and Loss Account, of the profit of the Group for the year ended on
that date and
(iii) in the case of the Consolidated Cash Flow Statement, of the cash flows of the Group for the year ended
on that date.

(Registration No. 117366W)
M. S. Dharmadhikari
Place : Mumbai Partner

Consolidated Balance Sheet
As at March 31, 2010
Schedules As at As at
31.03.2010 31.03.2009
I. SOURCES OF FUNDS
Shareholders' Funds
Share Capital 1 889.4 828.2
Reserves and Surplus 2 24,788.9 13,420.0
25,678.3 14,248.2
Minority Interest 254.9 142.5
Loan Funds
Secured Loans 3 8,722.4 7,569.2
Unsecured Loans 4 2,676.1 4,663.5
11,398.5 12,232.7
Deferred Tax Liabilities (Net) 1,630.4 1,387.2
[Refer note no. 5 (ii) (a) of Schedule 18(B)]
TOTAL 38,962.1 28,010.6
II. APPLICATION OF FUNDS
Fixed Assets 5
Gross Block 22,937.1 18,200.3
Less: Depreciation and Amortisation 7,072.2 6,188.3
Net Block 15,864.9 12,012.0
19,443.6 14,251.7
Goodwill On Consolidation 3,196.8 3,173.7
[Refer note no.16 (b) of Schedule 18(B)]
Investments 6 264.3 215.6
Deferred Tax Assets (Net) 195.4 222.8
[Refer note no. 5 (ii) (b) of Schedule 18(B)]
Current Assets, Loans and Advances
Inventories 7 9,714.9 9,571.6
Sundry Debtors 8 11,265.7 9,179.7
Cash and Bank Balances 9 2,015.3 777.7
Loans and Advances 10 4,758.6 2,779.7
27,754.5 22,308.7
Less: Current Liabilities and Provisions 11
Current Liabilities 9,649.4 10,334.8
Provisions 2,243.1 1,827.1
11,892.5 12,161.9
Net Current Assets 15,862.0 10,146.8
TOTAL 38,962.1 28,010.6

124
Consolidated Profit and Loss Account
Schedules Current Previous

31.03.2010 31.03.2009
INCOME
Sales (Gross) 47,678.4 38,237.8
Less : Excise Duty 273.2 479.0
Sales (Net) 47,405.2 37,758.8
Other Operating Income 12 1,302.7 907.6
Other Income 13 142.0 46.1
48,849.9 38,712.5
EXPENDITURE
Cost of Materials 14 19,694.2 16,043.1
Personnel Expenses 15 5,871.5 4,871.3
Manufacturing and Other Expenses 16 13,303.3 10,359.2
Interest and Finance Charges 17 384.9 498.6
Depreciation and Amortisation 1,239.1 879.9
(Refer note no. 5 of Schedule 5) 40,493.0 32,652.1
Profit before Tax 8,356.9 6,060.4
Provision for Taxation
- Current Tax (including Wealth Tax) 1,905.0 955.4
Less: MAT Credit Entitlement (795.2) (228.4)
- Deferred Tax 250.4 106.2
- Fringe Benefit Tax - 149.8
Net Profit before Minority Interest and Share of Loss in Associates 6,996.7 5,077.4
Less : Minority Interest 111.6 28.6
Less : Share of Loss in Associates 68.8 33.4
Net Profit 6,816.3 5,015.4
Add : Surplus brought forward from previous year 6,688.6 4,407.8
Amount Available for Appropriation 13,504.9 9,423.2
APPROPRIATIONS
- Transfer to General Reserve 1,500.0 1,500.0
- Dividend on Ordinary Shares by an Overseas Subsidiary 36.6 21.2
- Proposed Dividend on Equity Shares 1,224.7 1,035.3
- Dividend on Equity Shares for previous year 10.8 0.1
- Corporate Tax on Dividend 211.0 178.0
Balance Carried to Balance Sheet 10,521.8 6,688.6
13,504.9 9,423.2
Earnings Per Share (in Rs.) [Refer note no. 7 of Schedule 18(B)]
- Basic 79.18 60.84
- Diluted 77.81 60.22
Face value of Equity Shares (in Rs.) 10.00 10.00


Consolidated Cash Flow Statement
Current Previous
31.03.2010 31.03.2009
A. Cash Flow from Operating Activities
Net Profit before Tax and Minority Interest and Share of Loss in Associates 8,356.9 6,060.4
Adjustments for:
Depreciation and Amortisation 1,239.1 879.9
Loss on sale/discard of Fixed Assets (net) 86.1 37.3
Interest and Finance Charges 384.9 498.6
Profit on sale of Current Investments - Non trade - (0.4)
Profit on sale of Long Term Investments - Trade (1.8) -
Interest on Long Term Investments - Non Trade - (0.2)
Interest on Deposits with Banks (2.7) (37.1)
[31.03.2010 Rs. 4,410/- , 31.03.2009 Rs. 33,820/-]
Dividend on Long Term Investments - Non Trade (0.8) (0.6)
Dividend on Current Investments - Non Trade - (1.7)
Provision for doubtful debts 34.0 24.1
Employee share based payment cost 4.7 0.7
Profit on sale of Subsidiary [Refer note no. 22 of Schedule 18(B)] (90.9) -
Provision for Diminution in value of Long Term Investments - 1.5
Provision for Diminution in value of Long Term Investments written back - (0.5)
Exchange difference on transactions / translation (net) (252.2) 29.2
Net unrealised exchange difference during the year (Refer note 1 below) 42.9 11.3
Operating Profit before Working Capital Changes 9,800.2 7,502.5
Adjustments for:
Trade and other Receivables (3,113.4) (2,012.2)
Inventories (279.7) (1,283.4)
Trade Payables 2,026.9 1,556.7
Cash Generated from Operations 8,434.0 5,763.6
Direct Taxes paid (net) (1,672.4) (916.1)
Fringe Benefit Tax paid 2.5 (152.1)
Net Cash Generated from Operating Activities 6,764.1 4,695.4
B. Cash Flow from Investing Activities
Additions to Fixed Assets/Capital Work-in-Progress/Intangible Assets (6,708.5) (3,399.1)
Sale of Fixed Assets 16.8 12.1
Purchase of Investments (29.3) (1,534.3)
Sale of Investments 2.0 1,351.5
Loans given to an associate (83.8) -
Consideration for acquisition of subsidiary companies - (1,566.0)
[31.03.2010 Rs. 4,410/- , 31.03.2009 Rs. 33,820/-]
Dividend on Long Term Investments - Non Trade 0.8 0.6
Interest on Deposits with Banks 2.7 37.1
Net Cash used in Investing Activities (6,799.3) (5,096.2)
126
Current Previous
31.03.2010 31.03.2009
C. Cash Flow from Financing Activities
Proceeds from / (Repayments) of Borrowings (net) 2,972.7 (246.4)
Repayments of Foreign Currency Convertible Bonds (64.7) -
Premium on repayment of Foreign Currency Convertible Bonds (12.6) -
Issue of Equity Shares (ESOPs) 3.0 1.7
Securities Premium Received (net) (ESOPs) 104.4 51.9
Interest and finance charges paid (net) (379.2) (496.1)
Dividend paid (1,081.0) (841.0)
Corporate Dividend Tax paid (181.3) (141.6)
Net Cash Generated / (used in) from Financing Activities 1,361.3 (1,671.5)
Net increase / (decrease) in Cash and Cash Equivalents 1,326.1 (2,072.3)
Cash and Cash equivalents as at the beginning of the year 680.8 2,706.6
Cash and Cash equivalents taken over of subsidiary companies
on acquisition - 46.5
Cash and Cash equivalents transferred on sale of investment in
subsidiary company [Refer note no. 22 of Schedule 18(B)] (24.6) -
Cash and Cash equivalents as at the end of the year 1,982.3 680.8
Notes :
1. Cash and Cash equivalents include
Cash and Bank Balances (Refer Schedule 9) 2,015.3 777.7
Unrealised (gain) on foreign currency cash and cash equivalents (33.0) (96.9)
Total Cash and Cash equivalents 1,982.3 680.8
Net unrealised exchange difference during the year debited to
Profit and Loss Account 42.9 11.3
2. Rs. 6.7 million (previous year Rs. 3.8 million) being deposits under lien lodged with banks as margin money
not readily available to the Company.
3. The above Cash Flow Statement has been prepared under the 'Indirect Method' as set out in the Accounting
Standard 3 (AS-3), "Cash Flow Statement".
4. Previous year figures have been regrouped wherever necessary.



Schedules Forming Part of the
Consolidated Balance Sheet
As at As at
31.03.2010 31.03.2009
SCHEDULE 1 - SHARE CAPITAL
Authorised :
100,000,000 (previous year 100,000,000) Equity Shares of Rs. 10/- each 1,000.0 1,000.0
TOTAL 1,000.0 1,000.0
Issued, Subscribed and Paid-up
88,943,833 (previous year 82,819,550) Equity Shares of Rs. 10/- each
fully paid-up 889.4 828.2
TOTAL 889.4 828.2
Notes :
Of the above equity shares-
i) 37,311,048 (previous year 37,311,048) Equity Shares of Rs. 10/- each were allotted as fully paid-up without
payment being received in cash, pursuant to the Scheme of Amalgamation with erstwhile Lupin
Laboratories Limited.
ii) 40,152,494 (previous year 40,152,494) Equity shares of Rs. 10/- each have been allotted as fully paid-up bonus
shares by way of capitalisation of General Reserve.
iii) 606,294 (previous year 298,753) Equity Shares of Rs. 10/- each, fully paid-up have been allotted pursuant to Lupin
Employees Stock Option Plans. [Refer note no. 10 (a) of Schedule 18(B)].
Particulars of options on unissued share capital [Refer note no. 10(a) of Schedule 18(B)].
iv) 8,043,911 (previous year 2,227,169) Equity Shares of Rs. 10/- each, fully paid-up have been allotted on conversion
of Foreign Currency Convertible Bonds in accordance with the terms of the issue.
[Refer note no. 15 of Schedule 18(B)].
128
As at As at
31.03.2010 31.03.2009
SCHEDULE 2 - RESERVES AND SURPLUS
Capital Reserve
- Investment Subsidies from Central Government
- Investment Subsidies from State Government
- On restructuring of capital of the Company under the Scheme
of Amalgamation
263.9 263.9
Capital Redemption Reserve

Securities Premium Account

Add: Received during the year* 3,344.6 370.0
Less: Premium on redemption of Foreign Currency Convertible 12.6 -
Bonds (net of tax of Rs. 6.5 million, previous year Rs. nil)
5,063.4 1,731.4
General Reserve
Add: Transferred from Profit and Loss Account 1,500.0 1,500.0
8,515.4 7,015.4
Amalgamation Reserve
Cash Flow Hedge Reserve

Balance as per last Balance Sheet (2,911.6) (145.6)
Add: Credited / (Debited) during the year (net) 3,087.4 (2,766.0)
(net of tax of Rs. 4.8 million, previous year Rs. nil)
(Refer note no. 13 (i) of Schedule 18(B)) 175.8 (2,911.6)
Foreign Currency Translation Reserve

Less: (Debited)/Credited during the year (net) (388.4) 58.5
[Refer note no. 17 (a) of Schedule 18 (B)] (201.2) 187.2

Balance at the end of the year (A) 9.0 2.9
Deferred Employees Stock Options Cost
Less: Amortisation during the year 4.7 0.7
Balance at the end of the year (B) 3.6 2.2
(A-B) 5.4 0.7
Surplus in Profit and Loss Account 10,521.8 6,688.6

TOTAL 24,788.9 13,420.0
* Represents amount received on allotment of 307,541 (previous year 167,586) Equity Shares of Rs. 10/- each, pursuant to
"Lupin Employees Stock Option Plans" and 5,816,742 (previous year 571,069) Equity Shares of Rs. 10/- each on
conversion of Foreign Currency Convertible Bonds in accordance with the terms of the issue. [Refer notes no. 10 (a) and
15 of Schedule 18(B)].

