MIRA INFORM REPORT

Report Date :

15.11.2006

IDENTIFICATION DETAILS

Name :	MONSANTO INDIA LIMITED
Formerly Known As :	MONSANTO CHEMICALS OF INDIA LIMITED
Registered Office :	Ahura Centre, 5^th Floor, 96, Mahakali Caves Road, Andheri (East), Mumbai – 400 093, India
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	08.12.1949
Com. Reg. No.:	11-7912
CIN No.: [Company Identification No.]	L74999MH1949PLC007912
TAN No.: [Tax Deduction & Collection Account No.]	MUMM19093E
PAN No.: [Permanent Account No.]	AAACM2875L
Legal Form :	A Public Limited Liability Company. The shares of the company are listed on the Stock Exchanges. The company is a subsidiary of Monsanto Company (now known as Pharmacia Corporation), USA.
Line of Business :	Manufacturing and Marketing of agricultural and industrial chemicals

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Maximum Credit Limit :	USD 13000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a subsidiary of Monsanto Company (now known as Pharmacia Corporation) of USA. Available information indicates high financial responsibility of the company. Financial position is good. Payments are correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Ahura Centre, 5^th Floor, 96, Mahakali Caves Road, Andheri (East), Mumbai – 400 093, India
Tel. No.:	91-22-28246450 /26902100/67029851
Fax No.:	91-22-26902111 /26902121/67023361/28244707
E-Mail :	info@monsantoindia.com
Website :	http://www.monsantoindia.com
Factories :	1, 4 & 5, Madhuban Industrial Estate, Madhuban Dam Road, Rakholi, Silvassa – 396 240, Union Territory of Dadra & Nagar Haveli, India Moka Road, Srivara Village, Bellary – 583 103, Karnataka, India Bapirajagudem Village, Pedavegi Mandal, Vijaya Rai Post, West Godavari Dist. – 534 475, Andhra Pradesh, India

DIRECTORS

Name :	Ms. Nicole M. Ringenberg
Designation :	Chairperson
Name :	Mr. Felipe Osorio
Designation :	Managing Director
Name :	Mr. R.C. Khanna
Designation :	Director
Name :	Mr. H.C. Asher
Designation :	Director
Name :	Mr. William Mailman
Designation :	Director
Name :	Mr. Mark J. Deadwyler
Designation :	Director
Name :	Mr. Pradeep Poddar
Designation :	Director
OTHER PERSONNEL
Name :	Mr. Ajai Jain
Designation :	Company Secretary & Counsel (Legal & Taxation)

MAJOR SHAREHOLDERS

Name of Shareholders	No. of Shares	Percentage (%)
Promoters	6227022	72.15
Mutual Funds	408560	4.74
Nationalised Banks	600	0.01
Bodies Corporate	149207	1.73
Public	1578506	18.29
NRI/FIIs	232762	2.69
Others	34517	0.39
TOTAL	8631174	100.000

BUSINESS DETAILS

Line of Business :

Manufacturing and Marketing of agricultural and industrial chemicals

PRODUCTION STATUS

The company’s production status for the year 31.03.2005 was as under:

Class of Goods	Unit	Installed Capacity	Actual Production
Formulation	KL p.a.	39000	7627
Seeds	MT p.a.	30000	28788

GENERAL INFORMATION

No. of Employees :	400
Bankers :	v Citibank N.A. v Canara Bank
Facilities :	--

Banking Relations :	Good
Auditors :	Deloitte Haskins & Sells Chartered Accountants
Address :	Mumbai
Associates/Subsidiaries :	Maharashtra Hybrid Seeds Company Limited SUBSIDIARIES v P. T. Branita Sandhini v Monsanto Philippines Inc. v Monsanto Seeds (Thailand) Limited v Monsanto Australia Limited v Parry Monsanto Seeds Limited v Monsanto Singapore Pte. Ltd. v Monsanto (Bangladesh) Limited v Monsanto (Malaysia) Sdn. Bhd. v Monsanto Holdings Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
10,000,000	Equity Shares	Rs. 10/- each	Rs. 100.000 millions

Issued & Subscribed Capital :

