GOLDSHIELD
Group plc  
Annual Report
and Accounts
Financial Statements for the year ended 31 March 2007 1
Contents
Page
Directors, Secretary and Advisors 2
Business Highlights 3
Chairman’s Overview 4
Chief Executive Officer’s Operating Review 6
Report of the Finance Director 7
Five Year Review 9
Directors 10
Report of the Directors 11
Corporate Governance Report 17
Corporate Social Responsibility 21
Directors’ Remuneration Report 22
Report of the Independent Auditor on the Consolidated Financial Statements 27
Consolidated Income Statement 29
Consolidated Balance Sheet 30
Consolidated Cash Flow Statement 31
Consolidated Statement of Changes in Equity 32
Notes to the Financial Statements 33
Report of the Independent Auditor - Company 51
Company Balance Sheet 53
Notes to Company’s Financial Statements 54
Notice of Annual General Meeting 59
Financial Calendar 62
Useful Information Sources for Shareholders 63 2
Company registration number: 2330913
Directors, Secretary and Advisors
Principal business address:
NLA Tower
12-16 Addiscombe Road
Croydon
Surrey CR0 0XT
Registered office:
Bensham House
324 Bensham Lane
Thornton Heath
Surrey CR7 7EQ
Directors:
Dr. Keith Hellawell QPM (w.e.f. 15 May 2006)
Peter M Brown
Ajit R Patel
Kirti V Patel
Ajay M Patel
Rakesh V Patel
Mike Reardon
Ken O Pelton
Secretary:
S Venkateswaran
Principal bankers:
The Royal Bank of Scotland plc
280 Bishopsgate
London EC2M 4RB
Solicitors:
Jones Day
Solicitors
21 Tudor Street
London EC4Y 0DJ
Auditor:
Grant Thornton UK LLP
Registered Auditors
Chartered Accountants
Grant Thornton House
Melton Street
Euston Square
London NW1 2EP
Brokers:
Panmure Gordon & Co Limited
155 Moorgate
London EC2M 6XB
Numis Securities Limited
Cheapside House
138 Cheapside
London EC2V 6LH
Registrars:
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU 3
31 March 31 March
2007 2006
£’000 £’000
Trading results
Revenue 74,274 80,025
Profit before tax 603 6,807
(Loss)/profit after tax (1,763) 3,880
Proﬁt before tax is stated after charging the following items
Research and development expenditure 115 237
Amortisation costs 4,661 5,880
Impairment losses 3,800 2,992
Professional costs in connection with Serious Fraud Ofﬁce investigation and
Department of Health claims 5,602 1,651
Balance sheet
Non-current assets 26,411 32,321
Current assets 43,785 38,065
Total assets 70,196 70,386
Non-current liabilities 1,117 1,649
Current liabilities 28,397 23,265
Total liabilities 29,514 24,914
Equity 40,682 45,472
Total equity and liabilities 70,196 70,386
Shareholder returns
(Loss)/earnings per share
Basic (pence) (4.7) 10.5
Diluted (pence) (4.7) 10.4
Dividends
Proposed dividend per share (pence) 5.1 5.1
Dividends paid during the period (pence) 6.8 6.2
Business Highlights The threat of legal action against the Company and two of its Directors for alleged conspiracy to
defraud arising out of the sale of warfarin in the late 1990’s has had a detrimental effect on the
share price. A substantial amount of Directors time and millions of pounds in legal fees have been
soaked up as a result. However, the major clients and shareholders have continued to support the
business and the management team which is to their great credit. 
Since my appointment we have addressed the problems the Company faces in order to establish
more certainty for the future. In this regard, on the 22 June 2007, without admission of liability,
we reached a £4.0 million full and ﬁnal settlement with the Department of Health (DoH). We are
also pursuing through the Court of Appeal our belief that the “crime” the Company is charged with,
which we do not believe we committed, is not in fact a criminal offence. The Company is also
seeking clariﬁcation as to its potential liability in the event that that argument is not successful.
In April 2007, we announced we were undertaking a strategic review of our business. Our
conclusions were that we focus once again on our core Pharmaceutical and Healthcare operations
which I expand on below.
A consequence of the litigation is that our CEO, and founder of the Company, Ajit Patel decided to
step down from the Board in order to have more time to prepare his defence. 
The other founding member of the Company Kirti Patel, has also handed his resignation to the
Board in order to have more ﬂexibility in preparing for his upcoming trial. However, we are pleased
he has agreed to work his notice period. His expertise and contacts will be of considerable help as
we re-energise this activity.  
The Board wish them both well and thank them wholeheartedly for their vision in setting up the
business and their personal commitment and dedication to its success.
We are delighted to announce that Rakesh Patel, our Finance Director has been appointed CEO.
He has 15 years experience within Goldshield, is well respected by the staff and known within the
city. I feel sure he will make a huge contribution to the Company’s growth over the coming years.
We are looking to make an early appointment of a new Finance Director to replace him.
Strategy review
The review of our activities demonstrated the considerable potential of the Pharmaceuticals and
Healthcare divisions. We have two strong activities which need management time and
commitment to ensure that they deliver on their potential. This “focus” will be an important
aspect of the development of our Company.
Within Pharmaceuticals, the major drug companies are selling off the products as their patent
expires. Over a number of years we have developed considerable experience of acquiring and
developing these products. Indeed, it is interesting to note that in the period since 2003 the
performance of our existing portfolio of products has only marginally declined. Yet this has been a
period of no new product acquisitions and when management time has been focused on other
parts of the Company. I would add that the relocation of some of our administrative activities to
India has helped Goldshield to maintain margins in a highly competitive environment. We believe
that this efﬁciency will be of value to Goldshield as we focus on growth.
In Healthcare, there is change within the UK and European regulatory environment. These new
changes place regulatory requirements on all UK and European organisations which will require
them to have access to medical and regulatory infrastructure which Goldshield already has in
place in its Pharmaceutical division. The Directors believe that this will be beneﬁcial to
Goldshield. In addition, some of our new products such as LIPObind, a Medicines and Healthcare
products Regulatory Agency (MHRA) approved medical device, have attractive growth prospects. 
During its development, Goldshield has established an extensive distributor base. We now have
distribution channels in over sixty countries with access to doctors, pharmacies and hospitals. We
need to exploit this potential with the acquisition of more products and more marketing
commitment. It is a good opportunity for the Group. 
4
Chairman’s Overview 5
It has been decided that we will dispose of certain of our non-core Indian business and assets and
we have entered into an agreement with Ajit Patel for him to acquire these operations. A circular
with full details of these disposals is being sent to shareholders. 
Both the Wellbeing villages and the resort in Goa offer long term potential. As soon as planning
permissions have been obtained, we will consider co-developing the land under a joint venture.
We will therefore commit no further signiﬁcant resources to these operations.
In addition to the changes at executive Director level, two important retirements mean further
changes. Peter Brown, the former Chairman of the Board and Ken Pelton, the longest serving non-
executive Director, have each decided not to seek re-election at the next Annual General Meeting.
They have provided an invaluable service to the Group, for which I would like to offer my sincerest
thanks.
We are delighted to announce the appointment of one new non-executive Director. Nick Woollacott,
a main board member of Latice Group plc (now merged with the National Grid) and until recently
the senior independent Director of Enterprise plc, is expected to join the Board in August, 2007.
He brings with him a wealth of experience and a history of success which will contribute to our
progress. We are also interviewing other candidates for non-executive Director positions.
Conclusion
The last few years have been demanding for shareholders. The DoH and SFO charges together with
the development of new activities in India have all been distractions away from the core business.
Yet, it has continued to perform well. I am conﬁdent that the combination of the decisions outlined
above together with re-focused attention on the Pharmaceuticals and Healthcare divisions will lead
to a return to growth.
Commentary on the results for the Group are contained in the Report of the Directors, pages 11 
to 16.
Dr. Keith Hellawell QPM
Chairman
26 June 2007
Chairman’s Overview
(continued) 6
It is my pleasure to report on the year ended 31 March 2007. We have made some good progress
despite facing difﬁculties over the past 12 months. I would add that the settlement with the
Department of Health (DoH) comes at a very important time.  
Despite the challenges the Group has experienced over the past 12 months, we have continued to
make progress. The Group reported sales for the year of £74.3 million, which is lower than the
previous year of £80.0 million. We have announced a proﬁt before tax for the year of £0.6 million
(2006: £6.8 million). Pre-exceptional earnings before tax, amortisation and impairment losses
(EBTA) were below last year at £14.7 million (2006: £17.3 million). We have been impacted by
exceptional costs for the year primarily relating to legal costs of £5.6 million (2006: £1.7 million).
However, the business has continued to generate cash and at the year end the net cash position
had improved to £23.3 million (2006: £15.9 million).
Given the conﬁdence in the potential of the underlying business and the strong cash position, the
Board is recommending a dividend of 5.1 pence. The total dividend paid during the year has risen
to 6.8 pence. This is an increase of 0.6 pence from 2006.
The Group continues to deal with the ongoing Serious Fraud Ofﬁce investigation, which began in
April 2002. Going forward, we expect the next 18 months to be more demanding on myself, Kirti
Patel and other Directors as we prepare our defences which are expected to come to trial in
2008/9.
As shareholders will have seen, the strategic review has highlighted the Group’s potential. We have
concluded that we should focus on our core business of marketing and selling Pharmaceutical and
Healthcare products. We are proposing to divest ourselves of most of our service businesses with
the exception of the Wellbeing Clinics in India. Whilst the Indian Wellbeing villages and resort no
longer form part of the core strategy of the Company, the Directors believe that shareholder value
can be delivered by developing the Care village and resort sites in Goa by entering into a joint
venture development agreement. 
In order to concentrate on my legal case and to focus on developing a more service-oriented
business, I will be stepping down as the Group CEO and leave the Board on 2 July 2007.
Over the last ﬁve years we have developed a strong management team and I am very happy to
leave the Group in the hands of Rakesh Patel, our Finance Director who will become Chief
Executive. Rakesh has worked for the Group since 1992 and he has an excellent understanding of
our business. I am conﬁdent that he will drive the Group forward.
Ajit R Patel
Chief Executive Ofﬁcer
26  June 2007
Chief Executive Officer’s Operating Review 7
Turnover
The turnover for the year is lower at £74.3 million (2006: £80.0 million).
Revenues in the UK and Western Europe were lower at £66.6 million (2006: £71.0 million)
primarily due to decrease in sales of healthcare, retail brands and generics businesses. 
Revenues in North America were lower at £5.9 million (2006: £7.0 million). £0.4 million of this
is due to the weakening of the US dollar against sterling.
Service revenue in India is £1.8 million (2006: £2.0 million). The reduction is primarily due to the
weakening of the Indian rupee against sterling.
Gross proﬁt
The Group’s gross profit for the year was £48.1 million (2006: £51.6 million). The gross margin
achieved was 64.7% (2006: 64.5%).
Earnings and operating results
The Group Earnings Before Tax, Amortisation, Impairment and Exceptional costs was at £14.7
million (2006: £17.3 million). The reconciliation to the Group’s operating (loss)/profit is given below:
2007 2006
£’million £’million
Operating (loss)/profit (0.1) 6.5
Amortisation 4.7 5.8
Impairment losses 3.8 3.0
Exceptional legal and professional costs 5.6 1.7
Finance income/(costs) 0.7 0.3
EBTA 14.7 17.3
The Group operating loss was £0.1 million (2006: Profit £6.5 million) representing a margin of
(0.1%) (2006: 8.2%). The operating (loss)/profit is stated after charging:
� Exceptional legal and professional fees in connection with the SFO and DoH claims aggregating
to £5.6 million (2006: £1.7 million).
� Impairment of the carrying value of goodwill of the US, Regina business and of pharmaceutical
licences amounting to £3.8 million (2006: £3.0 million).
� In addition, the settlement with the DoH of £4 million has been fully provided for.
Research and development expenditure
Research and development expenditure incurred and written off directly to the profit and loss account
was £0.1 million (2006: £0.2 million). As at 31 March 2007 the Group does not have any capitalised
development expenditure (2006: £nil).
Taxation 
The taxation charge of £2.4 million (2006: £2.9 million) represents an effective tax rate (392%)
(2006: 43.0%). The tax charge is higher than the standard rate principally as a result of tax losses
due to amortization, impairment losses, a disallowance on account of provision for legal costs, and
the non deductibility of the tax losses on our US business. 
Deferred tax credit included in the tax charge was £1.2 million (2006: £0.5 million). The increase
in the credit for the year is mainly on account of timing difference in relation to legal costs.
Report of the Finance Director 8
Earnings and dividend
Basic loss per share is 4.7 pence (2006: earnings of 10.5 pence) and the diluted loss per share is
4.7 pence (2006: earnings of 10.4 pence).
The Directors propose a dividend of 5.1 pence per share (2006: 5.1 pence). 
The dividend paid during the year was 6.8 pence (2006: 6.2 pence). The proposed dividend will
be subject to approval at the Annual General Meeting, to be held on 8 August 2007, and is expected
to be paid on 20 August 2007 to Ordinary Shareholders on the register at the close of business on
27 July 2007.
Cash ﬂow and liquidity
During the year the Group generated £11.9 million from operating activities (2006: £12.9 million).
The primary use of the operating cash was towards the payment of corporation tax and dividends to
shareholders. In addition the Group has paid £1.7 million for land and building acquisitions in India
(2006: £0.7 million) being part of its Wellbeing initiatives.
At 31 March 2007 the Group had liabilities in respect of deferred consideration payments due on
acquisitions of £0.1million (2006: £0.2 million).
During the year the Group continued to consolidate its cash position and ended the year with a cash
balance of £23.3 million (2006: £15.9 million). The Group deployed it’s cash surpluses in money
market instruments, earning interest income for the year. The average rate of interest earned on short
term deposits during the year was 4.8%.
Rakesh V Patel
Finance Director
26 June 2007
Report of the Finance Director
(continued) 9
IFRS IFRS IFRS UK GAAP UK GAAP
2007 2006 2005 2004 2003
£’000 £’000 £’000 £’000 £’000
Trading results
Revenue 74,274 80,025 80,767 87,063 104,920
Operating (loss)/profit (98) 6,532 4,821 3,876 4,272
Profit before tax 603 6,807 4,503 3,315 3,528
(Loss)/profit after tax (1,763) 3,880 471 (582) (1,452)
Balance sheet
Non-current assets 26,411 32,321 40,056 50,089 60,622
Current assets 43,785 38,065 29,385 27,603 34,765
Total assets 70,196 70,386 69,441 77,692 95,387
Non-current liabilities 1,117 1,649 2,639 589 10,926
Current liabilities 28,397 23,265 23,513 33,658 36,770
Total liabilities 29,514 24,914 26,152 34,247 47,696
Net current assets/(liabilities) 15,388 14,800 5,872 (6,055) (2,005)
Cash and cash equivalents 23,321 15,855 6,168 186 2,433
Equity 40,682 45,472 43,289 43,445 47,691
Shareholder returns
(Loss)/earnings per share
Basic (pence) (4.7) 10.5 1.3 (1.6) (3.9)
Diluted (pence) (4.7) 10.4 1.3 – –
Dividends
Proposed dividend per share (pence) 5.1 5.1 4.5 2.5 1.45
Dividends paid during the period (pence) 6.8 6.2 4.0 2.45 4.35
Employee numbers
Average number of employees in the year 922 870 831 648 407 
Five Year Review 10
The Directors of the Company, none of whom are related to each other, are: 
DR. KEITH HELLAWELL QPM,LLB,MSc, LLD, Non-Executive Chairman, joined the board on 
15 May 2006. He has over forty one years experience in public sector management being a former
Chief Constable of two British police forces. Between 1998 and 2002, working directly to the Prime
Minister, he wrote and co-ordinated the United Kingdom national and international anti drugs policy.
During this time he also advised a number of other Governments and international bodies on drugs
policies. In addition he has over nine years experience in private sector management serving as a
non-executive Chairman or Director of a number of diverse companies including:- 1998/99 Evans of
Leeds (property), 2003/06 Dalkia plc (energy) and 2004/06 Sterience Limited (sterilisation plants)
both subsidiaries of the French company Veolia Env. He is an executive consultant to a Swedish
H.R. group and runs his own small communications company.
AJIT R PATEL Bpharm, MRPharmS, Chief Executive Ofﬁcer, co-founded Goldshield in 1989.
Having qualified as a pharmacist in 1982, he opened his own retail pharmacy business in 1984,
where he gained considerable experience in sales, marketing and outsourcing.
KIRTI V PATEL Bpharm, MRPharmS, Chief Operating Ofﬁcer, co-founded Goldshield in 1989.
Having qualified as a pharmacist in 1983, with interests in the areas of bio-pharmaceutics and
clinical pharmacology, he established his own pharmacy business in 1984. He is also a member
of the Institute of Pharmacy Management International, British Institute of Regulatory Affairs and
a fellow of the Royal Society of Medicine.
