MIRA INFORM REPORT

Report Date :

16.12.2014

IDENTIFICATION DETAILS

Name :	NAGARJUNA AGRICHEM LIMITED
Registered Office :	Plot No. 12-A, “C” Block, Lakshmi Towers, No. 8-2-248/1/7/78, Nagarjuna Hills, Panjagutta, Hyderabad-500082, Telangana
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	11.11.1986
Com. Reg. No.:	36-016607
Capital Investment / Paid-up Capital :	Rs. 155.912 millions
CIN No.: [Company Identification No.]	L24219TG1986PLC016607
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	HYDN00523F
PAN No.: [Permanent Account No.]	AAACN6932H
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	The Company is in the business of Crop Protection and manufactures both Technical (Active Ingredient -AI) and Formulations. It manufactures all kinds of Pesticides, Insecticides, Acaricides, Herbicides, Fungicides and other Plant Growth Chemicals.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 4000000
Status :	Satisfactory
Payment Behaviour :	Slow but Correct
Litigation :	Exist
Comments :	Subject is an established company having satisfactory track record. The company has incurred loss from its operational activities during the financial year 2014. However, the rating takes into consideration established position of company in pesticide business marked by diversified products range catering to both the domestic and international market and sound general financial profile. Trade relations are fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealings at usual trade terms and condition.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facilities = BBB
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	06.02.2014

Rating Agency Name	CARE
Rating	Short Term Bank Facilities = A3
Rating Explanation	Moderate degree of safety and high credit risk.
Date	06.02.2014

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 31-03-2014.

INFORMATION DENIED

Management Non-Co-operative (91-8548-240010)

LOCATIONS

Registered / Corporate Office :	Plot No. 12-A, C Block, Lakshmi Towers, No. 8-2-248/1/7/78, Nagarjuna Hills, Panjagutta, Hyderabad-500082, Andhra Pradesh, India
Tel. No.:	91-40-23358217/ 23350235/ 23357442/ 33605123/24/25/26/27
Fax No.:	91-40-23350234/ 23358062
E-Mail :	suresh@nagarjunaagrichem.com info@nagarjunaagrichem.com aspardhasaradhi@nagarjunagroup.com jagannadharao@nagarjunaagrichem.com (for overseas requirement) manikkam.natarajan@nagarjunaagrichem.com (for domestic requirement) himadribhadra@nagarjunaagrichem.com bsaha@nagarjunaagrichem.com sksubudhi@nagarjunaagrichem.com
Website :	http://www.nagarjunaagrichem.com
Factory 1 / R&D Centre :	Nandigaon (village) Kothur (Mandal), Mahabub Nagar – 509223, Telangana, India
Tel. No.:	91-8548-240010 / 240483
Factory 2 :	Arinama Akkivalasa Etcherla Mandal Srikakulam, Andhra Pradesh, India
Factory 3 :	Ethakota P.O, Ravulapalem East Godavari District Andhra Pradesh, India
Windmill :	Located at · Tirunelveli, Tamilnadu, India

