MIRA INFORM REPORT

Report Date :

14.04.2007

Tel. No. :	91-22-832246460
Fax No. :	91-22-8322284151

IDENTIFICATION DETAILS

Name :	SYNGENTA INDIA LIMITED
Registered Office :	Royal Insurance Building, 14, J. Tata Road, Churchgate, Mumbai – 400 020, Maharashtra
Country :	India
Financials (as on) :	31.12.2006
Date of Incorporation :	23.03.2000
Com. Reg. No.:	11-125206
CIN No.: [Company Identification No.]	U24210MH2000PTC125206
TAN No.: (Tax Deduction & Collection Account No.)	MUMS27059E
Legal Form :	Subject is a public limited liability company. The shares of the company are listed on the Stock Exchanges.
Line of Business :	Manufacturer of Agrochemicals.

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 15000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a part of Syngenta Group, a multi-national group having fine track. Available information indicates high financial responsibility of the company. Financial position is good. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Royal Insurance Building, 14, J. Tata Road, Churchgate, Mumbai – 400 020, Maharashtra, India
Tel. No.:	91-22-22043720
Fax No.:	91-22-22029170
E-Mail :	dharmesh.desai@syngenta.co.in
Website :	http://www.syngenta.com
Factory :	Santa Monica Works, Corlim, Ilhas, Goa – 403 110, India

DIRECTORS

Name	Mr. S. D. Kulkarni
Designation	Chairman
Age	70 years
Qualification	Chartered Accountant
Experience	27 years
Date of Joining	10^th November, 2000
Previous Employment	Larson & Toubro Limited
Name	Mr. D. R. Taylor
Designation	Vice Chairman
Age	58 years
Qualification	Graduate
Date of Joining	10^th November, 2000
Previous Employment	Ciba Geigy Limited
Name	Mr. P. K. Apte
Designation	President & Managing Director
Age	50 years
Qualification	B.E. (Mechanical Engineering) Post Graduate Diploma (Management)
Experience	22 years
Date of Joining	10^th November, 2000
Previous Employment	Hindustan Ciba Geigy Limited
Name	Mr. M. R. Lal
Designation	Director
Age	71 years
Qualification	LLB
Date of Joining	10^th November, 2000
Previous Employment	CIBATUL Limited
Name	Mr. Devor Pisk
Designation	Vice Chairman
Name	Mr. Max Riggenbach
Designation	Director
Name	Mr. D. S. Gokhale
Designation	Director

KEY EXECUTIVES

Name :	Mr. D. S. Desai
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
Promoters Foreign	26768662	84.02
Financial Institutions, Banks	1363966	04.28
Mutual Funds, UTI	174371	00.55
Foreign Institutional Investors	122269	00.38
NRIs/OCBs	75613	00.23
Others	172014	00.54
General Public	3184769	10.00
Total	31861664	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Agrochemicals.

Products :

Item Code No. (ITC Code)	380830.00
Product Description	Clodinafop Herbicide
Item Code No. (ITC Code)	380810.99
Product Description	Thiamethoxam Insecticide
Item Code No. (ITC Code)	380810.32
Product Description	Quinolphos Insecticide

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Formulation	MT	1200	874
	K.Ltrs.	14985	2527
Technical Material	MT	4850	2920

GENERAL INFORMATION

No. of Employees :	About 600
Bankers :	Ø BNP Paribas Ø Citi Bank Ø Deutsche Bank Ø Union Bank of India
Facilities :	Cash Credit from Scheduled Bank Rs. 18.358 millions (Secured by hypothecation of Stock in Trade and Book Debts)

