RATING RATIONALE
24Feb2025

A.S. Enterprise

Brickwork Ratings downgrades the ratings for the Bank Loan Facilities of Rs. 9.50 Crs. of A.S. Enterprise

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(05 Apr 2024)
Present
Fund Based (4.00) (4.00) Long Term BWR BB+ /Stable
Reaffirmation
BWR BB /Stable
Downgrade
9.00 9.00 Short Term BWR A4+
Reaffirmation
BWR A4
Downgrade
Non Fund Based 0.50 0.50 Short Term BWR A4+
Reaffirmation
BWR A4
Downgrade
(9.00) (9.00)
(2.00) (2.00)
Grand Total 9.50 9.50 (Rupees Nine Crores and Fifty 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 Ratings has downgraded the long-term rating to BWR BB (Stable) for the bank loan facilities of Rs. 4.00 Crs (Sub-Limit) and has downgraded the short-term rating to BWR A4 for the bank loan facilities of Rs.9.50 Crs (aggregate rated amount of Rs.9.50 Crs).

The rating downgrade reflects the decline in the company's financial profile in FY24, the decline in Tangible Net Worth and factors such as the economic conditions in the US and China, the growing market for Lab-grown Diamonds(LGD), and geopolitical tensions have negatively affected India’s Cut & Polished diamonds (CPD) exports. Despite these challenges, the company has been able to meet its debt obligations on time.

The outlook has been retained Stable as BWR believes that the business risk profile of the Company will be maintained over the medium term. The Stable outlook indicates a low likelihood of a rating change over the medium term.

For assigning the rating, BWR has relied upon the last 3 years of audited financials till FY24, projected financials for FY25 & FY26, and publicly available information and clarification provided by management.

KEY RATING DRIVERS

Credit Strengths:


Credit Risks:

ANALYTICAL APPROACH - Standalone

BWR has applied its rating methodology as detailed in the Rating Criteria (hyperlinks provided at the end of this rationale)

RATING SENSITIVITIES

Going forward, the firm's ability to increase the scale of operations, improve profit margins, and efficiently manage its working capital cycle and control receivables and payable days remains the key rating sensitivities

Positive: The ability of the company to increase in it's operating margins above 5.00%
Negative: Rating may be downgraded in case there is the deterioration in the operating margin below 5%.

LIQUIDITY INDICATORS - Adequate

The average utilization of the PCFC facility is 7.71% during the periods of 01-07-2024 to 31-12-2024. The firm has reported an adequate liquidity position as marked by comfortable current ratio of 1.69 times in FY24. Liquidity is further supported by a healthy ISCR & DSCR of 3.32 times and 2.87 times respectively in FY 2024. The firm has no current portion of long term debt (CPLDT) 31 Mar 2024 and 31 Mar 2025. The cash & bank balance stands at Rs 0.66 Crs as on 31st March 2024. The total debt / TNW stood at 0.80 times as on 31 Mar 2024.

ABOUT THE ENTITY
Macro Economic Indicator Sector Industry Basic Industry
Consumer Discretionary Consumer Durables Consumer Durables Gems, Jewellery And Watches

Incorporated in Jan 1986 as Partnership firm, A.S.Enterprise is involved in cutting polishing of rough diamonds.The Firm generally imports rough diamonds from Belgium, Thailand, U.S and polish them, and exports them to different countries. US contributes 40% of total exports and firm has its manufacturing division at Dahisar, Mumbai.

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 22 - 23
(Audited)
FY 23 - 24
(Audited)
FY 24 - 25
(Unaudited)
Operating Revenue Rs.Crs. 94.55 68.07 69.00
EBITDA Rs.Crs. 2.24 1.73 1.61
PAT Rs.Crs. 2.23 1.47 1.43
Tangible Net Worth Rs.Crs. 16.09 15.32 16.32
Total Debt / Tangible Net Worth Times 0.99 0.80 0.61
Current Ratio Times 1.41 1.69 1.30
KEY COVENANTS OF THE FACILITY RATED

The terms of sanction include standard covenants normally stipulated for bank loan facilities


STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

ANY OTHER INFORMATION

Nil

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating (2025) 2024 2023 2022
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
FB SubLimit LT (4.00)
BWR BB/Stable
(Downgrade)
05Apr2024
BWR BB+ Stable
(Reaffirmation)
06Jan2023
BWR BB+ Stable
(Reaffirmation)
NA
NA
Fund Based ST 9.00
BWR A4
(Downgrade)
05Apr2024
BWR A4+
(Reaffirmation)
06Jan2023
BWR A4+
(Reaffirmation)
NA
NA
Non Fund Based ST 0.50
BWR A4
(Downgrade)
05Apr2024
BWR A4+
(Reaffirmation)
06Jan2023
BWR A4+
(Reaffirmation)
NA
NA
NFB SubLimit ST (9.00)
BWR A4
(Downgrade)
05Apr2024
BWR A4+
(Reaffirmation)
06Jan2023
BWR A4+
(Reaffirmation)
NA
NA
NFB SubLimit ST (2.00)
BWR A4
(Downgrade)
NA
NA
NA
NA
NA
NA
Grand Total 9.50 (Rupees Nine Crores and Fifty lakhs Only)
Hyperlink/Reference to applicable Criteria
Analytical Contacts

Chinmaya R

Rating Analyst chinmaya.r@brickworkratings.com

Hari Kishan Yadav

Associate Director - Ratings hari.ky@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
A.S. Enterprise
ANNEXURE-I
Details of Bank Facilities rated by BWR
SL.No. Name of the Bank/Lender Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.) Complexity of the Instrument
1 Kotak Mahindra Bank Packing Credit in Foreign Currency (PCFC)Sanctioned _ 9.00 9.00 Simple##
Sub-Limit (FBP/FBD/FBN/FDBP/FUDBP/ AFDBC) Sanctioned (9.00)
Sub-Limit (Overdraft) Sanctioned (4.00)
Sub-Limit (WCDL) Sanctioned (2.00)
2 Kotak Mahindra Bank Forward ContractSanctioned _ 0.50 0.50 Simple##
Total 0.00 9.50 9.50
TOTAL (Rupees Nine Crores and Fifty lakhs Only)

## 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.

ANNEXURE-II
INSTRUMENT DETAILS

InstrumentIssue DateAmount (Rs.Crs)Coupon Rate (%)Maturity DateISIN ParticularsComplexity of the Instrument
NilNilNilNilNilNilNil

ANNEXURE-III
List of entities consolidated

Name of Entity% OwnershipExtent of consolidationRationale for consolidation
NilNilNilNil

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