DIRECTORS

As on 07.08.2013

Name :	Dr. Nitish K. Sen Gupta
Designation :	Chairman
Name :	Mr. V. Vijay Shankar
Designation :	Managing Director
Date of Birth/ Age:	17.11.1956
Qualifications :	Chartered Accountant
Experience:	31 Years
Date of Commencement of employment:	11.05.2011
Details of last employment:	Zuari Industries Limited
Name :	Mr. K. S. Raju
Designation :	Director
Name :	Mr. K. Lakshmi Raju
Designation :	Director
Name :	Mr. Raghavender Mateti
Designation :	Additional Director
Name :	Mr. D. Ranga Raju
Designation :	Director
Name :	Mr. K Rghu Raman
Designation :	Director
Name :	Mr. Sudhakar Kudva
Designation :	Director
Name :	Mr. N. Vijayaraghavan
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Amit Taparia
Designation :	Senior General Manager [Procurement and SCM]
Name :	Mr. R.K.S. Prasad
Designation :	Chief Finance Officer
Name :	Mr. Manikkam Natarajan
Designation :	Executive Vice President [Marketing and Sales]
Name :	Mr. G. Jagannadha Rao
Designation :	Vice President [Exports]
Name :	Mr. Harish Chandra Bijilwan
Designation :	Vice President [Business Tech and Outsourcing]
Name :	Mr. K.G. Vadivel
Designation :	Vice President – Manufacturing (SKLM)
Name :	Mr. S.V.S. Rama Raju
Designation :	President [Operations]
Name :	J.Satyanarayana Das
Designation :	Vice President - Manufacturing (Ethakota)
Name :	S.Chandra Sekhar
Designation :	Vice President - Corporate HPD
Name :	Satish Kumar Subudhi
Designation :	Company Secretary and Head-Legal
Name :	Dr. Venkatesan Subbusamy
Designation :	General Manager - Registration & Regulatory

SHAREHOLDING PATTERN

As on 30.09.2014

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3018360	1.94
Bodies Corporate	113623500	72.88
Sub Total	116641860	74.81
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	116641860	74.81
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	7569500	4.85
Individuals
Individual shareholders holding nominal share capital up to Rs. 1 lakh	13049200	8.37
Individual shareholders holding nominal share capital in excess of Rs. 1 lakh	18017577	11.56
Any Others (Specify)	633371	0.41
Non Resident Indians	467870	0.30
Clearing Members	147968	0.09
Directors & their Relatives & Friends	17533	0.01
Sub Total	39269648	25.19
Total Public shareholding (B)	39269648	25.19
Total (A)+(B)	155911508	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	155911508	100.00

BUSINESS DETAILS

Line of Business :	The Company is in the business of Crop Protection and manufactures both Technical (Active Ingredient -AI) and Formulations. It manufactures all kinds of Pesticides, Insecticides, Acaricides, Herbicides, Fungicides and other Plant Growth Chemicals.
Products :	Not Available
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	Not Available
Purchasing :	Not Available

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

Information declined by the management.

Bankers :

• State Bank of India
• HDFC Bank Limited
• IDBI Bank Limited
• New India Co-operative Bank Limited

Facilities :

Secured Loans	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
Long Term Borrowings
Term Loan From Banks
-Rupee Loan	359.164	298.663
Short Term Borrowings
Loans Repayable on Demand from Banks*	1556.907	1214.466
Total	1916.071	1513.129

Notes :

Long Term Borrowing

a) The Term Loans (except term loan for Wind energy project) availed from IDBI Bank Limited and HDFC Bank Limited are secured by way of equitable mortgage by deposit of title deeds of the Company’s immovable properties both present and future and by way of first charge of all fixed assets of the Company as a primary security and hypothecation of movable properties of the Company ranking pari passu and borrowings from IDBI Bank Ltd are further secured by a second charge on the current assets of the Company consisting of stock in trade, book debts, stores and spares.

b) Term Loan availed from State Bank of India are secured by way of first charge on fixed assets of the Company and First charge on entire current assets to be shared with other working capital lenders under Multiple Banking Arrangement and second charge on fixed assets of the Company along with other working capital lenders.

c) Working Capital Term Loans availed from New India Co-operative Bank Ltd are secured by way of first charge on fixed assets of the Company including Plant & Machinery and other movable assets on pari passu basis with other term loan lenders.

d) Working capital loans from banks are personally guaranteed by Sri K.S. Raju, a Director of the Company.

e) Terms of repayments are given below:

Bank / Institution	Interest %	Balance as on 31.03.2014 Rs. In Million	Number of Instalments	Frequency	Commencing from
IDBI Bank Ltd	BBR+ 4.25	833.33	54	Monthly	Jan-11
State Bank of India	BASE+ 3.75	1,671.04	12	Quarterly	Jan-13
State Bank of India	BASE+ 3.75	1,009.42	1	Yearly	Feb-14
New-India Co-operative Bank Ltd.	11.00%	488.23	5	Yearly	Mar-11
New-India Co-operative Bank Ltd.	13.00%	758.28	4	Half Yearly	Sep-12
New-India Co-operative Bank Ltd.	12.25%	505.21	4	Half Yearly	May-13
New-India Co-operative Bank Ltd.	12.50%	851.41	4	Half Yearly	Mar-14
Total		6,116.92

