MIRA INFORM REPORT

Report Date :

01.03.2012

IDENTIFICATION DETAILS

Name :	NAGARJUNA AGRICHEM LIMITED
Registered Office :	Plot No. 12-A, C Block, Lakshmi Towers, No. 8-2-248/1/7/78, Nagarjuna Hills, Panjagutta, Hyderabad-500082, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	22.11.1993
Com. Reg. No.:	01-016607
Capital Investment / Paid-up Capital :	Rs.148.982 Millions
CIN No.: [Company Identification No.]	L24219AP1993PLC016607
TAN No.: [Tax Deduction & Collection Account No.]	HYDN00523F
PAN No.: [Permanent Account No.]	AAACN6932H
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Agro Chemicals.
No. of Employees :	1078 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 8100000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. There appears to be some dip in the profitability of the company due to reduction in export orders and severe curtailment in production due to contract labour disputes. However, trade relations are reported as fair. Business is active. Payments are 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.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	Plot No. 12-A, C Block, Lakshmi Towers, No. 8-2-248/1/7/78, Nagarjuna Hills, Panjagutta, Hyderabad-500082, Andhra Pradesh, India
Tel. No.:	91-40-2335 8217 / 23350235/ 23357442
Fax No.:	91-40-2335 0234/ 23358062
E-Mail :	suresh@nagarjunaagrichem.com info@nagarjunaagrichem.com aspardhasaradhi@nagarjunagroup.com jagannadharao@nagarjunaagrichem.com (for overseas requirement) manikkam.natarajan@nagarjunaagrichem.com (for domestic requirement) himadribhadra@nagarjunaagrichem.com bsaha@nagarjunaagrichem.com
Website :	http://www.nagarjunaagrichem.com
Factory 1 :	Plot No. 177, Arinama Akkivalasa, Allinagaram PO, Etcherla Mandal, Srikakulam – 532403 Andhra Pradesh, India
Tel. No.:	91-8942-231172 /7 73 / 74
Fax No.:	91-8942-231171
Factory 2 :	Ravulapalem Mandal, East Godavari , Ethakota – 533238, Andhra Pradesh, India
Tel. No.:	91-8855-255376 / 255876 / 255976
Fax No.:	91-8855-257276
Factory 3 :	Survey No. 1710 and 1711, Anthireddyguda Road, Nandigaon Village, Kothur Mandal, Mahaboobnagar- 509223 Andhra Pradesh, India
Tel. No.:	91-8548-240010 / 240483
Branch Office :	1^st Floor, Auto Plaza Road No. 3, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh, India

DIRECTORS

As on 31.03.2011

Name :	Dr. Nitish K. Sen Gupta
Designation :	Chairman
Address :	135 Pocket, 40 Chitaranjan Park, New Delhi – 110 019, India
Name :	Mr. V. Vijay Shankar
Designation :	Managing Director
Name :	Mr. R S Nanda
Designation :	Director
Name :	Mr. Sukhendu Ray
Designation :	Director
Address :	6B Solanki Apartments, 8/2, Alipore Park Road, Kolkata – 700027, West Bengal, India
Qualification :	Chartered Accountants
Name :	Mr. K. Rahul Raju
Designation :	Director
Address :	Digvijam’ Plot No.933 A, Road No. 47, Jubilee Hills, Hyderabad – 500034, Andhra Pradesh, India
Qualification :	B.Com
Name :	Mr. K. S. Raju
Designation :	Director
Address :	Digvijam’ Plot No.933 A, Road No. 47, Jubilee Hills, Hyderabad – 500034, Andhra Pradesh, India
Qualification :	Mechanical Engineer
Name :	Mr. D. Ranga Raju
Designation :	Director
Address :	A Block, 201 Paradise Apartments, Seethammadhara, Visakhapatnam, Andhra Pradesh, India
Qualification :	B.Com
Name :	Mr. K. Lakshmi Raju
Designation :	Director
Address :	Digvijam’ Plot No.933 A, Road No. 47, Jubilee Hills, Hyderabad – 500034, Andhra Pradesh, India
Qualification :	M.B.A.
Name :	Mr. Prashant Kumar Mallik
Designation :	Director
Address :	6B Solani Apartments, 8/2, Alipore Park Road, Kolkata – 700027, West Bengal, India
Qualification :	Chartered Accountants
Name :	Mr. Sudhakar Kudva
Designation :	Director
Name :	Mr. N. Vijayaraghavan
Designation :	Director
Name :	Mr. K Rghu Raman
Designation :	Director

