MIRA INFORM REPORT

Report Date :

15.07.2011

IDENTIFICATION DETAILS

Name :	MAHYCO MONSANTO BIOTECH (INDIA) LIMITED
Registered Office :	5^th Floor, Ahura Centre, 96 Mahakali Caves Road, Andheri (East), Mumbai – 400 059, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	23.10.1997
Com. Reg. No.:	11-111505
Capital Investment/ Paid-up Capital:	Rs. 240.000 Millions
CIN No.: [Company Identification No.]	U73100MH1997PLC111505
TAN No.: [Tax Deduction & Collection Account No.]	MUMM12056C
Legal Form :	A Closely held public limited liability company
Line of Business :	Promoting, Marketing and Sublicensing Bollgard cotton trait technology, and supporting the sub-licensees through market research and advertising
No. of Employees:	Not Divulged by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 2500000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INFORMATION DECLINED BY

Name :	Mr. Vikas Garg
Designation :	Finance Department
Date :	14.07.2011

LOCATIONS

Registered Office :	5^th Floor, Ahura Centre, 96 Mahakali Caves Road, Andheri (East), Mumbai – 400 059, Maharashtra, India
Tel. No.:	91-22-28246450 / 67029851
Fax No.:	91-22-28244707 / 67023361
E-Mail :	mahendra.sharma@mahyco.com

DIRECTORS

(As on 30.07.2010)

Name :	Mr. Badrinarayan Ramulal Barwale
Designation :	Director
Address :	72-B, Urvashi, Petit Hall, Nepean Sea Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	13.08.1931
Date of Appointment :	23.10.1997
DIN No.:	00001479
Name :	Mr. Rajendra Badrinarayan Barwale
Designation :	Director
Address :	72-B, Urvashi, Petit Hall, Nepean Sea Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	12.12.1955
Date of Appointment :	23.10.1997
DIN No.:	00001678
Name :	Mr. Sekhar Natarajan
Designation :	Director
Address :	No. 17, Gauri Giridhar, Road No. 2, Pestom Sagar, Chembur, Mumbai – 400 089, Mahaarsahtra, Idnia
Date of Birth/Age :	14.12.1953
Date of Appointment :	16.01.2007
DIN No.:	01031445
Name :	Mr. Shyam Sunder Gopilal Agrawal
Designation :	Director
Address :	62, Jolly Maker Apartment No. II, Opp. World Trade Centre, Cuffe Parade, Mumbai – 400 005, Maharashtra, India
Date of Birth/Age :	02.12.1947
Date of Appointment :	23.10.1997
DIN No.:	00001949
Name :	Mr. Mahendra Shridhar Sharma
Designation :	Managing Director
Address :	503-B, Maheshwari Nagar, MIDC, Andheri (East), Mumbai – 400 093, Maharashtra, India
Date of Birth/Age :	02.05.1942
Date of Appointment :	10.12.1997
DIN No.:	00006026
Name :	Mr. Jagresh Kumar Kanwal Singh Rana
Designation :	Additional Director
Address :	C/o Master Khazan Singh Rana, Bijwasan, New Delhi – 110 061, India
Date of Birth/Age :	05.05.1970
Date of Appointment :	28.01.2009
DIN No.:	02516698
Name :	Mr. Richard Gerald Gaudet
Designation :	Director appointed in Casual Vacancy
Address :	2202, Stoneridge Terrace, Chesterfield,
Date of Birth/Age :	28.05.1955
Date of Appointment :	25.01.2010
DIN No.:	02953178
Name :	Mr. Gyanendra Basant Shukla
Designation :	Alternate Director
Address :	13306, 33^rd Floor Oberoi Woods, CIBA Road, Goregaon East, Mumbai-400063, Maharashtra, India
Date of Birth/Age :	15.08.1966
Date of Appointment :	25.01.2010
DIN No.:	02922133
Name :	Mr. Anupam Amalkumar Bhattacharya
Designation :	Alternate Director
Address :	17, Devdoot Tower 43, Southern Avenue, Kolkata – 700 029, West Bengal, India
Date of Birth/Age :	20.02.1964
Date of Appointment :	18.11.2008
Date of Ceasing:	30.07.2010
DIN No.:	02401979
Name :	Mr. Randy W Deaton
Designation :	Director
Address :	2259 Twin Estates Circle, Chesterfield, Missouri – 63017, USA
Date of Birth/Age :	28.09.1955
Date of Appointment :	03.11.999
Date of Ceasing:	31.10.2008
Name :	Mr. Rajendra Dinkar Ketkar
Designation :	Director
Address :	Solitaire, 3^rd Floor, Pali Hill Road, Bandra (West), Mumbai – 400 050, Maharashtra, India
Date of Birth/Age :	27.04.1954
Date of Appointment :	12.04.2007
Date of Ceasing:	28.01.2009
Name :	Mr. S Rajagopalan
Designation :	Alternate Director to Mr. Mark Deadwyler
Address :	601 A/B. Eternia CHS, Hiranandani, Lake Gardens, Powai, Mumbai – 400 070, Maharashtra, India
Date of Birth/Age :	25.04.1965
Date of Appointment :	27.09.2007
Date of Ceasing:	21.10.2008
Name :	Mr. Mark Deadwyler
Designation :	Director
Address :	BLK 15, Ardmore Park, # 06.01, Singapore 259959
Date of Birth/Age :	08.05.1968
Date of Appointment :	16.01.2007
Date of Ceasing:	25.01.2010
DIN No.:	00978804
Name :	Mr. Jerry Lee Flint
Designation :	Director
Address :	151 Lorong Chuan, # 06-08 New Tech Park, Singapore – 556741
Date of Birth/Age :	20.09.1961
Date of Appointment :	17.05.2005
Date of Ceasing:	25.01.2010
DIN No.:	00556459