Short Term Borrowing:

Loans Repayable on Demand from Banks (along with Non Fund Based Limits of Letters of Credit and Bank Guarantees) from State Bank of India, IDBI Bank Ltd & HDFC Bank Ltd are secured by way of hypothecation of current assets comprising stock in trade, book debts and stores and spares, both present and future. The aforesaid facilities are further secured by second charge on the Company’s immovable and hypothecation of movable properties, both present and future, ranking pari passu with the term loans.

Auditors :
Name :	M. Bhaskara Rao and Company Chartered Accountants
Address :	5-D, Kautilya, Somajiguda, Hyderabad – 500082, Telangana, India
Cost Auditors:
Name :	K. Narasimha Murthy and Company Cost Accountants
Address :	3-6-365, 104 & 105, Pavani Estate, Himayathnagar - 500029, Telangana, India
Holding Company:	KLR Products Limited (Formerly GSR Products Limited)
Subsidiaries ::	Nagarjuna Agrichem (Australia) Pty. Limited, Australia LR Research Laboratories Private Limited
Associates :	Nasense Labs Private Limited (Formerly USP Organics Private Limited)
Enterprises over which Key Managerial Personnel are able to exercise significant Influence :	Indo International Fertilizers Limited Shubho-Tech Private Limited
Enterprises under the significant influence of persons having significant influence over this company :	Nagarjuna Fertilizers and Chemicals Limited Bhagiradha Chemicals and Industries Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
155911508	Equity Shares	Rs.1/- each	Rs.155.912 Millions

Rights, Preferences and Restrictions attached to Equity Shares

The Company has only one class of Equity Shares having a par value of Rs.1/- per share. Each holder of Equity Shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the shareholders.

Shares in the Company held by each Shareholders holding more than 5%.

Name of the Shareholders	% of Share Holding	31st March 2014
		No. of shares	Rs. In millions
KLR Products Limited, Holding Company	72.88	113623500	113.624

FINANCIAL DATA

[All figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	155.912	148.982	148.982
(b) Reserves & Surplus	1578.944	1798.031	1924.691
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	1734.856	1947.013	2073.673
(3) Non-Current Liabilities
(a) long-term borrowings	382.243	330.690	457.560
(b) Deferred tax liabilities (Net)	193.447	215.131	287.800
(c) Other long term liabilities	115.057	101.227	105.891
(d) long-term provisions	14.117	10.442	6.816
Total Non-current Liabilities (3)	704.864	657.490	858.067
(4) Current Liabilities
(a) Short term borrowings	1556.907	1214.466	1502.975
(b) Trade payables	1218.485	1265.424	1371.534
(c) Other current liabilities	570.070	473.270	471.056
(d) Short-term provisions	413.765	442.240	30.839
Total Current Liabilities (4)	3759.227	3395.400	3376.404
TOTAL	6198.947	5999.903	6308.144
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1801.886	1705.090	1914.038
(ii) Intangible Assets	21.737	16.394	2.526
(iii) Capital work-in-progress	164.359	109.185	161.204
(iv) Intangible assets under development	15.453	0.000	0.000
(b) Non-current Investments	82.988	35.605	35.605
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	123.082	135.635	166.494
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	2209.505	2001.909	2279.867
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1763.050	1726.145	1642.002
(c) Trade receivables	1600.663	1641.150	1948.596
(d) Cash and cash equivalents	169.464	224.121	250.739
(e) Short-term loans and advances	254.687	210.891	182.473
(f) Other current assets	201.578	195.687	4.467
Total Current Assets	3989.442	3997.994	4028.277
TOTAL	6198.947	5999.903	6308.144