RAKESH V PATEL FCCA, Finance Director, joined Goldshield from Mercers Bryant in 1992 and
was admitted for membership of the Association of Chartered Certified Accountants in 1996. He
was appointed Finance Director of the Group in January 1998.
AJAY M PATEL BA (Hons) MIDM, DipCIM, DipMRS, Executive Director, joined Goldshield in
1993. Prior to this he was Group Sales and Marketing Manager at Colorama Processing
Laboratories. He was appointed Executive Director in January 1998.
MIKE REARDON MBA, BSc (Hons) Executive Director, joined Goldshield in January 2000. He
has over twenty years experience with SmithKline Beecham and Gruenenthal, where he was Area
Director for Asia Pacific, Middle East and Africa. More recently he has had world-wide
responsibility as Sales and Marketing Director of Porvair International. He was appointed to the
Board in June 2003.
PETER M BROWN FCA, FRSA, FID, FCIM, MILT , Independent Non-Executive Director, joined the
Board in August 2003. He has over 21 years experience as a Company Director and is Chairman
of Independent Remuneration Solutions Limited and Synergy Holdings Limited and also a director
of County Contact Centres plc and a number of private companies.
KEN O PELTON FCMA, MRPharmS, Independent Non-Executive Director, joined Goldshield in
1992. He has been a Director of Rizome Limited, IPID.COM Limited, Murray Johnstone
Developments Limited, Beamtech Limited, Integrated Micro Products plc and Pharmagene plc.
Directors 11
Report of the Directors
The Directors present their report together with the financial statements for the year ended 
31 March 2007.
Principal activities
The quoted Company is parent undertaking and did not trade with third parties during the year.
The Group is engaged in the development, marketing and distribution of pharmaceutical and
healthcare products.
Results and dividends
The profit before tax on ordinary activities of the Group was £0.6 million. The Directors propose a
dividend of 5.1 pence per Ordinary Share expected to be paid on 20 August 2007 to those
members on the register at the close of business on 27 July 2007. The dividend payments during
2007 amounted to 6.8 pence per Ordinary Share comprising of an interim dividend of 1.7 pence
per Ordinary Share paid on 9 January 2007 and a dividend of 5.1 pence per Ordinary Share paid
on 18 August 2006.
Operating review and future developments
Revenue for the year was £74.3 million compared to £80.0 million in the previous year. Pre-
exceptional profit before tax reduced from £11.5 million in the previous year to £10.0 million in the
current year representing 13.5 % of revenue. 
Emphasis during the year has been on maintaining the current business, building cash reserves and
evaluating our options for future growth. 
Pharmaceuticals division
The Pharmaceutical divisions achieved total sales of £54.6 million (2006: £56.5 million). Our
European retail brand business achieved sales of £31.3 million (2006: £32.3 million). The
decrease is attributable to a number of factors; product supply, delays in regulatory approvals and
the re-importation of export sales back into the UK by parallel importers. The parallel import issue
has now been addressed and we expect to see an improvement during the second quarter of the
next financial year.
We have continued to build our analgesic brand Codipar (Co-codomol) where sales have increased
to £2.9 million (2006: £1.8 million). Also, a major opportunity for the forthcoming year comes from
the PCT (Primary Care Trust) portfolio strategy. An initial start has been made on this project from
January and results, so far, are very encouraging.
Our Hospitals business in Europe recorded sales which were slightly ahead at £11.3 million (2006:
£11.1 million), despite the loss of certain NHS supply contracts due to the pricing strategies of
competitors. The European business has doubled its sales volumes since the previous year despite
product supply restrictions.
Two new products, Flexinozzles and Cophenylcaine were introduced into the Anaesthesia market.
We have a strong pipeline of new products scheduled for launch in the coming months. Zapain, an
adult paracetamol solution, has recently achieved UK registration and this will give us entry into the
Palliative Care sector. Our Autodetect epidural syringe has contributed to increased sales in UK and
Europe. Our range of differentiated bupivacaine epidural infusions have received DoH and National
Patient Safety Agency (NPSA) endorsement resulting in a large number of NHS trusts preparing to
switch to our infusions. Bufecaine infusion bags are planned to be introduced in the coming months,
which should also lead to increased sales.
The Group’s Retail Generics business recorded sales of £7.4 million (2006: £9.5 million). The
generic market remains price competitive. The focus has been to recover losses and to minimise
expenditure on loss making products.
Sales in our Country Distributor business were £4.7 million (2006: £3.7 million). This growth
came primarily from expanding the business with existing partners in South Africa, Australia and
Saudi Arabia. The performance of this business should improve with the establishment of new
product registrations and improved product supply. 12
Healthcare division
Sales for the direct to consumer units in Europe for the period were lower at £11.5 million (2006:
£14.1 million). Sales for the North American units for the period were also lower at £5.8 million
(2006: £6.9 million). The shortfall in sales in this area is a direct result of the increased
competition from generics and pressure on margins over the last three years. As a result, the
Company has been pursuing a more branded approach in these businesses. There are already 
some encouraging results which should yield a more positive outlook.
Recruitment of new customers at an acceptable cost continues to present the greatest challenge to
the division. A key strategy will be to build an extensive customer database with detailed profiles
across all regions. We plan to adopt an extensive personalised marketing approach focusing on
customer relationships. This will enable the increase of customer lifetime values and the number of
annual transactions being made across a wider portfolio of products. Strategies will be put in place
that focus on customer retention and loyalty.
Our Healthcare division will decentralise its tactical product development function on a regional
basis. Products will be customised to meet regional needs and lifestyle requirements. This will be
complemented by the launch of strategic group brands. This will lead to a faster time to market
with lower costs of development. The successful launch of a new product, LIPObind is testament
to this. As a brand, it will be less exposed to low-cost competitive generic alternatives and the roll
out across Europe. We expect the market in India to also provide a good contribution to sales.  
It is time to build the brands and to acquire new customers in what is, a price sensitive market. 
The growth of the Goldshield brand has been inhibited as price sensitive customers have moved 
to generic brands. Goldshield must therefore reposition the brands as a purveyor of quality
consumer health products. Our products must be priced to compete with the generic market whilst
allowing customers to follow a predetermined path to a branded solution.  
In the US, the focus will now be on maintaining market share. 
In India, the division will be split into two units: 
1. Healthcare India Products, which will continue to make inroads into the Indian market and
strengthen its global presence.
2. Wellbeing Centres which will be limited to its current two centres at Mumbai and Ahmedabad.  
Future developments
The last few years have been demanding for shareholders. The DoH and SFO charges together with
the demands of developing the new activities in India have distracted the management team from
the core business. It has continued to perform well despite this. We are confident that the
combination of the decisions outlined above together with the re-focus upon the Pharmaceuticals
and Healthcare divisions will assist with the Group’s strategy for growth.
Risk management objectives and policies 
Please refer to Note 20 in the Notes to the Financial Statements explaining the details on financial
risk management of financial instruments. General risk management objectives and policies are
contained in the Chairman’s Overview.
Report of the Directors
(continued) 13
Directors
The Directors who served during the year are set out below.
The beneficial interests of the Directors and their families in the shares of the Company at 1 April
2006 and 31 March 2007, as recorded in the register maintained by the Company, were as
follows:
5p Ordinary shares
31 March 2007 1 April 2006
Executive Directors
Ajit R Patel 3,300,000 3,300,000
Kirti V Patel 1,388,868 1,388,868
Rakesh V Patel 549,791 549,791
Ajay M Patel 360,000 360,000 
Mike Reardon 1,000 1,000
Non-executive Directors
Peter M Brown (Note 1) 100,000 100,000
Ken O Pelton 105,816 105,816
Dr. Keith Hellawell QPM – –
Note: 1. Twenty thousand of P M Brown’s shares are owned by Synergy Holdings Limited, a company controlled by him.
As at 20 June 2007 there had been no change in Directors’ shareholdings since 31 March 2007.
Details of Directors’ share options are set out in the Remuneration Report on page 25.
Rakesh V Patel and Ajay M Patel retire by rotation, and being eligible, offer themselves for re-
election at the Annual General Meeting.
Peter M Brown, who is over 70 years old, retires and has expressed his desire not to offer for 
re-election at the Annual General Meeting.
Ken O Pelton who joined the Board in 1992, retires and has expressed his desire not to offer for 
re-election at the Annual General Meeting.
Ajit R Patel has submitted his resignation and will leave the company on 2 July 2007.
Kirti V Patel has submitted his resignation and will leave the company on 31 December 2007.
Rakesh V Patel is the new Chief Executive Officer taking over from Ajit R Patel.
Employees
At 31 March 2007 the Group employed 913 personnel of whom 90 are based in the UK, 39 in
North America, 8 in Ireland/mainland Europe and 776 in India. The Group is an equal opportunities
employer and does not discriminate between employees on the grounds of race, ethnic origin, sex,
age or disability.
The success of the Group is dependent upon the quality and performance of its employees and
the Group continues to ensure this through continuous training and development, facilitated by
Investors in People.
The Board acknowledges that its staff are its most important asset. It places a strong emphasis on
the training and development of its employees through ‘on the job’ training and through staff
attending courses. This is a continuous process of training and all staff regularly attend courses on
communication, planning, decision-making and problem solving. In addition managers attend
courses and ‘on the job’ training on staff development, motivation, recruitment, appraisals and
team building. The Group also encourages staff to take vocational courses.
The Group encourages all of its employees to participate in its growth and welcomes staff input at
all levels. The Group is also operating a well-defined performance pay scheme, which is fair,
equitable, transparent and acts as a strong motivation to its staff.
Information about the Group’s activities is regularly communicated through notices and staff meetings.
Report of the Directors
(continued) 14
Employee sharesave scheme
An employee sharesave scheme is open to all eligible employees. Under the terms of the scheme
the Directors may offer options to purchase ordinary shares in the Company to employees who
enter into an Inland Revenue approved sharesave contract. The price of each share option was at 
a discount of 20% from the market price at the date of granting the options. Options may normally
be exercised during the period of six months after the completion of the sharesave contract.
Share options
During the year no fresh share options were granted to employees. Details of the options granted
so far are set out in note 12 to the financial statements.
Details of the Directors’ Share Options are shown in the Directors’ Remuneration Report on page 25.
Charitable and political donations
Donations to charitable organisations amounted to £81,880 (2006: £100,692).
Donations to political organisations amounted to £nil (2006: £nil).
Directors’ responsibilities
The Directors’ responsibilities are contained in the Statement of Directors’ Responsibilities.
Substantial shareholders
As at 12 May 2007 the Company has been advised of the following holdings, in addition to those
of the Directors disclosed above, of 3% or more of the nominal value of the Company’s shares:
Name Shareholding %
Schroder Investment Management Limited 9,401,300 25.3%
Barclays Global Investors 2,366,160 6.4%
Hermes Pension Management 2,232,591 6.0%
Halifax Share Dealing Services 2,148,735 5.8%
Axa Rosenberg 1,878,444 5.1%
Legal & General Investment Management 1,586,679 4.3%
Canada Life 1,288,766 3.5%
Payment policy and practice
It is the Group’s policy to settle the terms of payment with suppliers when agreeing the terms of
the transaction to ensure that suppliers are aware of these terms. In general the trading terms
entered into are payment at the end of the month following the month of invoice. Trade payables
due at the year end amount to 41 days purchases (2006: 45 days).
Research and development
Details of research and development expenditure are shown in the Report of the Finance Director
on page 7 under research and development expenditure.
Auditor
Grant Thornton UK LLP offer themselves for re-appointment as auditor in accordance with Section
385 of the Companies Act 1985.
Annual General Meeting
It is proposed that the next AGM be held on 8 August 2007, at 10.00 am, notice of which is set
out on pages 59 to 61. In addition to the proposed resolutions to receive the Report and
Accounts, declare a dividend, re-appoint Directors in accordance with the Company’s Articles of
Report of the Directors
(continued) 15
Association, to appoint Grant Thornton UK LLP as Auditor and to authorise the Directors to fix the
Auditor’s remuneration; and to approve the Remuneration Report, it is proposed that the following
business be transacted:
Directors’ authority to allot securities (Resolution 7 – Ordinary resolution)
The Directors seek to renew this authority each year at the AGM. The effect of resolution 7 is to
grant to the Directors authority to allot new securities limited to a maximum amount of £619,600
representing approximately one third of the Company’s issued share capital as at 31 March 2007
(being the date of the Company’s last Annual Accounts). This renewed authority would remain in
force for 15 months from the passing of the resolution or, if earlier, the next AGM.
Disapplication of pre-emption rights (Resolution 8 – Special resolution)
The Directors seek to renew this authority each year at the AGM. Under the Companies Act 1985,
shareholders have “rights of pre-emption” in relation to the issue of equity securities. This means
that if new shares in the Company are to be offered for subscription for cash they must first be
offered to the existing shareholders in proportion to their holdings at the time of such offer. The
Companies Act requires that the Directors seek the approval of the shareholders if they wish to
disapply these rights. The Directors are seeking authority to disapply pre-emption rights over
1,858,802 equity securities, representing approximately 5% of the issued share capital of the
Company as at 31 March 2007. This renewed authority would remain in force for 15 months
from the passing of the resolution or, if earlier, the next AGM.
Company’s authority to purchase its own shares (Resolution 9 – Special resolution)
The Directors are seeking to renew the authority for the Company to purchase in the open market
up to 10% of the issued share capital of the Company. The Company undertakes that it will, if
the resolution is passed, only exercise such authority to buy back its own shares if such purchase
would have the effect of increasing the earnings per share and if they believed that to do so would
be in the best interests of the shareholders generally. If the resolution is passed the Company will
be authorised to buy in one transaction or any number of transactions an aggregate maximum of
3,717,603 shares, representing approximately 10% of the issued share capital of the Company
as at 20 June 2007 (being the latest practicable date prior to publication of the Notice of AGM).
The maximum price the Company will be permitted to pay will be equal to 5% above the average
middle market quotations for the five business days preceding the transaction and the minimum
price will be 5 pence (being the nominal value of the shares).
The total number of options to subscribe for ordinary shares outstanding as at 20 June 2007 was
2,056,478, representing approximately 5.5% of the issued share capital of the Company at such
date. If the authority to purchase shares were to be exercised in full, the total number of options
to subscribe for ordinary shares outstanding as at 20 June 2007 would represent 2.5% of the
issued share capital (assuming no other further ordinary shares were issued after that date).
Statement of Directors’ Responsibilities
The Directors are responsible for preparing the Annual Report and the Group financial statements
in accordance with applicable law and International Financial Reporting Standards as adopted by
the European Union and the parent company financial statements in accordance with applicable
law and UK generally accepted accounting principles.
Company law requires the Directors to prepare financial statements for each financial year which
give a true and fair view of the state of affairs of the Group and the Company and of the proﬁt or
loss of the Group for that period. In preparing those financial statements, the Directors are
required to:
� select suitable accounting policies and then apply them consistently
� make judgements and estimates that are reasonable and prudent
� state whether applicable accounting standards have been followed, subject to any material
departures disclosed and explained in the ﬁnancial statements
Report of the Directors
(continued) 16
Report of the Directors
(continued)
� prepare the ﬁnancial statements on the going concern basis unless it is inappropriate to
presume that the Group will continue in the business.
The Directors are responsible for keeping proper accounting records that disclose with reasonable
accuracy at any time the financial position of the Group and Company and enable them to ensure
that the financial statements comply with the Companies Act 1985. They are also responsible for
safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities. They are responsible for ensuring that the Annual
Report includes information required by the Listing Rules of the Financial Services Authority.
A copy of the financial statements of the Group is placed on the Goldshield website. 
The maintenance and integrity of the website is the responsibility of the Directors and the work
carried out by the auditor does not involve consideration of these matters. Legislation in the
United Kingdom governing the preparation and dissemination of financial statements may differ
from legislation in other jurisdictions. Accordingly, the auditor’s accept no responsibility for any
changes that may have occured to the financial statements since they were initially presented on
the website.
In so far as the Directors are aware:
� there is no relevant audit information of which the Company’s auditor’s are unaware;
and
� the Directors have taken all steps that they ought to have taken to make themselves aware of
any relevant audit information and to establish that the auditor’s are aware of that information.
BY ORDER OF THE BOARD
S Venkateswaran 
Secretary  
26 June 2007 17
Application of principles
The Group is committed to applying the best principles of Corporate Governance. The Compliance
Statement is given under the Combined Code 2003 (the FRC Code).
Compliance statement
The Company has complied throughout the year with the Code provisions set out in section 1 of the
Combined Code with the following exceptions:
While the Board has introduced a scientiﬁc process of evaluating the performance of the executive
Directors with an appropriate performance pay scheme with reference to the proﬁt and loss account
of different Business and Operation Units under their respective control, it is yet to introduce a
process for evaluating the performance of the Committees and Independent Directors (provision
A.6.1). It is intending to work towards introducing an appropriate evaluation process. At the
meetings of the Group Board, performance of executive Directors are reviewed with reference to the
summarized ﬁnancial results of the various Units under their respective control.
