MIRA INFORM REPORT

Report Date :

28.11.2012

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) :	31.03.2012

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 Shares are Listed on the Stock Exchange.

Line of Business :	Manufacturer of Agro Chemicals.

No. of Employees :	1078 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

Maximum Credit Limit :	USD 8290000

Status :	Satisfactory

Payment Behaviour :	Usually Correct

Litigation :	Exist

Comments :	Subject is an established company having satisfactory track. It has recorded some growth in its sales turnover and profits during 2012. Financial position of the company appears to be good. Trade relations are reported as decent. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered 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 – June 30, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	A – [Long Term]
Rating Explanation	Adequate degree of safety and low credit risk.
Date	March 2012

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 / Corporate 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.:	91-40-23358217 / 23350235/ 23357442
Fax No.:	91-40-23350234/ 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-500034, Andhra Pradesh, India

R and D Centre :	Shadnagar Nandigaon Village, Kothur Mandal, Mahaboobnagar, Andhra Pradesh, India

DIRECTORS

AS ON 31.03.2012

Name :	Dr. Nitish K. Sengupta
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. K.G. Vadivel
Designation :	Vice President [Manufacturing SKLM]

Name :	Mr. Manikkam Natarajan
Designation :	Vice President [Marketing and Sales]

Name :	Mr. Satish Kumar Subudhi
Designation :	Company Secretary and Head Legal

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. S. Chandra Sekhar
Designation :	Vice President [Corporate HPD]

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2012

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
		As a % of (A+B)
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	301836	2.03
Bodies Corporate	11362350	76.27
Sub Total	11664186	78.29
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	11664186	78.29
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	10356	0.07
Foreign Institutional Investors	100	0.00
Sub Total	10456	0.07
(2) Non-Institutions
Bodies Corporate	575664	3.86
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	2026329	13.60
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	519625	3.49
Any Others (Specify)	101897	0.68
Non Resident Indians	98707	0.66
Clearing Members	3190	0.02
Sub Total	3223515	21.64
Total Public shareholding (B)	3233971	21.71
Total (A)+(B)	14898157	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	14898157	0.00

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 :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Term Loans from Banks
Rupee Loan	424.676	649.056
Other Parties	0.000	0.000
Loans Repayable on Demand from Banks * [* Cash Credits, Working Capital Demand Loan including Non Fund Based Limits of Letters of Credit and Bank Guarantees from State Bank of India, IDBI Bank Limited and HDFC Bank Limited and Corporate Loan availed from State Bank of India are secured by way of hypothecation of current assets comprising of stock in trade, book debts and stores and spares, both present and future. The aforesaid facilities are further secured by second charge of the Company’s immovable and hypothecation of movable properties, both present and future, ranking pari passu with the Term Loans.]	1502.975	1013.546
TOTAL	1927.651	1662.602
NOTE: a) The Term Loans (except Term Loan for Wind Energy project) availed from State Bank of India, IDBI Bank Limited and HDFC Bank Limited are secured by way of equitable Mortgage by deposit of Title Deeds of the Company's immovable properties both present and future and by way of first charge of all Fixed Assets of the Company as a primary security and hypothecation of movable properties of the Company ranking pari passu and borrowings from State Bank of India and IDBI Bank Limited are further secured by a second charge on the current assets of the Company consisting of stock in trade, book debts, stores and spares. b) Term Loan availed from State Bank of India for Wind Power project is secured by way of mortgage by deposit of Title Deeds of the project's immovable properties and by way of first charge of all project fixed assets as a primary security. c) Working Capital Term Loan availed from New India Co-operative Bank Limited is secured by way of first charge on Company's fixed assets including other movable assets on pari passu basis. d) Term Loans from Banks (except Term Loan from HDFC Bank Limited and Corporate Loan from State Bank of India and Working Capital Term Loan from New India Co-operative Bank Limited availed during the FY 2009-10) and Working Capital Loans from Banks are personally guaranteed by Sri K.S. Raju, a Director of the Company. e) Terms of Repayments are given below: i) Loan taken from HDFC Bank is repayable in 12 Quarterly Installments of Rs. 20.000 Millions each. commencing from August 2010; Interest Rate @12.56% ii) Loan taken from IDBI Bank is repayable in 54 monthly Installments of Rs. 5.555 Millions each commencing from January, 2011; Interest Rate 14.25% iii) Loan taken from SBI Corporate Term Loan is repayable in 8 Quarterly Installments of Rs. 25.000 Millions each. Commencing from June, 2010; Interest Rate 15.00% and Outstanding Balance as on 31st March 2012 Rs. Nil. iv) Loan taken from New India Working Capital Term Loan is repayable in 5 yearly installments of Rs. 48.000 Millions each. commencing from March, 2011; Interest Rate 11% v) Loan taken from SBI Term Loan-Wind Power Project is repayable in 24 quarterly Installments of Rs. 9.000 Millions each commencing from September, 2011; Interest Rate 13.75%

