MIRA INFORM REPORT

Report Date :

16.11.2012

IDENTIFICATION DETAILS

Name :	DEVGEN SEEDS AND CROP TECHNOLOGY PRIVATE LIMITED
Registered Office :	7-C, Surya Towers, 105, S. P. Road, Secunderabad – 500003, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	28.03.2007
Com. Reg. No.:	01-053372
Capital Investment / Paid-up Capital :	Rs.337.583 Millions
CIN No.: [Company Identification No.]	U01117AP2007PTC053372
TAN No.: [Tax Deduction & Collection Account No.]	HYDD03412D
PAN No.: [Permanent Account No.]	AACCD5732D
Legal Form :	Private Limited Liability Company
Line of Business :	Trading of Seeds.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (13)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. There appears a huge accumulated losses recorded. Profitability of the company is under pressure. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings on a secured 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	7-C, Surya Towers, 105, S. P. Road, Secunderabad – 500003, Andhra Pradesh, India
Tel. No.:	91-40-30677050
Fax No.:	91-40-30687049
E-Mail :	n.neelakantan@devgen.com thierryb@devgen.com info@devgen.com wim.goemaere@devgen.com luc.maertens@devgen.com
Website :	http://www.devgen.com

DIRECTORS

AS ON 30.09.2011

Name :

Thierry Andre Olivier Eddy Bogaert

Designation :

Director

Address :

Wolvendreef 26 Kortrijk 8500 Belgium

Date of Birth/Age :

23.11.1960

Date of Appointment :

28.03.2007

DIN No.:

01374634

Name :

Wim Kurt Rudy Goemaere

Designation :

Director

Address :

Zakstraat 72, 9112, Sintniklaas, Belgium – 9112

Date of Birth/Age :

08.01.1964

Date of Appointment :

26.05.2011

DIN No.:

03279614

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U01117AP2007PTC053372	Devgen Seeds and Crop Technology Private Limited	Director	26-05-11	28-10-10	Active	NO

Name :

Luc Jacques Simon Maertens

Designation :

Director

Address :

Torentje 11, 8000 Brugge, Belgium 8000

Date of Birth/Age :

17.04.1971

Date of Appointment :

26.05.2011

DIN No.:

03317918

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U01117AP2007PTC053372	Devgen Seeds and Crop Technology Private Limited	Director	26-05-11	09-12-10	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Devgen NV	1
Devgen Pte Limited	33758345
TOTAL	33758346

AS ON 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00

BUSINESS DETAILS

Line of Business :

Trading of Seeds.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· ING Vysya Bank Limited

1-7-1, T. Subbarami Reddy Complex, Sardar Patel Road, Secunderabad - 500003, Andhra Pradesh, India

Facilities :

Unsecured Loans	31.03.2011 [Rs. in Millions]	31.03.2010 [Rs. in Millions]
Fully Convertible Debentures Unsecured	170.000	170.000
Foreign Currency Loans Others Unsecured	152.156	137.933
Working Capital Loans Banks Unsecured	9.959	87.376
TOTAL	332.115	395.309

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountant
Address :	1-8-384 and 385, 3rd Floor, Gowra Grand, S. P. Road, Begumpet, Secunderabad – 500003, Andhra Pradesh, India
PAN No.:	AACFD3771D
Holding Company :	Devgen Pte Limited, Singapore
Ultimate Holding Company:	Devgen NV, Belgium

CAPITAL STRUCTURE

AFTER 30.09.2011

Authorised Capital : Rs.685.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.500.074 Millions

AS ON 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
52000000	Equity Shares	Rs.10/- each	Rs.520.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
33758346	Equity Shares	Rs.10/- each	Rs.337.583 Millions

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
40000000	Equity Shares	Rs.10/- each	Rs.400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20508346	Equity Shares	Rs.10/- each	Rs. 205.083 Millions