Board composition
The Company is controlled through its Board of Directors. The Board comprises the non-executive
Chairman and two other non-executive Directors, the Chief Executive and four executive Directors.
The Board’s main roles are to create value to shareholders, to approve the Company’s strategic
objectives and to ensure that the necessary ﬁnancial and other resources are made available to
enable them to meet those objectives. Speciﬁc responsibilities reserved to the Board include: setting
Group strategy, reviewing operational and ﬁnancial performance, approving major acquisitions,
divestments and capital expenditure; approving appointments to the Board and the Company
Secretary, approving policies relating to Director’s remuneration and the severance of Directors’
contracts; and ensuring that a satisfactory dialogue takes place with shareholders.
The executive Directors of the Board are:
Ajit R Patel
Kirti V Patel
Rakesh V Patel
Ajay M Patel
Mike Reardon
All the above executive Directors submit themselves for re-election at least every three years and at
the ﬁrst AGM after appointment.
The non-executive Directors are Ken O Pelton, Peter M Brown and Dr. Keith Hellawell QPM, who is
also Chairman of the Group.
Ken O Pelton, the Senior independent non-executive Director, has been associated with the Group for
more than 10 years and and therefore has expressed his desire not to offer for re-election at the
Annual General Meeting.
Peter M Brown, is over 70 years old and therefore retires and, has expressed his desire not to offer
himself for re-election at the Annual General Meeting.
With resignation of Ajit R Patel and Kirti V Patel and retirement of Ken O Pelton and Peter M Brown
at the forthcoming AGM, the Board will be reduced to one non-executive Chairman and three
executive Directors. However, with the appointment of two non-executive Directors and ﬁlling up of
the vacancy of the Finance Director in place of Rakesh V Patel, who has taken over as the Chief
Executive Ofﬁcer from Ajit R Patel, the Board will eventually comprise of three non-executive Directors
including a non-executive Chairman and four executive Directors including the CEO. The Company
has already appointed Nick Woollacott as non-executive Director, who is expected to join in August
2007 and is in the ﬁnal stage of selecting one more non-executive Director.
The Board met seven times during the year under review. At each meeting the Board receives reports
from the Chief Executive, the Finance Director, other Directors and senior management as required.
The Board has four Committees, whose terms of reference can be inspected by prior arrangement at
Goldshield’s ofﬁce in Croydon.
Corporate Governance Report Warfarin Working Party
Ken O Pelton (Chairman)
Dr. Keith Hellawell QPM (w.e.f. 15 May 2006)
Mike Reardon (Secretary)
Ajay M Patel (w.e.f. 23 April 2007)
The Warfarin Working Party (WWP) has been formed with delegated powers from the Board to manage
the Warfarin litigation on a day to day basis and to ensure that the Company’s interests are separated
from those of the Chief Executive, Ajit R Patel and Kirti V Patel who are charged as individuals. The
WWP is responsible for the selection of legal advisers to represent the Company in both the civil and
criminal cases and these advisers cannot represent any of the Directors as individuals. The WWP meets
as often as the situation demands and work closely with the Company’s solicitors. With help from the
WWP , the Company has reached an out of court settlement with the Department of Health on the civil
claim without admitting any liability. The WWP will continue its role in respect of outstanding cases with
Scottish and Northern Irish Authorities as well as the Serious Fraud Ofﬁce.
Audit Committee
Ken O Pelton (Chairman)
Peter M Brown
The Audit Committee’s duties include reviewing the external audit arrangements, including the
scope, results and cost effectiveness of the audit, any changes in accounting policies and
procedures, the judgmental decisions affecting ﬁnancial reporting, compliance with accounting
standards and with the Companies Act and considering the auditor’s comments on internal controls
and management’s response. The Audit Committee monitors the nature and extent of non-audit
services provided by the auditor’s to ensure their independence and objectivity is maintained. 
Audit Committee meetings are also attended by invitation by representatives of the Group’s auditor’s,
the Chairman, the Finance Director and the Company Secretary. The Committee considers the
Group’s annual and interim ﬁnancial statements and any questions raised by the auditor’s on the
statements and ﬁnancial systems.
During the year, the Audit Committee met four times and reviewed the Group’s draft financial
statements and interim results statement prior to Board approval and considered the external
auditor’s detailed reports thereon. The Committee also reviewed the performance of the In-house
internal audit function. The audit plan is independently drawn by the in-house internal audit
department and discussed with the Audit Committee for adequacy of coverage. The Audit Committee
also directs the internal audit department to carry out specific assignments. Besides forwarding the
internal audit reports to the operating heads, the reports are also independently discussed with the
Audit Committee and their feedback and suggestions are implemented upon.
The Group’s auditor’s, Grant Thornton UK LLP , provide some non-audit services. The majority of
non-audit work are compliance services on the various taxation issues within the Group, and do not
compromise their independence as auditor’s. The level of non-audit fees (which are less than the
audit fees) are reviewed annually by the Committee.
Remuneration Committee
Peter M Brown (Chairman)
Ken O Pelton
The Chairman attends the meetings of the Remuneration Committee by invitation.
The Remuneration Committee met twice in the ﬁnancial year and determined the Directors’
remuneration and the issue of share options. None of the Committee members have any personal
ﬁnancial interest in the matters to be decided (other than as shareholders), nor potential conﬂicts of
interest arising from cross-directorships nor any day to day involvement in the running of the
business. The Committee consults with the Board about its proposals and has access to professional
advice from inside and outside the Group.
Corporate Governance Report
(continued)
18 19
Corporate Governance Report
(continued)
Nomination Committee
Peter M Brown (Chairman)
Dr. Keith Hellawell QPM (w.e.f. 15 May 2006)
Ajit R Patel
Ken O Pelton
The Nomination Committee meets as required to select and recommend suitable candidates to the
Board for both executive and non-executive appointments. The selection process includes search using
external agencies. As at 31 March 2007, the number of non-executive Directors stood at 3, complying
with the provision of Combined Code 2003 (The FRC Code).
The number of scheduled Board meetings and committee meetings attended by each Director during
the year was as follows:
Name of the Scheduled Audit Remuneration Nomination
Director Board Committee Committee Committee
Meetings Meetings Meetings Meetings
Dr. Keith Hellawell QPM – Chairman 7 / (7) 3 / (4) 2 / (2) 2 / (2)
Ajit R Patel – CEO 7 / (7) n/a n/a 2 / (2)
Kirti V Patel 7 / (7) n/a n/a n/a
Rakesh V Patel 7 / (7) n/a n/a n/a
Ajay M Patel 7 / (7) n/a n/a n/a
Mike Reardon 7 / (7) n/a n/a n/a
Ken O Pelton 7 / (7) 4 / (4) 2 / (2) 2 / (2)
Peter M Brown 7 / (7) 4 / (4) 2 / (2) 2 / (2)
Figure in brackets indicate maximum number of meetings in the period in which the individual was a board member n/a -
indicates not applicable
Shareholder relations
The Chairman, the Chief Executive and the Finance Director meet and telephone institutional
shareholders to discuss the Group’s strategy and ﬁnancial performance. Efforts are made to keep
shareholders informed through analysts’ meetings, road shows and soundings taken from
individual shareholders as and when required.
All shareholders can gain access to information about the Group, including the annual report,
through the Goldshield website www.goldshieldplc.com.
Risk management and internal controls
The Directors acknowledge their responsibility for the Group’s system of internal controls. The
intent is to manage risk rather than eliminate it and controls cannot provide an absolute assurance
against material misstatement or loss. Decision on key issues is taken by the Board keeping in
mind the possible risks associated with the situation and ability of the Group to manage those
risks effectively.
The key features of the Group’s systems of internal controls are as follows:
� Control environment: short and direct lines of responsibility are designed to ensure that
business risks are communicated for prompt review. The performance of each business unit is
reviewed at regular monthly meetings. The full Board also reviews the same at regular Board
meetings held at least six times each year. A period of at least ﬁve days each year is set aside
for strategic planning and assessment of risks affecting the Group attended by senior managers
from all parts of the Group. In addition, a meeting of Unit Heads is held at least two times in a
year, when matters of strategic importance are discussed with speciﬁc emphasis on training 
and development. � Operating procedures: key ﬁnancial controls are documented as operating procedures setting
out responsibilities and ﬁnancial authority levels.
� Budgeting: a comprehensive budgeting procedure is followed by business units. The CEO presents
an annual forecast at Group Level for discussion and agreement by the Board.
� Information systems: the Group’s accounting systems are backed up and scaleable to meet
business needs. Sufﬁcient precautions are taken to retain the processed data in an off-site
location, which forms part of the disaster recovery program followed by the Company.
A regular review takes place with the Company’s insurance brokers to assess the adequacy of the
Group’s insurance cover in the face of operational and other risks of the business.
The Board fully recognises the importance of adopting appropriate risk and control measures. The
Audit Committee has reviewed the annual report from the in-house internal audit function and is
satisﬁed with the scope and quality of audit work taken up in different areas of operational controls.
The Committee also reviews the internal audit reports keeping in mind the need to take remedial
actions on signiﬁcant audit ﬁndings pursuant to C.2.1 of the Combined Code. 
Going concern
After making enquiries, the Directors have a reasonable expectation that the Group has adequate
resources to continue in operational existence for the foreseeable future. For this reason they
continue to adopt the going concern basis in preparing the ﬁnancial statements. An explanation of
the Group’s cash ﬂow position at 31 March 2007 is set out in the Report of the Finance Director.
20
Corporate Governance Report
(continued) 21
Goldshield is committed to being a socially responsible corporate citizen.
Environment
Common sense measures to save energy and ﬁnite resources are taken where practicable; in
particular relating to controlled use of energy, paper and other resources. The Board does not
consider it appropriate to implement a detailed environmental policy for its activities given that 
it does not itself manufacture products. The Board does however share current concerns on
environmental issues and will where possible ensure that its activities are carried out in an
environmentally friendly manner.
Health and safety
The Board aims to take due and proper care of risks to the health, safety and welfare of its
employees; taking account of the differences that apply to legislative requirements in the different
countries where it operates. Particular attention is paid to ﬁre drills and other safety procedures in
establishments operated by the Group.
Ethics
The Group has policies on business practices, receipt of gifts, use of the internet and whistleblowing.
The Group realises that its reputation depends on adopting ethical and socially responsible
procedures and will encourage adoption of employment, health and safety and other appropriate
procedures to meet this objective.
Employment
The Group employs over 900 employees worldwide based in the United Kingdom, India, Ireland and
the USA. Our success depends on the skills and attitude of our employees. Our human resource
strategies are aimed at ensuring that employees are trained to be competent to fulﬁl their roles and
with an opportunity to develop to their full potential. Emphasis is placed on sharing knowledge for
the beneﬁt of employees and the Group.
The Group operates in an international market and we believe it is important for all employees to be
treated with dignity and respect. Decisions relating to recruitment, development, promotion and
training of individual employees are based on an objective assessment of skills and attitudes and job
requirements. A system of 360 degree appraisals is in place to supplement the one to one appraisal
procedures.
Community involvement
Employees are encouraged to make contributions to charities and other community causes and
collections are regularly made for charitable purposes. Goldshield donated drugs amounting to
£77,779 of Antigen Products which were supplied to the International Health Partners and Trans
Euro Group for donations in Lebanon, Pakistan and Zimbabwe.
Corporate Social Responsibility 22
Directors’ Remuneration Report
Directors’ remuneration
The Group recognises that Directors’ remuneration is of legitimate concern to the shareholders 
and is committed to following current best practice. 
Section 1: Information not subject to audit
The Remuneration Committee
Main Board Directors’ remuneration is determined by the Committee, which also has an overview
of incentive payments and option issues to other members of the Company.
None of the Committee members has any personal ﬁnancial interest in the matters to be decided
other than as shareholders, potential conﬂicts of interest arising from cross directorships or any
day-to-day involvement in the running of the business. The Committee invites the Chief Executive
and other executives to attend its meetings when it is appropriate to get their advice on the issues
under review.
The Remuneration Committee is chaired by Peter M Brown.
Policy on Directors’ remuneration
The Committee aims to ensure that Directors’ remuneration is fair and in line with market rates 
in somewhat similar companies. Incentive schemes are designed to provide rewards for achieving
objectives that will increase shareholder value. A signiﬁcant proportion of remuneration is
performance related.
There are three elements to the remuneration package:
� Basic annual salary and pension contributions.
� Share option incentives.
� Cash bonuses.
Executive Directors’ basic salaries are reviewed annually by the committee which takes into
account salary levels of comparable companies. Salaries were last reviewed in May 2007 when 
it was decided to give average increases to executive Directors of 3.5%.
It is the Committee’s general strategy to pay salaries at or slightly below median levels with
increased remuneration coming from cash bonuses and the increase in value of the options held
by each executive Director.
Executive Directors are entitled to participate in the Company’s share option scheme and options
are granted at the discretion of the Remuneration Committee. Share options issued to Directors
are exercisable subject to meeting performance criteria with regard to growth in EPS and Turnover.
In establishing salary and bonus levels the Company considers the average remuneration packages
paid by all the listed UK companies with similar market capitalisations in the pharmaceutical and
healthcare sectors.
Non-executive Directors remuneration is set by the Board as a whole. All non-executive Directors
are subject to six month notice provision. Their remuneration is shown in the table on page 24.
There is no minimum shareholding requirement for any Director, although we obviously encourage
Directors to buy shares in addition to any option entitlements.
The performance criteria for executive Directors’ bonuses are meeting or exceeding the profit budgets
of the units for which they are responsible under our de-centralised management style.
For the Chief Executive they are meeting or exceeding the EBITDA and profit expectations in the
Company’s business plan and the market. The Remuneration Committee have discretion to vary,
increase or decrease bonuses that are mechanistically produced by these formulas.
The cap on the total options in issue is 10% of issued equity provided the excess over 5% are
issued as Super five years before encashment options, with very demanding performance conditions,
none have been issued to date. The size of any executive’s option holding is 4 x emoluments
(excluding benefits in kind) in normal and up to 8 x such emoluments in Super options.
If there is a change of control, share options become encashable and compensation payments for
loss of office for all main Board Directors are nine, rather than six months; significantly less than the
twelve months that is standard for most UK quoted plc groups. 23
Remuneration strategy throughout the Group
As shareholders realise a very high percentage of the management team now operate out of Mumbai.
The Chief Executive’s strategy with the support of the Remuneration Committee is to ensure that
support departments and sales units operate as if they were independent entities with performance
schemes structured for the delivery of commercial targets. This has enabled managers to partake in
the incentive program based on the performance of their respective units. Used to a more generalised
incentive structure managers begin to realise that decisions concerning their individual operations
make a very big difference to the potential bonus available at the end of the year.
Main Board performance payments are decided by the Committee based upon the overall
performance of the Company and the achievement of targets by units answering to that Director.
The Company contributes to executive Directors’ money-purchase pension plans and provides a
range of health insurance beneﬁts for Directors. Our normal retirement age is 60. The Company’s
contracts of service or letters of appointment are for a six monthly renewable period which is
rather shorter than the one year maximum required by the Combined Code.
Compensation Other
payable provisions
Date of Notice on early on early
Contract period termination termination
Dr. Keith Hellawell QPM 15 May 2006 6 months Contractual only None
Peter M Brown 4 August 2003 6 months Contractual only None
Ajit R Patel 5 April 2006 6 months Contractual only None
Kirti V Patel 5 April 2006 6 months Contractual only None
Rakesh V Patel 5 April 2006 6 months Contractual only None
Ajay M Patel 5 April 2006 6 months Contractual only None
Ken O Pelton 1 April 1992 6 months Contractual only None
Mike Reardon 5 April 2006 6 months Contractual only None
Given the short notice periods applicable, mitigation issues are unlikely to arise.
Performance graph
We show above the performance graph comparing Goldshield’s Total Shareholders’ Return (TSR)
compared to the TSR of the FTSE Small Cap Index. TSR is deﬁned as the percentage change over
the period, assuming re-investment of income and funding of liabilities.
GOLDSHIELD GROUP - TOT RETURN IND           
FTSE SMALL CAP PRICE - TOT RETURN IND
120
140
160
180
200
2002 2003 2004
Source: DATASTREAM Year
Relative Index
2005 2006
100
80
60
40
20
2007
Directors’ Remuneration Report
(continued) 24
The Company is a member of the FTSE Small Cap Index; this is considered to be the most
appropriate comparator group. TSR has been calculated on a one month’s averaging basis in order
to reduce volatility associated with spot prices.
