MIRA INFORM REPORT

Report Date :

02.04.2013

IDENTIFICATION DETAILS

Name :	MONSANTO INDIA LIMITED (w.e.f 12.04.2000)
Formerly Known As :	MONSANTO CHEMICALS OF INDIA LIMITED
Registered Office :	Ahura Centre, 5^th Floor, 96, Mahakali Caves Road, Andheri (East), Mumbai – 400 093, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	08.12.1949
Com. Reg. No.:	11-007912
Paid-up Capital :	Rs. 172.600 Millions
CIN No.: [Company Identification No.]	L74999MH1949PLC007912
TAN No.: [Tax Deduction & Collection Account No.]	MUMM19093E
PAN No.: [Permanent Account No.]	AAACM2875L
Legal Form :	A Public Limited Liability Company. The company shares are listed on the Stock Exchanges.
Line of Business :	Subject is engaged in the business of production and sale of agricultural inputs, namely, chemicals and hybrid seeds.
No. of Employees :	400 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (63)

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 15370000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a subsidiary of “Monsanto Holdings Private Limited”. It is a well established and reputed company having a good track record. the financial performance of the company seems to be strong. The liquidity position is good. There appears no external borrowing. The company gets strong financial support from its group companies. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered for normal 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

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 :	Ahura Centre, 5^th Floor, 96, Mahakali Caves Road, Andheri (East), Mumbai – 400 093, India
Tel. No.:	91-22-28246450 /26902100/67029851
Fax No.:	91-22-26902111 /26902121/67023361/28244707
E-Mail :	info@monsantoindia.com investorecare.india@monsanto.com
Website :	www.monsantoindia.com
Factory 1 :	1, 4 and 5, Madhuban Industrial Estate, Madhuban Dam Road, Rakholi, Silvassa – 396 240, Union Territory of Dadra and Nagar Haveli, India
Factory 2 :	Moka Road, Srivara Village, Bellary – 583 103, Karnataka, India
Factory 3 :	Bapirajagudem Village, Pedavegi Mandal, Vijaya Rai Post, West Godavari Dist. – 534 475, Andhra Pradesh, India
Factory 4:	Survey No.677-679, Village: Lalgudi Malakpet, Shamirpet, District: Ranga Reddy– 500 078, Andhra Pradesh, India

DIRECTORS

AS ON 31.03.2012

Name :	Mr. Sekhar Natarajan
Designation :	Chairman
Name :	Mr. Amitabh Jaipuria
Designation :	Managing Director
Name :	Mr. R.C. Khanna
Designation :	Director
Name :	Mr. H.C. Asher
Designation :	Director
Name :	Mr. Pradeep Poddar
Designation :	Director
Name :	Mr. Ravinder K Reddy
Designation :	Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2012

Category of Shareholder	No. of Shares	% of No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(2) Foreign
Bodies Corporate	12454044	72.14
Sub Total	12454044	72.14
Total shareholding of Promoter and Promoter Group (A)	12454044	72.14
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	352445	2.04
Financial Institutions / Banks	7543	0.04
Foreign Institutional Investors	2031	0.01
Sub Total	362019	2.1
(2) Non-Institutions
Bodies Corporate	1202857	6.97
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	2369684	13.73
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	187266	1.08
Any Others (Specify)	686878	3.98
Clearing Members	6424	0.04
Market Maker	3351	0.02
Non Resident Indians	243797	1.41
Trusts	1730	0.01
Directors & their Relatives & Friends	431576	2.5
Sub Total	4446685	25.76
Total Public shareholding (B)	4808704	27.86
Total (A)+(B)	17262748	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)	17262748	0

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of production and sale of agricultural inputs, namely, chemicals and hybrid seeds.

