MIRA INFORM REPORT

Report Date :

11.01.2013

IDENTIFICATION DETAILS

Name :	PRESTO PACK SYSTEMS PRIVATE LIMITED

Registered Office :	Plot No. 83/B3, Phase 1, IDA Jeedimetla, Hyderabad - 500055, Andhra Pradesh

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	10.07.1996

Com. Reg. No.:	01-024593

Capital Investment / Paid-up Capital :	Rs. 0.486 Million

CIN No.: [Company Identification No.]	U21014AP1996PTC024593

IEC No.:	0998006866

TAN No.: [Tax Deduction & Collection Account No.]	HYDP01989B

PAN No.: [Permanent Account No.]	AABCP7008F

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer and Exporter of Packaging Machinery.

No. of Employees :	40 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (26)

RATING

STATUS

PROPOSED CREDIT LINE

26-40

Capability to overcome financial difficulties seems comparatively below average.

Small

Maximum Credit Limit :	USD 8000

Status :	Moderate

Payment Behaviour :	Slow

Litigation :	Clear

Comments :	Subject is a relatively small company in its field. Its scale of activities is limited. The management of the company has failed to file its financials with the government department since 2010. Mr. Y. Srinivas Reddy, Director has provided us with all the details. However, financial are not verified. Trade relations are reported as fair. Business is active. Payment terms are reported as slow. The company can be considered for business dealings with some caution.

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 – June 30, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Y. Srinivasa Reddy
Designation :	Director
Contact No.:	91-40-25094166
Date :	08.01.2013

LOCATIONS

Registered Office/ Factory :	Plot No. 83/B3, Phase 1, IDA Jeedimetla, Hyderabad - 500055, Andhra Pradesh, India
Tel. No.:	91-40-25094166/ 23093890/ 23096659
Mobile No.:	91-9849542226 (Mr. Y. Srinivasa Reddy)
Fax No.:	91-40-25093124
E-Mail :	presto@prestopacksystems.com prestopack@gmail.com
Website :	http://www.prestopacksystems.com
Area :	450 sq. mtr.
Location :	Owned

DIRECTORS

AS ON 25.09.2010

Name :	Mr. Chamallamudi Umamaheswar Rao
Designation :	Managing director
Address :	Plot No. 1-2-28, Gayatris Parameshwari Ni Laxmi, Flat No. 102, Kukatapally, Hyderabad-500072, Andhra Pradesh, India
Date of Birth/Age :	02.02.1967
Date of Appointment :	10.07.1996
DIN No.:	00432097

Name :	Mr. Yemreddy Srinivasa Reddy
Designation :	Director
Address :	HI GA 837484, Flat No. LA3, Pedapudi Towers, 6^th Phase, KP HB Colony, Hyderabad-500072, Andhra Pradesh, India
Date of Birth/Age :	29.01.1969
Date of Appointment :	10.07.1996
DIN No.:	00432354

Name :	Mr. Kori Venkat Rao
Designation :	Director
Address :	Meenakshi Residency, H. No.24-26, Flat No. 44, Patware Enclave, Hyderabad-500037, Andhra Pradesh, India
Date of Birth/Age :	08.01.1971
Date of Appointment :	10.07.1996
DIN No.:	00432243

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 25.09.2010

Names of Shareholders		No. of Shares
Chamallamudi Umamaheswar Rao		1620
Kori Venkata Rao		1620
Yemireddy Srinivasa Reddy		1620
Total		4860

AS ON 25.09.2010

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 Machinery.

Products :	Ø Automatic Form Fill and Seal Machines Ø Packaging and Wrapping Machines Ø Liquid Packaging Machines Ø Pouch Packaging Machines Ø Sachet Packaging Machines Ø Packaging Machines and Parts

Exports :
Products :	Packaging Machinery
Countries :	Ø South Africa Ø Bangladesh Ø France

Terms :
Selling :	Cash and Credit

Purchasing :	Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Licensed Capacity	Installed Capacity	Actual production
Machine	Not Applicable	Not Applicable	62

GENERAL INFORMATION

Customers :

Others (Manufacturer Company)

No. of Employees :

40 (Approximately)

Bankers :

Ø State Bank of India, Jeedimeto Branch, Hyderabad – 500055, Andhra Pradesh, India