Unsecured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Deferred Payment Liabilities	37.983	44.961
TOTAL	37.983	44.961
NOTE: Deferred Payment Liabilities. i) Sales Tax Deferment : Vide Order No.10/1/5/0564/0696 dated 26th April, 1995 the Government of Andhra Pradesh had sanctioned Sales Tax Deferment to the Company in respect of Monocrotophos for a period of Ten Years commencing from 1.7.1994; subject to a maximum of Rs.133.027 Millions. Based on the Sales Tax Returns, the sales tax so deferred aggregates net of repayments to Rs.14.799 Millions. (Previous Year Rs. 26.285 Millions). The repayment of deferred Sales Tax has commenced from July, 2004 as prescribed in the said order. ii) Further vide Revised order No.10/1/9/0023/0387/ ID, dated 31.01.2001, the Government of Andhra Pradesh had sanctioned Sales Tax Deferment to the Company in respect of Acephate and Profenofos for a period of fourteen years commencing from 28.09.1997 for Acephate and from 23.02.2000 for Profenofos, subject to a maximum of Rs.102.855 Millions. The Sales Tax deferred in a year is payable at the end of 14th Year without interest. First payment will commence from 25.09.2013 as prescribed in the order. Since financial year 2006-07, the Company has decided not to avail the Sales Tax deferment and opted to pay the Sales Tax henceforth. Based on the Sales Tax Returns, the Sales Tax so deferred aggregates to Rs. 29.373 Millions. (Previous Year Rs. 30.162 Millions).


Banking Relations :	--

Auditors :
Name :	M. Bhaskara Rao and Company Chartered Accountants
Address :	5-D, Kautilya, Somajiguda, Hyderabad – 500082, Andhra Pradesh, India

Cost Auditors :
Name :	K. Narasimha Murthy and Company Cost Accountants
Address :	3-6-365, 104 and 105, Pavani Estate, Himayathnagar, Hyderabad-500029, Andhra Pradesh, India

Holding Company :	KLR Products Limited (Formerly GSR Products Limited)

Associates / Subsidiaries :	· Nagarjuna Agrichem (Australia) Pty. Limited, Australia · LR Research Laboratories Private Limited · Indo International Fertilizers Limited · Nagarjuna Fertilizers and Chemicals Limited · Bhagiradha Chemicals and Industries Limited · USP Organics Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

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

NOTE:

SHARES IN THE COMPANY HELD BY EACH SHAREHOLDER HOLDING MORE THAN 5%

Particular

% of Shares Holding

As on 31.03.2012

No. of Shares

Rs. in Millions

KLR Products Limited, Holding Company

76.27

11362350

113.624

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		148.982	148.982	148.982
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1924.694	1877.548	1872.903
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2073.676	2026.530	2021.885
LOAN FUNDS
1] Secured Loans		1927.651	1662.602	1790.497
2] Unsecured Loans		37.983	44.961	63.286
TOTAL BORROWING		1965.634	1707.563	1853.783
DEFERRED TAX LIABILITIES		287.800	247.034	226.374

TOTAL		4327.110	3981.127	4102.042

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		1916.564	2078.070	1539.944
Capital work-in-progress		161.204	65.828	300.454