Banking Relations :	Good
Auditors :	Ø A. F. Ferguson and Company Chartered Accountants Ø S R. Batliboi and Company Chartered Accountants Ø N I Mehta and Company Chartered Accountants
Subsidiaries :	Ø Novartis (Pakistan) Crop Protection Limited Ø Syngenta Crop Protection, Bangladesh Ø Saurefabrik, Switzerland Ø Syngenta Biosciences Private Limited Ø Syngenta Crop Protection AG. Ø Syngenta Crop Protection Private Limited Ø Syngenta Grimsby Limited Ø Syngenta Seeds AG, Switzerland Ø Syngenta Seeds Bv, Holland Ø Syngenta Seeds Inc., USA Ø Syngenta Seeds Korea Company Limited Ø Syngenta Seeds Limited, Taiwan Ø Syngenta Seeds Limited, Thailand Ø Syngenta Seeds Pty. Limited, Australia Ø Syngenta Seeds, Beijing China Ø Syngenta Singapore Pte. Limited Ø Syngenta Agroservices Asia Limited, Malaysia Ø Syngenta Supply AG Ø Syngenta Seeds India Private Limited Ø Syngenta Japan KK Ø Syngenta Asia Pacific Limited Ø Syngenta (Vietnam) Limited Ø Syngenta Seeds South Africa Ø Syngenta Crop Protection Limited, Thailand Ø Syngenta Bio-technology Inc, USA

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
3,20,00,000	Equity Shares	Rs. 5/-	Rs. 160.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3,18,61,664	Equity Shares	Rs. 5/-	Rs. 159.308 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2006	31.12.2005	31.12.2004
SHAREHOLDERS FUNDS
1] Share Capital	159.300	159.300	159.3000
2] Reserves & Surplus	4166.900	3807.700	3461.200
NETWORTH	4326.200	3967.000	3620.500
LOAN FUNDS
1] Finance lease obligations	0.000	0.000	0.000
2) Secured Loans	0.000	0.000	14.500
3] Unsecured Loans	29.200	185.900	0.000
TOTAL BORROWING	29.200	185.900	14.500
DEFERRED TAX LIABILITIES	0.000	0.000	0.000
TOTAL	4355.400	4152.900	3635.000
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]	1425.700	1120.500	671.500
Capital work-in-progress	75.900	393.200	332.700
INVESTMENTS	0.000	0.000	0.000
DEFERREX TAX ASSETS	0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
Inventories	1761.300	2122.600	1857.200
Sundry Debtors	2731.500	2675.000	942.000
Cash & Bank Balances	632.500	150.000	1886.400
Loans & Advances	501.000	498.100	408.200
Total Current Assets	5626.300	5445.700	5093.800
Less: CURRENT LIABILITIES & PROVISIONS
Current Liabilities	2204.600	2068.900	2121.800
Provisions	567.900	737.600	341.200
Total Current Liabilities	2772.500	2806.500	2463.000
Net Current Assets	2853.800	2639.200	2630.800
TOTAL	4355.400	4152.900	3635.000

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		8870.300	8164.000	6156.000
Other Income		(47.900)	549.000	535.500
Total Income		8822.400	8713.000	6691.500
Profit/(Loss) Before Tax		948.200	1156.900	1022.100
Provision for Taxation		316.500	354.700	299.400
Profit/(Loss) After Tax		631.700	802.200	722.700
Total Earnings		NA	NA	1458.436
Total Imports		NA	NA	2845.648
Expenditures :
	Manufacturing Expenses	570.200	504.400	372.500
	Administrative Expenses	776.400	777.600	646.800
	Raw Material Consumed	4864.000	4860.400	3344.100
	Miscellaneous Expenses	246.500	216.600	182.500
	Salaries, Wages, Bonus, etc.	425.400	396.700	379.300
	Interest	45.900	39.000	30.400
	Power & Fuel	260.200	198.300	140.300
	Other Expenditure	485.400	593.600	465.900
Total Expenditure		7674.000	7586.600	5561.800

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt-Equity Ratio	0.03	0.03	0.00
Long Term Debt-Equity Ratio	0.02	0.01	0.00
Current Ratio	1.96	1.96	2.10
TURNOVER RATIOS
Fixed Assets	4.67	5.63	5.66
Inventory	4.57	4.10	4.37
Debtors	3.27	4.49	6.72
Interest Cover Ratio	21.66	30.66	34.62
Operating Profit Margin(%)	13.46	14.27	18.85
Profit Before Interest And Tax Margin(%)	11.21	14.65	17.10
Cash Profit Margin(%)	9.38	9.45	13.49
Adjusted Net Profit Margin(%)	7.12	9.83	11.74
Return On Capital Employed(%)	23.37	30.71	31.27
Return On Net Worth(%)	15.23	21.15	21.58

STOCK PRICES

Face Value	Rs.5/-
High	Rs.531.00
Low	Rs.515.70

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Subject was incorporated on 23^rd March 2000 at Mumbai in Maharashtra having company registration number 125206.

