Monsanto India

1.  Related Party Disclosure:
 
 Names of related parties and description of relationship
 
 A.  Holding Company:
 
 Monsanto Company, USA.
 
 B.  Fellow Subsidiaries:
 
 P.T. Branita Sandhini, Monsanto Philippines INC, Monsanto Thailand Ltd,
 Bretco Holding (Mauritius) Ltd, Monsanto Singapore Pte Ltd, Monsanto
 Pakistan Agri-tec (Pvt) Ltd, Seminis Vegetable Seeds Inc., Monsanto
 Holding Pvt Ltd, PT Monagro Kimia, Monsanto AG Products LLC, Monsanto
 Ag Technology LLC, Monsanto Inter-America Co, Monsanto Chile S.A.,
 Monsanto Holland BV, Monsanto Far East Ltd., Monsanto Korea Inc,
 Seminis Beijing Co. Ltd., Parry Monsanto Seeds Pvt. Ltd. (upto 31st
 March, 2007), Monsanto Genetics India Pvt. Ltd. (upto 31st March,
 2007), Seminis Vegetable Seeds (India) Pvt. Ltd. (upto 31st March,
 2007), Monsanto (Malaysia) Sdn. Bhd., Monsanto Europe SA
 
 C.  Key Managerial Personnel:
 
 Mr. Amitabh Jaipuria, Managing Director
 
 2.  The dominant source and nature of the risks and returns of the
 agricultural chemistry and seeds activities of the Company not being
 significantly different, the Company operates a single segment of
 activity, Agricultural Inputs, within the same geography.
 
 3. The Company has continually maintained a position that its income
 from agricultural activities (which involves growing seeds in various
 states through local growers), is not taxable. This contention has also
 been upheld by the Honorable Income-tax Appellate Tribunal, Mumbai for
 Assessment Years 1993-94 through 2001-02 and Assessment years 2003-04
 and 2004-05. This position is also followed by CIT (Appeals) for
 Assessment Year 2002-03.
 
 4.  Operation, Administration and Other Expenses in Schedule 12
 include expenses after reduction of reimbursements amounting to
 Rsl,930.62 Lacs (Previous year Rs. 1,421.08 Lacs) by Holding Co. and
 Fellow Subsidiaries towards the value of costs apportioned of the
 Companys employees and facilities in accordance with the agreements on
 allocation of expenses with the companies
 
 5.  Disclosure as required under AS -15 regarding the Companys
 defined benefit plans is as follows:
 
 6. Monsanto Company, USA (MC) has established the Monsanto Company
 Long Term Incentive Plan. As a part of the plan employees of Monsanto
 India Limited are provided with an opportunity to acquire shares of MC
 via stock option/equity-based awards. The eligible employees are
 granted the options which shall vest with the employees over a period
 of 3 years from the date of the grant and they can exercise the stock
 options after their vesting period through any of the following three
 methods viz., i) cashless sell; ii) cashless hold and iii) cash
 purchase. The employee can exercise the option within a stipulated
 period mentioned in the plan.
 
 Monsanto India Limited measures compensation expense for stock options
 and equity-based awards (net of forfeitures) at their fair value
 determined using a Lattice binomial model on the date of grant and
 amortised over the vesting period. Accordingly, an amount of Rs.292.88
 Lacs (previous year Rs.42.00 Lacs) has been debited to the profit and
 loss account for the year.
 
 During the year, MC has granted to employees of the Company 32,560
 (Previous Year 18,165) options/stock awards on various dates of which
 none are vested. However, 4,665 (Previous Year 2,270)
 options/stock-awards were withdrawn on account of employee resignations
 and 2,240 (Previous Year Nil) options were transferred to other group
 companies on employee being transferred resulting in an outstanding
 balance of 41,550 (Previous year 15,895) options/stock-awards at the
 end of the year.