MIRA INFORM REPORT

Report Date :

02.02.2012

IDENTIFICATION DETAILS

Name :	BAYER CROPSCIENCE LIMITED
Formerly Known As :	BAYER (INDIA) LIMITED
Registered Office :	Bayer House, Central Avenue, Hiranandani Gardens, Powai, Mumbai – 400 076, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	09.09.1958
Com. Reg. No.:	11-11173
Capital Investment / Paid-up Capital :	Rs.394.987 Millions
CIN No.: [Company Identification No.]	L24210MH1958PLC011173
TAN No.: [Tax Deduction & Collection Account No.]	MUMB00146G
PAN No.: [Permanent Account No.]	AAACB9651K
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacture and sale of Agro Chemicals products like Methyl Parathion, Oxydemetonmethyl, Fenthion etc.
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Aa (75)

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 26918960
Status :	Very Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well-established and a reputed company having fine track. Financial position of the company appears to be sound. Fundamentals are strong and healthy. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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 PARTED BY

Name :	Mr. Umesh
Designation :	Finance Department
Contact No.:	91-22-25700300
Date :	01.02.2012

LOCATIONS

Registered Office :	Bayer House, Central Avenue, Hiranandani Gardens, Powai, Mumbai – 400 076, Maharashtra, India
Tel. No.:	91-22-25711234 / 25711391/ 25711388/ 25711395
Fax No.:	91-22-25700147
E-Mail :	info@bayerindia.com shirin.balsara@bayercropscience.com
Website :	www.bayergroupindia.com www.bayerindia.com www.bayer.co.in www.bayercropscience.com
Unit Office:	228, GIDC Estate, Panoli, Ankleshwar – 394116, Gujarat, India
Factory 1 :	Kolshet Road, Thane-400 607, Maharashtra, India
Tel. No.:	91-22-2531 1234
Fax No.:	91-22-2575 5083
Factory 2 :	Plot Nos. 6008 - 10 and 6301 - 10A, GIDC Industrial Estate, Ankleshwar – 393002, Gujarat, India
Factory 3 :	Plot Nos. 66/1 to 75/2, GIDC, Estate, Himatnagar – 383001, Gujarat, India
Branches :	Hoechst House, 193, Backbay Reclamation, Nariman Point, Mumbai – 400021, Maharashtra, India

DIRECTORS

As on 31.03.2010

Name :	Dr. Vijay Mallya
Designation :	Chairman and Independent Director
Name :	Mr. Stephan Gerlich
Designation :	Vice Chairman and Managing Director Promoter Director Member - Shareholders' Grievance Committee
Name :	Mr. Sharad M Kulkarni
Designation :	Independent Director Chairman - Audit Committee Chairman - Shareholders' Grievance Committee
Name :	Mr. A K Ravi Nedungadi
Designation :	Independent Director Member - Audit Committee
Name :	Mr. Johannes M Dietsch
Designation :	Non-Executive Promoter Director
Name :	Mr. Bernd Naaf
Designation :	Director
Name :	Mr. Vimal Bhandari
Designation :	Director
Name :	Mr. Kaikobad Mistry
Designation :	Whole Time Director

KEY EXECUTIVES

Name :	Shirin V. Balsara
Designation :	Vice President – Legal and Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2011

Names of Shareholders	Total No. of Shares	Total Shareholding as a % of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	654850	1.66
(2) Foreign
Bodies Corporate	27431812	69.45
Total shareholding of Promoter and Promoter Group (A)
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2311259	5.85
Financial Institutions / Banks	24114	0.06
Insurance Companies	2488921	6.30
Foreign Institutional Investors	1340031	3.39
(2) Non-Institutions
Bodies Corporate	1519632	3.85
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	3278573	8.30
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	444437	1.13
Any Others (Specify)
Directors & their Relatives & Friends	53	--
Trusts	5063	0.01
Total	39498747	100.00

BUSINESS DETAILS

Line of Business :

Manufacture and sale of Agro Chemicals products like Methyl Parathion, Oxydemetonmethyl, Fenthion etc.