Section 2: Information subject to audit
Directors’ emoluments
Bonus
Taxable paid/ Consultancy
Salary beneﬁts payable Fees Pension Total Total
2007 2007 2007 2007 2007 2007 2006
Executive Directors £ £ £ £ £ £ £
Ajit R Patel 434,170 3,615 70,000 – – 507,785 477,157
Kirti V Patel 231,670 4,282 27,000 – 23,167 286,119 277,280
Rakesh V Patel 218,511 3,728 27,000 – 21,851 271,090 255,280
Ajay M Patel 204,553 4,081 27,000 – 20,455 256,089 239,280
Mike Reardon (Note 1) 203,286 5,475 34,645 – 20,329 263,735 241,254
Non-executive Directors
Dr. Keith Hellawell QPM 78,275 – – – – 78,275 –
Peter M Brown 53,991 – – – – 53,991 61,000
Ken O Pelton (Note 2) – – – 112,492 – 112,492 74,024
1,424,456 21,181 185,645 112,492 85,802 1,829,576 1,625,276
Notes:
(1) Bonus of £34,645 for Mike Reardon includes amount of £7,645 paid in lieu of share options surrendered.
(2) Ken O Pelton’s remuneration includes fees of £42,500 paid for the financial year ended 31 March 2006 and £69,992
accrued for the year ended 31 March 2007.
Directors’ Remuneration Report
(continued) 25
Directors’ share options
The interests of the Directors in options over ordinary shares during the year were as follows:
Exercise Date from
At start At end price which Expiry
Scheme of year Surrendered of year (pence) exercisable Date
Ajit R Patel
Unapproved 330,000 – 330,000 180 3 Jun 2001 2 Jun 2008
Unapproved 72,308 – 72,308 640 11 Jan 2005 10 Jan 2010
Unapproved 39,000 – 39,000 686 18 July 2006 17 July 2011
Unapproved 84,973 – 84,973 366 23 July 2007 22 July 2012
Sharesave 6,013 – 6,013 275.2 1 Aug 2007 31 Jan 2008
532,294 – 532,294
Kirti V Patel
Unapproved 170,000 – 170,000 180 3 Jun 2001 2 Jun 2008
Unapproved 38,462 – 38,462 640 11 Jan 2005 10 Jan 2010
Unapproved 28,000 – 28,000 686 18 July 2006 17 July 2011
Unapproved 53,552 – 53,552 366 23 July 2007 22 July 2012
290,014 – 290,014
Rakesh V Patel
Unapproved 100,000 – 100,000 180 3 Jun 2001 2 Jun 2008
Unapproved 30,769 – 30,769 640 11 Jan 2005 10 Jan 2010
Unapproved 25,000 – 25,000 686 18 July 2006 17 July 2011
Unapproved 46,448 – 46,448 366 23 July 2007 22 July 2012
Sharesave 6,013 – 6,013 275.2 1 Aug 2007 31 Jan 2008
208,230 – 208,230
Ajay M Patel
Unapproved 135,000 – 135,000 180 3 Jun 2001 2 Jun 2008
Unapproved 30,769 – 30,769 640 11 Jan 2005 10 Jan 2010
Unapproved 22,000 – 22,000 686 18 July 2006 17 July 2011
Unapproved 43,716 – 43,716 366 23 July 2007 22 July 2012
Sharesave 6,531 – 6,531 275.2 1 Aug 2009 31 Jan 2010
238,016 – 238,016
Mike Reardon
Unapproved 11,270 – 11,270 366 23 July 2005 22 July 2012
Unapproved 9,677 9,677 – 196 4 Aug 2006 3 Aug 2013
Sharesave 12,638 – 12,638 126 1 Sept 2008 28 Feb 2009
Unapproved 11,270 – 11,270 366 23 July 2007 23 July 2012
Unapproved 14,193 – 14,193 196 4 Aug 2008 3 Aug 2013
Unapproved 33,180 – 33,180 260.7 26 July 2007 25 July 2014
Unapproved 33,180 – 33,180 260.7 26 July 2009 25 July 2014
Unapproved 25,000 – 25,000 270 21 July 2008 22 July 2015
Unapproved 25,000 – 25,000 270 21 July 2010 22 July 2015
175,408 9,677 165,731
No share options have been granted to the non-executive Directors.
The options can be exercised subject to the following performance criteria.
1. Growth in the earnings per share of the Company between the date of grant of the option
and the fifth anniversary of the date of grant is such as to place the Group in the ‘top
quartile’ (‘average’ in case of three year options) of the comparator Companies in respect of
growth in earnings per share over the same period.
2. An increase in the earnings per share of the Group as shown in the audited consolidated
accounts compared to the previous financial year of not less than 2% per annum above
the Retail Price Index as published by the Central Statistical Office.
3. An increase in turnover as shown in the Group’s audited consolidated accounts of not less
than 2% per annum above the Retail Price Index as published by the Central Statistical
Office as compared with the previous financial year.
Directors’ Remuneration Report
(continued) 26
Directors’ Remuneration Report
(continued)
The options granted under the unapproved share scheme were allotted as part of the remuneration 
package for nil consideration.
The market price of the ordinary shares at 31 March 2007 was 170 pence and the range during
the year ended 31 March 2007 was 170 pence to 337 pence.
Equity incentives for Directors and employees
The Company has two share option schemes:
� The ‘unapproved scheme’
The ‘unapproved scheme’ was introduced at the time of listing in 1998. Under this scheme
options have been granted to executive Directors and other employees.
� Employee sharesave scheme
The Company established an Inland Revenue approved savings related sharesave scheme 
in 1998. These options are capable of exercise after either three, five or seven years at the
employees’ choice on the date of entering the contract.
The Board is reviewing with outside specialist consultants the advantage to shareholders of
introducing a share-based long-term incentive performance scheme for the Directors and senior
managers. If this was introduced, no further option issues from the existing schemes are likely to
be made to them.
On behalf of the Board
Peter M Brown
Chairman of the Remuneration Committee
26 June 2007 27
We have audited the Group financial statements of Goldshield Group plc for the year ended 31 March
2007 which comprise the Consolidated Income Statement, the Consolidated Balance Sheet, the
Consolidated Cash Flow Statement, the Consolidated Statement of Changes in Equity and notes 1 to
26. These Group financial statements have been prepared under the accounting policies set out therein.
We have reported separately on the parent company financial statements of Goldshield Group plc
for the year ended 31 March 2007 and the information in the Directors’ Remuneration Report that
is described as having been audited.
This report is made solely to the Company’s members, as a body, in accordance with Section 235
of the Companies Act 1985. Our audit work has been undertaken so that we might state to the
Company’s members those matters we are required to state to them in an auditor’s report and for
no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company and the Company’s members as a body, for our audit work, for
this report, or for the opinions we have formed.
Respective responsibilities of Directors and auditor
The Directors’ responsibilities for preparing the Annual Report and the Group financial statements in
accordance with United Kingdom law and International Financial Reporting Standards (IFRSs) as
adopted by the European Union are set out in the Statement of Directors’ Responsibilities.
Our responsibility is to audit the Group financial statements in accordance with relevant legal and
regulatory requirements and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the Group financial statements give a true and fair view
and whether the Group financial statements have been properly prepared in accordance with the
Companies Act 1985 and Article 4 of the IAS Regulation. We also report to you whether in our
opinion the information given in the Directors’ Report is consistent with the financial statements.
The information given in the Directors’ Report includes that specific information presented in the
Chairman’s Statement, Report of the Finance Director and the Chief Executive Officer’s Operating
Review, that is cross referred from the Business Review section of the Directors' Report.
In addition we report to you if, in our opinion, we have not received all the information and
explanations we require for our audit, or if information specified by law regarding Directors’
remuneration and other transactions is not disclosed.
We review whether the Corporate Governance Statement reflects the Company’s compliance with
the nine provisions of the 2003 Combined Code specified for our review by the Listing Rules of the
Financial Services Authority, and we report if it does not. We are not required to consider whether
the Board’s statements on internal control cover all risks and controls, or form an opinion on the
effectiveness of the Group’s corporate governance procedures or its risk and control procedures.
We read other information contained in the Annual Report and consider whether it is consistent with
the audited Group financial statements. The other information comprises only the Directors,
Secretary and Advisors, the Business Highlights, Chairman's Overview, Chief Executive Officer's
Operating Review, Report of the Finance Director, Five Year Review, Directors, Report of the
Directors, Corporate Governance Report, Corporate Social Responsibility and the unaudited part of
the Directors’ Remuneration Report. We consider the implications for our report if we become aware
of any apparent misstatements or material inconsistencies with the Group financial statements. Our
responsibilities do not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland)
issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence
relevant to the amounts and disclosures in the Group financial statements. It also includes an
assessment of the significant estimates and judgments made by the Directors in the preparation of
the Group financial statements, and of whether the accounting policies are appropriate to the
Group's circumstances, consistently applied and adequately disclosed.
Report of the Independent Auditor on the
consolidated financial statements to the 
Members of Goldshield Group plc 28
Report of the Independent Auditor on the consolidated
financial statements to the Members of Goldshield Group plc
(continued)
We planned and performed our audit so as to obtain all the information and explanations which we
considered necessary in order to provide us with sufficient evidence to give reasonable assurance
that the Group financial statements are free from material misstatement, whether caused by fraud
or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the
presentation of information in the Group financial statements.
Opinion
In our opinion:
� the Group financial statements give a true and fair view, in accordance with IFRSs as adopted
by the European Union, of the state of the Group's affairs as at 31 March 2007 and of its loss
for the period then ended;
� the Group financial statements have been properly prepared in accordance with the Companies
Act 1985 and Article 4 of the IAS Regulation; and
� the information given in the Directors' Report is consistent with the financial statements.
Separate opinion in relation to IFRSs
As explained in Note 1 to the Group financial statements, the Group in addition to complying with
its legal obligation to comply with IFRSs as adopted by the European Union, has also complied with
the IFRSs as issued by the International Accounting Standards Board.
In our opinion the Group financial statements give a true and fair view, in accordance with IFRSs,
of the state of the Group’s affairs as at 31 March 2007 and of its loss for the year then ended.
GRANT THORNTON UK LLP
REGISTERED AUDITORS
CHARTERED ACCOUNTANTS
LONDON
26 JUNE 2007 29
Consolidated Income Statement 
for the year ended 31 March 2007
Before Before
impairment impairment
and and
Notes exceptional Exceptional Total exceptional Exceptional Total
items items Impairment 2007 items items Impairment 2006
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Revenue 2 74,274 – – 74,274 80,025 – – 80,025
Cost of sales (26,213) – – (26,213) (28,429) – – (28,429)
Gross proﬁt 48,061 – –48,061 51,596 – – 51,596
Distribution costs (3,407) – – (3,407) (4,912) – – (4,912)
Impairment losses 7 – – (3,800)(3,800) – – (2,992) (2,992)
Exceptional legal and 
professional costs – (5,602) – (5,602) – (1,651) – (1,651)
Other administrative expenses (35,350) – – (35,350) (35,509) – – (35,509)
Administrative expenses (35,350) (5,602) (3,800) (44,752) (35,509) (1,651) (2,992) (40,152)
Operating (loss)/proﬁt 3 9,304 (5,602) (3,800) (98) 11,175 (1,651) (2,992) 6,532
Finance costs 5 (4) – – (4) (6) – – (6)
Finance income 5 705 – – 705 281 – – 281
Proﬁt before tax 10,005 (5,602) (3,800) 603 11,450 (1,651) (2,992) 6,807
Income tax expense 6 (4,047) 1,681 – (2,366) (3,422) 495 – (2,927)
(Loss)/proﬁt after tax attributable   
to shareholders of parent 5,958 (3,921) (3,800) (1,763) 8,028 (1,156) (2,992) 3,880
(Loss)/earnings per share
Basic (pence) 14 (4.7) 10.5
Diluted (pence) 14 (4.7) 10.4
Dividends
Proposed dividend per 
share (pence) 15 5.1 5.1
Proposed dividend (£’000) 15 1,896 1,893
Dividends paid during 
the period (pence) 6.8 6.2
Dividends paid during 
the period (£’000) 15 2,525 2,300
The accompanying accounting policies and notes form an integral part of these financial statements. 30
Consolidated Balance Sheet 
as at 31 March 2007
Notes 2007 2006
£’000 £’000
Assets
Non-current
Goodwill 7 7,703 10,237
Other intangible assets 7 13,329 19,515
Property, plant and equipment 8 3,539 1,612
Deferred tax assets 13 1,840 957
26,411 32,321
Current
Inventories 9 8,480 11,530
Trade and other receivables 10 11,984 10,680
Cash and cash equivalents 11 23,321 15,855
43,785 38,065
Total assets 70,196 70,386
Equity
Equity attributable to shareholders of Goldshield Group plc
Share capital 12 1,859 1,856
Share premium 21,549 21,485
Translation reserve (692) (90)
Retained earnings 17,966 22,221
Total equity 40,682 45,472
Liabilities
Non-current
Deferred tax liabilities 13 1,117 1,649
1,117 1,649
Current
Provisions 16 5,177 1,278
Trade and other payables 17 16,092 15,677
Other liabilities 18 2,533 2,816
Current tax liabilities 4,595 3,494
28,397 23,265
Total liabilities 29,514 24,914
Total equity and liabilities 70,196 70,386
The financial statements were approved by the Board of Directors on 26 June 2007 and signed on their behalf by:
Ajit R Patel, Chief Executive Officer
Rakesh V Patel, Finance Director
The accompanying accounting policies and notes form an integral part of these financial statements. 31
Consolidated Cash Flow Statement 
for the year ended 31 March 2007
2007 2006
Note £’000 £’000
Cash ﬂows from operating activities
Result for the period before tax 603 6,807
Depreciation 632 512
Amortisation 4,661 5,880
Impairment losses 3,800 2,992 
Equity settled share options 95 121
Finance costs 46
Finance income (705) (281)
9,090 16,037
Decrease/(increase) in inventories 3,050 (229)
(Increase)/decrease in trade and other receivables (1,304) 1,236
Increase/(decrease) in provisions, trade payables and other liabilities 3,826 (243)
Taxes paid (2,678) (3,921)
Net cash from operating activities 11,984 12,880
Cash ﬂows from investing activities
Additions to property, plant and equipment (2,686) (963)
Additions to other intangible assets – (225)
Purchase of businesses and deferred consideration (75) (35)
Interest received 705 281
Net cash from investing activities (2,056) (942)
Cash ﬂows from ﬁnancing activities
Proceeds from share issue 67 55
Interest paid (4) (6)
Dividends paid (2,525) (2,300)
Net cash from ﬁnancing activities (2,462) (2,251)
Net increase in cash and cash equivalents 7,466 9,687
Cash and cash equivalents at beginning of period 15,855 6,168
Cash and cash equivalents at end of period 11 23,321 15,855
The accompanying accounting policies and notes form an integral part of these financial statements. 32
Consolidated Statement of Changes in Equity 
for the year ended 31 March 2007
Equity attributable to equity holders of Minority Total
Goldshield Group plc interest equity
Share Share Translation Retained 
capital premium reserve earnings
£’000 £’000 £’000 £’000 £’000 £’000
Balance 1 April 2005 1,854 21,359 (400) 20,370 106 43,289 
Currency translation differences – – 310 – – 310
Deferred tax on translation reserve – – – (93) – (93)
Deferred tax on pre 7 November 
grants of share options – – – 243 – 243
Disposal of minority interest –––– (106) (106)
Net gains/(losses) not recognised
in income statement – – 310 150 (106) 354
Profit for the period –––3,880–3,880
Total recognised income and expense 
for the period – – 310 4,030 (106) 4,234
Shares issued 2 126 – – – 128
Employee share based compensation – – – 121 – 121
Dividends paid – – – (2,300) – (2,300)
Balance at 31 March 2006 1,856 21,485 (90) 22,221 – 45,472
Balance 1 April 2006 1,856 21,485 (90) 22,221 – 45,472 
Currency translation differences – – (602) – – (602)
Deferred tax on translation reserve – – – 181 – 181
Deferred tax on pre 7 November 
grants of share options – – – (243) – (243)
Net losses not recognised
in income statement – – (602) (62) – (664)
Loss for the period – – – (1,763) – (1,763)
Total recognised expense 
for the period – – (602) (1,825) – (2,427)
Shares issued 3 64 – – – 67
Employee share based compensation – – – 95 – 95
Dividends paid – – – (2,525) – (2,525)
Balance at 31 March 2007 1,859 21,549 (692) 17,966 – 40,682
The accompanying accounting policies and notes form an integral part of these financial statements. 33
Notes to the Financial Statements
1. PRINCIPAL ACCOUNTING POLICIES
Basis of preparation
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards
(IFRSs) as adopted by the European Union (EU) and as issued by the International Accounting Standards Board (IASB). 
A summary of the accounting policies applied in the preparation of financial statements is given below. These policies have been
consistently applied to all the periods presented, unless otherwise stated.
Adoption of new and revised Standards
In the current year, the Group has adopted all of the new and revised Standards and interpretations issued by the International
Accounting Standards Board (the IASB) and the International Financial Reporting Interpretations Committee (the IFRIC) of the IASB
that are relevant to its operations and effective for the annual reporting periods beginning on 1 April 2006. The adoption of these
new and revised Standards and Interpretations do not have a material financial impact on the financial statements of the Group.
New IFRS standards and Interpretations not adopted
The IASB and IFRIC have issued additional standards and interpretations which are effective for periods starting after the date
of these financial statements. The following standards and interpretations with their effective date have yet to be adopted by
the Group.
