Bacil Pharma Ltd

To

The Members,

BACIL PHARMA LIMITED.

The Directors have pleasure in submitting the Annual Report along with the auditedstatement of accounts for the year ended March 31, 2010.

FINANCIAL HIGHLIGHTS

The Company was unable to procure any Export Order of Agro Products and no shipment wasexported during the year under review.

The Income from operation during the year was Rs. 1,28,000/- as compared to Rs.16,21,994/- in the previous year. Due to loss for the current year, your Directors areunable to recommend any dividend.

No activities were carried out at the plant of the company and the expenses pertainingto the said facility were included under the head project pre-operative expenses pendingallocation, as per past practice.

CORPORATE GOVERNANCE

Your Company has ever been an ardent practitioner of the core values of corporategovernance. A separate report on Corporate Governance is attached herewith.

DIRECTORS’ RESPONSIBILITY STATEMENT

Pursuant to Section 217(2AA) of the Companies Act, 1956 the Directors confirm that:

1) In the preparation of the annual accounts, the applicable accounting standards hadbeen followed;

2) Appropriate accounting policies as mentioned in Schedule No. 12 have been selectedand applied consistently and have made judgments and estimates that are reasonable andprudent so as to give a true and fair view of the state of affairs of the Company as at31st March, 2010 and of the loss for the year ended on that date;

3) Proper and sufficient care has been taken for the maintenance of adequate accountingrecords in accordance with the provisions of the Companies Act, 1956 for safeguarding theassets of the Company and for preventing and detecting fraud and other irregularities;

4) The annual accounts have been prepared on a going concern basis.

DIRECTORS

Dr. L. L. Hingorani, Director retire by rotation and being eligible offer himself forreappointment.

LISTING AGREEMENT

The Shares of the Company are listed on Bombay Stock Exchange Ltd. (BSE), AhmedabadStock Exchange Ltd. (ASE) and The Delhi Stock Exchange Association Ltd. (DSE) and havepaid Annual Listing Fees for the year 2010-2011 to BSE. The Company has initiated theprocess of voluntarily delisting of its securities from ASE and DSE.

PERSONNEL

No employee is receiving remuneration beyond the limit prescribed under the provisionsof Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars ofEmployees) Rules, 1975 as amended up to date.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING AND OUTGO

Since the Company has not commenced any manufacturing activity, information aboutConservation of energy and technology absorption is not applicable.

The Company has no foreign exchange earning and outgo during the year under review.

AUDITORS

M/s. A. W. Ketkar & Co., Chartered Accountants, Auditors of the Company retires onconclusion of the ensuing Annual General Meeting. They are eligible for reappointment andmembers are requested to appoint the auditors.

ACKNOWLEDGEMENT

The Board wishes to place on record its appreciation for the valuable Co-operation andsupport extended by Employees, Registrars and other agencies. We are also grateful to allthe Shareholders for reposing their confidence in the Company.