The company was originally incorporated as Novartis Agribusiness India Private Limited. Name has been subsequently changed due do the Scheme of Arrangement under which the Agribusiness Undertakings of Novartis India Limited was transferred to the subject company with effect from 1^st April 2000.

The company came into existence due to demerger of agribusiness (comprising the crop protection and seeds business) of the company with effect from April, 2000. As per the scheme of arrangement, for every one equity share of Rs. 10/- each held in Novartis India, one equity share of Rs. 5/- each (fully paid up) of the company was issued.

The company is a 51% subsidiary of Syngenta AG. The latter was formed by the global merger of the crop protection and seeds business of Novartis AG with the agrochemical business of Astra Zeneca. The parent company is listed on the London, New York, Stockholm and Swiss Stock Exchanges.

The Syngenta group has three entities in India. They are Syngenta India, Zeneca Agrochemicals and Zeneca Biosciences. The parent company has 51% shareholding in the company and 100% in Zeneca Agrochemicals and Zeneca Biosciences.

The Syngenta group is leader in the world's agribusiness and ranks first in crop protection and third in the high-value commercial seeds market. The group sales for last year amounted to about US $ 7 billions. The group is spread over 50 countries and employs more than 20000 people.

The company's product line comprises crop protection products and seeds. Crop protection includes herbicides, fungicides and insecticides like Topik, Refit and Nuvacron.

The company is also involved in the introduction of new products and research activities for introduction of high breed seeds in the country, especially for rice, wheat, maize, fruits and vegetables.

The company is planning to co-ordinate operations of the group companies in India to increase efficiency and customer satisfaction. This includes reviewing the benefits of operating a combined sales and marketing team, thus presenting a common face to the customer. The company is planning to re-launch all the companies brands under the Syngenta banner.

Subject is planning to phase put Monocroptophos (Nuvacron) from the product portfolio. Score and Pegasus was launched and there has been an encouraging response. The company started its manufacturing facility a 100% Export Oriented Unit to manufacture Thiamethoxam (TMX) for an investment of Rs. 400 million through internal accruals.

Nesting on 200 acres of land, beautifully bordered by thousands of creepers of flowering bougainvillaea and dotted within with hundreds of Ashoka trees, mango and coconut groves, cashew plantations and rose bushes, Santa Monica Works is a living testimony to nature and chemistry thriving in harmony. And that is how it was conceptualised way back in 1962 when company bought over what seemed an endless terrain, spersed with forests, from the nunnery of Santa Monica, in whose honour the Works is named.

A twelve acre man made lake in its works is home to over 30 mugger crocodiles who find its sweet water marshes a snoozy spot to snuggle in. Wrote Romulus Whitaker, the world-renowned herpetologist with an abiding passion for nature conservation, during his visit to its Santa Monica works:

“ The creation of this lake and protection of the approximately 40-acre adjacent marsh land has not only benefited crocodiles, fish, turtles and aquatic vegetation, but it has also encouraged many species of birds, including migratory water birds, to use the area as a feeding and resting ground. In addition, there are a number of other mammals, reptiles and amphibians who depend on the ecological integrity of the Syngenta Complex.

The importance of such protected “islands,” surrounded by rapid development for Goa’s wild life becomes more and more important. The protected wild portion of the Santa Monica Plant is unique, since there is no grazing or other trespass, affording excellent cover and habitat for a surprisingly high diversity of plants, animals and birds…”

Living in harmony and not at odds with nature has been at the core of its operational philosophy.

Financial assistance was given to two Research Projects, for in-depth ornithological studies at the campus of its Santa Monica Works. One was with the World Wide Fund for nature- India on bird watching and the other was a project with Goa University on Ecology of wetland birds as well as flora and fauna in its lake. This has contributed significantly to validate its image as a company who cares for the environment.

The wetland surroundings of Santa Monica, which is playing host to a herons has been put on the heronry map of India, by researchers from Goa University.

Besides visits from educational institutions, interested bird watchers and ornithologists from India and abroad visit the campus regularly.