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		205.083	5.083	5.083
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		200.000	0.000	0.000
4] (Accumulated Losses)		(688.642)	(378.547)	(181.937)
NETWORTH		(283.559)	(373.464)	(176.854)
LOAN FUNDS
1] Secured Loans		0.000	0.000	160.000
2] Unsecured Loans		332.115	395.309	313.405
TOTAL BORROWING		332.115	395.309	473.405
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		48.556	21.845	296.551
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		117.418	106.577	23.533
Capital work-in-progress		5.064	13.822	21.486
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	303.158	283.781	159.308
	Sundry Debtors	37.835	42.538	39.131
	Cash & Bank Balances	21.734	55.177	540.124
	Other Current Assets	0.051	0.042	0.000
	Loans & Advances	14.814	14.666	20.481
Total Current Assets		377.592	396.204	759.044
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	135.728	119.057	102.193
	Other Current Liabilities	299.048	359.753	396.072
	Provisions	16.742	15.948	9.247
Total Current Liabilities		451.518	494.758	507.512
Net Current Assets		(73.926)	(98.554)	251.532
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		48.556	21.845	296.551

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	585.300	518.900	432.800
		Other Income	15.500	11.300	9.900
		TOTAL (A)	600.800	530.200	442.700
Less	EXPENSES
		Materials and Inputs	404.600	266.300	181.100
		Personnel Costs	137.300	150.200	111.400
		Administrative and Other Expenses	320.000	280.000	208.200
		TOTAL (B)	861.900	696.500	500.700
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(261.100)	(166.300)	(58.000)
Less	FINANCIAL EXPENSES (D)		26.700	20.000	24.200
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(287.800)	(186.300)	(82.200)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		22.300	10.400	4.400
	PROFIT BEFORE TAX (E-F) (G)		(310.100)	(196.700)	(86.600)
Less	TAX (H)		0.000	0.000	4.800
	PROFIT AFTER TAX (G-H) (I)		(310.100)	(196.700)	(91.400)
	EARNINGS IN FOREIGN CURRENCY		NA	37.129	13.415
	IMPORTS
		Capital Goods	NA	11.352	0.000
	TOTAL IMPORTS		NA	11.352	0.000
	Earnings Per Share (Rs.)		(15.12)	(386.98)	(179.82)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(51.61)	(37.10)	(20.65)
Net Profit Margin (PBT/Sales)	(%)	(52.98)	(37.91)	(20.01)
Return on Total Assets (PBT/Total Assets}	(%)	(62.65)	(39.12)	(11.07)
Return on Investment (ROI) (PBT/Networth)		1.09	0.53	0.49
Debt Equity Ratio (Total Liability/Networth)		(2.73)	(2.38)	(5.55)
Current Ratio (Current Asset/Current Liability)		0.84	0.80	1.50

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	Yes
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

NOTE:

The Registered office of the company has been shifted from, Flat No.101, Sapthagiri Residency, 1-10-98/A, Chikoti Gardens, Begumpet, Hyderabad, Andhra Pradesh, India, to the present address w.e.f. 17.04.2008.

REVIEW OF OPERATIONS

During the year the turnover increased to Rs.585.300 Millions up by 13% over the last year inspite of unfavourable market condition for Sunflower. The company’s loss during the year has increased to 310.100 Millions. The higher loss compared to last year was due the unfavourable production environment resulting much higher production cost. During the year the company started trading activity relating to cotton seed.

COMPANY OVERVIEW

Company was incorporated on March 28, 2007 and started the business activities from June 2007, with the objective of carrying out agriculture operations i.e. cultivation of land, sowing, irrigation, production and sale of seeds grown primarily through conventional agricultural operations namely tilling land, etc, and trading of seeds.

CONTINGENT LIABILITIES:

Particulars	31.03.2011	31.03.2010
	(Rs. In Millions)
Performance Guarantees given by Banks	263.110	150.000
Letter of Credit given by Banks	3156.938	3848.899
Claim against the company not acknowledged as Debt	201.034	201.034

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.2.266 Million (31-Mar-2010: Rs.10.876 Millions) net of advances Rs.5.065 Millions (31-Mar-2010: Rs.13.822 Millions).

FIXED ASSETS:

· Land

· Building

· Computer and Accessories

· Electrical Instrument

· Furniture and Fixture

· Plant and Machinery

· Office Equipment

· Vehicles

· Commuter Software

PRESS RELEASE

Devgen receives recognition award from the Philippines’ National Seed Industry Council

Ghent, Belgium – June 11, 2012 – Devgen nv (Euronext Brussels: DEVG), the agro-biotech company that shapes the field of hybrid rice in India and Southeast Asia and innovates in crop protection technologies, today announced that the company received a recognition award from the National Seed Industry Council (NSIC) in the Philippines for its achievement as developer of three new hybrid rice varieties.