Ø HDFC Bank, Secunderabad Branch, Andhra Pradesh, India

Ø Kotak Mahindra Bank

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Loan from Kotak Mahindra Bank – Vehicle Loan	0.988	0.000
Total	0.988	0.000


Banking Relations :	--

Auditors :
Name :	P Krishna and Company Chartered Accountants
Address :	# 404, 4^th Floor, Bhavya’ S Srisailam Arcade, Above Food World, Dharmkaram Road, Ameerpet, Hyderabad-500016, Andhra Pradesh, India
Income-tax PAN of auditor or auditor's firm :	AACFP2642P

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount

5000	Equity Shares	Rs. 100/- each	Rs. 0.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

4860	Equity Shares	Rs. 100/- each	Rs. 0.486 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		0.486	0.486	0.486
2] Share Application Money		0.413	0.413	0.413
3] Reserves & Surplus		1.145	0.742	0.734
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2.044	1.641	1.633
LOAN FUNDS
1] Secured Loans		0.988	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.988	0.000	0.000
DEFERRED TAX LIABILITIES		0.045	0.128	0.014

TOTAL		3.077	1.769	1.647

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		3.807	1.480	1.509
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		0.000	0.000	0.725
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.182	0.125	0.430
	Sundry Debtors	0.799	1.612	1.346
	Cash & Bank Balances	1.019	1.448	0.432
	Other Current Assets	0.000	0.000	0.778
	Loans & Advances	1.225	0.390	0.209
Total Current Assets		3.225	3.575	3.195
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3.039	2.683	2.549
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	0.916	0.603	1.233
Total Current Liabilities		3.955	3.286	3.782
Net Current Assets		(0.730)	0.289	(0.587)

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		3.077	1.769	1.647

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Income	14.045	12.180
		Other Income	0.201	0.151
		TOTAL (A)	14.246	12.331

Less	EXPENSES
		Raw Material Consumed	6.012	6.757
		Manufacturing Expenses	3.489	1.699
		Employees Cost	0.600	0.439
		Administrative and Selling Expenses	3.224	2.268
		Increased and (Decreased) In Stock	0.000	0.778
		TOTAL (B)	13.325	11.941

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		0.921	0.390

Less	FINANCIAL EXPENSES (D)		0.066	0.013

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.855	0.377

Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.444	0.160

	PROFIT BEFORE TAX (E-F) (G)		0.411	0.217

Less	TAX (I)		0.009	0.209

	PROFIT AFTER TAX (G-I) (J)		0.402	0.008

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.742	0.734

	BALANCE CARRIED TO THE B/S		1.144	0.742

	Earnings per share (Rs.)

Particulars

31.03.2012

31.03.2011

Sales Turnover (Approximately)

14.000 (Approximately)

14.000

The above information has been parted by Mr. Y. Srinivas Reddy (Director)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.82	0.06	NA

Net Profit Margin (PBT/Sales)	(%)	2.93	1.78	NA

Return on Total Assets (PBT/Total Assets}	(%)	5.84	4.29	NA

Return on Investment (ROI) (PBT/Networth)		0.20	0.13	NA

Debt Equity Ratio (Total Liability/Networth)		2.42	2.00	2.32

Current Ratio (Current Asset/Current Liability)		0.82	1.09	0.84

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions 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 two years	Yes
12]	Profitability for last two 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	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
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	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

FINANCE:

The company has achieved a turnover of Rs. 14.045 Millions during the year ending 31.03.2010. the company has achieved Net profit of Rs. 0.410 Million after charging depreciation of Rs. 0.443 Million. The company has achieved good results during the year. The company’s current position is good.

FIXED ASSETS:

Ø Land

Ø Buildings

Ø Plant and Machinery

Ø Furniture and Fixture

Ø Vehicles

Ø Electrical Equipments

Ø Fax Machine

Ø Computer

Ø Office Equipment

Ø Cell Phone

Ø Car

Ø Generator

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 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 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. 54.63
UK Pound	1	Rs. 87.50
Euro	1	Rs. 71.32

INFORMATION DETAILS

Information Gathered by :	PDT

Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		26

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.

MIRA INFORM REPORT

0.182

0.430

0.799

1.346

1.019

0.432

0.000

0.778

1.225

0.209

3.225

3.039

2.549

0.000

0.000

0.916

1.233

3.955

3.782

(0.730)

(0.587)

2.82

2.93

5.84

0.20

2.42

2.32

0.82

0.84

Unit