RATING RATIONALE
30Mar2021

Tejas Rasayan Pvt Ltd

Brickwork Ratings revises the ratings for the Bank Loan Facilities of Rs. 6.93 Crs. of Tejas Rasayan Pvt Ltd

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(11 Jan 2020)
Present
Fund Based 6.24 6.93 Long Term BWR B (Stable)
Reaffirmed
BWR B + /Positive
Upgrade
Grand Total 6.24 6.93 (Rupees Six Crores and Ninety Three lakhs Only)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure


RATING ACTION / OUTLOOK

Brickwork rating has upgraded the long-term rating of Tejas Rasayan Pvt. Ltd. at BWR B+ with a Positive Outlook on account of diversified experience of the management, moderate capital structure, healthy debt protection metrics, moderate production capacity and optimum capacity utilization.

The revision in outlook to 'Positive' reflects improvement in the company's business and financial risk profile. The company reported Total Operating Income amounting Rs.9.81 Cr. in FY20 and further projects to achieve over Rs.15.00 Cr. in FY21 (Proj.).

The rating, however, is constrained by intense competition, fragmented nature of the industry, regulatory risk and agro climatic risk.

KEY RATING DRIVERS


Credit Strengths:


Credit Risks:

RATING SENSITIVITIES

Going forward, the company's ability to maintain its business and financial risk profile would be the key sensitivities over the short to medium term.

Positive : The rating may be upgraded if the company maintains the current liquidity profile and profitability margins. 

Negative : The rating may be downgraded if there is a dip in top-line and deterioration in current capital structure.

LIQUIDITY INDICATORS - Adequate

Liquidity position of the Company is adequate, marked by moderate Net Cash Accruals of Rs.1.28 Cr. in FY20 which has been projected to increase to Rs.1.48 Cr. in FY21 (Proj.) The same are sufficiently matched with debt obligations of Rs.0.81 Cr. depicting the company's more than sufficient liquidity. Average utilization of CC is 82.57%  in the last 6 months. However the Conversion cycle has been elongated at 135 Days in FY20 mainly because of the higher inventory days. Cash and Cash Equivalents were low at Rs.0.04 Cr. in FY20 which has projected to be at the same level i,e. at Rs.0.03 Cr. in FY21.

ABOUT THE ENTITY

Tejas Rasayan Pvt Ltd was incorporated in the year 2011 with registered office located at Hauz Khas, Delhi. The company set up a fertilizer and pesticide manufacturing plant in 2018 at Muzaffarnagar, Uttar Pradesh with total capacity of 4800 MT Per Annum. Over the years the installed production capacity of the Plant has been enhanced to 5500 MT which has been utilized up-to 5261 MT in FY21 which comes out to be 95% utilization of the total production capacity. 
Mr. Mukesh Kumar, Mr. Udit Jain, Mr. Umang Jain and Mr. Arpit Garg are directors and handling all the affairs of the company. The directors have also been involved in doing business in various industries spanning rolling mills, paper mills, trading of sponge iron. 

The name of the company at the time of incorporation was “M/s Silverton Holiday Homes (P) Ltd., initially the main object of the company was to set-up a hotel but the same couldn’t be materialized and directors of the company decided to establish a fertilizer manufacturing unit and the name of the company was changed to M/s Tejas Rasayan (P) Ltd.

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 19-20
(Audited)
FY 18-19
(Audited)
Operating Revenue Rs.Crs. 9.81 0.86
EBITDA Rs.Crs. 1.98 0.11
PAT Rs.Crs. 0.34 -0.49
Tangible Net Worth Rs.Crs. 2.34 1.99
Total Debt/Tangible Net Worth Times 3.69 3.92
Current Ratio Times 1.49 1.16

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating (2021) 2020 2019 2018
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 6.93
BWR B+/Positive
11Jan2020
BWR B (Stable)
NA
NA
19Jun2018
BWR B (Stable)
Grand Total 6.93 (Rupees Six Crores and Ninety Three lakhs Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - NA

BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.

Analytical Contacts

Aayush Verma

Rating Analyst Board : +91 11 2341 2232 aayush.v@brickworkratings.com

hari.ky@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Tejas Rasayan Pvt Ltd
ANNEXURE-I
Details of Bank Facilities rated by BWR
SL.No. Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 Cash CreditSanctioned 2.00 _ 2.00
2 Term LoanSanctioned 3.73 _ 3.73
3 GECLSanctioned 1.20 _ 1.20
Total 6.93 0.00 6.93
TOTAL (Rupees Six Crores and Ninety Three lakhs Only)
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