No. of Shares	Type	Value	Amount
8,631,574	Equity Shares	Rs. 10/- each	Rs. 86.316 millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
8,631,174	Equity Shares	Rs. 10/- each	Rs. 86.312 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		86.312	86.312	86.312
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3183.916	3735.657	3193.416
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3270.228	3821.969	3279.728
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	20.000	20.000
TOTAL BORROWING		0.000	20.000	20.000
DEFERRED TAX LIABILITIES		0.000	7.282	6.743
TOTAL		3270.228	3849.251	3306.471
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		673.171	645.114	587.504
Capital work-in-progress		81.194	0.000	46.174
INVESTMENT		501.665	2016.483	0.002
DEFERREX TAX ASSETS		14.742	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1028.590	855.997	984.515
	Sundry Debtors	303.818	338.090	646.790
	Cash & Bank Balances	146.989	778.265	1693.187
	Other Current Assets	9.578	6.247	12.981
	Loans & Advances	1463.300	492.904	43.396
Total Current Assets		2952.275	2471.503	3380.869
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities & Provisions	952.819	1283.849	1095.078
Total Current Liabilities		952.819	1283.849	1095.078
Net Current Assets		1999.456	1187.654	2672.791
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3270.228	3849.251	3306.471

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover [including other income]	3461.973	3909.975	3432.446
Profit/(Loss) Before Tax	757.617	893.513	833.306
Provision for Taxation	29.756	125.738	140.296
Profit/(Loss) After Tax	727.680	767.775	693.010
Export Value	355.861	357.578	429.305
Import Value	747.214	710.511	640.786
Total Expenditure	2704.356	3016.462	2599.140

QUARTERLY RESULTS

PARTICULARS	30.06.2006 (1^st Quarter)	30.09.2006 (2^nd Quarter)
Sales Turnover	1598.800	665.000
Other Income	41.600	36.800
Total Income	1640.400	701.800
Total Expenditure	1072.400	609.400
Operating Profit	568.000	92.400
Interest	0.700	0.700
Gross Profit	567.300	91.700
Depreciation	19.900	19.600
Tax	28.600	20.800
Reported PAT	521.500	58.100

200606 Quarter 1 - Status of Investor Complaints for the quarter ended 30.06.2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 18 Complaints disposed off during the quarter 18 Complaints unresolved at the end of the quarter Nil 1. The Company's performance is affected having regard to the mix of products sold in respective quarters. 2. The Company has one primary business segment namely 'Agriculture Inputs'. 3. The Statutory Auditors have carried out a limited review of the results for the quarter ended 30.06.2006. 4. Previous period's / Year's figures have been re-grouped wherever necessary to correspond with the current period's figures. 5. The results have been taken on record by the Board of Directors at its meeting held on 27.07.2006

200609 Quarter 2 - : 1. The Company's performance is affected having regard to the mix of products sold in respective quarters. 2. The Company has one primary business segment namely Agriculture Inputs. 3. Information on investor complaints for the quarter (Nos.) Opening Balance - 0, New - 8, Disposals - 8 and Closing Balance - 0. 4. The financial results for the quarter ended 30.09.2006 have been reviewed by the Audit Committee and by the Board of Directors at their meeting held on 26.10.2006 and the Statutory Auditors have carried out a limited review of the financial results. 5. Previous period's/Year's figures have been re-grouped wherever necessary to correspond with the current period's/year's figures. 6. In terms of the resolution passed by the shareholders of the Company through Postal Ballot on 06.10. 2006, the Company has sold its herbicide business under the trade mark Leader Business (Sulfosulfuron 75% WG) on 09.10.2006 at a consideration of Rs.301.365 Millions and the effect of this transaction will be reflected in the financial results of the next quarter. 7. The Directors have declared an interim dividend of Rs.10/- per share at their meeting held on 26.10.2006 . The record Date for the payment of this interim dividend will be 21.11.2006 .

