MIRA INFORM REPORT

Report Date :

04.06.2012

IDENTIFICATION DETAILS

Name :	PRAGATI OFFSET PRIVATE LIMITED
Formerly Known As :	PRAGATI OFFSET LIMITED
Registered Office :	17, Red Hills, Hyderabad - 500 004, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	17.02.1988
Com. Reg. No.:	01-008319
Capital Investment / Paid-up Capital :	Rs. 4.123 Millions
CIN No.: [Company Identification No.]	U24220AP1988PTC008319
TAN No.: [Tax Deduction & Collection Account No.]	HYDP00062G
PAN No.: [Permanent Account No.]	AABCP2278H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Packaging Materials.
No. of Employees :	490 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 4700000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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. Deepak
Designation :	Accounts Departments
Contact No.:	91-22-23380000
Date :	30.05.2012

LOCATIONS

Registered Office/ Factory/ Head Office :	17, Red Hills, Hyderabad - 500 004, Andhra Pradesh, India
Tel. No.:	91-40-66999000/ 23304835/ 23380000
Fax No.:	91-40-66999000/ 23390230
E-Mail :	info@pragati.com
Website :	http://www.pragati.com
Area :	700 Sq.ft.
Location :	Owned
Marketing Offices :	Located at : Ø Bengaluru Ø Chennai Ø Kolkata Ø Mumbai Ø Central India Ø New Delhi Ø Pune Ø New York
Branches :	Located at : v Geetha Nilaya, No. 205, 3^rd Cross, Domiur Layout, Bangalore-560071 Tel. No. : 91-80-25356742 v P-54 And 55, Kasba Industrial Estate, Phase II, Kolkata-700107 Tel. No. :91-33-24431501 v B/22, Royal Industrial Estate, Naigaum X Road, Wadala, Mumbai -400031 Tel. No. :91-22-24115711/24115712 v 207-208, Rakesh Deep, 11 Yusuf Sarai Commercial Complex, New Delhi-110049 Tel. No. :91-11-41841661 v Flat No. 10, Vishnu Prasanna Heights, 36/2/1, Karve Nagar, Pune -411052 Tel. No. :91-20-25436634 v Empire State Building 350, Fifth Avenue, Suite 3304,New York 10118, USA Tel. No. : 212971313/6462506228

DIRECTORS

AS ON 29.09.2011

Name :

Mr. Mahendra Paruchuri

Designation :

Managing director

Address :

11-5-401, Hillview, Red Hills, Khairtabad, Hyderabad-500004, Andhra Pradesh, India

Date of Birth/Age :

16.06.1957

Qualification :

B.Com

Experience :

31 Years

Date of Appointment :

17.02.1988

DIN No.:

00129528

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24220AP1988PTC008319	PRAGATI OFFSET PRIVATE LIMITED	Managing director	01-03-08	17-02-88	Active	NO
2	U74999AP1996PTC025438	ROSE WOOD FORESTRY PRIVATE LIMITED	Director	10-10-96	10-10-96	Active	NO
3	U74990AP2001PTC036609	PRAGATI FLEXO PRIVATE LIMITED	Director	24-04-01	24-04-01	Active	NO
4	U74990AP2001PTC036608	PRAGATI PACK (INDIA) PRIVATE LIMITED	Director	24-04-01	24-04-01	Active	NO
5	U21098AP2009PTC062468	SECUSOL PAPERS PRIVATE LIMITED	Director	06-01-09	06-01-09	Active	NO

Name :

Mr. Narendra Paruchuri

Designation :

Whole-time director

Address :

11-5-401, Hillview, Red Hills, Khairtabad, Hyderabad-500004, Andhra Pradesh, India

Date of Birth/Age :

23.09.1953

Qualification :

B Tech

Experience :

33 Years

Date of Appointment :

17.02.1988

DIN No.:

00129551

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24220AP1988PTC008319	PRAGATI OFFSET PRIVATE LIMITED	Whole-time director	01-01-09	17-02-88	Active	NO
2	U74990AP2001PTC036609	PRAGATI FLEXO PRIVATE LIMITED	Director	24-04-01	24-04-01	Active	NO
3	U74990AP2001PTC036608	PRAGATI PACK (INDIA) PRIVATE LIMITED	Managing director	01-08-09	24-04-01	Active	NO
4	U74999AP1996PTC025438	ROSE WOOD FORESTRY PRIVATE LIMITED	Director	29-11-04	29-11-04	Active	NO
5	U72200AP2000PLC035398	MEDRC EDUTECH LIMITED	Director	29-09-06	29-09-06	Active	NO
6	L55101AP1965PLC001048	VICEROY HOTELS LIMITED	Director	31-12-06	31-12-06	Active	NO
7	U72900AP2008PLC059909	SmarTeach Technologies Limited	Director	27-06-08	27-06-08	Active	NO

Name :

Mr. Hanumantha Rao Paruchuri

Designation :

Director

Address :

11-5-401, Hillview, Red Hills, Khairtabad, Hyderabad-500004, Andhra Pradesh, India