KEY EXECUTIVES

Name :	Mr. S.V.S. Rama Raju
Designation :	President [Operations]
Name :	Mr. R.K.S. Prasad
Designation :	Chief Finance Officer
Name :	Mr. D. Suresh Babu
Designation :	Vice President [Corporate HPD]
Name :	Mr. Manikkam Natarajan
Designation :	Vice President [Marketing and Sales]
Name :	Mr. Aseem Kumar Srivastava
Designation :	Vice President [Corporate Planning]
Name :	Mr. G. Jagannadha Rao
Designation :	Vice President [Exports]
Name :	Mr. Amit TAparia
Designation :	Senior General Manager [Procurement and SCM]
Name :	Mr. Harish Bijilwan
Designation :	Senior General Manager [Business Tech and Outsourcing]
Name :	Mr. K. Saravanan
Designation :	General Manager [Manufacturing and Corporate SHE and Q]

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2011

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	301,836	2.03
Bodies Corporate	11,362,350	76.27
Sub Total	11,664,186	78.29
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	11,664,186	78.29
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	164,507	1.10
Sub Total	164,507	1.10
(2) Non-Institutions
Bodies Corporate	639,411	4.29
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	1,921,103	12.89
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	415,571	2.79
Any Others (Specify)	93,379	0.63
Non Resident Indians	93,379	0.63
Sub Total	3,069,464	20.60
Total Public shareholding (B)	3,233,971	21.71
Total (A)+(B)	14,898,157	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	14,898,157	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Agro Chemicals.

Products :

Product Description	Item Code No. (ITC Code)
Insecticides	380810-29

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Technical	MT per annum	# 9528	** 4375
Liquids / Wettables / Granules	KL/MT per annum	38520	** 20943
Wind Energy	KVA per annum	13860000	^ 1139501

Note:

1. * As certified by the management and relied upon by the auditors being a technical matters.

2. * The products manufactured by the company are under delicensed category.

3. ** Actual production includes processed for outsiders.

4. # Excludes capacity of intermediates.

5. ^ Generation is net of energy consumed form the grid.

GENERAL INFORMATION

No. of Employees :

1078 (Approximately)

Bankers :

· State Bank of India

· HDFC Bank Limited

· Punjab National Bank

· IDBI Bank Limited

· ICICI Bank Limited

· New India Co-operative Bank Limited

· Indian Overseas Bank

· Bank of Baroda

Facilities :

[Rs. in Millions]

Secured Loan	As on 31.03.2011	As on 31.03.2010
From Bank
Term Loans	979.306	946.065
Vehicle Loan	0.723	0.920
Working Capital Facilities from Banks
Demand Loan / Cash Credit	960.737	843.512
Buyers Credit	52.809	0.000
Total	1993.575	1790.497
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Sale Tax Deferral	56.447	63.286
Total	56.447	63.286

Banking Relations :	--
Auditors :
Name :	M. Bhaskara Rao and Company Chartered Accountants
Address :	5-D, Kautilya, Somajiguda, Hyderabad – 500082, Andhra Pradesh, India
Subsidiaries :	Nagarjuna Agrichem (Australia) Private Limited
Holding Company :	KLR Products Limited (Formerly GSR Products Limited)
Associates:	· Nagarjuna Fertilizers and Chemicals Limited · Ikisan Limited · Nagarjuna Hydro Energy Private Limited · Bhagiratha Chemicals and Industries Limited · Indo International Fertilizers Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14898157	Equity Shares	Rs.10/- each	Rs.148.982 Millions

1. Of the above shares 2103157 shares are allotted as fully paid on preferential basis

2. Of the above shares 11362350 shares are held by KLR Products Limited [Formerly GSR Products Limited], holding company.