Products :

Item Code No.	Product Description
NA	Hybrid Seeds
380830.09	Pesticides/Herbicides

GENERAL INFORMATION

No. of Employees :	400 (Approximately)
Bankers :	Citibank N.A. Canara Bank, Andheri (E), Mumbai, Maharashtra, India

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Mumbai, Maharashtra, India
Holding Company :	· Monsanto Holdings Private Limited
Ultimate Holding Company :	· Monsanto Company, USA
Fellow Subsidiaries :	· P.T. Branita Sandhini · Monsanto Philippines INC · Monsanto Thailand Limited · Bretco Holding (Mauritius) Limited · Monsanto Singapore Pte Limited · Monsanto Pakistan Agri-tec (Private) Limited · PT Monagro Kimia · Monsanto AG Products LLC · Monsanto Ag Technology LLC · Monsanto Inter-America Company · Monsanto S.A.S · Monsanto Far East Limited · Seminis Beijing Company Limited · Mahyco Monsanto Biotech (India) Limited · Monsanto International SARL · Monsanto Hungaria KFT

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 Capital :

No. of Shares	Type	Value	Amount
17262748	Equity Shares	Rs.10/- each	Rs. 172.600 Millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
17262348	Equity Shares	Rs.10/- each	Rs. 172.600 Millions

NOTES

1. Rights, preferences and restrictions attached to equity shares:

(i) Right to receive dividend as may be approved by the Board of Directors/Annual General Meeting.

(ii) The equity shares are not repayable except in the case of a buy back, reduction of capital or winding up in terms of the provisions of the Companies Act, 1956.

(iii) Every member of the company holding equity shares has a right to attend the General Meeting of the company and has a right to speak and on a show of hands, has one vote if he is present in person and on a poll shall have the right to vote in proportion to his share of the paid-up capital of the company.

(iv) Monsanto Company USA, the ultimate holding company has certain rights enshrined in the Articles of Association pertaining to appointment of Directors.

2. Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the year:

Particulars	As at 31st March, 2012
Subscribed and Fully paid up	Number	Rs. In Millions
Shares outstanding at the beginning of the year	8,631,174	86.300
Add: Shares issued during the year as fully paid up bonus shares	8,631,174	86.300
Shares outstanding at the end of the year	17,262,348	172.600

3. Details of shares held by the holding company and the ultimate holding company, in aggregate:

Particulars	As at 31st March, 2012
	Number
Monsanto Company USA, the ultimate holding company	3,201,920
Monsanto Holdings Private Limited, the holding company	9,252,124

4. Details of shares, held by each shareholder holding more than 5% shares:

Particulars	As at 31st March, 2012
	Number	% of holding
Monsanto Company USA	3,201,920	18.55
Monsanto Holdings Private Limited	9,252,124	53.60

5. Aggregate number and class of shares allotted as fully paid up bonus shares for a period of 5 years immediately preceding the Balance Sheet date is 8,631,174 in the current year 2011-12 (Previous Year Nil).

6. Shares reserved for issue under commitments :

Since, 400 shares were subject matter of disputes/court proceedings, the Company has not been able to issue/allot Rights and Bonus shares’ entitlements on the said 400 shares.

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		172.600	86.300	86.312
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3671.300	3656.900	3429.517
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3843.900	3743.200	3515.829
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		3843.900	3743.200	3515.829
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		808.600	876.400	1146.527
Capital work-in-progress		111.300	50.800	9.518
INVESTMENT		1957.800	1513.600	807.226
DEFERREX TAX ASSETS		27.200	29.600	24.897
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1296.800	1303.200	1824.863
	Sundry Debtors	502.700	408.500	451.116
	Cash & Bank Balances	189.900	171.700	316.594
	Other Current Assets	118.200	109.200	2.370
	Loans & Advances	257.600	374.800	187.640
Total Current Assets		2365.200	2367.400	2782.583
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	749.800	534.900	335.736
	Other Current Liabilities	342.400	295.800	746.536
	Provisions	334.000	263.900	172.650
Total Current Liabilities		1426.200	1094.600	1254.922
Net Current Assets		939.000	1272.800	1527.661
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3843.900	3743.200	3515.829

