MIRA INFORM REPORT

Report Date :

16.10.2012

IDENTIFICATION DETAILS

Name :	ADVANTA INDIA LIMITED
Registered Office :	Krishnama House, No.8-2-418, 3^rd Floor, Road No.7, Banjara Hills, Hyderabad-500035, Andhra Pradesh
Country :	India
Financials (as on) :	31.12.2011
Date of Incorporation :	24.01.1994
Com. Reg. No.:	01-063664
Capital Investment / Paid-up Capital :	Rs. 168.542 Millions
CIN No.: [Company Identification No.]	LO1119AP1994PLC063664
TAN No.: [Tax Deduction & Collection Account No.]	BLRA06535E
PAN No.: [Permanent Account No.]	AACCA7700L
Legal Form :	A Public Limited Liability Company. The Company’s shares are listed on Stock Exchange.
Line of Business :	Subject is engaged in the business of research, production and sale of field crops and vegetable seeds through distributors to farmers.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (61)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 14970000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an Associate Company of United Phosphorous Limited, a large Indian Agrochemical Company. It is the holding company for the global business of Advanta. It is a well established and reputed company having good track. It has achieved some growth in its sales during 2011. Financial position of the company appears to be healthy. Trade relations are reported as trustworthy. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good 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	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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	AA-(Long Term Instruments)
Rating Explanation	High degree of safety and very low credit risk
Date	July 2012

Rating Agency Name	CARE
Rating	A1+ (Short Term Instruments [Commercial Paper])
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	July 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 Office :	Krishnama House, No.8-2-418, 3^rd Floor, Road No.7, Banjara Hills, Hyderabad-500035, Andhra Pradesh, India
Tel. No.:	91-40-66284000
Fax. No.:	91-40-66284040
E-Mail :	manoj.gupta@advantaseeds.com dmullick@advantaindia.com sureshk@advantaindia.com
Website :	www.advantageindia.com
Corporate Office :	Unicorn House, Plot No. 3-5, #157/5, Balaji Enclave, Transport Road, Near Gunrock Diamond Point, Secunderabad-500009, Andhra Pradesh, India
Tel. No.:	91-40-2781 1554 / 2784 9729 / 2784 7769
Fax. No.:	91-40-2784 2399
Factory 1 :	B Camp Post, Krishna Nagar, Kurnool, Andhra Pradesh, India
Factory 2 :	Kalakkal Village, Toopran Mandal, Medal District, Andhra Pradesh, India
Factory 3 :	Bharati Brahma Seeds, Nutankal Village, Medchal Mandal, Gundla Pochampally, R.R. District, Andhra Pradesh, India
Factory 4 :	Plot No. 110, Sec. 57, Phase – IV, Industrial Estate, Kundali, Sonepat, Haryana, Andhra Pradesh, India

DIRECTORS

AS ON 31.12.2011

Name :	Mr. Jaidev R Shroff
Designation :	Chairman
Name :	Mr. V. R. Kaundinya
Designation :	Chief Executive Officer and Managing Director
Name :	Mr. Vikram R Shroff
Designation :	Non Executive Director
Name :	Mr. Vinod Sethi
Designation :	Independent Director
Name :	Dr. Vasant P. Gandhi
Designation :	Independent Director
Name :	Mr. Hardeep Singh
Designation :	Independent Director

KEY EXECUTIVES

Name :	Mr. Pushpalatha K
Designation :	Company Secretary
Name :	Mr. Manoj Gupta
Designation :	Chief Financial Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.06.2012

Category of Shareholder	No. of Shares	% of No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	847650	5.03
Bodies Corporate	9154486	54.3
Sub Total	10002136	59.33
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	1015350	6.02
Sub Total	1015350	6.02
Total shareholding of Promoter and Promoter Group (A)	11017486	65.35
(B) Public Shareholding
(1) Institutions
Foreign Institutional Investors	2910348	17.26
Sub Total	2910348	17.26
(2) Non-Institutions
Bodies Corporate	1290375	7.65
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	541921	3.21
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	258513	1.53
Any Others (Specify)	840101	4.98
Non Resident Indians	839349	4.98
Foreign Nationals	752	0
Sub Total	2930910	17.39
Total Public shareholding (B)	5841258	34.65
Total (A)+(B)	16858744	100
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0
(1) Promoter and Promoter Group	0	0
(2) Public	0	0
Sub Total	0	0
Total (A)+(B)+(C)	16858744	0

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of research, production and sale of field crops and vegetable seeds through distributors to farmers.