Products :

Item Code No. (ITC Code)	Product Description
380810.11	Imidacloprid
380810.99	Triazophos
380850.00	Fipronil

Exports :

Products :

Agro Chemicals

Countries :

Germany

Terms :

Selling :

L/C, Cash, Credit

Purchasing :

L/C, Cash, Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Active Ingredient Production	Tons	5783	2192
Formulations
Powders	Tons	12610	5209
Liquids	KL	3600	2321
Wetable dispersable granules	Tons	720	13370
Tablets	Million Nos	--	--

GENERAL INFORMATION

Customers :

· Wholesalers

· Retailers

· Indosil

Suppliers :

Saraswati Agro

No. of Employees :

200 (Approximately)

Bankers :

Ø Bank of America

Ø BNP Paribas

Ø Central Bank of India

Ø Citibank N.A.

Ø Deutsche Bank

Ø HDFC Bank Limited

Ø State Bank of India

Ø Union Bank of India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Loan from Banks (Secured by Pari Passu charge by hypothecation of Stocks and Book Debts) [Due within a year Rs.14.906 Millions and Previous year Rs.23.064 millions]	0.000	14.906
Total	0.000	14.906
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Short Term Loan from Banks [Due within a year Rs.349.843 millions and Previous year Rs.403.882 millions]	0.000	349.843
Inter corporate loans [Due within a year Rs.555.000 and Previous year Rs. nil]	1085.000	775.000
Total	1085.000	1124.843

Banking Relations :	--
Auditors :
Name :	Price Waterhouse Chartered Accountants
Solicitors:	Crawford Bayley and Company
Ultimate Holding Company:	Bayer AG, Germany
Parties under common control :	Bayer (China) Limited, China Bayer (Malaysia) Sdn. Bhd., Malaysia Bayer Animal Health GmbH, Germany Bayer Australia Limited , Australia Bayer BioScience Private Limited, India Bayer Business Services GmbH, Germany Bayer Corporate and Business Services GmbH, Germany Bayer CropScience (China) Company Limited , China Bayer CropScience (Pvt.) Limited , Pakistan Bayer CropScience AG, Germany Bayer CropScience K.K., Japan Bayer CropScience Limited, Bangladesh Bayer CropScience LP, U.S.A. Bayer CropScience Limited , Korea Bayer CropScience OHQ (Malaysia) Sdn Bdh, Malaysia Bayer CropScience Pty Limited, Australia Bayer CropScience S.A., France (upto December 31, 2009) Bayer CropScience Inc., U.S.A. Bayer Direct Services GmbH, Germany Bayer S.A.S., France (from January 1, 2010) Bayer HealthCare AG, Germany Bayer HealthCare Aktiengesellschaft, Germany Bayer HealthCare Berkeley, U.S.A. Bayer HealthCare, NJ U.S.A. Bayer Industry Services GmbH, Germany Bayer Korea Limited, Korea Bayer MaterialScience AG, Germany Bayer MaterialScience Limited, Hongkong Bayer MaterialScience Private Limited, India Bayer Middle East FZE, U.A.E. Bayer New Zealand Limited , New Zealand Bayer Parsian AG, Iran Bayer Pharmaceuticals Private Limited, India Bayer Polychem (India) Limited, India (upto March 31, 2009) Bayer Public Limited Company, United Kingdom Bayer S.A., Brazil Bayer S.A., Colombia Bayer South East Asia Pte Limited, Singapore Bayer Taiwan Company Limited , Taiwan Bayer Technology and Engineering (Shanghai) Company Limited, China Bayer Technology Services, Germany Bayer Thai Company Limited, Thailand Bayer Türk Kimya Sanayi Limited Sti., Turkey Bayer Vietnam Limited, Vietnam Bayer Yakuhin Limited , Japan Bilag Industries Private Limited, India Euro Services Bayer GmbH, Germany Nunhems Seeds Private Limited, India PT Bayer Indonesia, Indonesia

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
46300000	Equity Shares	Rs.10/- each	Rs.463.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
39498747	Equity Shares	Rs.10/- each	Rs.394.987 millions

Note:

(a) Of the above, 12,632,500 (Previous Year 12,632,500) Equity Shares of Rs. 10 each are allotted as fully paid-up Bonus Shares by way of capitalisation of Capital Reserve, Premium received on Shares and General Reserve.

