R A N B A X Y LABORATORIES LIMITED Standalone Unaudited  Financial Results (Provisional) for three months and year ended 31st December, 2008 Rs Million   Three months ended Twelve months ended Particulars 31/12/2008 31/12/2007 31/12/2008 31/12/2007       Audited           Sales         -  Domestic 3,904.67 3,586.57 15,393.52 14,412.31 -  Exports 5,688.37 6,452.68 27,946.85 26,300.56 Sales 9,593.04 10,039.25 43,340.37 40,712.87 Less : Excise duty 46.99 106.05 289.30 446.90 Net Sales 9,546.05 9,933.20 43,051.07 40,265.97 Other Operating Income 581.19 401.14 1,894.17 1,152.09 Total Expenditure 12,027.78 8,348.68 39,475.99 32,601.67 Increase in stock in trade (253.26) (122.45) (1,809.18) (406.57) Consumption of Material 3,081.41 3,771.78 15,489.03 15,133.39 Purchase of Traded Goods 1,105.02 896.56 4,225.76 3,086.31 Employee Cost 1,060.31 1,204.22 4,800.69 4,216.14 Foreign Exchange Loss/ (Gain) 3,073.00 (800.00) 2,711.04 (2,043.39) Depreciation & Amortisation 337.47 300.28 1,253.87 1,187.31 Other Expenses  3,623.83 3,098.29 12,804.78 11,428.48 Balance (1,900.54) 1,985.66 5,469.25 8,816.39 R & D Expenditure 1,233.00 1,342.99 4,325.63 4,139.44 (Loss)/Profit from Operations before Other Income, Interest & Exceptional Items (3,133.54) 642.67 1,143.62 4,676.95 Interest & Other Income 617.89 46.82 912.56 523.79 (Loss)/Profit before Interest & Exceptional Items (2,515.65) 689.49 2,056.18 5,200.74 Finance cost     Interest 351.53 247.63 1,442.63 934.26 Foreign exchange Loss/(Gain) on loans 1,715.01 (79.28) 7,491.40 (3,120.28) (Loss)/Profit after Interest but before Exceptional Items (4,582.19) 521.14 (6,877.85) 7,386.76 Exceptional Items     Loss on fair valuation of derivatives (7,843.00) (7,843.00)  Provision for Inventory write off   (2,441.36) Profit on sale of Fixed Assets   234.99 895.16 587.50 Provision relating to a subsidiary company (net)     90.20 Provision for diminution in carrying cost of fixed assets     (129.40) Compensation for termination of supply arrangement   (191.00)   (191.00) (Loss)/Profit from Ordinary Activities before  Tax (12,425.19) 565.13 (16,267.05) 7,744.06 Tax (4,359.65) 81.11 (5,943.71) 1,566.86 Net (Loss)/ Profit from Ordinary Activities after Tax (8,065.54) 484.02 (10,323.34) 6,177.20 Paid - up Equity Share Capital  2,101.85 1,865.35 2,101.85 1,865.35 (Face value of Rs. 5 each)     Reserves excluding revaluation reserves         23,506.81 Earnings Per Share (Rs.)           Before exceptional items     Basic (7.03)                1.17 (11.03)           15.76 Diluted (7.03)                0.72 (11.03)           10.57 After exceptional items           Basic (19.63)                1.30 (26.96)           16.56 Diluted (19.63)                0.85 (26.95)           11.31 Aggregate of Public shareholding #      -  Number of shares       144,431,309 23,23,25,873      144,431,309 23,23,25,873 -  Percentage of shareholding 34.36% 62.27% 34.36% 62.27% # Aggregate Public shareholding as defined under Clause 40A of the Listing Agreement (excludes shares held by Promoters and GDRs) Notes: 1 Other Operating income mainly includes export benefits and share of revenue from Bayer A.G. on Ciprofloxecin OD. 2 Employee cost related to R&D is included under the head " R&D Expenditure". 3 Foreign exchange Loss/(Gain) on loans represents exchange differences arising during the period(s) on foreign currency borrowings including Foreign Currency Convertible Bonds. 4 (A)  Pursuant to ICAI Announcement “Accounting for Derivatives” on the early adoption of Accounting Standard AS 30 - Financial Instruments: Recognition and Measurement", the Company has early adopted the said Standard with effect from Oct 1, 2008, to the extent that the adoption does not conflict with existing mandatory accounting standards and other authoritative pronouncements, company law and other regulatory requirements. Pursuant to the adoption:- (i)  Transitional loss mainly representing the loss on fair valuation of foreign currency options, determined to be ineffective cash flow hedges on the date of adoption, amounting to Rs 11,788 Million (net of tax) has been adjusted against the opening balance of revenue reserves as of Jan 1, 2008. ( ii) Loss on fair valuation of forward covers, which qualify as effective cash flow hedges amounting to Rs. 723 Million ( net of tax), on the date of adoption, has been recognized in the hedging reserve account. (B) For the quarter, foreign exchange loss arising on account of change in fair value of foreign currency options determined to be ineffective cash flow hedge, amounted to Rs.7,843 Million before tax and has been recognised under 'Exceptional items'. Net of tax the loss is Rs 5,177 Million. 5 The Company received a sum of Rs. 35,848.78 Million during the quarter consequent to the allotment of equity shares and warrants on preferential basis to Daiichi Sankyo Company Limited, Japan. These proceeds have been utilized in line with the objects of the preferential issue, towards repayment of borrowings Rs. 24,876.05 Million ; Strategic investment of Rs. 1,248.73 Million and remaining amount of Rs. 9,724 Million has been kept as fixed deposits, as on Dec 31, 2008. 6 The total number of Employee Stock Options outstanding as at Dec 31, 2008 are 7,272,849 of which 3,450,209 have vested. 7 The Company operates solely in the Pharmaceutical business and hence has only one reportable segment. 8 Status of investor complaints: a) Pending as on Sep 30,2008-Nil; b) Received during the quarter-36; c) Disposed off during the quarter-36; d) Pending as on Dec 31, 2008- Nil. 9 Daiichi Sankyo Company, Limited has become Promoter of the Company with effect from Nov 7, 2008 and holds 2,68,711,323 Equity Shares constituting 63.92% of the Issued, Subscribed and Fully Paid-up Equity Share Capital of the Company. 10 The Board of Directors (“Board”) of the Company was reconstituted on Dec 19, 2008 and Mr. Malvinder Mohan Singh was elected as Chairman of the Board and appointed as Chairman, CEO & Managing Director of the Company for a further period of five years effective December 19,2008 subject to requisite approvals. 11 As regards the import alert issued by the US FDA on Sep 16, 2008 for some of the products manufactured at two of the facilities of the Company, there has been no further significant development. 12 Figures for previous periods have been regrouped and recast wherever necessary to make these comparable with those for the current periods. 13 The above results were reviewed by the audit committee and approved by the Board of Directors at their meeting held on Jan 22, 2009. By order of the Board Malvinder Mohan Singh Chairman,CEO & Managing Director Place : Gurgaon Date : Jan 22, 2009 Regd. Office : A-11, Industrial Area, Sahibzada Ajit Singh Nagar (Mohali) - 160 055 (Punjab)