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		148.982	148.982	148.981
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1877.547	1872.903	1362.489
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2026.529	2021.885	1511.470
LOAN FUNDS
1] Secured Loans		1993.575	1790.497	724.710
2] Unsecured Loans		56.447	63.286	88.797
TOTAL BORROWING		2050.022	1853.783	813.507
DEFERRED TAX LIABILITIES		247.034	226.374	227.112
TOTAL		4323.585	4102.042	2552.089
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2078.069	1539.944	1577.925
Capital work-in-progress		70.518	300.454	38.425
INVESTMENT		0.505	0.500	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1457.502	1594.452	950.380
	Sundry Debtors	1368.024	1630.516	851.260
	Cash & Bank Balances	234.594	224.947	185.781
	Other Current Assets	1.699	1.320	0.829
	Loans & Advances	305.581	257.066	262.175
Total Current Assets		3367.400	3708.301	2250.425
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	947.777	1169.111	789.843
	Other Current Liabilities	234.537	203.812	243.124
	Provisions	10.593	74.234	281.719
Total Current Liabilities		1192.907	1447.157	1314.686
Net Current Assets		2174.493	2261.144	935.739
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		4323.585	4102.042	2552.089

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	5700.840	6528.663	6053.578
		Other Income	52.696	86.657	16.607
		TOTAL (A)	5753.536	6615.320	6070.185
Less	EXPENSES
		Manufacturing Expenses	4372.416	4546.894	4191.068
		Administrative and Selling Expenses	841.271	724.471	701.458
		Duties and Taxes	(9.740)	54.805	0.232
		TOTAL (B)	5203.947	5326.170	4892.758
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		549.589	1289.150	1177.427
Less	FINANCIAL EXPENSES (D)		254.560	171.490	191.083
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		295.029	1117.660	986.344
Less/ Add	DEPRECIATION/ AMORTISATION (F)		230.526	204.984	182.339
	PROFIT BEFORE TAX (E-F) (G)		64.503	912.676	804.005
Less	TAX (H)		33.714	315.111	311.359
	PROFIT AFTER TAX (G-H) (I)		30.789	597.565	492.646
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1436.025	985.610	630.114
Less	APPROPRIATIONS
		Transfer to General Reserve	3.500	50.000	50.000
		Interim Dividend	22.347	29.796	29.796
		Final Dividend	0.000	44.694	44.694
		Corporate Dividend Tax on Interim Dividend	3.798	5.064	5.064
		Corporate Dividend Tax on Final Dividend	0.000	7.596	7.596
	BALANCE CARRIED TO THE B/S		1437.169	1436.025	985.610
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1535.106	2247.923	2682.304
	TOTAL EARNINGS		1535.106	2247.923	2682.304
	IMPORTS
		Raw Materials	1198.195	1744.838	1950.304
		Capital Goods	2.058	11.924	11.385
	TOTAL IMPORTS		1200.253	1756.762	1961.689
	Earnings Per Share (Rs.)		2.07	40.11	33.07

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2011 1^st Quarter	30.09.2011 2^nd Quarter	31.12.2011 3^rdQuarter
Net Sales	1465.200	2193.300	1478.000
Total Expenditure	1359.200	1927.700	1328.300
PBIDT (Excl OI)	106.000	265.600	149.700
Other Income	12.900	4.300	5.900
Operating Profit	118.900	269.900	155.600
Interest	73.700	72.300	69.600
PBDT	45.200	197.600	86.000
Depreciation	66.700	67.400	68.100
Profit Before Tax	(21.500)	130.200	17.900
Tax	(7.000)	56.500	11.200
Profit After Tax	(14.500)	73.700	6.700
Net Profit	(14.500)	73.700	6.700