As at As at
31.03.2010 31.03.2009
Notes Rs. in million Rs. in million
SCHEDULE 3 - SECURED LOANS
Term Loans 1
From Banks
- Foreign Currency Loans 1,164.4 1,444.9
- Rupee Loans 22.4 27.3
1,186.8 1,472.2
Vehicle Loans 2 - 1.4
Working Capital Loans from Banks 3 7,404.9 6,000.7
Finance Lease Obligations 4 130.7 94.9
[Refer Note no. 9 (b) of Schedule 18(B)] TOTAL 8,722.4 7,569.2
Notes :
1. a. Term loans of a subsidiary company located at Japan aggregating Rs. 1,089.5 million (previous year Rs. 1,334.1 million) are secured by first legal /
equitable mortgage on immovable assets of the said subsidiary.
b. Term loans from Banks of an Indian subsidiary company aggregating Rs. 33.8 million (previous year Rs. 61.5 million) are secured by hypothecation of
Fixed Assets and Equitable mortgage on Factory Land and Building of the said subsidiary at Dabhasha and are further secured by letter of comfort
provided by the Company.
c. Term loans of a subsidiary company located at Germany aggregating Rs. 63.5 million (Previous year Rs. 76.6 million) are secured against mortgage
of immovable property of the said subsidiary.
2. Vehicle loans were secured by charge on the concerned vehicles purchased by the subsidiary company.
3. Working capital loans from Banks comprises of :
a. Cash Credit, Short Term Loans, Packing Credit, Post Shipment Credit, Bills Discounted and Overseas Import Credit availed by the Company
aggregating Rs. 7,040.0 million (previous year Rs. 5,651.2 million) and are secured by hypothecation of inventories and book debts and movable
current assets at godowns, depots, in course of transit or on high seas and a second charge on immovable properties and movable assets of the
Company both present and future situated at (a) Aurangabad, Pune and Tarapur in Maharashtra, (b) Ankleshwar in Gujarat, ( c) Mandideep in
Madhya Pradesh, (d) Verna in Goa and (e) Bari Brahmana in Jammu and Kashmir.
b. Rs.199.2 million (previous year Rs184.7 million) being Cash Credit, Packing Credit and Post Shipment Credit availed by an Indian subsidiary
company are secured by hypothecation of inventories and book debts of the said subsidiary.
c. Rs. nil (previous year Rs. 32.0 million ) being working capital loans availed by a subsidiary company located at Australia comprises of multiple
advance and overdraft facilities which were secured by Fixed and Floating charge over all assets of the said subsidiary and were further guaranteed
by the Company by way of standby letter of credit issued by the Company's bankers.
d. Rs. 14.5 million (previous year Rs. nil) being working capital loans availed by a subsidiary company located at Philippines are secured by way of charge
against receivables from a distributor, pledge of finished goods and by letter of comfort from the Company.
e. Rs. 151.2 million (previous year Rs. 132.8 million) being cash credit facility availed by a subsidiary company located at Germany is guaranteed by the
Company by way of standby letter of credit issued by the Company's bankers under working capital facility and it is secured as detailed in note 3 (a) above.
4. Finance lease obligations to Financial Institutions represent present value of minimum lease rentals payable and are secured by hypothecation of
concerned plant, machinery and equipments and vehicles.
5. Working Capital Loans from Banks include Foreign Currency Loans of Rs. 5,378.0 million (previous year Rs. 3,093.2 million).
As at As at
31.03.2010 31.03.2009
SCHEDULE 4 - UNSECURED LOANS
Bonds 423.2 368.7
Foreign Currency Term Loans from Banks 1,174.5 496.9
Foreign Currency Convertible Bonds - 3,363.1
[Refer Note no. 15 of Schedule 18(B)]
Working Capital Loans from Banks (Refer note 1 below) 645.4 -
Other Loans:
a) Sales Tax Deferment Loan - Government of Maharashtra 63.0 64.8
b) Loans from Council for Scientific and Industrial Research, 370.0 370.0
Department of Science and Technology, Government of India
TOTAL 2,676.1 4,663.5
Notes :
1. Working Capital Loans from Banks include Foreign currency loans of
Rs. 645.4 million (previous year Rs. nil)
2. Amounts due within a year
a) Bonds 240.5 111.2
b) Term Loans from Banks 241.2 267.4
c) Other loans (Sales Tax Deferment Loan - Government of Maharashtra) 2.0 0.2
130
SCHEDULE 5 - FIXED ASSETS (Rs. in million)
131
Particulars Gross Block Depreciation and Amortisation Net Block
As at Additions on Additions Deductions/ As at Up to Additions on For the Deductions/ Upto As at As at
April 01, acquisition of Adjustments March 31, March 31, acquistion of Year Adjustments March 31, March 31, March 31,
2009 subsidiary 2010 2009 subsidiary 2010 2010 2009
companies companies
A) Owned Assets
Free Hold Land 789.3 - 24.5 49.8 764.0 - - - - - 764.0 789.3
Lease Hold Land 235.1 - 166.4 - 401.5 20.8 - 6.1 - 26.9* 374.6 214.3
Buildings 4,084.0 - 721.9 65.3 4,740.6 1,032.6 - 133.6 37.8 1,128.4 3,612.2 3,051.4
Plant , Machinery and Equipments 12,097.4 - 2,401.2 390.4 14,108.2 4,603.5 - 828.1 268.5 5,163.1 8,945.1 7,493.9
Furniture and Fixtures 329.0 - 110.8 5.5 434.3 147.0 - 30.3 4.2 173.1 261.2 182.0
Vehicles 52.4 - 31.2 9.7 73.9 26.5 - 7.4 17.3 16.6 57.3 25.9
Intangible Assets - Acquired :
- Goodwill 10.0 - - 10.0 - 10.0 - - 10.0 - - -
- Computer softwares 100.0 - 39.9 3.5 136.4 89.7 - 12.3 2.7 99.3 37.1 10.3
- Trademarks and Licences 10.1 - - - 10.1 8.8 - 0.5 0.1 9.2 0.9 1.3
- Dossiers and Marketing Rights 365.7 - 1,919.7 193.8 2,091.6 220.3 - 200.5 26.1 394.7 1,696.9 145.4
B) Assets Under Finance Lease
Plant , Machinery and Equipment 85.6 - 59.2 9.2 135.6 11.4 - 16.0 1.7 25.7 109.9 74.2
Vehicles 41.7 - 1.4 2.2 40.9 17.7 - 8.3 (9.2) 35.2 5.7 24.0
TOTAL 18,200.3 - 5,476.2 739.4 22,937.1 6,188.3 - 1,243.1 359.2 7,072.2 15,864.9 12,012.0
Previous Year 14,858.8 487.5 2,213.3 (640.7) 18,200.3 4,697.5 263.6 883.4 (343.8) 6,188.3 12,012.0
TOTAL 19,443.6 14,251.7
* Amounts written off in respect of leasehold land for the period of lease which (Rs.in million)
has expired. Note no. 4 (Contd.) 2009-10 2008-09
Notes : Particulars Gross Block Depreciation Gross Block Depreciation
1. Cost of Buildings includes cost of shares in co-operative societies of Rs. 1,000/- Free Hold Land 49.8 - (153.0) -
(previous year Rs. 1,000/-). Buildings 59.6 36.6 (155.0) (81.9)
Plant, Machinery and Equipments 145.5 112.2 (435.7) (334.3)
2. Capital work-in-progress includes capital advances paid, machinery under Furniture and Fixtures 3.5 3.5 (9.6) (8.4)
installation/in transit and construction and erection materials (including those Vehicles 1.0 0.9 (0.4) (0.4)
lying with contractors) Manufacturing Knowhow/Product Marketing Rights and Intangible Assets
pre-operative expenses. [ Refer Note no. 4 (a) and (b) in Schedule 18(B)] -Goodwill - - 1.1 0.4
3. Additions to Fixed Assets include items of fixed assets aggregating Rs. 741.9 -Computer software 3.4 2.5 (7.5) (5.3)
-Trademark and Licences # 0.1 (6.2) (5.8)
million (previous year Rs. 458.1 million) located at Research and Development -Dossiers/Marketing rights 186.1 24.6 (40.9) (34.6)
centres of the Company. Plant, Machinery and Equipments
4. Adjustments from the Gross Block and Depreciation and Amortisation includes under finance lease 11.4 2.6 (8.9) (1.2)
adjustments on account of exchange loss / (gain) (net) on translation into INR Total 460.3 183.0 (816.1) (471.5)
in respect of the non-integral foreign operations of the group. # Rs. 2,591/-
5. Depreciation for the year includes Rs. 4.0 million (previous year Rs. 3.5 million) being depreciation

capitalised. [Refer Note no. 4(b) in Schedule 18(B)]
Face As at As at
Number Value 31.03.2010 31.03.2009
SCHEDULE 6 - INVESTMENTS
(At cost / carrying amount unless otherwise stated)
Long Term Investments
1. In Government Securities - Unquoted (Non Trade)
National Savings Certificates
(31.03.2010 Rs. 16,000/- , 31.03.2009 Rs. 16,000/- )
[Deposited with Government Authorities
31.03.2010 Rs. 16,000/- , 31.03.2009 Rs. 16,000/-]
2. In Shares
a) In Associate Companies - Unquoted (Trade)
- Shinko Yakuhin, Japan - JPY - 2.1
(92) 50,000
Less: Share of loss - 2.1
- -
- Generic Health Pty Ltd. Australia 30,199,214 AUD 326.6 204.5
[Refer note no. 24 Schedule 18(B)] (18,667,967) 1
Less: Share of loss 102.2 33.4
224.4 171.1
b) In Others - Unquoted (Trade)
- Biotech Consortium India Ltd. 50,000 Rs. 0.5 0.5
(50,000) 10
- Bharuch Enviro Infrastructure Ltd. 4,410 Rs.
(31.03.2010 Rs. 44,100/- , 31.03.2009 Rs. 44,100/-) (4,410) 10
- Bharuch Eco-Acqua Infrastructure Ltd. 924,675 Rs. 9.2 9.2
(924,675) 10
- Tarapur Environment Protection Society 9,248 Rs. 0.9 0.9
(9,248) 10
- Enviro Infrastructure Co. Ltd. 100,000 Rs. 1.0 1.0
(100,000) 10
- Japan Medical Products Exporter's
Association, Japan 10 JPY
(31.03.2010 Rs. 24,045/- , 31.03.2009 Rs. 25,745/-) (10) 5,000
- The Pharmaceuticals and Medical 30 JPY 0.1 0.1
Devices Agency, Japan (30) 10,000
- Osaka Fire Mutual Aid Association, Japan 10 JPY

(31.03.2010 Rs. 481/- , 31.03.2009 Rs. 515/-) (10) 100
- Frankfurter Volksbank EG Bank 10 Euro
(31.03.2010 Rs. 30,270/- , 31.03.2009 Rs. 33,770/-) (10) 50
- Philippines Long Distance Telephone Company 200 PHP
(31.03.2010 Rs. 15,896/- , 31.03.2009 Rs. 16,800/-) (200) 1
11.7 11.7
c) In Others - Quoted (Non Trade)
- Mitsubishi UFJ Finance Group, Japan 12,820 19.0 20.4
(12,820)
- Senshu Ikeda Holdings (Refer note 2 below) 38,480 6.7 -
(Nil)
- Ikeda Bank, Japan (Refer note 2 below) Nil - 7.1
(2,080)
- Mizuho Financial Group, Japan 5,250 5.8 6.2
(5,250)
- Towa Pharmaceutical, Japan 24,200 19.2 20.6
(24,200)
132
Face As at As at
Number Value 31.03.2010 31.03.2009
- Risona Holdings, Japan 4,100 10.0 10.7
(4,100)
60.7 65.0
Less: Provision for diminution in 32.5 33.5
value of investments
28.2 31.5
3. In Bonds
- DWS Top 50 - EURO - 0.3
(35.39) 104.23
- Lingohr-Systematik - EURO - 0.4
(62.94) 88.65
- Allianz-dit BRIC - EURO - 0.2
(23.43) 157.49
- First Private Europa - EURO - 0.4
(82.59) 67.56
- 1.3
TOTAL 264.3 215.6
Notes :-
1) a) Quoted Investments : Aggregate Cost/Carrying Value 28.2 32.8
: Aggregate Market/Repurchase Value of Shares/Bonds 28.2 32.2
b) Unquoted Investments : Aggregate Cost/Carrying Value 236.1 182.8
2) 38,480 shares of Senshu Ikeda Holdings were received in exchange of 2,080 shares of Ikeda Bank.
3) All the Investments in shares/bonds are fully paid up.
As at As at
31.03.2010 31.03.2009
SCHEDULE 7 - INVENTORIES
Stock-in-trade
- Raw and Packing Materials 3,089.3 3,141.6
- Work-in-Process 2,062.4 2,147.6
- Finished Goods (including Traded Goods) 4,390.6 4,113.1
Consumable Stores, Spares and Fuel 172.6 169.3
TOTAL 9,714.9 9,571.6
SCHEDULE 8 - SUNDRY DEBTORS

(Unsecured)
Debts outstanding for a period exceeding six months
- Considered Good 260.9 591.6
371.7 670.4
Other Debts
- Considered Good 11,004.8 8,588.1
11,005.1 8,588.5
11,376.8 9,258.9
Less: Provision for Doubtful Debts 111.1 79.2
TOTAL 11,265.7 9,179.7

As at As at
31.03.2010 31.03.2009
SCHEDULE 9 - CASH AND BANK BALANCES
Cash in hand [including Cheques on hand of Rs. 44.2 million 51.2 41.4
(previous year Rs. 36.7 million)]
Bank Balances :
- With Scheduled Banks
In Current Accounts (including remittances in transit) 312.8 49.7
In Exchange Earners Foreign Currency Account 0.3 0.3
In Deposit Accounts [including Margin Deposits Rs. 6.7 million 10.5 28.6
(previous year Rs. 3.8 million)].
- With others
In Current Account 1,061.6 527.6
In Deposit Accounts 578.9 130.1
TOTAL 2,015.3 777.7
Note :
The bank balances in deposit accounts include interest accrued on fixed
deposits amounting to Rs. 2.6 million (previous year Rs. 1.3 million)
SCHEDULE 10 - LOANS AND ADVANCES