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt Equity Ratio	0.00	0.01	0.01
Long Term Debt Equity Ratio	0.00	0.01	0.01
Current Ratio	2.41	2.58	3.48
TURNOVER RATIOS
Fixed Assets	3.62	4.53	4.10
Inventory	3.73	4.32	3.69
Debtors	11.02	8.07	5.48
Interest Cover Ratio	47.16	46.35	64.11
Operating Profit Margin (%)	24.22	24.96	26.69
Profit Before Interest and Tax Margin (%)	21.99	22.96	24.27
Cash Profit Margin (%)	22.91	21.31	22.29
Adjusted Net Profit Margin (%)	20.69	19.31	19.87
Return on Capital Employed (%)	21.75	25.57	27.74
Return on Net Worth (%)	20.52	21.62	22.87

STOCK PRICES

Face Value	Rs. 10.00
High	Rs. 1560.00/-
Low	Rs. 1551.00/-

LOCAL AGENCY FURTHER INFORMATION

HISTORY:

Subject was incorporated on 8^th December 1949 at Mumbai in Maharashtra having Company Registration Number 7912.

Monsanto India Ltd ( MIL)[formerly known as Monsanto Chemicals of India], a subsidiary of Monsanto Company, USA is a leading manufacturer of Agro Chemicals and Hybrid Seeds. 

 MIL which commenced business in 1949 has lauched first rice herbicide i.e Machete in 1975. Lasso, Roundup and Leader are MIL's leading brands in Weed control segment. The company also markets Avadex, a herbicide used on wheat crops. MIL offered shares to Indian Public in 1989 to reduce foreign equity holding and to diversify operations. 

 Monsanto's products are marketed all over the country through an effective distributor network. It has acquired valuable experience and expertise in marketing and selling its products in India. 

 The parent company has integreated its agriculture business in India with the company. The integreation has been done through acquisition of the entire share capital of Monsanto Technologies India, a subsidiary of the parent company. 

 Monsanto Technologies India (MTIL) is engaged in the research, production, processing and marketing of Corn and Sunflower hybrid seeds. With the integration MTIL is now the 100% subsidiary of the company. Monsanto India as a part of this intergration also acquired the entire agriculutral business from Monsanto Enterprise and the agricultural business related assets from Monsanto Holdings. 

 As a consideration of all the three strategic acquisitions, in April 2000, the company issued 23,13,031 equity shares at price of Rs 1480 per equity shares. During the year 2000-01, the company installed new capacity of 30000 MT of seeds. 

 MIL corn drying facility located at Eluru in Andhra Pradesh is continuously being expanded to meet the increasing demand.

DIRECTORS: 

Dr.S.P.Adarkar, Director of the Company, expired on 7th March, 2005 after a short illness. Dr. S.P. Adarkar helped writing the early chapters of Monsanto's business in India with many struggles and many successes too. He had the distinction of having started Monsanto's Chemical business in India in 1947 and was instrumental in incorporating the Company in 1949. The Company's first Agro Chemical plant was set up under his leadership in Lonavla in 1969. Products like Machete and Roundup were introduced in India under his leadership and they still remain among the very successful products of Monsanto. Dr. S. P. Adarkar worked with Monsanto India as the Managing Director upto 1988 and thereafter, as a Director till his last breath. The Directors record their sincere appreciation of the valuable contribution of Dr.S.P.Adarkar during his long association with the Company. 

During the year, Mr. Sekhar Natarajan resigned as the Managing Director of the Company consequent to his relocation to Monsanto Company, USA. The Board wishes to record its appreciation of the valuable services provided by Mr. Sekhar Natarajan, whose stewardship helped achieve new heights in Sales and profitability during his tenure with the Company. Mr. Felipe Osorio has assumed charge as the new Managing Director of the Company with effect from 1st March, 2005. Mr. Felipe Osorio has served Monsanto Company in several key business positions successfully, at different locations in the world for over twelve years. 

During the year, Mr. Allen Smith resigned from the Board in view of his relocation from Asia Pacific Region. The directors would like to place on record their sincere gratitude for the guidance and contribution made by Mr. Allen Smith in the growth of the business in India. Pursuant to the provisions of Article 111 of the Articles of Association, Ms.Nicole M.Ringenberg was appointed as Chairperson and Non Executive Director of the Company on 22nd July, 2004 to fill the casual vacancy caused by the resignation of Mr. Allen Smith. 

 Ms. Nicole M.Ringenberg - Business Lead-Asia Pacific, has been associated with Monsanto Company, USA for the past twenty years in various challenging Finance roles. Presently, she is responsible for overall strategies and operations of the Asia Pacific Region. 

