MIRA INFORM REPORT

Report Date :

05.09.2012

IDENTIFICATION DETAILS

Name :	RING PLUS AQUA LIMITED (w.e.f. 30.05.1999)
Formerly Known As :	AQUA BEARINGS LIMITED
Registered Office :	D-3, 4, Sinnar Taluka Audyogik Vasahat Maryadit, Village Musalgaon, Taluka Sinnar, Nasik – 422 112, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	11.09.1986
Com. Reg. No.:	11-040885
Capital Investment / Paid-up Capital :	Rs.76.066 Millions
CIN No.: [Company Identification No.]	U99999MH1986PLC040885
TAN No.: [Tax Deduction & Collection Account No.]	MUMR14476A
PAN No.: [Permanent Account No.]	AABCR3220M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Starter Ring Gears, Flexplates and Shaft Water Pump Bearings, all being automotive components.
No. of Employees :	500 (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 2700000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions. Note: Latest financial i.e. 2011-2012 is not available.

NOTES:

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

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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	AA- (Long Term Bank Facilities)
Rating Explanation	Having high degree of safety regarding timely servicing of financial obligation it carry low credit risk.
Date	June, 2012

Rating Agency Name	CARE
Rating	A1+ (Short Term Bank Facilities)
Rating Explanation	Having very strong degree of safety regarding timely payment of financial obligation, it carry lowest credit risk.
Date	June, 2012

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. Sandeep More
Designation :	Account Manager
Contact No.:	91-22-61527654
Date :	04.09.2012

LOCATIONS

Registered Office/ Factory 1 :	D-3, 4, Sinnar Taluka Audyogik Vasahat Maryadit, Village Musalgaon, Taluka Sinnar, Nasik – 422 112, Maharashtra, India
Tel. No.:	91-2551-240236/ 240172/ 240128/ 240872/ 240087
Fax No.:	91-2551-240250
E-Mail :	priti.alkari@raymond.in sandeep.more@ringplusaqua.com uma.ram@ramond.in info@ringplusaqua.co.in ghs@raymond.in bkchaturvedi@gmail.com laxman.katakkar@ringplusaqua.co.in
Website :	http://www.ringplusaqua.com
Location :	Owned
Corporate Office 1:	Laxmi Niwas, R.C. Patel Road, Borivali (West), Mumbai, Maharashtra, India.
Corporate Office 2:	2^nd Floor, J. K. Files (India) Limited, Annex Building, Jekegram Pokhran Road No.1, Thane – 400606, Maharashtra, India
Tel. No.:	91-22-61527000
Fax No.:	91-22-61527670
Factory 2 :	A-16/17, Sinnar Taluka Co-operative Industrial Estate, Sinnar, District Nashik – 422112, Maharashtra, India
Tel. No.:	91-2551- 240087
Fax No.:	91-2551- 240997
E-Mail :	aqua@gnpun-rpal.global.net.in

DIRECTORS

(AS ON 01.06.2012)

Name :	Mr. Gautam Hari Singhania
Designation :	Chairman
Address :	J.K. House, 59A, Bulabhai Desai Road, Mumbai – 400 026, Maharashtra, India
Date of Birth/Age :	09.09.1965
Date of Appointment :	11.08.2010
DIN No.:	00020088
Name :	Mr. Harshal B. Jayavant
Designation :	Director
Address :	Flat No.1505, Building Burlington, Hiranandani Estate, Thane – 400 607, Maharashtra, India.
Date of Birth/Age :	19.12.1958
Date of Appointment :	08.08.2005
DIN No.:	00020998
Name :	Mr. Sunder Hariharan
Designation :	Director
Address :	Flat No.5C, Regency Park B, Eden Woods Complex, Gladys Alvares Marg, Thane – 400 610, Maharashtra, India
Date of Birth/Age :	26.07.1959
Date of Appointment :	08.08.2005
DIN No.:	00020583
Name :	Mr. Bhuwan Kumar Charurvedi
Designation :	Additional Director
Address :	4503, Phase – IV, DLF City, Gurgaon – 122 009, Haryana, India
Date of Birth/Age :	06.03.1948
Date of Appointment :	11.08.2010
DIN No.:	00144487
Name :	Dr. Parvinder Singh Pasricha
Designation :	Director
Address :	28, Amber Narayan Dabholkar Road, Malabar Hill, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	11.11.1947
Date of Appointment :	19.04.2011
DIN No.:	02947755
Name :	Mr. Jasmeet Singh Ushpal Singh Sabharwal
Designation :	Director
Address :	1302, Ocean View, Union Park, Pali Hill, Khar (West), Mumbai – 400 052, Maharashtra, India
Date of Birth/Age:	21.07.1972
Date of Appointment :	19.04.2011
DIN No.:	00270607
Name :	Mr. Laxman Prabhakar Katakkar
Designation :	Whole time Director
Address :	Flat No.1303, Takshashila Apartment, Nirmal Nagar, Goregaon-Mulund Link Road, Mulund (West), Mumbai – 400 080, Maharashtra, India
Date of Birth/Age:	11.06.1965
Date of Appointment :	26.07.2011
DIN No.:	03143379