Unsecured, considered good unless otherwise stated
Loan to an associate company 83.8 -
Advances recoverable in cash or in kind or for value to be received
- Considered Good 3,142.0 1,835.4
3,148.5 1,841.9
Less: Provision for Doubtful Advances 6.5 6.5
3,142.0 1,835.4
Note:
Includes fair value of foreign exchange forward contracts
Rs. 672.2 million (previous year Rs. nil)
Deposits 472.6 480.1
Balances with Customs and Excise Authorities 19.0 27.2
Advance payment of Income Tax (net of Provision) 6.2 201.3
Advance payment of Fringe Benefit Tax (net of Provision) 4.8 7.3
MAT Credit Entitlement 1,030.2 228.4
TOTAL 4,758.6 2,779.7
134
As at As at
31.03.2010 31.03.2009
SCHEDULE 11 - CURRENT LIABILITIES AND PROVISIONS
Current Liabilities
Acceptances 1,733.0 1,265.1
Sundry Creditors
- Total outstanding dues of Micro Enterprises and Small Enterprises 88.5 65.8
- Total outstanding dues of creditors other than Micro Enterprises
and Small Enterprises 6,999.7 5,771.6
Other Liabilities (Refer note below) 762.1 3,172.9
Interest Accrued but not due on loans 52.1 45.9
Unclaimed Dividend * 11.1 9.4
Unclaimed Matured Fixed Deposits * 1.9 2.7
Unclaimed Interest Warrants * 1.0 1.4
* There are no amounts due and outstanding to be credited to
Investor Education and Protection Fund
9,649.4 10,334.8
Note :
Other Liabilities includes fair value of foreign exchange forward,
currency option and interest rate swap contracts Rs. 538.0 million
Provisions
For Gratuity 33.2 23.0
For Other Retirement Benefits 88.0 53.4
For Compensated Absences 251.3 194.3
For Taxation (including Wealth Tax) (net of Advance Tax) 381.3 332.2
For Proposed Dividend on Equity Shares 1,224.7 1,035.3
For Corporate Tax on Dividend 205.5 175.9
For Other Provisions [Refer note no. 20 of schedule 18(B)] 59.1 13.0
2,243.1 1,827.1
TOTAL 11,892.5 12,161.9

Schedules Forming Part of the
Consolidated Profit and Loss Account
Current Previous
31.03.2010 31.03.2009
SCHEDULE 12 - OTHER OPERATING INCOME
Export Benefits and other Incentives 249.4 345.8
Income from Research Services 251.0 111.8
Income from Product Registration Services (Dossiers) 80.1 79.3
Service Charges 332.4 212.6
Insurance Claims 41.0 12.0
Compensation Received 58.1 2.1
Credit balances written back 12.6 4.1
Exchange Rate Difference (net) - 79.4
Exchange Rate Difference on translation (net) 209.1 -
Miscellaneous Income 69.0 60.5
TOTAL 1,302.7 907.6
SCHEDULE 13 - OTHER INCOME

Profit on Sale of Current Investments - Non Trade - 0.4
Dividend on Long Term Investments - Trade
[31.03.2010 - Rs. 4,410/- ; 31.03.2009 Rs. 33,820/-]
Dividend on Long Term Investments - Non Trade 0.8 0.6
Interest on Deposits with Banks 2.7 37.1
[Tax Deducted at Source Rs. 0.1 million (previous year - Rs. 1.0 million)]
Other Interest (net) (including interest on income tax refunds) 45.8 5.6
[Tax Deducted at Source Rs. 0.7 million (previous year - Rs. 0.6 million)]
Profit on Sale of investments in subsidiary 90.9 -
Profit on Sale of Long Term Investments - Trade 1.8 -
Provision for diminution in value of Investments written back - 0.5
TOTAL 142.0 46.1
SCHEDULE 14 - COST OF MATERIALS

Raw and Packing Materials Consumed 12,484.7 10,838.5
Purchase of Traded Goods 7,306.0 5,875.3
Opening stock of Finished Goods (including Traded Goods) 6,260.7 5,303.0
and Work-in-Process
Add: Stock Acquired alongwith acquisition of Marketing Right 107.6 -
Add: Stock Acquired on Acquisition of subsidiaries - 287.0
Less: Stock transferred on sale of subsidiary 11.8 -
Less: Closing stock of Finished Goods (including Traded Goods) 6,453.0 6,260.7
and Work-in-Process
Increase in Stock of Finished Goods (including Traded Goods) (96.5) (670.7)
and Work-in-Process
TOTAL 19,694.2 16,043.1
SCHEDULE 15 - PERSONNEL EXPENSES

Salaries, Wages and Bonus 5,099.1 4,267.2
Contribution to Gratuity, Provident and Other Funds 488.1 382.0
Welfare Expenses 284.3 222.1
TOTAL 5,871.5 4,871.3
136
Current Previous
31.03.2010 31.03.2009
SCHEDULE 16 - MANUFACTURING AND OTHER EXPENSES
Processing Charges 524.4 372.0
Consumable Stores and Spares 1,094.2 898.6
Repairs and Maintenance:
- Buildings 144.6 94.5
- Plant and Machinery 305.1 234.7
- Others 223.0 126.6
Rent 266.3 213.9
Rates and Taxes 114.8 69.9
Insurance 181.8 136.5
Power and Fuel 1,546.6 1,391.1
Contract Labour Charges 287.5 224.8
Excise Duty (net) 77.6 (2.2)
Selling and Promotion Expenses 3,042.7 2,278.1
Commission, Brokerage and Discounts 774.1 656.5
[Including cash discount of Rs. 5.5 million (previous year Rs. 4.8 million)]
Freight and Forwarding 652.9 610.2
Postage and Telephone Expenses 157.7 134.8
Travelling and Conveyance 842.7 629.1
Legal and Professional Charges 847.2 494.2
[Net of recoveries of Rs. 143.6 million (previous year Rs. 152.2 million)].
Donations 100.4 52.6
Clinical and Analytical Charges 863.7 662.2
Loss on Sale/Discard of Fixed Assets (net) 86.1 37.3
Bad Debts/Advances written off 6.9 18.1
Provision for diminution in value of long term investment - 1.5
Directors Sitting Fees 1.2 0.7
Exchange Rate Difference on translation (net) - 257.2
Exchange Rate Difference (net) 152.1 -
(includes Printing and Stationery, Vehicle Expenses,
Product Registration Fees, Audit Fees, etc.)
TOTAL 13,303.3 10,359.2
SCHEDULE 17 - INTEREST AND FINANCE CHARGES

Interest on Debentures 35.5 12.5
Interest on Fixed Loans 83.1 73.2
Others 266.3 412.9
TOTAL 384.9 498.6

Schedules Forming Part of the Consolidated Accounts
SCHEDULE 18 - SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF THE

CONSOLIDATED FINANCIAL STATEMENTS
A) SIGNIFICANT ACCOUNTING POLICIES
a) Basis of Preparation of Financial Statements:

i) The financial statements of the subsidiaries and associates used in the consolidation are drawn upto the
same reporting date as that of the Company, namely March 31, 2010.
ii) The accompanying financial statements have been prepared under historical cost convention and on
accrual basis of accounting, in accordance with the generally accepted accounting principles in India
and provisions of the Companies Act, 1956.
b) Principles of Consolidation:
i) The financial statements of the Company and its subsidiaries have been consolidated in accordance
with the Accounting Standard 21 (AS-21) "Consolidated Financial Statements", on line-by-line basis by
adding together the book value of like items of assets, liabilities, income and expenses, after fully
eliminating intra-group balances, intra-group transactions and the unrealized profits/losses.
ii) The financial statements of the Company and its subsidiaries have been consolidated using uniform
accounting policies for like transactions and other events in similar circumstances.
iii) The excess of cost to the Company of its investment in the subsidiaries, on the acquisition dates over and
above the Company's share of equity in the subsidiaries, is recognised in the financial statements as
Goodwill on Consolidation and carried forward in the accounts [Refer note no. 16 of Schedule 18(B)]. The
said Goodwill is not amortised, however, it is tested for impairment at each Balance Sheet date and the
impairment loss, if any is provided for.
iv) Minority Interest in the net assets of the consolidated subsidiaries consist of :
a) The amount of equity attributable to minorities as at the date on which the investment in a
subsidiary is made and,
b) The Minorities share of movements in equity since the date the parent-subsidiaries relationship came
in existence. The losses applicable to the minority in excess of the minority interest in the equity of the
subsidiary and further losses applicable to the minority, are adjusted against the majority interest
except to the extent that the minority has a binding obligation to and is able to make good the losses. If
the subsidiaries subsequently reports profit, all such profits are allocated to the majority interest until
the minority's share of losses previously absorbed by the majority has been recovered.
c) Minority Interest is presented separately from the liabilities or assets and the equity of the
shareholders in the consolidated Balance Sheet. Minority Interest in the income or loss of the
Company is separately presented.
v) In case of associates, where the Company directly or indirectly through subsidiaries holds more than 20% of
equity, investments in associates are accounted for using equity method in accordance with Accounting
Standard 23 (AS-23) "Accounting for Investment in Associates in Consolidated Financial Statements".
vi) The Company accounts for its share in the change in the net assets of the associates, post acquisition,
after eliminating unrealized profit and losses resulting from transactions between the Company and its
associates, through its profit and loss account to the extent such change is attributable to the associates'
profit and loss account and through its reserves for the balance.
vii) The difference between the cost of investment in the associates and the share of net assets at the time of
acquisition of share in the associates is identified as Goodwill or Capital Reserve, as the case may be, and
included in the carrying amount of investment in the associates, and so disclosed. [Refer note no. 16 of
Schedule 18(B)]
viii)The difference between the proceeds from sale/disposal of investment in a subsidiary and the carrying
amount of assets less liabilities as of the date of sale/disposal is recognised in the consolidated
statement of profit and loss account as the profit or loss on sale/disposal of investment in subsidiary.
c) Use of Estimates:
The preparation of financial statements in conformity with the generally accepted accounting principles
require, estimates and assumptions to be made that affect the reported amounts of Assets and Liabilities on
the date of the financial statements and the reported amounts of Revenues and Expenses during the
reporting period. Differences between the actual results and estimates are recognised in the period in
which the results are known/materialised.
138
CONSOLIDATED FINANCIAL STATEMENTS (CONTD.)
d) Fixed Assets:
Fixed Assets are stated at cost net of cenvat, less accumulated depreciation and accumulated impairment
losses, if any. Cost includes directly attributable cost of bringing the assets to their working conditions for
their intended use.
e) Intangible Assets:
Intangible Assets are recognised only if it is probable that the future economic benefits that are attributable
to the assets will flow to the enterprise and the cost of the assets can be measured reliably. The Intangible
Assets are recorded at cost and are carried at cost less accumulated amortisation and accumulated
impairment losses, if any.
f) Foreign Currency Transactions / Translation:
i) Transactions in foreign currency are recorded at the original rate of exchange in force at the time
transactions are effected.
ii) Exchange difference arising on settlements during the year of short term monetary items denominated
in foreign currency; and exchange difference arising on the reporting of short term monetary items
denominated in foreign currency which are outstanding at the year-end using the exchange rates
prevailing at the balance sheet date, are recognized in the Profit and Loss Account.
iii) In terms of the Notification relating to AS 11 issued by the Ministry of Corporate Affairs in March 2009:
a) The exchange difference arising on reporting of the "Long Term Foreign Currency Monetary
Items" at the rates different from those at which they were initially recorded during the period or
reported in the previous financial statements and the exchange difference on settlement of such
items, in so far as such items relate to the acquisition of a depreciable capital asset, are added or
deducted as the case may be, from the cost of the respective asset and depreciated over the
balance life of those assets and
b) In other cases, these are accumulated in a "Foreign Currency Monetary Item Translation Difference
Account" and amortised over the balance period of such long term asset/liability but not beyond
31st March, 2011.
iv) In case of forward exchange contracts entered into to hedge the foreign currency exposure in respect of
short term monetary items, the difference between the exchange rate on the date of such contracts and
the year end rate is recognized in the Profit and Loss Account. Any profit/loss arising on cancellation of
forward exchange contract is recognized as income or expense of the year. Premium/discount arising on
such forward exchange contracts is amortised as income/expense over the life of contract.
v) Foreign offices/branches:
In respect of the foreign offices/branches of the Company, which are integral foreign operations, all
revenues and expenses (except depreciation) during the year are reported at average rate. Monetary
assets and liabilities are restated at the year-end exchange rate. Non monetary assets and liabilities are
stated at the rate prevailing on the date of the transaction. Net gain/loss on foreign currency translation
is recognised in the Profit and Loss Account.
vi) Foreign Subsidiaries:
In case of foreign subsidiaries, the local accounts are maintained in their local currency. The financial
statements of the subsidiaries, whose operations are integral foreign operations for the Company, have
been translated to Indian Rupees on the following basis:
i) All income and expenses are translated at the average rate of exchange prevailing during the year.
ii) Monetary assets and liabilities are translated at the closing rate on the Balance Sheet date.
iii) Non monetary assets and liabilities are translated at historical rates.
iv) The resulting exchange difference is accounted in 'Exchange Rate Difference on Translation
Account' and is charged/credited to the Profit and Loss Account.
The financial statements of subsidiaries, whose operations are non integral foreign operations for the
Company, have been translated to Indian Rupees on the following basis:
i) All income and expenses are translated at the average rate of exchange prevailing during the year.
ii) Monetary and non monetary assets and liabilities are translated at the closing rate on the Balance Sheet date.
iii) The resulting exchange difference is accounted in 'Foreign Currency Translation Reserve' and
carried in the Balance Sheet.
g) Derivative Instruments and Hedge Accounting:

