Bile breaks down the fat molecules into smaller globules by a process known as emulsification in the small intestine. Pancreatic lipase is water soluble and can only work at the surface of fat globules, emulsification, therefore, increases the surface area making it possible for pancreatic lipase to act on the fats and digest it. So, in the absence of bile emulsification will not occur and hence digestion of fats cannot occur in the absence of bile.