KEY EXECUTIVES

Name :	Mr. Vinod Rang Lal Verma
Designation :	Secretary
Address :	Flat No.401, 4^th Floor, B-Wing, Govind, M.G. Complex, Sector-14, Vashi, New Mumbai, Thane – 400 703, Maharashtra, India
Date of Birth/Age:	15.08.1967
Date of Appointment :	23.07.2008
PAN No.:	AALPV9031D
Name :	Mr. Sandeep More
Designation :	Account Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

SHAREHOLDING DETAILS FILE ATTACHED

(AS ON 02.09.2012)

Equity Shares Break – up

Category	Percentage
Government companies	3.25
Bodies corporate	90.77
Other top fifty shareholders	2.34
Others	3.64
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Starter Ring Gears, Flexplates and Shaft Water Pump Bearings, all being Automotive Components.

Products :

Products Description	Item Code No.
Integral Shaft Water Pump Bearings	8708990
Bearing Components	8708990
Starter Ring Gears used in Engines	8708990
Ring Blanks	8708990
Flexplate Assemblies (Flywheel Ring Gears and Flexplate assemblies)	8708990

Exports :

Products :

· Starter Ring Gears

· Flexplates and Shaft Water Pump Bearings

· All being Automotive Components.

Countries :

· USA

· Europe

· Germany

· Italy

Imports :

Products :

Raw Materials

Countries :

· China

· Korea

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Units of Measurement	2009-2010
Installed Capacities
Bearings	Numbers	30,00,000
Gears	Numbers	30,00,000
Flexplates	Numbers	2,00,000
Hubs	Numbers	4,50,000
Actual Production
Bearings	Numbers	21,66,677
Gears	Numbers	19,45,567
Flex plates	Numbers	36,177
Hub	Numbers	28,069

NOTE:

i) Licensed Capacity: De-licensed and therefore Not Applicable

ii) The Installed capacities have been certified by the management and relied on by the auditors without verification, this being a technical matter.

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

· Cardone Industries

· Venture Products International

· Deca Incorporation

No. of Employees :

500 (Approximately)

Bankers :

· HDFC Bank Limited

HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India

· The Saraswat Co-operative Bank Limited

SME Vile Parle Branch, Bholanath Co-operative Housing Society, Subhash Road, Vile Parle East, Mumbai – 400057, Maharashtra, India

· The Saraswat Co-operative Bank Limited

Borivli Branch , Borivli (West), Mumbai – 400092, Maharashtra, India

· Axis Bank Limited

Corporate Banking Branch, Ground Floor, Axis House, Bombay Dyeing Mill Compound, P.B. Marg, Worli, Mumbai – 400025, Maharashtra, India

Facilities :

Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Deferred sales tax loan unsecured	50.934	51.605
Total	50.934	51.605

Banking Relations :	--
Auditors :
Name :	Lodha and Company Chartered Accountants
Address :	6, Karim Chambers, 40, Hamam Street, Ambalal Doshi Marg, Fort, Mumbai – 400 001, Maharashtra, India.
Tel No.:	91-22-4002114/ 22651190/ 22691414/ 22691515
Fax No.:	91-22-22650126
Email :	mumbai@lodhaco.com
PAN No.:	AABFL1894Q
Holding Company :	· Scissors Engineering Products Limited CIN No.: U29130MH2005PLC154732
Ultimate Holding Company :	· Raymond Limited
Subsidiary Company :	· R and A Logistics Inc., U.S.A.
Fellow Subsidiary Companies :	· Celebration Apparels Limited · Everblue Apparel Limited · Pashmina Holding Limited · Raymond Woolen Outwear Limited · J.K. Files (India) Limited · Colourplus Fashions Limited · Jaykayorg AG · J.K. England Limited · Regency Textiles Portuguesa Limited · Silver Spark Apparel Limited
Joint Venture :	· Rose Engineered Products India Private Limited
Other associates with whom transactions were entered into during the year :	· Raymond Apparel Limited