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	3737.700	3634.100	4101.354
		Other Income	151.500	83.500	125.447
		TOTAL (A)	3889.200	3717.600	4226.801
Less	EXPENSES
		Cost of materials consumed and other inputs	1553.800	988.900	3531.491
		Purchase of Stock-in-Trade - Agricultural chemicals	3.400	0.000
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade”	72.400	500.100
		Employee benefits expense	456.100	432.600
		Other expenses	1101.900	1060.500
		Exceptional Items	(2.600)	121.700
		TOTAL (B)	3185.000	3103.800	3531.491
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		704.200	613.800	695.310
Less	FINANCIAL EXPENSES (D)		12.800	2.800	2.878
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		691.400	611.000	692.432
Less/ Add	DEPRECIATION/ AMORTISATION (F)		90.000	108.100	114.763
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		601.400	502.900	577.669
Less	TAX (H)		99.500	74.600	39.452
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		501.900	428.300	538.217
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1136.500	951.900	644.001
Less	APPROPRIATIONS
		Interim Dividends	172.600	86.300	86.312
		Tax on Interim Dividends	28.000	14.300	14.669
		Proposed Dividend	172.600	86.300	64.734
		Tax on Proposed Dividend	28.000	14.000	10.751
		Transfer to General Reserve	50.200	42.800	53.822
	BALANCE CARRIED TO THE B/S		1187.000	1136.500	951.930
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	154.700	105.800	178.276
	TOTAL EARNINGS		154.700	105.800	178.276
	IMPORTS
		Raw Materials	595.300	524.200	534.035
		Capital Goods	0.000	0.000	23.184
	TOTAL IMPORTS		595.300	524.200	557.219
	Earnings Per Share (Rs.)		29.07	24.81	62.36

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012
	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	2043.700	569.600	1120.900
Total Expenditure	1518.300	690.000	845.600
PBIDT (Excl OI)	525.400	(120.400)	275.300
Other Income	37.700	39.000	46.300
Operating Profit	563.100	(81.400)	321.600
Interest	0.800	0.900	0.900
Exceptional Items	0.000	0.000	0.000
PBDT	562.300	(82.300)	320.700
Depreciation	23.600	28.100	28.900
Profit Before Tax	538.700	(110.400)	291.800
Tax	52.400	10.700	(1.000)
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	486.300	(121.100)	292.800
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	486.300	(121.100)	292.800

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	12.90	11.52	12.73
Net Profit Margin (PBT/Sales)	(%)	16.09	13.84	14.08
Return on Total Assets (PBT/Total Assets}	(%)	18.79	15.36	14.61
Return on Investment (ROI) (PBT/Networth)		0.16	0.13	0.16
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.66	2.16	2.22

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	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)	Yes
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	No
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	No

COMPANY BACKGROUND

Subject was incorporated on 8th December 1949. The company is presently engaged in the business of production and sale of agricultural inputs, namely, chemicals and hybrid seeds. The company’s corporate office is located in Mumbai. It has a chemical production unit at Silvassa, hybrid seeds processing and drying units at Hyderabad and breeding stations at Banglore and Hyderabad. During the previous year hybrid seeds processing and drying operations at Bellary and Eluru were shifted to Hyderabad.

FINANCIAL HIGHLIGHTS

During the financial year the Company posted a Profit After Tax (PAT) of Rs. 501.900 Millions for F.Y. 2011-12 compared to PAT of Rs. 428.300 Millions for F.Y. 2010-11. Pre-tax profits are also higher at Rs. 601.400 Millions (previous year Rs. 502.900 Millions). As are aware, during the last financial year, there was a one-time asset impairment charge due to the diminution in the value of assets of the Company’s facility at Eluru, Andhra Pradesh, which resulted in a charge of Rs.121.700 Millions to their expenses. Excluding this restructuring impact, the PBT for the year would have been lower by 4% and the PAT would have been lower by 9%. Earning per share for the year stands at Rs. 29.07(previous year Rs. 24.81).

