Sintex BAPL

Business Monitoring Report

30th November 2019

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Transmittal Page

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Table of Contents

Contents Page No
Executive summary 5

Plastic Products division 8

1. Business Monitoring 9
2. Cash Flow Summary 22

Auto Components division 29

1. Business Overview 30
2. Working Capital Assessment 50
3. Cash Flow Summary 56

Annexures 63
1. Weekly Dashboards 64
2. Production and Dispatches: Plastic Division 68
3. Manpower Attrition: Plastic Division (PPC Team) 74

Page 3
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Abbreviations

Abbreviation Full Form Abbreviation Full Form

ABS Acrylonitrile Butadiene Styrene LIBOR London Inter-bank Offered Rate
AMC Annual Maintenance Charges LLDPE Linear low-density polyethylene
AOP Annual Operating Plan LRTM Light Resin Transfer Moulding
AP Accounts Payable MCLR Marginal Cost Lending Rate
AR Accounts Receivable MoM Month on Month
ASP Average Selling Price MT Metric Tonnes
B2B Business to Business NCD Non Convertible Debentures
B2C Business to Consumer O/S Outstanding
BG Bank Guarantee OEM Original Equipment Manufacturer
BoM Bill of Material OME Other Manufacturing Expenses
BOP Bought out Parts Opex Operating Expenditure
BPS Basis Points P2P Procure to Pay
Capex Capital Expenditure PDC Post Dated Cheque
CC Cash Credit PM Packing Material
CIRP Corporate Insolvency Resolution Process PO Purchase Order
Cr INR Crores PPC Plastic Products (Consumer)
CRPS Cumulative Redeemable Preference Shares PPE Polyphenylene Ether
DIO Days Inventory Outstanding PPI Plastic Products (Industrial)
DPO Days Payable Outstanding PR Purchase Requisition
DSO Days Sales Outstanding PS Plastic Sections
EBITDA Earnings Before Interest Taxes Depreciation and Amortisation QA/QC Quality Assurance/Quality Control
ECB External Commercial Borrowing RM Raw Material
EL Engagement Letter SKU Stock Keeping Units
FG Finished Goods SMC Sheet Moulding Composite
FMD Factory Made Doors TRA Trust and Retention Account
FnF Full and Final USD United States Dollar
FRP Fibre Reinforced Plastic WCDL Working Capital Demand Loan
FY Financial Year WCTL Working Capital Term Loan
GP Gross Profit WIP Work In Progress
GRN Goods Receipt Note WSBM Water Storage Blow Moulded
HO Head Office WSPR Water Storage Pure
LC Letter of Credit WST Water Storage Tanks

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Executive Summary
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Executive Summary

Performance for PP in Nov’ 19 Performance for Auto: Apr – Nov’ 19 Overall outlook for Dec’ 19

► Sales during Nov-19 has remained at ► In the period the division has grossed ~ ► Sales for the ‘PP’ division may remain
~INR 31 Cr, in line with Oct-19 INR 329 Cr. of sales with an avg. in the range of INR 30 – 32 Cr. basis
► Considerable inventory liquidation monthly run rate of ~ INR 40 Cr current run rate until mid Dec-19
observed. Need to fund production to ► Cumulative EBITDA generated in the
► Retention of PPC team across zones is
arrest market demand and keep checks period ~ INR 28 Cr. @ 8.5%
critical to maintain sales and
on inventory levels ► Historically the division was doing ~ INR
collections at current levels
55 Cr. Of sales @ 9.5% EBITDA in Q4
► Visible efforts during Nov-19 towards FY’ 19 ► Robust WST order book build up
retaining several key distributors on ► Plant at Hosur was operationalized with
the verge on discontinuation, while ► Product sales acros OEMs for ‘Auto’ in
limited CAPEX to cater to dispatches September is expected to be in the
revival for category as a whole remains for TVS and KIA motors. Today the range of INR 35-40 Cr. basis current
► Alarming unplanned attrition in PPC, plant achieves an avg sales of ~ INR 4.5 order book
need retention plan for sales force Cr @ 6% EBITDA within 3 months of
operationalization

Overview of treasury operations in PP Overview of treasury operations in Auto Next Steps

► Outflow towards raw materials, stores ► Entire cash flows are channelled ► Signing off the Inter creditor
and consumables during reporting through TRA account maintained at SBI. agreement is critical to ensure
period stood at ~INR 18 Cr i.e. 42% of ► During the period of monitoring 24th continuation of as-is business volume
total payments; up from ~33% of total July, to 30th November, 2019 – the cash and protect the customer base in Auto
payments earlier balance in the division rose from INR ► Kick off the vendor due diligence
2.25 Cr. To INR 26.11 Cr process in sync with the start of the
► Outflows towards monthly fixed costs
► 76% of total payouts have directly gone SELL side mandate through SBI CAPs
continue to remain in check at INR 7.8
for production related expenses excl.
Cr during the reporting period. ► Maintain current operating margins in
salaries
► SBI, Yes Bank and Axis Bank continue ► Additionally, working capital position in Auto and look for possible EBITDA
to adjust amounts towards overdues the priod of monitoring has gone up by break even in PP division
INR 8.13 Cr.

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Disruptions to business continuity on account of temporary
suspension to payment processing
• The general news of a stress within Sintex BAPL on account of the financial condition, is floating around
among the larger stakeholder base (Customers, Vendors etc.) for the company

• The larger stakeholder base esp. the vendors and customers are concerned on the potential for Sintex BAPL
to operate as a ‘Going Concern’. Indications that raise this suspicion must be mitigated to ensure that there is
no significant loss in value for the enterprise. This entails:
• Meeting our dispatch commitments across OEMs

• Ensuring vendor payments are met on a timely basis, consistent with the commitments or delivery lead
times. Failure to meet such timely payments creates additional stress on WC, as credit terms are
crunched and in many cases larger vendors may disagree to continue business or material may not be
received to continue production as per desired schedule

• There have been multiple instances over the last 2 months when vendor payments were disallowed in blocks
of 4-5 days and once for almost 10 days, by SBI. Such disruptions while may be initiated to iron out future
course of action have a deep impact on the market perceptibility and future business potential.
• Further, it impacts the production, both in terms of production days and production costs (inflating on
account of stop-start pattern of production), and availability of critical labour (as they tend to lose out
on wages on account of loss of production days)

• For the interim period, we request the WC consortium base to ensure that such disruptions be kept out, so
that we are able to ensure minimal loss in enterprise value within the business

Source: EY Analysis. Mgmt. representation

Page 7 Table of Contents
 Plastic Products
I. Business Monitoring
II. Cash flow Monitoring
Business
Monitoring
Sales Analysis
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Monthly revenues during Q3 FY20 have remained at an average
~INR 3,100 Lacs p.m.
9,000 8,400 5,188 5,258 3,076 869 2,741 3,415 3,021 3,143

8,000 Q1 FY20 – INR 13,521 Lacs Q2 FY20 – INR 7,025 Lacs

7,000 3,100 H1 FY20 – INR 20,546 Lacs
Amounts in INR Lacs

6,000 (vs. INR 55,200 Lacs during H1 FY19 i.e. 63% drop)
5,000 716
903
4,000
3,000 835 703
5,300 1,310 698
4,285 4,541 784
2,000
1,000 2,580 2,323 2,440
1,766 1,957
1,345
- -475
-1,000
FY19 avg Apr-19 May-19 Jun-19 Jul-19 * Aug-19 Sep-19 Oct-19 Nov-19

PPC PPI

► PPC contributes ~77% of total revenues during Oct-19 and Nov-19 (vs. 63% during FY19) which may be reflective of the impact
from significant retrenchment measures towards PPI team during Sept-19
► WST revenues continues to contribute over 80% of PPC revenues during Nov-19
► Revenues until 14Dec19 stand at INR 1,222 Lacs. In the event of Dec-19 performance remaining in line with Oct / Nov-19, Q3
FY20 revenues may be ~INR 9,400 Lacs (up 32% from the lows of Q2 FY20)
► Certain concerns in achieving the desired revenues remain:
► Release of funds for production: Nov-19 observed sales higher than production indicating excess demand against production
leading to considerable liquidation of inventory (including for critical business segments i.e. WST). In absence of production
scale up, demand may remain un-catered / leak to competition and inventory will not be sufficient to meet the sales target
► Sales force retention: PPC has observed significant attrition at zonal and branch level of managerial and executive staff (as
covered in subsequent slides), leading to critical vacancies for both revenues and collections