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.54	9.03	8.12
Net Profit Margin (PBT/Sales)	(%)	1.13	13.98	13.28
Return on Total Assets (PBT/Total Assets}	(%)	1.18	17.39	21.00
Return on Investment (ROI) (PBT/Networth)		0.03	0.45	0.53
Debt Equity Ratio (Total Liability/Networth)		1.60	1.63	1.41
Current Ratio (Current Asset/Current Liability)		2.82	2.56	1.71

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE:

During the year, Sales were Rs.5700.800 Millions as compared to Rs.6528.700 Millions during the previous year. The Profit after Tax for the year was 30.800 Millions as compared to Rs.597.600 Millions during the previous year. The cash profits for the year were Rs.282.000 Millions as compared to Rs.801.800 Millions during the previous year. The main reason for the reduced profits is the reduction in export orders coupled with severe curtailment in production at Srikakulam due to contract labour disputes. Interest cost has been higher due to capex in Srikakulam and Working Capital. Certain onetime write off have also been made in the current year.

DOMESTIC AND EXPORT MARKETS

Agriculture in India witnessed buoyancy in acreage of cotton and soya at the expense of some cereals and a static level of activity in paddy and wheat. Climatically, while inadequacy of water delayed crops in some states in the North during Kharif, the coastal areas of the southern India were affected by unseasonal rains in Rabi. In terms of product categories herbicides continued to grow due to depressed manpower availability, fungicides too registered a growth and usage of insecticides showed a nominal increase.

The growth of domestic sales by the company was in line with the overall increase in the Indian market for crop protection chemicals during the year at around 10%. Continued high inventory levels of company's key product across the major export markets, coupled with depressed demand due to lower fungal attacks in major user countries during most of the calendar year of 2010, resulted in a steep fall in export volumes. The last quarter of the year saw the market off-takes return to the original levels and consequently the export business witnessed a strong upswing. However, the conversion of these orders to business was not complete in the last quarter due to the constraints posed by the labour situation in the plant manufacturing technicals.

The company has commenced firming up enhanced export volumes for a few key molecules with its customers and also has initiated necessary steps to broaden its portfolio to protect it from the effects of seasonal vagaries in the world markets. Addition of a few pesticides and fine chemicals to the product range for the next year is in process. The outlook for the company in the export segment looks optimistic during 2011.

PLANT OPERATIONS

The company received certifications ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 in the areas of Quality, Environment and Safety and Occupational Health Management Systems respectively.

A comprehensive evaluation of debottlenecking areas in all the plants was carried out during the year. Implementation of the recommendations in 2011 is expected to result in enhanced productivity in operations and place the company in a stronger position to exploit the opportunities presented by the market in the coming years.

At Srikakulam, a major step towards efficient effluent management was taken during the year by the installation and commissioning of a Zero Liquid Discharge (ZLD) facility at a cost of Rs.240.600 Millions. The ZLD project bears witness to the company's endeavour to be a responsible corporate citizen as well as builds in certain amount of flexibility to manufacture a larger portfolio of products for which necessary clearances were obtained during the year. However, in an atmosphere of unrest in the district, the company too suffered severe curtailment of operations in the second half of the year bringing a major constraint to the execution of orders primarily from export markets and domestic bulk buyers. Normalcy in operations was attained towards the very end of the year.

The operations of the formulating units at Ethakota and Shadnagar continued to be normal. Since they cater to a large domestic customer base, a series of initiatives in the areas of production, quality control and supply chain have been taken to significantly enhance customer service.