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	6358.437	6005.772	6430.650
	Other Income	193.350	181.986	38.607
	TOTAL	6551.787	6187.758	6469.257
Less	EXPENSES
	Cost of Materials Consumed	3877.849	3865.725	4168.440
	Purchases of Stock-in-Trade	580.891	543.861	464.325
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	141.782	23.810	-303.480
	Employees benefits expense	434.048	397.115	346.332
	Other expenses	1219.210	996.642	1049.312
	TOTAL	6253.780	5827.153	5724.929
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	298.007	360.605	744.328
Less	FINANCIAL EXPENSES	279.969	307.082	332.332
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	18.038	53.523	411.996
Less/ Add	DEPRECIATION/ AMORTISATION	218.823	252.852	269.574
Less	EXCEPTIONAL ITEMS	33.056	0.000	0.000
	PROFIT/ (LOSS) BEFORE TAX	(233.841)	(199.329)	142.422
Less	TAX	(21.684)	(72.669)	69.305
	PROFIT/ (LOSS) AFTER TAX	(212.157)	(126.660)	73.117
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	920.486	1200.929	1968.607
	TOTAL EARNINGS	920.486	1200.929	1968.607
	IMPORTS
	Raw Materials	1329.637	1126.412	1,364.01
	Capital Goods	36.002	1.429	19.904
	TOTAL IMPORTS	1365.639	1127.841	1383.909
	Earnings / (Loss) Per Share (Rs.)	(1.36)	(0.81)	0.47

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	(3.33)	(2.10)	0.01
Operating Profit Margin (PBDIT/Sales)	(%)	4.68	6.00	11.57
Return on Total Assets (PBT/Total Assets}	(%)	(3.94)	(3.40)	2.33
Return on Investment (ROI) (PBT/Networth)		(0.13)	(0.10)	0.07
Debt Equity Ratio (Total Liability/Networth)		1.12	0.79	0.95
Current Ratio (Current Asset/Current Liability)		1.06	1.18	1.19

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	148.982	148.982	155.912
Reserves & Surplus	1924.691	1798.031	1578.944
Net worth	2073.673	1947.013	1734.856
long-term borrowings	457.560	330.690	382.243
Short term borrowings	1502.975	1214.466	1556.907
Total borrowings	1960.535	1545.156	1939.150
Debt/Equity ratio	0.945	0.794	1.118

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	6430.650	6005.772	6358.437
		(6.607)	5.872

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	6430.650	6005.772	6358.437
Profit	73.117	(126.660)	(212.157)
	1.14%	(2.11%)	(3.34%)

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)	No
21]	Market information	--------------------
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--------------------
26]	Buyer visit details	--------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
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

LITIGATION DETAILS

CASE STATUS INFORMATION

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

PETITIONER THE COMMISSIONER OF CENTRAL EXCISE AND CUSTOMS, VISAKHAPATNAM			RESPONDENT VS NAGARJUNA AGRICHEM LIMITED
PET. ADV.:	GOPALAKRISHNA GOKHALEY		Resp. Adv.:	PRABHAKARA SASTRY
Subject:	CENTRAL EXSICE APPEAL		District :	VISAKHAPATNAM
Filing Date :	02.03.2010	Posting Stage: FOR ADMISSION
Registration date :	27.12.2011	Listing Date: 02.11.2012		Status: ADMIT
Honorable Judges:	M.S. RAMCHANDRA RAO		GODA RAGHURAM

UNSECURED LOANS

Particulars	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
Long Term Borrowings
Deferred Payment Liabilities	23.079	32.027
Total	23.079	32.027

PERFORMANCE:

The dampening effect of the fire incident of June 2012 in Block-5 of Srikakulam plant continued to have an impact on the performance for the year. The Company has reported revenue of 65.517 Million for the year 2013-14, as against 61.877 Million recorded in 2012-13, registering a growth of 6 % despite the non-availability of Block 5 of Srikakulam. The growth in the Company’s revenues has been mainly due to improved performance of the Domestic Formulation Sales. The EBIT and Cash Profit stood at 0.792 Million and (-) 0.150 Million during the year compared to 1.077 Million and 0.535 Million respectively in the previous year.

