For the year ended 31st March 2012 2012 2011 Cash Flow from Operating Activities Net

profit before tax Adjustments for: Depreciation and Amortisation expense Interest expense Unrealised foreign exchange gains (Net) Provision for doubtful debts and advances (Net) Interest income Dividend income Profit on sale of investments (Net) Loss on sale/discard of fixed assets (Net) Rent income Operating profit before working capital changes Adjustments for : (Decrease)/Increase in trade payables and other liabilities Decrease/(Increase) in inventories Decrease in trade and other receivables Cash generated from operations Direct taxes paid (Net) Net cash from operating activities (A) Cash Flow from Investing Activities Purchase of fixed assets/Capital work-in-progress Sale of fixed assets Purchase consideration for acquisition of undertaking Investment in subsidiaries Investment in associates Investment in joint venture Share application money Purchase of other investments Sale of other investments Interest received Dividend received Rent received Loans given to subsidiaries (Net) Short term deposits repaid (Net) Net cash used in investing activities (B) Cash Flow from Financing Activities Proceeds from long term and other borrowings Repayment of long term and other borrowings Interest paid Dividend paid

1421.46 282.07 12.13 -27.56 54.5 -8.97 -36.29 -0.56 36.85 -2.83 309.34 1730.8 10.08 58.66 167.82 236.56 1967.36 -322.27 1645.09 -548.6 4.28 -30.64 0 -114.78

1151.39 248.03 5.14 -5.41 0.48 -7.54 -8.97 -0.3 19.78 -1.65 249.56 1400.95 -55.19 -370.58 267.89 -157.88 1243.07 -255.73 987.34 -687.76 12.57 -328 -114.78

-33.54 -8.1 -7468.07 -5228.18 7118.92 5251.25 9.23 11.88 36.29 8.97 2.83 1.67 -53.34 -204.47 64.55 -1046.78 -1136.26 200 -628.47 -12.13 -160.58 867.74 -428.39 -5.14 -160.58

Tax paid on dividend Interim dividend paid Tax paid on interim dividend Net cash from/(used in) financing activities (C) Net increase/(decrease) in cash and cash equivalents (A)+(B)+ Cash and Cash Equivalents as at the beginning of the year Cash and Cash Equivalents as at the end of the year

-26.05 -64.23 -10.67 -627.23 -28.92 83.98 55.06

-26.67

172.06 23.14 60.84 83.98

Cash Flows from operating activities Profit before taxation Adjustments: Depreciation and amortization expense Provision for wealth tax Dividend from mutual fund units Amortization of deferred stock compensation expense, Unrealised foreign exchange (gain) / loss, Profit on sale of current investments, net Provision for decline in the value of long-term investments Reversal of provision for decline in the value of long-term investments Interest income Finance costs Cost of issuance of bonus debentures Loss on sale of fixed assets, net Allowance for sales returns Provision for inventory obsolescence Provision for doubtful debts, net Provision for doubtful advances, net Operating cash flows before working capital changes Increase in trade receivables Increase in inventories (Increase) / Decrease in loans and advances and other assets Decrease in liabilities and provisions Cash generated from operations Income taxes paid, net Net cash provided by operating activities Cash flo ws from / (used in ) inve sting activitie s Purchase of fixed assets Proceeds from sale of fixed assets Purchase of investments Proceeds from sale of investments Dividend from mutual fund units Long term loans and advances (given to) / repaid by subsidiaries, joint ventures & associates Interest received Net cash (used in) investing activities Cash flows from / (used in) financing activities Proceeds from issue of share capital Repayment of long term borrowings Proceeds from long term borrowings Repayment of short term borrowings Proceeds from short term borrowings

Interest paid Cost of issuance of bonus debentures Dividend paid Net cash from / (used in) financing activities Net in crease / (de crease) in cash and bank balances Cash and bank balances at the beginning of the year Effect of exchange gain on cash and bank balances Cash and bank balances at the end of the year

2012 12592 3011 3 -2 403 2172 -158 2100 -175 -614 636 51 33 485 901 103 -87 21404 -1418 -3536 580 938 17968 -3938 14030 -6012 29 -13704 11780 2 3118 580 -4235 6 -2 25078 -21162 22053

