MIRA INFORM REPORT

Report Date :

25.06.2014

IDENTIFICATION DETAILS

Name :	MAHYCO MONSANTO BIOTECH (INDIA) LIMITED
Registered Office :	5^th Floor, Ahura Centre, 96 Mahakali Caves Road, Andheri (East), Mumbai – 400059, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	23.10.1997
Com. Reg. No.:	11-111505
Capital Investment / Paid-up Capital :	Rs.238.000 Millions
CIN No.: [Company Identification No.]	U73100MH1997PLC111505
TAN No.: [Tax Deduction & Collection Account No.]	MUMM12056C
PAN No.: [Permanent Account No.]	AABCM0176B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Promoting, Marketing and Sublicensing Bollgard cotton trait technology, and supporting the sub-licensees through market research and advertising
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

A (60)

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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a joint venture between “Monsanto Holdings Private Limited” and Maharashtra Hybrid Seeds Company Limited”. It is an established company having fine track. The company possesses a conservative financial profile marked by decent networth base and comfortable liquidity characterized by zero leverage along with strain receivable consequently lowering the cash reserve due to high working capital requirements. Management has reported a decent sales volume as well as net profitability during FY13. The ratings also take into consideration the inherent sensitivity of the company’s cash flows to agri-cycles. Further, the poor monsoon can have a major impact on the company’s operations. However, trade relations are fair. Business is active. Payment terms are reported as regular and as per commitments. In view of strong support from its promoters, the subject can be considered for business dealings at usual trade terms and conditions.

NOTES :

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

INDIAN ECONOMIC OVERVIEW

N E W S

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two.While Vemuri went on to lead IGate, Balakrishnan joined politics.

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers wih hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

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.

INFORMATION DENIED

Management Non Co-Operative (91-22-28246450)

LOCATIONS

Registered Office :	5^th Floor, Ahura Centre, 96 Mahakali Caves Road, Andheri (East), Mumbai – 400059, Maharashtra, India
Tel. No.:	91-22-28246450 / 67029851 / 28247244
Fax No.:	91-22-28244707 / 67023361
E-Mail :	mahendra.sharma@mahyco.com gmnadkarni@vsnl.net

DIRECTORS

As on: 30.09.2013

Name :	Mr. Badrinarayan Ramulal Barwale
Designation :	Director
Address :	72-B, Urvashi, Petit Hall, Nepean Sea Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	13.08.1931
Date of Appointment :	23.10.1997
DIN No.:	00001479
Name :	Mr. Rajendra Badrinarayan Barwale
Designation :	Director
Address :	72-B, Urvashi, Petit Hall, Nepean Sea Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	12.12.1955
Date of Appointment :	23.10.1997
DIN No.:	00001678
	Mr. Shyam Sunder Gopilal Agrawal
Designation :	Director
Address :	62, Jolly Maker Apartment No. II, Opp. World Trade Centre, Cuffe Parade, Mumbai – 400 005, Maharashtra, India
Date of Birth/Age :	02.12.1947
Date of Appointment :	23.10.1997
DIN No.:	00001949
Name :	Mr. Richard Gerald Gaudet
Designation :	Director appointed in Casual Vacancy
Address :	2202, Stoneridge Terrace, Chesterfield,
Date of Birth/Age :	28.05.1955
Date of Appointment :	17.07.2012
DIN No.:	02953178
Name :	Mr. Gyanendra Basant Shukla
Designation :	Alternate Director
Address :	13306, 33^rd Floor Oberoi Woods, CIBA Road, Goregaon East, Mumbai-400063, Maharashtra, India
Date of Birth/Age :	15.08.1966
Date of Appointment :	17.07.2012
DIN No.:	02922133
Name :	Mr. Duraiswami Narain
Designation :	Director
Address :	Quantum Park, A-Wing, 8^th Floor, Flat 803-4, Union Park, Khar (West), Mumbai-400052, Maharashtra, India
Date of Birth/Age :	29.04.1963
Date of Appointment :	16.11.2010
DIN No.:	03310642
Name :	Mr. Abdul Alim Rajabali Sayed
Designation :	Director Appointed in Casual Vacancy
Address :	B-71, Iris Park, Patel Estate Road, Jogeshwari (West), Mumbai-400102, Maharashtra, India
Date of Birth/Age :	25.08.1972
Date of Appointment :	21.05.2013
DIN No.:	01976457
Name :	Mr. Shirish Rajehdra Barwale
Designation :	Additional Director
Address :	72-B, Urvashi, Petit Hall, Nepeansea Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	24.02.1982
Date of Appointment :	23.10.2013
DIN No.:	00152584
Name :	Mr. Prashant Janardhan Hegde
Designation :	Alternate Director
Address :	1206, 12th Floor, Sur- Veena Saaz, Thakur Complex, Kandivali (East), Mumbai – 400101, Maharashtra, India
Date of Birth/Age :	20.05.1968
Date of Appointment :	19.09.2013
DIN No.:	05182035
Name :	Shilpa Shridhar Divekar
Designation :	Alternate Director
Address :	R: 1501, F: 15W, P: 845.848, Raheja Princess, Agar Bazar, Raobahadur, Sk Bole Road, Dadar (West), Mumbai – 400028, Maharashtra, India
Date of Birth/Age :	30.11.1973
Date of Appointment :	25.07.2013
DIN No.:	06619353