(*) PPI revenues for July-19 has standard invoice booking for INR 1,145 Lacs as against reversals for prior period amounting to ~INR
Page 11 1,621 Lacs leading to a net negative revenues of INR 475 Lacs. Of these reversals, we could only map INR 53 Lacs towards
current year PPI sales (spread across various months in FY20) and believe the balance pertains to previous years.
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Revenue breakups for Nov-19 indicates considerable liquidation
in inventory levels across categories
Plant wise revenues Product wise revenues Sales vs. Production (MT)
1% 826
Roto
570
7% 1% 7%
Kalol WST 3%
BMC 213
12% 139
Uluberia Roto
38% 14%
Namakkal SMC FRP 63
INR 3,143 INR 3,143 41
Nalagarh Lacs PS/FMD Lacs
19% 10% 72
Butibori FRP PS
65% 109
Guwahati Others
SMC 188
23% 192

Sales (MT) Production (MT)

Plant wise revenue contribution - WST Product wise revenue contribution - WST Product wise price trends (INR / Ltr)*
1% 8.0 7.3
10% 11%
7.0 6.4
Uluberia
32% WSPR 7.0
Namakkal 13% 6.0
Nalagarh CCWS 22% 5.8
INR 2,048 INR 2,048 47% 5.0
Lacs 4.2 4.0
Kalol Lacs WSBM
4.0
Butibori 17% WSCC 3.9 3.7
Guwahati 3.0
20% WSPR CCWS WSBM WSCC
27%
Nov-19 H1 FY20

► At an aggregate level, production has remained ~75% of sales, indicating inventory liquidation for ~25% sales. This is
reflecting in the dip in inventory during Nov-19 (WST and FRP observed 30-35% sales coming from inventory liquidation)
► Kolhapur (jobwork plant) has not contributed to sale during Nov-19 on account of temporary suspension of operations there

(*) Average prices across product categories have dipped between 3% - 8% on account of the company shifting dispatches from FOR
Page 12 basis to ex-works basis, which was duly factored in the product pricing
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Water Storage Tanks – Observed high deviation in actual
dispatches vs. sales plan in certain specific categories
Amounts in INR Lacs
All amounts computed at avg. sales realisation during Nov-19

Prod Group Product Category Sales Plan Actual Dispatches % Deviation

WSPR Pure 1,028 960 93%

Sintex 411 302 74%
ISI 194 164 85%
CCWS
Loft 98 67 68%
Others 14 16 117%
Titus 292 284 97%
WSBM
Neo 185 158 85%
WSCC Reno 304 225 74%
Grand Total 2,526 2,178 86%

► Specific categories such as Sintex (double walled), Loft, and Reno tanks have observed significant lag in sales. We have sought
explanations from the company, which is awaited.
► It may be noted that the above three products put together contributed ~27% of total WST revenues for the month as
against ~32% revenue contribution expected from these products.
► ‘Pure’ and ‘Titus’ tanks have a pull factor in the market for the company leading to healthy adherence on S&OP both on sales
and production side. Certain key issues on the production side for ‘Pure’ tanks for Dec-19 include
► Availability of anti-bacterial masterbatches (critical raw material) which is currently being procured solely from Granula
Masterbatches. The party has high outstanding on the company (INR 484 Lacs) and has in-turn defaulted in payment for
such raw materials to its own supplier vis. N9 World Technologies Pvt Ltd (global supplier); and
► Ability to procure critical colour masterbatches (M L Industries; O/s INR 40 lacs), lids (Subh Laxmi Enterprises; O/s INR 201
Lacs) and other speciality chemicals and packing materials (Som Shiva Impex; O/s INR 382 Lacs) from its current vendors

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WST – Critical distributors on the verge of discontinuing were
actively retained, while certain key remain to be revived
Amounts in INR Lacs.

FY19 Q2 FY20 Nov ‘19

Continuing business
Count of Avg rev. p.m. / Count of Avg rev. p.m. / Avg rev. p.m. /
(basis Q2 FY20 business Contraction vs. FY19
distributors distributor distributors distributor distributor
levels)
0% 30 16 - - 3 82%

<20% 44 18 44 2 7 62%

20% - 50% 60 21 60 7 11 48%

50% - 80% 28 18 28 12 13 30%

>80% 6 26 6 25 17 35%

Total 168 19 138 7 11 43%

Indicates distributors where monthly sales vis-à-vis Q2 FY20 increased Indicates distributors where monthly sales vis-à-vis Q2 FY20 declined

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Plant and Customer Visits
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Satellite plant visit (Uluberia) and market interactions (Eastern
region) update
Location Near Birshibpur station, off Kona Expressway Customer-1 (Largest distributor for WST products in WB)
Key Concerns
Acreage 5 Acre • Significant reduction in business leading to loss of market
Staff • Employee – 30 share to distributors of competing brands and lowering of
Strength • Permanent Workers – 90 revenue
Contractual workers to assist production as per • Cross-sales by distributors leading to retailer
requirement cannibalization and further reduction of revenue
• Persistent lag in order fulfilment leading to failure of

Market Interactions
Capabilities Roto Moulding – 7 machines (5 Rock & Roll, 2 forward supply commitments
Reinhardt) • Freezing of credit lines by lenders on account of Sintex’s
Blow Moulding – 3 machines financial distress
Plant Visit

Pulverizers – 4 machines Distributor had a positive outlook towards continuing

Production Roto Moulding – 425 MT/day business and market demand for Sintex products and was
Capacity Blow Moulding – 299 MT/day confident of turnaround provided timely production

Key Strengths Areas of Concern

Customer-2 (Large distributor for both WST & PS-FMD
• Minimal lead time due to • Lower installed capacity
products in WB)
proximity to HPL • Small acreage with little
Key Concerns
• Optimal labour utilisation due scope to expand
• Lack of communication from the team with regards to
to production-linked wages • Need for separate FG storage
delivery schedules post order placement
• Availability of larger vehicles space due to area constraints
• Absence of concrete resolution for legacy pending issues
for FG transportation over on-site
in regards to product defects and replacement of the same
longer distances • Small access road and space
• Abrupt shutdown of product segments has led to inability
• Efficient management of on-site leading to reduced
to collect market outstanding from retailers
resources leading to reduced vehicle manoeuvrability
• High lead time for delivery and lack of fulfilment of
production costs
complete order basket make product requirements
Growth Opportunities Potential Threats redundant by the time of actual availability
• Caters to eastern markets • Threat of employee attrition Distributor remains committed to Sintex but has a negative
which has seen less attrition due to competitor presence outlook towards continuing business in view of mounting
• Proximity to distribution hubs in close proximity losses and has been approached by competition for switching

Page 16
Working capital analysis
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Movement in working capital between 30th June to 30th Nov –
period of monitoring
Aggregate WC 28,786 18,990 16,595 14,672 15,118 15,672

50,000
832
40,000
881
Amounts in INR lacs

680
30,000 995 1,766 1,750
19,951
13,883 12,238
20,000 10,537 10,497 9,924

10,000
21,678 19,106 17,285 16,583 15,990 15,446
-
(13,675) (14,880) (13,608) (13,443) (13,135) (11,448)
(10,000)

(20,000)
Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19

Receivables Inventory Cash Positions Payables

Split of Debtors – Nov ’19 Split of Creditors – Nov ’19 Split in Inventory – Nov ‘19

4% 30% 2%
14% 5%
RM

21% Not Due SFG

12% 0 to 90
91 to 180 A 0>90
FG
>180 B 91>180
C >180 Stores &
70% spares
74% 13%
55%

We do not have detailed reports to form a view of the inventory positions and the reasons for improvement in working
Page 18 capital despite inability to reach breakeven sales or fresh fund infusion. Accordingly, the working capital positions need to
be reviewed / reconciled with the company, which is currently under progress.
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Related party receivable position as on 30th November, 2019

All figures are in INR lacs

1% 0%

4%
6%

13%

76%

Sintex Prefab & Infra Limited

Sintex Wausaukee Composites
Sintex Logistics LLC
Sintex Plastic Technology Ltd
Sintex Industries Limited
Sintex-BAPL Limited

Except for Sintex Logistics LLC most of the other receivables are non-moving in nature. Sintex Logistics LLC handles export
consignments for the company which are shipped majorly for Cummins. Collections from them have been regular (~INR 3 Cr. has
been collected from them in the period between 01st Oct and 30th Nov) and their O/s has reduced by >INR 1 Cr. in the same period