Net Turnover for the year at Rs. 3679.800 Millions, compared to Rs. 3582.600 Millions for the previous F.Y., grew by 3% primarily driven by a 13% growth in the chemistry business. Sale for corn seeds for F.Y. 2011-12 has remained flat at Rs. 2673.600 Millions. The pressures of increasing costs and competition have had an impact on this year’s lower operating results.

OP ERAT IONAL HIGHLIGHTS

The Company’s seeds’ sales was maintained at almost the same level (Rs. 2693.400 Millions in F.Y. 2010-11 vis-à-vis Rs. 2673.600 Millions in F.Y. 2011-12).

The Company’s Glyphosate sales increased by 13% from Rs. 889.200 Millions in F.Y. 2010-11 to Rs. 1006.200 Millions in F.Y. 2011-12 despite the pricing challenge which continues to exist in the glyphosate business. The Company’s product continues to garner a quality premium. This business has seen healthy growth in volumes of 18% on account of prolonged rains, increasing cost of labor for manual weeding and proactive customer related campaigns.

MANAGEMENT DISCUSSION AND ANALYSIS

OVERVIEW

Agriculture is critical for India. Almost 700 million people depend on it. Strong agricultural growth over a decade or two, will go a long way in eradicating chronic poverty from rural India. Over the five years to 2011-12, the Indian agriculture sector has grown at 3.4% per year on average, (higher average is driven by 7% growth in F.Y. 2010-11) much below the 11th plan target of 4%. 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 the overall agricultural value chain will ensure that farmers receive a better deal and are enabled to improve their lives. Successful farmers and farming are the most important links in India’s quest to eradicate poverty, achieve lasting food security and sustainable land use as well as to contain food prices.

The strategic plan to improve returns from agriculture in India could be thought of in two separate but linked directions – “On-Farm” initiatives and “Off-Farm” initiatives. On- Farm refers to all initiatives related to improving the farmers yield from his patch of land – enabling him to have higher quantity and better quality of produce. Off-Farm, on the other hand, refers to all initiatives that help the farmer “preserve” that yield, reduce wastage and get a higher “price” for his produce. In India both these directions are important and are ripe for policy interventions.

One of the most important ways in which On-Farm productivity and quality can be improved, is to enable the farmer to access the latest agricultural technology – to help them produce more and better food, sustainably and at lower per-acre costs. This includes access to better seeds, crop protection measures, fertilizers, and agronomic methods. It also includes seed varieties and agronomic traits developed using modern breeding methods and plant biotechnology. These inputs, along with training and integrated crop management, can boost agriculture productivity in a sustainable manner and could enable India to become a major agricultural power in the world.

INDUSTRY STRUCTURE

Growing More Food and Plant Biotechnology

By 2050 the world’s farmers will need to produce 70 percent more food on less land than ever before. Plant biotechnology is being used to create higher-yielding varieties that can help farmers meet this goal. During the period 1996 to 2010, biotech traits have added 97.5 million tonnes of soybeans, 159.4 million tonnes of corn, and 6.1 million tonnes of canola to global production levels. This adds up to an additional 263 million tonnes of food crops produced on the same amount of land.

In 2011, 16.7 million farmers worldwide grew 160 million hectares of biotech crops, 90 percent of which were small holder farmers in 19 developing countries, according to the International Service for the Acquisition of Agri-Biotech Applications’ (ISAAA) new Global Status of Biotech Crops report.

These record highs for biotech adoption demonstrate that, given the opportunity, farmers recognize the advantages plant science technologies can offer.

With the majority of biotech crops being grown by small holder farmers in developing countries, plant biotechnology is playing a significant role in helping small-scale farmers improve their incomes and quality of life while employing sustainable agricultural practices.