Products :

ITC CODE	PRODUCTS
12-06	Sunflower Seeds
10-05	Maize Seeds
10-06	Rice Seeds

PRODUCTION STATUS (AS ON : 31.12.2011)

Particulars	Unit	Actual Production
Basic Seeds	MT	121.17
Hybrid Seeds	MT	5760.40

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Axis Bank Limited

· ING Vysya Bank Limited

· Syndicate Bank Limited

· Yes Bank Limited

· State Bank of India

Facilities :

Secured Loan	Rs. In Millions 31.12.2011	Rs. In Millions 31.12.2010
Loans and Advances from Banks:
- Cash Credit Facilities*	183.890	101.097
Term Loans from Banks:
- Working Capital Demand Loan/Short Term Loan*	150.000	249.000
- Interest accrued and due	1.688	1.159
Loan from Department of Biotechnology **	6.393	3.138
TOTAL	341.971	354.394
NOTES * The aforesaid loans are secured by pari passu first charge by way of hypothecation of entire stocks of raw materials, finished goods, work-in-process, consumable stores and spares and such other movables including book-debts, outstanding monies, receivables, both present and future. ** Secured by way of hypothecation of all equipment, apparatus, machineries, machinery spares and other accessories, goods and/or other movable property, and/or immovable property of the Company acquired for the project through contribution by the Company and/or by the DBT to a value equivalent to loan amount and interest thereon
Unsecured Loan	Rs. In Millions 31.12.2011	Rs. In Millions 31.12.2010
Term Loans:
From Bank [Repayable within one year : Rs.150.000 Millions (Previous year Rs.150.000 Millions)]	650.000	650.000
Interest accrued and due	7.062	5.928
Other Loans:
From Company [Repayable within one year : Nil (Previous year Nil)]	314.000	0.000
Commercial Paper [Repayable within one year : Rs.150.000 Millions (Previous year Nil)] [Maximum amount outstanding at anytime during the year : Rs. 150.000 Millions (Previous Year : Rs. 200.000 Millions)]	150.000	0.000
Foreign Currency Convertible Bonds	2655.250	0.000
Non Convertible Debentures	1620.000	3750.000
Bill Discounting [Repayable within one year : Nil (Previous year Rs.97.752 Millions)]	0.000	97.752
TOTAL	5396.312	4503.680

Banking Relations :	--
Auditors :
Name :	S r Batliboi and Company Chartered Accountant
Address :	14^th Floor, The Ruby, 29, Seapati Bapat Marg, Dadar (West), Mumbai-400028, Maharashtra, India
Subsidiaries :	· Advanta Holdings B.V., Netherlands · Advanta Netherlands Holding B.V., Netherlands · Advanta Finance B.V., Netherlands · Advanta International B.V., Netherlands · Pacifi c Seeds (Thai) Limited, Thailand · Pacifi c Seeds Holdings (Thai) Limited, Thailand · Pacifi c Seeds Pty Limited, Australia · Advanta Semillas SAIC, Argentina · Advanta Seeds International, Mauritius · Longreach Plant Breeders Management Pty Limited, Australia · PT Advanta Seeds Indonesia · Advanta US Inc, USA · Unicorn Seeds Private Limited, India · Advanta Seeds Limited, India · Advanta Comercio De Sementes LTDA, Brazil · Advanta B V I Limited British Virgin, Islands
Other Related Parties :	· United Phosphorus Limited · Jai Research Foundation · PT United Phosphorus Indonesia · Demuric Holdings Private Limited

CAPITAL STRUCTURE

AS ON 31.12.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
60000000	Equity Shares	Rs.10/- each	Rs. 600.000 Millions
15000000	Preference Shares	Rs.10/- each	Rs. 150.000 Millions
	TOTAL		Rs. 750.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
16854212	Equity Shares	Rs.10/- each	Rs. 168.542 Millions