• IFRS 7 Financial Instruments: Disclosures – 1 January 2007
• IFRS 8 Operating Segments – 1 January 2009
• IFRIC 8 Scope of IFRS 2 – 1 May 2006
• IFRIC 9 Reassessment of Embedded Derivatives – 1 June 2006
• IFRIC 10 Interim Financial Reporting and Impairment – 1 November 2006
• IFRIC 11 IFRS 2 – Group and Treasury Share Transactions – 1 March 2007
• IFRIC 12 Service Concession Agreements – 1 January 2008
The Group does not anticipate that the adoption of these standards and interpretations will have a material effect on its financial
statements on initial adoption.
Basis of consolidation
The Group financial statements consolidate those of the Company and of its subsidiary undertakings drawn up to 31 March
2007. A subsidiary is an entity which the Company controls, this is achieved by owning more than 50% of the issued share
capital. Profits or losses on intra-group transactions are eliminated in full. The results of the subsidiary undertakings acquired
during the year have been included from the date of acquisition. On acquisition of a subsidiary, all of the subsidiary’s assets and
liabilities which exist at the date of acquisition are recorded at the fair values reflecting their condition at that date. Goodwill
arising on consolidation, representing the excess of the fair value of the consideration given over the fair values of the identifiable
net assets acquired, is capitalised net of any provision for impairment.
Revenue
Revenue from the sale of goods is recognised in the income statement when the significant risks and rewards of ownership have
been transferred to the buyer. Revenue is measured at the fair value of the consideration received/receivable by the Group for
goods supplied and services provided, excluding value added tax and trade discounts. Revenue from services rendered is
recognised in the income statement by reference to the stage of completion of transactions at the balance sheet date. The stage
of completion for the Global Solutions – call centre business is determined by the man days spent on the project for rendering
the service at the end of each billing cycle. Subscription revenue is accrued over the period of the subscription.
Intangible assets
Goodwill
All business combinations are accounted for under the purchase method and goodwill has been recognised on acquisitions of
subsidiaries. In respect of business combinations that have occurred since 1 April 2004, goodwill represents the difference
between the cost of the acquisition and the fair value of the net identifiable assets acquired. Goodwill is stated at cost less any
accumulated impairment losses. Goodwill arising on acquisitions before 1 April 2004 has been retained at the previous UK GAAP
amounts at 31 March 2004. Goodwill is allocated to cash generating units and is not amortised but tested for impairment
annually or more frequently if events or changes in circumstances indicate that it might be impaired.
Other intangible assets 
Externally purchased product licenses, trademarks, brand-names, know-how and similar intangible items are capitalised at
historical cost, net of any provision for impairment and amortised on a straight line basis over their estimated useful economic
lives which range between seven and ten years. The amortisation cost has been included within administrative expenses in the
income statement.
Impairment
The Group’s goodwill and other intangible assets are tested for impairment annually or more frequently, if events or changes in
circumstances indicate that it might be impaired. For the purposes of assessing impairment, assets are grouped at the lowest
levels for which there are separately identifiable cash flows (cash generating units). An impairment loss is recognised for the
amount by which the asset’s or cash generating unit’s carrying amount exceeds its recoverable amount. The recoverable amount
is based on internal discounted cash - flow evaluation. If at the balance sheet date there is any indication that an impairment
loss recognised in prior periods for an asset other than goodwill no longer exists, the recoverable amount is reassessed and the
asset is reflected at the recoverable amount.
Research and development expenditure
Expenditure on development activities is capitalised if the product or process is technically and commercially feasible, the costs
are separately identifiable and the Group has sufficient resources to complete development. Capitalised development costs are
stated at cost less accumulated amortisation and impairment losses. Capitalised development costs are amortised from the point 34
at which the asset is ready to use on a straight-line basis over its useful life, not exceeding five years. All other research and
development expenditure is written off to the income statement in the period in which it is incurred.
Property, plant and equipment
Property, plant and equipment are stated at cost less the accumulated depreciation on the same. Depreciation is charged on a
straight line basis over the estimated useful lives on the cost of the assets less their residual value. Land is not depreciated.
The estimated useful lives are as follows:
Freehold buildings and
leasehold improvements - 25 Years or over the period of lease
Office equipment - 5 Years
Plant and equipment - 6 to 7 Years
Motor vehicles - 5 Years
Residual values are re-assessed annually.
Directly attributable costs for construction of assets is shown under Capital work in progress and will be transferred to the relevant
category on completion of construction of the asset.
Inventories
Inventories are stated at the lower of cost and net realisable value. The cost of inventories are valued using the weighted average
price method.
Accounting for income taxes
Current income tax assets and / or liabilities comprise those obligations to, or claims from, fiscal authorities relating to the current
or prior reporting period, that are unpaid at the balance sheet date. They are calculated according to the tax rates and tax laws
applicable to the fiscal periods to which they relate, based on the taxable profit for the year. 
Deferred tax is recognised on all temporary differences. This involves comparison of the carrying amount of assets and liabilities
in the consolidated financial statements with their respective tax bases. However, deferred tax is not provided on the initial
recognition of goodwill, nor on the initial recognition of an asset or liability unless the related transaction is a business
combination or affects tax or accounting profit. Deferred tax liabilities are always provided for in full. Deferred tax assets and
liabilities are calculated, without discounting, at tax rates that are expected to apply to the period when asset is realised or the
liability is settled, based on tax rates (tax laws) that have been enacted or substantially enacted by the balance sheet date. All
changes in deferred tax assets or liabilities are recognised as a component of tax expense in the income statement, except where
they relate to items that are charged or credited directly to equity (such as translation reserve and pre 7 November 2002 grants
of share options) in which case the related deferred tax is also charged or credited directly to equity. 
Tax losses available to be carried forward as well as other income tax credits to the Group are assessed for recognition as deferred
tax assets. Deferred tax assets are only recognised to the extent that it is probable that future taxable profits will be available
against which the asset can be recognised and are reduced to the extent that it is no longer probable that the related tax benefit
will be realised.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits with an original maturity of three months or less. Bank overdrafts
that are repayable on demand and form an integral part of the Group’s cash management are included as a component of cash.
Employee beneﬁts
The Group operates a defined contribution pension scheme whereby contributions are made to individual employee pension plans
of certain employees. These costs are charged against profits in respect of the accounting period in which they are paid.
Indian Gratuity costs, which represent a form of long term service benefits are accrued based on actuarial valuation at the balance
sheet date, carried out by an independent actuary.
Leased assets
All leased assets are identified as operating leases if they do not transfer substantially all the risks and rewards to the lessee.
Payments made under operating leases are charged to the profit and loss account on a straight line basis over the period of 
the lease.
Foreign currencies
The reporting currency for these financial statements is GB sterling (£) which is the parent company’s functional currency.
Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction. Monetary assets and
liabilities in foreign currencies are translated at the rates of exchange ruling at the balance sheet date. Foreign exchange
differences arising on translation are recognised in profit or loss. Non monetary assets and liabilities that are measured in terms
of historical cost in a foreign entity are translated using the exchange rate at the date of the transaction. 
All assets and liabilities in the financial statements of foreign subsidiaries are translated at the closing rate at the balance sheet
date. The results of foreign operations have been converted into Group’s reporting currency at the actual rates over the reporting
period and the exchange differences arising have been taken to translation reserve, a component of equity. The exchange
differences arising from re-translation of the net investments in subsidiaries are directly taken to translation reserve. All other
exchange differences are dealt with through the income statement.
Share options
For all employee share options granted after 7 November 2002 and vesting on or after 1 January 2005, an expense is recognised
in the income statement with a corresponding credit to equity. The equity share based payment is measured at the fair value at
the grant date using the binomial lattice method. If vesting periods or other vesting conditions apply, the expense is allocated
over the vesting period, based on the best available estimate of the number of share options expected to vest.
Notes to the Financial Statements
(continued) 35
Provisions - Legal and other disputes
Provision is made where a reliable estimate can be made of the likely outcome of legal or other disputes against the Group. In
addition, provision is made for legal and other expenses arising from claims received or other disputes. No provision is made for
other possible claims or where an obligation exists but it is not possible to make a reliable estimate. Costs associated with claims
made by the Group against third parties are charged to the profit and loss account as they are incurred. The provisions are not
discounted as the impact is not material.
Exceptional legal costs 
Exceptional legal costs are expenditure incurred and provided for defending the legal claims against the Group by Department of
Heath and Serious Fraud Office.
Dividends
Dividends proposed or declared after the balance sheet dates are not recognised as a liability. However the amounts of such
dividends are disclosed in the financial statements.
Segmental reporting
A segment is a distinguishable component of the Group that is engaged either in providing products or services (business
segment) or in providing products or services within a particular economic environment (geographic segment) which is subject
to risks and rewards that are different from those of other segments.
Financial instruments
Financial assets and financial liabilities are recognised on the Group’s balance sheet when the Group becomes a party to the
contractual terms of the instrument.
- Trade receivables
Trade receivables do not carry any interest and are stated at their fair values as reduced to equal the estimated present value of
the future cash flows.
- Bank borrowings
Interest bearing bank loans and overdrafts are recorded at fair values on initial recognition. Finance charges including premiums
payable on settlement or redemption and direct issue costs, are accounted for on an accruals basis to the profit and loss account
using the effective interest method and are added to the carrying value of the instrument to the extent that they are not settled
in the period in which they arise.
- Trade payables
Trade payables are not interest bearing and are stated at their fair values.
- Equity instruments
Equity instruments issued by the Group are recorded at the proceeds received, net of direct issue costs.
Equity comprises of the following:
- Share capital – represents the nominal value of equity shares
- Share premium – represents the excess over nominal value of fair value of  consideration
- Retained earnings – represents the accumulated retained profits
- Translation reserve – represents gains or losses on foreign currency transactions
Accounting estimates and judgements
Refer to note 24 of Consolidated IFRS Financial Statements on page 49.
2. SEGMENTAL REPORTING
Segment information is presented in the consolidated financial statements in respect of the Group’s business segments, which
are the primary basis of segment reporting. The business segment-reporting format reflects the Group’s management and internal
reporting structure.
Primary - Business segments
The Group is organised into five major business units – Retail Brands, Retail Generics, Hospitals, Direct to Consumer Western
Europe (D2C WE) and, Direct to Consumer North America (D2C NA). Certain other business units like Country Distributors,
Global Services, Wellbeing Centre, Wellbeing Villages, Resorts and Management Services constitute the other segments. These
units form the basis for the Group’s reporting of primary segment information.
Secondary - Geographical segments
The geographical segments are considered for disclosure as secondary segment. Geographical revenues are segregated based on
the location from which the revenues are generated.
Assets are identified to the segment on the basis of their place of use.
Segment results
Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.
All inter-segment transfers are priced and carried out at arm’s length. 
Segment assets and liabilities
Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors and fixed assets,
net of allowances and provisions which are reported as direct offsets in the balance sheet. Segment liabilities include all operating
liabilities and consist principally of creditors and accrued liabilties.
Segment assets and liabilities do not include deferred income taxes.
Unallocated segment income and expenses.
Unallocated segment income comprises interest income and miscellaneous receipts not directly attributable to any particular
segment. Unallocated segment expenditure represents interest on loans and provision for income taxes, which cannot be directly
attributed to any segment.
Notes to the Financial Statements
(continued)
Notes to the Financial Statements
(continued) 36
Primary segment disclosure - Business segments
31 March 2007 Retail Retail Other 
Brands Generics Hospitals D2C WE D2C NA Segments Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Revenue
External sales 31,266 7,420 11,364 11,580 5,852 6,792 74,274
Total revenue 31,266 7,420 11,364 11,580 5,852 6,792 74,274
Result
Segment result 4,743 135 2,539 (441) (2,653) (4,421) (98)
Operating loss (98)
Finance costs (4)
Finance income 705
Income tax expense (2,366)
Loss for the period (1,763)
Other information
Segment assets 22,157 2,607 14,912 4,368 1,176 23,135 68,356
Unallocated corporate assets 1,840
Consolidated total assets 70,196
Segment liabilities 9,468 880 3,509 2,121 723 7,382 24,083
Unallocated corporate liabilities 5,712
Consolidated total liabilities 29,795
Capital expenditure – – 28 11 30 2,617 2,686
Depreciation and amortisation 4,134 – 101 1 32 1,025 5,293
Impairment losses 1,042 – – – 2,132 626 3,800
Non-cash expenses other 
than depreciation ––––– 95 95
31 March 2006 Retail Retail Other 
Brands Generics Hospitals D2C WE D2C NA Segments Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Revenue
External sales 32,255 9,456 11,067 14,109 6,957 6,181 80,025
Total revenue 32,255 9,456 11,067 14,109 6,957 6,181 80,025
Result
Segment result 4,690 (87) 2,532 691 (1,377) 83 6,532
Operating proﬁt 6,532
Finance costs (6)
Finance income 281
Income tax expense (2,927)
Proﬁt for the period 3,880
Other information
Segment assets 28,239 4,272 12,751 3,485 3,681 17,001 69,429
Unallocated corporate assets 957
Consolidated total assets 70,386
Segment liabilities 8,915 1,187 3,281 2,356 634 3,398 19,771
Unallocated corporate liabilities 5,143
Consolidated total liabilities 24,914
Capital expenditure – – 42 – 7 1,139 1,188
Depreciation and amortisation 5,177 – 91 – 59 1,065 6,392
Impairment losses 1,245 – – – 1,148 599 2,992
Non-cash expenses other 
than depreciation ––––– 121 121 
Notes to the Financial Statements
(continued) 37
Geographical segments 2007 2006
£’000 £’000
Revenue
United Kingdom 53,738 58,778
Ireland 12,814 12,255
North America 5,852 6,957
India 1,870 2,035
Total 74,274 80,025
Assets
United Kingdom 41,626 43,003
Ireland 18,824 19,711
North America 1,176 3,681
India 8,570 3,991
Total 70,196 70,386
Capital expenditure
United Kingdom 72 241
Ireland 28 42
North America 30 7
India 2,556 898
Total 2,686 1,188
3. OPERATING (LOSS)/PROFIT
The operating (loss)/profit is stated after charging:
2007 2006
£’000 £’000
Auditor’s remuneration:
- Audit services (see below) 77 64 
- Other services (see below) 193 197
Depreciation and amortisation:
- Intangible assets 4,661 5,880
- Property, plant and equipment 632 512
Hire of plant and machinery 139 88
Impairment losses 3,800 2,992
Exceptional legal and professional costs 5,602 1,651
Other operating lease rentals 1,095 1,043
Foreign exchange losses 366 205
Research and development:
- current year expenditure 115 237
Notes to the Financial Statements
(continued) 38
Auditors remuneration for audit and non-audit services in jurisdictions in which the Group has a presence are analysed below:
Group audit 2007 2006
£’000 £’000
Audit fees to Company’s auditor for audit 
of the Group’s annual accounts 77 64  
77 64
Other services 2007 2006
£’000 £’000
Audit fees to Company’s auditor and associates for 
Company’s subsidiaries pursuant to legislation 89 79      
Advisory 48 40
Corporation tax 45 73
VAT 11 5
193 197
4. DIRECTORS AND EMPLOYEES
Employees
Staff costs during the year were as follows: 2007 2006
£’000 £’000
Wages and salaries 8,820 8,536
Social security costs 660 675
Share options 95 121
Other pension costs 253 253
9,828 9,585
The average number of employees is analysed below: 2007 2006
Number Number
Administration 341 310
Marketing and selling 456 431
Management 97 98
Warehouse 28 31
922 870
The Group contributes to employee money pension schemes at a percentage of pay (depending on grade). 
The share option charge includes an amount of £32,000 (2006: £19,000) pertaining to key management personnel.
Directors’ remuneration
The emoluments of the Directors were as follows:
2007 2006
£’000 £’000
Emoluments 1,631 1,537
Payments to third parties for consultancy services 113 5
Pension contributions to money purchase pension schemes 86 83
1,830 1,625
During the year four Directors (2006: four Directors) participated in money purchase pension schemes.
Further details of the remuneration and share options of the Directors are given in the Directors’ Remuneration Report on pages
22 to 26.