 Mr. R. C. Khanna retires by rotation at the ensuing Annual General Meeting and being eligible, offers himself for re-appointment. 

BUSINESS

Subject is engaged in manufacturing and marketing of agricultural and industrial chemicals.

The company pioneered the chemical weed control concept in India and is a leader in rice herbicides, marketed under the Machete brand. The company also markets Avadex, a herbicide used on wheat crops.

During the year under report, the company established a new corn drying facility at Eluru in Andhra Pradesh. This plant was commissioned in February 2002.

Generic names of the principal products of the company are:

Item Code No. (ITC CODE)	Products Description
Pesticides/Herbicides	380830.09
Hybrid Seeds	NA

It is in trade terms with:

• Anil International
• Aryan Paper Containers
• Ajit Print and Pack Industries
• Construction Corporation
• Caps and Containers Industries
• Electromech Fire Fighters Private Limited
• Energyspin Private Limited
• Excellent Fire Services
• Genergie Power Control Private Limited
• Jayfil Polymers
• Image India Limited
• International Clearing & Shipping Agency
• Ke Material Handling Private Limited
• Kesarimal Pramod Kumar
• Mi-pak Plastics Private Limited
• Noble Agro Processing & cold Storage
• Paper Plast Industries
• Precision Industries Limited
• Prasad Seeds Private Limited
• Premier Security Services Private Limited
• Rajdeep Plastic Containers
• Robotic Equipments
• Rupal Trading Company
• Secan Packaging
• Salvin Instruments
• Vishwa Steel Products
• VFC Industries Limited

The company’s fixed assets of important value include freehold land, buildings, leasehold improvements, plant & machinery, furniture, fixtures and office equipments and vehicles.

PARENT COMPANY

² Monsanto Company (now known as Pharmacia Corporation), USA

DIVIDEND: 

 The Board of Directors declared an interim Dividend of Rs.120/- which includes a special dividend of Rs.110/- per Equity Share, at the Board meeting held on 14.11.2005. 

 The directors are pleased to now recommend to the shareholders, a final dividend of Rs.10/- per Equity Share. 

OPERATIONS:

 The net sales during the year under consideration was Rs.3320.000 Millions, lower by 12.4% compared to the previous year. During the year, the Company scaled down the distribution activity of the third party products that lowered net sales by compared to the previous year. The Company's Seeds business registered a healthy growth, continuing a trend since 2001. Overall Seed realizations and margins were higher than the previous year primarily on the back of continuing healthy growth in the Corn business. However, Agrichemicals business realizations and margins were significantly lower compared to the previous year owing to intense price and product competition from increasing number of generic players in the industry. This has adversely impacted the Profit Before Tax from operations, which at Rs.757.600 Millions, is lower by 15% year on year basis. 

 The Company fully recognizes the growing importance of the Seeds business portfolio and has been making critical capital investments over the past few years. Continuing the trend, during the year under review, the Company has made a significant investment in a Corn drying facility in Andhra Pradesh in order to meet the growing demand for quality seeds both in the domestic as well as international markets. This project is expected to come on stream during the first quarter of 2007. 

MANAGEMENT DISCUSSION AND ANALYSIS 

 Industry Structure & Development: 

 The issue of agricultural development is globally important and especially crucial for ever-growing population in a developing country like India. Agriculture has been the mainstay of Indian civilisation for over many years. Even today, it is the pivotal of the Indian economy, accounting for about 30 per cent of the GDP and involving about 68 per cent i.e. over 1000 million populations. 

 In India, an increasing population with an improved standard of living and continuously declining arable land continue to increase the pressure on natural resources. 

 There is an need for the agriculture sector to grow at 5 per cent per annum to achieve sustained economic growth of 8-9% in India. In order to increase agricultural productivity, widespread use of high quality hybrids seeds and planting material is essential. Seeds are a major input and the initial lever for bolstering agricultural production. Therefore, the seed industry is perceived as a cost-effective instrument of positive change in Indian agriculture. 