AS ON 20.06.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
60000000	Equity Shares	Rs.10/- each	Rs. 600.000 Millions
15000000	Preference Shares	Rs.10/- each	Rs. 150.000 Millions
	TOTAL		Rs. 750.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
16859544	Equity Shares	Rs.10/- each	Rs. 168.595 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2011	31.12.2010	31.12.2009
SHAREHOLDERS FUNDS
1] Share Capital		168.542	168.520	168.416
2] Share Application Money		0.000	0.639	0.000
3] Reserves & Surplus		3853.798	3780.898	3799.108
4] (Accumulated Losses)		(278.057)	(278.057)	0.000
NETWORTH		3744.283	3672.000	3967.524
LOAN FUNDS
1] Secured Loans		341.971	354.394	259.897
2] Unsecured Loans		5396.312	4503.680	1273.961
TOTAL BORROWING		5738.283	4858.074	1533.858
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		9482.566	8530.074	5501.382
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		557.279	631.956	707.108
Capital work-in-progress		3.065	3.733	4.291
INVESTMENT		4122.404	4125.851	4165.851
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	503.570	558.842	605.947
	Sundry Debtors	235.235	123.124	101.518
	Cash & Bank Balances	173.253	97.715	18.891
	Other Current Assets	36.937	78.763	30.993
	Loans & Advances	4447.353	3433.307	456.976
Total Current Assets		5396.348	4291.751	1214.325
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	131.593	197.131	220.658
	Other Current Liabilities	443.731	305.996	328.901
	Provisions	26.047	25.411	40.634
Total Current Liabilities		601.371	528.538	590.193
Net Current Assets		4794.977	3763.213	624.132
MISCELLANEOUS EXPENSES		4.841	5.321	0.000
TOTAL		9482.566	8530.074	5501.382

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2011	31.12.2010	31.12.2009
	SALES
		Income	1311.334	1013.271	1023.730
		Other Income from Operations	83.027	104.747	24.860
		Other Income	310.061	287.204	52.235
		TOTAL (A)	1704.422	1405.222	1100.825
Less	EXPENSES
		Cost of Goods Manufactured / Raw Material Consumed	638.225	619.205	706.820
		Personnel Expenses	161.719	168.546	177.067
		Operating and Other Expenses	202.891	302.269	312.416
		Prior Period Expenses	0.000	5.300	1.414
		(Increase) / Decrease in Inventories	(29.923)	52.809	6.476
		TOTAL (B)	972.912	1148.129	1204.193
Less	PROFIT /(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		731.510	257.093	(103.368)
Less	FINANCIAL EXPENSES (D)		484.211	466.613	240.839
	PROFIT /(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		247.299	(209.520)	(344.207)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		87.933	88.094	88.612
	PROFIT /(LOSS) BEFORE TAX (E-F) (G)		159.366	(297.614)	(432.819)
Less	TAX (H)		17.500	0.000	(18.519)
	PROFIT /(LOSS) AFTER TAX (G-H) (I)		141.866	(297.614)	(414.300)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(278.057)	19.557	453.560
Less	APPROPRIATIONS
		Transfer to Debenture Redemption Reserve	141.866	0.000	0.000
		Proposed Dividend	0.000	0.000	16.842
		Tax on Distributed Profits	0.000	0.000	2.861
	BALANCE CARRIED TO THE B/S		(278.057)	(278.057)	19.557
	EARNINGS IN FOREIGN CURRENCY
		Value of exports of goods on F.O.B. value	54.832	137.803	224.829
		Interest Income	289.713	257.404	0.000
		Reimbursement of expenses	120.122	24.286	0.000
		Others	10.447	0.000	48.465
	TOTAL EARNINGS		475.114	419.493	273.294
	IMPORTS
		Capital Expenditure	0.000	1.975	12.425
		Purchase of Seeds	40.798	36.851	64.455
		Consumables	0.000	0.000	0.430
	TOTAL IMPORTS		40.798	38.826	77.310
	Earnings /(Loss) Per Share (Rs.)		8.42	(17.67)	(24.60)

QUARTERLY RESULTS

PARTICULARS	31.03.2012	30.06.2012
	1^st Quarter	2^nd Quarter
Net Sales	563.790	121.400
Total Expenditure	568.410	79.200
PBIDT (Excl OI)	(4.620)	42.200
Other Income	61.220	85.190
Operating Profit	56.600	127.390
Interest	94.430	127.160
Exceptional Items	0.000	0.000
PBDT	(37.830)	0.230
Depreciation	21.880	21.550
Profit Before Tax	(59.720)	(21.320)
Tax	0.000	0.000
Provisions and contingencies	0.000	0.000
Profit After Tax	(59.720)	(21.320)
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	(59.720)	(21.320)

KEY RATIOS

PARTICULARS		31.12.2011	31.12.2010	31.12.2009
PAT / Total Income	(%)	8.32	(21.18)	(37.64)
Net Profit Margin (PBT/Sales)	(%)	12.15	(29.37)	(42.28)
Return on Total Assets (PBT/Total Assets}	(%)	2.68	(6.04)	(22.53)
Return on Investment (ROI) (PBT/Networth)		0.04	(0.08)	(0.11)
Debt Equity Ratio (Total Liability/Networth)		1.69	1.47	0.53
Current Ratio (Current Asset/Current Liability)		8.97	8.12	2.06

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	No
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)	Yes
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	Yes
30]	Major Shareholders, if available	No
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN 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

NATURE OF OPERATIONS

Subject is engaged in the business of research, production and sale of field crops and vegetable seeds through distributors to farmers.