(b) Pursuant to the Scheme of Amalgamation of erstwhile Bayer Cropscience India Limited with the Company, 23,278,747 Equity Shares of Rs.10 each have been issued and allotted as fully paid-up to the Shareholders of erstwhile Bayer Cropscience India Limited without payment being received in cash.

(c) 28,086,662 (Previous Year 28,086,662) Equity Shares of Rs. 10 each are held by Bayer AG, Germany, the Ultimate Holding Company and its subsidiaries.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		394.987	394.987	394.987
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		6334.753	5202.938	4114.639
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		6729.740	5597.925	4509.626
LOAN FUNDS
1] Secured Loans		0.000	14.906	23.064
2] Unsecured Loans		1085.000	1124.843	403.882
TOTAL BORROWING		1085.000	1139.749	426.946
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		7814.740	6737.674	4936.572
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3509.264	2921.096	2594.966
Capital work-in-progress		85.273	287.359	105.832
INVESTMENT		867.899	628.175	102.163
DEFERREX TAX ASSETS		59.900	66.118	144.062
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4374.001	3479.998	3236.805
	Sundry Debtors	2823.392	1976.014	1995.768
	Cash & Bank Balances	2763.974	153.514	183.373
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1116.918	1182.851	1009.355
Total Current Assets		11078.285	6792.377	6425.301
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3979.315	2640.453	3359.149
	Other Current Liabilities	3350.430	882.400	712.708
	Provisions	456.136	434.598	370.535
Total Current Liabilities		7785.881	3957.451	4435.752
Net Current Assets		3292.404	2834.926	1989.549
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		7814.740	6737.674	4936.572

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2011	31.03.2010	31.03.2009
	SALES
			Income	20386.841	16247.619	13940.049
			Other Operating Income	1005.871	993.444	885.863
			Other Income	184.963	252.525	215.632
			TOTAL (A)	21577.675	17493.588	15041.544
Less	EXPENSES
			Material consumed	4071.868	3855.839	3894.287
			Cost of traded goods sold	9555.660	6627.115	5475.083
			Employees cost	1597.763	1411.231	1343.374
			Other expense	3796.218	3033.201	2845.133
			Profit before exceptional items and taxation	37.785	86.785	60.325
			Increase/ decrease in stock	113.955	122.235	(451.102)
			TOTAL (B)	19173.249	15136.406	13167.100
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			2404.426	2357.182	1874.444
Less	FINANCIAL EXPENSES (D)			87.875	128.316	126.256
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			2316.551	2228.866	1748.188
Less/ Add	DEPRECIATION/ AMORTISATION (F)			326.892	264.419	239.921
	PROFIT BEFORE TAX (E-F) (G)			1989.659	1964.447	1508.267
Less	TAX (H)			674.218	691.912	563.672
	PROFIT AFTER TAX (G-H) (I)			1315.441	1272.535	944.595
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			4032.034	3070.989	2350.246
Less	APPROPRIATIONS
		Proposed Dividend		157.995	157.995	110.596
		Provision for tax on proposed dividend		25.631	26.241	18.796
		Transfer to general reserve		131.544	127.254	94.460
	BALANCE CARRIED TO THE B/S			5032.305	4343.524	3294.841
	EARNINGS IN FOREIGN CURRENCY
			Recoveries from Group Companies	606.520	629.455	490.385
	TOTAL EARNINGS			606.520	629.455	490.385
	IMPORTS
			Raw and Packing Material	157.995	3483.283	3005.805
			Traded Goods	25.631	15.480	9.027
			Stores, Spares and Components	131.544	1.442	2.935
			Capital Goods	5032.034	91.646	60.846
	TOTAL IMPORTS			5347.204	3591.851	3078.613
	Earnings Per Share (Rs.)			33.30	32.22	23.91

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011
Type	1^st Quarter	2^nd Quarter
Net Sales	7909.400	7303.800
Total Expenditure	7087.200	6035.300
PBIDT (Excl OI)	822.200	1268.500
Other Income	102.400	108.900
Operating Profit	924.600	1377.400
Interest	6.400	2.100
Exceptional Items	(97.900)	(52.000)
PBDT	820.300	1323.300
Depreciation	80.200	82.400
Profit Before Tax	740.100	1240.900
Tax	241.300	400.400
Profit After Tax	498.800	840.500
Net Profit	498.800	840.500