CAPITAL STRUCTURE

(AS ON 01.06.2012)

Authorised Capital:

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
7606634	Equity Shares	Rs.10/- each	Rs.76.066 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		76.066	76.066	76.066
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		599.474	486.601	435.813
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		675.540	562.667	511.879
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		50.934	51.605	72.997
TOTAL BORROWING		50.934	51.605	72.997
DEFERRED TAX LIABILITIES		33.727	35.073	42.109
TOTAL		760.201	649.345	626.985
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		260.921	266.795	268.224
Capital work-in-progress		53.988	6.580	9.894
INVESTMENT		203.315	94.693	57.422
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	143.187	101.040	91.945
	Sundry Debtors	236.451	210.915	161.306
	Cash & Bank Balances	30.653	103.869	85.826
	Other Current Assets	17.632	14.286	21.875
	Loans & Advances	40.485	30.902	43.043
Total Current Assets		468.408	461.012	403.995
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	196.274	149.394	87.881
	Other Current Liabilities	19.433	14.099	8.723
	Provisions	10.724	16.242	15.946
Total Current Liabilities		226.431	179.735	112.550
Net Current Assets		241.977	281.277	291.445
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		760.201	649.345	626.985

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Operating revenue, net	1088.572	764.518	806.511
		Other Income	68.732	37.008	12.867
		TOTAL (A)	1157.304	801.526	819.378
Less	EXPENSES
		Consumption materials changes inventories	623.114	416.108	733.318
		Manufacturing service costs	102.858	74.309
		Employee related expenses	149.137	119.882
		Administrative selling other expenses	71.975	67.925
		TOTAL (B)	947.084	678.224	733.318
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		210.220	123.302	86.060
Less	INTEREST FINANCIAL EXPENSES (D)		0.050	0.032	0.097
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		210.170	123.270	85.963
Less/ Add	DEPRECIATION/ AMORTISATION (F)		45.596	45.020	40.982
	PROFIT BEFORE TAX (E-F) (G)		164.574	78.250	44.981
Less	TAX (H)		51.702	27.461	15.567
	PROFIT AFTER TAX (G-H) (I)		112.872	50.789	29.414
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		350.170	299.381	269.967
	BALANCE CARRIED TO THE B/S		463.042	350.170	299.381
	EARNINGS IN FOREIGN CURRENCY
		Export of goods calculated on FOB basis	608.125	404.979	425.963
		Management fees received/ accrued		0.384	0.739
		Others		0.474	0.535
	TOTAL EARNINGS		608.125	405.837	427.237
	IMPORTS
		Capital Goods	NA	4.555	9.489
		Raw Materials & Components	NA	17.407	9.548
		Consumables	NA	1.357	1.705
	TOTAL IMPORTS		NA	23.319	20.742
	Earnings Per Share (Rs.)		14.84	6.68	3.87

Particulars	31.03.2012
Sales Turnover (Approximately)	1486.200

Expected Sales (2012-13): Rs1850.000. Millions

The above information has been parted by Mr. Sandeep More.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	9.75	6.34	3.59
Net Profit Margin (PBT/Sales)	(%)	15.12	10.24	5.58
Return on Total Assets (PBT/Total Assets}	(%)	22.57	10.75	6.69
Return on Investment (ROI) (PBT/Networth)		0.24	0.14	0.09
Debt Equity Ratio (Total Liability/Networth)		0.41	0.41	0.36
Current Ratio (Current Asset/Current Liability)		2.07	2.56	3.59

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2011	31.03.2010	31.03.2009
	(Rs. In Millions)
Sundry Creditors
-Creditor due small micro enterprises	0.801	0.000	0.055
-Creditor due others	195.473	149.394	87.826
Total	196.274	149.394	87.881

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	No
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	Yes
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	Yes
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	Yes