BUSINESS OVERVIEW/OPERATIONS

The global consolidated business of Advanta has grown by an impressive 34.77% in 2011. Sweet Corn crop led the pack with a growth of 88% followed by Canola at 78%, Corn at 59%, Sunflower at 57% and Sorghum at 21%. Sorghum continues to be their largest crop contributing about 35% of their business. Among their subsidiaries they had excellent performances in Argentina, Thailand, USA and some of their International markets. Adverse weather conditions in Australia, Thailand and USA led to production losses which affected their business in the last quarter. Their wheat breeding program in Australia has started releasing good products to the market which are getting increasing acceptance from the farmers. New high quality forages are looking very promising in India.

They continued to invest 11% of their revenues in research. This is an important investment they are making in order to have a secure future. They continue to access GM traits through licensing mechanism and are in the process of introducing GM corn in Brazil and Philippines.

They have improved their inventory management very well in 2011. They are running very low on stocks in most of their crops by the end of the year. This is a result of tight production planning and generation of good sales as per plan. This helped them to improve their working capital management this year.

They improved gross margins of their business from 44% to 46% through improved prices and reduced cost of goods.

Overall, 2011 was a very good year for Advanta.

During the year, the Company has recorded a consolidated total income of Rs. 9521.492 Millions as against Rs. 7065.207 Millions for the previous year, which is 34.77% higher than that of the previous year. The consolidated Profit after tax stood at Rs. 122.905 Millions as against loss after tax of (Rs. 274.529) Millions for the previous year.

FUTURE OUTLOOK

2012 presents exciting prospects for them. The crop economics of corn, sunflower and canola look very good for the farmers which should help them to buy high quality inputs. The weather so far has been holding good.

They expect good growth in all their subsidiaries although some of them will have a tight availability of seed in 2012. They expect very good growth in all their crops but more particularly in Canola, Corn, Sunflower and Sweet Corn.

They are paying special attention to diversification of production and building supply chain capabilities in the organization. With considerable growth projected in some of the International markets like SE Asia, Europe, North Latin America and Africa they are looking at taking up new production sites in some of these countries. Corn is expected to drive most of their future growth and they are paying special attention to building capabilities in this crop. They are also looking at making processing arrangements in some of these countries either by ourselves or through outsourcing. They have reviewed their growth prospects till 2015 and are putting in place plans to plug the gaps in the required strengths and skills. This is a major area of investment for them.

SUBSIDIARY COMPANIES

As on date, the Company has five direct subsidiaries: Unicorn Seeds Private Limited – India; Advanta Seeds Limited– India; Advanta Holdings B.V. – Netherlands; Advanta Seed International – Mauritius; PT Advanta Seeds Indonesia - Indonesia. and eleven step-down subsidiaries: Advanta US Inc. – USA; Advanta Netherlands Holdings B.V. – Netherlands; Advanta Finance B.V. – Netherlands; Advanta International B.V. – Netherlands; Pacific Seeds Holding (Thailand) Limited – Thailand; Advanta Commercio De Sementas LTDA – Brazil; Pacific Seeds Pty. Limited – Australia; Advanta Semillas, SAIC – Argentina; Pacific Seeds (Thai) Limited – Thailand; Long Reach Plant Breeders Management Pty. Limited – Australia; Advanta (B.V.I) Limited- British Virgin Islands.

Pursuant to the provisions of Section 212 of the Companies Act, 1956, the Company is required to attach the Directors’ Report, Balance Sheet, and Profit and Loss account and other documents of its subsidiaries along with its Balance Sheet.

In this regard, it may be noted that pursuant to the directions issued by the MCA, vide General Circular No.2/ 2011, Dt. 8^th February, 2011, general exemption has been granted to the Companies from complying with the provisions of Section 212 of the Act in respect of their subsidiaries. This implies that the Company, being the Holding Company need not attach the Balance Sheet, Profit and Loss account etc., of its subsidiaries subject to compliance of certain conditions attached with the said exemption.

In view of the compliance of said conditions, audited consolidated financial statements for the year ended 31^st December, 2011, prepared in compliance with applicable Accounting Standards is attached herewith.

Further, the Company undertakes that the Annual Accounts of the subsidiary Companies and the related detailed information will be made available to its shareholders and to the shareholders of its subsidiary companies seeking such information at any point of time. Further, the Annual Accounts of the subsidiary Companies shall also be kept for inspection by any shareholder in its head office and that of the concerned subsidiary companies.