A committed, well-trained, qualified workforce who take pride in their work, form the company human resource asset. Engineers, Chemists, Environmental specialists, backed by production personnel and administrative staff work as a cohesive team to offer some of the best products in the business sectors in which it operate. More than 90% of the Santa Monicaites are from Goa itself and a majority of them have been with it since the inception of the works over three decades ago.

In 1972, Santa Monica Works began in a small way manufacturing active ingredients for their quality plant protection agents. Today, it has evolved into a major chemical production base for the company.

The company's Crop Protection Plant manufactures important intermediates and active ingredients that go into the making of its high quality, safe and dependable plant protection agents.

The Project team’s work has already made a qualitative difference to the lives of many patients as they are well placed on the road to recovery.

From 1972 to date, Santa Monica Works has indeed come a long way. While major expansion projects have resulted in elevating Santa Monica to one of the most sophisticated production units, comparable to production plants in the Syngenta group worldwide, the company progress has been in harmony with nature. Lush greenery, swaying Ashoka trees, coconut and cashew groves, coupled with the constant chirping of birds, continue to add Nature’s serene touch to Santa Monica.

Its product range includes :-

Insecticides

Ø Vertimec1.9C

Ø Curacron 50EC

Ø Polytrin C44

Ø Ekalux35EC/AF

Ø Nuvan

Ø Nuvacron36SL

Ø Karate

Ø Kungfu

Ø Acrara

Fungicides

Ø Tilt 25EC

Ø Ridomil MZ 72 WP

Ø Topaz 10 EC

Ø Blue Copper 50 WP

Ø Kavach 75 WP

Ø Cuman L 27SC

Ø Thiovit 80 WP

Ø Score

Herbicides

Ø Topic 15 WP

Ø Rifit 50 EC

Ø Dual 50 EC

Ø Gramoxone

Ø Apron WS 35

Ø Cruiser

Subject, came into existence due to demerger of agri business (comprising the crop protection and seeds businesses) of Novartis India with effect from April 2000. As per the scheme of arrangement, for every one equity share of Rs 10 each held in Novartis India, one equity share of Rs 5 each (fully paid-up) of Subject was issued. 

Subject is a 51% subsidiary of Syngenta AG. The latter was formed by the global merger of the crop protection and seeds businesses of Novartis AG with the agrochemicals business of AstraZeneca. The parent company is listed on the London, New York, Stockholm and Swiss stock exchanges.  

The Syngenta group has three entities in India. They are Syngenta India, Zeneca Agrochemicals and Zeneca Biosciences. The parent company has 51% shareholding in Subject and 100% in Zeneca Agrochemicals and Zeneca Biosciences. The Syngenta group is a leader in the world's agribusiness and ranks first in crop protection and third in the high-value commercial seeds market. The group is spread over 50 countries and employs more than 20,000 people.

Subject's product line comprises crop protection products and seeds. Crop protection includes herbicides, fungicides and insecticides like Topik, Refit and Nuvacron. Subjectis also involved in the introduction of new products and research activities for introduction of high breed seeds in the country, especially for rice, wheat, maize, fruits and vegetables.  

Subject is planning to co-ordinate operations of the group companies in India to increase efficiency and customer satisfaction. This includes reviewing the benefits of operating a combined sales and marketing team, thus presenting a common face to the customer. Plans are to re-launch all the companies' brands under the Syngenta banner. During 2004 the company has launched a new product Proclaim in Crop Protection Division and the export growth was led by Thiamethoxam and Pretilachlor. 

In the Seed Division, the company's sunflower brand Sunbred 275 has estabilished itself as the market leader and the growth was led by Sunflower and Corn. During 2004 the company has introduced cotton varieties Teja and Anand. 

 The company started its manufacturing facility a 100% Export Oriented Unit to manufacture Thiamethoxam (TMX) for an investment of Rs.400 million through internal accurals. During 2004 the 1st phase of the project was commissioned successfully and also commenced its commercial production. Further this project has undergone considerable changes on account of new requirements. Consequent to this changes, the investment is now expected to be Rs.950 Million and this also covers the cost of upgrading the effluent treatment infrastructure including installation of a new state-of-the-art Thermal Oxidiser to incinerate liquid wastes. The 2nd and 3rd phase of the project was completed during the year 2005. 