 Seeds form the fundamental and crucial input for sustained growth in farm production, often stimulating the use of new methods, machinery and yield enhancing agro-inputs. The role of the seed sector is not only to ensure adequacy in seed quality but also to ensure varietal diversity. Today, the Indian seed programme boasts one of the biggest seed markets in the world, with annual sales at around Rs.42000.000 Millions. Of this, domestic offtake accounts for Rs.40000.000 Millions and sales in the global market account for the remaining Rs.2000.000 Millions. 

 The accelerated growth of the private sector began only after the introduction of the new seed policy in 1988 which ushered in a liberal business climate. Currently, there are over 200 private seed companies, together with a few multinational companies, and these tend to focus on low volume, high value crops with the principal effort being placed on creating hybrids for oilseeds, maize, cotton and vegetable crops. 

 The private sector accounts for 70% of the market in terms of market turnover whereas the public sector has the greater share in terms of volume sales. 

 While timely and appropriate monsoons continue to be the most critical factor by far in determining the success of an agriculture harvest season, there are other important controllable factors such as pest attacks on crops, timely availability of high quality seeds, fertilisers and pesticides, government policies and environment rules and regulations etc, that contribute in no mean measure to ensuring a successful farming experience for the Indian farmer. Critical inputs like high quality seeds, fertilizers and pesticides play a vital role in sustaining and improving the agriculture production and yield. Thus far, the Seeds and the Indian Crop Protection industry (that comprises of several Multinationals & Indian companies) have, through their continued dedicated research and breeding efforts, been able to provide solutions and products that have benefited the Indian farmer substantially. 

 The Insecticides Act, 1968 and the Seeds Act, 1966 and the rules framed thereunder regulate the production, distribution and sale of crop protection products. Each product undergoes several exhaustive studies and tests before permission is granted for commercialization. The agrochemicals and seeds are marketed through the network of distributors and retailers, which are spread across the length and breadth of the Country. 

Opportunities & Threats: 

 India today has a critical mass and level of growth that it could use not only to cater to the growing domestic requirement but also to make a concerted effort for global trade under provisions of GATT and WTO. Furthermore, India is endowed with second largest area of farmland, and the largest area of irrigated land, in the world and, with its huge germplasm diversity, its seed industry is well placed to serve both domestic and  

Financial Performance: 

 The margins in the herbicides business continued to decline for yet another year, under price pressure from competing generic molecules (specially in the key wheat segment). However, superior product offerings and better mix continued to improve the margins in the seeds business. The Company continues to make appropriate capital investments that support its growing business needs. During the year, an investment of approximately Rs.480.000 Millions was approved by the Board to be made in enhancing its seed drying capacity with improved technology. 

 The Company's operations continued to generate surplus funds to meet all its requirements without having to resort to external borrowings. The Company has also earned tax free income by investing surplus cash in mutual funds. 

Outlook: 

 Through continuous research efforts at providing newer product offerings, aggressive sales and marketing strategies, a strong brand and distribution infrastructure and investment in people development, the Company is hopeful of maintaining its performance going forward. Efforts at offering better technologies (that provide better value to the farmer while mitigating external risks) have been generally well received both by the Government and the farmer. Continued success in these efforts is critical to maintain these growth prospects. 

A commitment to agriculture

Monsanto is an agricultural company. Farmers around the world use their innovative products to address on-farm challenges and reduce agriculture's overall impact on their environment.

When farmers succeed, they succeed. So, they take their cue from their farmer customers. They use the tools of modern biology to support their commitment to agriculture and to support the farmers that feed, clothe and fuel their growing world.

We're constantly looking at ways to maximize the potential of seed for farmers - both its yield potential and the technology used to protect it, so farmers can get more out of each seed. Today, farmers use their innovative seed-based products to help them protect their crops, produce healthier foods and better animal feeds for their world.

Today, they produce leading seed brands in large-acre crops like corn, cotton, and oilseeds (soybeans and canola), as well as small-acre crops like vegetables. They also produce leading in-the-seed trait technologies for farmers that are aimed at protecting their yield, supporting their on-farm efficiency and reducing their on-farm costs.

As a company, they remain committed to broadly licensing their seed and trait technologies to other companies throughout the world. This approach ensures that farmers can access their products in the varieties that mean the most to their farm.