KEY EXECUTIVES

Name :	Mr. Vikas Garg
Designation :	Finance Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 30.07.2010)

Names of Equity Shareholders	No. of Equity Shares
Maharashtra Hybrid Seeds Company Limited, Maharashtra, India	11999952
Monsanto Holdings Private Limited, Maharashtra, India	11999952
Barwale Ramulal Badrinaryan	16
Barwal Badrinaryana Rajendra	16
Shyamsunder Gopilal Agarwal	16
Atul Sharma	32
Anupam Bhattacharya	16
Total	24000000

Names of Preference Shareholders	No. of Preference Shares
Monsanto Holdings Private Limited, Maharashtra, India	1
Total	1

Equity share breakup (percentage of total equity)

(As on 30.09.2010)

Category	Percentage
Bodies corporate	99.99
Directors or relatives of directors	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Promoting, Marketing and Sublicensing Bollgard cotton trait technology, and supporting the sub-licensees through market research and advertising

GENERAL INFORMATION

No. of Employees :	Not Divulged by the management.
Bankers :	ICICI Bank Limited, Landmark, Race Course Circle, Vadodara – 390 007, Gujarat, India HDFC Bank Limited

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountant
Address :	12, Dr. Annie Besant Road, Opp. Shiv Sagar Estate, Worli, Mumbai – 400 018, Maharashtra, India
Tel. No.:	91-22-66679000
Fax No.:	91-22-66679025

CAPITAL STRUCTURE

(As on 31.03.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
24000000	Equity Shares	Rs.10/- each	Rs.240.000 millions
10	10% Non-voting redeemable non-cumulative Preference Shares	Rs.100/- each	Rs.0.001 million
	Total		Rs. 240.001 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
24000000	Equity Shares	Rs.10/- each	Rs. 240.000 Millions
1	10% Non-voting redeemable non-cumulative Preference Shares (Of the above 22500000 Equity Shares of Rs. 10/- each are allotted as fully paid-up by way of bonus shares by capitalization of General Reserve and Capital Redemption Reserve)	Rs.100/- each	Rs.0.000 Million
	Total		Rs. 240.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		240.000	240.000	20.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		396.261	532.679	346.353
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		636.261	772.679	366.353
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		636.261	772.679	366.353
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.281	0.918	0.929
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		659.578	704.944	939.723
DEFERREX TAX ASSETS		1.294	16.271	41.228
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	175.729	497.880	49.184
	Cash & Bank Balances	200.193	49.472	30.100
	Other Current Assets	7.231	17.807	1.942
	Loans & Advances	69.512	8.443	23.796
Total Current Assets		452.665	573.602	105.022
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	216.823	328.254	108.564
	Other Current Liabilities	35.752	76.189	226.322
	Provisions	224.982	118.613	385.663
Total Current Liabilities		477.557	523.056	720.549
Net Current Assets		[24.892]	50.546	(615.527)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		636.261	772.679	366.353

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income (Technology and Sub-license Fees)	4537.587	3138.721	2244.983
		Other Income	214.845	184.248	46.321
		TOTAL	4752.432	3322.969	2291.304
Less	EXPENSES
		Operation and other Expenses	1548.882	1159.737	885.535
		TOTAL	1548.882	1159.737	885.535
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		3203.550	2163.232	1425.769
Less/ Add	DEPRECIATION/ AMORTISATION		0.111	0.136	0.132
	PROFIT BEFORE TAX		3203.439	2163.096	1425.637
Less	TAX		1079.977	728.944	467.883
	PROFIT AFTER TAX		2123.462	1434.152	957.754
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		366.679	0.353	171.665
Less	APPROPRIATIONS
		Interim Dividend Paid	1812.000	724.500	670.000
		Tax on Interim Dividend	0.000	0.000	0.000
		Proposed Equity Dividend	0.000	60.000	213.000
		Tax on Dividend	327.880	133.326	150.066
		Transfer to Capital Redemption Reserve	0.000	5.000	0.000
		Transfer to General Reserve	213.000	145.000	96.000
		Proposed Interim Dividend	120.000	0.000
	BALANCE CARRIED TO THE B/S		17.261	366.679	0.353
	TOTAL IMPORTS
	Earnings Per Share (Rs.)		88.48	59.58	39.09