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Movement in related party receivables shows improved
collections from Sintex Logistics LLC
Amounts in INR lacs
Vendor Name Division July September 2m Movement October 1m Movement November 1m Movement

SINTEX PREFAB AND INFRA LITD PPI 5,861 5,861 -0 5,861 0 5,861 -0

SINTEX PREFAB AND INFRA LITD* PPM 1,393 1,404 11 1,404 0 1,408 3

SINTEX WAUSAUKEE COMPOSITES PPI 1,303 1,227 -77 1,227 - 1,227 -

SINTEX LOGISTICS, LLC PPI 1,054 737 -318 594 -143 601 8

SINTEX PLASTIC TECHNOLOGY

PPM 398 398 - 398 - 398 -
LTD

SINTEX INDUSTRIES LTD. - YARN

PPI 132 94 -38 94 - 94 -
DIVIS

SINTEX-BAPL LTD PPC - 29 29 29 - 29 -

SINTEX INDUSTRIES LIMITED-

PPI 7 7 - 7 - 7 -
JAIPUR

SINTEX BAPL LTD.-GST REFUND* PPI 4 4 0 4 - 4 -

SINTEX PREFAB AND INFRA

PPM 2 4 2 4 - 4 -
LIMITED

SINTEX-BAPL LTD. PPC 2 2 0 2 - 2 -

SINTEX-BAPL LTD. PPC 2 2 0 2 - 2 -

SINTEX-BAPL LTD. PPI 1 1 - 1 - 1 -

Sintex Industries Limited-Textile D PPI 1 1 - 1 - 1 -

SINTEX INDUSTRIES LIMITED PPC 1 1 - 1 - 1 -

Grand Total 10,160 9,770 -390 9,627 -143 9,638 11

Page 20
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Receivable/Payable Position (Non Related Party) as on 30th
November, 2019

Outstanding Debtor Position (Non Related Party) as on 30th November 2019 All figures are in INR lacs

Outstanding Creditor Position (Non Related Party) as on 30th November 2019

Page 21 Table of Contents

Cash flow
Summary
 DRAFT
Summary of monthly cash flow from 15th July till 30th November
2019

Particulars July August September October November Grand Total

(in INR lacs) (15Jul – 31Jul) (01Aug – 31Aug) (01Sep – 30Sep) (01Oct – 31Oct) (01Nov – 30Nov) (15Jul – 30Nov)
Opening Balance 419 881 682 997 1,768 419
Total Collections 3,383 5,239 4,046 3,884 4,244 20,796
Total Payments 1,763 4,247 3,307 3,032 3,588 15,935
Adjustments by Banks 1,158 1,191 425 82 672 3,527
Closing Balance 881 682 997 1,768 1,752 1,752

Adj by SBI 261 815 2 38 528 1,644

Adj by Yes Bank 728 242 158 44 37 1,209
Adj by Axis Bank 169 128 265 - 106 668
Adj by IDBI Bank - 6 - - - 6
Total 1,158 1,191 425 82 672 3,527

Amounts in INR Lacs

Particulars (SBI TRA A/c – Holding on collections) SBI TRA A/c No. 5029 SBI TRA A/c No 8788 Total
Collection till 30Nov2019 8,004 2,710 10,713
Holding @ 15% of Total Credit 1,201 406 1,607
Opening Balance as on 02.12.2019 899 679 1,579
Available fund for utilization (0.29)

Page 23
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Summary of monthly collections and weekly budgetary
performance for November
Actual Collections
Amounts in INR Crore

July’19
Particulars August ‘19 September ‘19 October ‘19 November ‘19 Total
(since 16/7/19)
PPC (B2C) 21.3 31.5 30.1 27.2 29.5 139.6

PPI (B2B) 8.0 19.6 10.0 10.9 12.8 61.3

Others* 4.5 1.3 0.4 0.7 0.1 7.0

Total 33.8 52.4 40.5 38.8 42.4 207.9

(*) These amounts primarily relate to certain duty draw backs, tax refunds and proceeds from sale of assets if any.

Budgetary Variance in Nov

Week 18 (04Nov – 10Nov) Week 19 (11Nov – 17Nov) Week 20 (18Nov – 24Nov) Week 21 (25Nov – 01Dec) Total (04Nov – 01Dec)
Particulars
Budget Actual Shortfall Budget Actual Shortfall Budget Actual Shortfall Budget Actual Shortfall Budget Actual Shortfall

PPC (B2C) 8.0 4.9 1.1 9.0 7.5 1.5 9.7 5.7 4.0 9.0 10.0 -1.0 35.7 28.1 7.6

PPI (B2B) 3.0 1.9 3.1 4.5 2.5 2.0 4.5 4.2 0.3 3.0 4.1 -1.1 15.0 12.7 2.3

Total 11.0 6.8 4.2 13.5 10.0 3.5 14.2 9.9 4.3 12.00 14.10 -2.1 50.7 40.8 9.9

Page 24
 DRAFT
Prioritisation of production payments through co-ordinated
weekly budget meetings
Amounts in INR lacs

Particulars July % of Total August % of Total September % of Total October % of Total November % of Total Total % of Total
LC Repayment 599 21% 721 14% 84 2% 9 0% - 0% 1,413 7%
Production & Dispatch
300 11% 2,208 43% 2,042 55% 2,075 61% 2,332 70% 8,957 47%
Exp*
Other Operating
703 25% 1,491 29% 1,270 34% 1218# 36% 1,256# 30% 5,679 30%
Expenses
Recovery of Bank
1,240 44% 705 14% 336 9% 73 2% 672** 0% 3,026 16%
Dues
Grand Total 2,843 100% 5,126 100% 3,733 100% 3,375 100% 3,327 100% 19,075 100%

(*) INR 1,789 Lacs (42% of total payments during Nov-19 as compared to ~33% during previous months) has been towards procurement of raw materials,
stores and consumables, thus directly translating into production.
(**) INR 672 lacs which was adjusted by banks towards their outstanding were from non-TRA accounts. Funds in the same were not available for utilisation by
the company and couldn’t be diverted towards payments. Subsequently he same has not been considered in total payments for the month of November
(#) INR 260 lacs was towards unpaid GST and TDS of October which have been paid out in November. Subsequently, the same has been ignored when
calculating total payments made in November and October payments have been increased to the same extent

Page 25
 DRAFT
Summary of actual v budgeted payments for November, 2019

Amounts in INR Crore

Particulars Budgeted * Requested Recommended Paid Shortfall in Shortfall in

Request Recommendation
Duty & Taxes 3.9 2.9 2.9 6.3 -1.0 0.0
Rent & Storage 0.2 0.0 0.1 0.1 -0.2 0.0
Selling & Distribution 0.3 0.3 0.4 0.6 0.0 0.1
Administrative & other Expenses 1.1 0.3 0.2 0.7 -0.7 -0.1
Consultancy & Professional Fees 0.7 1.6 0.8 0.5 0.9 -0.7
Salary & Employee Expenses 5.6 4.6 5.4 3.3 -1.0 0.8
Power & Fuel & Other Utility 0.7 0.7 1.4 1.8 0.1 0.7
Labour & Manufacturing Expenses 2.0 0.9 2.4 3.4 -1.2 1.5
Transporter 1.3 1.2 1.1 0.7 -0.1 -0.1
Raw Material 7.4 7.9 11.3 13.3 0.4 3.4
Stores and Consumables 3.0 4.1 3.7 4.5 1.1 -0.4
Interest - - - 5.8 - -
Total 26.1 24.5 29.7 41.1 -1.6 5.2
Shortfall in Request = Budget – Request Received | Excess request is on account unfulfilled requests from previous weeks being rolled
over in future budgets
Shortfall in recommendation = Request Received – Recommendation | This primarily on account of delays in providing underlying
documents for EY review and recommendations along with certain payments not being recommended due to inadequate rationale

Due to the halt in payments for a couple of weeks in late October / early November, there was a significant lag in terms of
disbursal of payments. Consequently, the backlog was cleared during November, leading to payment in excess of budget as
previously requested/recommended payments were processed by the teams

