BAPL Rototech Pvt. Ltd. 4 May 2018 Brickwork Ratings assigns the rating to the bank loan facilities of Rs.21 Cr of BAPL Rototech Pvt. Ltd.

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1 Rating Rationale BAPL Rototech Pvt. Ltd. 4 May 2018 Brickwork Ratings assigns the rating to the bank loan facilities of Rs.21 Cr of BAPL Rototech Pvt. Ltd. Particulars Facility* Fund Based Facility Limits ( ` Crs) Term Loan 6.00 Cash Credit 5.00 Capex LC (Sublimit of Term Loan) (6.00) Non-Fund Based Limits Letter of Credit / Buyer s Credit Bank Guarantee (Sublimit of LC) (2.00) Tenure Long Term Short Term Rating Assigned BWR BBB- (Pronounced as BWR Triple B Minus) Outlook - Stable BWR A3 (Pronounced as BWR A Three) *Rs Crs (Twenty One Crore only) Total * Please refer to BWR website for definition of the ratings BWR has principally relied upon the Audited financial results of BAPL Rototech Pvt. Ltd. (BRPL) for FY16 and FY17, provisional financials for FY18, projected financials till FY22, publicly available information and information/clarification provided by the Company management. Rating takes note of the fact that the company is 70% held by reputed Sintex-BAPL Ltd., and balance 30% by Italian Joint Venture partner Rototech S R L. The company has completed two year of operations at Pithampur, Madhya Pradesh, supplied its products to reputed automobile manufacturers and achieved cash break-even. The ratings are, however, constrained by the fact that the full manufacturing capacity has come on stream only in March 2018, scale of operations is small and ramping up of operations will take time. Analytical Approach BAPL Rototech is rated on a stand-alone basis. However, it is recognized that the company is a Joint Venture between Sintex-BAPL Ltd. (70%) and Italian Company Rototech S. R. L. (30%), with representation of both the companies on the board of BRPL. 1 4 May 2018

2 Key Risk Drivers for rating: Joint Venture of Reputed Companies: BRPL is a joint Venture company between Sintex-BAPL Ltd. (rated BWR AA- (Stable)) and Rototech S.R.L.(Italy)]. Rototech group, headquartered in Italy, is an established player in fuel tank space and has its facilities based out of Europe (Italy, France), China and Russia. The Board of BRPL currently comprises of 4 members from Sintex and 3 from Rototech. Reputed Clientele: Company has earned FY18 revenue from reputed clientele like Volvo, Tata Motors, Escorts and Mahindra. For FY19, the company has confirmed orders from Volvo, Tata Motors, EicherVolvo Japan, Dailer, Escorts,Cummins, Mahindra etc COD Achieved: At present the company has manufacturing plant situated in Pithampur, Indore, MP for doing business of manufacturing and / or assembling of the products by utilizing rotational moulding / or blow moulding technology. Manufacturing was started in March In near future, the company is planning to set a plant in Jamshedpur and JIT Centre in Pantnagar. Ramping up of operations will take time: Company has achieved COD for its first plant in May COD for the other two plants is expected in current financial year. As such, once all the plants start operations along with the expansion made in Pithampur Plant (addition of Blow Moulding Technology in ), company will be able to achieve a significant increase in turnover, from the current level of Rs crs.. Rating Outlook: Stable BWR believes that BRPL s business risk profile will be maintained over the medium term. The Stable outlook indicates a low likelihood of rating change over the medium term. The rating outlook may be revised to 'Negative' if the revenues go down and profit margins show lower than expected figures. Ramping up of operations and achieving break-even will remain the key rating sensitivity. About BRPL: BAPL Rototech Pvt. Ltd. (BRPL) is a joint venture company between Sintex-BAPL Ltd. and Rototech S.R.L. Italy, incorporated on August 20, 2015 having shareholding pattern of 70% and 30%, respectively. The company is into manufacturing of fuel tanks, Urea Tank and other exteriors parts for Commercial Vehicles. At present the company has manufacturing plant situated in Pithampur, Indore, MP for doing business of manufacturing and / or assembling of the products by utilizing rotational moulding / or blow moulding technology. Full-fledged manufacturing was started in June May 2018

3 Financials: Rs. Cr FY16 FY17 FY18 Audited Audited Provisional Revenue Operating Profit Net Profit Total Debt Tangible Networth Gearing (Times) 0.76 Current Ratio Rating History for the last three years: (including withdrawn/suspended ratings) Sl. No. 1. Instrument/Fa cility Term Loan Current Rating (Year 2018) Type (Long Term/Short Term) Long Term Amount 6.00 Rating History Rating BWR BBB- (Stable) Cash Credit Long Term 5.00 BWR BBB- (Stable) Letter of Credit Short Term BWR A3 Total Status of non-cooperation with previous CRA (if applicable): Reason and comments N/A Any other information: N/A 3 4 May 2018

4 Hyperlink/Reference to Applicable Criteria General Criteria Approach to Financial Ratios Manufacturing Sector For any other criteria obtain hyperlinks from website Analytical Contacts MSR Manjunatha Head Ratings Administration Media Relationship Contact Phone: For print and digital media The Rating Rationale is sent to you for the sole purpose of dissemination through your print, digital or electronic media. While it may be used by you acknowledging credit to BWR, please do not change the wordings in the rationale to avoid conveying a meaning different from what was intended by BWR. BWR alone has the sole right of sharing (both direct and indirect) its rationales for consideration or otherwise through any print or electronic or digital media. Note on complexity levels of the rated instrument: BWR complexity levels are meant for educating investors. The BWR complexity levels are available at Investors queries can be sent to info@brickworkratings.com. About Brickwork Ratings Brickwork Ratings (BWR), a SEBI registered Credit Rating Agency, has also been accredited by RBI and empaneled by NSIC, offers Bank Loan, NCD, Commercial Paper, MSME ratings and grading services. NABARD has empaneled Brickwork for MFI and NGO grading. BWR is accredited by IREDA& the Ministry of New and Renewable Energy (MNRE), Government of India. Brickwork Ratings has Canara Bank, a Nationalized Bank, as its promoter and strategic partner. BWR has its corporate office in Bengaluru and a country-wide presence with its offices in Ahmedabad, Chandigarh, Chennai, Guwahati, Hyderabad, Kolkata, Mumbai and New Delhi along with representatives in 150+ locations. BWR has rated debt instruments/bonds/bank loans, securitized paper of over 9,30,000 Cr. In addition, BWR has rated about 5000 MSMEs. Also, Fixed Deposits and Commercial Papers etc. worth over 19,700 Cr have been rated. Brickwork has a major presence in rating of nearly 100 cities. 4 4 May 2018

5 DISCLAIMER Brickwork Ratings (BWR) has assigned the rating based on the information obtained from the issuer and other reliable sources, which are deemed to be accurate. BWR has taken considerable steps to avoid any data distortion; however, it does not examine the precision or completeness of the information obtained. And hence, the information in this report is presented as is without any express or implied warranty of any kind. BWR does not make any representation in respect to the truth or accuracy of any such information. The rating assigned by BWR should be treated as an opinion rather than a recommendation to buy, sell or hold the rated instrument and BWR shall not be liable for any losses incurred by users from any use of this report or its contents. BWR has the right to change, suspend or withdraw the ratings at any time for any reasons. 5 4 May 2018