The company informed that it has put up 3 no. of wind turbine generators (WTG) of 2.1 MW each totally of 6.3 MW in Tirunelveli Dist., Tamil Nadu with cost of Rs.340.000 Millions and the estimated power generation is 4.600 Millions KWH/PA per WTG. The Company has entered into power purchase agreement with Tamil Nadu Electricity Board.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENTS:
 
Of the US 44 billion US dollar global agrochemical Industry, the Indian market is estimated to be around US 1.7 billion dollars and over the years their country has developed a reputation of supplying quality products to the world markets. Indian Agrochemical Industry, with an export of around 1.6 billion, dollars, is the fourth largest producer in this segment after USA, Japan and China.

In this context the company plans to intensify its focus on enlarging its contract manufacturing and export business by making synergistic additions to its product portfolio. In the domestic market, it plans to augment its product range for the key crops simultaneously intensifying its level of activity in its already well developed farmer contact programme. A concurrent strategy would be to maximize the productivity of its assets to be able to carry out the above plans with an enhanced and sustainable competitive edge.
 
The company is also incorporating elements in its growth strategy to attenuate the negative impact of seasonal vagaries. These will comprise systematic addition of a few fine chemicals and intermediates that will not only provide a growth vector but also stability in its operations.
 
OPPORTUNITIES:
 
As the costs of production and controls increase in China, its ability to offer products at lower prices is under pressure creating a positive shift towards India as a preferred global supplier of agrochemicals. Since a large number of molecules will be entering the public domain in the coming years, there exists immense potential for rapid growth for established Indian contract manufacturers.
 
In the domestic market food security is increasingly becoming a matter of concern caused by static/declining acreage of crops and burgeoning demand for food grains by the fuel, fibre and feed segments apart from the food need of growing population. Agrochemicals are expected to play a major role in fast growth of productivity in the agriculture sector.
 
With the average pesticide consumption by the Indian farmer at 5 Kg/Ha being much lower than the global 10-17 Kg/Ha, it augurs well for the future of agrochemical companies who have a strong farmer reach.
 
OUTLOOK
 
With the firming up of market and broadening of the product portfolio, outlook for the export segment is quite positive. Similarly given the forecast of a normal monsoon in 2011, coupled with the company’s increased efforts to reach the farmer with more products, prospects for the domestic operations too look bright.

UNAUDITED FINANCIAL RESULTS FOR THE PERIOD ENDED 30^TH DECEMBER, 2011

	Quarter Ended		Nine Months Ended
PARTICULARS	31.12.2011 Unaudited	30.09.2011 Unaudited	31.12.2011 Unaudited
Net Sales / Income from Operations	1478.0000	2193.300	5136.600
Expenditure
(Increase)/decrease in Stock in Trade	(272.100)	98.800	(204.500)
Consumption of Raw Materials	1071.300	1286.100	3346.200
Purchase of Traded Goods	188.800	159.600	427.100
Employees Cost	116.700	120.600	343.400
Depreciation	68.100	67.400	202.200
Other Expenditure	223.600	262.600	703.000
Total Expenditure	1396.400	1995.100	4817.400
Profit / (Loss) From Operations before other Income Interest & Exceptional Items	81.600	198.200	319.200
Other Income	5.900	4.300	23.100
Profit/(Loss) before Interest and Exceptional items	87.500	202.500	342.300
Interest	69.600	72.300	215.600
Profit after interest but before exceptional items	17.900	130.200	126.700
Exceptional items	0.000	0.000	0.000
Profit / loss from ordinary activities before tax	17.900	130.200	126.700
Tax expenses	11.200	56.500	60.800
Net profit / loss from ordinary activities after tax	6.700	73.700	65.900
Extraordinary items	0.000	0.000	0.000
Net profit / loss for the period	6.700	73.700	65.900
Paid up equity share capital (Face value of Rs.10/- per share)	149.000	149.000	149.000
Reserves excluding revaluation reserves as per balance sheet of previous accounting year	--	--	--
Earnings per share (EPS)
(a) Basic and diluted EPS before Extraordinary items for the period, for the year to date and for the previous year (not to be annualised)	0.45	4.95	4.42
(a) Basic and diluted EPS before Extraordinary items for the period, for the year to date and for the previous year (not to be annualised)	0.45	4.95	4.42
Public shareholding
Number of shares	3233971	3233971	3233971
Percentage of shareholding	21.71	21.71	21.71
Promoters and Promoters group Shareholding-
a) Pledged /Encumbered
Number of shares	--	--	--
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	--	--	--
Percentage of shares (as a % of total share capital of the company)	--	--	--
b) Non Encumbered
Number of shares	11664186	11664186	11664186
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	100.00	100.00	100.00
Percentage of shares (as a % of total share capital of the company)	78.29	78.29	78.29