Devgen welcomes the award as the company only recently obtained registration for these three new hybrid seeds. One of these products, Frontline GoldTM, is now in the market in the Philippines. This high yielding rice seed is of early duration and has an excellent grain quality ideally suited for consumption. A second product in the same maturity segment is due for field demonstration trials in the coming wet season.

The award was conferred at the annual meeting of the Rice Technical Working Group of the NSIC. At the occasion of the same annual meeting, the results of the most recent government trials with hybrid rice seeds in the registration process were released. These trials took place in the wet season which ran from June till November 2011. Devgen participated in the trials alongside nine other seed companies and breeding institutions active in the country. A Devgen pipeline hybrid ranked first for grain yield per hectare in the key medium maturity segment. Two other Devgen pipeline products obtained strong second and fourth places in the early maturity segment. The results also showed other important characteristics of Devgen’s hybrid seeds such as disease and insect resistance as well as short grain length and highly desirable grain quality.

Both the newly registered and pipeline products of Devgen are highly adapted for the wet season. Today only few hybrids in the Philippines are suited for this season in which typhoons, pests and diseases are frequently occurring.

“This acknowledgement reflects both the commitment and success of Devgen and its Philippine research team to innovate in hybrid rice breeding in Southeast Asia,” says Thierry Bogaert, CEO of Devgen. “Devgen now has a solid portfolio of premium rice hybrids that deliver value to the farmer. These and our pipeline of premium products will form the basis of a sustainable hybrid rice business in the country.”

Rice is the most important food crop in the Philippines, a country of almost 100 million inhabitants. About 200,000 of the 4.4 million hectares of rice acreage in the country is currently planted with hybrid rice, which only represents a hybridization rate of 4.5%, compared to 60% in China. The total potential market volume if hybrid seed becomes widely adopted in the Philippines is over 33,000 tons of seed, with a total value of more than € 120 million.

ABOUT DEVGEN NV

Devgen innovates incrop protection research and environment induced stress tolerance for its own crops and provides technology to corporate partners. Since 1997, Devgen has conducted pioneering research in RNAi-based crop protection applications and has developed enabling technology, RNAi sprays and RNAi-based biotech traits for itself and on behalf of corporate partners.

Devgen is shaping the field of hybrid rice in India and Southeast Asia and helps farmers meet the productivity increases needed to grow more food on less land using less water, labour and agro-chemicals. Thereto, Devgen uses advanced biotechnology and molecular breeding technology to develop the Next Generation Hybrid Rice (NGHRTM) seeds:

· Devgen develops the next generation of hybrid rice, improving yield, seed productivity, grain quality, and tolerance to biotic and abiotic stress factors. Devgen strongly believes that this hybrid rice technology has the potential to drive the accelerated conversion of conventional rice to hybrid rice.

· Anticipating the need to increase insect resistance and drought/heat tolerance in rice to a level that is beyond what can be achieved with traditional breeding, Devgen creates a portfolio of biotech traits using own technology as well as in-licensed technologies.

· Devgen established an integrated seed business in India and Southeast Asia through which its rice crops and technologies reach the market. In India, Devgen complemented its hybrid rice business with geographically and seasonally complementary crops: hybrid sorghum, pearl millet and sunflower.

In its Crop Protection unit, Devgen developed a novel nematicide, an agro-chemical product that protects crops from damage by parasitic nematodes and has superior environmental and worker exposure profile compared to existing solutions. This product is currently sold in Turkey and was recently introduced on the market in the US.

Incorporated in 1997, Devgen has offices in Ghent (Belgium), and has subsidiaries in Singapore, Hyderabad (India), Yogyakarta (Indonesia), General Santos (the Philippines) and Delaware (US), totaling over 250 staff.

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 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 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.54.96
UK Pound	1	Rs.87.10
Euro	1	Rs.70.03

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	1
--CREDIT LINES	1~10	-
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		13

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.