In addition to their seeds and traits business, they also manufacture the world's best-selling herbicide, Roundup, and other herbicides - used by farmers, consumers and lawn-and-garden professionals.

Their business is structured in two segments: Seeds and Genomics, and Agricultural Productivity.

Seeds and Genomics

The seed and Genomics segment consists of the company's global seeds and traits business, and genetic technology platforms - including biotechnology, breeding and genomics.

Agricultural Productivity

The Agricultural Productivity segment consists primarily of crop protection products, residential lawn-and-garden herbicide products, and the company's animal agricultural businesses.

Growth and Leadership Are Top Priorities For The End Of The Decade, Monsanto Executives Tell European Investors

LONDON (10.11.2006) – Monsanto (NYSE: MON) has a unique window of opportunity to build on its industry leading position and capitalize on emerging growth opportunities between now and the end of the decade, company executives told investors today.

The company’s remarks came as part of an investor meeting held in London, which featured presentations by Hugh Grant, chairman, president and chief executive officer; Robb Fraley, executive vice president and chief technology officer; and Terry Crews, executive vice president and chief financial officer.

At the event, Monsanto’s management team outlined key factors expected to drive the company’s growth through 2010 and confirmed its earnings per share (EPS) and free cash flow guidance for fiscal-year 2007.

“The leadership they enjoy today is not accidental,” said Grant.  “It represents their strategic decision to orient their business around their seeds and traits platform, and then passionately execute against that strategy literally farm-by-farm and field-by-field.

“While their early investment gave us a head start, it is their performance – backed by the industry’s leading R&D pipeline, and coupled with their principles of relentless innovation, commercial execution and delivery against their commitments – that will help us build on their leadership in the years ahead,” said Grant.

Growth Contributors Expected To Expand Window of Leadership, Deliver Greater Profitability

Monsanto’s management team has identified six elements which will contribute to the growth of the company’s seeds and traits business between now and 2010. These include: its U.S. and ex-U.S. corn seeds and traits business; its international traits business; its cotton business; its Seminis fruit and vegetable seed business; and its R&D pipeline.

By executing its strategy against these six contributors, Monsanto will not only be able to deliver value to its farmer customers, but expects to grow the profitability of the business, increasing gross profit as a percent of sales from 48 percent today, to a target of 51 to 53 percent by the end of the decade, Grant said.

In outlining the six factors that would drive the company’s gross-profit growth through the end of the decade, Monsanto’s management team highlighted a number of opportunities and new developments, including:

Company Reiterates Guidance for Fiscal Year 2007

In the final presentation of the day, Crews reviewed the company’s key financial projections. He underscored the opportunity created by a company uniquely positioned for leadership in the seeds-and-traits segment of the agricultural industry.

Crews noted that the company continues to expect that its full-year 2007 EPS guidance, both on a reported and ongoing basis, is expected to be in the range of $1.50 to $1.57. (For a reconciliation of ongoing EPS, see note 1.)

“At Monsanto, guidance is a commitment, not an aspiration,” said Crews.  “Their projected 15 to 20 percent growth rate for ongoing EPS in 2007 reflects their confidence in the substantial organic growth potential of their seeds and traits, even in a dynamic agricultural market.

“If they accomplish their objectives over the mid-term, they have a unique window of opportunity to extend their leadership and reward their shareowners for their investment in their company.”

Crews also underscored that the company still expects guidance for free cash flow for fiscal year 2007 will be in the range of $875 million to $950 million. The company expects net cash provided by operating activities to be in the range of $1.3 billion to $1.4 billion, and net cash required by investing activities to be approximately $500 million for fiscal year 2007. (For a reconciliation of free cash flow, see note 1.)

2006 European Investor Meeting Background

A live webcast of Monsanto’s European investor briefing will be available through Monsanto’s web site beginning at 3 a.m. Central Standard Time this morning, Friday, 10.11.2006. This webcast is available at:

http://www.monsanto.com/monsanto/layout/investor/financial/presentations.asp. Following the live broadcast, a replay of the webcast will be available on the Monsanto web site for two weeks.

Materials related to this investor briefing, including: the presentation agenda, briefing slides, transcripts, and speaker bios will also be available through Monsanto’s web site at: http://www.monsanto.com/monsanto/layout/featured/europe_conference/default.asp.