Forward and Option Contracts in the nature of highly probable forecast transactions and contracts for
interest rate swaps entered into for hedging the risk of foreign currency exposure and interest related
risk in respect of variable rate debts respectively are accounted based on recognition and
measurement principles stated in Accounting Standard 30 (AS-30) "Financial Instruments: Recognition
and Measurements". The amount removed from the Cash Flow Hedge Reserve, on the occurrence of the
hedged transaction, is included in the Profit and Loss Account, against the related hedged item.
h) Investments:
Long-term investments are stated at cost which includes expenses directly incurred on acquisition of
investments. Investments in equity/ordinary shares in foreign currency are stated at cost by converting at
exchange rate prevailing at the time of acquisition. Provision for diminution in the value of long term
investments is made only if such decline is other than temporary. Current investments are carried at cost or
fair value, whichever is lower.
i) Inventories:
Stock-in-trade and Stock of consumable stores, spares and furnace oil are valued at lower of cost and net
realisable value.
In case of the Company, the Indian subsidiary companies and a subsidiary company at Germany, the cost is
computed based on moving weighted average in respect of all procured materials and traded finished goods and
includes appropriate share of utilities and other overheads in respect of Work-in-Process and Finished Goods.
In case of other subsidiaries, cost of finished goods including traded goods, raw materials, supplies and
others are computed by using the first in first out method. Cost also includes all charges incurred for
bringing the inventories to their present location and condition.
j) Revenue Recognition:
i) Revenue from sale of goods is recognised when the significant risks and rewards in respect of ownership
of products are transferred by the Company.
ii) Revenue (including in respect of insurance or other claims, interest etc.) is recognised when it is
reasonable to expect that the ultimate collection will be made.
iii) Revenue from product sales is stated net of returns, sales tax/VAT and applicable trade discounts
and allowances.
iv) Income from research and product registration (dossiers) services and sale of patent rights is recognised
as revenue when earned in accordance with the terms of the relevant agreements.
v) Dividend from investment is recognised as revenue when right to receive the payments is established.
vi) Interest income is recognised on time proportion basis.
vii) Revenue from service charges is recognized on rendering of the related services in accordance with the
terms of the agreement.
k) Export Benefits:
Export benefits available under prevalent schemes are accrued in the year in which the goods are exported
and are accounted to the extent considered receivable.
l) Excise Duty:
Excise duty is accounted on the basis of payments made in respect of goods cleared and provision is made
for goods lying in bonded warehouses.
m) Depreciation and Amortisation:
Depreciation on fixed assets is provided on straight line basis in the manner and at the rates prescribed in
Schedule XIV to the Companies Act, 1956, except for the following Fixed Assets and Intangible Assets which
are depreciated/amortised over their useful life (being lower than the life considering the rates prescribed
in Schedule XIV to the Companies Act, 1956) as determined by the Management on the basis of technical
evaluation.
140
i) The Company

Captive Power Plant at Tarapur 15 years
Certain assets provided to employees 3 years
Leasehold Land Over the period of lease
Intangible Assets (Computer Softwares) 6 years
ii) Subsidiaries at Japan

Buildings* 7 to 38 years
Attached facilities* 3 to 18 years
Plant, Machinery and Equipments 4 - 8 years
Tools 5 years
Furniture and Fixtures 4 to 15 years
Vehicles ** 5 years
Intangibles (on straight line method)
Marketing Rights 5 years
Computer Softwares 5 years
Trademark and Licences 10 years
* For assets acquired from April 1, 1998, straight line method is followed.
** Vehicles are depreciated over a period of 2-3 years on straight line basis by Amel Touhoku, 100% step down subsidiary of
the Company.
*** For all other assets, depreciation is provided on written down value method.
iii) Subsidiary at USA

Computers 3 years
Furniture and Fittings 5 years
Office and Other Equipment 7 years
iv) Subsidiary at Australia

Vehicles 8 years
v) Subsidiary at South Africa

Plant, Machinery and Equipments 5 years
Vehicles 5 years
Furniture and Fixtures 6 years
Office Equipments 5 years
Computers 3 years
Trade Marks 10 years
Dossiers/Marketing Rights 10 -20 years *
* Considering product life cycle, market demand for products, expected usage and future economic benefits to the
Company.

vi) Subsidiary at Germany

Buildings 10 - 50 years
Plant, Machinery and Equipments 5 - 15 years
Furniture and Fixtures 5 - 13 years
Computers 3 - 5 years
Vehicles 5 years
Computer Softwares 1 - 5 years
Marketing Rights 3 - 10 years
vii) Subsidiary at Philippines

Leasehold improvements 2 years
Vehicles 5 years
Furniture and Fixtures 5 years
Warehouse Equipments 3 years
Marketing Rights 10 years
viii) Subsidiary at Switzerland

Computer 3 years
Marketing Right 5 years
n) Employee Benefits :
a) Post Employment Benefits and Other Long Term Benefits:
i) Defined Contribution Plan:
Contribution for the year paid/payable to defined contribution retirement benefit schemes are
charged to Profit and Loss Account.
ii) Defined Benefit and Other Long Term Benefit Plans:
Liabilities towards defined benefit plans and other long term benefits viz. gratuity and compensated
absences expected to occur after twelve months, are determined using the Projected Unit Credit
Method. Actuarial valuations under the Projected Unit Credit Method are carried out at the balance
sheet date. Actuarial gains and losses are recognised in the Profit and Loss Account in the period of
occurrence of such gains and losses. Past service cost is recognised immediately to the extent
benefits are vested, otherwise it is amortised on straight-line basis over the remaining average
period until the benefits become vested.
The retirement benefit obligation recognised in the Balance Sheet represents the present value of the
defined benefit obligation as adjusted for unrecognised past service cost, and as reduced by the fair
value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the
present value of available refunds and reductions in future contributions to the scheme.
b) Short-Term Employee Benefits:
Short-term employee benefits expected to be paid in exchange for the services rendered by employees
are recognised undiscounted during the period employee renders services. These benefits include
performance incentives.
c) Employee Termination Benefits Costs:
Compensation to employees who have opted for retirement under the Voluntary Retirement Scheme of
the Company is charged to the Profit and Loss Account in the year of exercise of option by the employees.
o) Taxes on Income:
Income Taxes are accounted for in accordance with Accounting Standard 22 (AS- 22) "Accounting for Taxes
on Income". Tax expense comprises both Current Tax and Deferred Tax. Current tax is measured at the
amount expected to be paid or recovered from the tax authorities using the applicable tax rates.
142
Minimum Alternate Tax (MAT) credit entitlement is recognized as an asset by crediting the Profit and Loss
Account and disclosing an equivalent amount as an asset under 'Loans and Advances' in accordance with
guidance note on "Accounting for Credit Available in respect of Minimum Alternate Tax under the Income
Tax Act, 1961" issued by the Institute of Chartered Accountants of India.
Deferred Tax assets and liabilities are recognised for future tax consequence attributable to timing differences
between taxable income and accounting income that are measured at relevant enacted or substantively
enacted tax rates. At each Balance Sheet date the Company reassesses unrecognised deferred tax assets, to the
extent they become reasonably certain or virtually certain of realisation, as the case may be.
The deferred tax assets and deferred tax liabilities are off set if -
i) there exists a legally enforceable right to set off the assets against liabilities representing current tax and
ii) the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same
governing taxation laws.
p) Fringe Benefit Tax:
Fringe Benefit Tax was recognised by the Company and Indian subsidiaries in accordance with the relevant
provision of the Income Tax Act, 1961 and the Guidance Note on Fringe Benefits Tax issued by The Institute
of Chartered Accountants of India.
q) Operating Leases:
Assets taken on lease under which all risks and rewards of ownership are effectively retained by the lessor
are classified as operating lease. Lease payments under operating leases are recognised as expenses on
accrual basis in accordance with the respective lease agreements.
r) Finance Leases:
Assets acquired under lease where the Company has substantially all the risks and rewards of ownership are
classified as finance leases. Such assets are capitalised at the inception of the lease at the lower of the fair
value or the present value of minimum lease payments and a liability is created for an equivalent amount.
The rent obligations net of interest charges are reflected as secured loans.
s) Provisions, Contingent Liabilities and Contingent Assets:
Provisions involving substantial degree of estimation in measurement are recognised when there is a
present obligation as a result of past events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognised but are disclosed in the Notes to Accounts. Contingent Assets are
neither recognised nor disclosed in the financial statements.
t) Borrowing Costs:
Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalised as part of
the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get
ready for its intended use. All other borrowing costs are charged to revenue.
u) Stock based Compensation:
The compensation cost of stock options granted to employees is measured by the intrinsic value method,
i.e. the difference between the market price of the Company's shares on the date of the grant of options and
the exercise price to be paid by the option holders. The compensation cost if any, is amortised uniformly
over the vesting period of the options.
v) Government Grants:
Government grants are accounted when there is reasonable assurance that the enterprise will comply with
the conditions attached to them and it is reasonably certain that the ultimate collection will be made.
Capital grants relating to specific fixed assets are reduced from the gross value of the respective fixed assets.
Revenue grants are recognised in the Profit and Loss Account.
w) Research and Development :
Revenue Expenditure incurred on research and development is charged to the respective heads in the
Profit and Loss Account, in the year it is incurred and Capital Expenditure there on is included in the
respective heads under Fixed Assets.
x) Impairment of assets:
An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An
impairment loss is charged to Profit and Loss account in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting periods is reversed if there has been a change in the
estimate of recoverable amount.

B) NOTES TO CONSOLIDATED ACCOUNTS
1. The Consolidated Financial Statements present the consolidated accounts of Lupin Limited ("the
Company") and the following subsidiaries and associates:
Name of Entities Country of Proportion of

Incorporation Ownership
Interest
Subsidiaries
Lupin Pharmaceuticals Inc. U.S.A 100%
Kyowa Pharmaceutical Industry Co., Ltd. Japan 100%*
Amel Touhoku Japan 100%**
Novodigm Ltd. India 100%
Hormosan Pharma GmbH. (from 25th July, 2008) Germany 100%*
Pharma Dynamics (Proprietary) Ltd. (from 1st March, 2008) South Africa 60%*
Max Pharma Pty Ltd. (upto 31st May 2009) Australia 100%*
Lupin Pharmacare Ltd. India 100%
Lupin Australia Pty. Ltd. Australia 100%
Lupin Holdings B. V. Netherlands 100%
Lupin Herbal Ltd. India 100%
Lupin Atlantis Holdings SA Switzerland 100%*
Multicare Pharmaceuticals Philippines, Inc. (from 26th March, 2009) Philippines 51%*
Lupin (Europe) Ltd. (from 5th June 2009) United Kingdom 100%
Lupin Pharma Canada Ltd. (from 18th June 2009) Canada 100%*
Associates
Generic Health Pty Ltd. Australia 49.9%*
Shinko Yakuhin (upto 10th March 2010) Japan 25.9%***
* Ownership interest held through Lupin Holdings B.V. Netherlands.

** Wholly owned subsidiary of Kyowa Pharmaceutical Industry Co., Ltd., Japan.
*** Ownership interest held through Kyowa Pharmaceutical Industry Co., Ltd., Japan.
The consolidated accounts thus include the results of the aforesaid subsidiaries and associates and there are no
other body corporate/entities, where the Company holds more than 50% of the share capital or where the
Company can control the composition of the Board of Directors/Governing Bodies of such Companies/Entities,
where the holding may be less than 50%.
2. Estimated amount of contracts remaining to be executed on capital account and not provided for, net of
advances, Rs. 907.1 Million (previous year Rs. 1147.5 Million).
144
3. Contingent Liabilities:
(Rs. in million)
As at As at
31.03.2010 31.03.2009
a) Income tax demands/matters in respect of earlier years, 107.8 46.9
pending in appeals [including Rs. 90.3 million (previous year
Rs. nil ) consequent to department preferring appeals against
the orders of the Appellate Authorities passed in favour of the
Company]. Amount paid thereagainst and included under
Schedule 10 "Advances recoverable in cash or in kind" Rs. 17.5
million (previous year Rs. 38.0 million).
b) Excise duty, Sales tax, Service tax demands disputed in appeals 197.1 120.8
and pending decisions. Amount paid thereagainst and
included under Schedule 10 Rs. 18.9 million (previous year
Rs. 14.8 million).
259.2 299.1
c) Claims against the Company not acknowledged as debts
(excluding interest (amount unascertained) in respect of a
claim) Amount paid thereagainst without admitting liability
and included under Schedule 10 Rs. 76.5 million (previous year
Rs. 64.2 million).
d) Counter guarantee given to GIDC in connection with loan 7.5 7.5

sanctioned by a financial institution to a Company, jointly
promoted by an Association of Industries (of which, the
Company is a member) and GIDC.
e) Corporate guarantee given 135.0 -
f) Other matters - 5.4
4. a) Pre-operative expenses, included in Capital Work in Progress (Schedule 5) represent the expenses
incurred for projects, which are yet to be commissioned. The details of the pre-operative expenses are:
(Rs. in million)
Particulars 2009-2010 2008-2009
Incurred during the current year :
Salaries, allowances and contribution to funds 22.9 19.6
Professional fees 0.1 0.5
Travelling expenses 1.7 3.4
Others 9.6 2.1
Total 47.8 34.6
Less : Capitalised during the year 35.1 21.1

b) One of the Indian subsidiary is setting up a plant in a Special Economic Zone at Pithampur, Indore,
Madhya Pradesh.
i) The expenditure incurred during the construction period and directly attributable to the project is
classified as "Project Development Expenditure". Such expenses will be apportioned to the cost of
the respective fixed assets on commissioning of the plant. Necessary details as per part II of Schedule
VI of the Companies Act, 1956 have been disclosed below:
Project Development Expenditure (included under Capital Work-in-Progress):
(Rs. in million)
Particulars 2009-2010 2008-2009
Opening Balance 55.4 8.7
Payments to and Provisions for Employees
- Salaries, Wages and Bonus 2.6 5.7
- Contribution to Provident Fund, Gratuity Fund and Other Funds, etc. 0.2 0.2
- Employee Welfare and Other Amenities 0.3 0.8
Rent - 0.6
Rates and Taxes (31.03.2009 Rs. 2500/-) -
Insurance - 0.3
Printing and Stationery (31.03.2010 Rs. 26,879/-) 0.9
License and Registration - 0.3
Maintenance Charges 1.5 6.0
Travelling and Conveyance Expenses 0.1 1.3
Legal and Professional Fees 0.9 3.6
Depreciation 4.0 3.5
Power and Fuel 4.7 4.3
Closing Balance 78.0 55.4
ii) Research and Development expenditure debited to Profit and Loss Account aggregating Rs. 233.1
million (previous year Rs. 85 million) included in the various expenditure heads in the Profit and Loss
account being costs incurred by the said subsidiary company on various stability testing, test runs
and experimental production of exhibit batches of various products which the company may
manufacture on successful commissioning of the plant for commercial production and upon
obtaining necessary regulatory approvals.
5. (i) The current tax in respect of foreign subsidiaries has been computed considering the applicable tax laws and tax
rates of the respective countries, as certified by the local tax consultants/local management of the said subsidiary.
(ii) The Deferred Tax Assets/ Liabilities arising out of significant timing differences are as under:
a) Break-up of net deferred tax liabilities :
i) Company and an Indian subsidiary : (Rs. in million)
As at As at
Particulars 31.03.2010 31.03.2009
Other timing differences (4.8) -
Provision for doubtful debts and advances 25.4 20.3
FCCB issue expenses - 6.0
VRS Compensation 87.7 100.0
Net Deferred Tax Liabilities (1630.1) (1387.2)
146
ii) Pharma Dynamics (Proprietary) Ltd., South Africa