“For the world’s farmers, biotech crops offer the opportunity to produce more food and improve incomes while being good stewards of their land,” according to Denise Dewar, Executive Director for Plant Biotechnology at CropLife International. “For over a decade, farmers with access to plant biotechnology have enjoyed reduced input costs, increased crop productivity and higher incomes, which has led to improvements in the home, and for families and communities.”

With more than 90 percent of farmers re-purchasing biotech seed year after year – coupled with the increase in global biotech crop acreage – it’s obvious that farmers recognize multiple benefits from plant biotechnology. Global biotech crop acreage is at a record high and governments worldwide have continued to support the benefits their farmers, the environment, and larger populations receive from plant biotechnology.

Agrochemicals have become an integral part of the development process of agriculture and the use is expected to increase manifold in India. Indian agriculture is still very dependent on traditional practices and its insecticides, pesticides and herbicides usage is still very low. Also globally, herbicides represent the largest group within agrochemicals, while in India this is still not the case. Chemical weed control is slowly becoming one of the more important and reliable measures in weed management systems in India.

In India and globally, glyphosate is the most significant herbicide product and is preferred by farmers because it is relatively safe and very effective. This market in India is extremely competitive with 150+ manufacturers and many more brands being available. Most of these players import their requirement of the intermediate product from countries such as China. Unfortunately many of these products are also of questionable and inconsistent quality. This market is also characterized by extreme price competition. Monsanto has a strong market position based on its quality and brand reputation.

Population (2011 census) and required subsidized food grains

Rural			Urban	Total Population	Food grains (Tonnes per month)	Food Grains (Million Tonnes Per Annum)
	833087662		377105760	1210193422
46%	383220325	28%	105589613	488809937
Food @7kg*	2682542272		739127290	3421669561	3421670	41.1
Population 75%	624815747	50%	188552880	813368627
Food @3kg+	724786266		248889802	973676068	973676	11.7

*per person per month @ Rs. 3, 2 and 1 per kg;

+per person @ half of MSP

Food Security Act: After a long history of widespread malnutrition and starvation for many, the people of India will soon have, for the first time, the constitutional right to food. As has been proposed, 46 percent rural and 28 percent urban poor will have the right to 7 Kg per person per month of food grain at the rate of Rs. 3, Rs. 2 and Re.1 per kg rice, wheat and coarse cereals, respectively. The rest of the targeted rural and urban poor will get 3 kg of food grains every month at half of its Minimum Support Price (MSP). This policy intervention means that Indian famers will need to produce even greater quantities of food at lower costs per unit – access to the right seeds and technology can help. The Company is proud to be a part of this effort to enable their farmers progress and thus becoming India’s pride.

OPERATIONAL REVIEW

Dekalb® Hybrid Maize Seeds

Farm labour shortage, changing weather patterns, and growing demand for animal protein will drive future growth of maize in India for the Company. As less than a third of India’s corn currently comes from hybrid seeds, the Company sees strong growth potential in this market. Maize is cultivated on ~7 - 8 million hectares in India, with significant scope to increase penetration of higher-yielding hybrid seeds, from current levels of less than 50%.

The Company’s maize seeds are sold under the Dekalb® brand name and are well established within the farming community.

The Company, during the year under review, launched two new hybrids (9106 and 8101) which helped grow volumes in the Northern region and in the high volume markets of Central and South India. DK9081, the highest yielding corn seeds sold by the Company, has done exceedingly well and additional quantities were placed based on farmers’ response and overall momentum for the hybrid.

One of the phenomena observed during the year was that certain agricultural commodities such as Cotton and pulses enjoyed high prices and thus were more attractive to farmers, resulting in significant acres shifting to Cotton and pulses in Karnataka, AP and Maharashtra amongst other States.

During the year, various initiatives such as Radio shows, channel schemes and other attractive farmers’ schemes, helped to create a demand for the Company’s key hybrids. Dr. Dekalb Farm Care (their Service Platform and Direct-To-Farmer Connect initiative) was extended to more than 20,000 farmers across Bihar to help them choose the right hybrid, manage their crops better and address their queries – thus creating long term brand goodwill and more importantly – lasting value to the farmers.