INVESTMENT		35.605	0.505	0.500
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1642.002	1457.503	1594.452
	Sundry Debtors	1948.596	1368.024	1630.516
	Cash & Bank Balances	250.739	234.593	224.947
	Other Current Assets	4.284	1.699	1.320
	Loans & Advances	349.150	310.271	257.066
Total Current Assets		4194.771	3372.090	3708.301
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1371.531	868.581	1169.111
	Other Current Liabilities	571.848	656.193	203.812
	Provisions	37.655	10.592	74.234
Total Current Liabilities		1981.034	1535.366	1447.157
Net Current Assets		2213.737	1836.724	2261.144

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		4327.110	3981.127	4102.042

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	6430.650	5700.839	6528.663
		Other Income	38.607	52.697	86.657
		TOTAL (A)	6469.257	5753.536	6615.320

Less	EXPENSES
		Cost of Materials Consumed	4168.440	3317.205
		Purchase of Stock in Trade	464.325	371.672
		Employee Benefits Expenses	449.469	400.665
		Other Expenses	946.204	816.487	5326.170
		Exceptional Items	0.000	30.303
		Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade	(303.480)	262.818
		TOTAL (B)	5724.958	5199.150	5326.170

Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		744.299	554.386	1289.150

Less	FINANCIAL EXPENSES (D)		332.332	259.520	171.490

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		411.967	294.866	1117.660

Less/ Add	DEPRECIATION/ AMORTISATION (F)		269.574	230.526	204.984

	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		142.393	64.340	912.676

Less	TAX (H)		69.276	33.551	315.111

	PROFIT / (LOSS) AFTER TAX (G-H) (I)		73.117	30.789	597.565

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1437.200	1436.000	985.610

Less	APPROPRIATIONS
		Transfer to General Reserve	4.000	3.500	60.000
		Interim Paid Dividend	0.000	22.300	5.064
		Interim Corporate Dividend Tax	0.000	3.800	29.796
		Final Proposed Dividend	22.400	0.000	44.694
		Provision For Corporate Dividend Tax	3.600	0.000	7.596
	BALANCE CARRIED TO THE B/S		1480.317	1437.189	1436.025

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1968.607	1535.106	2247.923
	TOTAL EARNINGS		1968.607	1535.106	2247.923

	IMPORTS
		Raw Materials	1364.005	1198.195	1744.838
		Capital Goods	19.904	2.058	11.924
	TOTAL IMPORTS		1383.909	1200.253	1756.762

	Earnings / (Loss) Per Share (Rs.)		4.91	2.07	40.11

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012
Type	1^st Quarter	2^nd Quarter
Net Sales	1622.000	2201.700
Total Expenditure	1484.000	2045.000
PBIDT (Excl OI)	138.000	156.700
Other Income	30.200	5.900
Operating Profit	168.200	162.600
Interest	93.900	73.400
PBDT	74.300	89.200
Depreciation	67.500	54.900
Profit Before Tax	6.800	34.300
Tax	3.600	16.300
Provisions and contingencies	0.000	0.000
Profit After Tax	3.200	18.000
Other Adjustments	0.000	0.000
Net Profit	3.200	18.000

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.13	0.54	9.03

Net Profit Margin (PBT/Sales)	(%)	2.21	1.13	13.98

Return on Total Assets (PBT/Total Assets}	(%)	2.33	1.18	17.39

Return on Investment (ROI) (PBT/Networth)		0.07	0.03	0.45

Debt Equity Ratio (Total Liability/Networth)		1.90	1.60	1.63

Current Ratio (Current Asset/Current Liability)		2.12	2.20	2.56

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	Yes
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	Yes
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	Yes
30]	Major Shareholders, if available	No
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

STATUS INFORMATION SYSTEM

CEA 209 / 2011 CEASR 762 / 2010 CASE IS: PENDING

PETITIONER RESPONDENT

THE COMMISSIONER OF CENTRAL EXCISE AND CUSTOMS,

VISAKHAPATNAM

VS NAGARJUNA AGRICHEM LIMITED

Pet. Adv: Rajashekar Reddy (SR SC For CB Excise)

Resp. Adv: Prabhakara Sastry

Subject: Central Excise Appeal

District: Visakhapatnam

Filing Date: 02.03.2010 Posting Stage: For Admission

Reg. Date: 27.12.2011 Listing Date: 02.11.2012 Status: Admit

Hon’ble Judge(s): Goda Raghuram M.S. Ramachandra Rao

PERFORMANCE:

For the year 2011-12, the Company reported annual sales revenue of Rs. 6430.700 Millions against Rs. 5700.800 Millions recorded in 2010-11 registering an increase of 12.80%. This increase in sales could be achieved due to increase in production volumes and widening product range with focus on value added products. The Company recorded an Operating Profit (PBIDT) of Rs. 474.700.Millions and Profit After Tax of Rs. 73.100 Millions with respective growth of 33.98% and 137% over the previous year. The increase in interest cost is mainly due to higher current asset levels in the form of higher inventory and receivables due to the monsoon failure and other market conditions. The cash profits for the year were Rs. 383.500 Millions as compared to Rs. 282.000 Millions during the previous year.