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.09	7.27	6.28
Net Profit Margin (PBT/Sales)	(%)	9.76	11.39	10.17
Return on Total Assets (PBT/Total Assets}	(%)	13.63	20.22	16.72
Return on Investment (ROI) (PBT/Networth)		0.29	0.35	0.33
Debt Equity Ratio (Total Liability/Networth)		1.32	0.91	1.08
Current Ratio (Current Asset/Current Liability)		1.42	0.17	1.45

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
Sundry Creditors
Due to Micro and Small Enterprises	13.350	12.210	15.056
Due to Creditors other than Micro and Small Enterprises	3965.965	2628.243	3344.093

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

OVERVIEW OF AGRICULTURAL SECTOR

Indian economic growth story remains dynamic. Despite a global recession, the country has reinforced consumption, incomes, jobs, currency and investment. According to the Central Statistical Organisation (CSO), the GDP growth rate for the Indian economy stood at 7.4% in 2010. Farm output showed excellent signs of recovery. The advance estimates of CSO indicate that agriculture and allied sectors are expected to grow at 5.4% in 2010-11 compared to 0.4% in the previous fiscal Despite moderation in industrial growth the economic expansion has also been pegged at 8.5% in 2010-11.

According to the latest announcement made by the Planning Commission, the anticipated growth in the farm sector will make up for the shortfall in the industrial output and there is also the likelihood of agriculture growth being higher than the earlier forecast of 5.4%. Experts indicate that this will be the third consecutive year of positive growth for the agriculture sector and the same is also likely to remain buoyant in the forthcoming year.

The third advance estimates released by the Ministry of Agriculture showed an all-time record production of 235.88 million tones of food grains. Wheat stood at 84.27 million tonnes, while pulses stood at 17.29 million tonnes. Rice production has been revised upward to 94.11 million tonnes in 2010-11, from the earlier estimates, which is much higher than last year’s output of 89.09 million tonnes. Coarse cereal production has been revised to 40.21 million tonnes in 2010-11, from the earlier estimates. Owing to a good monsoon, the food grain production this year is nearly 18 million tonnes higher than last year. The Economic Survey presented by the Ministry of Finance points out that the increased Minimum Support Price along with various other steps taken by the Government of India have resulted in higher levels of food grain production. Economists indicate that the higher food grain production. Economists indicate that the higher food gain production will facilate further easing of food inflation.

According to a report published by the US Department of Agriculture, cotton production of India, the world’s second biggest cotton producer, stood at 32 million bales in 2010-11 season (August-July). Cotton output is likely to achieve a record high in 2011-12 season at 35 million bales as farmers are expected to put more area under this crop. The report further stated that the area under cotton cultivation may rise by 12% this year at 12.5 million hectares, due to record cotton prices. But cotton area is expected to reach 90% of the total area this year.

In order to give a further impetus to the agricultural sector, the Government of India is to focus on removal of supply bottlenecks in the food sector in 2011-12. A multi-pronged strategy covering agricultural production, reduction in wastage of produce, credit support to farmers and momentum to the food processing sector is also envisaged. In order to reduce the country’s dependence on import of pulses and edible oil, the Government of India, has also announced various schemes for promoting production of vegetables, pulses, oilseeds, fodder and nutrition rich crops like millets and maize.

The above initiatives coupled with private sector participation, which according to industry estimates has shown a noticeable improvement over the past few years, are expected to boost the growth of Indian agricultural sector going forward in 2011.

INDUSTRY STRUCTURE AND DEVELOPMENT

In India, the agrochemicals industry has aligned itself with the long term agricultural trends. For the past 3 years, Indian crop protection market has been growing by double-digits. In the year 2010, the market registered a growth rate close to 15%. Some important reasons that contributed to this growth are good commodity prices, increasing demand for quality fruits and vegetables and new cropping practices that encouraged the farmers to opt for crop protection products.