Date of Birth/Age :

06.07.1925

Date of Appointment :

17.02.1988

DIN No.:

00129430

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24220AP1988PTC008319	PRAGATI OFFSET PRIVATE LIMITED	Director	17-02-88	17-02-88	Active	NO
2	U74999AP1996PTC025438	ROSE WOOD FORESTRY PRIVATE LIMITED	Director	25-08-03	25-08-03	Active	NO

Name :

Ms. Sasikala Kola Paruchuri

Designation :

Director

Address :

11-5-401, Hillview, Red Hills, Khairtabad, Hyderabad-500004, Andhra Pradesh, India

Date of Birth/Age :

24.04.1924

Date of Appointment :

17.02.1988

DIN No.:

00129614

Name :

Ms. Seetha Laxmi Paruchuri

Designation :

Director

Address :

11-5-401, Hillview, Red Hills, Khairtabad, Hyderabad-500004, Andhra Pradesh, India

Date of Birth/Age :

24.04.1924

Date of Appointment :

17.02.1988

DIN No.:

00129356

Name :

Ms. Harsha Paruchuri

Designation :

Whole-time director

Address :

11-5-401, Hillview, Red Hills, Khairtabad, Hyderabad-500004, Andhra Pradesh, India

Date of Birth/Age :

24.02.1979

Qualification :

B Tech

Experience :

11 Years

Date of Appointment :

01.09.2000

DIN No.:

00129638

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24220AP1988PTC008319	PRAGATI OFFSET PRIVATE LIMITED	Whole-time director	01-01-09	01-09-00	Active	NO

Name :

Mr. Nadella Nagendra Rao

Designation :

Whole-time director

Address :

F No.14/15, Maturu Apartments, A C Guards, Hyderabad-500004, Andhra Pradesh, India

Date of Birth/Age :

15.09.1959

Date of Appointment :

01.06.2004

DIN No.:

01284447

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24220AP1988PTC008319	PRAGATI OFFSET PRIVATE LIMITED	Whole-time director	01-06-09	01-06-04	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2011

Names of Shareholders	No. of Shares
Paruchuri Mahendra	2632
Paruchuri Narendra	3557
P. Hanumantha Rao	2611
Seetha Laxmi Paruchuri	3650
Paruchuri Harsha	1575
P. Sasikala	2929
Nagendra Nadella Rao	1012
P. Alekhya	1575
P. Hemanth	1575
P. Swathi	1575
P. Hanumatha Rao - HUF	4440
P. Mahendra – HUF	5847
P. Narendra – HUF	4947
P. Nagamani	3307
Total	41232

AS ON 29.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Packaging Materials.

Products :

ITC Code	Product Descriptions
49011020	Printed material, leaflets, brouchers etc

Exports :

Products :

Packaging Materials

Countries :

Ø US

Ø Australia

Imports :

Products :

Raw Material

Countries :

Ø Japan

Ø Germany

Ø Netherlands

Ø US

Terms :

Selling :

Cash / Credit

Purchasing :

Cash / Credit

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Printed products of all kinds includes Annual Reports, Calendars, continuous stationery, books, magazines and other periodicals, directories catalogues, publicity material, stationery typesetting, colour separation, plates and combination thereon.	Sets in millions	--	1565.000	219.710

GENERAL INFORMATION

Suppliers :

Balharpur Industries

Customers :

Ø Asian Paints Limited

Ø Infosys

Ø Dr, Reddy’s

Ø Bajaj

Ø Tata

Ø Ranbaxy

Ø Hindustan Unilever

Ø Cipla

Ø Raymond

Ø Microsoft

Ø Philips

Ø Reliance

Ø Citi

Ø Ganjam

No. of Employees :

490 (Approximately)

Bankers :

Ø ICICI Bank Limited, Himayat Nagar Branch, Hyderabad, Andhra Pradesh, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Working Capital loans banks secured	0.000	22.867
Total	0.000	22.867
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Directors	33.676	19.980
From Others	0.000	0.501
Total	33.676	20.481

Banking Relations :	--
Auditors :
Name :	S. Daga and Company Chartered Accountants
Address :	403, Paigh Plaza, Basheerbagh, Hyderabad-500063, Andhra Pradesh, India
Tel. No.:	91-40-23231740
Income-tax PAN of auditor or auditor's firm :	AAGFS3672J
Group Companies:	Ø Pragati Offset Private Limited Ø Pragati Pack (India) Private Limited Ø Pragati Flexo Private Limited
Subsidiaries :	Ø Pragati Pack (India) Private Limited Ø Pragati Flexo Private Limited
Associate :	Ø Medrc Edutech Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs. 100/- each	Rs. 5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
41232	Equity Shares	Rs. 100/- each	Rs. 4.123 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		4.123	4.123	4.123
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1185.016	1046.283	936.353
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1189.139	1050.406	940.476
LOAN FUNDS
1] Secured Loans		0.000	22.867	0.000
2] Unsecured Loans		33.676	20.481	18.675
TOTAL BORROWING		33.676	43.348	18.675
DEFERRED TAX LIABILITIES		19.603	17.838	18.370
TOTAL		1242.418	1111.592	977.521
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		492.844	337.728	285.062
Capital work-in-progress		0.000	67.269	12.730
INVESTMENT		115.187	104.065	73.720
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	96.154	143.416	154.747
	Sundry Debtors	224.169	170.689	142.931
	Cash & Bank Balances	98.594	120.665	128.044
	Other Current Assets	0.335	3.393	2.185
	Loans & Advances	447.182	335.855	335.652
Total Current Assets		866.434	774.018	763.559
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	25.907	24.852	17.457
	Other Current Liabilities	132.055	87.165	77.905
	Provisions	74.085	59.471	62.188
Total Current Liabilities		232.047	171.488	157.550
Net Current Assets		634.387	602.530	606.009
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1242.418	1111.592	977.521