PLANT OPERATIONS:

The Company's Srikakulam's Technical Unit achieved an Annual production of 5307 MT during the year compared to 4335 MT of the previous year. The plant at Srikakulam has been stable since May, 2011 after the labour issues were settled. Since then production has been steadily improving. Debottlenecking was done for few plants by investing about Rs. 40.000 Millions.

The continued focus on streamlining the production facilities, augmenting the plant efficiencies and enhance the productivity during the year have started yielding results. The Ethakota and Shadnagar formulating units continued to be normal as well and could meet the demand of domestic customer base. Various initiatives in the areas of production volume increase, quality control and supply chain have been taken to meet the enhanced marketing demand and effective / better customer services. However, rising input costs, erratic and irregular power supply from Electricity Boards, Rupee depreciation, manpower attrition etc. are the causes of concern.

FIRE INCIDENT IN SRIKAKULAM PLANT:

As the Shareholders are aware, a fire was broke out in the block -5 of the Company’s plant at Srikakulam on 30th June, 2012. Although, there were no casualties, 19 people who sustained minor injuries, were treated in nearby hospitals and discharged within 5 days. The safety mechanisms and systems in place had helped to keep the injuries to a minimum. The unfortunate incident drew extensive media coverage resulting panic reaction by the nearby villagers. The concerned Government Authorities such as Inspectorate of Factories, Pollution Control Board and RDO, have issued necessary orders. The main reason for the fire is being investigated by Factories Department. The Company has initiated various measures towards meeting the additional requirements /compliances of the said Government authorities and improving upon various safety measures. The management is confi dent of the addressing the concerns of all stakeholders viz: local villagers, public, employees / laborers, Government Authorities etc. and hopeful to restart the operations at the earliest.

DOMESTIC AND EXPORT MARKETS:

The Indian Agrichemical market continues to be under pressure due to significant drop in Rabi acreages in certain parts of the country coupled with excess availability of product. The local pesticide industry in general is stuck in a spiraling loop of falling price realizations, inability to pass on increased input cost, tough competition, credit problems and stock returns. The delayed monsoon in the previous year has also joined impacting the crops particularly in South India. This resulted in the Company's domestic sale reducing from Rs. 3311.000 Millions to Rs.3165.700 Millions in the year. Towards focusing on farmers reach and touch, Marketing and Product Development department has been strengthened. The Company has also initiated discussions with different leading International Manufacturers to introduce new products into India.

Exports have shown significant improvement compared to the previous year, mainly due to stabilization of the Srikakulam plant. The Sales has increased from Rs.1585.900 Millions to Rs. 2080.400 Millions in the year. Contract (toll) manufacturing continues to be an important aspect of the Srikakulam production. The output is being increased in a few products due to increased demand, by debottlenecking. Relationship continues to be good with the Contract Manufacturing Customers. Work has commenced on selecting new products to offer to various existing and new customers.

WINDMILLS:

The Company has 3 windmills having a total capacity of 6.3 MW, located near Tirunelveli in Tamil Nadu. The operations of these are managed by M/s Suzlon Limited. The performance of the Windmills for the year was satisfactory. During the year, receivables from TNEB, who purchase the entire power generated as per the terms of the PPA, have been delaying their payments. The Industry has taken up the matter with TNEB.

SUB-DIVISION OF SHARES:

In order to facilitate the Shareholders to avail various inherent advantages of sub-division of face value of Equity Share of the Company viz: to improve liquidity of the Company's shares, to bring the share price down to a popular trading range, to attract new investors etc., the Board of Directors at its meeting held on 19th May, 2012 approved the proposal to sub-divide the nominal face value of the Equity Shares of the Company from Rs. 10/- per Equity Share to Rs. 1/- per equity share. The proposal is subject to approval of the Members and the requisite resolutions for such approval have been set out in the Notice convening this 25th Annual General Meeting.

