The above unaudited financial results were reviewed by the Audit Committee and have been approved by the Board at its meeting held on February 5, 2011. A Limited Review of the above stand alone financial results has been carried out by the Statutory Auditors.

The Consolidated financial results, which are optional, have been presented by the Company, so as to provide additional information.

The consolidated financial results have been prepared in accordance with AS - 21 on 'Consolidated Financial Statement', AS-27 ' Financial Reporting of Interests in Joint Ventures' and includes financial results of all subsidiaries and Joint Ventures.

The Company's operations fall within a single primary business segment viz. 'Pharmaceutical Products'.

Investor complaints pending at the beginning of the quarter: Nil, received: 105, resolved: 105 and lying unresolved at the end of the quarter: Nil.

Sales for the quarter include exports of Rs.74,130 lakhs (Rs.51,988 lakhs). Stand alone sales also include dossier income of Rs. 12,651 lakhs
( Rs.4,295 lakhs) and Consolidated sales include dossier income of Rs. 12,036 lakhs (Rs.9,070 lakhs).

Foreign Exchange (Gain)/Loss represents exchange differences arising on all foreign currency transactions. This includes gain during the quarter due to restatement of Foreign Currency Convertible Bonds (net of Deposits) Rs.320 lakhs (Rs.2,977 lakhs).

In respect of matter referred to in the limited review report by the Auditors for the quarter ended December 31, 2010 relating to non- provision of premium on redemption of outstanding USD 139.20 Million Zero Coupon Foreign Currency Convertible Bonds (FCCBs), the management is of the opinion that it is contingent in nature, as the determination and crystallisation of liability is dependent upon the outcome of uncertain future events or actions, not wholly within the control of the Company.

The paid up share capital of the Company has increased during October-December 2010 to Rs. 2911.21 lakhs as a result of allotment of 2,700 Equity shares of Rs.5/- each at a premium of Rs. 357.60 per share under ESOP 2004 Scheme by the Compensation Committee of the Company at their meeting held on December 30, 2010.

During the quarter, the Company has incorporated new step down subsidiaries viz., Aurobindo Pharma (Romania) s.r.l in Romania, Aurobindo Pharma (Poland) Sp.z.o.o. in Poland and Aurobindo Pharma Limited, s.r.l, in Dominican Republic.

SIA Aurobindo Baltics, Latvia, a step down subsidiary has been liquidated effective November 26, 2010.

The Group has sold its entire stake in Cephazone Pharma LLC, a Joint Venture of one of its overseas subsidiaries in USA. Also, the Company has entered into a definitive agreement to divest its 80.50 % stake in one of its 100 % subsidiaries namely Aurobindo Datong Bio Pharma Co. Ltd., China (ADBPL) effective November 30, 2010. Thus, the Company's balance stake of 19.50% in ADBPL will be strategic in nature to ensure uninterrupted supply of raw materials at competitive prices. The impact of the above two arrangements has been disclosed as an exceptional item.

The members of the company in Extraordinary General Meeting held on December 23, 2010 have approved as a Special resolution for the sub-division of equity shares of the face value of Rs. 5/- each in the Company into equity shares of the face value of Rs.1/- each. The Company has fixed February 11, 2011 as record date for the said purpose.

Figures given in brackets in the Notes represent amount of the corresponding quarter of the previous year. Figures for the previous periods/year have been rearranged/regrouped wherever necessary.