NOTE:

1. The above unaudited financial results were reviewed by the audit committee of the board and approved by the board of directors at their respective meetings held on 27^th January 2012

2. The statutory auditors have carried out the Limited Review as required under clause 41 of the Listing Agreement.

3. The company Business is seasonal in nature and the performance can be impacted by weather conditions.

4. The company main business segment is Agro Chemical, Wing Energy Business does not under reportable business segment as per accounting standard 17, hence there is no separate reportable business segment as per Segment Reporting Accounting Standard 17. Secondary segmental reporting is based on the geographical location of customers. The management views India and Outside India markets as distinct geographical segments.

	Quarter Ended		None Months Ended
PARTICULARS	31.12.2011	30.09.2011	31.12.2011
Segment Revenue
India	1059.300	1719.300	3610.700
Outside India	418.700	474.000	1525.900
Total	1478.000	2193.300	5136.600

5. Tax expenses includes current tax and deferred tax.

6. Number of investor complaints received and attended to during the quarter ended 31^st December 2011 (i) Pending at the beginning of the quarter Nil, (ii) Received during the quart - 5, (iii) Resolved during the quarter - 5, (iv) Remaining unresolved at the end of the quarter Nil.

1. In Terms of a resolution passed by the Board of Director in its meeting held on 12^th August 2011, a company on the name and style ‘LR Research Laboratones Private Limited’ was incorporated on 17^th August 2011 and the said company has become a wholly-owned subsidiary of Nagarjuna Agrichem Limited during the quarter ended 31^st December 2011 the company is yet to commence its operations

2. Comparative figures have been re-grouped and recast wherever considered necessary.

FIXED ASSETS

• Goodwill
• SAP Upgrade License Fees
• Land
• Buildings
• Plant and machinery
• Electrical installations
• Furniture and fixtures
• Office equipments
• Vehicles
• Computer and Peripherals

WEBSITE DETAILS:

BUSINESS DESCRIPTION:

Subject is an India-based company engaged in the manufacture of agrochemicals. The Company manufactures a range of pesticide technicals, formulations and custom manufactured fine chemicals. The technical-grade products manufactured by the Company include profenophos, acephate and dichlorovos under the insecticides category; pretilachlor under the herbicides category, and propicanzole, tricyclazole and myclobutanil under the fungicides category. In addition the Company also custom synthesis fine chemicals in addition to some agrochemical technical-grade products for overseas customers. The Company formulates its formulations in a formulation plant situated in the East Godavari District of Andhra Pradesh. In April 2011, the Company formed overseas subsidiary Nagarjuna Agrichem (Australia) Pty Limited. For the nine months ended 31 December 2010, Subject. Revenues decreased 11% to RS4.6B. Net income decreased 65% to Rs.165.400 Millions. Revenues reflect a decrease in revenue from Outside India geographical segment. Net income also reflects an increase in purchase of traded goods, higher employees cost, hiked depreciation expense, increase other expenditure and rise in interest expenses. The company is engaged in manufacturing of Agro Chemicals.