MANAGEMENT DISCUSSION AND ANALYSIS

Mankind witnessed the first ray of biotechnology when wine from grapes was made and yeast was discovered. Though not pronounced, biotechnology did get into action centuries ago. With the advent of agriculture in the civilized world, a sort of technology of leavening bread, malting grains and making cheese became a domestic activity, until Levin Hook discovered the cell and Louis Pasteur discovered the process of pasteurization. The biological science went into an upward spiral when the double helix of the DNA was unfolded to the world in the early part of the 20th Century.

INDUSTRY STRUCTURE AND DEVELOPMENTS

Growth in agriculture is twice as effective in reducing poverty as growth in other sectors.

Though the economic growth in the other nations was below average, the Asian economies, particularly India and China, recorded robust growth. The year also faced headwinds, such as European sovereign debt crises, political upheaval in middle-east, spill-over from the Japanese natural disaster and the high oil and other commodities prices as well as monetary tightening in emerging market economies to contain inflationary pressures.

Agriculture in India has a significant history. As of 2011, India has a large and diverse agricultural sector, accounting, on average, for about 16 percent of GDP and 10 percent of export earnings. India’s arable land area of 159.7 million hectares (394.6 million acres) is the second largest in the world, after the United States. Its gross irrigated crop area of 82.6 million hectares (215.6 million acres) is the largest in the world. India has grown to become among the top three global producers of a broad range of crops, including wheat, rice, pulses, cotton, peanuts, fruits and vegetables. Worldwide, as of 2011, India has the largest herds of buffalo and cattle, is the largest producer of milk and has one of the largest and fastest growing poultry industries. Agriculture is demographically the broadest economic sector and plays a significant role in the overall socio-economic fabric of India.

In fiscal year ending December 2011, with a normal monsoon season, Indian agriculture accomplished an all time record production of 85.9 million tons of wheat, a 6.3 percent increase from a year earlier. Rice output in India also hit a new record at 95.3 million tons, a 7% increase from the year earlier. Lentils and many other food staples production also increased year over year. Indian farmers, thus produced about 71 kilograms of wheat and 80 kilograms of rice for every member of Indian population in 2011. The per capita supply of rice every year in India is now higher than the per capita consumption of rice every year in Japan.

India exported about 2 billion kilograms each of wheat and rice in 2011 to Africa, Nepal, Bangladesh and other regions of the world.

The magazine released by the World Bank , “India Country Overview 2011” briefed Indian Agriculture as follows-

“With a population of just over 1.2 billion, India is the world’s largest democracy. In the past decade, the country has witnessed accelerated economic growth, emerged as a global player with the world’s fourth largest economy in purchasing power parity terms, and made progress towards achieving most of the Millennium Development Goals. India’s integration into the global economy has been accompanied by impressive economic growth that has brought significant economic and social benefits to the country. Nevertheless, disparities in income and human development are on the rise. Preliminary estimates suggest that in 2009-10 the combined all India poverty rate was 32% compared to 37% in 2004-05. Going forward, it will be essential for India to build a productive, competitive and diversified agricultural sector and facilitate rural, non-farm entrepreneurship and employment. Encouraging policies that promote competition in agricultural marketing will ensure that farmers receive better prices.”

The global seed industry had a good year in 2011 with better weather in many parts of the world, except for the drought in Southern parts of US. The GM crops acreage continues to grow rapidly.

The global seed market is currently being driven by the increasing acceptance and adoption of GM crops. The GM crops market size has grown to more than 150m ha in 2011. Corn and soybean still lead this revolution. Advanta’s participation in this segment is still at early stages. They have GM canola in Australia, GM corn in Argentina and GM cotton in India. Their GM business is expected to grow rapidly in the next three years.

The sorghum market is an important component of the global seed market. This market is primarily located in USA, Mexico, Argentina and Australia. Large sorghum acreages in India and Africa provide staple food to large populations. Advanta has a 26% share in the global sorghum market and is a leader in this market.

Some of the significant developments related to the seed industry in India during the last two years have been discussed below.

The Government of India imposed a moratorium on the development of Bt brinjal in February 2010. This moratorium has brought in a certain level of uncertainty in the development and the future of GM food crops in India. The regulatory process for the introduction of GM crops has also now prescribed obtaining a No Objection Certificate (NOC) from each of the state governments before undertaking GM crop trials in those states. This measure has considerably slowed down the regulatory process for GM crops in India as many states have not given the NOCs in 2011. These measures are expected to delay the introduction of more GM traits in India.