Notes to the Financial Statements
(continued) 39
5. FINANCE INCOME AND FINANCE COSTS
Finance income and costs includes all interest related income and expenses. The following amounts have been included in the
income statement line for the reporting periods presented:
2007 2006
£’000 £’000
Interest income resulting from
- special interest bearing account 365 –
- short term bank deposits 310 281
- corporation tax 30 –
Finance income 705 281
Interest expense resulting from
- bank overdrafts (1) (2)
- corporation tax (2) –
- others (1) (4)
Finance costs (4) (6)
6. INCOME TAX EXPENSE
2007 2006
£’000 £’000
Result for the year before tax 603 6,807
Tax rate 30% 30%
Expected tax expense (181) (2,042)
Adjustments for deferred tax 1,328 492
Tax rate adjustment for future period
(tax rate will change for certain entities) (118) –   
Adjustment for non-deductible expenses
- overseas losses not utilised (1,064) 628
- overseas profits not taxed 608 –   
- capital allowance 481 653
- other non-deductible expenses (4,303) (2,412)
Adjustment to tax charge in respect of prior periods 883 (75)
Other short term timing difference – (171)
Actual tax expense, net (2,366) (2,927)
Comprising
Current tax expense (4,459) (3,344)
Adjustment to tax charges in respect of prior periods 883 (75)
(3,576) (3,419)
Deferred tax income resulting from the
- origination and reversal of temporary difference 1,210 492
1,210 492
(2,366) (2,927)
Notes to the Financial Statements
(continued) 40
7. INTANGIBLE ASSETS
Brand names
know-how
licences and
trade marks Goodwill Total
£’000 £’000 £’000
Cost
At 1 April 2005 64,356 26,050 90,406
Exchange differences 5 1,299 1,304
Additions acquired separately 225 – 225
At 31 March 2006 64,586 27,349 91,935
At 1 April 2006 64,586 27,349 91,935
Exchange differences (11) (1,912) (1,923)
At 31 March 2007 64,575 25,437 90,012
Amortisation and impairment losses
At 1 April 2005 37,567 14,742 52,309
Exchange differences 5 997 1,002
Amortisation 5,880 – 5,880
Impairment losses 1,619 1,373 2,992
At 31 March 2006 45,071 17,112 62,183
At 1 April 2006 45,071 17,112 62,183
Exchange differences (10) (1,654) (1,664)
Amortisation 4,661 – 4,661
Impairment losses 1,524 2,276 3,800
At 31 March 2007 51,246 17,734 68,980
Carrying amounts
At 1 April 2005 26,789 11,308 38,097
At 31 March 2006 19,515 10,237 29,752
At 31 March 2007 13,329 7,703 21,032
Subsequent to the annual impairment test for 2007, the carrying amount of goodwill is allocated to the following
cash generating units:
2007 2006
£’000 £’000
Hospitals 6,980 7,090
D2C North America – 2,280
Regina 723 867
7,703 10,237
The recoverable amounts for the cash generating units given above are determined based on internal discounted cash flow
evaluation. The cash flow evaluation is based on actual operating results and five year forecasts at the growth rates stated in the
key assumptions.
The key assumptions are:
Growth rates 2007 2006
Hospitals Constant Constant
D2C North America Constant 4%
Regina Constant 7%
Notes to the Financial Statements
(continued)
Notes to the Financial Statements
(continued) 41
Discount rates 2007 2006
£’000 £’000
Hospitals 8% 8%
D2C North America 8% 8%
Regina 8% 8%
Management assumes the Hospitals, D2C North America and Regina units to continue to earn the current level of profit margins
and achieve the same level of sales in the future forecasts.
The growth rate for the Hospitals business, D2C North America and Regina business is assumed to be constant based on past
experience.
The discount rate applied for the impairment review workings is based on the Weighted Average Cost of Capital for the Group.
The US business has shown a downward trend reflected by lower revenue and reduced profitability as compared to previous
years. The future forecasts for the business do not indicate substantial improvement in both revenue and profitability, which has
resulted in recognising further impairment charge in the year. 
The Regina business has shown a small improvement in the turnover in the current year, however based on the profitability and
the assumption of simliar level of sales in the future forecasts in an impairment charge is recognised.
The related goodwill impairment loss of £2,276,000 (2006: £1,373,000) is included under “Impairment losses” in the income
statement. The amount attributed to D2C North America unit is £2,132,000 (2006: £1,148,000) and Regina unit is £144,000
(2006: £225,000).
8. PROPERTY, PLANT AND EQUIPMENT
Land & Capital Work Ofﬁce Plant & Motor 
buildings in progress equipment equipment vehicles Total
£’000 £’000 £’000 £’000 £’000 £’000
Cost
At 1 April 2005 99 – 2,398 482 10 2,989
Exchange differences 6 – 113 8 1 128
Additions 686 – 223 49 5 963
At 31 March 2006 791 – 2,734 539 16 4,080
At 1 April 2006 791 – 2,734 539 16 4,080
Exchange differences (71) – (194) (15) (2) (282)
Additions 1,664 130 733 146 13 2,686
Disposals – – (3) – – (3)
At 31 March 2007 2,384 130 3,270 670 27 6,481
Depreciation
At 1 April 2005 45 – 1,556 265 5 1,871
Exchange differences 3 – 74 8 – 85
Depreciation 39 – 359 112 2 512
At 31 March 2006 87 – 1,989 385 7 2,468
At 1 April 2006 87 – 1,989 385 7 2,468
Exchange differences (8) – (134) (12) (1) (155)
Depreciation 63 – 436 127 6 632
Disposals – – (3) – – (3)
At 31 March 2007 142 – 2,288 500 12 2,942
Carrying amounts
At 1 April 2005 54 – 842 217 5 1,118
At 31 March 2006 704 – 745 154 9 1,612
At 31 March 2007 2,242 130 982 170 15 3,539
Land and buildings includes £1,655,000 (2006: £353,000) of land which is not being depreciated.
Notes to the Financial Statements
(continued) 42
9. INVENTORIES
2007 2006
£’000 £’000
Finished goods and goods for resale 11,309 14,124
Write down on inventories (2,829) (2,594)
8,480 11,530
In 2007, a total of £26,213,000 of inventories was included in the income statement as an expense (2006: £28,429,000).
An amount of £1,052,500 for write down of inventories (2006: £1,359,000) has been included within administrative expenses
in the income statement.
No reversal of previous write-downs was recognised as a reduction of expense in 2007 or 2006. None of the inventories are
pledged as securities for liabilities.
10. TRADE AND OTHER RECEIVABLES
2007 2006
£’000 £’000
Trade receivables 11,443 11,825
Allowance for doubtful debts (836) (1,879)
Trade receivables, net 10,607 9,946
Prepayments and accrued income 1,377 734
Total 11,984 10,680
Trade receivables are usually due within 48 days and do not bear any effective interest rate. All trade receivables except the
factored portion of the Retail Generics segment are subject to credit risk exposure. However the Group does not identify specific
concentration of credit risk with regards to trade receivables, as the amount recognised resemble a large number of receivables
from various customers.
The fair value of these short term financial assets is not individually determined as the carrying amounts is a reasonable
approximation of fair value.
11. CASH AND CASH EQUIVALENTS
2007 2006
£’000 £’000
Cash at bank and in hand 20,212 9,351
Short-term bank deposits 3,109 6,504
Total 23,321 15,855
The effective interest rate on short-term bank deposits was 4.8% (2006: 3.8%); these deposits have an average maturity of 
22 days (2006: 9 days).
Notes to the Financial Statements
(continued) 43
12. SHARE CAPITAL AND SHARE OPTIONS
2007 2006
£’000 £’000
Authorised
100,000,000 ordinary shares of 5 pence each (2006: 100,000,000) 5,000 5,000 
2007 2006
£’000 £’000
Allotted, called up and fully paid
37,176,033 ordinary shares of 5 pence each (2006: 37,126,611) 1,859 1,856
2007 2006
Share issued and fully paid, Number Number
- beginning of the year 37,126,611 37,070,778
- issued during the year 49,422 55,833
Share issued and fully paid 37,176,033 37,126,611
During the year 49,422 shares were issued under the unapproved employee share option scheme and the employee share save
scheme. The difference between the total consideration of £66,826 and the nominal value of £2,471 has been credited to the
share premium account.
Share options
Details of Directors’ share options are set out in the Directors Remuneration Report on page 25.
The market price at 31 March 2007 was 170 pence and the range during the year ended 31 March 2007 was 170 pence to
337 pence.
The following share options which have been granted by the Company were outstanding at the year end:
Date of grant Earliest Latest 2007 2006
date of date of Number Number
exercise exercise
The ‘unapproved scheme’
5p Ordinary shares at 180 pence 3-Jun-98 3-Jun-01 2-Jun-08 735,000 735,000 
5p Ordinary shares at 480.5 pence 11-Aug-99 11-Aug-02 10-Aug-09 22,917 31,580 
5p Ordinary shares at 640 pence 11-Jan-00 11-Jan-03 10-Jan-10 – 1,923 
5p Ordinary shares at 640 pence 11-Jan-00 11-Jan-05 10-Jan-10 175,337 177,260 
5p Ordinary shares at 871 pence 10-Jul-00 10-Jul-03 9-Jul-10 7,453 8,118 
5p Ordinary shares at 871 pence 10-Jul-00 10-Jul-05 9-Jul-10 1,805 1,805 
5p Ordinary shares at 775 pence 18-Dec-00 18-Dec-03 17-Dec-10 924 924 
5p Ordinary shares at 775 pence 18-Dec-00 18-Dec-05 17-Dec-10 924 924 
5p Ordinary shares at 686 pence 18-Jul-01 18-Jul-04 17-Jul-11 7,261 7,686 
5p Ordinary shares at 686 pence 18-Jul-01 18-Jul-06 17-Jul-11 123,491 124,499 
5p Ordinary shares at 586.5 pence 3-Dec-01 3-Dec-04 2-Dec-11 3,545 3,783 
5p Ordinary shares at 586.5 pence 3-Dec-01 3-Dec-06 2-Dec-11 3,545 3,783 
5p Ordinary shares at 366 pence 23-Jul-02 23-Jul-05 22-Jul-12 11,270 11,270 
5p Ordinary shares at 366 pence 23-Jul-02 23-Jul-05 22-Jul-12 294,110 321,979 
5p Ordinary shares at 196 pence 4-Aug-03 4-Aug-06 4-Aug-13 – 56,939 
5p Ordinary shares at 196 pence 4-Aug-03 4-Aug-08 3-Aug-13 59,540 72,805 
5p Ordinary shares at 157.5 pence 4-Aug-03 4-Aug-06 4-Aug-13 – 38,549 
5p Ordinary shares at 157.5 pence 4-Aug-03 4-Aug-08 4-Aug-13 46,757 53,767 
5p Ordinary shares at 260.7 pence 26-Jul-04 26-Jul-07 25-Jul-14 161,042 180,044 
5p Ordinary shares at 260.7 pence 26-Jul-04 26-Jul-09 25-Jul-14 161,042 180,044 
5p Ordinary shares at 270 pence 21-Jul-05 21-Jul-08 20-Jul-15 101,448 124,347
5p Ordinary shares at 270 pence 21-Jul-05 21-Jul-10 20-Jul-15 99,415 122,314
The employee ‘sharesave scheme’
5p Ordinary shares at 696 pence 23-Aug-00 1-Oct-07 31-Mar-08 1,056 1,056
Notes to the Financial Statements
(continued) 44
Date of grant Earliest date Latest date 2007 2006
of exercise of exercise Number Number
The employee ‘sharesave scheme’
5p Ordinary shares at 555 pence 10-Aug-01 1-Oct-04 31-Mar-07 – 304 
5p Ordinary shares at 275.2 pence 2-Jul-02 1-Aug-07 31-Jan-08 14,431 14,431
5p Ordinary shares at 275.2 pence 2-Jul-02 1-Aug-09 31-Jan-10 6,531 6,531
5p Ordinary shares at 266 pence 10-Jan-03 1-Feb-06 31-Jul-08 – 1,421
5p Ordinary shares at 266 pence 10-Jan-03 1-Feb-08 31-Jul-10 2,469 2,469
5p Ordinary shares at 126 pence 15-Aug-03 1-Sep-06 28-Feb-07 – 39,933
5p Ordinary shares at 126 pence 15-Aug-03 1-Sep-08 28-Feb-09 15,165 15,165
5p Ordinary shares at 174 pence 2-Feb-04 1-Mar-07 31-Aug-07 – 11,237
The Directors’ interests (including beneficial and family interests) in the above share options are set out in the Directors
Remuneration Report on page 25.
2007 2007 2006 2006
Weighted average Number Weighted average Number 
exerciseprice of exerciseprice of 
Pence options Pence options
Outstanding at the beginning of the period 300.34 2,351,890 304.94 2,302,891
Forfeited/surrendered during the period 254.99 (245,990) 325.62 (204,988)
Exercised during the period 135.22 (49,422) 190.65 (28,817)
Granted during the period – – 270.00 282,804
Outstanding at the end of the period 309.73 2,056,478 300.34 2,351,890
Exercisable at the end of the period 331.97 1,093,472 289.60 981,998
As at 31 March 2007, the Group maintained two sharebased payment schemes: 
Goldshield Group plc unapproved scheme
The unapproved share options scheme is administered by the Group. Options are granted to employees during their tenure of
service and these can be exercised until expiry of 10 years from the date of grant, provided the employee continues to remain in
service at the earliest exercise date. The options are exercisable based on the achievement of performance criteria with regards
to growth in Earnings per share and Turnover. The Remuneration Committee has the discretion to consider any exception in
meeting the performance criteria when the options are exercised.
Goldshield Group plc sharesave scheme
The scheme allows all eligible employees to benefit from the growth of the Company through savings deducted directly from pay,
tax-free bonuses and a right to purchase Goldshield Group plc shares in the future but at a fixed price, which does not exceed
the middle market value of a share over the three dealing days immediately preceding the issue of this invitation. The approved
sharesave scheme has option exercise terms of three, five or seven years. The sharesave scheme can be exercised for 6 months
only after the three, five or seven year maturity dates.
The options outstanding at 31 March 2007 have an exercise price in the range of 126 pence to 871 pence and a weighted
average contractual life of 4.10 years.
There were no share options granted during the year.
13. DEFERRED TAX ASSETS AND LIABILITIES
Defered tax assets and liabilities are attributable to the following:
2007 2007 2006 2006
Deferred Deferred Deferred Deferred 
tax assets tax liabilities tax assets tax liabilities
Non-current assets £’000 £’000 £’000 £’000
Other intangible assets – 1,117 – 1,894
Property, plant and equipment 78 – – (77)
Share options 96 – 310 –
Translation reserve 208 – 27 –
Total carried forward 382 1,117 337 1,817
Notes to the Financial Statements
(continued)
Notes to the Financial Statements
(continued) 45
2007 2007 2006 2006
Deferred Deferred Deferred Deferred 
tax tax tax tax
assets liabilities assets liabilities
£’000 £’000 £’000 £’000
Total brought forward 382 1,117 337 1,817
Current liabilities
Other liabilities 963 – – (168)
Unused tax losses 495 – 620 –
Total 1,840 1,117 957 1,649
Equity
Translation reserve 181 – (93) –
Share options (243) – 243 –
Total (62) – 150 –
Please also refer to note 6 for information on the Group’s tax expense.
14. (LOSS)/EARNINGS PER SHARE
The calculation of the basic (loss)/earnings per share is based on the (loss)/earnings attributable to ordinary shareholders divided
by the weighted average number of shares in issue during the year.
The calculation of diluted earnings per share is based on the basic earnings per share, adjusted to allow for the issue of shares
and the post tax effect of dividends, on the assumed conversion of all dilutive options. 
Reconciliations of the (loss)/earnings and weighted average number of shares used in the calculations are set out below.
2007 2006
Weighted Weighted
average Per share average Per share
Loss number of amount Earnings number of amount
£’000 shares’000 pence £’000 shares ’000 pence
(Loss)/profit attributable to shareholders (1,763) 37,146 – 3,880 37,098 –
Basic (loss)/earnings per share (4.7) 10.5
Diluted (loss)/earnings per share 37,146 (4.7) 37,427 10.4
Weighted average number of ordinary shares 2007 2006
shares 000’s shares 000’s
Issued ordinary share at 1 April 37,127 37,071
Effect of share issued in July 2005 – 20
Effect of share issued in September 2005 – 3
Effect of share issued in December 2005 – 1
Effect of share issued in January 2006 – 2
Effect of share issued in March 2006 – 1
Effect of share issued in September 2006 18 –
Effect of share issued in March 2007 1 –
Weighted average number of ordinary share at 31 March 37,146 37,098
Weighted average number of ordinary shares (diluted) 2007 2006
000’s 000’s
Weighted average number of ordinary share at 31 March 37,146 37,098
Effect of share options on issue – 329
Weighted average number of ordinary shares (diluted) at 31 March 37,146 37,427
Notes to the Financial Statements
(continued) 46
15. EQUITY DIVIDENDS
2007 2006
£’000 £’000
Ordinary shares – dividend for 2005 of 4.5 pence 
per share paid 3 August 2005 – 1,669 
Ordinary shares – dividend for 2006 of 1.7 pence 
per share paid 13 January 2006 – 631
Ordinary shares – dividend for 2006 of 5.1 pence 
per share paid 18 August 2006 1,893 –
Ordinary shares – dividend for 2007 of 1.7 pence 
per share paid 9 January 2007 632 –
2,525 2,300 
2007 2006
Pence Pence
Proposed dividend per share 5.1 5.1 
2007 2006
£’000 £’000
Proposed dividend 1,896 1,893 
16. PROVISIONS
£’000
Carrying amount 1 April 2006 1,278
Additional provisions 5,602
Used provisions (1,703)
Carrying amount 31 March 2007 5,177
Provisions are considered current as their timing of settlement is not at the discretion of the Group.