OVERVIEW

The Company is engaged in manufacture of Starter Ring Gears, Flexplates and Shaft Water Pump Bearings, all being automotive components. The company is a subsidiary of Scissors Engineering Products Limited which is a subsidiary of Raymond Limited

FINANCIAL RESULTS

The total revenue of the Company was at Rs.1165.500 millions (Previous Year: Rs.817.400 millions). While the revenue grew by around 42.5 percent the Net Profit after tax was at Rs.112.900 millions (Previous Year: Rs.50.800 millions) and registered a healthy growth of 122 percent. With significant growth trend in the Auto Industry, the Company for the first time crossed the milestone of gross sales turnover of Rs.1000.000 millions during the year.

APPROPRIATIONS

In order to conserve the resources of the Company to meet the requirements of the future expansion plans, the Directors do not recommend any dividend.

OPERATIONS

Starter Ring Gear

With recovery in global market and aggressive marketing efforts, the performance of Starter Gear Division has improved significantly in both domestic and international market. Overall Gear sales was 58% higher, at Rs.732.100 millions compared toRs.463.000 millions in the previous year. The export sales have doubled and domestic sale has recorded good growth of around 22% compared to previous year.

With growing demand the Company has decided to augment its capacity by 1.5 million gears during the year. This will take total ring gear capacity to 4.5 million gears per annum. The capacity expansion is progressing as per schedule and is expected to be complete by September 2011.

During the year the Company continued its efforts in developing new markets, winning new customers, making major in-roads into Asian, European and Latin American market. In domestic market also the Company continued to bag orders from prestigious Auto-OEMs.

Shaft Bearings

The performance of Shaft Bearings Division showed marginal growth during the year. The overall Bearings sales is increased by 3% at Rs.265.400 millions against Rs.257.300 millions in the previous year.

Flexplate Assembly

The sale of Flexplate Assembly was at Rs.27.900 millions against Rs.13.200 millions in the Previous Year.

The prices of steel, the major raw material for the Company’s products, were stable during first half of the year, but moved higher in second half of the year. The prices of other inputs, power etc., witnessed spiraling effects during the year. All these put pressure on profitability of the Company.

The Company strategically managed rising input costs by focusing on marketing, improvement in productivity/ process, yield Improvements effective implementation of TOC initiatives, control on costs, liquidity and better working capital management. The impact of foreign currency volatility was minimized with proper forex management.

PROSPECTS

The Global recovery coupled with significant growth trend in the Auto Industry is encouraging for the Company. Global production of vehicle is expected to grow at CAGR around 6% for over next five years. Domestic market continues to grow faster than international market at CAGR of around 15%.

JOINT VENTURE

The total revenue of the Joint Venture Company, Rose Engineered Products India Private Limited is Rs.179.100 millions (Previous Year Rs.75.600 millions). Loss before tax was at Rs.1.300 millions (Previous Year Rs.7.800 millions). The total sale of Sheet Metal Pulley was Rs.167.700 millions (Previous Year Rs.58.700 millions), which includes export sale of Rs.93.600 millions (Previous Year Rs.35.900 millions).

The Joint Venture Company has doubled its revenue during the year. Company continued its focus on high volume customers.

SUBSIDIARY COMPANY

The wholly owned subsidiary of the Company namely R and A Logistics INC., U.S.A. continues to cater to most of the Company’s customers in U.S.A.

CONTINGENT LIABILITIES NOT PROVIDED FOR:

Particulars	31.03.2011 (Rs. in millions)
(a) Claims against the Company not acknowledged as debts (other than those which are not presently ascertainable)	1.325
(b) Disputed Customs duty	13.809
(c) Disputed Income Tax *	13.665
(d) Disputed Excise Duty *	0.459
* (excluding interest, if any)

FORM 8:

Corporate identity number of the company	U99999MH1986PLC040885
Name of the company	RING PLUS AQUA LIMITED
Address of the registered office or of the principal place of business in India of the company	D-3, 4, Sinnar Taluka Audyogik Vasahat Maryadit, Village Musalgaon, Taluka Sinnar, Nasik – 422 112, Maharashtra, India E-Mail: uma.ram@raymond.in
This form is for	Creation of charge
Type of charge	Book Debts Movable Property (not being pledge) Others: Raw Materials, Stock-in-process, Finished Goods.
Particular of charge holder	Axis Bank Limited Corporate Banking Branch, Ground Floor, Axis House Bombay Dyeing Mill Compound, P.B. Marg, Worli, Mumbai – 400025, Maharashtra, India ashokkumar.muvva@axisbank.com
Nature of description of the instrument creating or modifying the charge	Deed of Hypothecation of Current Assets (Stock and Book Debts) (DOH) dated, May 9, 2012.
Date of instrument Creating the charge	09.05.2012
Amount secured by the charge	Rs.50.000 millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest: Base rate + 2.25% i.e. at present 12.25% p.a. Terms of Repayment: For Cash Credit - on Demand. Margin: For Cash credit - Raw material - 25%, Stock-in-process - 25%, Finished Goods and Packaging material - 25%, Stores and Spares - 25%, Book debts - 30%. Extent and Operation of the charge: Cash Credit facilties of Rs.5.00 Crores secured are as specified in DOH. Security by hypo. of present and future stock of RM, SIP, FG etc., lying at Co's premises or godowns or elsewhere or in transit and present and future O/s money receivables, claims, etc. due and owing to Co. in the course of its business on pari passu basis.
Short particulars of the property charged	1st pari passu charge on all present and future stocks of RM, SIP, FG, wheresoever’s situated. 1st pari passu charge on all present and future book debts, outstanding money receivables, claims, bills, etc. due and owing to the Co. during the course of its business.

FIXED ASSETS:

v Land (Leasehold)

v Buildings

v Plant and Machinery

v Furniture and Fittings

v Vehicles

v Computer

v Office Equipments

v Software

NEWS:

RING PLUS AQUA TO INVEST RS.2000.000 MILLIONS TO EXPAND AUTO COMPONENTS BUSINESS

Saturday, 23 July 2011

Mumbai: Ring Plus Aqua Limited, a part of the Raymond group, plans to invest Rs.2000.000 Millions to expand its automotive components business. The company's product range includes Flywheel Starter Ring Gears, Flexplate Assemblies, Integral Shaft water pump bearings, Precision Sheet metal components.

The company plans to enter the forging segment, most likely through an acquisition, and plans to manufacture components ranging from connecting rods to axles. The company also plans to invest around Rs.200.000 Millions for expanding its production capacity from 3 million units to 4.5 million units by September 2011.

Ring Plus Aqua supplies starter rings to Honda, Hyundai, Ford and Tata Motors in India. According to media reports, the company is expected to begin supplies to Mercedes-Benz and BMW by December this year. Its flex plate assemblies, used for automatic transmission vehicles, are primarily supplied to overseas global giants. Ring Plus Aqua manufactures its automotive components at two separate locations in integrated factories at Sinnar near Nasik.

There was a 52% growth in the group's Auto Components Segment in FY11 at Rs.1320.000 Millions compared to Rs.870.000 Millions in FY10.

For the year ended March 31, 2011, Export market has been the key driver for the quarterly as well as the yearly sales. The year witnessed an Increased share of business from overseas customers. The Sales were up by 14% during the quarter. The company plans Capacity expansion to add Ring Gear and Bearings, planned to be commissioned by Q3FY12.

The gross turnover of the Company for the year ended March 31, 2011, was Rs.1165.500 Millions (Previous Year: Rs.817.400 Millions). Profit after Tax was at Rs.112.900 Millions (Previous Year: Rs.50.800 Millions). With significant growth trend in the Auto Industry, the Company crossed the milestone of gross sales turnover of Rs.1000.000 Millions during the year under review.

The Gear sales showed significant growth during the year under review and were higher by 58% at Rs.732.100 Millions as compared to Rs. 463.000 Millions in the previous year. The export sales have doubled and domestic sales have recorded good growth of around 22% compared to previous year. With growing demand, the Company has decided to augment its capacity by 1.5 million gears during the year under review, to take total Ring Gear capacity to 4.5 million per annum. The capacity expansion is progressing as per schedule and is expected to be complete by September 2011.

The sales for Bearing Division were marginally higher at Rs.265.500 Millions as compared to the previous year when it was Rs. 257.300 Millions. USA continued to be the major market for Bearing exports.

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.55.45
UK Pound	1	Rs.87.98
Euro	1	Rs.69.70

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	NIT

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	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		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.