Indian farmers further enthused with the support from private industry, academia and the Government are looking to adopt more sophisticated agronomic practices. Combined with land reform and better educated farmers, more diverse crops are expected to usher in a period of rapid expansion for agriculture and crop protection.

There is also a great acceptance of new products. Farmers are now well aware about the demand for quality of produce in the fruits and vegetables divisions and are increasingly opting for fungicides, which has spurred the growth of products relating to this business remarkably.

Labour shortage factors, such as rising incomes contributed by more employment opportunities in the manufacturing and service sectors across the country and NREGS (National Rural Employment Guarantee Scheme) have led to increased demand for herbicides.

Substantial decline in the prices of many generic molecules coupled with manufacturing capacity expansion, by many companies, contributed to the erosion of the market value for generic products.

According to industry analysts, however, there is a growing realisation among farmers that in order to ensure higher productivity and quality crop, new, more effective and environmentally safe chemistry are the need of the hour. This trend is contributing to the growth of innovation-driven companies and also underscores the importance of research, innovation and new product development for sustainable growth in the agri inputs market.

Under Environmental Science business operation, Public Health business in India grew during the year 2010-11 because of higher incidences of vector borne diseases like malaria and dengue. While DDT, malathion and synthetic pyrethroids continue to find use as indoor residual spray products in the malaria control programme, the consumption of space spray chemicals increased due to rapid urbanisation and threats of epidemics. Insecticide treated Bednets / Long Lasting Insecticide Nets emerged as an upcoming area in Public Health and will continue to grow in the years to come as the Government would like to cover maximum population living in disease prone states.

Growing awareness about health and hygiene and rising income levels in metros and mini-metros is boosting the growth in the Professional Pest Control (PPC) business, both in commercial and residential areas. Growing awareness about safe chemicals is a good sign for their business. Synthetic pyrethroids are still being used for various active treatments of pests. A latent demand for ‘natural/alternative products’ is met by unbranded products in the unorganised sector. Termite control products keep growing with increase in the construction activity. Bedbugs are posing a major threat to hospitality industry and is emerging as a key division apart from roaches and rodents.

REVIEW OF FINANCIAL AND OPERATIONAL PERFORMANCE

The net sales and other operating income for the year ended 31st March, 2011 amounted to ` 21,392.71 million as compared to Rs.17241.060 Millions for the last financial year and profit after tax for the year increased to Rs.1315.440 Millions as against Rs.1272.540 Millions for the last financial year.

Bayer CropScience intends to maintain its growth strategy with innovative crop protection products. To this end, The Company plans to further strengthen its portfolio in conventional crop protection and increase the proportion of new, high-margin products.

For Bayer CropScience in India, with a high innovation rate, more than one third of its total business, a market share close to 15% and regular launches of modern products in the market, the claim to a sustained leadership is not far from reality. In 2010, The Company had launched effective and environmentally safer products such as Nativo ® a fungicide and Adora ® a herbicide, which have been well accepted by the farmers. TheCompany’s blockbuster product Fame ® has also performed very well in 2010. New crops and areas have opened up for this products, that have contributed significantly to this year’s domestic business.

The Company plans to launch 3 new innovative products Glamore ® - an insecticide, Ricestar™ and Accord™ - herbicides in 2011. These products are expected to grow rapidly across various geographic regions during 2011 and create value not only for farmers, but also for the shareholders.

The Company has established itself in the market as comprehensive ‘Seed to Harvest’ solutions provider. This has helped Company to reach out to many hitherto unexplored regions of the country, created opportunities to discover potential of new crops and meet the requirements of farmers through a common distribution channel.

A number of distinctive product packages are being offered to farmers that include seeds and crop protection products. The integrated model has also provided a wider distribution channel to the seed portfolio resulting in significant volume growth.

During the year the Company has launched a distinctive internal campaign called ‘Innovate for More’ in order to further stimulate innovative spirit among employees across all functions. This has resulted in the conception of many local best practices, stimulating campaigns that have resulted in capturing the attention of customers more effectively thus outperforming the competition. Constant motivation through internal bulletins, spot recognition schemes and best practice sharing has successfully driven across the Company the key message of innovation through ‘Innovate for More’.