This platform has also helped us in seeking pre-season purchase intent and in-season progress information on hybrid preferences in real time.

The competition has also been very aggressive through their own field activities and has exerted huge pressure through a massive stock push and lucrative channel schemes. They are also introducing new hybrids in the Bihar market. They are monitoring competitive activities closely and will take appropriate action as needed.

KHARIF SEASON OVERVIEW

• The rainfall pattern of deficient rain and then concentrated rain in patches has resulted in increased disease pressure in many parts of Karnataka and Maharashtra.

• The savings from consolidation of manufacturing operations continue to accrue which has helped keep operating expenses down and inspite of inflationary trends, steep fuel prices increases and devaluation of Indian currency; the operating expenses have been maintained at a similar level as compared to previous year.

• Overall judicious placement, efficient tracking of secondary sales and managing the expected returns, has resulted in better operational and business efficiencies.

• Company’s hybrid corn seed products have done very well in many important markets and have grown by more than 17% in key markets like Uttar Pradesh, Andhra Pradesh and Punjab. In Gujarat, the volumes have doubled in one year.

• The Company sold over 4 million litres of Roundup® during the Kharif Season.

• The launch of two new hybrids (9106 and 8101) helped grow volumes in the North Region and in the high volume markets of Central and South India. The growth in seed volume for Karnataka was around 13% over the previous Kharif season.

RABI SEASON OVERVIEW

• Key Rabi markets of Bihar, Bangladesh, Andhra Pradesh, Assam, West Bengal and even parts of UP have performed very well.

• For the development of Rabi market in UP, the Company entered into a Public-Private Partnership with the State Government of Uttar Pradesh.

ROUNDUP® (HERBICIDE)

Roundup® is the brand name of a systemic, broad-spectrum herbicide produced by the Company and contains the active ingredient glyphosate.

The Company has maintained the price of Roundup® inspite of the pricing headwinds in Roundup®. During the year, there were dry spells in many geographies, including Maharashtra and Karnataka, due to which the weed pressure was low and hence lower demand for Glyphosate.

The Rabi season was drier than normal in some key geographies which resulted in lower weed pressure on the farmlands and hence lower spraying of herbicides. Thus, Roundup® sales has broadly remained at around 1.4 million litres in Rabi.

FINANCIAL REVIEW

During the year, turnover is Rs. 3679.800 Millions which is 3% higher than the previous year. The sale for chemistry is Rs. 1006.200 Millions vs. Rs. 889.200 Millions for previous year which is an increase of 13%. The volume reported in chemistry business is 5648 KL which is 18% increase over previous year. The rise in farm labour cost and continuous decrease in availability of farm labour has helped the volume growth in their chemistry business. Sale for corn seeds for F.Y. 2011-12 (Rs. 2673.600 Millions) has stayed at almost the same level as the last financial year (Rs. 2693.400 Millions). In spite of a lean Kharif season, a bumper Rabi season boosted the corn performance.

The operating expenses (including Depreciation and Employee Expenses) for F.Y. 2011-12 is Rs. 1648.100 Millions which is almost at same level inspite of severe inflationary pressures seen during the year. Interest expenses have gone up from Rs. 2.800 Millions to Rs. 12.800 Millions owing to a provision made for interest on prior year income taxes.

The other incomes for F.Y. 2011-12 are Rs. 151.500 Millions vis-à-vis Rs. 83.500 Millions during the last year. This was mainly due to liquidation of excess inventory which got converted into higher cash balance.

Profit before tax for F.Y. 2011-12 is Rs.601.400 Millions, up from the profit before tax for the last financial year i.e. Rs.502.900 Millions. During the last financial year, there was a one-time asset impairment charge of Rs. 121.700 Millions due to the diminution in the value of assets of the Company’s facility at Eluru, Andhra Pradesh.

