Cyanamid Agro Ltd.

• Commercial Paper Programme - Rs. 150 million Rating : P1+

A 'P1+' (pronounced P one plus) rating has been assigned to the Rs. 150 million Commercial Paper Programme of Cyanamid Agro Limited (Cy Agro).

The rating reflects Cy Agro''s strengths in the pesticide business arising from technological and operational support from a strong parent, strong brands in the domestic market, diversification across geographical regions and crops and a favourable financial profile. However the rating also factors the relatively small size of the company and the risks arising out of single unit manufacturing facility with relatively low degree of integration. Cy Agro had sales of Rs. 546 million and PAT of Rs. 15 million in H1 1999-00.

American Cyanamid Co. (ACY) which is among the world leaders in the international agrochemicals industry, holds 39.99% in Cy Agro. ACY is a 100% subsidiary of American Home Products Corp. which is an international pharmaceuticals and agrochemicals major and has an S&P rating of 'A'. Recently, there has been a proposal to merge the 100% subsidiary of ACY in India, ACCO Industries Ltd, with Cy Agro with effect from September 1, 1999. Cy Agro is in the process of seeking various statutory approvals for the same. Once this goes through, the stake of ACY in Cy Agro will increase to 68.7%.