In 2005, the company has increased its installed capacity of Agrochemicals Formulations and Agrochemicals Technical Material by 50 MT each. With this expansion the total installed capacity of Agrochemicals Formulations and Agrochemicals Technical Material has increased to 1250 MT and 4900 MT respectively. 

Business Operations: 

The Company's performance for the year 2006 shows good growth in sales, but profits were impacted by increased generic competition, significant price erosion and rising cost pressures in the Crop Protection business. The Sales for the year ended 31st December 2006 were Rs. 8314 mio as against Rs.7671 mio for the previous year recording a growth of about 8.4%. During the year, the cotton seed business was globally divested by Subjectand the profits of Rs.42 millions from such divestment are included under exceptional items. 

Crop Protection Division: 

The total sales of Crop Protection (CP) products for the year 2006 were at Rs.6776 millions as against Rs.6567 millions in 2005, reflecting an increase of about 3.2%. The domestic sales of CP products during the year was Rs.4261 millions as against Rs.3407 millions in the previous year, registering an increase of about 25%. The Company added a few products to its range to provide wider choice to the growers and these have been well received. This growth in the domestic market compares favorably when viewed in the perspective of only modest growth expected in the overall CP market. The total exports at Rs.2515 millions reflect a decline of 20% over the exports of Rs.3160 millions recorded last year, impacted by lower demand for certain products in the importing countries. 

Seeds - Division: 

The performance of Seeds Division improved significantly with sales growing by 39% to Rs.1538 millions against Rs.1105 millions in the previous year. The growth was once again led by Sunflower, Vegetables and Corn. The rice hybrid variety also registered an impressive growth. 

Projects: 

The project for installation of state-of-the-art Thermal Oxidizer at Goa was completed and commissioned during the year at a cost of Rs.272 millions

Prospects & Profitability: 

The Company with its large product portfolio and introduction of new researched molecules in the local market is able to offer crop solutions and therefore well positioned to grow in the domestic CP market. Generic competition is also increasing for many new products with the resultant impact on prices and profitability. There are good growth prospects for the Company's Seeds business, especially in hybrid seeds of field crops, corn and vegetables. However their business prospects are highly dependent on the weather and rains. 

The Company's exports are dependent on export orders from Syngenta Group to meet some of its global requirements, which in turn depend on market conditions in the importing countries. 

Future plan of action: 

R&D in the relevant areas of business operations will continue. Emphasis will be on adapting products and processes to improve performance, ease of use, and be more environment-friendly with a view to meeting customer needs. 

Management Discussion & Analysis Report: 

Industry Structure & Developments: 

India's economy is on a roll with GDP growth of over 8% annually mainly because of buoyancy in manufacturing and services. India has become the international hub, next only to China, for business set-ups, joint ventures, capital investments, outsourcing, and back office functions. 

However, double digit growth in manufacturing and service sectors offers little consolation to agrarian India since the farm sector has recorded a growth of barely 2%. At the centre of the agrarian crisis is deceleration of investments, inflationary pressure taking away purchasing power, vagaries of monsoon and outdated agrarian practices. As the Prime Minister has so aptly stated, the technologies and strategies unleashed by the first green revolution have run their course and new technologies and strategies need to be applied if the country has to usher in a second green revolution. Only then will 60% of the population dependent on agriculture also benefit from India's economic growth. 

This stymied agricultural growth directly impacts the CP business. With a shrinking market as a result of spread of Bt cotton and possible growth of GMO's in vegetables and food crops, and with many players, competition is intense and margins are under pressure. The leadership in the market can be retained by continuous R & D to develop newer crop solutions and by renewed focus on cost management. 

The Indian seeds industry is more happily placed. Farmers are seeing the benefit of hybrid seeds to improve their crop yields and with the growth in GDP and improved standards of living, demand for seeds of vegetables and fruits continues to grow. 

With an IPR regime in place, companies with strong R & D and biotech establishments have good growth prospects in the coming years. The expansion of the retail segment will also throw up opportunities for improved technology and productivity in the agriculture sector. 

