RATING RATIONALE
24Aug2021

Geberit Electronics Pvt. Ltd.

Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 7.50 Crs. of Geberit Electronics Pvt. Ltd.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(11 Jun 2021)
Present
Fund Based 3.00 1.50 Long Term BWR B+ Stable
Reaffirmation/ISSUER NOT COOPERATING*
BWR B + /Stable
Reaffirmation
Non Fund Based 12.00 6.00 Short Term BWR A4
Reaffirmation/ISSUER NOT COOPERATING*
BWR A4
Reaffirmation
Grand Total 15.00 7.50 (Rupees Seven 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

BWR reaffirmed the long term rating of BWR B+ Stable and Short Term Rating of  BWR A4 for Geberit Electronics Private Limited.

The rating draws strength from the rich experienced promoters and long track record of the company and moderate scale of operations. The rating of the company is constrained by low profitability margins and low interest service coverage ratio along with competition from various organised and unorganised players.

 BWR believes that the business risk profile of “Geberit Electronics Private Limited.” 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 “Positive” in case there is significant improvement in revenues, improvement in   profit margins of the company. The rating outlook may be revised to “Negative” if there is any deterioration in the financial risk profile.

KEY RATING DRIVERS

Credit Strengths:


Credit Risks:

RATING SENSITIVITIES

Going forward, the ability of the company to improve its revenues, profitability margins and financial risk profile would remain the key rating sensitivities.

Positive: Rating may be upgraded in case of substantial improvement in revenues and profitability margins.

Negative: Rating may be downgraded in case there is deterioration in financial risk profile of the company

LIQUIDITY INDICATORS - Adequate

1. The company  has Subsidiary  concern with the name of Subh Labh Tie Up Private Limited, and Associate Concerns with the name of Bhuwalka Makers Private Limited, and RV Medicare Private Limited, There is no such operational linkages betwen them. However the Company has Non  Current Investments in their subsidiary concerns of Rs 0.39 Crores in FY20 (Audited).

2. The company has cash & bank balances of Rs 1.54 crores in FY20 (Audietd).

3. The company has average utilisation of 80% for last six months of cash credit limit.

4.The company has nil long term borrowings.

5. The company has Interest Service Coverage Ratio of 0.67 Times and Debt Service Coverage Ratio of 1.62 Times in FY20 (Audited).

6. .The current ratio has been 1.86 Times as at FY20 (Audited).

7.. The company has low  conversion cycle of 26 days in FY20 (Audited).

ABOUT THE ENTITY

Geberit Electronics Private limited was established in 1996,and engaged in trading of Optical Outdoor Amplifier, Optical indoor Amplifier,Optical Transmitters, CATV Power Supply, Cable Construction, Optical Network, Plastic Raw Material and Other Electronics Items. Company has its office located at Jhilmil Industrial Area, East Delhi. The Company is currently managed by Mr Ghanshyam Dass and Mr Loveen Gupta. The Product are basically used for Telecom & Mobile Operators, Fiber Network Roll Out, Network Operators and Other Networking projects so as to cater the needs of different companies.

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 19-20
(Audited)
FY 18-19
(Audited)
Operating Revenue Rs.Crs. 17.92 19.90
EBITDA Rs.Crs. 0.14 0.08
PAT Rs.Crs. 0.13 0.08
Tangible Net Worth Rs.Crs. 4.54 4.42
Total Debt/Tangible Net Worth Times 0.30 0.34
Current Ratio Times 1.86 1.57

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating (2021) 2021 (History) 2020 2019 2018
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating Date Rating
Fund Based LT 1.50
BWR B+/Stable
(Reaffirmation)
11Jun2021
BWR B+ Stable
(Reaffirmation/ISSUER NOT COOPERATING*)
05Mar2020
BWR B+ Stable
(Assignment)
NA
NA
NA
NA
Non Fund Based ST 6.00
BWR A4
(Reaffirmation)
11Jun2021
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
05Mar2020
BWR A4
(Assignment)
NA
NA
NA
NA
Grand Total 7.50 (Rupees Seven Crores and Fifty 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.