Profit after tax for the year was Rs. 501.900 Millions vis-à-vis Rs. 428.300 Millions in F.Y. 2010-11.

These results have been delivered despite the intense competitive pressures on Roundup® Glyphosate herbicides as well as on maize seeds, and also severe inflationary pressures.

OUTLOOK

There can be no advancement of the Indian economy into the league of the fastest growing nations unless Indian agriculture becomes a part of the growth. The key to satisfactory growth in Indian agriculture now lies more in improving productivity than in increasing acreage or irrigation cover of arable land. While efforts are required for continuing agricultural research to develop high-yielding, pest-resistant and all weather varieties, there are some critical issues leading to poor productivity.

Technological interventions and deployment can be a catalyst and is one of the powerful solutions to help farmers feed the world’s growing population – e.g. reduced pesticide usage, improved lives – in short, made farming sustainable. Sustainable agriculture requires focus on increasing agricultural productivity and improving the social well-being of resource-poor farmers; technological interventions, and finally, protecting and even improving the environment through better utilization of input resources.

They expect that the corn seed market would continue to grow in the current year as well. This growth will primarily come through conversion to hybrids by farmers across the country. The Company is working towards improving its share in the market through various initiatives enumerated earlier.

Farm labour availability and cost continue to pose challenges to the growers in India. This, along with improving awareness about chemical weeding usage in newer crops and geographies as well as non agricultural usage, augurs well for the herbicide industry and the Company. As shared earlier, the Glyphosate market is also expected to grow in double digits in the medium term.

The Company, through its continuous breeding research efforts, new product offerings, effective sales and marketing strategies, a strong brand, far reaching distribution infrastructure and investments in people development, is hopeful of maintaining its performance going forward.

Roundup® remains the brand of choice when it comes to controlling weeds to the roots for a longer span of time not just in tea plantations and non cropped areas but also for general weed control in railways, industries, around roads and highways etc. The Indian Railways has used Roundup® at Hazrat Nizamuddin station (Delhi). Roundup® was sprayed on the railway tracks resulting in successful elimination of weeds. The weed-free rail tracks testify Roundup®’s long-lasting effects. The Coimbatore Municipal Corporation, in association with Tamil Nadu Agricultural University, has launched a program called ‘Clean Coimbatore’. The core idea was to eradicate or control urban proliferation of weeds to keep the city clean and free from parthenium allergy (a skin allergy caused because of the ‘parthenium weed’).

FIXED ASSETS

· Intellectual Property

· Software

· Freehold land

· Buildings

· Leasehold improvements

· Plant and machinery

· Furniture, fixtures and office equipment

· Vehicles

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2012

(Rs. in millions)

Sr. No.	Particular	Quarter Ended		Nine Months Ended
		31.12.2012 (Unaudited)	30.09.2012 (Unaudited)	31.12.2012 (Unaudited)
1.	Income from Operations
	Net Sales	1117.500	559.500	3675.000
	Other Operating Income	3.400	10.100	59.200
	Net Sales/Income from Operations	1120.900	569.600	3734.200
2.	Expenditure
	Cost of Material Consumed	420.000	426.300	1286.800
	Purchase of Stock In Trade	3.600	1.700	5.300
	Change in Inventories of Finished Goods, Work-In-Progress and Stock In Trade	(27.600)	(111.400)	502.800
	Employee Benefits Expenses	122.400	107.00	335.800
	Depreciation and Amortization Expenses	28.900	28.100	80.600
	Other Expenses	327.200	266.400	923.200
	f) Total	874.500	718.100	3134.500
3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	246.400	(148.500)	599.700
4.	Other Income	46.300	39.000	123.000
5.	Profit Before Interest and Exceptional Items (3+4)	292.700	(109.500)	722.700
6.	Interest	0.900	0.900	2.600
7.	Profit After Interest but before Exceptional Items (5-6)	291.800	(110.400)	720.100
8.	Exceptional Items	--	--	--
9.	Profit from Ordinary Activities before Tax (7+8)	291.800	(110.400)	720.100
10.	Tax Expense	(1.000)	10.700	62.100
11.	Net Profit from Ordinary Activities after Tax (9-10)	292.800	(121.100)	658.000
12.	Extraordinary Item (net of expense)	--	--	--
13.	Net Profit for the period (11-12)	292.800	(121.100)	658.000
14.	Paid-up Equity Share Capital (Face Value of Rs.10/- Each)	172.600	172.600	172.600
15.	Reserves Excluding Revaluation Reserve	--	--	--
16.	Basic and Diluted Earning Per Share (EPS)	16.97	(7.02)	38.12
17.	Public Shareholding
	-Number of Shares	4808704	4808704	4808704
	- Percentage of Shareholding	27.86	27.86	27.86
18.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	--	--	--
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	--	--	--
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	--	--	--
	b) Non Encumbered
	- Number of Shares	12454044	12454044	12454044
	- 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)	72.14	72.14	72.14