Provisions represent legal fees being an estimate of the ongoing costs for defending legal claims against the Group. It is
anticipated that the provisions will be used within a period of 2-20 months from the date of initiation based on the actual legal
costs as and when incurred. 
As the timing of spend on the legal costs is dependant on the progress of the litigation which involves various counter parties
and legal authorities, that Group cannot reliably estimate the amounts that will be paid after more than 12 months from the
balance sheet date. Thus, the whole amount is classified as current.
17. TRADE AND OTHER PAYABLES
2007 2006
£’000 £’000
Trade payables 5,123 5,219
Capital creditors 75 150
Accruals 10,893 10,308
16,092 15,677
18. OTHER LIABILITIES
2007 2006
£’000 £’000
Other creditors 2,154 2,242
Social security and other taxes 379 574
2,533 2,816
19. OPERATING LEASES
The Group’s minimum operating lease payments are as follows:
2007 2006
Land & 2007 Land & 2006
buildings Other buildings Other
£’000 £’000 £’000 £’000
Within one year 887 46 952 53
Between one to five years 1,678 5 1,264 8
More than five years 1,524 – 367 –
4,089 51 2,583 61
Notes to the Financial Statements
(continued) 47
Lease payments recognised as an expense during the period amount to £1,095,000 (2006: £1,065,000). No sublease income 
is expected as all assets held under lease agreements are used exclusively by the Group.
No operating lease agreements contain any contingent rent clauses.
The office buliding in India has a renewal option and escalation clause for lease rentals. Apart from the India office building at
Mumbai, none of the operating lease agreements contain renewal options or escalation clauses.
The Company did not have any financial leases at 31 March 2007 (31 March 2006: £nil).
20. FINANCIAL INSTRUMENTS
The Group uses financial instruments, comprising cash, short term borrowings, trade receivables and trade payables, which arise
directly from its operations. The main purpose of these financial instruments is to raise finance for the Group’s operations.
Short term debtors and creditors
The Group’s trade and other receivables are actively monitored to avoid significant concentrations of credit risk.
Interest rate risk
The Group finances its operations through a mixture of retained profits and bank facilities. Bank borrowings are made using
variable interest rates.
Liquidity risk
The Group seeks to manage financial risk, to ensure sufficient liquidity is available to meet foreseeable needs and to invest cash
assets safely and profitably.
Short-term flexibility is achieved through overdraft facilities and short/medium term borrowings.
Borrowing facilities
The Group has undrawn facilities available of £500,000 expiring within one year (2006: £500,000).
Currency risk
The Group is exposed to translation and transaction foreign exchange risk. In relation to translation risk the proportion of assets
held in the foreign currency are matched to an appropriate level of borrowings in the same currency. Transaction exposures are
hedged when known, mainly using the forward exchange hedge market.
The Group seeks to hedge its exposures using a variety of financial instruments, with the objective of minimising the impact of
fluctuations in exchange rates on future transactions and cash flows.
The Group has overseas subsidiaries operating in Ireland where reserves and expenses are denominated in Euros. The Group has
funded the acquisition cost and working capital by a Euro loan. As the Group receives net cash inflows in Euros this loan is being
reduced and replaced, as necessary, by funding denominated in Sterling.
£20.2 million (2006: £20.1 million) of the sales of the Group’s business is to customers in continental Europe/foreign markets
excluding North American operations. The majority of these sales are invoiced in the currencies of the customers involved. The
Group policy is to minimise all currency exposures on any balance not expected to mature within 30 days of its arising through
the use of forward currency contracts, however there were none in place at the year end. All other sales of UK business are
denominated in sterling. 
The tables below show the extent to which Group companies have monetary assets and liabilities in currencies other than their
local currency.
Functional currency of operation Net foreign currency monetary assets/(liabilities)
Indian Other 
US Dollars Euro Rupees currencies Total
£’000 £’000 £’000 £’000 £’000
2007
Sterling 3382,763890(2)3,989   
Dollar 316–––316
Euro 537–––537
Indian Rupees – – – 4,228 4,228
1,191 2,763 890 4,226 9,070
2006
Sterling 2521,7661,058–3,076   
Dollar 361–382–743
Euro 39878––476
Indian Rupees 42 – – 1,734 1,776
1,053 1,844 1,440 1,734 6,071
Fair values
The fair values of the Group’s financial instruments are considered equal to the book value. As these financial instruments are
not publicly traded, the fair values presented are determined by calculating present values of the cash flows anticipated until
maturity of these financial assets.
Notes to the Financial Statements
(continued) 48
21. CAPITAL COMMITMENTS
During the year ended 31 March 2007, the Group entered into contracts to purchase and construct property, plant and
equipment for £453,000 (2006: £172,000). These commitments are expected to be settled in the following financial year.
22. SUBSIDIARY UNDERTAKINGS
At 31 March 2007 the Company held more than 20% of the allotted share capital of the following significant undertakings:
Name Country of Class of share Proportion Nature of
registration or capital held held business
incorporation
Goldshield Pharmaceuticals Limited England and Wales £1 ordinary shares 100% Marketing and distribution of 
pharmaceutical products
Goldshield Limited England and Wales £1 ordinary shares 100% Marketing and distribution of 
vitamins and health supplements
Goldshield Management Services Limited England and Wales £1 ordinary shares 100% Management services
Vitamins Direct Limited England and Wales £1 ordinary shares 100% Marketing and distribution of 
vitamins and health supplements
Regina Health Limited England and Wales £1 ordinary shares 100% Marketing and distribution of 
vitamins and health supplements
B&S House of Health Limited England and Wales £1 ordinary shares 100% Marketing and distribution of 
vitamins and health supplements
Natural Essentials Limited England and Wales £1 ordinary shares 100% Marketing and distribution of 
vitamins and health supplements
Forley Generics Limited England and Wales £1 ordinary shares 100% Marketing of pharmaceutical 
products
Goldshield USA, Inc USA Ordinary shares 100% Intermediate holding company
Golden Pride, Inc USA Ordinary shares 100% Marketing and distribution of 
vitamins and health supplements
WT Rawleigh, Co Canada Ordinary shares 100% Marketing and distribution of 
vitamins and health supplements
Goldshield Services Pvt. Limited India Ordinary shares 100% Management services
Antigen Pharmaceuticals Limited Ireland Ordinary shares 100% Intermediate holding company
Antigen International Limited Ireland Ordinary shares 100% Marketing and distribution of
pharmaceutical products
Antigen Overseas Limited Ireland Ordinary shares 100% Marketing and distribution of
pharmaceutical products
Anpharm Limited Ireland Ordinary shares 100% Marketing and distribution of
pharmaceutical products
Goldshield Healthcare Pvt. Limited India Ordinary shares 100% Marketing and distribution of
vitamins and health supplements 
and telemarketing services
Goldshield Real Estate Pvt. Limited India Ordinary shares 100% Development of Wellbeing Villages
and Resorts
Complete Wellbeing Publishing Pvt. Limited India Ordinary shares 100% Publishing magazines for 
consumers and selling copies, 
subscriptions and advertising space
Goldshield Direct,Inc. USA Ordinary shares 100% Marketing and distribution of 
vitamins and health supplements
Goldshield Management Services, Inc. USA Ordinary shares 100% Management services
Goldshield Business Solutions Limited England & Wales Ordinary shares 100% Accounting and Taxation Services
Notes to the Financial Statements
(continued)
Notes to the Financial Statements
(continued) 49
23. CONTINGENT LIABILITIES
Indemnities and guarantees
The Group has given indemnities in respect of advance payments, deferred purchase consideration and import duty 
guarantees issued on its behalf in the normal course of business. The indemnities given at 31 March 2007 were £583,000 
(2006: £329,000).
Irish operations
On 28 November 2001 the Group acquired the sales, marketing and distribution rights for the Antigen brand from Antigen
Holdings Limited. The companies and assets were acquired at an estimated cost of £9.4 million. The estimated consideration
was to be settled in two parts, firstly by the payment of £5.2 million and secondly by an obligation to discharge the scheme of
arrangement liabilities of the acquired Antigen companies. The Directors obtained legal opinion that the Group’s exposure to the
debts covered by the scheme was restricted to the debts borne by the companies it acquired.
On 29 October 2002, Miza Ireland Limited and each of its Irish subsidiaries, parties to the wider scheme of arrangement, were
placed into examinership. During the prior year the liquidator of Miza Ireland Limited claimed the sum of Δ20.8 million although
no grounds for the claim have been specified in detail. Liability for the claim has been denied. The Directors have received legal
opinion that no basis for claim has been presented by the liquidator which could result in a liability on the part of the company
and that the subsidiaries concerned have grounds for defending the claim.
On the 2 November 2005, the liquidator of Miza Ireland Limited served High Court proceedings against the Group (and other
defendants) for the above-said claim. The claim is presently pending before the High Court Commercial in Ireland.
Serious Fraud Ofﬁce (SFO) Investigation update
In April 2006, the SFO framed formal charges against the company and two of the Company Directors. The Directors do not
believe the Group has acted in an unlawful manner and the case is being defended. Legal and professional costs in this matter
have been provided for.
Scottish and Northern Irish Department of Health claims
Claims have been received from the Scottish Health Authorities and the Department of Health and Social Services and Public
Safety for Northern Ireland claiming damages of around £3.3 million and £1.0 million respectively. The Group vigorously denies
any liability for this claim.
The Directors believe the Group is free from wrong-doing in respect of these allegations. A defence has been filed. 
Further information required by IAS 37 is not disclosed on the grounds that it can be expected to prejudice the outcome of the
litigation. The expected legal and professional costs for this action have been provided for.
24. ACCOUNTING ESTIMATES AND JUDGEMENTS
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances.
The Group makes estimates and judgements concerning the future. The estimates and judgements that have a significant 
risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are 
discussed below.
Impairment of goodwill and other intangibles
The Group test annually the carrying values of goodwill and other intangibles for any possible impairment in accordance with the
accounting policy statement in Note 1. The achievement of the growth and profitability by the individual cash generating units
is critical in substantiating the carrying value of goodwill and intangibles. Refer to note 7 of Consolidated IFRS Financial
Statements on page 40.
Legal and other disputes
The Group faces ongoing litigation issues for claims against it, the same detailed in Note 23 on contingent liabilities. The Group
continues to vigorously deny any liabilities from these claims but the outcome of these legal issues and any resulting financial
implications could have a material impact on the Group’s financial statements.
Share options
The share options calculation takes into account future dividends of 6 pence and a volatility rate of 45%, based on expected
share price. It is assumed that the 3 and 5 year share save options are held for 3 and 5 years respectively, ie. the duration of
the savings contracts, because the bonus is paid then and the employee has cash tied up. For the employee stock options it is
assumed that 3 year options will be held for 5 years and that 5 year options will be held for 6 years. Both could be held for
longer before expiry, but on average employees are likely to seek liquidity or leave the company before the full term. The risk-
free interest rate was determined at 5%. The underlying expected volatility was based upon a calculation of historic volatility
during the period 2002-2004.
Notes to the Financial Statements
(continued) 50
Income taxes
The Group is subject to taxes in various jurisdictions. Significant judgment is required in determining the Group provision for
income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the
ordinary course of business. The Group recognises liabilities for anticipated tax audit issues based on estimates as to whether
additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially
recorded, such differences will impact the income tax and deferred tax provision in the year in which such determination is made.
25. RELATED PARTY TRANSACTIONS
The Group has agreed to an unsecured facility amounting to £500,000 (2006: £nil) each to Ajit R Patel and Kirti V Patel, for
payment of legal fees in defending charges framed by the Serious Fraud Office (SFO). An amount of £200,000 (2006: £nil) has
been provided for against these facilities and forms part of the exceptional legal costs in the Income Statement. The amount
drawn against these facilities as at 31 March 2007 is £482,000 (2006: £nil). Subsequent to 31 March 2007 the Group has
received £800,000 from the Insurance Company and the broker against settlement of claim for the Director’s and Officer’s
Insurance policy which has been set against the unsecured facility to the Director’s.
26. POST BALANCE SHEET EVENTS
Settlement of English Department of Health claims
The Group has reached an agreed £4 million settlement with the English Department of Health regarding the alleged conspiracy
surrounding the sale of the anticoagulant drug, warfarin. Under the terms of the settlement Goldshield have agreed to pay this
amount, on a full and final basis and without admission of liability.
Disposal of certain Indian business and assets
To enable the business to focus both management time and the full resources of Goldshield on its Pharmaceutical and Healthcare
businesses, it has been decided that the Group will dispose of certain of the non-core Indian businesses and also to outsource
the development of the Wellbeing Healthcare villages and resort in Goa. The sites identified by the Group will be retained pending
receipt of the planning approvals at which time they will be co-developed.
Ajit R Patel has expressed an interest in acquiring these non-core assets and has entered into an agreement with Goldshield,
summary details of which are set out below.
Ajit R Patel, or a company controlled by him, will purchase the entire issued share capital of Goldshield Business Solutions
Private Limited (GBSPL), an Indian incorporated wholly owned subsidiary of Goldshield for a consideration of INR 110 million
(approximately £1.4 million). The consideration will be payable in cash on completion and will be applied to general corporate
purposes. GBSPL will be required by 28 February, 2008 to change its name to Sanda Business Solutions and the Goldshield
name will revert to the Group.
Notes to the Financial Statements
(continued) 51
We have audited the parent Company financial statements of Goldshield Group plc for the year ended
31 March 2007 which comprise the Balance Sheet and notes 1 to 14. These parent Company financial
statements have been prepared under the accounting policies set out therein. We have also audited the
information in the Directors’ Remuneration Report that is described as having been audited.
We have reported separately on the Group financial statements of Goldshield Group plc for the year
ended 31 March 2007.
This report is made solely to the Company’s members, as a body, in accordance with Section 235
of the Companies Act 1985. Our audit work has been undertaken so that we might state to the
Company’s members those matters we are required to state to them in an auditor’s report and for
no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company and the Company’s members as a body, for our audit work, for
this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
The Directors’ responsibilities for preparing the Annual Report, the Directors’ Remuneration Report
and the parent Company financial statements in accordance with United Kingdom law and
Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out in the
Statement of Directors' Responsibilities.
Our responsibility is to audit the parent Company financial statements and the part of the Directors'
Remuneration Report to be audited in accordance with relevant legal and regulatory requirements
and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the Group financial statements give a true and fair view
and whether the Group financial statements have been properly prepared in accordance with the
Companies Act 1985 and Article 4 of the IAS Regulation. We also report to you whether in our
opinion the information given in the Directors’ Report is consistent with the financial statements.
The information given in the Directors’ Report includes that specific information presented in the
Chairman’s Statement, Report of the Finance Director and the Chief Executive Officer’s Operating
Review, that is cross referred from the Business Review section of the Directors’ Report.
In addition we report to you if, in our opinion, the Company has not kept proper accounting records,
if we have not received all the information and explanations we require for our audit, or if information
specified by law regarding Directors’ remuneration and other transactions is not disclosed.
We read other information contained in the Annual Report and consider whether it is consistent with
the audited parent Company financial statements. The other information comprises only the
Directors, Secretary and Advisors, Business Highlights, Chairman's Overview, Chief Executives
Officer's Operating Review, Report of the Finance Director, Five Year Review, Directors, Report of
the Directors, Corporate Governance Report, Corporate Social Responsibility and the unaudited part
of the Directors' Remuneration Report. We consider the implications for our report if we become
aware of any apparent misstatements or material inconsistencies with the parent Company financial
statements. Our responsibilities do not extend to any other information.
Report of the Independent Auditor to the
Members of Goldshield Group plc 52
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland)
issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence
relevant to the amounts and disclosures in the parent Company financial statements and the part of
the Directors’ Remuneration Report to be audited. It also includes an assessment of the significant
estimates and judgments made by the Directors in the preparation of the parent Company financial
statements, and of whether the accounting policies are appropriate to the Company’s circumstances,
consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we
considered necessary in order to provide us with sufficient evidence to give reasonable assurance
that the parent Company financial statements and the part of the Directors’ Remuneration Report
to be audited are free from material misstatement, whether caused by fraud or other irregularity or
error. In forming our opinion we also evaluated the overall adequacy of the presentation of
information in the parent Company financial statements and the part of the Directors’ Remuneration
Report to be audited.
Opinion
In our opinion:
• the parent Company financial statements give a true and fair view, in accordance with United
Kingdom Generally Accepted Accounting Practice, of the state of the Company’s affairs as at 31
March 2007;
•
the parent Company financial statements and the part of the Directors’ Remuneration Report to
be audited have been properly prepared in accordance with the Companies Act 1985; and
•
the information given in the Directors’ Report is consistent with the financial statements.