The Food Chain Partnership is an innovative business model, wherein the Company facilitates a win-win situation for all key stakeholders of the food value chain. The Company is working closely with the farming community, teaching them about sustainable agricultural practices, the proper use of crop protection products and pest monitoring. The Company wants to ensure that farmers are getting the maximum yield of healthy vegetables out of their acres, simultaneously, the Company is in close contact with some of the major retail companies in India, with the objective of adding value along the entire food chain, from the farm gate to the retail shop. So far, a Memorandum of Understanding has been signed with a couple of important retailers.

In 2010, Food Chain Partnership projects in India have been rolled out with 25 leading players of Food Chain. The project has benefited more than 45,000 farmers in the year. The company has imbued the spirit of innovation, which is reflected in its business strategy. The Company has been a pioneer in many respects in the industry, by continuously demonstrating its ability to implement newer business approaches that add value to its customers and stakeholders.

The Company is also implementing many unique business excellence initiatives that are driving business generation activities and are further adding to its competitive edge.

The Environmental Science business maintains its position as the market leader in the areas of public health and PPC. The Company continues to sponsor major symposia and seminars to promote general awareness, product knowledge and international trends in vector borne disease management. Several techno commercial training programmes on safe use and handling of products were conducted during the year. The new product for control of mosquito larvae, ‘Bilarv’, is slowly gaining momentum in municipal councils and corporations and has the potential to be a major intervention in mosquito vectored diseases.

In the PPC business, the company has focused on building sales possesses, closer engagement with large players in the category and also on increasing its reach to regional, medium sized players in all cities. For achieving the same, the Company has started ‘Bayer Network’, a new program for engaging medium sized ‘Pest Control Operators’ (PCOs). The engagement and certification of PCO’s happens on passing elaborate criteria. Post, certification, the PCOs are entitled to use Byer Network logo in prescribed manner and have obligation of following Bayer Standard Operating Procedure dealing with ‘Application’, ‘Audit’ and ‘Behavioural Skills’. This pilot activity is expected to not only increase business with the partner PCOs but also create demand for Bayer products from the end users, in the long run.

OPPORTUNITIES AND OUTLOOK

The outlook for crop protection companies focused on innovation continues to be positive and experts indicate that the overall value of the market is expected to rise. Industry enabling factors facilitated by the Government of India such as strengthening IPR regulations will create a more favourable environment for further growth. Increasing farm incomes spurred by good commodity prices are expected to further encourage farmers to invest in innovative and good quality crop protection products.

According to industry estimates, in the long-term, the market will continue to grow at a vigorous rate. The consumption of crop protection products will increase with higher usage in the low input regions and introduction of better quality molecules will drive the value growth. Prospects for fungicides and herbicides continue to be favourable and noteworthy market growth is expected in these areas.

An increased impetus by means of non-agricultural employment opportunities in rural areas due to the progressive governmental policies and actions, along with high economics growth are expected to influence labour availability for agricultural business. Consequently usage of selective and non-selective herbicides will get a major impetus.

Rising quality consciousness in consumers will greatly impact the market. This will propel the fungicides business and create opportunities for the crop protection products in the fruits and vegetables cultivation.

The Company is strongly positioned as an innovation leader in the industry. By implementing a comprehensive strategy, the company has a good position in the entire market. The company’s focus on innovation will ensure that it benefits from the existing growth trends. A strong product pipeline has been developed to further align with the demand in the market.

In the PPC business, growth and opportunities are seen in sub-divisions of termiticides and general pest control. The demand for eco-friendly and safer formulations in this business is continuing which is seen as an opportunity for the Company. The partnership with leading pest control operators is ongoing. The Company will be launching many new products targeting growing businesses of ‘Bedbugs’ and ‘Fly Control’ in the near future to provide an effective solution to the customers.

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter's background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	No
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	--
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

FIXED ASSETS:

Ø Freehold Land

Ø Leasehold Land

Ø Buildings

Ø Plant and Machinery

Ø Office Equipment

Ø Computers

Ø Furniture and Fixtures

Ø Vehicles

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.49.53
UK Pound	1	Rs.77.94
Euro	1	Rs.64.65

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	8
--RESERVES	1~10	9
--CREDIT LINES	1~10	8
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		75

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.