(*) based on collections forecast for the week plus available bank balance at the time of the meeting
Page 26
 DRAFT
Summary of weekly Payments from 14th October to 01st
December 2019
Week 15 Week 16 Week 17 Week 18 Week 19 Week 20 Week 21 Grand
Particulars (in INR lacs)
(14/10 – 20/10) (21/10 – 27/10) (28/10 – 03/11) (04/11 – 10/11) (11/11 – 17/11) (18/11 – 24/11) (25/11 – 01/12) Total
Recommended 1,203 658 84 839 1,465 459 824 5,532
Raw Material 603 110 76 134 498 236 466 2,123
Salary and Employee Expenses 174 239 11 396 25 17 861
Stores & Consumables 205 105 159 169 51 76 766
Duty & Taxes* 5 1 0 279 156 2 198 641
Labour & Mfg Expenses 86 122 107 85 32 433
Power & Fuel & Other Utility 69 48 12 104 8 55 296
Transport 0 21 51 7 82 161
Administrative & other
14 7 1 34 25 8 5 94
Expenses
Selling & Distribution 1 6 35 15 7 7 70
Consultancy & Professional Fee 44 1 9 5 8 0 68
Rent & Storage 1 4 5 10
Others 4 4
Civil & Maintenance Expenses 3 0 1 4
Not Recommended 0 0 61 97 6 0 569 733
Direct Debit by Banks 0 0 61 97 6 0 569 733
Recovery of Overdues* 37 88 545 671
Interest 24 8 6 23 61
Bank Charges 0 0 1 0 0 0 0 2
Grand Total 1,203 658 145 935 1,471 459 1,393 6,265

(*) Others include recovery of overdues to the tune of ~INR 5.3 cr. by SBI and ~INR 1 cr. by Axis Bank, and interest recovery to the tune of INR 40 lacs by
Yes Bank and Axis Bank. Further, duties and taxes include ~INR 2.6 Cr. towards unpaid GST of Sep’19 and ~INR 21 lacs towards unpaid TDS of Sep’19
Page 27
 DRAFT
Specific payments not recommended / kept on hold by EY Team
(excl. repayment of interest and loans)
Amounts in INR lacs
Particulars Company Category Amount Remarks
Payment Not recommended by EY
Dhruva Advisers LLP SBAPL Consultancy & 69.59 Restructuring costs – towards NP transaction
Brescon & Allied Partners LLP SBAPL Professional Fees 48.60 Restructuring costs
Live Events & Promos SBAPL 10.99
Selling & Distribution There lies a significant risk of the company getting
J Walter Thomson SBAPL 8.93
blacklisted with various marketing associations
While this is kept on hold on account of bills for
Global Connections SBAPL 6.40 promoter travel, the party will have to be paid to
Administrative & ensure mobility of the company is not impacted
Other Expenses
All Gift Studio Pvt Ltd SBAPL 6.00
Sajnee Communication SBAPL 1.09
SBAPL – Total 151.60
Dinesh Khera SPTL 0.32
Desh Raj Dogra SPTL 0.27
Amit Patel SPTL 1.12 Sitting fees for SPTL Directors not recommended by
EY. These include fees for attending Board
Rahul A Patel SPTL Director Fees 0.99
Meetings, Audit Committee Meetings & Stakeholder
Bhavan Trivedi SPTL 0.18 Relationship committee Meetings.
Mamta Tripathi SPTL 0.18
Yogesh Chhunchha SPTL 0.18
SPTL – Total 3.23
Total 154.83

Page 28 Table of Contents

 3
Auto Division
I. Business Overview
II. Business cash flow monitoring
III. Financial analysis & working
capital assessment
Business Overview
 DRAFT
Geographic spread of Sintex BAPL – Auto Division now includes
Hosur as a major hub of production
Sohna
- Catering to the Northern
3% OEM belt around NCR/
Pithampur Nalagarh etc.
- Small unit primarily for Volvo 20%
Eicher & Force Motors

Sohna

Pithampur
28%
Pune
- Catering to Western OEM belt
of Maharashtra and Gujarat Pune

22% 11% 4%
Chennai I Chennai II Chennai III
Hosur Chennai (3 units)
12%
Hosur
- Specifically catering to business
from KIA and TVS. The unit was
operationalized during EY’s
monitoring period

XX% % of sales contribution for November Zones for customer base

Page 31
 DRAFT
Auto Division – sales are directly impacted by the industry
downturn
All figures are in INR lacs

47 54 44 43 35 37
60
Implementation of cost 14.0%
50 9
reduction measures
10.7% 12.0%
4
3 9.9%
40 7 10.0%
0.04 0.45
9.2% 9.5%
8.0%
30 8.1%
5.6%
45 6.0%
20 43 41
36 35 36
4.0%
10
2.0%

0 0.0%
Q3' 18-19 (avg p.m) Q4' 18-19 (avg p.m) Q1' 19-20 (avg p.m) Q2' 19-20 (avg p.m) Oct-19 Nov-19

OEM Revenue Other income incl. project revenue EBITDA

► The sudden dip in profitability for Q2’19-20 ’ 19 is on account of significant tooling sales in Sept’19 for KIA Motors (INR
11.57 Cr), which is mainly related to development of moulds for future supply work to KIA. The development was done at cost
but other fixed expenses allocated to tooling for mould development incurred a net loss of INR 1.08 Cr
► Cost reduction in Admin and corporate overheads accounted for increase in EBITDA by 2.6% compared to Aug’19.
► The company was successful in reducing the travelling and conveyance cost by 0.8% through better planning and co-
ordination between stakeholders and miscellaneous expenses has reduced by 2.2% on account of stringent monitoring of cash
flows in the period

While the Industry continues to be under stress on account of a fall in aggregate demand, cost reduction initiatives
undertaken across plant level have ensured a return to profitability for Auto to Q4’ 19 levels

Page 32
 DRAFT
For SBAPL sales for the month of Nov’19 has shown a slight
uptick from the recent performance over the last 6 months
45% drop 2% rise

17% drop 34% drop

16% drop 31% drop

Source: Sales registers * Rise of 2% is on account of tooling sales of INR 38.63 lacs in Nov-19
Page 33 XX% drop Sales decline between Avg p.m FY’19 and Nov’ 19
 DRAFT
Breakdown of sales for the month of Nov’ 19

Product sales breakup by plant Product Sales breakup by customer

Chennai - I
Mahindra
Chennai - II with 3% 12%
Mysore 23% Maruti Suzuki
1.64% 1.55%
Chennai IIA Hyundai 8.36%
2.30% 17.26%
Pune + LRTM TVS Motor
20% 2.43%
11% Mobis
Sohna
3.33%
KIA Motors
4% 3.42%
Pithampur
Suzuki Motor
27% 3.57% 14.02%
Hosur TATA Motors
3.88%
Faurecia
Tooling sales by customer
SEOYON E-HWA 7.13%
12.80%
Note on Tooling Sales in Nov-19: General Motors
7.57%
• Total mould development and tooling sales to
TATA Motors~ INR 38.63 Lacs SMRC 10.76%
Automotive
• Total RM/ BOP/ Consumable consumption – INR Schneider
13.9 Lacs
Borgwarner
• Salary cost and other fixed cost – INR 10.7 Lacs
• EBITDA recorded at INR 14 Lacs ~ 36% Others

Page 34
 DRAFT
Growth in sales for Sohna over Oct’ 19 is largely driven on
account of increase in order from Maruti Suzuki for Nov’ 19
Chennai I Chennai II Chennai IIA
20 Lacs 7% 42 Lacs 12% No Change

942 318 329

307
765
INR Lacs

1,039 1,014 1,003

INR Lacs

INR Lacs
857 612
837
157 156
383
341

Avg p.m. Q1 FY '20 Q2 FY '20 Oct' 19 Nov' 19 Avg p.m. Q1 FY '20 Q2 FY '20 Oct' 19 Nov' 19 Avg p.m. Q1 FY '20 Q2 FY '20 Oct' 19 Nov' 19
FY' 19 Avg p.m. Avg p.m. FY' 19 Avg p.m. Avg p.m. FY' 19 Avg p.m. Avg p.m.

Pune incl. LRTM Sohna Pithampur

No
Change 105 Lacs 15% 37 Lacs 31%
27%
122 119
1,195 1,089 114 115
1,057
985 982
927
801 82

INR Lacs
INR Lacs

743
INR Lacs

651 648

Avg p.m. Q1 FY '20 Q2 FY '20 Oct' 19 Nov' 19 Avg p.m. Q1 FY '20 Q2 FY '20 Oct' 19 Nov' 19 Avg p.m. Q1 FY '20 Q2 FY '20 Oct' 19 Nov' 19
FY' 19 Avg p.m. Avg p.m. FY' 19 Avg p.m. Avg p.m. FY' 19 Avg p.m. Avg p.m.