To access presentation slides and the simultaneous audio webcast of the presentation, visitors may need to download Windows Media Player™ prior to listening to the webcast.

Monsanto Company a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality. 

Cautionary Statements Regarding Forward-Looking Information:

Certain statements contained in this release are "forward-looking statements," such as
statements concerning the company's anticipated financial results, current and future product performance, regulatory approvals, business and financial plans and other non-historical facts. These statements are based on current expectations and currently available information. However, since these statements are based on factors that involve risks and uncertainties, the company's actual performance and results may differ materially from those described or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, among others: continued competition in seeds, traits and agricultural chemicals; the company's exposure to various contingencies, including those related to intellectual property protection, regulatory compliance and the speed with which approvals are received, and public acceptance of biotechnology products; the success of the company's research and development activities; the outcomes of major lawsuits, including proceedings related to Solutia Inc.; developments related to foreign currencies and economies; successful completion and operation of recent and proposed acquisitions, including Delta and Pine Land Company; fluctuations in commodity prices; compliance with regulations affecting their manufacturing; the accuracy of the company's estimates related to distribution inventory levels; the company's ability to fund its short-term financing needs and to obtain payment for the products that it sells; the effect of weather conditions, natural disasters and accidents on the agriculture business or the company's facilities; and other risks and factors detailed in the company's filings with the SEC.

Undue reliance should not be placed on these forward-looking statements, which are current only as of the date of this release. The company disclaims any current intention or obligation to update any forward-looking statements or any of the factors that may affect actual results.

Notes to editors: DEKALB, Asgrow and Roundup RReady2Yield are trademarks of Monsanto Company and its wholly owned subsidiaries.

Monsanto Company

Selected Financial Information

(Dollars in millions)

Unaudited

Ongoing EPS and Free Cash Flow:  The presentations of ongoing EPS and free cash flow are not intended to replace net income (loss), cash flows, financial position or comprehensive income (loss), and they are not measures of financial performance as determined in accordance with generally accepted accounting principles (GAAP) in the United States. The following tables reconcile EBIT, ongoing EPS and free cash flow to the respective most directly comparable financial measure calculated in accordance with GAAP.

Reconciliation of EPS to Ongoing EPS:  Ongoing EPS is calculated excluding certain after-tax items which Monsanto does not consider part of ongoing operations.

	Fiscal Year 2007 Target	Fiscal Year 2006	Fiscal Year 2005
Diluted Earnings per Share	$1.50 - $1.57	$1.25	$0.47
Tax Charge on Repatriated Earnings	--	0.04	--
Loss (Income) on Discontinued Operations	--	0.01	(0.02)
Cumulative Effect of Change in Accounting		0.01
Solutia-Related Charge	--	--	0.32
Tax Benefit on Loss from European Wheat	--	--	(0.19)
Restructuring Charges – Net	--	--	0.01
Seminis & Stoneville In-Process R&D	--	--	0.45
Diluted Earnings per Share from Ongoing	$1.50 - $1.57	$1.31	$1.04

Reconciliation of Free Cash Flow: Free cash flow represents the total of cash flows from operating activities and investing activities, as reflected in the Statements of Consolidated Cash Flows. With respect to the fiscal year 2007 free cash flow target, Monsanto does not include any estimates or projections of Net Cash Provided (Required) by Financing Activities because in order to prepare any such estimate or projection, Monsanto would need to rely on market factors and conditions that are outside of its control.

	Fiscal Year 2007 Target	12 Months Ended Aug. 31,
Net Cash Provided by Operating	$1,375 - $1,450	$1,674
Activities
Net Cash Required by Investing Activities	(500)	(625)
Free Cash Flow	$875 -  $950	$1,049
Net Cash Required by Financing Activities	NA	(117)
Cash and Cash              Equivalents	NA	3
Net Increase (Decrease) in Cash and Cash         Equivalents	NA	$   935
Cash and Cash Equivalents at Beginning of Period	NA	$   525
Cash and Cash Equivalents at End of Period	NA	$1,460

CMT REPORT [Corruption, Money laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 45.01
UK Pound	1	Rs. 84.91
Euro	1	Rs. 57.48

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions