The present invention provides a composition of bio-control agent and method of preparing the same for controlling soybean (Glycine max L. Merrill) fungal phytopathogens, Fusarium oxysporum and Rhizoctonia solani in soil comprising bacterium preferably but not limited to Bacillus spp. SJ-5 co-inoculated with autoclaved fungal pathogens Fusarium oxysporum and Rhizoctonia solani. The seeds treated with the present bio-control agent showed significant increase in plant growth with respect to length and biomass along with enhanced expression of defense-related enzymes responsible for induced systemic resistance (ISR).