STRATEGIC INVESTMENT:

As part of growth strategy, the Company has inclined to expand its business activities and identified Fine Chemicals as an area of opportunity and accordingly identified USP Organics Private Limited (USP) as a Company worthwhile being associated with and made investment in order to expand its products. The Company has invested a 26% stake in USP. USP has new and good production facilities located near Hyderabad. They have an operating capacity of 225 MT per month. The Company has started procuring certain chemicals used for manufacture from them.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT:

INDUSTRY OVERVIEW:

The Agrochemicals Industry plays a significant role in the Agriculture sector in India, which accounts for about one fifth of its GDP. The domestic market size of the Indian Agrochemical Industry is around Rs. 120000.000 Millions and is expected to grow at 10 % per annum. India's growth rate compares with the highest in the world. With emphasis in agriculture by the Government of India the growth is expected to continue. India is currently the fourth largest producer of Agrochemicals globally, after United States, Japan and China. The current domestic consumption is also expected to grow driven by rising population, decreasing per capita availability of arable land and focus on increasing agricultural yield. The demand will also be driven by the rising food grain demand and increasing awareness about pesticide usage among the farmer community. The pesticide consumption is around 480 gm per hectare which is very low compared to countries like Japan, USA etc.

The Indian market is served by many Companies. Being a generic market, ability to introduce me-too products is easy. Many small players have seized this and have an influencing presence in the market space. This has resulted in stiff competition and quality being compromised. Despite this, the attractiveness of the Indian market has made MNCs to set up shops in India over the past few years, through commencing business / acquisitions viz Maktisham Agan, Sumitomo and Arysta. Existing MNCs are implementing plans to grow. It is also to be noted that the Government is becoming active in reviewing products that have high toxicity levels. This has resulted in products being banned.

Contract Manufacturing and Exports in India is around USD 1.8 Billions. Phillips MacDonald (a leading global publication in the pesticide industry) has indicated that the contract manufacturing is expected to grow, as MNCs are focusing on growth in the generic markets as new product developments is becoming more expensive.

OUTLOOK:

The pesticide business, despite the above concerns is an attractive business. There are many short term challenges for growth. The Company is implementing various plans to leverage on its domestic network strength and as well as improving the efficiencies and productivity of the manufacturing facilities.

COMMITMENTS / CONTINGENT LIABILITIES:

PARTICULARS	31.03.2012 (Rs. in millions)	31.03.2011 (Rs. in millions)
(i) Letters of Credit	645.855	267.000
(ii) Counter Guarantees	22.220	77.419
Claims against the Company Not Acknowledged as Debts in Respect of	0	0
(i) Excise Duty, Service Tax Demands - Company has appealed against orders raised the demands	2.483	2.823
(ii) Income Tax Demands - Company has appealed against orders raised the demands. (Net of payments made under protest)	7.321	9.050
Estimated amount of Contracts, remaining to be executed on Capital Account and not provided for (Net of Advance)	98.209	89.718
Others	25.078	25.078
TOTAL	801.166	471.088

FIXED ASSETS:

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

UNAUDITED FINANCIAL RESULTS FOR THE PERIOD ENDED 30^TH SEPTEMBER, 2012

Rs. in Millions

Sr. No.	Particular	Quarter Ended		Half Year Ended
		30.09.2012 (Unaudited)	30.06.2012 (Unaudited)	30.09.2012 (Unaudited)

1.	Net Sales/Income from Operations	2201.700	1622.000	3823.700

2.	Expenditure
	Cost of materials consumed	1023.000	1326.500	2349.500
	Purchase of stock in trade	224.600	79.800	304.400
	Changes in inventories of finished goods, work in progress and stock in trade	534.200	(278.200)	256.000
	Employee benefits expenses	130.400	115.100	245.500
	Depreciation and amortization expenses	54.900	67.500	122.400
	Other expenses	132.800	240.800	373.600
	Total Expenses	2099.900	1551.500	3651.400