KEY EXECUTIVES

Name :	Mr. Suny P Joseph
Designation :	Company Secretary
Address :	5^th Floor, 96, Mahakali Caves Road, Andheri (East), Mumbai-400093, Maharashtra, India
Date of Birth :	11.05.1968
Date of Appointment :	19.01.2011
Pan No.:	AAYPJ8409N

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2013

Names of Equity Shareholders	No. of Shares
Maharashtra Hybrid Seeds Company Limited, India	11899952
Monsanto Holdings Private Limited, India	11899952
Barwale Ramulal Badrinaryan	16
Barwal Badrinaryana Rajendra	16
Shyamsunder Gopilal Agarwal	16
Dhiraj Pant	32
Abdul Alim Rajabali Sayed	16
TOTAL	23800000

Names of Preference Shareholders	No. of Shares
Monsanto Holdings Private Limited, India	1
TOTAL	1

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2013

Category	Percentage
Bodies corporate	99.99
Directors or relatives of directors	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Promoting, Marketing and Sublicensing Bollgard cotton trait technology, and supporting the sub-licensees through market research and advertising

GENERAL INFORMATION

No. of Employees :	Information declined by the management
Bankers :	ICICI Bank Limited, Landmark, Race Course Circle, Vadodara – 390 007, Gujarat, India HDFC Bank Limited
Facilities :	--

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountant
Address :	12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai – 400 018, Maharashtra, India
Tel. No.:	91-22-66679000
Fax No.:	91-22-66679025
PAN No.:	AACFD4815A
Fellow Subsidiary company :	Monsanto India Limited L74999MH1949PLC007912
Joint Venturers :	Monsanto Holdings Private Limited U24110MH1996PTC096340 Maharashtra Hybrid Seeds Company Limited U01100MH1970PLC014600

CAPITAL STRUCTURE

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
24060000	Equity Shares	Rs.10/- each	Rs.240.600 Millions
10	Preference Shares	Rs.100/- each	Rs.0.001 Million
	Total		Rs.240.601 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
23800000	Equity Shares	Rs.10/- each	Rs.238.000 Millions
1	Preference Shares	Rs.100/- each	Rs.0.000 Million
	Total		Rs.238.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	238.000	240.000	240.000
(b) Reserves & Surplus	2050.000	954.200	643.700
(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)	2288.000	1194.200	883.700
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	2.000	20.400	12.600
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	2.000	20.400	12.600
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	64.400	39.100	50.100
(c) Other current liabilities	22.600	66.200	33.600
(d) Short-term provisions	0.000	284.800	285.600
Total Current Liabilities (4)	87.000	390.100	369.300
TOTAL	2377.000	1604.700	1265.600
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	0.000	0.200	0.200
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	5.900	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	1.600
(d) Long-term Loan and Advances	158.100	188.000	121.600
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	164.000	188.200	123.400
(2) Current assets
(a) Current investments	1074.100	839.000	681.300
(b) Inventories	0.000	0.000	0.000
(c) Trade receivables	904.900	396.900	315.000
(d) Cash and cash equivalents	29.100	143.000	76.000
(e) Short-term loans and advances	204.900	37.500	69.800
(f) Other current assets	0.000	0.100	0.100
Total Current Assets	2213.000	1416.500	1142.200
TOTAL	2377.000	1604.700	1265.600