2011 10519 2479 3 -58 268 -820 -10 557 -455 53 12 395 731 -2 -438 13285 -6913 -2389 -1511 2103 4575 -2112 2463 -6964 -11624 12602 58 -704 473 -6130 29 -5 -12213 15955

-629 -51 -2216 -1949 7846 662 -18 8490

-42 -8141 610 -3057 3680 39 662

CASH FLOW FROM OPERATING ACTIVITIES Net profit before tax and exceptional items 1,820.4 8,341.6 Non-cash adjustments to reconcile profit before tax to net cash flows Depreciation and amortization 1,429.4 1,250.4 Provision for trade receivables 94.6 2.0 Bad debts written off 32.9 34.4 Provision for diminution on investment 268.7 105.0 Balances no longer required written back (14.3) (2.0) Unrealized foreign exchange loss/(gain) (Net) 886.9 (278.4) Profit on sale of fixed assets (Net) (5.8) (2.4) Interest expense 730.3 373.2 Interest income (71.0) (45.3) Operating profit before working capital changes 5,172.1 9,778.5 Movements in working capital: Decrease/(increase) in trade receivables 787.1 (3,328.8) Decrease/(increase) in inventories 417.6 (3,162.0) Decrease/(increase) in long-term loans and advances (303.1) (38.7) Decrease/(increase) in short-term loans and advances 1,149.3 (823.5) Decrease/(increase) in other current assets (380.7) 54.9 Increase/(decrease) in trade payables (1,506.3) 1,908.0 Increase/(decrease) in provision for retirement benefits (6.1) 55.5 Increase/(decrease) in other current liabilities (4.4) (228.3) Cash generated from operations 5,325.5 4,215.6 Direct taxes paid (Net of refunds) (285.0) (1,769.9) NET CASH FLOW FROM OPERATING ACTIVITIES (A) 5,040.5 2,445.7 CASH FLOW FROM INVESTING ACTIVITIES Purchase of fixed assets, including capital work-in-progress and capital advances (4011.9) (5,164.9) Proceeds from sale of fixed assets 5.1 27.6 Purchase of non-current investments made in subsidiaries (1,532.9) (2,001.9) Investment in bank deposits 4.7 Proceeds of non-current investments 388.1 Loans to subsidiaries (Net) 264.7 1096.8 Share application money to subsidiaries (105.9) (96.4) Share application money to others (12.2) (8.3) Interest received 54.9 56.9 NET CASH FLOW USED IN INVESTING ACTIVITIES (B) (5338.2) (5,697.4) (All amounts in Indian Rupees million, except share data and where otherwise stated) Aurobindo Pharma Limited Annual Report 2011-12 63 Year ended Year ended March 31, 2012 March 31, 2011 CASH FLOW FROM FINANCING ACTIVITIES Proceeds from issuance of share capital 10.8 Proceeds from long term borrowings 7,461.2 4,096.3 Repayment of long term borrowings (1487.0) (898.0) Repayment of FCCBs (6,207.6) (97.7)

Redemption premium (Yield to Maturity) on redemption of FCCBs (3,198.6) Proceeds from short term borrowings (Net) 3,667.6 2,124.3 Interest paid (681.7) (329.8) Dividend and dividend tax paid (338.2) (474.7) NET CASH FLOW FROM FINANCING ACTIVITIES (C) (784.3) 4,431.2 NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (A+B+C) (1,082.0) 1,179.5 EFFECT OF EXCHANGE DIFFERENCES ON CASH AND CASH EQUIVALENTS 2.8 Cash and cash equivalents at the beginning of the year 1,222.1 39.8 Cash and cash equivalents at the end of the year 140.1 1,222.1 Components of cash and cash equivalents Cash and bank balance include: Cash on hand 6.5 6.8 Balance with banks: Current accounts 31.9 21.9 Cash credit accounts 96.3 8.2 Fixed deposit accounts 1.2 1,181.2 Unpaid dividend accounts* 5.4 5.2 Cash and bank balance as per Balance Sheet 141.3 1,223.2 Less: Fixed deposits considered as investments 1.2 1.2 Total cash and cash equivalents (Refer Note 18) 140.1 1,222.1