The new seed bill has been waiting for introduction in the Parliament for some time now. The introduction has got delayed due to lack of political consensus on certain provisions in the proposed law. The proposed law prescribes a product registration system in India for the first time. This is good for responsible seed companies like Advanta.

Subject endeavours to breed improved hybrid varieties of field (rice, cotton, mustard, forage and grain sorghums, corn, sunflower and pearl millet) and vegetable (okra, hot pepper, brinjal, gourds) crops to increase the productivity and profitability of Indian farmers.

Investment in Agriculture R and D is the most effective way of ensuring food security and economic growth. The pressing need is for quality seed of varieties and hybrids that are not only high yielding but resilient to less input- water, fertilizers etc. Thus food security is interwoven with the seed security. Advanta’s R and D targeted its research for developing hybrids that excel in the market with quality assurance.

The Company with vast experience in seed production of major agricultural crops backed by a very strong in-house R and D program for crops sorghum, sunflower, rice and several vegetable crops nurtured a competitive edge in seed and agribusiness.

OPPORTUNITIES AND OUTLOOK

The fundamentals of the Agriculture sector continue to be robust and will drive growth in the years to come. The future of the seed industry in India is expected to be very good, with the demand for branded and quality seeds increasing. Seeds will be an important contributor to the targeted 4% growth in agriculture.

Agriculture is gaining significance the world over with the rising needs from cultivation coupled with limited availability of land under cropping against the backdrop of the growing population. It is given that most of this need will be met by increasing productivity and making efficient use of natural resources which will see more constraints into the future.

In India, the changing demographics and increasing aspirations is leading to a varied set of expectations in the farming sector. The Government too is seized of all these perspectives and is devoting increased attention to the farming needs.

Government Initiative: The Union Government is planning the largest farm-loan relief package in the country’s history—totaling at least. Rs.320000.000 Millions —and proposals to this effect will be unveiled when the Union Budget is presented on 29 February 2011.

The package, which could end up totaling as much as Rs. 900000.000 Millions depending on the final shape of the proposals, is at the core of efforts by the ruling United Progressive Alliance and its largest constituent, the Congress party, to revive Indian agriculture and hopefully ride back to power in elections due in about a year.

People familiar with the process of creating the package say it will have several components—from a waiver of interest on some loans to the complete writing off of not just stressed assets (or bad loans) but even those loans that have been rescheduled.

OUTLOOK

The Company remains focused on its key objectives of profitable and sustainable growth, maximizing operational efficiencies and striving to attain the highest standards of quality, safety and productivity through - continuous breeding research efforts, new product offerings, aggressive sales and marketing strategies, a strong brand, far-reaching distribution infrastructure and investments in people development, the Company is hopeful of maintaining its performance going forward. Efforts at offering better technologies, that provide better value to the farmer, while mitigating external risks, have been generally well received both by the Government and the farmer. Continued success in these efforts is critical to maintain these growth prospects.

SOME OF THE EARLY INDICATORS FOR 2012 ARE VERY POSITIVE.

• The sunflower market and the corn markets continue to be very strong in 2012. There is a tight supply of sorghum seed because of drought in US. They will launch GM corn in Brazil and Philippines with outsourced products this year. They are expecting their canola business to grow substantially compared to 2011 giving a big boost to their Australian business.

• The growth in Latin America is expected to be very strong in many parts like Argentina, Venezuela, Ecuador, etc. They expect a big jump in the corn business in Thailand and Indonesia. This year could be a significant one in the history of corn business in Advanta. They will see a substantial increase in the wheat business of Long reach due to increasing acceptance of their wheat varieties.

• Sweet corn and other vegetables business should see a good growth in this year. They already have good growth oriented indents for their sweet corn from some countries.

• They will launch their sunflower in Europe for the first time. This is a major step forward for their International business. Rice and corn businesses in India should grow well based on their product performance and the Government subsidy programs

SEGMENT–WISE OR PRODUCT-WISE PERFORMANCE

BUSINESS SEGMENT:

The Company has considered hybrid seed business segment as the primary segment for disclosure. The Company is engaged in research, development, production and distribution of Hybrid seeds, which in the context of Accounting Standard 17, India is considered the only Business Segment.

GEOGRAPHICAL SEGMENT:

Their sales are predominantly generated from international markets contributing about 85% to total sales and about 15% of the sales are generated from domestic markets. Secondary segmental information is based on the geographical location of the customers. The geographical segment have been disclosed based on revenues within India (sales to customers in India) and revenues outside India (sales to customers located outside India).