3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	101.800	70.500	172.300

4.	Other Income	5.900	30.200	36.100

5.	Profit Before Interest and Exceptional Items (3+4)	107.700	100.700	208.400

6.	Interest	73.400	93.900	167.300

7.	Profit After Interest but before Exceptional Items (5-6)	34.300	6.800	41.100

8.	Exceptional Items	--	--	--

9.	Profit from Ordinary Activities before Tax (7+8)	34.300	6.800	41.100

10.	Tax Expense	16.300	3.600	19.900

11.	Net Profit from Ordinary Activities after Tax (9-10)	18.000	3.200	21.200

12.	Extraordinary Item (net of expense)	--	--	--

13.	Net Profit for the period (11-12)	18.000	3.200	21.200

14.	Paid-up Equity Share Capital (Face Value of Rs.10/- Each)	149.000	149.000	149.000

15.	Reserves Excluding Revaluation Reserve	--	--	--

16.	Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised
	a) Basic and diluted EPS before extraordinary items	1.21	0.21	1.42
	b) Basic and diluted EPS after extraordinary items	1.21	0.21	1.42

17.	Public Shareholding
	-Number of Shares	3233971	3233971	3233791
	- Percentage of Shareholding	21.71	21.71	21.71

18.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	Nil	Nil	Nil
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	Nil	Nil	Nil
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	Nil	Nil	Nil

	b) Non Encumbered
	- Number of Shares	11664186	11664186	11664186
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	100%	100%	100%
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	78.29	78.29	78.29

Particulars	3 Months ended on March 31, 2012
Pending at the beginning of the quarter	Nil
Received during the quarter	11
Disposed of during the quarter	11
Remaining unresolved at the end of the quarter	Nil

STATEMENT OF ASSETS AND LIABILITIES

Rs. in Millions

PARTICULARS	30.09.2012
Equity and liabilities
Shareholders' fund
Share capital	149.000
Reserve & surplus	1945.800
Sub-total - Shareholders' funds	2094.800
Non - current liabilities
Long term borrowings	610.600
Deferred tax liability (net)	299.500
Other long term liabilities	118.100
Long term provisions	9.000
Sub-total - Non-current liabilities	1037.200
Current liabilities
Short term borrowings	1100.100
Trade payables	2262.200
Other current liabilities	336.200
Short term provisions	29.100
Sub-total - Current liabilities	3727.600

Total - Equity & Liabilities	6859.600

Assets
Non-current assets
Fixed assets	2067.100
Non-current investment	35.600
Long term loans & advances	161.900
Other non-current assets	0.000
Sub-total - Non-current Assets	2264.600
Current assets
Inventories	1614.600
Trade receivables	2625.200
Cash & bank balances	142.600
Short term loans & advances	207.200
Other current assets	5.400
Sub-total - Current Assets	4595.000

Total – Assets	6859.600

NOTE:

1. The above unaudited financial results were reviewed by the audit committee and approved by the board of directors on 8^th November, 2012.

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

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

4. The company is primarily engaged in the Farm Inputs Business, which in the context of accounting standard 17 is considered the only significant business segment.

5. The Srikakulam Plant has not been in operation during the quarter since the fire accident occurred on 30^th June 2012. Since then the company has received approvals from Government Authorities to recommence production for a few products in a few blocks at Srikakulam. Approvals for the remaining blocks are also expected to be received in due course, whereupon production will be take-up thereafter. The company is working on related matters and expects to resume operations at the earliest.

6. The company has lodged a provisional claim for the damages due to the fire accident at Srikakulam Plant with the Insurance Company. On completion of the final assessment and acceptance, the financial impact, if any, will be considered in the coming quarters.

7. As operations are yet to commence in the subsidiary companies, no consolidation of financial statement in required.

8. Tax expense includes current tax and deferred tax.

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

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 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.55.70
UK Pound	1	Rs.89.34
Euro	1	Rs.72.35

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	6
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		46

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.

MIRA INFORM REPORT

1642.002

1594.452

1948.596

1630.516

250.739

224.947

4.284

1.320

349.150

257.066

4194.771

1371.531

1169.111

571.848

203.812

37.655

74.234

1981.034

1447.157

2213.737

2261.144

1.13

2.21

2.33

0.07

1.90

2.12

Unit