GRANT THORNTON UK LLP
REGISTERED AUDITORS
CHARTERED ACCOUNTANTS
LONDON
26 JUNE 2007
Report of the Independent Auditor to the 
Members of Goldshield Group plc
(continued) 53
Company Balance Sheet at 31 March 2007
Notes 2007 2006
£’000 £’000
Fixed assets
Goodwill 5 809 2,127 
Other intangible assets 5 12,521 17,383
Investments 6 7,159 6,871
20,489 26,381 
Current assets
Debtors: due after more than one year 7 3,893 9,919 
Debtors: due within one year 7 3,097 7
Cash at bank and in hand 9,974 7,829
16,964 17,755
Creditors: amounts falling due within one year 8 (1,911) (13,160)
Net current assets 15,053 4,595 
Total assets less current liabilities 35,542 30,976 
Provisions for liabilities 9 (1,117) (1,894)
34,425 29,082
Capital and reserves
Called up share capital 10 1,859 1,856
Share premium account 11 21,549 21,485
Profit and loss account 11 11,017 5,741
Shareholders’ funds 12 34,425 29,082
The financial statements were approved by the Board of Directors on 26 June 2007 and signed on their behalf by:
Ajit R Patel, Chief Executive Officer
Rakesh V Patel, Finance Director
The accompanying accounting policies and notes form an integral part of these financial statements. 54
1. PRINCIPAL ACCOUNTING POLICIES
Basis of preparation
The financial statements have been prepared in accordance with applicable United Kingdom accounting standards and under the
historic cost convention. The Directors have reviewed the principal accounting policies and consider they remain the most
appropriate for the Company. The principal accounting policies of the Company have remained unchanged from the previous year.
Investments
Investments in subsidiary undertakings in the balance sheet of the Company are included at the cost of the shares held less
amounts written off.
Intangible ﬁxed assets
Goodwill, brand names, know-how, licences, trademarks and similar intangible items are capitalised at historical cost net of any
provision for impairment and amortised on a straight line basis over their estimated useful economic lives, which range between
seven and ten years.
Deferred taxation
Deferred tax is recognised on all timing differences where the transactions or events that give the Group an obligation to pay
more tax in the future, or a right to pay less tax in the future have occurred by the balance sheet date. Deferred tax assets are
recognised when it is more likely than not that they will be recovered. Deferred tax is measured using rates of tax that have been
enacted or substantially enacted by the balance sheet date. Defered taxes are not discounted.
Foreign currencies
Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction. Monetary assets and
liabilities in foreign currencies are translated at the rates of exchange ruling at the balance sheet date. All other exchange differences
are dealt with through the profit and loss account.
Financial instruments
Financial assets and financial liabilities are recognised on the Company’s balance sheet when the Company becomes a party
to the contractual terms of the instrument.
• Trade receivables
Trade receivables do not carry any interest and are stated at their fair values, which equal the estimated present value of the
future cash flows.
• Bank borrowings
Interest bearing bank loans and overdrafts are recorded at the fair value. Finance charges including premiums payable on
settlement or redemption and direct issue costs, are accounted for on an accruals basis to the profit and loss account using
the effective interest method and are added to the carrying value of instrument to the extent that they are not settled in the
period in which they arise.
• Trade payables
Trade payables are not interest bearing and are stated at their fair value.
• Equity instruments
Equity instruments issued by the Company are recorded at the fair value.
Notes to the Company’s Financial Statements 55
2. RESULT FOR THE FINANCIAL YEAR
The Company has taken advantage of Section 230 of the Companies Act 1985 and has not included its own profit and loss
account in these financial statements. The profit after tax for the year of the Company was £7,801,000 (2006: Loss
£1,290,000) which is dealt with in the financial statements of the Company.
Auditors remuneration
The audit fees for the Company was £6,000 (2006: £5,000). Auditor’s remuneration for other services is disclosed in note 3
of Consolidated IFRS financial statements on page 38.
Fees paid to Company’s auditor, Grant Thornton UK LLP, and its associates for services other than statutory audit of the
Company are not disclosed in Goldshield Group plc’s accounts since the consolidated accounts of Goldshield Group plc are
required to disclose non-audit fees on a consolidated basis.
3. DIRECTOR AND EMPLOYEES 
There were no employees in the Company as at 31 March 2007 and 31 March 2006.
Details in respect of Directors’ emoluments are included within the Directors’ Remuneration Report on page 24.
4. EQUITY DIVIDENDS
2007 2006
£’000 £’000
Ordinary shares – dividend for 2005 of 4.5 pence per share paid 3 August 2005 – 1,669
Ordinary shares – dividend for 2006 of 1.7 pence per share paid on 13 January 2006 – 631
Ordinary shares – dividend for 2006 of 5.1 pence per share paid on 18 August 2006 1,893 –
Ordinary shares – dividend for 2007 of 1.7 pence per share paid on 9 January 2007 632 –
2,525 2,300
2007 2006
Pence Pence
Proposed dividend per share 5.1 5.1
2007 2006
£’000 £’000
Proposed dividend 1,896 1,893
5. INTANGIBLE FIXED ASSETS
Brand names
know-how
licences and
trade marks Goodwill Total
£’000 £’000 £’000
Cost
At 1 April 2006 and 31 March 2007 48,894 14,605 63,499 
Amortisation and impairment losses
At 1 April 2006 31,511 12,478 43,989 
Amortisation 4,105 551 4,656
Impairment losses 757 767 1,524
At 31 March 2007 36,373 13,796 50,169
Carrying amounts
At 31 March 2007 12,521 809 13,330 
At 31 March 2006 17,383 2,127 19,510
The Board has considered the useful economic life for significant acquisitions and concluded in each case that the useful economic
life ranges between seven and ten years.
The discount rate used to calculate the impairment loss is 8%.
The length of the forecast period considered for the impairment workings is 2 to 5 years based on the acquisition date of the
products and no growth in revenue is considered in the future forecasts.
Notes to the Company’s Financial Statements 
(continued) 56
6. FIXED ASSET INVESTMENTS
2007 2006
£’000 £’000
Investments in Group undertakings at cost 7,159 6,871 
2007
Cost £’000
At 1 April 2006 6,871
Additions 4,758
At 31 March 2007 11,629
Amounts written off in year ended 31 March 2007 (4,470)
Net book amount at 31 March 2007 7,159
Shares in subsidiary undertakings
Refer Note 22 of Consolidated IFRS financial statements on Page 48.
7. DEBTORS
Debtors due after more than one year 2007 2006
£’000 £’000
Amounts owing by subsidiary undertakings 3,893 9,919
Debtors due within one year 2007 2006
£’000 £’000
Other debtors 1–
Amounts owing by subsidiary undertakings 3,096 –
Prepayments and accrued income – 7
3,097 7
8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2007 2006
£’000 £’000
Amounts owing to subsidiary undertakings – 11,346
Capital creditors 75 150
Current taxation 1,326 1,104
Social security and other taxes 174 224
Other creditors 336 336
1,911 13,160
Notes to the Company’s Financial Statements
(continued) 57
9. PROVISIONS FOR LIABILITIES
2007 2006
£’000 £’000
Deferred taxation 1,117 1,894
Deferred taxation provided for in the financial statements is set out below:
2007 2006
£’000 £’000
Accelerated capital allowances 1,117 1,894 
Total 1,117 1,894
2007 2006
£’000 £’000
At 1 April 2006 1,894 2,913
Movement in the year (777) (1,019)
At 31 March 2007 1,117 1,894
10. CALLED UP SHARE CAPITAL
2007 2006
£’000 £’000
Authorised
100,000,000 ordinary shares of 5 pence each (2006: 100,000,000) 5,000 5,000
2007 2006
£’000 £’000
Allotted, called up and fully paid
37,176,033 ordinary shares of 5 pence each (2006: 37,126,611) 1,859 1,856 
During the year 49,422 shares were issued under the unapproved employee share option scheme and the employee share save
scheme. The difference between the total consideration of £66,826 and the nominal value of £2,471 has been credited to the
share premium account
Share options
Refer Note 12 of Consolidated IFRS financial statements on pages 43 to 44.
11. SHARE PREMIUM ACCOUNT AND RESERVES
Proﬁt Share
& loss premium
account account
£’000 £’000
At 1 April 2006 5,741 21,485
Equity dividends paid (2,525) – 
Premium on allotment during the year – 64
Retained profit for the year 7,801 –
At 31 March 2007 11,017 21,549
Notes to the Company’s Financial Statements
(continued) 58
Notes to the Company’s Financial Statements
(continued)
12. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS’ FUNDS
2007 2006
£’000 £’000
Profit/(loss) for the financial year after taxation 7,801 (1,289)
Equity dividends paid (2,525) (2,300)
Issue of shares 67 128
Net increase/(decrease) in shareholders’ funds 5,343 (3,461)
Shareholders’ funds at 1 April 2006 29,082 32,543
Shareholders’ funds at 31 March 2007 34,425 29,082
13. CONTINGENT LIABILITIES
Refer to note 23 of Consolidated IFRS financial statements on page 49.
14. POST BALANCE SHEET EVENTS
Refer to note 26 of Consolidated IFRS financial statements on page 50. 59
Notice is hereby given that the Annual General Meeting of Goldshield Group plc will be held at
Panmure Gordon, 155 Moorgate, London EC2M 6XB on 8 August 2007 at 10.00 am when the
following business will be transacted:
Report and accounts
1. To receive the accounts and report of the Directors and auditor for the year ended 
31 March 2007.
Appointment of Directors
2. To re-appoint Ajay M Patel, retiring by rotation, in accordance with the Company’s Articles of
Association, as a Director of the Company.
3. To re-appoint Rakesh V Patel, retiring by rotation, in accordance with the Company’s Articles of
Association, as a Director of the Company.
Auditor 
4. To re-appoint Grant Thornton UK LLP as auditor to the Company and to authorise the Directors
to fix their remuneration. 
Dividend
5. To declare a dividend of 5.1 pence per Ordinary Share.
Directors’ Remuneration Report
6. To receive and approve the Directors’ Remuneration Report for the year ended 31 March 2007.
Ordinary resolution
7. To consider and, if thought fit, to pass the following resolution, as an ordinary resolution:
That the Directors be and are generally and unconditionally authorised in connection with Section 80
of the Companies Act 1985 (the “Act”) to allot relevant securities (as defined in Section 80(2) of the
Act) (in substitution for and to the exclusion of any other power previously granted to the Directors of
the Company pursuant to Section 80 of the Act) to an aggregate nominal amount of £619,600 such
authority to expire at the conclusion of 15 months from the date of the passing of the Resolution or, if
earlier, the Annual General Meeting of the Company to be held in 2008 save that the Company may
before such expiry make an offer or agreement which would or might require relevant securities to be
allotted after such expiry and the Directors may allot relevant securities pursuant to such an offer or
agreement as if the authority granted by this Resolution had not expired provided that nothing in this
Resolution shall render unauthorised any act done or allotment of any relevant securities, or any offer
or agreement which would or might require relevant securities to be allotted and made prior to the
passing of this Resolution pursuant to any prior authority.
Notice of Annual General Meeting 60
Special resolution
8. To consider and, if thought fit, to pass the following resolution, as a special resolution:-
That, subject to Resolution set out at item 7 in this notice being duly passed, the Directors
be and are hereby empowered pursuant to Section 95 of the Companies Act 1985 ("the
Act") to allot equity securities (as defined in Section 94(2) of the Act), which are to be paid
up in cash, as if Section 89(1) of the Act did not apply to such allotment, provided that
this power shall be limited to:
(a) the allotment of equity securities in connection with an offer by way of rights or other pre-
emptive offer in favour of the holders of Ordinary Shares and others entitled to participate
in such offer where the equity securities respectively attributable to the interests of ordinary
shareholders and others so entitled are proportionate (as nearly as may be) to the
respective number of Ordinary Shares held or deemed to be held by them, subject only to
such exclusions or other arrangements as the Directors deem necessary or expedient to
deal with fractional entitlements, legal or practical problems arising in any overseas
territory or the equipment of any regulatory body or stock exchange, or any other matter
whatsoever; and
(b) the allotment (otherwise than pursuant to paragraph (a) above) of equity securities up to
an aggregate nominal amount of £92,940. Such power to be in substitution for and to the
exclusion of any other power previously granted to the Directors of the Company pursuant
to Section 95 of the Act, provided that nothing in this Resolution shall render unauthorised
or otherwise affect any act done or allotment of equity securities or any offer or agreement
which would or might require equity securities to be allotted, made prior to the passing of
this Resolution pursuant to any prior power (and any such prior power shall remain in full
force and effect in relation to any allotment pursuant to or arising out of any offer or
agreement as aforesaid) and the power conferred by this Resolution (unless previously
varied or revoked by a Special Resolution of the Company) shall expire at the conclusion
of the Annual General Meeting of the Company to be held in 2008 or 15 months after the
passing of this Resolution whichever is earlier but so that the power conferred by this
Resolution shall allow the Company to make before expiry of this power offers or
agreements which would or might require equity securities to be allotted after such expiry
and notwithstanding such expiry the Directors may allot equity securities in pursuance of
such offers or agreements.
Special resolution
9. To consider and, if thought fit, to pass the following resolution, as a special resolution:
That the Company be and is hereby generally and unconditionally authorised for the
purpose of Section 166 of the Companies Act 1985 ("the Act") to make one or more market
purchases (within the meaning of Section 163(3) of the Act) on the Official List of the UK
Listing Authority of Ordinary Shares of 5 pence each in the capital of the Company
("Ordinary Shares") provided that:
(a) the maximum aggregate number of Ordinary Shares hereby authorised to be purchased is
3,717,603 (representing approximately 10 per cent of the Company’s issued Ordinary
share capital as at 20 June 2007;
(b) the minimum price which may be paid for such Ordinary Shares is 5 pence per share
(exclusive of expenses);
(c) the maximum price (exclusive of expenses) which may be paid for an Ordinary Share shall
be not more than 5 per cent above the average of the market values for an Ordinary Share
as derived from the London Stock Exchange Daily Official List for the five business days
immediately preceding the date on which the Ordinary Share is purchased;
(d) unless previously renewed, varied or revoked, the authority hereby conferred shall expire
at the conclusion of the next Annual General Meeting of the Company to be held in 2008
or within 15 months from the date of passing of this resolution, whichever shall be the
earlier; and
Notice of Annual General Meeting
(continued) 61
Notice of Annual General Meeting
(continued)
(e) the Company may make a contract or contracts to purchase Ordinary Shares under the
authority hereby conferred prior to the expiry of such authority which will or may be
executed wholly or partly after the expiry of such authority and may make a purchase of
Ordinary Shares in pursuance of any such contract or contracts.
By Order of the Board
S Venkateswaran
Secretary, 26 June 2007.
Registered Office: Bensham House, 324 Bensham Lane, Thornton Heath, Surrey CR7 7EQ
Registered in England & Wales under Company Number 2330913
NOTES
1. Only holders of Ordinary Shares or their duly appointed representatives are entitled to attend and vote
at the meeting. Members so entitled may appoint one or more persons to attend and (on a poll) vote on
their behalf. A proxy need not be a member of the Company.
2. A form of proxy is enclosed for use in connection with the business set out above. To be valid, the form
of proxy and any power of attorney or other authority under which it is signed must be lodged with the
Company’s Registrars, Capita Registrars, The Registry, 34 Beckenham Road, Beckenham, Kent BR3
4TU, not less than forty-eight hours before the time appointed for holding the General Meeting or
adjournment as the case may be.
3. Completion and return of a form of proxy does not preclude a member from attending and voting at the
meeting.
4. Copies of all Directors’ service contracts will be available for inspection at the principal business address,
NLA Tower, 12-16 Addiscombe Road, Croydon, Surrey CR0 0XT, of the Company during normal
business hours on each business day (Saturdays, Sundays and public holidays excluded) and at
Panmure Gordon, 155 Moorgate, London EC2M 6XB, fifteen minutes prior to and during the above
Annual General Meeting.
5. Pursuant to Regulation 34 of the Uncertificated Securities Regulations 1995, the Company specifies
that only those shareholders registered in the Register of Members of the Company as at 10.00 am on
8 August 2007, shall be entitled to attend or vote at the above Annual General Meeting in respect of
the number of shares registered in their name at that time. Changes in the Register of Members after
that time will be disregarded in determining the rights of any person to attend or vote at the meeting. 62
Financial Calendar
27 June 2007 Announcement of results and proposal of dividend
25 July 2007 Shares become ex-dividend
27 July 2007 Record date for proposed dividend
8 August 2007 2007 Annual General Meeting
20 August 2007 Expected date of payment of proposed dividend
December 2007 Announcement of interim results and interim dividend for the six months
ended 30 September 2007
December 2007 Shares become ex-dividend
January 2008 Payment of interim dividend for 2007/08
June 2008 Announcement of results and proposal of dividend
September 2008 Shares become ex-dividend 63
Useful Information Sources for Shareholders
Internet
Information about the Group can be found on the internet at www.goldshieldplc.com
Share price information
Shareholders are able to keep track of the share price through the financial press and at the
Group’s internet site in the Investor Relations Section.
Changes in shareholder details
Shareholders should advise any changes in their personal details to the registrar, Capita
Registrars, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU. 64
Notes