Dear friend,

This, my first communication with you, is appropriately o the theme of customer care and priority for Praga in the coming years. We know that customer satisfaction is the first key to Business Growth.

From the time I had taken over charge of Praga towards end of last year, I was aspiring for introduction of this communication channel. But before this, I had to gain confidence and assure myself on the working of this organisation. It took me some time to closely study and consolidate the strengths. I am now confident that our team has tremendous potentialities to take this company to greater heights. They only require the clear direction and vision. As a team leader, I have set Vision to Praga - a) To become one of the best 3 machine tool companies of India by the year 2005. b) manufacturing quality products at reasonable costs. c) Continuous product upgradation. Praga has started working towards reaching this goal.

Like any other machine tool industry, Praga has faced severe stress and strain in the past. Any company having business ethics and set principles may temporarily look faded due to circumstances beyond its control but the values and principles of the company will certainly change the phase. I feel, Praga's ethics of Quality supplies and value for Customer care have helped it regain the customers confidence.

We at Praga have made rapid strides with improved customer services, shortest possible delilveries, effecting supplies against backlog/pending orders etc. In the past, the performance was rather gloomy and today there is a total transformation in the work culture and confidence in the employees. Praga is now executing the orders of machines, accessories and spares with shortest possible delivery time. The title of this News letter is now changes as Today's Praga which is highly relevant to the present progress. The mechanics of Today's Praga is simple. The real Engine is knowledge based skilled people, their motivation and attitude towards customer care.

Once a customer is always a customer: This way Praga would like to serve our esteemed clients. We have created two new groups - Customer Care and Business Development in Marketing Dept. to specifically attend to customer requirements and respond to customer priorities. Customers from small & Medium Enterprises (SMEs) have quickly responded for their requirements in the areas of reconditioning, retrofitting, supply of spares etc. for the machines earlier supplied by Praga.

Praga looks forward to meet challenges and penetrate into new areas. Praga accepts the new challenges which gives the feeling of exhilaration of success. We are not complacent with the current progress. We have entered new work areas like 'Reconditioning, Refurbishing of machinery, precision job works etc. Customer response in these areas is quite encouraging. Export is another key area attracting our attention. Even, developed countries like Italy are importing machinery worth seven times of our country's total machine tool production. We are making efforts to tap this opportunity with the help of contacts we have already developed.

We will work closely with our customer to create an environment conducive to care, satisfaction and competitiveness in price and delivery. We at Praga shall enlarge and improve the services to delight our customers.

Happily, There isnow an alignment in the overall quality, competitive cost and delivery in time.

I would valu7e your comments and suggestions for improving our services and seek your help and support in my endeavor.

With Best Wishes

- KISHAN MEHROTRA

CNC CUTTER & TOOL GRINDER

Praga has come out with a 4 - Axes CNC Cutter & Tool Grinder Model 425-4X-P which is of solid compact design, easier to operate ata avery fast rate, versatile, consistent & highly accurate. It has innovative solutions for difficult grinding problems. It is invaluable in industry, where modern toolings and machine techniques

constantly demand correctly sharpened cutters due to the its ability to perform a wide range of tool and cutter grinding operations with maximum efficiency. Practically, every type of tool commonly used in workshops including milling cutters, gear cutter hobs and other tools with spiral cutting edges can be sharpened using the wide selection of equipment which are available as its standard and optional accessories. A wide range of optional equipment makes the machine more versatile for cylindrical, internal and surface grinding operations as well.

THE CHANGING FACE OF PRAGA

Nowdays, we at Praga are often confronted with a common regrain that "Praga is not operational". The canard has affected the organisation, more particularly the workmen and as a result the morale of the employees has taken a beating. Moreover due to the apathetic attitude of some past employees, the organisation had lost many valued customers. The main reason was delayed deliveries. The task on hand is to repair this damaga and build up the credibility in the minds of customers like you.

Hence, through this newsletter, we would like to stay in touch with you and dvelop strong relationships. We are alive and doing marvelously well.

Since October 2001, when our present Managing director, Mr. Kishan Mehrotra, assumed office, we have been witnessing changes in the working environment of Praga was earlier rolling in motion without direction. But now it has clear direction - that of Customer Care & Satisfaction. All of us, owe it to our customer who had given this direction to walk this extra mile.

As an organisation, Praga believes in quality which is its hallmark but occasionally we fail to delight our customer in meeting their tight delivery schedule. The good companies are good only because they have got the wisdom through failures. Failure is only the opportunity to begin again mokre intelligently.

Today, Praga is delivering machine tools, accessories and spares well within customer's expectations. The after sales services has also become very prompt and tuned to customer's needs. The complaints are now being attended promptly. This is just to remind that, our most important Ability is Reliability.

We are now committed to progress and success. Only tow events yield progress. Thinking and working towards customer's needs. We at Praga believe in the four letter word that describes every good things that happens - Work. The key cause of lost customer is people - our ex-colleagues, but now we have people who realloy want to care for the customer and build the type of relationships that give sustainable success.

Praga's momentum is gained by focusing on what remains to be dome but not by focusing the past accomplishments. Hence we strongly believe in the dictum of focusing and staying focused on the customer:

"We do, what we do Best"

Recent Developments and Happenings:

PRAGA has developed the
a) First Pulley forming machine which can produce pulley in 40 sec.. This machine is the onlye machine of its kind in India.
b) Force feed attachment and modified universal joints for Thread rolling machines.

PRAGA has delivered
a)Two thread rolling machines to M/S. Micron Industries-Chennai.
b) One Thread rolling machine each to M/S. Reva Transmission, Faridabad, M/S. Eloquent-Pune and M/S.Hiten Fasteners-Banglore recently. These machines were delivered within a month of receipt of orders from the above customers.