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The Company has recorded a consolidated total income of Rs. 9521.492 Millions as against Rs. 7065.207 Millions for the previous year, which is 34.77% higher than that of the previous year. The consolidated profit after tax stood at Rs. 122.905 Millions as against loss after tax of (Rs. 274.529) Millions for the previous year.

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Furniture and Fixtures

· Motor Vehicles

· Lease Hold Improvements

· Goodwill

· Technical Knowhow

· Germ Plasm

· Software

· Trade Marks / Brands

STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER AND 6 MONTHS ENDED 30.06.2012

(Rs. in millions)

Sr. No.	Particular	3 Months Ended	Preceding 3 Months Ended	Year to Date for the current period Ended
		30.06.2012 (Unaudited)	31.03.2012 (Unaudited)	30.06.2012 (Unaudited)
1.	Net Sales/Income from Operations	121.403	563.787	685.190
2.	Expenditure
	Cost of Material Consumed	88.642	26.280	114.922
	Change in Inventories of Finished Goods, Work-In-Process and Stock in Trade	(35.163)	472.993	437.830
	Employees Benefits Expenses	9.499	24.182	33.681
	Depreciation and Amortixation Expenses	21.554	21.882	43.436
	Other Expenses	16.217	44.960	61.177
	Total	100.749	590.297	691.046
3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	20.654	(26.510)	(5.856)
4.	Other Income	85.194	61.222	146.416
5.	Profit Before Interest and Exceptional Items (3+4)	105.848	34.712	140.560
6.	Interest	127.163	94.432	221.595
7.	Profit After Interest but before Exceptional Items (5-6)	(21.315)	(59.720)	(81.035)
8.	Exceptional Items	--	--	--
9.	Profit from Ordinary Activities before Tax (7+8)	(21.315)	(59.720)	(81.035)
10.	Tax Expense	--	--	--
11.	Net Profit from Ordinary Activities after Tax (9-10)	(21.315)	(59.720)	(81.035)
12.	Extraordinary Item (net of expense)	--	--	--
13.	Net Profit for the period (11-12)	(21.315)	(59.720)	(81.035)
14.	Paid-up Equity Share Capital (Face Value of Rs.10/- Each)	168.587	168.582	168.587
15.	Reserves Excluding Revaluation Reserve	--	--	--
16.	Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised
	a) Basic and diluted EPS before extraordinary items	(1.26)	(3.54)	(4.81)
	b) Basic and diluted EPS after extraordinary items	(1.26)	(3.54)	(4.81)
17.	Public Shareholding
	-Number of Shares	5841258	5840754	5841258
	- Percentage of Shareholding	34.65	34.65	34.65
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	11017486	11017486	11017486
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	100.00	100.00	100.00
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	65.35	65.35	65.35

Particulars	3 Months ended on 30.06.2012
Pending at the beginning of the quarter	Nil
Received during the quarter	Nil
Disposed of during the quarter	Nil
Remaining unresolved at the end of the quarter	Nil

NOTES

1. The consolidated Net Sales including other operating income of the company for the quarter ended 30^th June 2012 is Rs. 2658.762 Millions (Previous year corresponding Quarter : Rs. 2355.147 Millions), Profit before tax is Rs. 181.616 Millions (Previous year corresponding Quarter : Rs. 223.252 Million) and Profit after tax is Rs. 142.698 Millions (Previous year’s corresponding Quarter : Rs. 173.112 Million). The Statutory auditors have not carried out the limited review of consolidated figures.

2. The above results for the quarter ended 30^th June 2012 were reviewed by the Audit Committee and thereafter taken on record by the Board of Directors at their respective meetings held on 10^th August 2012. The statutory auditors have carried out the limited review of the above results.

3. The nature of business carried by the company is seasonal. The profit/loss does not accrue evenly over the year, therefore the results of the quarter may not be representative of profit /loss for the year.

4. The company is primarily engaged in Hybrid Seeds. As such there is no separate reportable segment as defined by Accounting Standard 17 notified pursuant to the companies (Accounting Standards) Rules, 2006.

5. With the completion of the pilot project on integration of sales and marketing function with United Phosphorus Limited in India, as a progression of this process, the Company has entered into a License Agreement subsequent to the end of the year for transfer of technical know-how, manufacture and sale of licensed products I consideration of royalty from UPL. Pursuant to this arrangement the Company in the previous quarter has sold its inventories to UPL

6. Petition was filed before Hon’ble High Court of Andhra Pradesh after obtaining the consent from the shareholders and trade creditors for the scheme of amalgamation and arrangement between Advanta India Limited and its wholly owned subsidiary i.e. Unicorn Seeds Private Limited. Approval from the said High Court is awaited. Pending necessary approvals, no effect for the same has been given in the results for the current quarter.