Note - Hosur has recorded average sales at INR 118 lacs for Q2 FY’20 p.m, INR 429 lacs and INR 442 lacs for Oct’ 19 and Nov’19 respectively

Page 35
XX% MoM sales decline between Oct and Nov’ 19 XX% MoM sales growth between Oct and Nov’ 19
 DRAFT
Plant and customer wise split in share of OEM sales for Nov’ 19

Chennai I Chennai II Chennai IIA Hosur

Others
SMRC 6%
Automative
Others
Products
SEOYON E- 9%
India TVS
10% Motor HWA RANE
Automative TRW Borgwarner TVS
37% Motors
26% 18% 37%
43%
KIA Motors
Mobis Hyundai 57%
29% 55% Faurecia India Pvt
Schneider
Ltd
36%
37%

LRTM Pithampur Pune Sohna

John Siac Others TVS Honda Others
Deere 3% General 7% Motors 2% 1%
Socomec
India 14% Others Motors 10%
2% 12% 10%
Volvo
C.A.F 32%
21% Suzuki
TATA Motors
Motors Gujarat
15% 19%
Mahindra Maruti
SINTEX
16% Mahindra Suzuki
LOGISTICS LLC Force
74% Motors 68% 68%
26%

LRTM business unit largely supplies to export customers in US via Sintex Logistics LLC

Source: November sales register

Page 36
 DRAFT
Adherence to budgeted sales plan in line for all plants other than
Sohna and Pithampur
Chennai I Chennai II + Mysore + Paint Chennai IIA/ Precitech Hosur

86% 123% 95% 100%

Production as
a % of sales 97% 68% 95% 103%

LRTM Pithampur Pune Sohna

106% 46% 105% 68%

Production as
a % of sales 46% 87% 97% 100%

Source: November production MIS

Page 37 Note: Delays in dispatch on account of customer request (Force Motors) in the month resulted in a lower adherence % for Pithampur
Sohna annual budget suffers from a sharp dip in aggregate demand for Maruti Suzuki
Impact of current distress in SBAPL
 DRAFT
Key customer discussions indicate a speedy resolution is the
need of the hour as part of the auto business
Schneider Electric

• Plant under consideration: Chennai II A/ Precitech

• Audience: Discussion with purchase, production and finance along with critical team members
• Trends: The volume of business from Schneider has been falling sharply over the current fiscal. The key
discussion points were possibilities of addressing any key issues/ concerns that Schneider might have

• Feedback: No issues with dispatch and/ or quality of dispatches from Precitech

• The Management of Schneider Electric have made it clear the continuing business without an alternate
investor/ buyer in place will not be feasible. While there was a threat of discontinuation, it has been averted
for now. However, there is a strong possibility of the business being moved away from SBAPL by the month of
January in absence of a resolution/ alternate investor
• The Precitech plant has significant portion (~40 - 50%) of its business from Schneider. There will be significant
value erosion for the plant if the business were to move in absence of a resolution.

Mahindra & Mahindra

• Plant under consideration: Pune/ Pithampur

• Audience: Discussion with critical member of the purchase team at Mahindra
• Trends: The volume of business from Mahindra has been largely stable other than any impact associated with
macro factors

• Feedback: No issues with dispatch and/ or quality of dispatches from SBAPL Auto
• While there was a threat of discontinuation, it has been averted for now. However, there is a strong
possibility of the business being moved away from SBAPL if the OEM believes that no resolution is in sight or
can be achieved over the next 3 months. No new RFQs can be expected in absence of an investor in place

Page 39
 DRAFT
Potential future business value lost on account of not receiving
fresh RFQs is significant over the last 2 years – (1/2)
Potential annual Split by model name
Plant Customer
loss in revenue

SU2i,
Chennai - I Hyundai INR 49 Cr. 100%

New Alto

14% New Baleno

23%
16% New Brezza
Sohna Maruti Suzuki INR 31 Cr. 14% New Celerio
10%
23% S-Presso

Swift

KUV & TUV

11% 8% ME 3
Wheeler
13% S110
4% S201
30%
Pune Mahindra INR 17 Cr. 7%
U308

27% W501

XUV500 &
TUV300

K1,
Pune FOTON INR 14 Cr. 100%

Source: EY Analysis. Mgmt. representation

Page 40
 DRAFT
Potential future business value lost on account of not receiving
fresh RFQs is significant over the last 2 years - (2/2)
Potential annual Split by model name
Plant Customer
loss in revenue

T-Cross,
Pune Volkswagen INR 37 Cr. 100%

4% Q502
10%
26% Q5 BSVI
12% Nexon BS6
Pune TATA Motors INR 78 Cr. X445
16% 16% TIAGO TIGOR
Tiago
16%
Others

IAC
20%
MTWL
41%
7% Piaggio
Pithampur Miscellaneous INR 17 Cr.
VECV
18%
VECV Bus
8% 7%
VW

T1N,
Pithampur FORCE Motors INR 26 Cr. 100%

Source: EY Analysis. Mgmt. representation

Page 41
Cost structure assessment
 DRAFT
Variance assessment with budgeted figures for the month of
Nov’ 19 – Product sales

Particulars Variance with budget Comments

Lower than budgeted projections on account of continued slowdown

Revenue (6.5%)
and no additional material offtake on account of festive season

RM/ PM/ Paints & Thinners/ On account of a tighter procurement cycle and rigorous monitoring on
(16.5%)
BOP payments – Key RM cost conservation up by ~ 16.5%

Stores & spares/ On account of a tighter procurement cycle and rigorous monitoring on
(9.3%)
Consumables payments – stores consumption up by ~ 9.3%

There has been marginal increment of 0.6% on account of interest

Power & Fuel charges 0.6%
levied on delayed payments to the electricity board

On account of relatively smaller volumes being dispatched to

Transportation/ Freight 12.2% customers. While we continue monitoring this cost, inwarding schedule
is dictated by the customer basis their own production planning

Other variable Mfg. There has been an increase in contract labour, thereby escalating the
3.9%
expenses variable expenses

Other fixed Mfg. expenses (12.3%) Basis cost reduction initiatives undertaken by the Mgmt.

Admin & Corporate Overall increase in admin & corporate overheads is on account of
5.8%
overheads increase in payments towards SAP and professional charges

Page 43
 DRAFT
Cost reduction initiatives implemented as part of way forward
approach in Sohna plant
Category Savings (INR Lacs) Comments

• Air Leakage reduction, replacement of inefficient pumps and

cooling tower optimisation
Power cost 6.38
• Power cost reduced to 5.6% of sales in Nov-19 from 7.83% in
Aug’ 19

• Daily casual labour approval by plant head for every department

Manpower cost 1.76 • Casual labour cost to 4.04% of sales in Nov’ 19 from 5.5% in Aug’
19

Reduction in lease 1.44 • Reduction in area of usage in Manesar warehouse used for MSIL
shipments

• Improvement in productivity by cycle time reduction in 16

components
Manufacturing cost 2.94
• Reduction in internal rejections to 5.6% in Nov’ 19 from 6.4% in
Aug’ 19
• Negotiations with Transport providers, alternate vendors are
Logistics cost 0.87 being developed and logistic cost has been closely monitored
• Transport utilization achieved 72% in Nov’ 19
• Logistic cost restricted to 6.22% of sales, as against budget of 5%
• Better procurement negotiations
RM/ Consumable cost 0.71
• Alternate vendor development

Aggregate savings p.m. 14.10

Page 44
 DRAFT
Cost reduction initiatives implemented as part of way forward
approach in Pune plant
Category Savings (INR Lacs) Comments

RM cost 23.14 • Usage of alternate vendors, Grinding materials etc.

• Line Balancing
Manufacturing cost 1.88
• Productivity and Throughput improvements

Reduction in BOP cost 12.52 • Insourcing of components and moulds

Consumable cost 0.98 • Close monitoring of section wise consumables

• Optimisation of no. of dispatches

Logistics cost 0.8 • Elimination of Fixed Transport service for travelling local work.
provide as on required basis .

Power cost 0.51 • VFD Installation, Provisioning of Centralized auxiliary equipment ,

Declaring NPDs

Aggregate savings p.m. 39.83

Page 45
 DRAFT
Cost structure for product sales for the month of Nov’ 19 and
MoM comparison with Oct’ 19
100.0% 34.8% Wages – 144.3 Lacs Salary & Employee benefits – 305.7Lacs

Total expense on Salary & wages – 450 Lacs or 12% of revenue

16.5%

2.7% 2.0% 2.0% 5.2%

4.9%
3.7%
10.9%
7.6%
9.6%

Revenue RM Bought out Packing Paints/ Stores & Power and Other Freight Other fixed Admin. & EBITDA
Consumption parts Material Thinners/ spares/ Fuel charges variable Mfg. expenses Mfg. Corp.
Others Consumables expenses expenses overheads
Aug vs Jul ‘19 comparison

4% 18% 8% 4% 15% 6% 3% 1% 8.0% 1%

147
bp

Notes
• RM consumption was increased by 4% and BOP procurement was decreased by 18% in Nov’19. The overall decrease in RM
consumption and BOP cost has been of 3%
• The Company has hired contract labour in the month of Nov’ 19, thereby increasing the other variable manufacturing expenses
• Management has taken up cost reduction initiatives, thereby decreasing the other fixed manufacturing expenses by 8%
• Total expense on salary & wages reduced from 490 Lacs in June’ 19 to 450 Lacs in Nov’ 19 (Reduction of 40 Lacs p.m.)

bp – Basis points
Page 46
Hosur Plant Visit
 DRAFT
Snapshot of the Hosur facility made operational in Aug’ 19

The Facility spreads across an area of 46,000 Sq.Ft, at Hosur, Tamil

Nadu, and has enrolled 51 employees and 80 trainee wages

► The Facility has produces auto components mainly for TVS and
KIA Motors– 80 parts for TVS and 30 parts for Kia Motors
► Production is scheduled in three shifts of 8 hours each
► The facility has 12 Injection Moulding Machines comprising of 1
newly purchased, remaining 11 machines and 3 Blow Moulding
Machines have been shifted from Chennai, Pithampur and Sohna
Plants
Raw Material & BOP storage area comprises mainly of various
► The facility has installed 1 crane , however there is an additional
grades of PP granules. Some of the key vendors being Kingfa, DSM requirement of minimum 1 crane at the facility
& Hyundai Engineering

Page 48
 DRAFT
Hosur facility caters to TVS and KIA Motors

All the 12 Injection Mould machines currently All the 3 Blow Mould currently operate at full Secondary process area for drilling, ultrasonic
operate at full capacity capacity, minimum production time for one welding, flash trimming, hot plate welding, air
component = 360 seconds cleaning etc

Inspection Area to check if the final product Inventory Storage Area Dispatch Area – adjacent to the inventory
meets the requirements of the OEMs storage area

Page 49 Table of Contents

Working Capital
Assessment
 DRAFT
Movement in working capital between Jun’ 19 to Nov’ 19 –
period of monitoring
All figures are in INR lacs

Aggregate WC 5,129 3,792 4,886 5,590 5,644 6,002

15,000

365 681 955

1,665
3,673 1,149
10,000 3,852 3,850 3,517
3,683 3,582

5,000
8,521 7,693 7,801 7,946 7,115 6,614

-
June' 19 July' 19 Aug' 19 Sep' 19 Oct' 19 Nov' 19

(5,343)
(5,000)
(7,065) (6,827) (6,819)
(7,445)
(8,118)

(10,000) Debtors net of advances Inventory Cash Balance Creditors net of advances

Split of Debtors – Nov’ 19 Split of Creditors – Nov’ 19 Split in Inventory – Nov’ 19

4% 5%
Not Due Not Due 16%

30% 24%
0-90 Days
RM
0-90
Days 53% WIP
91-180 Days
66% 31% FG
90-180 70%
Days More than 180
Days

The drastic reduction in WC in July’ 19 was on account of adjustments made in the HDFC CC account in the
Page 51 month of July that sucked out INR 14 Cr. of WC from the system through account freeze
 DRAFT
Movement of debtors and creditors by key parties in the period
Jul’ 19 to Nov’ 19 (Period of monitoring)
Debtor movement

Creditor movement
Capital
Goods
33%
Moulds/
Imports
67%

While the receivable from Sintex Logistics has increased in the period on account of significant exports,
Page 52 Recoveries are being made as part of the going concern business and as per credit terms
 DRAFT
Reconciliation of the movement of working capital with business
performance
All figures are in INR Lacs
Impact on Working
Particulars June' 19 Nov'19
Capital
Debtors 8,521 6,614 (1,907)
Inventory 3,673 3,582 (91))
Cash Balance - 1,149 1,149
Creditors (7,065) (5,343) 1,722
Gross Working Capital available 5,129 6,002 873

Impact on cash position

Finance
Debtors Inventory EBITDA Creditors Cash
cost

INR INR INR INR INR

INR 469
1,907 1,342 1,722 1,149
91 Lacs Lacs
Lacs Lacs Lacs Lacs

► There has been significant collection of overdue debtors in the period of monitoring
► The EBITDA of INR 1,394 lacs has been generated between Jul’ 19 to Nov’ 19
► Focus to maintain production levels require critical raw material and BOP suppliers to be paid on time
► The finance cost pertains to bill discounting and interest charges
► Stringent monitoring of cash flows between Jul’ 19 to Nov’ 19 has significantly improved the cash position by Nov’ 19

Certain term loan repayments to the tune of INR 5.37 Cr (HDFC term loan) have been made through adjustments of the
Page 53 frozen HDFC CC account where significant cash was available. This CC account is no longer operational for SBAPL Auto
 DRAFT
Related party receivable position as on 30th November 2019

All figures are in INR lacs

12%
4% 4% 3%

100%
96
96% 88% 97%
%

BAPL Rototech Sintex Logistics LLC is based out of US and handles export sales for Sintex Auto division. The
entity takes FG as input, does assembling and minor job work and markets the product in mainland
Sintex Logistics LLC US. The company is in the process of recovering all balance dues from Sintex logistics in the
normal course of business

Page 54
 DRAFT
Receivable/Payable Position (Non Related Party) as on 30th
November, 2019

Outstanding Debtor Position (Non Related Party) as on 30th November 2019 All figures are in INR lacs

Outstanding Creditor Position (Non Related Party) as on 30th November 2019

Page 55 Table of Contents

Cash Flow Summary
 DRAFT
Overall status of inflows and outflows for the period - 24th July
30th November
INR Lacs

• The payments process has been centralized and w.e.f 20th September, 2019 payments are now being made from the TRA A/c being maintained with SBI
• Collections from customers are being received in the current being maintained with Kotak Bank. However, the balance at the end of the day is auto swept to
the TRA A/c.
• Salary and Employee payments include salaries and reimbursements. Approx. 8%-12% increments have been given to the employees across locations.
• Duty payments have been mainly towards GST, TDS, PF and ESIC dues
• Total payments made include Forex payments of which INR. 265 lacs where mainly towards Raw Material and Bought out parts

Page 57
 DRAFT
Monthly Cashflows – Auto Division – 24th July 2019 to 30th Nov
2019
INR Lacs
Particulars Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Total
Opening Balance 225 365 682 2,260 2,970 225
Collections 1,117 5,529 5,329 4,804 4,486 21,265
Total Fund Available 1,342 5,894 6,011 7,064 7,456 21,490

Payments : Breakup 977 5,211 3,751 4,094 4,845 18,879

Raw Material 608 2,151 1,414 1,209 2,205 7,588

Duty & Taxes - 613 586 744 3 1,946
Bought Out Parts 81 655 475 549 714 2,475
Salary & Employee 1 381 409 523 361 1,676
Labour & Mfg Expenses 30 387 200 183 279 1,079
Power & Fuel 9 174 164 145 169 662
Transporter 102 158 117 100 226 703
Packing Material 10 132 85 87 103 417
Stores & Consumables 41 122 71 48 87 370
Administrative & other Expenses 25 100 59 114 115 414
Rent & Storage 41 87 44 28 136 336
Insurance - 5 38 2 25 69
Repairs & Maintenance 2 44 33 47 61 186
Projects - 135 24 250 281 691
Consultancy & Professional Fee - 27 14 37 4 82
CAPEX 12 39 9 28 70 159
Import / Export Expense - - 3 1 3 8
Selling & Distribution - 0 - - - 0
Unapproved (PDC's / Cash Withdrawn) 15 3 0 19
Closing Balance 365 682 2,260 2,970 2,611 2,611
• The payments process has been centralized and are now being made from the TRA A/c being maintained with SBI
• CAPEX has been incurred towards purchasing Trolley’s and toilet renovation, roof cleaning, shed painting at plants
• Fund Transfers have been made to SBI Pune and SBI Pithampur A/c which is mainly being utilised for making statutory payments
• Total payments made include Forex payments made of INR 265 lacs which where mainly towards Raw Material and Bought out parts
• Unauthorised Payments of ~INR 1500 Lacs have been made through Kotak – 6407 by the Company on 2nd Nov 2019 on account of weeklong freeze by SBI