PLANT OPERATIONS:

The Ethakota plant was able to meet the requirements of the Domestic Formulation Market. The higher demand could have been met but for raw material supply constraints, which was an Industry wide phenomenon. It has achieved a production of 20,298 MT/KL in the year under review, comparing to the previous year record production of 22,327 MT/KL. Your Company continued to focus on streamlining and enhancing the production capabilities by adding new lines and other infrastructure facilities, debottlenecking, quality control and enhanced productivity. Although the efforts taken in the past have yielded the desired results, however the factors like rising input costs, raw material supply constraints, erratic & irregular power supply from Electricity Board, manpower shortage issues etc. continue to be causes of concerns.

DOMESTIC & EXPORT MARKETS:

The monsoon rains were good as well as wide spread in 2013. Most parts of the Country barring North East received normal rains in the first half of the year under review. This has a positive impact on various crop acreages. However, the continued rain in the second half of the year and impact of Phailin and Helen cyclones have created flood like situation in most of the south eastern states, causing damage to various crops mainly the standing kharif crops. Raw material supplies were a constraint faced by the Industry as a whole and the Company has tried to meet this challenge by changes in the product mix, crop mix and procurement planning.

INDUSTRY OVERVIEW:

India is one of the fastest developing countries. Though Agriculture is the primary source of livelihood for more than 50% its population directly and indirectly, its contribution to the GDP is below 15%. Growing populations, shrinking farmland, scarcity of water continue to increase pressure on improving farm productivity. In this connection, pesticides plays an important role to the farmer in trying to minimize the loss due to insects, weeds and diseases, given that about 35 to 45 % crop production is lost on this account. The Government has raised the Minimum Support Price (MSPs) of crops in the range of 30% to 91% in the last five years. This hike has been a significant driver of pesticide use, as farmers realize the cost of wastage due to pest attacks or plant diseases. The shortage of agricultural labor further increased the Agro-Chemical usage in the form of herbicides. Food shortages, increasing food prices and growing concern for food security have underlined the importance of food crop farming. Agro-Chemicals play an important role in farming and food security of a densely populated country like India. There is huge scope to scale up the pesticide market and this makes optimistic future for the Indian Agro-Chemical Industry.

The pesticides sector has staged a sharp rebound in 2013-14 on good monsoon and currently the sector is worth about 30000.000 Million, including exports. The crop protection market has experienced strong growth in the past and is expected to grow further at approximately 12% p.a. to reach $ 6.8 billion by FY-2017. Among the agrochemicals, insecticides have dominated consumption pattern in India. Cotton, rice, wheat, soybean, pulses, plantation crops, fruits and vegetables are the major consumers of agrochemicals.

OUTLOOK:

World Agro-Chemical market has witnessed an increase in the consumption of Agro-Chemicals especially in crops like rice, soybean, wheat, plantations, vegetables, horticulture and pulses. This growth is mainly driven by the increase in global population which is increasing the food demand and, declining availability of arable land and agrochemical use in bio-fuel production. However, the revenue may become subdued by market maturity and a tough pricing environment. In established markets such as Western Europe and North America, growth is expected to be below average in the years to come as commercial outfits and consumers try to restrict unnecessary pesticide use. Japanese market growth will also be quite slow. Asia Pacific is expected to see strong growth, with above average agricultural growth in Thailand, Indonesia and China fuelling crop-protection chemical demand. India is also fast introducing pesticide usage in the newer areas, where traditionally it has been absent.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED 30^TH SEPTEMBER, 2014

(Rs. In millions)