Particulars	3 Months ended on 31.12.2012
Pending at the beginning of the quarter	--
Received during the quarter	13
Disposed of during the quarter	13
Remaining unresolved at the end of the quarter	--

NOTES

1. The Company's performance is affected having regard to the mix of products sold in respective quarters due to seasonal nature of the business.

2. The Company has one primary business segment namely "Agriculture Inputs".

3. The financial results for the quarter and nine months ended December 31, 2012 have been approved by the Board of Directors at its meeting held on January 28 , 2013 and have been subjected to a Limited Review by the Statutory Auditors of the Company.

4. Previous period's/Year's figures have been re-grouped wherever necessary to correspond with the current period's figures.

WEBSITE DETAILS

NEWS

Monsanto Company and DuPont Company (DD), the world’s largest seed companies, agreed to drop their respective antitrust and soybean patent lawsuits and enter into licensing agreements for making genetically modified crops.

Monsanto will ask the St. Louis federal court to dismiss its claim that DuPont infringed patents for Roundup Ready soybeans, setting aside a $1 billion jury award, the companies said yesterday in a joint statement. DuPont will ask the court to dismiss its claim that Monsanto uses monopoly power to stifle innovation.

The agreement follows recent legal victories by St. Louis- based Monsanto over its smaller rival in the $34 billion seed market. A U.S. jury in August ordered DuPont to pay Monsanto for infringing seed patents, and the U.S. Justice Department and state attorneys general dropped probes late last year into industry antitrust concerns raised by DuPont.

“We have spent a lot of time and a lot of energy fighting each other,” Scott Partridge, a Monsanto vice president, said in a telephone interview yesterday. “There came a point after a bunch of confrontations where their interests and our interests aligned.”

In the agreements announced yesterday, DuPont’s Pioneer seed unit will license the newest versions of Monsanto soybeans engineered to tolerate Roundup and another weed killer and make a series of royalty payments to Monsanto totaling $1.75 billion through 2023, the companies said.

Monsanto gains access to DuPont patents for crop-disease resistance and a corn-defoliation technique.

Royalty payments to Monsanto will be $346 million from 2014 to 2015, $456 million in the next two years, and per-unit payments starting in 2018 that will total at least $950 million, DuPont said in a filing with the U.S. Securities and Exchange Commission.

The cases are Monsanto Company (MON) v. E.I. duPont de Nemours and Company, 09-cv-686, U.S. District Court, Eastern District of Missouri (St. Louis) and Pioneer Hi-Bred International Inc. v. Monsanto Co., 11-cv-497, U.S. District Court, Southern District of Iowa (Des Moines).

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 54.38
UK Pound	1	Rs. 82.32
Euro	1	Rs. 69.54

INFORMATION DETAILS

Report Prepared by :

DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		63

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.