Monsanto India

The Directors have pleasure in presenting their 58th Annual Report
 together with the Audited Accounts for the year ended 31st March, 2008.
 
 FINANCIAL HIGHLIGHTS                                     (Rs. in Lacs)
                                                 Year ended  Year ended
                                                 31st March  31st March
                                                 2008        2007
 
 Net Sales                                       36354       30922
 
 Profit Before Taxes                             12512        7915
 
 Taxation                                        (2496)       (862)
 
 Balance of Profit                               10016        7053
 
 Add: Balance brought forward
 from previous year                              14232       10149
 
 Amount available for appropriation              24248       17202
 
 Appropriated as under:
 
 a.  Interim Dividends                           16572        1726
 
 b.  Tax on Interim Dividends                     2816         242
 
 c.  Proposed Final Dividend                      1295         216
 
 d.  Tax on proposed Final Dividend                220          36
 
 e.  Transfer to General Reserve                  1100         750 
 
     Balance in Profit & Loss Account              2245      14232
 
                                                  24248      17202
 
 The financial performance for the financial year 2007-08 is not
 comparable with that of financial year 2006-07 as the Company sold and
 transferred two businesses during the financial year 2007-08:
 
 1.  On 30th October, 2007, the Company sold and transferred its
 business related to developing germplasm and of producing, packaging,
 distribution, marketing and/or sale of sunflower seeds for a
 consideration of Rs.15.3 Crores.
 
 2.  On 29th February, 2008, the Company sold and transferred its
 Butachlor and Alachlor businesses that include the transfer of the
 flagship brands Machete, Fastmix and Lasso for a consideration of
 Rs.33.3 Crores.
 
 In financial year 2006-07, the Company sold and transferred its
 business of manufacturing and trading of herbicide - Sulfosufuron 75%
 WG in the trademark of Leader for a consideration of Rs.30.1 Crores.
 
 Pursuant to an agreement to support, manage and operate Butachlor Ft
 Alachlor business for and on behalf of the buyer of the business, the
 financial results for the financial year 2007-08 include an amount of
 Rs.50.8 Crores in Sales as well as in total expenditure and an amount
 of Rs.3.76 Crores in Other Income towards reimbursement of costs.
 
 OPERATIONAL HIGHLIGHTS
 
 During the year, the Company further strengthened its position in the
 market and with the customers by introducing new seed hybrid varieties.
 Corn seeds are sold under the brand name - Dekalb and are now well
 established within the farming community. Companys seed operations
 continued to generate overall volume and margin growth during the year
 through a combination of high quality product offerings and better mix.
 These are being well supported by appropriate investments in
 Production, Quality and Breeding to sustain the growth.
 
 After divestment of certain herbicides businesses, the Company has
 glyphosate based herbicide, which is sold under the brand name
 Roundup. The Company also sells glyphosate in bulk to corporate
 customers. Through various awareness initiatives, this business of the
 Company grew rapidly both in volumes and value in the financial year
 2007-08.
 
 DIVIDEND
 
 The Board of Directors declared two interim dividends during the year:
 
 (a) 1st Interim Dividend of Rs.12 per equity share on 29th October,
 2007.
 
 (b) 2nd Interim Dividend of Rs.180 per equity share on 15th May, 2008.
 
 Your Directors are pleased to recommend a final dividend of Rs.15 per
 equity share to the shareholders.
 
 The total dividend for the financial year 2007-08 including the
 proposed final dividend is Rs. 207.
 
 CORPORATE GOVERNANCE
 
 A detailed report on the Corporate Governance system and practices of
 the Company is given as a separate section of the Annual Report.
 
 MANAGEMENT DISCUSSION AND ANALYSIS
 
 A Management Discussion and Analysis on the business and operations of
 the Company is given as a separate section of the Annual Report.
 
 DIRECTORS AND MANAGER
 
 The following changes occurred in the Board of Directors of the Company
 during the year under review:
 
 a) Mr. Amitabh Jaipuria was appointed as a Managing Director of the
 Company effective 1st November, 2007.
 
 b) Mr. Mark J. Deadwyler resigned as Director of the Company effective
 20th December, 2007.
 
 Mr. S. Rajagopalan ceased to be the Manager of the Company effective
 1st November, 2007.
 
 Mr. H. C. Asher and Mr. Pradeep Poddar retire by rotation at the
 ensuing Annual General Meeting and, being eligible, offer themselves
 for re-appointment.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 In compliance with Section 217(2AA) of the Act, your directors, on the
 basis of information made available to them, confirm the following:
 
 a) in the preparation of the annual accounts, the applicable accounting
 standards have been followed;
 
 b) they have selected such accounting policies and applied them
 consistently and made judgements and estimates that are reasonable and
 prudent so as to give a true and fair view of the state of affairs of
 the Company as at 31st March, 2008 and of the profit or loss of the
 Company for that period;
 
 c) proper and sufficient care has been taken for the maintenance of
 adequate accounting records in accordance with the provisions of the
 Act, for safeguarding the assets of the Company and for preventing and
 detecting fraud and other irregularities;
 
 d) the annual accounts are prepared on a going concern basis.
 
 PERSONNEL
 
 The Company continues to maintain cordial relationship with its
 workforce at all locations. Continuous upgradation of core skill
 through training programs either internal or external agencies are an
 integral part of human resources development policy.
 
 The statement under sub-section (2A) of Section 217 of the Companies
 Act, 1956, read with the Companies (Particulars of Employees) Rules,
 1975, as amended and forming part of this report is given in Annexure -
 1.
 
 AUDITORS
 
 M/s. Deloitte Haskins Et Sells, Chartered Accountants, retire as
 auditors of the Company at the ensuing Annual General Meeting and,
 being eligible, are proposed for re-appointment.
 
 CONSERVATION OF ENERGY ft TECHNOLOGY ABSORPTION
 
 The information required to be furnished pursuant to Section 217(1) (e)
 of the Act, read with the Companies (Disclosure of particulars in the
 Report of the Board of Directors) Rules, 1988 is enclosed as Annexure -
 2 and forms part of this Report.
 
 FOREIGN EXCHANGE EARNINGS AND OUTGO
 
 The details of expenditure and earnings in foreign currency are given
 under Notes to Accounts in Para 6 and 7.
 
 ACKNOWLEDGEMENT
 
 Your Board acknowledges the service rendered by the employees of the
 Company for the satisfactory performance of the Company.  The Board
 also places on record its appreciation for the continued support from
 Monsanto Company, USA. The Board also thanks its shareholders,
 distributors/dealers, farmers, and other business associates for their
 support during the year.
 
                            For and on behalf of the Board of Directors
 
                                      SEKHAR NATARAJAN
 Mumbai: 28th May, 2008               Chairman