Page 58
 DRAFT
Budget vs actual fund flow assessment – 24th July to 30th
November
INR Lacs

Pending for Pending to be

Requested Authorized Rejected Paid
Categories Total Budget clarifications paid until 30Nov
(A+B+C) (A) (C) (D)
(B) (A-D)

RM/BOP/PM 9,072 11,883 11,607 36 240 10,480 1,127

Stores & Consumables 312 457 457 -0 370 87

1
Power & Fuel 794 776 758 6 12 662 96

Job work/R&M/Labour 744 1,441 1,431 6 1,264 167

4
Transporter 508 935 935 - - 703 232
Fixed Factory OH &
2,956 3,047 3,022 18 7 2,585 437
Admin OH
Maintenance CAPEX 224 224 220 2 2 159 61
Duty & Taxes 2,652 2,652 2,634 1 17 1,946 687
Projects 645 1,202 1,179 - 691 489
23
Total 17,907 22,617 22,243 93 281 18,860 3,383

Collections Movement of fund balance in the period

21,265
17,105 4,160 lacs

Budgeted Actual

Page 59
 DRAFT
Breakdown of inflows and outflows by plant for the period
24th July – 30th November
Sales Vs Collections share Plant wise payment share

21,265
2%
19,880 2%
Chennai I
4%
Additional Collections Chennai II 4%
25%
of INR 1385 Lacs. Pune 6%
Sohna
Chennai IIA
Pithampur 15%
Sales for the period Collections for the
period Corporate
LRTM Pune 18%
Category wise payment share Hosur
2% 1%
Raw Material 2% 24%
4%
Bought Out Parts
3%
Duty & Taxes 4%
Salary & Employee • Payments include Rs. 13.68 lacs PDC given earlier in
Labour & Mfg Expenses
6% 40% normal course of business which was debited on 29th
July
Misc
Transporter
6% • Customer collections in the HDFC Bank A/c of approx.
Rs. 8. 60 crs have been adjusted
Power & Fuel
9% • ECB payment of Rs. 6.90 crs due in July pertaining to
Stores & Consumables
PP division adjusted by the lenders from Auto
Packing Material division
Projects 10%
CAPEX 13%

Misc. payments incl. Admin Exp. Rent and Storage, Repairs and Maintenance, Consultancy and Professional Fees, Insurance
Assumed that there are no significant payments made from 1st week – 3rd week of July’19 on account of freeze on payments
Page 60
 DRAFT
Breakdown of payments to major raw material suppliers

Page 61
 DRAFT
Average P2P timelines split by category of payments (In
Monitoring phase)
RM, PM, BOP Stores & consumables,

76 days 2 days 6 days

Invoice Date Requisition Date Authorisation Date Payment Date

Electricity , Power & Fuel

18 days 2 days 7 days

Invoice Date Requisition Date Authorisation Date Payment Date

Labour, Transporter & Mfg. costs

65 days 3 days 5 days

Invoice Date Requisition Date Authorisation Date Payment Date

Admin & Corporate Overheads

43 days 3 days 5 days

Invoice Date Requisition Date Authorisation Date Payment Date

Salary & Employee cost payment cycle

7-8 days 3 days 3 days

Invoice Date Requisition Date Authorisation Date Payment Date

Page 62 Table of Contents

Annexures
Weekly Dashboards
 DRAFT
PP Division – Dashboard – MTD until 30Nov2019
Proportion of payment towards RM and stores remains low
Revenues (INR Cr.) WST Breakup (INR Cr.) Average Realisation (INR / Kg)
INR 32 Cr Outer circle -
0.4 WST 246
Value (INR Cr.) 254
2.1 2.4
1.6 Roto 197
WST 212
2.4 6.4 231
SMC PPI, WSPR SMC 194
Roto 7.0 14.4 329
CCWS 4.6 FRP
PPC, 10.1 356
PS/FMD 4.3 25.2 WSBM
PS/FMD 128
FRP 11.8 136
21.5 WSCC
Others 149
Others 131
7.6
Inner Circle – - 100 200 300 400
Volume 4.4
(*10^6 Ltrs) MTD - Nov2019 H1 FY20

Sales vs. Production (MT) Collections (INR Cr.) # Payments (INR Cr.)*
INR 42 Cr 1.5 0.3 Raw Material
803
Roto
570 1.9 Stores 0.1
6.7
0.6
Duty & Taxes
223 0.7
BMC 13.3
139 Power & Fuel & Other
Utility
PPI, PPC, Labour
63 15.2 27.2 4.5
FRP Transport
41
Salary and Employee
Expenses 1.4
122 Sales (MT) Administrative &
PS Other Expenses 2.2 4.6
109
38.8 Selling & Distribution 1.8
Production (MT)
Rent & Storage 6.3
188
SMC SBI TRA Other SBI Yes Axis
192 Others
INR 42 Cr

* Others include recovery of overdues to the tune of ~INR 5.3 cr. by SBI and ~INR 1 cr. by Axis Bank, and interest recovery to the tune of INR 40 lacs by Yes
Bank and Axis Bank. Further, duties and taxes include ~INR 2.6 Cr. towards unpaid GST of Sep’19 and ~INR 21 lacs towards unpaid TDS of Sep’19
Page 65
# All collections outside of PPC TRA (SBI 5029) is considered as collection of PPI. As per company records, MTD collections is as follows: PPC – INR 29.5 cr.;
PPI – INR 12.8 cr.
 DRAFT
PP Division – Dashboard – MTD until 8th December, 2019
Revenues (INR Cr.) WST Breakup (INR Cr.) Average Realisation (INR / Kg)
INR 4.9 Cr 0.1 Outer circle - INR 3.8 Cr 248
WST
Value (INR Cr.) 254
0.2
0.5 196
0.4 Roto
WST 212
PPI, 1.4 238
SMC 0.2 SMC
0.5 WSPR 194
Roto 0.6 2.8 543
PPC, CCWS FRP
4.4 356
PS/FMD WSBM 2.0
PS/FMD 157
1.6 136
FRP WSCC
Others Others 154
1.2 131
3.8 0.7
Inner Circle –
- 200 400 600
Volume
(*10^6 Ltrs) MTD - Nov2019 H1 FY20

Sales vs. Production (MT) Collections (INR Cr.) # Payments (INR Cr.)
0.0
INR 6.8 Cr 0.1 Raw Material
143 0.2 0.0
Roto -
178 Stores
0.1
0.0 0.4
Duty & Taxes

BMC 31 0.3
Power & Fuel &
46 Other Utility
PPI, Labour
2.2
4 PPC, Transport
FRP
11 4.6
Salary and
Employee Expenses 3.2
1.5
Administrative &
PS 8
Other Expenses
- Sales (MT) Selling &
6.5 Distribution
Production (MT) Rent & Storage
10
SMC
54 Others
SBI TRA Other SBI Yes Axis INR 5.6 Cr
# All collections outside of PPC TRA (SBI 5029) is considered as collection of PPI. As per company records, MTD collections is as follows: PPC – INR 5.0 cr. PPI – INR 1.8 cr.
Bank (Amt in INR Cr.) SBI (TRA) SBI (Others) Axis YES IDBI
Page 66
Balance as on 8th Dec 16.70 1.59 0.08 0.23 0.1
 DRAFT
Dashboard – Auto Division for 1st Dec to 15th Dec

Sales achievement vs Budget Sales variance from budget by plant Sales by plant

Pithampur 48% Chennai I

3%
Chennai II + 20%
Sohna 62%
Painshop 23%
Pune + LRTM 51% Chennai IIA
50% Hosur 47% Hosur
11%
Chennai IIA 50% Pune +
LRTM
5%
Chennai II + Painshop 43% Sohna
26%
Chennai I 47% Pithampur 12%
Budgeted Sales – INR 36.02 Cr.
0% 20% 40% 60%
Actual sales as on date: INR 18.20 Cr.
Collections achieved for the month Break-up of payments Other operational Metrics
Admin + Other
Expenses 3% 5%
RM / BOP FG stock at plant
17% Target 14 days
Capex

Statutory dues
Achieved 7 days
49% Labour & Mfg 8%
PM+Stores
2% • While Industry standard is to
Power & Fuel 5% 53% maintain 2 weeks of FG, the unit is
unable to do so on account of
Projects significant WC stress
1% 4%
Total Budgeted Collections – INR 38.61 Cr. Employee exp • Amount blocked by SBI if released
2% can be utilized to increase FG stock
Actual collections as on date: INR 18.81Cr. Transporter levels