PARTICULARS	Quarter Ended 30.09.2014	Quarter Ended 30.06.2014	Half Year Ended 30.09.2014
PART - I	(Unaudited)	(Unaudited)	(Unaudited)
Income from Operations
Net sales / income from operations (Net of excise duty)	2648.200	1636.300	4284.500
Other Operating Income	28.300	29.400	57.700
Total income from operations (net)	2676.500	1665.700	4342.200
Expenses
Cost of Materials Consumed	1630.200	1321.100	2951.300
Purchases of Stock in Trade	197.300	131.900	329.200
Changes in inventories of finished goods, WIP and Stock-in-trade	126.900	(436.100)	(309.200)
Employee Benefit Expenses	125.100	97.500	222.600
Depreciation and Amortization expenses	63.400	66.700	130.100
Other Expenses	437.800	428.300	866.100
Total Expenses	2580.700	1609.400	4190.100
Profit / (Loss) from Operations before other Income and Financial Costs and Exceptional Items	95.800	56.300	152.100
Other Income	30.200	32.400	62.600
Profit / (Loss) from Ordinary Activities before Finance Costs and Exceptional Items	126.000	88.700	214.700
Finance Costs	84.200	84.000	168.200
Profit / (Loss) from Ordinary Activities After Finance Costs and Exceptional Items	41.800	4.700	46.500
Exceptional items	---	---	---
Profit/(Loss) from ordinary activities before tax	41.800	4.700	46.500
Tax expense	20.800	2.400	23.200
Net Profit/(Loss) from ordinary activities after tax	21.000	2.300	23.300
Extraordinary items	---	---	---
Net Profit / (Loss) for the period	21.000	2.300	23.300
Share of profit /(Loss) of Associates	---	---	---
Minority Interest	---	---	---
Net Profit /(Loss) after Taxes, Minority Interest and Share of Profit /(Loss) of Associates	21.000	2.300	23.300
Paid-up equity share capital (Face value Rs. 1.00 per share)	155.900	155.900	155.900
Reserves excluding Revaluation Reserve as per balance sheet of previous accounting year	---	---	---
Earnings Per Share (EPS) (Face value of Rs. 1.00 per share)	0.14	0.01	0.15
a) Basic and Diluted EPS before extraordinary items	0.14	0.01	0.15
PART - II
PARTICULARS OF SHARE HOLDING
Public Shareholding
– Number of shares	39269648	39269648	39269648
– Percentage of shareholding	25.19%	25.19%	25.19%
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	116641860	116641860	116641860
- 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)	74.81%	74.81%	74.81%

Particulars	Quarter Ended 30.09.2014
INVESTOR COMPLAINTS (Nos.)
Pending at the beginning of the quarter	Nil
Received during the quarter	5
Disposed of during the quarter	5
Remaining unresolved at the end of the quarter	Nil

STATEMENT OF ASSETS AND LIABILITIES

SOURCES OF FUNDS	30.09.2014 (Rs. In Million)
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	155.900
(b) Reserves & Surplus	1571.900
(c) Money received against share warrants	---
(2) Share Application money pending allotment	---
Total Shareholders’ Funds	1727.800
(3) Non-Current Liabilities
(a) long-term borrowings	201.500
(b) Deferred tax liabilities (Net)	192.700
(c) Other long term liabilities	121.400
(d) long-term provisions	11.600
Total Non-current Liabilities
(4) Current Liabilities
(a) Short term borrowings	1776.300
(b) Trade payables	2208.700
(c) Other current liabilities	723.900
(d) Short-term provisions	720.200
Total Current Liabilities	5429.100
TOTAL	7684.100
II. ASSETS
(1) Non-current assets
(a) Fixed Assets	1931.500
(b) Non-current Investments	100.200
(c) Deferred tax assets (net)	---
(d) Long-term Loan and Advances	114.500
(e) Other Non-current assets	---
Total Non-Current Assets	2146.200
(2) Current assets
(a) Current investments	---
(b) Inventories	2000.600
(c) Trade receivables	2928.400
(d) Cash and cash equivalents	69.100
(e) Short-term loans and advances	336.700
(f) Other current assets	203.100
Total Current Assets	5537.900
	7684.100
TOTAL

Note:

1. The above unaudited standalone Financial Results were reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on 13th November, 2014.