BOARD OF DIRECTORS:

SUDHAKAR KUDVA

NON-EXECUTIVE INDEPENDENT DIRECTOR

Mr. Sudhakar Kudva is Non-Executive Independent Director of Subject. He is a Fellow member of the Institute of Chartered Accountants of the India. He has 35 years of experience in senior positions in India and abroad. He has worked with the Nagarjuna Group, Hyderabad from 1981 to 1992, the Indian Seamless Group, Pune from 1992 to 2003 and from 2003 to 2007 with Arcelor Mittal, Algeria. The industry spectrum of his experience includes International Trading and contracting, financial services, manufacture of alloy and carbon steel, seamless tubes, mining, port operations and logistics. His areas of experience include accounting, financial management, and treasury management and general management. He is a Non-Executive Director on the Board of Bhagiradha Chemicals and Industries Limited.

P. K. MALLIK

NON-EXECUTIVE INDEPENDENT DIRECTOR

Mr. P. K. Mallik is Non-Executive Independent Director of Subject. He is a Ex-Senior Partner of Price Waterhouse, Kolkata. He is also Ex-President of Institute of Chartered Accountants of India, Former member of International Audit Practice Committee of International Federation of Accountants and Ex-Sheriff of Kolkata. He has experience in accountancy and auditing. He has been associated with the Company as a Director from December 8, 1986. Names of other Indian Companies in which he is a Director are as follows, N R C Limited, CHNHB Association, Kolkata, Kesoram Industries Limited, Peerless Financial Services Limited, International Combustion (India) Limited.

R. S. NANDA

NON-EXECUTIVE DIRECTOR

Mr. R. S. Nanda is Non-Executive Director of Subject. He graduated in Mechanical Engineering with distinction from Agra University. After a fairly long stint with the Fertiliser Corporation of India, Mr. Nanda chose to enter the private sector in 1979. He held senior positions of responsibility in Kanoria Chemicals, EID-Parry and Cyanamid India, before joining Coromandel Fertilisers Limited (a Murugappa Group Company) in 1992 as Vice President-Manufacturing and Projects. In January, 1994 he was elevated to the position of President and Managing Director of the Company. Mr. Nanda was also a Director on the Board of EID-Parry (India) Limited and on the Boards of Godavari Fertilisers and Chemicals Limited, Fertilisers Association of India and Indian Potash Limited. Mr. Nanda was the Chairman of the Confederation of Indian Industry, Andhra Pradesh State Council for the year 1999 2000 and Chairman of the Fertiliser Association of India, Southern Region, consecutively for two years i.e., in 1997-98 and 1998-99. He is a Whole-time Director and Chief Operating Officer of Nagarjuna Fertilisers and Chemicals Limited and also a Director of Reliance Cellulose Products Limited.

K. LAKSHMI RAJU

NON-EXECUTIVE DIRECTOR

Mrs. K. Lakshmi Raju is Non-Executive Director of Subject. She is a commerce graduate and also has a Degree in Business Administration. She has been associated with the Company as a Director from 24th June, 2004. She is not a Chairperson / Member of any committees of the Boards of the other Companies.

DATLA RANGA RAJU

NON-EXECUTIVE DIRECTOR

Mr. Datla Ranga Raju is Non-Executive Independent Director of Subject. He is a Graduate in Commerce and has served the Company as a Board Member since 30th April, 1993. He has 40 years of work experience in Manufacturing and Marketing of Agricultural Chemicals. He initiated Nagarjuna's entry into the pesticide business and until his retirement in 1997, had full operational responsibilities for the entire business unit.

V. VIJAY SHANKAR

MANAGING DIRECTOR

Mr. V. Vijay Shankar is Managing Director, Additional Director of Subject. He is fellow Chartered Accountant. He has experience in various chemical industries and experience in fertilizers, Agri and Automobile sectors the last three decades through his associations in Zuarichambal, Nagajurna and mahindra and mahindra Groups. He is director of Zuari Commodity Trading Limited Zuari Financial Services Limited Zuari Brokers Limited Membership / Chairmanship of Committees in Indian Public Limited Companies.