Page 67 Table of Contents

Production and Dispatches:
Plastic Division
Production data from 14th October 2019 to 30th November
DRAFT
2019 - Kalol
140
140 Production in MT Dispatch in MT 123
120 120

100 100

80 80
59
49 60 51 38
60 50 46 52 46
22 46 40 24 44 12 30 29
28 32 37 30
40 33 34 40 31 17 34 30 34
19 29 26 26 23 25 32 27 27
25
20 17 17 17 15 3 18
20 11 16 14 12 20 10 12
11 7 10 65 5 6
6 3 4
2 1 1
- 0
Roto Mould Blow Mould Fibre Reinforced Plastic Section Sheet Moulded Roto Mould Blow Mould Fibre Reinforced Plastic Section Sheet Moulded
Plastic Compound Plastic Compound

Week 15 Week 16 Week 17 Week 18 Week 19 Week 20 Week 21 Week 15 Week 16 Week 17 Week 18 Week 19 Week 20 Week 21

300
273
90% Capacity Utilisation Dispatch in INR lac
80% 77% 250
71%
70%
200
60%
47% 153
50%
150
25%
40% 22% 110 116
16% 106 100
28% 29% 23% 83
30% 15% 6% 100 86 89
12% 10% 75 56
16% 18% 22% 73 72
18% 61 63 60 35 44
20% 11% 16% 16% 17% 44
11% 15% 40 43 41 41
9% 7% 9% 50 20 32 32 34
10% 6% 8% 7
4% 12 9 19
6 9 8
0% 1
0
Roto Mould Blow Mould Fibre Reinforced Plastic Section Sheet Moulded
Roto Mould Blow Mould Fibre Reinforced Plastic Section Sheet Moulded
Plastic Compound
Plastic Compound
Week 15 Week 16 Week 17 Week 18 Week 19 Week 20 Week 21 Week 15 Week 16 Week 17 Week 18 Week 19 Week 20 Week 21

Production Data in the form of MIS is provided to the EY team on a daily basis

Page 69
Production data from 14th October 2019 to 30th November
DRAFT
2019 – Namakkal
60
60 Production in MT 53 Dispatch in MT 55

50 50
40 38
40 40 37
31 30 32
30 26 26 27 30 27 28 27
26 26
22 24
20 16 19
20 17 16
10 10 10
10 6 10
4
-
-
0
Week 15 Week 16 Week 17 Week 18 Week 19 Week 20 Week 21
Week 15 Week 16 Week 17 Week 18 Week 19 Week 20 Week 21
Roto Mould Blow Mould Roto Mould Blow Mould

45% Dispatch in INR lac

Capacity Utilisation 41% 160
143
40% 136
36% 140
35% 33%
120
30%
24% 95
23% 100
25% 22% 80 81
18% 80 71 68
20% 15%
15% 15% 59 56
15% 60
37 40
10% 8% 40 34
6%5% 20 21
5% 20
0%
0% 0
Week 15 Week 16 Week 17 Week 18 Week 19 Week 20 Week 21 Week 15 Week 16 Week 17 Week 18 Week 19 Week 20 Week 21
Roto Mould Blow Mould Roto Mould Blow Mould

Production Data in the form of MIS is provided to the EY team on a daily basis

Page 70
Production data from 14th October 2019 to 30th November
DRAFT
2019– Uluberia
120 Production in MT 120 Dispatch in MT
100 100 95

76
80 72 80
67 65 64
60 52 57 54
60
42 46
37 38
40 40 31
17 15 19
20 11 14 16 11 10 20 11
15 12 13
4 7
- 0
Week 15 Week 16 Week 17 Week 18 Week 19 Week 20 Week 21 Week 15 Week 16 Week 17 Week 18 Week 19 Week 20 Week 21
Roto Mould Blow Mould Roto Mould Blow Mould

Capacity Utilisation Dispatch in INR lac

90% 250 236
80%
80% 75%
69% 200
70%
159 155
60% 54% 139
150 131
50% 44%
38% 109
40% 92
100
30% 26% 24% 66
22%
20% 16% 16% 50 32 38
14% 15% 23 26 25
6% 15
10%
0
0%
Week 15 Week 16 Week 17 Week 18 Week 19 Week 20 Week 21
Week 15 Week 16 Week 17 Week 18 Week 19 Week 20 Week 21
Roto Mould Blow Mould
Roto Mould Blow Mould
Production Data in the form of MIS is provided to the EY team on a daily basis

Page 71
Production data from 14th October 2019 to 30th November
DRAFT
2019– Nalagarh
Production in MT 60 Dispatch in MT
60 53
50
50

40 40
35 33 35 33
31 30
27 30 27 25
30 24 23
23 22
20 17 20

10 7 6 7 7
10 4 4 4
3
- 0
Week 15 Week 16 Week 17 Week 18 Week 19 Week 20 Week 21 Week 15 Week 16 Week 17 Week 18 Week 19 Week 20 Week 21

Roto Mould Blow Mould Roto Mould Blow Mould

Capacity Utilisation 160 Dispatch in INR lac

50% 140 134
43%
45%
120
40% 36% 36%
34%
35% 100
30% 27% 74 73 74
24% 25% 80 67
25% 23% 65
59
20% 60
15% 40
9%
10% 15
20 15 11 13
5% 7 9 8
0% 0
Week 15 Week 16 Week 17 Week 18 Week 19 Week 20 Week 21 Week 15 Week 16 Week 17 Week 18 Week 19 Week 20 Week 21

Roto Mould Blow Mould Roto Mould Blow Mould

Production Data in the form of MIS is provided to the EY team on a daily basis

Page 72
Production data from 14th October 2019 to 30th November
DRAFT
2019– Butibori
30 Production in MT 30 Dispatch in MT
25 25 26
25 23 25
19 18 20
20 20 18
17 16 17
15 15
11 13
10 10
10 7
5 5 6 6
5 4 4 4
5
-
0
Week 15 Week 16 Week 17 Week 18 Week 19 Week 20 Week 21
Week 15 Week 16 Week 17 Week 18 Week 19 Week 20 Week 21
Roto Mould Blow Mould Roto Mould Blow Mould

45% 70 Dispatch in INR lac

40% Capacity Utilisation
60 60
40% 36% 60
35% 49
30% 50 45
30% 26% 29% 27% 43
25%
25% 40
32
20% 30 26
15%
8% 20 14
10% 11 11 12
8 8 8
5% 10
0% 0
Week 15 Week 16 Week 17 Week 18 Week 19 Week 20 Week 21 Week 15 Week 16 Week 17 Week 18 Week 19 Week 20 Week 21
Roto Mould Blow Mould Roto Mould Blow Mould

Production Data in the form of MIS is provided to the EY team on a daily basis

Page 73 Table of Contents

Manpower Attrition:
Plastic Division (PPC Team)
 DRAFT
PPC Manpower Movement – April to October 2019 indicates
significant attrition across locations and designations
Headcount Planned reduction Net planned headcount Headcount Attrition of retained
(1-Apr-2019) (Apr to Sept, 2019) (30-Sept-2019) (1-Oct-2019) employees

521 144 377 291 86

Review of unplanned attrition during Sept – Oct 2019

Zone/Branch-wise Summary Hierarchy/Grade-wise Summary
Employee Employee
Zone Branch CTC PM Designation CTC PM
Count Count
Chennai 10 3.6 Assistant General Manager 1 1.7
Trivandrum 7 3.5 Sr. Manager 2 2.2
South
Hyderabad 6 2.4 Manager 5 3.0
Bengaluru 4 1.3 Dy. Manager 6 3.2
Ahmedabad 11 4.4 Assistant Manager 8 3.6
Pune 6 2.1 Sr. Executive 21 7.2
West Jaipur 3 2.3 Executive 26 7.1
Mumbai 3 0.9 Sr. Officer 4 1.0
Bhopal 1 0.3 Officer 10 2.5
Delhi 7 2.4 Assistant 3 0.5
North Lucknow 7 2.5 -
Chandigarh 3 0.7 -
Ahmedabad HO Ahmedabad HO 11 3.1 -
Kolkata 6 1.9 -
East
Ranchi 1 0.4 -
Grand Total 86 31.9 Grand Total 86 31.9

Page 75 Table of Contents

Thank You