Hyperlink/Reference to applicable Criteria
Analytical Contacts

Aman sharma

Rating Analyst Board : +91 172 5032 295 / 6 aman.s@brickworkratings.com

V.K.Kukreja

Associate Director - Ratings Board : +91 11 2341 2232 kukreja.vk@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Geberit Electronics Pvt. Ltd.
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.)
1 Jammu and Kashmir Bank Cash CreditSanctioned 1.50 _ 1.50
2 Jammu and Kashmir Bank Cash CreditProposed _ _ 0.00
3 Jammu and Kashmir Bank FLC(DA/DP)Sanctioned _ 6.00 6.00
4 Jammu and Kashmir Bank FLC(DA/DP)Proposed _ _ 0.00
Total 1.50 6.00 7.50
TOTAL (Rupees Seven Crores and Fifty lakhs Only)
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.

About Brickwork Ratings

Brickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. BWR has rated over 11,400 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partner. BWR has its corporate office in Bengaluru and a country-wide presence with its offices in Ahmedabad, Chandigarh, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi along with representatives in 150+ locations.

Disclaimer

Brickwork Ratings India Pvt. Ltd. (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by the Reserve Bank of India [RBI], offers credit ratings of Bank Loan facilities, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. [ hereafter referred to as "Instruments"]. BWR also rates NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations.

BWR wishes to inform all persons who may come across Rating Rationales and Rating Reports provided by BWR that the ratings assigned by BWR are based on information obtained from the issuer of the instrument and other reliable sources, which in BWR's best judgment are considered reliable. The Rating Rationale / Rating Report & other rating communications are intended for the jurisdiction of India only. The reports should not be the sole or primary basis for any investment decision within the meaning of any law or regulation (including the laws and regulations applicable in Europe and also the USA).

BWR also wishes to inform that access or use of the said documents does not create a client relationship between the user and BWR.

The ratings assigned by BWR are only an expression of BWR's opinion on the entity / instrument and should not in any manner be construed as being a recommendation to either, purchase, hold or sell the instrument.

BWR also wishes to abundantly clarify that these ratings are not to be considered as an investment advice in any jurisdiction nor are they to be used as a basis for or as an alternative to independent financial advice and judgment obtained from the user's financial advisors. BWR shall not be liable to any losses incurred by the users of these Rating Rationales, Rating Reports or its contents. BWR reserves the right to vary, modify, suspend or withdraw the ratings at any time without assigning reasons for the same.

BWR's ratings reflect BWR's opinion on the day the ratings are published and are not reflective of factual circumstances that may have arisen on a later date. BWR is not obliged to update its opinion based on any public notification, in any form or format although BWR may disseminate its opinion and analysis when deemed fit.

Neither BWR nor its affiliates, third party providers, as well as the directors, officers, shareholders, employees or agents (collectively, "BWR Party") guarantee the accuracy, completeness or adequacy of the Ratings, and no BWR Party shall have any liability for any errors, omissions, or interruptions therein, regardless of the cause, or for the results obtained from the use of any part of the Rating Rationales or Rating Reports. Each BWR Party disclaims all express or implied warranties, including, but not limited to, any warranties of merchantability, suitability or fitness for a particular purpose or use. In no event shall any BWR Party be liable to any one for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of any part of the Rating Rationales and/or Rating Reports even if advised of the possibility of such damages. However, BWR or its associates may have other commercial transactions with the company/entity. BWR and its affiliates do not act as a fiduciary.

BWR keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of the respective activity. As a result, certain business units of BWR may have information that is not available to other BWR business units. BWR has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.

BWR clarifies that it may have been paid a fee by the issuers or underwriters of the instruments, facilities, securities etc., or from obligors. BWR's public ratings and analysis are made available on its web site, www.brickworkratings.com. More detailed information may be provided for a fee. BWR's rating criteria are also generally made available without charge on BWR's website.

This disclaimer forms an integral part of the Ratings Rationales / Rating Reports or other press releases, advisories, communications issued by BWR and circulation of the ratings without this disclaimer is prohibited.

BWR is bound by the Code of Conduct for Credit Rating Agencies issued by the Securities and Exchange Board of India and is governed by the applicable regulations issued by the Securities and Exchange Board of India as amended from time to time.