I.  COMPANY BACKGROUND:
 
 Monsanto India Limited (the `Company'') was incorporated on 8th
 December, 1949. The Company is presently engaged in the business of pr
 oduction and sale of agricultur al inputs, namely, chemicals and hybrid
 seeds. The C ompany''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 Bangalore and
 Hyderabad. During the year hybrid seeds processing and drying
 operations at Bellary and Eluru were shifted to Hyderabad.
 
                                                      (Rs. in Lacs)
 
                                    31st March, 2011   31st March, 2010
 
 2.  Contingent Liabilities in respect of the following matters:
 
 i) Income-tax                           2,820.79         2,165.27
 
 ii) Sales tax                             390.95         1,457.94
 
 iii) Claims against the Company not 
      acknowledged                          91.58            59.77
 
 as debts Note: In respect of items mentioned above, till matters are
 finally decided, the financial effect cannot be ascertained.
 
 16. Related Party Disclosure:
 
 Names of related parties and description of relationship
 
 A.  Holding Company:
 
 Monsanto Holdings Private Limited (from 23rd November, 2010) (MHPL)
 Ultimate Holding Company- Monsanto Company, USA (MUSA)
 
 B.  Fellow Subsidiaries:
 
 P . T . B r anita Sandhini, Monsanto Philippines INC , Monsanto
 Thailand L td, Bretco Holding (Mauritius) L td, Monsanto Singapore Pte
 Ltd, Monsanto Pakistan Agri-tec (Pvt) Ltd, Seminis Vegetable Seeds
 Inc., PT Monagro Kimia, Monsanto A G Products LLC, Monsanto A g
 Technology LLC, Monsanto Inter -America Co, Monsanto Chile S.A.,
 Monsanto Holland B V, Monsanto F ar East L td., Monsanto K orea Inc,
 Seminis Beijin g Co. Ltd., Monsanto Holdings Private Limited (till 22nd
 November, 2010)
 
 20.  The Company has continually maintained a position that its income
 from agricultural activities (which inv olves growing seeds in v arious
 states thr ough local gr owers), is not tax able. This contention has
 also been upheld by the Honorable Income-tax Appellate T ribunal,
 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) fo r Assessment Year 2002- 03 and 2006-07.
 
 23. Operation, Administration and Other Expenses in Schedule 13
 includes xepenses after reduction of reimbursements amounting to Rs.
 955.40 Lacs (Previous year Rs. 2,923.46 Lacs) by Holding Co. and Fellow
 Subsidiaries towards the value of costs apportioned of the Company''s
 employees and facilities in accordance with the agr eements on
 allocation of expenses with the companies.
 
 3. The Company has accrued the liabilit y for compensated absences
 based on the actuarial v aluation as at the balance sheet date
 conducted by an independent actuary and provided for the actuarial
 liability at Rs. 577.19 Lacs (Previous Year Rs. 551.24 Lacs)
 
 4.  Monsanto Company, USA (MC) has established the Monsanto Company
 Long Term Incentive Plan. As a part of the plan, employees of Monsanto
 India Limited ar e provided with an oppor tunity 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 y ears from the date of the gr ant and they can e xercise the
 stock options af ter 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 measur es compensation e xpense for stock
 options and equit y- based awards (net of forfeitures) at their fair
 value determined using a Lattice binomial model on the date of grant
 and amortized over the vesting period. Accordingly, an amount of Rs.
 259.33 Lacs (previous year Rs. 152.53 Lacs) has been debited to the
 profit and loss account for the year. This amount includes an amount of
 Rs. 2.83 Lacs (Previous Year Rs. 2.59 Lacs) incurred by the Company
 towards employee stock option plan for the Managing Director.
 
 During the y ear MC has gr anted to emplo yees of the C ompany 23,290
 (Previous Year 23,450) options/stock awards on various dates of which
 none ar e vested. However 5,573 (Previous Year 11,210)
 options/stock-awards were withdrawn on account of employee resignations
 and 4,820 options were transferred from (Previous Year 713 options were
 transferred to) other group companies on employees being transferred
 resulting in an outstanding balance of 67,400 (Previous year 54,503)
 options/stock-awards at the end of the year.
 
 5.  As a part of consolidation of manufacturing operations in
 Hyderabad to achieve operational savings, the Company decided to shift
 the seed processing and drying operations from Bellary and Eluru to
 Hyder abad and hence the related fixed assets are shown under `Assets
 held for sale'' in the Balance Sheet. The said assets are valued at the
 lower of net book value and net realizable value in accordance with
 Accounting Standard 10 - Accounting for Fixed Assets. Accordingly, in
 the case of the assets at Eluru, the net r ealizable value is lower by
 Rs. 1,217.00 Lacs based on a letter of intent issued by the Company to
 the prospective buyer and the loss has been recognized in the Profit
 and Loss Account and shown under Schedule 13 - Oper ation,
 Administration and Other e xpenses. In respect of fixed assets at
 Bellary, the management expects to obtain net realizable value higher
 than the net book value of the assets. Accordingly, the fixed assets at
 Bellary are carried at net book value.
 
 6.  Comparative financial information:
 
 Comparative financial information (i.e. the amounts and other
 disclosures for the preceding year presented above), is included as an
 integral part of the current year''s financial statements and is to be
 read in relation to the amounts and other disclosures relating to the
 current year. Figures of the previous year have been
 regrouped/reclassified wherever necessary to correspond to figures of
 the current year.