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2013	31.03.2012	31.03.2011
	SALES
	Income	5728.400	6321.900	4848.300
	Other Income	146.000	94.500	86.000
	TOTAL (A)	5874.400	6416.400	4934.300
Less	EXPENSES
	Employees benefits expense	92.800	103.100	73.900
	Other expenses	1158.800	1815.600	1543.400
	TOTAL (B)	1251.600	1918.700	1617.300
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	4622.800	4497.700	3317.000
Less	FINANCIAL EXPENSES (D)	0.200	1.300	154.700
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	4622.600	4496.400	3162.300
Less/ Add	DEPRECIATION/ AMORTISATION (F)	0.000	0.100	0.100
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	4622.600	4496.300	3162.200
Less	TAX (I)	1583.000	1438.300	956.700
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	3039.600	3058.000	2205.500
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	47.100	42.400	17.300
Less	APPROPRIATIONS
	Dividend (Interim & Final)	1493.500	2364.000	1680.000
	Dividend distribution tax	242.300	383.500	278.100
	Transfer to General Reserve	304.000	305.800	222.300
	BALANCE CARRIED TO THE B/S	1046.900	47.100	42.400
	Earnings / (Loss) Per Share (Rs.)	127.64	127.42	91.89

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	51.74	47.66	44.70
Net Profit Margin (PBT/Sales)	(%)	80.70	71.12	65.22
Return on Total Assets (PBT/Total Assets}	(%)	194.96	280.20	250.17
Return on Investment (ROI) (PBT/Networth)		2.02	3.77	3.58
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		25.44	3.63	3.09

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	240.000	240.000	238.000
Reserves & Surplus	643.700	954.200	2050.000
Net worth	883.700	1194.200	2288.000
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	4848.300	6321.900	5728.400
		30.394	(9.388)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	4848.300	6321.900	5728.400
Profit	2205.500	3058.000	3039.600
	45.49%	48.37%	53.06%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS – NOT AVAILABLE

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	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	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
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

OPERATIONS

During the year, the Company earned Rs. 5728.400 Millions as Technology and sub-license fee (Rs. 6321.900 Millions in the previous year).

The company continues to focus on promoting Bollgard II® cotton trait technology in view of its better insect resistance management. The company continues to work with its sublicensees in promoting good agronomic practices. With increased availability of hybrids of choice in the Bollgard II® technology, cotton farmers in India increased their acreage under this technology and have realized the benefits of Bollgard II® technology. These activities were supported by the field teams of the sublicensees.

The Cotton Crop and the textile industry stakeholders continue to acknowledge the role of Bt cotton technologies (Bollgard® and Bollgard II®) in enhancing the cotton production in the country. Many farmer associations and scientific community have also acknowledged the role of the technology in contributing to positive socio economic benefits to the farmers.

CONTINGENT LIABILITIES

(Rs. In Millions)

Particular	31.03.2013	31.03.2012
Income Tax (Amount paid there against Rs. 0.400 Million, Previous Year Rs. 40.300 Millions)	63.500	102.600
Claims against the Company not acknowledged as debts	2.900	2.900

Note: In respect of items mentioned above, till matters are finally decided, the financial effect cannot be ascertained.

FIXED ASSETS

Tangible Assets

• Plant and equipment
• Office equipment
• Computer equipments

PRESS RELEASE

MAHYCO DEVELOPS NEW GM CROPS SANS MONSANTO SUPPORT

JALNA (MAHARASHTRA), FEBRUARY 24: Maharashtra Hybrid Seeds Company (Mahyco) is seeking regulatory approvals for field trials in genetically modified (GM) rice and cotton lines that can grow under water-stressed and saline environments, besides requiring less nitrogen fertilisers.

The Rs.7000.000 Millions company has developed these new plants using proprietary genes belonging to Arcadia Biosciences, a privately-held agri-biotech firm headquartered in Davis, California.

This is a departure from the past when Mahyco relied on the US life sciences giant Monsanto – which holds 26 per cent in it – for either GM technology or genes.

Mahyco-Monsanto Biotech, a 50:50 joint venture between the two companies, is currently the Indian licensee for Bt cotton incorporating Monsanto’s Bollgard and Bollgard II technology events.

Even in Bt brinjal, where the ‘event’ per se – the process of integrating the foreign gene, including developing protocols and identifying the specific location in the host plant’s genome where the insertion is to happen – was that of Mahyco, the specific ‘cry1Ac’ gene was sourced from Monsanto.

Mahyco has used Monsanto’s cry1Ac gene – isolated from a soil bacteria, Bacillus thuringiensis or Bt – to also develop its own Bt rice and okra.