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	44.68	43.16	41.80
Net Profit Margin (PBT/Sales)	(%)	70.60	68.92	63.50
Return on Total Assets (PBT/Total Assets}	(%)	707.25	376.50	1345.56
Return on Investment (ROI) (PBT/Networth)		5.03	2.80	3.89
Debt Equity Ratio (Total Liability/Networth)		0.75	0.68	1.97
Current Ratio (Current Asset/Current Liability)		0.95	1.10	0.15

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. In Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors (Other than outstanding dues to micro and small enterprises)	216.823	328.254	108.564

OPERATIONS:

During the year, the company earned Rs. 4537.587 Millions as Technology and sub-license fee from its sub-licensees (Rs. 3138.721 Millions in the previous year). The Company continues concentrating on promoting, marketing and sublicensing Bollgard ansd Bollagard II cotton trait technology, and supporting the sub-licensees through market research and advertising.

The Directors have noted adoption of Bollgard II technology by large number of cotton farmers in year 2009-10. This rapid adoption of Bollgard II technology by cotton farmers clearly demonstrate the significant incremental benefits realized by farmers. In 2009-10 cotton farmers has a choice of over 300 cotton hybrids containing bollgard and bollgard II technology, thus offering farmers to plant hybrid of his choice in either Bollgard or Bollgard II technology. Various research papers published in the year again proved significant socio-economic benefits of Bollgard and Bollgard II technology to farmers, farm labours. Andhra Pradesh, Maharashtra and Gujarat Continues the cotton seed price control and this is a significant concern for the industry impacting development of new hybrids and technologies for the benefit of farmers.

Bankers Charges Report as per Registry

Name of the company	MAHYCO MONSANTO BIOTECH (INDIA) LIMITED
Presented By	Dr. M K Sharma, Managing Director of Mahyco Monsanto Biotech (India) Limited
1) Date and description of instrument creating the change	Deed of Hypothecation dated the 4^th day of September 2003 executed by Mahyco Monsanto Biotech (India) Limited (therein and hereinafter referred to as “the Company”) in favour of ICICI bank Limited (therein and hereinafter referred to as “ICICI Bank”)
2) Amount secured by the charge/amount owing on the securities of charge	Cash Credit Limit of Rs.50.000 millions and Short term line of credit of Rs.50.000 millions being sublimit of Cash Credit limit with full interchangeability aggregating to Rs.50.000 millions (hereinafter referred to as “the Facility”).
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	The whole of the borrower’s entire stocks of raw materials, semi-finished and finished goods, consumable stores and such other moveables, both present and future, belonging to or in the possession or under the control of the borrower whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of these presents be brought into or upon or be stored or be in about all the borrower’s factories, premises and godown or wherever else the same may be or be held by any party to the order or disposition of the borrower or in the course of transit or on high seas or on order or delivery and also book-debts, outstanding monies, and receivables (hereinafter collectively referred to as the “said Goods”) are hereby hypothecated as and by way of exclusive first charge to the bank.
4) Gist of the terms and conditions and extent and operation of the charge.	In consideration of ICICI bank having agreed to lend and advance to the company the Facility, agreement and declaration by the company, inter alia, as follows 1. Covenant by the Company to repay the facility and pay interest and all other monies in the manner set out in the facility agreement dated the 4^th day of September 2003 (hereinafter referred to as “the said Facility Agreement”) between the Company and ICICI Bank and to comply with the terms and conditions of the said Facility Agreement. 2. The said Goods were there by hypothecated to ICICI Bank, as and by way of first and exclusive charge as security for and be charged with the repayment of the Facility with all interest, liquidated damages, commitment charge, premia on prepayment or on redemption, costs, charges and expenses and all other monies payable by the Company to ICICI Bank in respect thereof. 3. In Favour of ICICI bank on its stocks of raw materials, semi-finished and finished goods, consumable stores and book debts and such other moveables as may be agreed to by ICICI Bank for securing the borrowings for working capital requirements in the ordinary course of business; 4. The Company to keep the said Goods in marketable and good conditions and also insured as provided therein. 5. Power of entry, power to take charge and / or possession of, seize, recover, receive, appoint receivers of and remove and / or sale by public auction or private contract, dispatch for realization or otherwise dispose off or deal with all or any part of the said Goods, etc. as provided therein.
5) Name and Address and description of the person entitled to the charge.	ICICI Bank Limited Landmark, Race Course Circle, Vadodara – 390 007, Gujarat, India
6) Date and brief description of instrument modifying the charge	Nil
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Nil

Fixed Assets

· Machinery and Equipments

· Computers

· Vehicles

· Office Equipments

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.44.53
UK Pound	1	Rs.71.80
Euro	1	Rs.63.15

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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	Capability to overcome financial difficulties seems comparatively below average.	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.