MIRA INFORM REPORT

Report Date :

19.01.2011

IDENTIFICATION DETAILS

Name :	PAPRIKA OLEO’S (INDIA) LIMITED
Registered Office :	36 M.C. Chidambara Nadar Street, Virudhunagar – 626001, Tamil Nadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	29.01.1992
Com. Reg. No.:	022100
CIN No.: [Company Identification No.]	U52599TN1992PLC022100
Legal Form :	A Closely Held Public Limited Liability company
Line of Business :	Manufacturer and Exporter of Chillies and Chilli Powder, etc.

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 517004
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Name :	Mr. Jay Singh
Designation :	Director
Contact No.:	91-9894601930
Date :	02.02.2011

LOCATIONS

Registered Office :	36 M.C. Chidambara Nadar Street, Virudhunagar – 626001, Tamil Nadu, India
Tel. No.:	91-4562-242043
Mobile No.:	91-9894601930 (Mr. Jai Singh-Director)
Fax No.:	91-4562-244590
E-Mail :	paprikaoleos@gmail.com
Website :	www.spice-chillies.com
Location :	Owned
Corporate Office :	"Jindu Garden", Block C-17-H, 37, Donghai Road, Qingdao, China - 266071
Tel. No.:	86 -532 -85726594
Fax No.:	86-532-85975100
Factory 1 :	15, Perali Road, Virudhunagar – 626001, Tamilnadu, India

DIRECTORS

AS ON 22.09.2010

Name :	Mr. P. Krishnamurthy
Designation :	Director
Address :	80 Kasappikarar Street, Virudhunagar – 626001, Tamilnadu, India
Date of Birth/Age :	12.06.1933
Date of Appointment :	05.02.1999
Name :	Mr. P. Vanniarajan
Designation :	Director
Address :	72/2, Kasappukarar Street, Virudhunagar – 626001, Tamilnadu, India
Date of Birth/Age :	05.08.1942
Date of Appointment :	22.08.2005
Name :	Mr. P. Jayakar
Designation :	Managing Director
Address :	33 M.C.C. Street, Virudhunagar – 626001, Tamilnadu, India
Date of Birth/Age :	08.06.1945
Date of Appointment :	19.08.1996
Name :	Mr. A. P. Murugan
Designation :	Director
Address :	35 (New No. 33) M.C.C. Street, Virudhunagar – 626001, Tamilnadu, India
Date of Birth/Age :	13.01.1947
Date of Appointment :	19.08.1996
Name :	Mr. P. Rajaram
Designation :	Director
Address :	33 M.C.C. Street, Virudhunagar – 626001, Tamilnadu, India
Date of Birth/Age :	04.03.1947
Date of Appointment :	29.01.1992
Name :	Mr. A.P. Raghunathan
Designation :	Director
Address :	33 M.C.C. Street, Virudhunagar – 626001, Tamilnadu, India
Date of Birth/Age :	05.08.1959
Date of Appointment :	04.11.2005
Name :	Mr. K. Senthilvel
Designation :	Whole time Director
Address :	33 M.C.C. Street, Virudhunagar – 626001, Tamilnadu, India
Date of Birth/Age :	24.04.1963
Date of Appointment :	31.03.1999
Name :	Mr. J. Jaisingh
Designation :	Director
Address :	33 M.C.C. Street, Virudhunagar – 626001, Tamilnadu, India
Date of Birth/Age :	06.06.1972
Date of Appointment :	03.12.1997
Name :	Mr. J. Sundar
Designation :	Director
Address :	8/16 A.A. Road, Virudhunagar – 626001, Tamilnadu, India
Date of Birth/Age :	07.08.1983
Date of Appointment :	22.08.2005
Name :	Mr. Jay Singh
Designation :	Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 22.09.2010

Names of Shareholders	No. of Shares
Mr. Arun Jayakar	4000
Mr. Bourna Pradeep	9000
Ms. Deepti Arun	7000
Mr. Ganesan Paramasiva Nadar	9000
Mr. Jaisinh Jayakar	5000
Mr. Jayakar Paramasiva Nadar	6000
Mr. Jayanthi Jayakar	7800
Mr. Ralaihathi Palaniappan	10800
Mr. Krishnamurthy	5800
Ms. Latha Murugan	7800
Mr. Senthilvel	9000
Manjari Jaisinh	7000
Murugan Paramasiva Nadar	6000
Nagalosini	10800
Nagawsrna	10800
Palaniappan	9000
Pradeep	6000
Premakumari	8000
Ragunathan	9000
Rajaram	9000
Senthilvel	6000
Shenbagavalli Ganesan	10800
Sunder	6600
Usha Rajaram	10800
Vaniarajan Paramasivandar	9000
Total	200000

AS ON 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Chillies and Chilli Powder, etc.
Exports :
Products :	Chilli Powder
Countries :	USA Malaysia Mexico
Terms :
Selling :	Cash, Credit (30 days)
Purchasing :	Cash, Credit

GENERAL INFORMATION

Customers :

• Wholesalers

No. of Employees :

300 (in office + in factory)

Bankers :

• Axis Bank Limited, D. No. 105-4, Katchery Road, Virudhunagar – 626001, Tamil Nadu, India
• State Bank of India, Madhurai Road Branch, Virudhunagar, Tamil Nadu, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Term Loan – from Axis Bank	9.124	17.536
Export Packing Credit – from State Bank of India	56.286	68.402
Total	65.410	85.938

Banking Relations :	---
Auditors :
Name :	Somasundaram And Rajamani Chartered Accountant
Address :	Plot No. 354, Anna Nagar, Madurai – 625020, Tamil Nadu, India
Associates/Subsidiaries :	Indian Chillies Trading Company Limited, Virudhunagar, Tamil Nadu, India Gurden Valley Exports Corporation, Virudhunagar, Tamil Nadu, India

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1,000,000	Equity Shares	Rs.10/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
200,000	Equity Shares	Rs.10/- each	Rs. 2.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Expected Sales (2010-2011) : Rs. 350.000 Millions

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		2.000	2.000	2.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		127.251	128.007	121.675
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		129.251	130.007	123.675
LOAN FUNDS
1] Secured Loans		65.410	85.938	79.314
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		65.410	85.938	79.314
DEFERRED TAX LIABILITIES		13.100	14.900	10.900
TOTAL		207.761	230.845	213.889
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		55.381	60.990	69.282
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		9.022	3.022	3.022
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	64.358	76.283	61.683
	Sundry Debtors	31.478	30.683	32.642
	Cash & Bank Balances	6.030	26.082	11.609
	Other Current Assets	3.128	2.004	1.171
	Loans & Advances	75.810	72.545	80.543
Total Current Assets		180.804	207.597	187.648
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	19.283	26.521	29.533
	Other Current Liabilities	2.993	2.624	2.851
	Provisions	15.170	11.619	13.679
Total Current Liabilities		37.446	40.764	46.063
Net Current Assets		143.358	166.833	141.585
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		207.761	230.845	213.889

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	358.552	388.829	374.380
		Other Income	18.294	20.421	20.285
		TOTAL (A)	376.846	409.250	394.665
Less	EXPENSES
		Materials	288.151	316.128	310.419
		Employees	4.166	3.812	3.064
		Other Expenses	49.251	67.522	54.795
		Increase /(Decrease) in stock	13.434	(15.244)	4.708
		Expenses relating to earlier years (incurred)/reversed	0.074	(0.025)	0.030
		Income tax for earlier years	0.000	0.184	0.000
		TOTAL (B)	355.076	372.377	373.016
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		21.770	36.873	21.649
Less	FINANCIAL EXPENSES (D)		5.899	9.454	10.484
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		15.871	27.419	11.165
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.262	10.241	10.148
	PROFIT BEFORE TAX (E-F) (G)		5.609	17.178	1.017
Less	TAX (I)		1.702	6.166	0.577
	PROFIT AFTER TAX (G-I) (J)		3.907	11.012	0.440
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		92.726	88.393	94.632
Less	APPROPRIATIONS
		Transfer to General Reserve	2.000	2.000	2.000
		Proposed Interim Dividend @ 200%	4.000	0.000	0.000
		Proposed Dividend @ 200%	0.000	4.000	4.000
		Provision fro Tax on Dividend	0.664	0.679	0.679
	BALANCE CARRIED TO THE B/S		89.969	92.726	88.393
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	283.172	335.340	323.561
	TOTAL EARNINGS		283.172	335.340	323.561
	IMPORTS
		Raw Materials	0.000	6.493	2.046
		Stores & Spares	0.000	0.589	2.527
		Capital Goods	0.625	0.000	0.000
	TOTAL IMPORTS		0.625	7.082	4.573

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.03	2.69	0.11
Net Profit Margin (PBT/Sales)	(%)	1.56	4.41	0.27
Return on Total Assets (PBT/Total Assets}	(%)	2.37	6.39	0.39
Return on Investment (ROI) (PBT/Networth)		0.04	0.13	0.00
Debt Equity Ratio (Total Liability/Networth)		0.79	0.97	1.01
Current Ratio (Current Asset/Current Liability)		4.82	5.09	4.07

LOCAL AGENCY FURTHER INFORMATION

Trade References

• KAS
• Doxo Ingredients

Form 8

Corporate identity number of the company

U52599TN1992PLC022100

Name of the company

PAPRIKA OLEO’S (INDIA) LIMITED

Address of the registered office or of the principal place of business in India of the company

36 M.C. Chidambara Nadar Street, Virudhunagar – 626001, Tamil Nadu, India

This form is for

Creation of charge

Type of charge

Movable property

Particular of charge holder

Name :	Axis Bank Limited,
Address :	D. No. 105-4, Katchery Road, Virudhunagar – 626001, Tamil Nadu, India
Email :	virudhunagar.branchhead@axisbank.com

Nature of instrument creating charge

Loan cum Hypothecation agreement dated 20.05.2010

Sanction Letter bearing ref AXIS/MDU SME/SCH/07/10-11 date 10.05.2010

Date of instrument Creating the charge

20.05.2010

Amount secured by the charge

Rs. 0.700 Million

Brief of the principal terms an conditions and extent and operation of the charge

Rate of Interest

11% per annum at monthly rests (not linked to PLR)

Terms of Repayment

Repayable in 36 equated monthly instalments of Rs.0.022 million each commencing from 20.06.2010

Margin

50.45

Extent and Operation of the charge

Hypothecation of one "INGERSOLLRAND MAKE BOBCAT S 130" model vehicle

Others

Nil

Particulars of the property charged

Hypothecation of one" INGERSOLLRAND MAKE BOBCAT S 130" model vehicle

Fixed Assets

v Land

v Buildings

v Plant and Machinery

v Furniture and Office Equipments

v Vehicles

v Wind Turbine Generators

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.18
UK Pound	1	Rs.73.04
Euro	1	Rs.61.43

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		53

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.