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

3. As the Company’s Business is in Farm Inputs, its nature and performance can be impacted by weather conditions.

4. The Company is primarily engaged in the Farm inputs Business, which in the context of Accounting Standard-17 considered the only significant business segment.

5. All lines in the Block No.5 in Srikakulam Plant are running normally. The provisional claims made with the Insurance Company continue to be under process. The recommendation made by the Regional Claims Committee for an interim on-account payment is under consideration by the appropriate authorities. Necessary adjustments in the accounts and the financial Impact if any in respect of the above will be made on completion of final assessment.

6. The Company has opted to submit quarterly financial results on Standalone basis. The Company’s two subsidiary

Companies are yet to commence the operations.

7. Tax Expense includes current tax and deferred tax.

8. Comparative figures have been re-grouped and recast wherever considered necessary, to make them comparable.

INDEX OF CHARGE:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10533969	25/11/2014	50,000,000.00	New India Co-op Bank Limited	Centralized Credit Department, Temple View - 1,Raheja Township, Malad (E), Mumbai, Maharashtra -  400097, INDIA	C35418094
2	10489985	24/03/2014	100,000,000.00	NEW INDIA CO-OPERATIVE BANK LIMITED	New India Bhavan, Anant Vishram Nagwekar Marg,, Babasaheb Worlikar Chowk, Prabhadevi,, Mumbai, Maharashtra - 400025, INDIA	C03758406
3	10436251	04/08/2014 *	50,000,000.00	New India Co-op Bank Limited	New India Bhavan, Anant Vishram, Nagwekar Marg, Babsaheb Worlikar Chowk,Prabhadevi,, Mumbai, Maharashtra - 400025, INDIA	C19220730
4	10355346	04/08/2014 *	100,000,000.00	New India Co-op Bank Limited	New India Bhavan, Anant Vishram, Nagvekar Marg, Prabhadevi,, Mumbai, Maharashtra - 400025, INDIA	C19220904
5	10210960	04/08/2014 *	240,000,000.00	New India Co-op Bank Limited	New India Bhavan, Anant Vishram, Nagvekar Marg, Prabhadevi,, Mumbai, Maharashtra - 400025, INDIA	C19219641
6	10180224	13/02/2010 *	300,000,000.00	IDBI BANK LTD	5-9-89/1, II FLOOR, CHAPEL ROAD, ABIDS, HYDERABAD, Andhra Pradesh - 500001, INDIA	A79279113
7	10097551	04/08/2014 *	1,350,000,000.00	State Bank of India	CAG Branch, 13039, O Zone, 2nd Floor,, 6-3-669, Punjagutta Main Road, Hyderabad, Telangana - 500082, INDIA	C18912923
8	10023769	20/09/2012 *	600,000,000.00	IDBI Bank Limited	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA	B59848135
9	90263199	29/01/2010 *	1,130,000,000.00	STATE BANK OF INDIA	CAG BRANCH-13039, O ZONE, 2nd FLOOR, #6-3-669, PUNJAGUTTA MAIN ROAD, HYDERABAD, Andhra Pradesh - 500082, INDIA	A78863917
10	90262527	04/08/2014 *	650,000,000.00	HDFC BANK LIMITED	HDFC BANK, HOUSESENAPATI BAPAT MARG,, LOWER PAREL  (W),, MUMBAI, Maharashtra - 400013, INDIA	C17093782

FIXED ASSETS

• Land
• Buildings
• Plant and machinery
• Electrical installations
• Furniture and fixtures
• Office Equipments
• Vehicles
• Computer and Peripherals
• Goodwill
• SAP Upgrade License Fees
• Implementation fee
• Technical Knowhow

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.62.65
UK Pound	1	Rs.98.53
Euro	1	Rs.78.01

INFORMATION DETAILS

Information Gathered by :	GAY
Analysis Done by :	RAS
Report Prepared by :	PNM

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	2
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	---
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavorable 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.