N. VIJAYARAGHAVAN

DIRECTOR

Mr. N. Vijayaraghavan is Director of Subject. He resigned as Whole-time Director of the company effective October 29, 2011. He is a B.Tech. (Metallurgy) from IIT, Chennai and holds a Post Graduate Diploma in Business Management from IIM, Ahmedabad. He has 37 years of experience in senior positions. He has worked in Larsen and Toubro Limited, ITW Signode Limited, Nagarjuna Fertilizers and Chemicals Limited and Sterlite Industries Limited. The industry spectrum of his experience includes manufacturing fields. His experience includes Fertilizer Manufacturing and Marketing Management and General Management.

PRESS RELEASES:

INDIA'S NAGARJUNA AGRICHEM POSTS 42% DROP IN SEPT QTR NET PROFIT

01 November 2011

NEW DELHI, November 1, Asia Pulse - Indian pesticide maker Nagarjuna Agrichem (BSE: 524709) has reported a decline of 42 per cent in its net profit at Rs73.700 Millions (US$1.50 million) for the July-September quarter.

The company, a part of the Nagarjuna Group, had reported a net profit of Rs126.600 Millions in the year-ago period, it said in a filing to the Bombay Stock Exchange (BSE).

However, the net sales rose by 17 per cent to Rs2193.300 Millions in the second quarter of the current fiscal year against Rs1872.700 Millions in the same quarter of the last fiscal year.

NAGARJUNA AGRICHEM TO INVEST RS 35.000 MILLIONS IN USP ORGANICS

12 May 2011

India, May 12 -- Nagarjuna Agrichem has received an approval for the investment of Rs 35.000 Millions by the company in the form of equity in USP Organics, Andhra Pradesh, manufacturer of fine and specialty chemicals. The company has received the board approval at its meeting held on May 11, 2011.Recently; Nagarjuna Agrichem had incorporated a new overseas subsidiary office in Australia in the name as 'Nagarjuna Agrichem (Australia)' on March 30, 2011. The overseas subsidiary was a registered company under the Corporations Act, 2001 at New South Wales, Australia. The primary functions of the overseas subsidiary was for applying and holding new product registrations for the company's products and do the trading business. The company manufactures a comprehensive range of pesticide technicals, formulations and custom manufactured fine chemicals. Nagarjuna Agrichem's product profile includes those tested and certified by best GLP Certified Independent laboratories in Europe and USA. All the products conform to national and international specifications.

GRADUATION CEREMONY OF XLRI'S SATELLITE PROGRAMME TODAY

02 April 2011

Jamshedpur, April 2 -- The graduation ceremony of XLRI's Satellite programme students and first batch of Post Graduate certificate course in Agri-Business Management will be held on Saturday at the Tata Auditorium. RS Nanda, Director and Chief Operating Officer, Nagarjuna Fertilisers and Chemicals Limited, Hyderabad will be the chief guest on this occasion.

Nanda joined Nagarjuna Fertilisers in February 2004 as a director. He is also board member of Nagarjuna Agrichem Limited. He with his team are putting efforts to add a lot of value to Nagarjuna group operations.

The concept of satellite programmes came with an intention of assisting working executives and fine tuning of their skills and competencies.

Such an exposure would lead to the enhancement of their career through education, modern technology, flexible timing schedule and practical work.

This is the ninth graduation ceremony of satellite-based programmes. Around 591 students will receive their certificates in various streams like, Business Management, Human Resource Management, Sales and Marketing Management and Retail Management. Currently, 1017 students are pursuing satellite programmes in different streams.

XLRI and Ikisan have designed this six-month certificate programme in Agri-Business Management for developing skills in the agricultural sector. This six-month programme is providing a virtual, self-learning environment for working professionals in the Agriculture Sector, so that they can upgrade their technical knowledge as well as gain fundamentals of business management. This is the first batch in which 16 students will receive get their certificates.

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.48.94
UK Pound	1	Rs.77.95
Euro	1	Rs.65.94

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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.