Opportunities and Threats: 

The small and fragmented land holdings deter the farmers from using premium products thus affecting CP business. Even otherwise, consumption of CP products in India has been lower (specially in fungicides and herbicides) than that of the developed countries. However, Chairman of the National Committee on Farmers has made sweeping recommendations to the Government of India for reviving agriculture. Further, the second green revolution which seems to be on its way is likely to boost rural economy and this, in turn, will augur well for the Agribusiness. In such a scenario innovative companies will lead the way. 

The generic players offering similar CP products pose a serious challenge which is being countered by research and development of new and efficacious products on a continuous basis. The CP industry continues to be impacted by increasing incidents of counterfeit/spurious products. 

The Government is promoting the cultivation of Jatropha as a source of alternative fuel. The growing trend towards finding alternate fuel sources provides an opportunity to further harness the potential from agriculture. 

With increasing manufacturing activity in India, export opportunities for CP products are expected to grow. Further, the increasing trend of contract farming will encourage farmers toward the use of quality seeds, inputs and more efficient agronomic practices, thus providing an added impetus to Companies in agribusiness. 

Segment wise Performance: 

Competition in the domestic CP industry has intensified and expansion of Bt cotton has impacted insecticides' consumption. However, acceptance by farmers of new products has helped the company grow volumes, across all major products. 

The Seeds Division registered an impressive growth of 39% driven mainly by higher sales in fruits & vegetables segment, improved market share in sunflower and sweet corn. 

Financial Performance v/s. Operational Performance: 

Price decline of more than 10% has been witnessed for key products and hence CP margins have been severely impacted. In addition there have been cost pressures fuelled by petroleum prices. Export profits are lower due to decline in sales and lower capacity utilization. Cost control measures have been implemented by the Company. Seeds business margins were maintained. 

Working capital was impacted by increase in debtors resulting from competitive pressures. 

Outlook: 

Besides the vagaries of the monsoon, they envisage tougher competitive environment in 2007. However, the Company with its broad product portfolio and focused attention to customers and markets is geared for sustained performance. The next phase of agricultural development will hinge on sustainable agriculture as lands would come under pressure due to changed industrial policy. Initiatives like contract farming, improved irrigation, water resources management, knowledge enhancement, newer methods of agriculture to improve yields would provide CP and Seeds products with increased opportunities. 

The fixed assets of important value of the company include Freehold Land, Leasehold Land, Buildings, Plant & Machinery, Furniture, Fixtures & Office Equipment, Vehicles and assets held for sales.

Press Releases

Syngenta to Acquire Fischer, Leading European Flowers Company

Thursday March 29, 1:00 am ET

BASEL, Switzerland, March 29 /PRNewswire-FirstCall/ -- Syngenta announced today the acquisition of the Fischer group for a consideration of approximately $67 million on a cash and debt free basis. Fischer is a privately held vegetative flowers company specializing in the breeding and marketing of flower crops. For the fiscal year 2005/2006, Fischer reported sales of $86 million; the company is headquartered in Germany.

"They are delighted to welcome the Fischer organization to Syngenta with its strong record in marketing and innovation," said Robert Berendes, Head of Business Development at Syngenta. "This will accelerate the implementation of their Flowers strategy and strengthen their global leadership position."

Josef Fischer, CEO of Fischer, commented: "Combining their varieties, cultivation knowledge and supply processes will enhance their service and support to all their customers, with whom they can now access exciting growth potential in flowers."

Fischer is highly complementary to Syngenta Flowers, bringing leadership in three of the ten best-selling flower crops to its existing portfolio. It is the global leader in pelargonium (geranium) and has leading positions in poinsettia and New Guinea impatiens. The company sells flower crops in over 20 countries under well-known brands including Fischer® and pelfi®; these brands will be maintained. Fischer employs around 1,700 people.

The transaction is expected to close in the second quarter of 2007, pending regulatory approvals.

Syngenta's S&G® Flowers is a worldwide leader in the pot and bedding plant industry with a large proprietary portfolio. Operating on a global basis, S&G breeds and markets superior proprietary flowers as seeds, young plants and cuttings for the ornamental industry. In 2006, Syngenta reported flowers sales of $228 million.

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.41.89
UK Pound	1	Rs.84.17
Euro	1	Rs.56.93

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		72

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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