(Rs. in million)
Ast at As at
Particulars 31.03.2010 31.03.2009
Prepaid Expenses (0.4) -
Depreciation and Amortisation (3.2) -
Provision for Expenses 0.4 1.8
Provision for Obsolete Inventory 1.5 -
Net Deferred Tax (Liabilities) / Assets (0.3) 1.9
Total deferred tax liabilities (Net) as referred in (i) to (ii) above aggregate to Rs. 1630.4 million
b) Break-up of net deferred tax assets:
i) Lupin Pharmaceutical Inc., USA
(Rs. in million)
Ast at As at
Particulars 31.03.2010 31.03.2009
Prepaid Expenses (9.1) (11.9)
Provision for Price Differential 4.9 4.5
Provision for Sales Return 43.6 31.0
Provision for Expenses - 13.4
Net Deferred Tax Assets 38.9 42.5
ii) Kyowa Pharmaceutical Industry Co., Ltd., Japan

(Rs. in million)
Ast at As at
Particulars 31.03.2010 31.03.2009
Provision for Bonus 23.8 23.5
Provision for Compensated absences 5.1 9.8
Provision for Retirement Benefits 26.2 29.0
Provision for Expenses - 52.5
iii) Multicare Pharmaceuticals Philippines Inc., Philippines

(Rs. in million)
Ast at As at
Particulars 31.03.2010 31.03.2009
Provision for doubtful debts 2.6 2.8
Provision for Retirement Benefits 4.4 5.5

Total deferred tax assets (Net) as referred in (i) to (iii) above aggregate to Rs. 195.4 million
c) On the basis of current tax computation as referred to in note 5(i) above, there are no timing differences
and hence no deferred tax assets/liabilities in respect of the other subsidiaries.
6. Segment Reporting :
i) Primary segment :
The Company is exclusively in the Pharmaceutical business segment and has only one reportable
business segment.
ii) Secondary segment data:
(Rs. in million)
India Outside India Total
Particulars 2009-2010 2008-2009 2009-2010 2008-2009 2009-2010 2008-2009
Revenue by Geographical Segment 15604.4 13142.0 33103.5 25524.4 48707.9 38666.4
Carrying amount of Segment Assets 26637.4 23134.7 22716.3 16162.4 49353.7 39297.1
Capital Expenditure 4520.5 3252.8 2294.7 1761.8 6815.2 5014.6
Notes :
a) The segment revenue in geographical segments considered for disclosure is as follows :
- Revenue within India includes sales to customers located within India and other operating income
earned in India.
- Revenue outside India includes sales to customers located outside India and other operating income
outside India.
b) Segment revenue comprises:
(Rs. in million)
India Outside India Total
Particulars 2009-2010 2008-2009 2009-2010 2008-2009 2009-2010 2008-2009
Sales (net of excise duty) 15438.7 13057.7 31966.5 24701.1 47405.2 37758.8
Other Operating Income 165.7 84.3 1137.0 823.3 1302.7 907.6
Total Revenue 15604.4 13142.0 33103.5 25524.4 48707.9 38666.4
7. Basic and Diluted Earnings per Share is calculated as under:

(Rs. in million)
2009-2010 2008-2009
Net Profit after minority interest and share of loss in associates,
attributable to equity share holders 6816.3 5015.4
Weighted average number of Equity Shares :
- Basic 86083153 82442414
Add: Effect of dilutive issue of FCCBs, employees stock options
(ESOPs) - converted during the year and ESOPs
outstanding as on 31.03.2010 1513952 836054
- Diluted 87597105 83278468
Earnings per Share (in Rs.)
- Basic 79.18 60.84
- Diluted 77.81 60.22
148
8. Managerial Remuneration:
(Rs. in million)
Particulars 2009-2010 2008-2009
Salary and Allowances 101.1 70.1
Contribution to Provident and Other Funds 10.7 7.2
Perquisites 8.5 2.6
Commission to Whole time Director 70.0 47.3
Commission to Non Executive Directors 5.0 2.5
Sitting fees to Non Executive Directors 0.8 0.7
TOTAL 196.1 130.4
Notes :
i) Above amount does not include remuneration of Rs. 175.8 million (previous year Rs. 131.5 million) paid
by the subsidiary companies to its directors.
ii) Remuneration for the current year includes increased remuneration of the Managing Director and an
Executive Director of the Company w.e.f. 1st July 2009 in accordance with the Shareholder's resolutions.
iii) The provision for gratuity and compensated absences is made on the basis of actuarial valuation, for all
the employees of the Company, including for the managerial personnel. Proportionate amount of
gratuity and compensated absences is not included in the above disclosure, since the exact amount is
not ascertainable.
9. a) The Company procures on lease equipments, vehicles and office premises under operating leases.
These rentals recognised in the Profit and Loss Account for the year are Rs. 119.1 million (previous year
Rs. 59.6 million). The future minimum lease payments and payment profile of non cancellable operating
leases are as under:
(Rs. in million)
2009-2010 2008-2009
Not later than one year 108.5 77.7
Later than one year but not later than five years 213.6 102.0
Later than five years 8.3 7.8
TOTAL 330.4 187.5
b) Subsidiary companies at Japan, South Africa and Philippines have future obligations under finance
lease for procurement of Plant, Machinery, Equipments and Vehicles which are payable as under:
(Rs. in million)
2009-2010
Present Value Future Minimum
of minimum Interest lease
lease payment cost payment
Not later than one year 28.8 4.3 33.1
(20.0) (4.2) (24.2)
Later than one year but not later than five years 93.5 8.3 101.8
(62.0) (5.7) (67.7)
Later than five years 8.4 0.4 8.8
(12.9) (0.3) (13.2)
TOTAL 130.7 13.0 143.7
(94.9) (10.2) (105.1)
Note:
Previous year figures are given in bracket.

10. Employees Stock Option Plans:

a) The Company implemented "Lupin Employees Stock Option Plan 2003" (ESOP 2003), "Lupin Employees
Stock Option Plan 2005" (ESOP 2005) and "Lupin Subsidiary Companies Employees Stock Option Plan
2005" (SESOP 2005) as approved in earlier years by the Shareholders of the Company and the
Remuneration/Compensation Committee of the Board of Directors. Details of the options granted
during the year under the plans are as under:
Grant Date No. of Options Exercise price Vesting Period
Rs.
September 22, 2009 12000 1,089.15 22.09.2009 to 31.12.2010
12000 1,089.15 22.09.2009 to 31.12.2011
28000 1,089.15 22.09.2009 to 31.12.2012
28000 1,089.15 22.09.2009 to 31.12.2013
80000
January 29, 2010 10650 1,404.00 29.01.2010 to 30.06.2011
10650 1,404.00 29.01.2010 to 30.06.2012
24850 1,404.00 29.01.2010 to 30.06.2013
24850 1,404.00 29.01.2010 to 30.06.2014
71000
Rs.
May 29, 2009 4200 840.85 29.05.2009 to 30.06.2010
4200 840.85 29.05.2009 to 30.06.2011
9800 840.85 29.05.2009 to 30.06.2012
9800 840.85 29.05.2009 to 30.06.2013
28000
November 04, 2009 10000 614.08 04.11.2009 to 03.11.2010
10000
Rs.
September 22, 2009 11302 1,089.15 22.09.2009 to 31.12.2010
11303 1,089.15 22.09.2009 to 31.12.2011
26372 1,089.15 22.09.2009 to 31.12.2012
26373 1,089.15 22.09.2009 to 31.12.2013
75350
The options are granted at an exercise price, which is in accordance with the relevant SEBI guidelines in force, at
the time of such grants. Each option entitles the holder to exercise the right to apply for and seek allotment of
one equity share of Rs. 10/- each. The options have vesting periods as stated above in accordance with the
vesting schedule as per the said plans with an exercise period of ten years from the respective grant dates.
The particulars of the options granted and lapsed under the Schemes are as below:
March 31, 2010 March 31, 2009
Nos. Nos.
Less: Options lapsed during the year - 16490
150

March 31, 2010 March 31, 2009
Nos. Nos.

March 31, 2010 March 31, 2009
Nos. Nos.
Add: Options granted during the year 75350 -
Less: Options exercised during the year 4250 -
b) The Company has followed the intrinsic value based method of accounting for stock options granted
after April 1, 2005 based on Guidance Note on Accounting for Employee Share-based Payments, issued
by the Institute of Chartered Accountants of India. Had the compensation cost for the Company's stock
based compensation plans been determined in the manner consistent with the fair value approach as
described in the said Guidance Note, the Company's net income would be lower by Rs. 52.5 million
(previous year Rs. 57.8 million) and earnings per share as reported would be lower as indicated below:
(Rs. in million)
March 31, 2010 March 31, 2009
Net profit as reported 6816.3 5015.4
Less: Total stock-based employee compensation expense
determined under fair value based method 57.2 58.5
Add: Total stock-based employee compensation expense
determined under intrinsic value based method 4.7 0.7
Adjusted net profit 6763.8 4957.6
Basic earnings per share
- Adjusted (in Rs.) 78.57 60.13
Diluted earnings per share
- Adjusted (in Rs.) 77.21 59.53

The fair value of each option granted during the year is estimated on the date of grant based on the
following assumptions:
Particulars Grant dated Grant dated Grant dated Grant dated Grant dated
September 22, January 29, May 29, September 22, November 4,
2009 from 2010 from 2009 from 2009 from 2009 from
ESOP 2003 plan ESOP 2003 plan ESOP 2005 plan ESOP 2005 plan ESOP 2005 plan
Dividend yield (%) 1.29 1.29 1.29 1.29 1.29
Risk free interest rate (%) 7.14 7.49 6.66 7.14 7.08
Volatility (%) 40.95 39.87 41.83 40.95 38.79
11. Post Employment Benefits:

(i) Defined Contribution Plans:
The Company and Indian subsidiaries makes contributions towards provident fund and
superannuation fund to a defined contribution retirement benefit plan for qualifying employees. The
superannuation fund is administered by the Life Insurance Corporation of India (LIC). Under the plan,
they are required to contribute a specified percentage of payroll cost to the retirement benefit plan to
fund the benefits.
The provident fund plan of the Company and Indian subsidiaries, except Novodigm Ltd, are operated by
the "Lupin Ltd Employees Provident Fund Trust" (the "Trust"). The provident fund plan of Novodigm Ltd,
is operated by the Government administered Employees Provident Fund. Eligible employees receive
benefits from the said Provident Fund. Both the employees and the employers make monthly
contributions to the Provident Fund Plans equal to a specified percentage of the covered employee's
salary. The minimum interest rate payable by the Trust to the beneficiaries every year is being notified by
the Government. The Companies have obligation to make good the short fall, if any, between the return
from the investments of the trust and the notified interest rate.
The Guidance note on Implementing AS 15, Employee Benefits (revised 2005) issued by Accounting
Standards Board (ASB) states that benefit plans involving employer established provident funds, which
require interest shortfalls to be recompensed are to be considered as defined benefit plans. Pending the
issuance of the guidance note from the Actuarial Society of India, the Company's actuaries have
expressed an inability to reliably measure provident fund liabilities. Accordingly, the Company is unable
to exhibit the related information.
The Company and subsidiaries recognised Rs. 385.5 million (previous year Rs. 323.3 million) for
provident fund contributions, superannuation contribution and social security in the Profit and Loss
Account.
(ii) Defined Benefit Plan:
a) Company and Indian subsidiaries:
The Company and the Indian subsidiaries make annual contributions to the Group Gratuity cum Life
Assurance Scheme administered by the LIC, a funded defined benefit plan for qualifying employees.
The scheme provides for payments to vested employees as under:
a) On normal retirement/early retirement/withdrawal/resignation:
As per the provisions of Payment of Gratuity Act, 1972 with vesting period of 5 years of service.
b) On death in service:
As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.
The most recent actuarial valuation of plan assets and the present value of the defined benefit
obligation for gratuity were carried out as at March 31, 2010 by the LIC and an actuary. The
present value of the defined benefit obligations and the related current service cost and past
service cost, were measured using the Projected Unit Credit Method.
152
The following table sets out the status of the gratuity plan and the amounts recognised in the Company's
financial statements as at the Balance Sheet date:
(Rs. in million)
Sr. Particulars Gratuity (Funded)
No. As on 31.03.2010 As on 31.03.2009
- defined benefit obligation:
Current service cost 22.4 18.5
Past service cost - -
PVO at the beginning of the year 193.1 186.7
PVO at end of the year 253.2 193.1
II) Change in fair value of plan assets:
Expected return on plan assets 18.5 16.0
Actuarial gain - 1.9
Contributions by the employer 43.3 23.2
Fair value of plan assets at beginning of the year 170.1 180.1
Fair value of plan assets at end of the year 220.0 170.1
PVO at end of year 253.2 193.1
Fair Value of planned assets at end of year 220.0 170.1
Funded status (33.2) (23.0)
Unrecognised actuarial gain/(loss) - -
Net liability recognised in the balance sheet (33.2) (23.0)
IV) Net cost for the year ended March 31, 2010:
Current service cost 22.4 18.5
Expected return on plan assets (18.5) (16.0)
Net cost 53.5 39.6
Insurer Managed Funds (100%) 220.0 170.1
(Fund is Managed by LIC of India as per IRDA
guidelines, category wise composition of the Plan
Assets is not available)
VI) Actual return on the plan assets 18.5 16.0
Discount rate (%) 8.0 7.0 to 8.0
Salary escalation rate (%) 6.0 5.0 to 7.0
Expected rate of return on plan assets (%) 9.5 9.0 to 9.1
b) Kyowa Pharmaceutical Industry Co., Ltd., Japan
The Company's subsidiary at Japan has retirement and pension plans to cover all its employees. The plans
consist of a defined benefit pension plan and a lump sum payment plan.
Under the plans, employees are entitled to benefits based on level of salaries, length of service and certain
other factors at the time of retirement or termination.
The Company makes annual contributions to a private bank to fund defined benefit pension plan for
qualifying employees.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for
retirement benefits, for all employees other than directors, were carried out as at March 31, 2010. The present
value of the defined benefit obligations and the related current service cost and past service cost, were
measured using the Projected Unit Credit Method.
Retirement allowances for directors are provided for liability of the amount that would be required if all
directors retired at the balance sheet date.
The following table sets out the status of the retirement plan and the amounts recognised in the Company's
financial statements as at March 31, 2010.
(Rs. in million)
Sr. No. Particulars Lump sum Pension Lump sum Pension
Retirement Benefits Retirement Benefits
Benefits (funded) Benefits (funded)
(non funded) (non funded)
As on 31.03.2010 As on 31.03.2009
- defined benefit obligation:
Current Service Cost 9.5 2.7 8.4 2.3
Interest Cost 1.2 0.6 0.9 0.5
Actuarial loss/(gain) 5.2 0.3 (2.7) (0.3)
Benefits paid (9.2) (0.9) (4.0) (0.7)
Past service cost - - - -
Foreign exchange translation difference (4.6) (2.5) 13.4 7.3
PVO at the beginning of the year 62.3 34.2 46.3 25.1
PVO at end of the year 64.4 34.4 62.3 34.2
II) Change in fair value of plan assets:
Expected return on plan assets - 1.2 - 1.1
Actuarial loss / (gain) - 5.2 - (12.0)
Contributions by the employer - 5.5 - 4.9
Benefits paid - (0.9) - (0.7)
Foreign exchange translation difference - (3.6) - 10.3
Fair value of plan assets at beginning of the year - 43.1 - 39.5
Fair value of plan assets at end of the year - 50.5 - 43.1
PVO at end of year 64.4 34.4 62.3 34.2
Fair Value of planned assets at end of year - 50.5 - 43.1
Funded status (64.4) 16.1 (62.3) 8.9
Unrecognised actuarial gain/(loss) - - - -
Net asset/(liability) recognised in the balance sheet (64.4) 16.1 (62.3) 8.9
IV) Net cost for the year ended March 31,2010:
Current Service cost 9.5 2.7 8.4 2.3
Interest cost 1.2 0.6 0.9 0.5
Expected return on plan assets - (1.2) - (1.1)
Actuarial (gain) / losses 5.2 (4.9) (2.7) 11.7
Net cost 15.9 (2.8) 6.6 13.4
Funds managed by private bank (100%) (Category-wise - 50.5 - 43.1
composition of the Plan Assets are not available)
VI) Actual return on the plan assets: - 1.2 - 1.1
Discount rate (%) 1.9 1.9 1.9 1.9
Salary escalation rate (%) 0 0 0 0
Expected rate of return on plan assets (%) - 2.5 - 2.5
Notes:
1) Liability of lump sum retirement benefit as above along with liability for retirement benefits of directors
Rs. 15.9 million (previous year Rs. 18.5 million) is shown under provisions.
2) Net Assets under pension plan are shown under Loans and Advances.
154
c) Multicare Pharmaceuticals Philippines Inc., Philippines

The Company's subsidiary at Philippines makes annual contributions to a private bank to fund defined
benefit plan for qualifying employees.
The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for
retirement benefit were carried out as at March 31, 2010. The present value of the defined benefit obligations
and the related current service cost and past service cost, were measured using the Projected Unit Credit
Method.
The following table sets out the status of the retirement plan and the amounts recognised in the Company's
financial statements as at March 31, 2010
(Rs. in million)
Sr. No. Particulars Retirement
Benefits (funded)
As on 31.03.2010
I) Reconciliation in present value of obligations (PVO) - defined benefit obligation :
Current Service Cost 0.5
Interest Cost 0.4
Actuarial loss 4.5
Benefits paid (0.1)
Past service cost -
Foreign exchange translation difference (0.4)
PVO at the beginning of the year 8.5
PVO at end of the year 13.4
II) Change in fair value of plan assets :
Expected return on plan assets 0.2
Actuarial gain 0.6
Contributions by the employer 3.0
Benefits paid (0.1)
Foreign exchange translation difference (0.3)
Fair value of plan assets at beginning of the year 4.6
Fair value of plan assets at end of the year 8.0
PVO at end of year 13.4
Fair Value of planned assets at end of year 8.0
Funded status (5.4)
Unrecognised actuarial loss (2.3)
Net liability recognised in the balance sheet (7.7)
IV) Net cost for the year ended March 31,2010 :
Current Service cost 0.5
Interest cost 0.4
Expected return on plan assets (0.2)
Actuarial (gain) / losses -
Net cost 0.7
Investment in government securities 66%
Investment in common trust fund 26%
Investment in other securities and debt instruments 6%
Investment in loans and bill discounts 1%
Bank savings deposit 1%
VI) Actual return on the plan assets 0.2
Discount rate (%) 9.28
Salary escalation rate (%) 6
Expected rate of return on plan assets (%) 6.5

12. The Company has entered into Forward Exchange Contracts for hedge purpose and not intended for
trading or speculation purposes, to establish the amount of currency in Indian Rupees required or available
at the settlement date of certain payables and receivables. The following are the outstanding Forward
Exchange Contracts entered into by the Company:
Currency Buy or Sell Cross Currency Amount in US $

March 31, 2010 March 31, 2009
US $ Buy Indian Rupees - 27494783
The year-end foreign currency exposures that have not been hedged by a derivative instrument or
otherwise are as below:
a. Amount receivable in foreign currency on account of the following:

Currency
Currency Currency
Export of goods
89.3 2174691 48.4 1377314 AUD
3.5 77650 15.2 298900 ACUD
321.1 5303652 303.0 4485971 EURO
- - 34.8 479513 GBP
1945.2 43324692 6399.9 126181786 US $
Other receivable
- - Rs.6673/- 200 SGD
0.5 15565040 0.7 20873608 UZS
8.3 183936 153.6 3028461 US$
1.5 1014909 0.4 261537 RUB
0.1 333320 0.8 2498750 KZT
- - 15.3 210537 GBP
1.5 234405 1.2 160840 RMB
0.2 32731 0.3 47087 UAH
0.2 64450467 - - VND
156
b. Amount payable in foreign currency on account of the following:

Currency
Currency Currency
Import of goods and services
1007.3 22377164 2835.7 55585558 US $
3.6 52611 5.2 71002 GBP
115.5 1850063 83.4 912127 EURO
0.1 2174 1.4 30713 CHF
Rs. 2665/- 83 Rs. 16683/- 500 SGD
0.3 667311 1.2 2400000 JPY
- - 0.1 18440 HKD
3.7 90884 - - AUD
4.8 435374922 - - AZM
0.2 115265 - - RUB
0.2 4302 - - CAD
Secured and Unsecured loans payable
6818.8 151864975 1098.1 21649517 US $
- - 480.3 932950000 JPY
Interest accrued and not due on
Secured and Unsecured loans
0.7 15916 3.8 74620 US $
- - 2.3 4479828 JPY
Other payables
418.1 9281180 153.7 3024716 US $
1.8 1176911 2.3 1578283 RUB
0.7 10236 15.2 210228 GBP
0.2 709673 0.6 1736900 KZT
0.2 8118064 Rs. 6931/- 193598 UZS
0.6 12768 2.0 38701 ACUD
0.2 32680 0.3 56151 UAH
29.2 481951 16.6 252710 EURO
0.1 10211726 0.5 37536255 AZM
Rs. 43076/- 6557 - - RMB
0.8 17829 1.4 38765 AUD
- - 1.0 23800 CHF
- - 0.2 12017 SAR
Rs. 33470/- 5120 - - BWP
0.2 101607000 - - VND
0.1 1550 - - CAD
13. Derivative Financial Instruments:

i) The Company has entered into forward and option contracts in order to hedge and manage its
foreign currency exposures towards future export earnings. Such derivative contracts (including
contracts for a period extending beyond the financial year 2010-11) which are in the nature of highly
probable forecast transactions are entered into for hedging purposes only, and are accordingly
classified as cash flow hedges.
ii) The subsidiary located at Japan has entered into interest rate swap agreements as a means of hedging
interest rates related risks in respect of variable rate debts.

The category wise break-up there of is as under :
Particulars Foreign As at As at
Currency 31.03.2010 31.03.2009
Amounts Amounts
in million in million
Forward contracts USD 423.5 378.3

Option Contracts USD 72.0 114.0
Interest rate swap contracts JPY 211.6 405.5
The Company and the subsidiary companies based on the Announcement of The Institute of Chartered
Accountants of India "Accounting for Derivatives" has accounted for derivative forward and option
contracts and interest rate swap contracts at fair values, considering the principles of recognition and
measurement stated in Accounting Standard (AS-30) "Financial Instruments: Recognition and
measurement" and the accounting policy followed by the Company in this respect.
The changes in the fair value of the derivative instruments during the year ended 31st March 2010,
aggregating Rs. 3087.4 million (previous year Rs. 2766.0 million debited) designated as effective have
been credited to the Cash Flow Hedge Reserve Account and Rs. 13.3 million is credited (previous year
Rs. 34.0 million debited) to the Profit and Loss Account , being the ineffective portion thereof.
14. The aggregate amount of revenue expenditure incurred by the Company and subsidiary companies during
the year on Research and Development and shown in the respective heads of account is Rs. 3570.1 million
15. During the year, in accordance with the terms of issue, Foreign Currency Convertible Bonds aggregating
US $ 71.3 million (aggregate to date US $ 98.6 million) were converted into 5,816,742 equity shares
(aggregate to date 8,043,911 equity shares) of Rs. 10/- each, fully paid-up, at a predetermined price of
Rs. 567.04 per share, resulting in an increase in the paid-up share capital by Rs. 58.2 million (aggregate to
date Rs. 80.4 million) and securities premium by Rs. 3240.1 million (aggregate to date Rs. 4480.7 million).
Balance FCCBs aggregating US $ 1.4 million were redeemed during the year and the redemption premium
of Rs. 12.6 million (net of tax of Rs. 6.5 million) is adjusted against securities premium account. There were no
Bonds outstanding as on March 31, 2010.
16. a) During the year, the Company through its wholly owned subsidiary Lupin Holdings B.V., Netherlands
(LHBV), acquired/subscribed to the equity stake of the following:
i) Additional Investment in Lupin Atlantis Holdings SA, Switzerland (100% subsidiary of the Company)
at a total cost of Rs. 2349.2 million.
ii) Additional Investment in Generic Health Pty Ltd., Australia (Associate) (GH) at a total cost of Rs. 122.2 million.
iii) 100% equity stake of Lupin Pharma Canada Ltd., Canada at a total cost of Rs. 125.3 million.
The above acquisitions/subscriptions are based on the net assets values, the future projected revenues,
operating profits and cash flows, etc. of the investee companies.
b) Goodwill on consolidation comprises of:
(Rs. in million)
Goodwill in respect of As on As on
31.03.2010 31.03.2009
Kyowa Pharmaceuticals Industry Co., Ltd., Japan 1828.3 1695.7
Novodigm Ltd., India 218.2 218.2
Hormosan Pharma GmbH, Germany 230.1 250.7
Pharma Dynamics (Proprietary) Ltd., South Africa 732.5 799.0
Multicare Pharmaceuticals Philippines Inc., Philippines 187.7 210.1
TOTAL 3196.8 3173.7
158
c) Details of Investments in an Associate : (Rs. in million)

Name of Investment in Cost of Amount of Share in Carrying
Associate Ordinary Shares Investments Goodwill at accumulated amount of
(Nos.) in ordinary the time of Loss of Investments
shares acquisition Associate at the year end
Generic Health Pty Ltd, 30199214 326.6 243.6 102.2 224.4
Australia (18667967) (204.5) (157.2) (33.4) (171.1)
Figures in bracket are for previous year
17. a) Foreign Currency Translation Reserve (Schedule 2) represents the net exchange difference on
translation of the financial statements of foreign subsidiaries located at Japan, Australia, Germany,
South Africa, Philippines, Switzerland and Canada from their local currency to the Indian currency.
Such operations are considered as 'non integral' to the Company. Consequently, in accordance with
the Accounting Standard (AS-11) 'The Effects of Changes in Foreign Exchange Rates (Revised 2003)',
the exchange loss on translation of Rs. 388.4 million (previous year gain of Rs. 58.5 million) during the
year is debited/credited to such reserve instead of to the Profit and Loss Account.
b) The subsidiary at Switzerland commenced its trading operations during the year and based on its
methods of operations, financing models and relationship to its ultimate holding company, has re-
classified its operations as 'non-integral operations', which were hitherto classified as 'integral
operations'. Accordingly, the said subsidiary has applied the translation procedures in accordance
with the Accounting Standard (AS-11) 'The Effects of Changes in Foreign Exchange Rates (Revised
2003)' applicable for non-integral foreign operations and the resulting net exchange difference is
accumulated in the Foreign Currency Translation Reserve (refer schedule 2). Consequently, the net
profit after tax for the year and the shareholders funds as at the year-end are higher by
Rs. 371.9 million.
18. Minority interest represents the minority's share in equity of the subsidiaries as below:
(Rs. in million)
As on As on
31.03.2010 31.03.2009
Max Pharma Pty. Ltd., Australia
- Share in Equity Capital - 10.8
- Share in Reserves and Surplus (Refer note no. 22 below) - (9.7)
- 1.1
Pharma Dynamics (Proprietary) Ltd., South Africa
- Share in Equity Capital 0.2 0.2
- Share in Reserves and Surplus 207.3 100.9
207.5 101.1
Multicare Pharmaceuticals Philippines Inc., Philippines
- Share in Equity Capital 13.2 13.2
- Share in Reserves and Surplus 34.2 27.1
47.4 40.3
TOTAL 254.9 142.5
19. The information regarding Micro Enterprises and Small Enterprises has been determined to the extent such
parties have been identified on the basis of information available with the Company. This has been relied
upon by the auditors.
Amount due to vendors under Micro Enterprises and Small Enterprises for the year ended March 31, 2010 is
Rs. 88.5 million, interest paid during the year and outstanding at the year end Rs. nil (previous year Rs. 65.8
million, interest Rs. nil).

20. Disclosures as required by Accounting Standard 29 (AS-29) "Provisions, Contingent Liabilities and
Contingent Assets"
a) Lupin Pharmaceuticals Inc, USA (Rs. in million)
Particulars Provision for Price Differential
(refer note below)
As at As at
March 31,2010 March 31,2009
Additions 82.0 542.2
Utilisation 81.0 627.6
Reversal - 1.5
Note:
The subsidiary company at USA, in accordance with the terms of agreements/understanding with the
customers, offers differential price due to reduction in the market prices of products launched. Accordingly,
the said subsidiary company has made a provision for price differential based on historical data and future
market price trend expected. Actual outflow is expected in future.
b) Lupin Atlantis Holdings SA, Switzerland
In accordance with the terms of 'Asset Purchase Agreement' entered into with the vendor, with respect
to purchase of Marketing Right, the subsidiary company located at Switzerland has made provision of
Rs. 45.1 million on best estimate basis with regard to assumed liabilities on which actual outflow of
resources is expected in future.
21. a) During the year, the subsidiary company located at Netherlands, acquired certain assets
(Manufacturing Knowhow/ Product Marketing Rights, etc.), in accordance with the terms of Agreement
entered into by the Company. Subsequently these assets were assigned to the another subsidiary
located at Switzerland.
b) The subsidiary at Switzerland is in the process of carrying out the activities necessary for product
availability, which are at an advanced stage. Pending completion of such activities, the cost of such
assets referred to in (a) above of Rs. 345.7 million (including directly attributable pre-operative cost -
legal and professional fees of Rs. 8.4 million) is included under capital work in progress (Schedule 5) as at
the year end.
22. The Company through its wholly owned subsidiary at Netherlands was holding 2,000,000 ordinary shares of
AUD 1 each in a subsidiary company - Max Pharma Pty Limited (Max) representing 87.5% stake therein.
During the year the Company purchased the balance stake in that subsidiary through its wholly owned
subsidiary at Netherlands. Consequently, Max became a wholly owned subsidiary company of the
Company.
At the beginning of the year, the Company through its wholly owned subsidiary at Netherlands was holding
18,667,967 shares of Euro 3,163,683, Rs. 204.5 million in an associate company - Generic Health Pty Ltd.,
Australia (GH) representing 36.65% stake in that company. With a view to gain the benefit of synergies,
better market penetration and saving in overhead costs, the Company decided to consolidate the
operations of Max and GH. To achieve such consolidation, the Company sold its entire investment in Max to
GH for a consideration primarily comprising of 9,500,000 shares of Euro 1,579,146, Rs. 96.5 million in GH.
The Company through its wholly owned subsidiary at Netherlands further acquired 2,031,247 shares from
other shareholders as a result of which the aggregate holding of the Company in GH has increased to
49.91% at the year end.
23. a) Lupin Pharmacare Limited, Lupin Herbal Limited and Novodigm Limited (wholly owned subsidiaries of
the Company) had filed petitions before the Honourable High Courts of Mumbai and Gujarat for
amalgamation with the Company, the appointed date being April 1, 2009.
b) Vide its order dated January 8, 2010, the High Court of Mumbai sanctioned the scheme of amalgamation
between Lupin Pharmacare Ltd., Lupin Herbal Ltd. and the Company subject to the order to be passed
160
by the High Court of Gujarat sanctioning the scheme of amalgamation between Novodigm Ltd and the
Company. The order of the Gujarat High Court is awaited.
24. (a) The Company through it's wholly owned subsidiary at Netherlands holds 100% equity stake at cost Euro
4,704,449, Rs. 310.7 million in Hormosan Pharma GmbH, Germany (Hormosan). The goodwill on
consolidation of the said subsidiary is Rs. 230.1 million as at the year end. The said subsidiary continued
to incur losses during the year and has negative net worth at the end of the year. However, considering
the financial support from the Company and Hormosan's projections/plans for introducing many new
products (including products from the Company) in the German Market in the near future, a growth in
the turnover is expected, which will result in improvement in net worth, over a period of time.
(b) As stated in note 22 above, the Company through its wholly owned subsidiary at Netherlands has
increased its stake in GH to 49.91%. The aggregate cost of the investment in this associate amounts to
Rs. 326.6 million. In addition the wholly owned subsidiary at Netherlands has also given interest bearing
loan of Rs. 83.8 million to GH. Further debts due from the said associate aggregate Rs. 32.6 million as at
the year end. During the year, GH has incurred losses resulting into further erosion of its net worth. GH
has plans to introduce the products including the products from the Company in the market in near
future. As a result of this it is expected that its turnover would increase leading to profitability and
improvement in networth over a period of time.
Based on these and considering that these investments are held as strategic long term investments, in
the opinion of the management, the diminution in the value of the aforesaid investments is considered
temporary and the loan/debts are considered good of recovery and there is no impairment in the value
of goodwill. Accordingly, no provision is considered necessary, in respect thereof.
25. Excise duty (Schedule 16) includes Rs. 19.8 million being net impact of the excise duty provision on opening
and closing stock.
26. In terms of the Share Sale agreement dated September 16, 2008 between the Company and the
distribution shareholders, a subsidiary located at South Africa has declared a dividend relating to the
post acquisition period. Such dividend amounting to Rs. 36.6 million (previous year Rs. 21.2 million) was
paid before March 31, 2010.
27. Related Party Disclosures, as required by AS-18 are given below :

A. Relationships -
Category I : Associates of the Company
Generic Health Pty Ltd., Australia (from August 20, 2008)
Shinko Yakuhin, Japan (upto March 10, 2010)
Category II: Key Management Personnel

Dr. D. B. Gupta Chairman
Dr. K. K. Sharma Managing Director
Mrs. M. D. Gupta Executive Director
Mr. Nilesh Gupta Executive Director (from October 8, 2008)
Mrs. Vinita Gupta Group President and CEO of Lupin Pharmaceuticals Inc.,USA
Category III: Others (Relatives of Key Management Personnel and Entities in which the Key Manage-
ment Personnel have control or significant influence)
Dr. Anuja Gupta
Mrs. Kavita Gupta Sabharwal
Mr. Nilesh Gupta (upto October 7, 2008)
Dr. Richa Gupta
Mrs. Pushpa Khandelwal
Adhyatma Investments Pvt. Limited
Bharat Steel Fabrication and Engineering Works
Concept Pharmaceuticals Limited
D. B. Gupta (HUF)
Enzal Chemicals (India) Limited

Lupin Human Welfare and Research Foundation

Lupin International Pvt. Limited
Lupin Investments Pvt. Limited
Lupin Marketing Pvt. Limited
Matashree Gomati Devi Jan Seva Nidhi
Novamed Pharmaceuticals Pvt Limited
Polynova Industries Limited
Pranik Landmark Associates (upto 3rd March 2010)
Rahas Investments Pvt. Limited
S N Pharma
Synchem Chemicals (I) Pvt. Limited
Zyma Laboratories Limited
B. Transactions with the related parties. (Rs. in million unless other wise stated)
Sr. Transactions Associates Key Others Total
No. Management
Personnel
1 Sale of Goods 131.3 - 13.6 144.9
(101.7) (-) (3.2) (104.9)
2 Miscellaneous Income on account of - - - -
sale of by-products (-) (-) (2.9) (2.9)
3 Rent Expenses - - 103.6 103.6
(-) (-) (98.7) (98.7)
4 Business Conducting Expenses - - Rs. 6,000/- Rs. 6,000/-
(-) (-) (Rs. 6,000/-) (Rs. 6,000/-)
5 Agency Commission Expenses 15.2 - 20.1 35.3
(-) (-) (14.5) (14.5)
6 Expenses Recovered / Rent Received - - 1.6 1.6
(-) (-) (2.0) (2.0)
7 Remuneration Paid - 279.6 - 279.6
(-) (195.9) (10.2) (206.1)
8 Purchase of Goods/Materials - - 31.2 31.2
(-) (-) (31.9) (31.9)
9 Donations Paid - - 35.0 35.0
(-) (-) (21.7) (21.7)
10 Dividend Paid - 16.0 509.4 525.4
(-) (11.7) (408.9) (420.6)
11 Expenses Reimbursed 2.6 - 11.6 14.2
(-) (-) (11.0) (11.0)
12 Sale of Fixed Assets - - 9.0 9.0
(-) (-) (-) (-)
13 Investments during the year 99.7 - - 99.7
(-) (-) (-) (-)
14 Loan given during the year 92.9 - - 92.9
(-) (-) (-) (-)
15 Interest income received 2.9 - - 2.9
(-) (-) (-) (-)
162
Out of the above items transactions in excess of 10% of the total related party transactions are as under :

1 Sales of Goods
Generic Health Pty Ltd., Australia Associate 44.6 33.9
Shinko Yakuhin, Japan Associate 86.7 67.8
Concept Pharmaceuticals Ltd. Others - -
Enzal Chemicals (India) Ltd. Others - 3.0
2 Miscellaneous Income on account
of sale of by-products
3 Rent Expenses
Lupin Investments Pvt. Ltd. Others 83.0 78.9
Bharat Steel Fabrications and Others 11.9 11.3
Engineering Works
Zyma Laboratories Ltd. Others - 0.4
4 Business Conducting Expenses
Synchem Chemicals (I) Pvt. Ltd. Others Rs. 6,000/- Rs. 6,000/-
5 Agency Commission Expenses
S N Pharma Others 20.1 14.5
6 Expenses Recovered / Rent Received
Polynova Industries Ltd. Others 1.0 0.8
Pranik Landmark Associates Others 0.6 1.2
7 Remunerations Paid
Dr. D. B. Gupta Key Management Personnel 91.1 66.7
Dr. K. K. Sharma Key Management Personnel 64.0 43.6
Mrs. Vinita Gupta Key Management Personnel 89.3 68.7
Mr. Nilesh Gupta Key Management Personnel 32.8 14.4
Mr. Nilesh Gupta Others - 10.2
8 Purchase of Goods/ Material
Enzal Chemicals (India) Ltd. Others 31.2 31.9
9 Donations Paid
Lupin Human Welfare and Others 32.3 19.2
Research Foundation
10 Dividend Paid
Lupin Marketing Pvt. Ltd. Others 101.0 80.8
Rahas Investments Pvt. Ltd. Others 114.2 91.4
Visiomed (I) Pvt. Ltd. Others 108.8 87.0
Zyma Laboratories Ltd. Others 137.4 109.9
11 Expenses Reimbursed
Synchem Chemicals (I) Pvt. Ltd. Others 11.0 10.0


12 Sale of Fixed Assets
Concept Pharmaceuticals Ltd. Others 9.0 -
13 Investments during the year
14 Loan given during the year
15 Interest income received
C. Balances due from/to the related parties (Rs. in million)

Sr. Transactions Associates Key Others Total
No. Management
Personnel
1 Deposits given under Leave and Licence - - 71.7 71.7
arrangement for Office Premises (-) (-) (71.7) (71.7)
2 Deposit given for Business Conducting - - 180.0 180.0
Arrangement (-) (-) (180.0) (180.0)
3 Debtors 32.6 - 10.5 43.1
(59.4) (-) (-) (59.4)
4 Creditors 5.4 - 3.7 9.1
(-) (-) (1.8) (1.8)
5 Commission Payable - 70.0 - 70.0
(-) (47.3) (0.8) (48.1)
6 Expenses Payable - - - -
(-) (-) (0.1) (0.1)
7 Loan given 83.8 - - 83.8
(-) (-) (-) (-)
Notes:
i) Figures in brackets are for previous year.
ii) Related party relationship is as identified by the Company and relied upon by the Auditors.
164
28. The Consolidated Financial Statement includes results of operations of two new subsidiaries incorporated during
the year and the results of operations for the entire 12 months of two subsidiaries acquired during previous year.
Accordingly, the current year figures are not strictly comparable with those of the previous year. Previous year
figures have been regrouped wherever necessary to correspond with the figures of the current year.
Signatures to Schedule 1 to 18
For Lupin Limited

Place : Mumbai R.V. Satam

STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT, 1956
RELATING TO SUBSIDIARY COMPANIES
Name of the Financial Date from Extent of Interest of the holding Company in the Capital Net aggregate amount of the Net aggregate amount of the
subsidiary company year/period which it and Reserves of the subsidiary company at the end of the subsidiary company's profit / subsidiary company's profit /
of the subsidiary became financial year/period of the subsidiary company (loss) not dealt with in the (loss) dealt with in the holding
company subsidiary holding Company's accounts Company's accounts
a) Number of shares held b) Extent of Current Previous Current Previous
holding year/period years/periods year/period years/periods
Lupin Pharmaceuticals Inc., Year ended 30.06.2003 300,000 Shares of the face value of US $ 1 each 100% Rs.184.9 Mn. Rs.632.1 Mn. Nil Nil
USA 31.03.2010
Kyowa Pharmaceutical Industry Co., Ltd., Year ended 18.10.2007 196,000 Ordinary Shares of the face value of 100% Rs.454.9 Mn. Rs.633.2 Mn. Nil Nil
Japan 31.03.2010 JPY 500 each (Note 1)
Novodigm Ltd., Year ended 26.09.2007 2,384,783 Equity Shares of the face value of 100% (Rs.3.4 Mn.) Rs.87.0 Mn. Nil Nil
India 31.03.2010 Rs.10/- each (including 6 shares held by nominees)
Lupin Pharmacare Ltd., Year ended 10.01.2007 1,050,000 Equity Shares of the face value of 100% (Rs.284.7 Mn.) (Rs.86.8 Mn.) Nil Nil
India 31.03.2010 Rs.10/- each (including 6 shares held by nominees)
Lupin Australia Pty Ltd., Year ended 01.12.2004 500,000 Equity Shares of the face value of 100% Rs.3.1 Mn. Rs.0.9 Mn. Nil Nil
Australia 31.03.2010 AU $ 1 each
Lupin Holdings B.V., Year ended 30.03.2007 105,579 Equity Shares of the face value of 100% Rs.44.3 Mn. (Rs.10.8 Mn.) Nil Nil
Netherlands 31.03.2010 Euro 1000 each
Pharma Dynamics (Proprietary) Ltd., Year ended 01.03.2008 60,000 Ordinary Shares of the face value of 60% Rs.155.2 Mn. Rs. 49.3 Mn. Nil Nil
South Africa 31.03.2010 South African Rand 1 each (Note 1)
Hormosan Pharma GmbH, Year ended 25.07.2008 9 Ordinary Shares (Notes 1 and 2) 100% (Rs.127.2 Mn.) (Rs.85.6 Mn.) Nil Nil
Germany 31.03.2010
Multicare Pharmaceuticals Philippines, Inc., Year ended 26.03.2009 1,308,150 Shares of the face value of 51% Rs.8.5 Mn. Rs.1.5 Mn. Nil Nil
Philippines 31.03.2010 PHP Peso 10 each (Note 1)
Lupin Herbal Ltd., Year ended 12.08.2004 50,000 Equity Shares of the face value of Rs.10/- 100% Nil
(Rs.0.02 Mn.) (Rs.0.1 Mn.) Nil
India 31.03.2010 each (including 6 shares held by nominees)
Lupin Atlantis Holdings SA, Year ended 05.06.2007 2,486 Shares of the face value of CHF 1000 each 100% Rs.1755.8 Mn. (Rs.2.2 Mn.) Nil Nil
Switzerland 31.03.2010 (Note 1)
Amel Touhoku, Year ended 18.10.2007 300 Ordinary Shares of the face value of JPY 10000 100% (Rs.0.6 Mn.) Rs.2.1 Mn. Nil Nil
Japan 31.03.2010 each (Note 3)
Lupin (Europe) Ltd., From 05.06.2009 05.06.2009 2,51,000 Ordinary Shares of GBP 1 each 100% (Rs.6.5 Mn.) N.A. Nil N.A.
U.K. to 31.03.2010
Lupin Pharma Canada Ltd., From 18.06.2009 18.06.2009 280,000,100 Common Shares. (Face Value of 100% (Rs.4.1 Mn.) N.A. Nil N.A.
Canada to 31.03.2010 100 Common Shares is Canadian $ 1) (Note 4)
Max Pharma Pty Ltd., From 01.04.2009 21.09.2006 2,885,714 Ordinary Shares of the face value of AU $ 1 100% Nil Nil
(Rs.12.1 Mn.) (Rs.78.9 Mn.)
Australia to 31.05.2009 each (Note 5)
Notes: For and on behalf of the Board of Directors
1. Shares are held by Lupin Holdings B.V., Netherlands, a wholly-owned subsidiary of the Company.
2. One Share of Euro 68800, one Share of Euro 8400, one Share of Euro 16300 and six Shares of Euro 4900 each.
3. Shares are held by Kyowa Pharmaceutical Industry Co., Ltd., Japan, a wholly-owned subsidiary of the Company.
166
4. Lupin Holdings B.V., Netherlands, holds 280,000,000 Shares and Lupin Atlantis Holdings SA, Switzerland, holds 100 Shares.
5. Shares were held by Lupin Holdings B.V., Netherlands, which were transferred to Generic Health Pty Ltd., Australia, an associate of the Company.
R. V. Satam Dr. Desh Bandhu Gupta Dr. Kamal K. Sharma

Mumbai, May 5, 2010 Company Secretary Chairman Managing Director
INFORMATION ON THE FINANCIALS OF THE SUBSIDIARY COMPANIES
167
FOR THE YEAR ENDED MARCH 31, 2010
(As per the exemption letter of the Ministry of Corporate Affairs, Government of India)
Name of the Lupin Kyowa Novodigm Ltd., Lupin Lupin Australia Lupin Pharma Hormosan Multicare Lupin Lupin Amel Touhoku, Lupin Lupin Pharma Max Pharma
subsidiary company Pharmaceuticals Pharmaceutical India Pharmacare (Pty) Ltd., Holdings B.V., Dynamics Pharma Pharmaceuticals Herbal Ltd., Atlantis Japan (Europe) Canada Ltd., Pty Ltd.,
Inc., USA Industry Ltd., India Australia Netherlands (Proprietary) Ltd., GmbH, Philippines India Holdings SA, Ltd.,U.K. Canada Australia
Co., Ltd., Japan South Africa Germany Inc., Philippines Switzerland
The financial year/ Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended From From From
period ended on March 31, 2010 March 31, 2010 March 31, 2010 March 31, 2010 March 31, 2010 March 31, 2010 March 31, 2010 March 31, 2010 March 31, 2010 March 31, 2010 March 31, 2010 March 31, 2010 June 5, 2009 to June 18, 2009 to April 1,2009 to
March 31, 2010 March 31, 2010 May 31, 2009
Rs. in million Rs. in million Rs. in million Rs. in million Rs. in million Rs. in million Rs. in million Rs. in million Rs. in million Rupees Rs. in million Rs. in million Rs. in million Rs. in million Rs. in million
Capital 13.8 33.5 23.8 10.5 16.9 6,705.5 0.5 8.1 26.9 500,000 2,352.5 1.0 20.0 125.3 103.7
Reserves 817.0 1,967.1 214.4 (281.5) 4.0 33.5 387.3 (137.3) 69.8 (116,469) 1,381.7 0.9 (6.5) (5.4) (101.9)
Total Liabilities 9071.9 3,558.6 583.5 2,173.4 1.7 137.3 255.0 458.6 111.5 446,322 763.6 58.8 95.5 7.9 37.4
Total Assets 9902.7 5530.8 820.7 1,902.4 22.6 6,549.7 642.8 329.4 208.2 829,853 4,497.8 60.7 109.0 127.8 39.2
Investment (Other
than in subsidiaries) - 28.4 1.0 - - 326.6 - - - - - - -
Turnover (Net) 16,542.0 5,281.2 470.6 - 0.4 37.0 1,327.6 426.4 327.6 - 2,808.8 173.2 76.9 - 2.9
Profit/(Loss)
before Tax 415.9 705.4 4.2 (284.7) 3.1 44.3 354.1 (127.3) 24.8 (9,651) 1,922.4 (0.1) (3.4) (4.1) (12.1)
Provision for Tax 231.0 250.5 7.7 - 95.5 (0.1) 8.1 10,000 166.5 0.5 3.1 - -
Profit/(Loss) after Tax 184.9 454.9 (3.5) (284.7) 3.1 44.3 258.6 (127.2) 16.7 (19,651) 1,755.9 (0.6) (6.5) (4.1) (12.1)
Proposed dividend - - - - - - 61.0 - - - - - - - -
Notes:
1. The Ministry of Corporate Affairs has exempted the Company from attaching to its Balance Sheet, certain information specified in Section 212(1) except that mentioned in Section 212(1)(e) of the said Act, pertaining to
2. Investment (other than in subsidiaries) in Multicare Pharmaceuticals Philippines Inc., Philippines is Rs. 15,896/- and in Hormosan Pharma GmbH, Germany is Rs. 30,270/-
3. Provision for Tax in Lupin Australia Pty Ltd., Australia is Rs. 15,592/- and Lupin Pharmacare Ltd., India is (Rs. 19,975/-)
4. The negative figures of Reserves in case of few subsidiaries are net impact of accumulated losses.
5. In compliance with Clause 32 of the Listing Agreement, audited consolidated financial statements form part of this Annual Report.
6. Full accounts of the aforesaid subsidiaries are available for inspection at the Registered Office of the Company and on request will be sent to members free of cost.

Notes
168
Notes

Notes
170
give me six hours to

chop down a tree and
I will spend the first
four sharpening
the axe
Abraham Lincoln
LUPIN LIMITED
Corporate Office
Laxmi Towers, 'B' Wing, Bandra Kurla Complex
Bandra (East), Mumbai 400 051
Tel: + 91 22 6640 2222
Fax: + 91 22 6640 2130
Registered Office
159, C.S.T. Road, Kalina
Santacruz (East), Mumbai 400 098
Tel: + 91 22 6640 2323
Fax: + 91 22 2652 8806
Email
investorservices@lupinpharma.com
hocommunications@lupinpharma.com
Website
www.lupinworld.com

2010
GO!

Lupin AR 2010 - High Res - BBL

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Spine has to adjusted by the printer at his end

the science and art of Lupin

Spine has to adjusted by the printer at his end

give me six hours to

Spine has to adjusted by the printer at his end

1980 Lupin commissions formulation plant and R&D centre at Aurangabad

1992 Injectable Cephalosporins plant commissioned at Mandideep

1997 Three Lupin plants (Mandideep, Tarapur and Ankleshwar) receive

2001 Lupin Research Park (global R&D hub) commissioned at Pune

2004 Branded business starts in the US with the launch of Suprax®

2005 Generic business launched in the US with five products

2007 Lupin acquires Kyowa Pharmaceutical Industry Company, Japan

2008 Lupin makes acquisitions in Germany, Australia, South Africa and

Lupin is at the tipping

With Best Wishes

03 LUPIN Annual Report 2010

Lupin Research Park, Pune 04

06 Financial Highlights 34 Research & Development

05 LUPIN Annual Report 2010

Sales (Gross) 47,678

anything worth (INR million)

doing is worth 20,717

Revenue Composition EBIDTA

Profit Before Tax 8,357 Consolidated Net Profit

Market Break Down

3,051 5,094 10,032 19,654 26,405

Business Mix Geographic Break Down

Earning Per Share (Basic) 楶楤敮

07 LUPIN Annual Report 2010

Dr Desh Bandhu Gupta, Chairman

Lupin Manufacturing Plant, Indore 08

SENIOR MANAGEMENT TEAM COMPANY SECRETARY & SOLICITORS

09 LUPIN Annual Report 2010

at the heart of Lupin's

In FY 2010, net sales grew by 26% to INR 47,405 Advanced Markets

GROSS SALES 47,678

INR million INR million INR million

11 LUPIN Annual Report 2010

In addition to being the 8th largest Generic player in

RESEARCH AND DEVELOPMENT

We recognized very early in Lupin that focused long-term

13 LUPIN Annual Report 2010

Lupin has clearly broken

Lupin's Advanced Markets business in US and Europe

US & Europe | India | ROW | API | R&D | HR | Financial Commentary | CSO

The Company received 7 approvals from the US FDA

15 LUPIN Annual Report 2010

ANDA Pipeline DMF Pipeline

US & Europe | India | ROW | API | R&D | HR | Financial Commentary | CSO

During the year, the Company made its second

17 LUPIN Annual Report 2010

the Company has completely realigned its focus France

US & Europe | India | ROW | API | R&D | HR | Financial Commentary | CSO

19 LUPIN Annual Report 2010

Lupin today is the fastest

US & Europe | India | ROW | API | R&D | HR | Financial Commentary | CSO

Top Ten Lupin Brands

GLUCONORM ANTI DIABETIC 2 Anti Tb 10%

DOXCEF CEFPODOXIME SOLIDS 7

(ORG IMS Mar 10)

GROWTH DRIVERS Marketing Strategy & Execution

21 LUPIN Annual Report 2010