The cry1Ac gene confers resistance to American bollworm in cotton, fruit-and-shoot borer in brinjal, fruit borer in okra, and yellow stem borer in rice by producing proteins toxic to these insect pests.

Beyond Monsanto

Obtaining genes from multiple sources is part of the company’s efforts to move up the technology value chain, Dr Usha Barwale Zehr, Mahyco’s Chief Technology Officer, told Business Line.

Thus, while being a licensee for Bollgard was the first step, Bt brinjal was the second, and accessing genes from other than Monsanto the third. The next step after that would be to develop the company’s own genes in-house.Mahyco has obtained three genes from Arcadia Biosciences.

The first one is an ‘iso-pentenyl-transferace’ gene derived from Agrobacterium tumefaciens – yet another soil bacterium – which stimulates production of proteins that delay drought-induced senescence or aging of plants. Plants incorporating the gene are able to tolerate water stress and stay green.

“If the normal yield for a cotton hybrid is 10 quintals/acre, which may drop to 4-5 quintals due to poor rains, this technology can help produce 7-8 quintals. We have introduced the gene to develop both drought-resistant rice and cotton lines,” said Dr Zehr.

The second is a ‘sodium proton exchanger’ gene from rice that suppresses flow of salts from the roots to the shoots of plants. This has been used to create ‘cisgenic’ rice – a GM plant where the gene inserted through recombinant DNA technology is from the same species – that can grow even in saline soils.

The third is an ‘alanine-aminotransferace’ gene from barley that can enhance nitrogen uptake and utilisation by plants. Since crops typically absorb barely half of the nitrogen in fertilisers that farmers apply, this gene – Mahyco has incorporated it in cotton lines – could enable them to use less number of bags.

Trial hurdles

“We have conducted greenhouse trials in the lines containing all the three genes. The results are promising, but need replication under field conditions. We have applied to the Genetic Engineering Appraisal Committee for event selection field trials”, informed Dr Zehr.

Event selection tests are carried out in one or two locations to identify candidate lines that can be further tested out in bio-safety research level-1 and 2 (BRL I/BRL II) field trials.

BRL I trials are usually done in one-acre plots at a minimum of two locations/region for two years. This is accompanied by animal feeding and other studies to evaluate toxicity of the GM crops. The BRL II trials that follow are in larger 2.5-acre fields over one growing season.

The Government has currently stopped giving clearances for any field trials, including for event selection.

While Mahyco’s Bt brinjal did not get commercialisation approvals even after completing all field trials and bio-safety studies, its Bt rice and okra haven’t progressed beyond BLR I stage.

GOVT BANS MAHYCO MONSANTO BIOTECH

The Director of Inputs and Quality Control (DIQC), the licensing authority in Maharashtra, has banned Mahyco Monsanto Biotech (MMB) in its final order.

A notice has been sent under the provisions of the 2009 Maharashtra Cotton Act which states that all trade activities of the company are illegal.

The DIQC, Dr Sudam Adsule, announced today that any violation could invite stern punitive action against the company. “As a safeguard against the company challenging the order, we have already moved both the Mumbai and Aurangabad benches of the Bombay high court and filed a caveat. We gave them a fair chance and charged them under the Act only when we were sure of their unfair trade practices,” Adusle said.

The DIQC’s announcement has brought a closure of sorts to a long battle against Bt Cotton. “We welcome this decision as Bt Cotton played a key role in accelerating the farmer suicide saga in Vidarbha since June 2005. In fact, we demand that all 28 companies connected with MMB be banned,” said Kishore Tiwari of the Vidarbha Jan Andolan Samiti.

“It is high time the authorities pushed for replacing Bt with the traditional Indian cotton seed. Straight variety seeds cost much lesser than the Bt varieties. Also, these varieties become ready for plucking in 150-160 days unlike Bt varieties which take 180-200 days. This reduces need for fertilizers, pesticides and other nutrients substantially.”

On the basis of the complaints from cotton farmers as well as reports from agriculture officers, state agriculture minister, Radhakrishnna Vikhe Patil, had told the state legislative assembly last month that the government was convinced that the company was cheating innocent cotton farmers by supplying sub-standard seeds, and was also involved in its black marketing by creating artificial shortage of supplies and ignoring notices of unfair trade practices.

The minister had also announced the government’s desire to ban the sale of MMB’s Bt cotton as it had failed to supply good quality seeds despite taking huge advances from debt-trapped farmers in the state.

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.60.10
UK Pound	1	Rs.102.32
Euro	1	Rs.81.75

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	SUB
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
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	6
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		60

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.