7. The Company allotted 504 equity shares of Rs.10/- each on 7^th May 2012 pursuant to exercise of options under “Employee Stock Option and shares Plan-2006” and got the same listed at BSE and NSE.

8. Rations have been computed as follows:

Debts comprises Long-Term and Short-Term Borrowings

Debt Service Coverage Ratio = Earnings before Depreciation, Interest and Tax (Interest on Debt + Principal Repayments excluding rollover)

Interest Service Coverage Ratio = Earnings before Depreciation, Interest and Tax / Interest on Debt

9. Previous period’s / year’s figures have been regrouped /rearranged wherever necessary.

STANDALONE STATEMENT OF ASSETS AND LIABILITIES

(Rs. In Millions)

PARTICULARS	Current half year end 30.06.2012
Equity and liabilities
Shareholders' fund
Share capital	168.587
Reserve & surplus	3495.952
Sub-total - Shareholders' funds	3664.539
Share Application Money Pending Allotment	0.171
Non - current liabilities
Long term borrowings	4402.143
Other Long-Term Liabilities	5.847
Long term provisions	11.405
Sub-total - Non-current liabilities	4419.395
Current liabilities
Short term borrowings	400.000
Trade payables	219.840
Other current liabilities	456.595
Short term provisions	6.204
Sub-total - Current liabilities	1082.639
Total - Equity & Liabilities	9166.744
Assets
Non-current assets
Fixed assets	522.143
Non-current investment	4273.442
Long term loans & advances	3807.321
Sub-total - Non-current Assets	8602.906
Current assets
Current Investments	10.000
Inventories	46.305
Trade receivables	48.117
Cash & bank balances	198.831
Short term loans & advances	37.473
Other current assets	223.112
Sub-total - Current Assets	563.838
Total – Assets	9166.744

WEBSITE DETAILS

COMPANY OVERVIEW

Subject is Associate company of United Phosphorus Limited (UPL) a large Indian Agrochemical Company with a group turnover of Rs. 35000.000 Millions. Subject is the holding company for the global business of Advanta.

Subject utilizes with the Molecular Marker Technology in some crops, while building up value added biotech traits through seeds. A cash rich company with the ability to invest in the future, Subject with it's strong network of technology collaborations is a preferred partner for the technology providers. Subject has a unique opportunity to capitalize on future potential benefits of innovation in the hybrid seeds industry. The company has an outstanding base, both in terms of its market share in key crops and its proprietary products and expertise.

Subject is now embarking upon a very aggressive growth strategy. While organic growth will be a key factor in this, strategic acquitions will play a crucial role in achieving their objectives set for the next five years.

BOARD OF DIRECTORS

JAI R. SHROFF - EXECUTIVE CHAIRMAN

• Graduate in Chemistry from University of Mumbai
• Executive Director of United Phosphorus Limited
• Responsible for the development of new products, international business and strategic alliances with various parties in different markets.

VIKRAM R. SHROFF - EXECUTIVE DIRECTOR & PRESIDENT

• Graduate in Chemistry from University of Mumbai and Alumnus of Harvard Business School
• Executive Director of United Phosphorus Limited
• Responsible for human resource planning, purchase, commercial, marketing and production functions in UPL and focus on cutting measures

V.R.KAUNDINYA - MANAGING DIRECTOR

• Graduate in Agriculture and IIM Ahmedabad alumnus in Agri-business
• Over 26 years of experience in agriculture industry

HARDEEP SINGH, INDEPENDENT DIRECTOR

• Graduate in Economics from Pune University and Alumnus of Kellogg School of Management
• Former Chairman of Rallis India Limited and Ex - Chairman of Cargill India
• Currently on the Board of Cargill India Private Limited and Punjab tractors Private Limited

DR. VASANT P. GANDHI, INDEPENDENT DIRECTOR

• Alumnus of IIM Ahmedabad and Standford University
• Worked with NDDB, Standford University, the World Bank and the International Food Policy Research Institute
• Currently Professor at IIM Ahmedabad

VINOD SETHI, INDEPENDENT DIRECTOR

• Alumnus of IIT Bombay and Stern Graduate School of Business of New York University
• Served as CIO of Indian Business division of Morgan Stanley for 12 years

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. 53.11
UK Pound	1	Rs. 85.14
Euro	1	Rs. 68.60

INFORMATION DETAILS

Report Prepared by :

DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		61

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.