PRAGA has sold Surface Grinding machines one each to M/S. L. G. Balakrishna & Bros - Coimbatore, M/S R.G.Bronze-Chennai and M/S. Vasanta Tools-Hyderabad in the month of June, 2002. These machines were delivered wihtin One Week after the pl;acement of the order by the customer.

PRAGA has also supplied Cutter and Tool Grinder on each to M/s. Dension Hydraulics - Hyderabad and M/s.Sai Tools-Banglore recently, which were despatched within Two Weeks after the placement of the order by the customer.

PRAGA has supplied Tracj Shoe Assembly to VRDE for their Abhay Project and sophisticated components on job order basis to Aeronautical Development Agency (ADA), Banglore, for their light combat aircraft (LCA) Projects/Saras Project.

PRAGA has despatched

a) Once CNC Lathe to Ordnance Factory-Trichy and one CNC Lathe to Ordance Factory-Kanpur recently.
b) One Milling Machine to Punjab Tractors - Chandigarh.
c) Critical spares for GF copy lathes, Thread Rolls and Control System Spares of CNC Machining Centre and CNC Lathe to Defence and Railways ensuring continuioty in their production.

PRAGA will be despatching the CNC Horizontal Machining Centre-H-60B to Central Organisation for Modernisation of Workshops (Cofmow) in the month of August 2002. The machine is at an advanced stage of completion.

RETROFITTING & RECONDITIONING:

PRAGA has embarked in a big way to retrofit and recondition old machine tools with the sole purpose of making them " as good as new" in regard to performance and accuracy of the machines.

PRAGA has already reconditioned several machines for various customers. Recently, PRAGA has been given the order to recondition CNC Horizontal Machining Centre from Heavy Vehicle Factory, Avadi.

For your reconditioning or Retrofitting needs, Please contact A.G.M(Business Development), Praga Tools Limited.

Do you Know that Praga since inception has supplied to Indian Industry?

Do you know about Praga's competence?

The single most important competency that Praga has acquired is the state of art Engineering know how achieved over 60 years of dedication, hard work and through Technical collaboration with the world renowned manufacturers of machine tools like:

Pulley Forming Machine

Praga Tools Limitd has been manufacturing a unique range of cold form rolling machines (CFR) since 1971. We are prouid to say that we are pioneers and leaders in the field of cold form riolling machines. With the long and proven experience gained, we have developed and added one more machine that is pulley forming machines to our product range. The pulley is an unique application of cold form rolling where 'v' belt pulley can be rolled from a flat

circular blank with central hole. The pulley produced by rolling is known as split pulley. The conventional way of making pulleys involves, casting, machining, grooving balancing etc. which takes several days to turn out a single pulley. On our cold forming machine a pulley can be rolled from a punched blank to final pulley within 40 to 50 seconds. The salient features of the machine are very high productivity, high accuracles, consistency, durability and economy. This is very useful for Automobile and Electric Motor Industries.

VISITS OF DIGNITARIES

The following dignitaries visited Praga recently

Shri Mukul Kumar
-Director, Department of Heavy Industries, Govt. of India.

Shri B.R. Suri
- Chief Manager; State Bank of Hyderabad. Shri G.S. Murthy - AGM; State Bank of Hyderabad.

Shri A. Srinivasa Kumar
-Principal Director Commercial Aditor. & Exofficio Member(MAB), Hyderabad.

Col. Atul Mishra - VRDE, Ahmadnagar.

Shri S.D. Kapoor - C&MD, MMTC - New Delhi.

Shri I. Vinobha Naidu -Addl. Director, Commissionerate of Industries, Govt. of A.P.

A delegation of Nigeria Machine Tools has visited PRAGA Tool LTd., on 22-6-2002. The members of the delegation were as follows:

Mr. ADEBOLA O.OGUTUGA
-First Counsekkir (Economic & Commercial) - Nigeria

Mr. S.A. ADENIYI
-Asst. Director, Federation Ministry of "Industry - Nigeria

Mr. D. MAKANJUOLA
-Managing Director (Nigeria Machine Tools - Nigeria)

ENGR M.B.IBITOLU -Asst. General Manager (Engg.) - NMT

: Some of the comments are reproduced below:

NEW PEODUCT

PRAGA has entered into an agreement with Agmachine Techno Co.Ltd., Taiwan for marketing CNC Vertical Machining Centre in India. Praga will provide after sales service for Agmachine in INdia. The Vertical Machining Centre are state of the art machines manufactured with a high degree of precision reliability and low cost. These machines are highly popular in the North American market. This is for the first time that Agma Vertical Machining Centre will be sold in the Indian Market with the full back up support of PRAGA TOOLS LTD, thus assuring availability of vital spares and service on time. Taiwan's largest aerospace manufacturer had chosen AGMA's CNC Machining Centres, to machine their turbine engine parts. Several of AGMA's 5 Axis Mechining Centres are currently being used to machine the delicate & sophisticated turbine engine blades.

PRAGA entered into world wide web by launching its own web site to keep pace with fast changing global scenario and expanding its reach to customers all over the world. The site got tremendous response with more than 6000 hits recorded so far and generating a large number of enquiries. The site covers comprehensive technical details of PRAGA product range, facilities available, service provided by Praga direct interaction with customers through web site and details of Praga's regional offices all over India. The site also has hyper links of Praga's important associates.

Prospective customers can now get instantaneous response regarding their requirements, clarifications, quotations and delivery status of ordered machines through this facility. One needs to just login and convey us their problems / requirements.