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	TURNOVER		1080.125	854.568	780.471
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	821.562	641.141	572.520
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		258.563	213.427	207.951
Less/ Add	DEPRECIATION/ AMORTISATION		50.557	51.951	53.979
	PROFIT BEFORE TAX		208.006	161.476	153.972
Less	TAX		69.273	51.546	53.749
	PROFIT AFTER TAX		138.733	109.930	100.223
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		706.628	636.698	576.475
Less	APPROPRIATIONS
		Transfer to General Reserve	40.000	40.000	40.000
	BALANCE CARRIED TO THE B/S		805.361	706.628	636.698
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	53.040	50.803	53.514
	TOTAL EARNINGS		53.040	50.803	53.514
	IMPORTS
		Raw Materials	6.590	18.941	13.827
		Stores & Spares	1.624	0.355	6.614
		Capital Goods	26.664	55.535	5.841
		Royalty	3.877	2.288	0.191
		Traveling Expenses	1.564	1.154	0.849
		Subscription & Membership	0.144	0.000	0.000
		Tender Fee	0.010	0.000	0.000
	TOTAL IMPORTS		40.473	78.273	27.322
	Earnings Per Share (Rs.)		3365	2666	2431

Particulars	31.03.2012
Sales Turnover (Approximately)	1250.000

Expected Sales ( 2012 - 2013 ) : Rs. Rs. 1400.000 Millions

The above information has been parted by Mr. Deepak (Accountant)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Net Profit Margin (PBT/Sales)	(%)	19.26	18.90	19.73
Return on Total Assets (PBT/Total Assets}	(%)	15.30	14.52	14.68
Return on Investment (ROI) (PBT/Networth)		0.17	0.15	0.16
Debt Equity Ratio (Total Liability/Networth)		0.22	0.20	0.19
Current Ratio (Current Asset/Current Liability)		3.82	4.51	4.85

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1. Year of Establishment	Yes
2. Locality of the firm	Yes
3. Constitution of the firm	Yes
4. Premises details	Yes
5. Type of Business	Yes
6. Line of Business	Yes
7. Promoter’s background	Yes
8. No. of Employees	Yes
9. Name of person contacted	Yes
10. Designation of contact person	Yes
11. Turnover of firm for last three years	Yes
12. Profitability for last three years	Yes
13. Reasons for variation <> 20%	--
14. Estimation for coming financial year	No
15. Capital in the business	Yes
16. Details of sister concerns	Yes
17. Major suppliers	Yes
18. Major customers	Yes
19. Payments terms	Yes
20. Export / Import details	Yes
21. Market information	--
22. Litigations that the firm / promoter involved	--
23. Banking Details	Yes
24. Banking facility details	Yes
25. Conduct of the banking account	--
26. Buyer visit details	--
27. Financials, if provided	Yes
28. Incorporation details, if applicable	Yes
29. Last accounts filed at ROC	Yes
30. Major Shareholders, if available	Yes

TRADE REFERENCES

Ø Asian Paints Limited

Ø Balharpur Industries

REVIEW OF OPERATIONS:

The turnover of the company showed an increase of 26.38% over the previous year. They have achieved three digit turnover. A history of sorts. Crossed 1000.000 millions. It is indeed a great feeling that they have reached 1080.000 millions. A very good year and a great feeling.

The global markets are in a turmoil again. The Dollar and Euro are choppy. Being a global economy, they will be affected by this choppiness. The silver lining is that the Indian Economy is doing okay. Primarily being not an export economy has helped. Most of the Investments needed have been done and they continue as a zero debt company. That is the main strength of the company. In the coming year they will consolidate and put more emphasis on systems and process efficiency improvements.

Their main clients Asian Paints, ITC and Dr. Reddys continue to do well and we are piggy backing on their success.

Next year they will complete 49 years and enter into their Golden Jubilee year. It goes without saying that they are thankful to all thier team members without whose unflinching support this would not have been possible.

CONTINGENT LIABILITIES:

Particulars	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Bank Guarantees	0.468	0.468
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)	0.000	15.000

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. 55.92
UK Pound	1	Rs. 86.03
Euro	1	Rs. 69.13

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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.