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Ring Plus Aqua Limited Balance Sheet (Rs in Lakhs)

 

Particulars	31-03-2023	31-03-2022
Non-current Assets
Property, Plant and Equipment	8,793.44	6,925.54
Right-of-use asset	73.03	84.56
Capital work – in – progress	83.8	756.38
Other Intangible assets	–	0.28
Intangible assets under development	145.76	–
Investments	8.61	8.61
Other Financial Assets	33.03	19.32
Non-Current Tax Assets (Net)	41.94	7.27
Other non – current assets	81.75	453
Current assets
Inventories	5,013.76	5,158.89
Investments	3,957.59	2,257.39
Trade Receivables	6,768.80	4,702.75
Cash and Cash Equivalents	837.91	472.74
Bank Balances Other Cash and Cash Equivalents above	3.5	3.5
Other financial assets	3.04	18.48
Other current assets	241.25	403.9
Assets classified as held for sale	10.55	–
Equity and Liabilities
Equity share capital	775.67	775.67
Other Equity	15,418.17	11,466.61
Non-current liabilities
Deferred tax liabilities (Net)	320.35	380.72
Current liabilities
Borrowings	719.61	911.55
Trade Payables	7,426.52	6,394.09
Other Financial Liabilities	565.5	570.79
Provisions	536.99	511.95
Current Tax Liabilities (Net)	15.61	13.89
Other current liabilities	319.34	247.34
Total Assets	26,097.76	21,272.61
Total Equity and Liabilities	26,097.76	21,272.61

 Ring Plus Aqua Limited Profit & Loss Statement (Rs in Lakhs)

 

Particulars	31-03-2023	31-03-2022
Income
Revenue from Operations	37,480.74	31,201.85
Other Income	366.75	1,193.72
Total Income	37,847.49	32,395.57
Cost of raw materials consumed	15,487.91	12,404.12
Changes in inventories of finished goods and work-in-progress	224.8	56.66
Employee benefits expense	3,105.03	2,826.83
Finance costs	20.25	53.88
Depreciation and amortization expense	959.27	1,076.76
Other Expenses	12,533.47	10,818.85
Total expenses	32,330.73	27,237.10
Profit before exceptional items and tax	5,516.76	5,158.47
Exceptional Items	–	334.97
Profit before tax	5,181.79	5,158.47
Current tax	1,343.51	1,265.00
Deferred tax	-60.37	48.96
Tax in respect of earlier years	-12.4	-28.14
Total Tax Expense	1,270.74	1,285.82
Profit for the year	3,911.05	3,872.65
Remeasurements of post-employment benefit obligations	-3.27	52.85
Tax Impact on above	0.82	-13.3
Other Comprehensive Income	-2.45	39.55
Total Comprehensive Income for the year	3,908.60	3,912.20
Earnings per equity share of Rs. 10 each
Basic (in Rs.)	50.42	49.93
Diluted (in Rs.)	49.8	49.24

 Ring plus Aqua Limited Consolidated Cash Flow Statement (Rs in Lakhs)

 

Particulars	31-03-2023	31-03-2022
Cash Flow from Operating Activities
Profit before exceptional items and tax	5,516.76	5,158.47
Adjustments for:
Depreciation and amortization expense	959.27	1,076.76
Employee benefit expense (ESOP)	42.96	44.98
Net (Gain)/Loss on sale/discard of Property, Plant and Equipment	9.31	-434.68
Net (Gain) on Sale and Fair Valuation of Investments	-150.52	-65.22
Deposits Written off	10.89	0.24
Less : Provision there against	-10.89	–
Dividend Income	-0.04	-0.04
Interest Income	-22.26	-214.57
Finance Cost	20.25	53.88
Operating Cash Profit before Working Capital Changes	6,375.73	5,619.81
Add/(Deduct):
(Increase)/Decrease in Inventories	145.14	-241.38
(Increase) in Trade and Other Receivables	-1,858.51	-747.4
Increase in Trade and Other Payables	1,091.38	495.36
Increase/(Decrease) in Provisions	21.76	39.59
Less : Taxes Paid (Net)	1,375.63	1,278.30
Less : Exceptional Items – Payment towards VRS	334.97	–
Net Cash Inflow from Operating Activities	4,064.90	3,887.68
Cash Flow from Investing Activities
Payments for Property, Plant & Equipment & Intangible Assets	-1,973.27	-1,365.70
Receipts on Sale of Property, Plant & Equipments	9.31	847.75
Repayment received of Inter corporate loan given	–	5,000.00
Sale proceeds of current investment	1,000.31	8,929.80
Payment for Purchase of Current Investments	-2,550.00	-9,821.38
Interest Income	22.26	214.57
Dividend Received	0.04	0.04
Net Cash Inflow/(Outflow) from Investing Activities	-3,491.35	3,805.08
Cash Flow from Financing Activities
Dividend Paid	–	-7,213.70
Proceeds from Deposits	–	50
Repayment of Non-current Borrowings	-9.69	-25.84
Repayment of Current Borrowings (net)	-182.26	-147.95
Interest Paid	-16.43	-53.88
Net Cash Outflow from Financing Activities	-208.38	-7,391.37
Net Increase in Cash and Cash Equivalents	365.17	301.4
Add: Balance at the beginning of the financial Year	472.74	171.35
Cash and Cash Equivalents as at the end of the Year	837.91	472.74

 Cash Flow from Operating Activities:

Positive Points:

Operating cash profit before working capital changes has increased from 5,619.81 in 31-03-2022 to 6,375.73 in 31-03-2023, indicating improved operational performance.

Net cash inflow from operating activities has also increased from 3,887.68 to 4,064.90 during the same period, indicating better cash generation from core operations.

Negative Points: There’s an increase in trade and other receivables by 1,858.51 and a decrease in trade and other payables by 1,091.38, which may indicate issues with receivables management or delayed payments from customers.

Taxes paid have increased from 1,278.30 to 1,375.63, which may be due to increased profitability or changes in tax rates.

 

Cash Flow from Investing Activities:

Positive Points:

Receipts on sale of property, plant & equipment have increased from 847.75 to 9.31, indicating some divestment or optimization of assets.

There ‘s a significant repayment received of inter-corporate loan given, indicating some liquidity infusion from external sources.

Negative Points:

Payments for property, plant & equipment & intangible assets have increased from -1,365.70 to -1,973.27, indicating increased investment in fixed assets.

Payment for the purchase of current investments has decreased, indicating reduced investment in marketable securities.

 

Cash Flow from Financing Activities:

Positive Points:

There ‘s no dividend paid in 31-03-2023 compared to 7,213.70 in 31-03-2022, indicating better cash retention or improved financial performance.

Some repayment of non-current borrowings has occurred, indicating a reduction in long-term debt.

Negative Points:

Net cash outflow from financing activities has decreased from -7,391.37 to -208.38, indicating a reduction in cash outflow from financing activities.

There ‘s a repayment of current borrowings (net) indicating some debt repayment.

 Dividend history

Category	31-03-2023	31-03-2022
Dividend paid	–	-7,213.70
Retained earnings	13,328.35	9,419.75
Total	13,328.35	2,206.05

 Financial Ratios of Ring Plus Aqua Limited 

 

Ratios	31-03-2023	31-03-2022
Current Ratio	1.76	1.46
Debt-Equity Ratio	0.04	0.07
Debt Service Coverage Ratio	241.53	62.76
Return on Equity Ratio	28%	28%
Inventory turnover ratio	4.74	3.92
Trade Receivables turnover ratio	6.01	6.98
Trade payables turnover ratio	4.07	3.66
Net capital turnover ratio	4.76	7.23
Net profit ratio	11%	14%
Return on Capital employed	30%	39%
Return on investment	5%	4%

 Current Ratio:

Increased from 1.46 in 31-03-2022 to 1.76 in 31-03-2023, indicating improved short-term liquidity. The company has more current assets relative to current liabilities, which suggests a healthier liquidity position.

 Debt-Equity Ratio:

Decreased from 0.07 in 31-03-2022 to 0.04 in 31-03-2023, indicating a reduction in the proportion of debt relative to equity. This signifies a lower financial risk and improved solvency.

 Debt Service Coverage Ratio:

Increased significantly from 62.76 to 241.53, indicating an improvement in the company ‘s ability to service its debt obligations. This suggests that the company is generating sufficient operating income to cover its debt obligations.

 Inventory Turnover Ratio:

Increased from 3.92 to 4.74, indicating that the company is selling its inventory at a faster rate in 31-03-2023 compared to 31-03-2022. This indicates improved inventory management efficiency.

Trade Receivables Turnover Ratio:

Decreased from 6.98 to 6.01, indicating a decrease in the speed at which the company collects payments from its customers. This might indicate less efficient management of accounts receivable.

Trade Payables Turnover Ratio:

Increased from 3.66 to 4.07, indicating that the company is taking longer to pay its suppliers. While this can improve cash flow, it might strain supplier relationships.

Net Capital Turnover Ratio:

Decreased from 7.23 to 4.76, indicating a decline in the efficiency of capital utilization. This suggests that the company is generating less revenue per unit of capital invested.

Net Profit Ratio:

Decreased from 14% to 11%, indicating a lower percentage of net profit generated relative to total revenue. This could be due to increased expenses or decreased revenue.

 Return on Equity (ROE) Ratio:

Remained constant at 28%, indicating that the company is generating a consistent return on shareholders ‘ equity.

Return on Capital Employed (ROCE) Ratio:

Decreased from 39% to 30%, indicating a decline in the efficiency of capital utilization. This suggests that the company is generating lower profits relative to its capital employed.

 Return on Investment (ROI) Ratio:

Increased from 4% to 5%, indicating a slightly better return on investment in 31-03-2023 compared to 31-03-2022.

Industry Overview of ring plus Aqua limited

India is the 4th largest auto market in the world. India is expected to replace Japan as the third-largest auto market by 2021. In India, the two-wheeler segment dominates the automobile market in terms of volume. Apart from this, India is the largest Tractor manufacturer, 2nd largest bus manufacturer, and 3rd largest heavy trucks manufacturer in the world. India is also a big exporter of automobiles and automotive products and has very strong growth expectations in the future.

In FY 2020, India manufactured 2.63 Crore vehicles and sold 2.15 Crore vehicles. Automobile production at the domestic level increased at a CAGR of 2.36% from FY 2016 to FY 2020 and sales increased at a CAGR of 1.29% for the same period. The Electrical Vehicle market of India is projected to grow at a CAGR of 44% between 2020-2027 and is expected to touch annual sales of 63.4 lakh units by 2027. Indian automotive industry (including component manufacturing) is expected to reach Rs. 16-18trillion by 2026.

FY 2021 was one of the toughest years in the history of the Indian automotive industry due to the outbreak of the COVID 19 pandemic. The Automobile industry was already facing headwinds due to the slowing economy was stopped completely due to nationwide lockdown in 2020. The Indian automotive industry in FY 2021 registered a decline of 13.6%. However, the last 2 quarters have been relatively better than the first 2 quarters of FY 2021. The 4th Quarter of FY 2021 registered an increase of 25.89% in total sales of automobiles when compared to the 3rd quarter of FY 2021. The Passenger Vehicle segment saw a total decline of 2.24% in FY 2021. However, the Passenger Vehicle segment performance in the 4th quarter improved strongly with a year-on-year increase of 42.4%.

For the Auto component, the scenario is the same as the automobiles. Sales of the automotive components sharply fell in the first 2 quarters of FY 2021. Later in the 3rd and 4th quarter of FY 2021, the market started picking up the sales.

The Indian automotive industry is expected to book growth in FY 2022. However, it is projected that the passenger vehicle segment will reach the levels of FY 2019 only in FY 2023-24. ICRA, a rating agency, expects domestic auto component industry revenue to grow by 16-18% in FY 2020. The outlook for the auto component industry has changed from Negative to Stable backed by an increase in demand across Original Equipment manufacturers, replacements, and exports.

 Annual Report- 2022-23