Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 5.95 Crs. of Accufox Enterprises Pvt Ltd.
Particulars| Facilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
|---|---|---|---|---|---|
| Previous | Present | Previous (04 Aug 2020) |
Present | ||
| Fund Based | 7.35 | 5.95 | Long Term |
BWR B+/Stable
Reaffirmation |
BWR B +
/Stable Reaffirmation |
| Grand Total | 7.35 | 5.95 | (Rupees Five Crores and Ninety Five lakhs Only) | ||
BWR reaffirmed the long term rating of BWR B+ Stable of Accufox Enterprises Private Limited.
The rating draws strength from the extensive experience of the promoters along with reputed brand Franchise and moderate financial risk profile. The rating of the company is constrained by l high gearing level along with low profitability margins, and intense competition and fragmented industry structure.
BWR believes that the business risk profile of “Accufox Enterprises 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 gearing level of the company and 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 DRIVERSCredit Strengths:
The promoters of the company have extensive experience of 30 years in jewellery business that helps them to maintain a better relationship with their customers and suppliers as well. The company has a franchise of well reputed brand P.C Jewellers that helps them to improve their revenues growth in future.
The company has moderate financial risk profile with revenues of Rs 18.57 crores in FY20 (Audited) that is declined as compared to previous year of Rs 22.44 crores in FY19 (Audited) due to lockdown impact and further declined to Rs 15.19 crores in FY21 (Provisional), However company has achieved revenues of Rs 6.00 crores till July 2021 and Projected to achieved revenues of Rs 18.00 crores in FY22 (Projections) along with Moderate Debt Service Indicators Interest Service Coverage Ratio of 1.20 Times & Debt Service Coverage Ratio of 1.27 Times in FY20 (Audited). The company has current ratio of 1.22 Times in FY20 (Audited).
Credit Risks:
The company has high gearing level with TD/TNW of 3.51 Times in FY20 (Audited) and low Profitability Margins with Net Profit Margins of 0.71% in FY20 (Audited) and Operating Profit Margins of 6.70%.
The Gems & Jewellery is cyclical in nature as the demands grow normally during festivities. The company has more demand during the peak season from September to December. The presence of various organised and unorganised players make the industry fragmented. Thus the company faces stiff competition from other established players, which limits its bargaining power and exerts pressure on its margins.
Going forward, the ability of the company to improve its gearing level, profitability margins and financial risk profile would remain the key rating sensitivities.
Positive: Rating may be upgraded in case of substantial improvement in revenues , gearing level and profitability margins.
Negative: Rating may be downgraded in case there is deterioration in financial risk profile of the company.
LIQUIDITY INDICATORS - Stretched
The company has nil associate concerns or subsidiary concerns..
The company has cash & Bank balances in FY19 (Audited) is Rs 0.35 crs and current investments include purchase of shares of Rs 1.50 crores of a company which is not related to them.
The company has average utilisation of 98% of their cash credit limit from last six months.
The company has long term debt of Rs 0.34 crs as at FY20 (Audited) which comprises of term loan from State Bank of India of Rs 0.34 crores. The company has current maturities of long term debt of Rs 0.48 crores in FY20 (Audited) and the company has cash accruals of Rs 0.35 crores against them.
The company has Interest service coverage ratio of 1.20 times and Debt Service Coverage Ratio of 1.27 times in FY20 (Audited).
The current ratio has been 1.22 Times as at FY20 (Audited).
The company has conversion cycle of 160 days due to high days Inventory of 183 days in FY20 (Audited).
M/s Accufox Enterprises Private Limited ,incorporated in 03/08/2017 and operations started from February 2018, , is a private limited company with its official address at Rudrapur (Uttrakhand) and showroom address at C-43 CA, C-43/1 CA, Kashipur Bypass Road, Rudrapur. 2 The company is managed by directors Mr Basant Ballabh Bhatt ,Mr Rajeev Tiwari, and Mrs Mohini Devi. The company has a franchise of PC Jewellers and is engaged in all kinds of Jewellery and precious stones. The company has an agreement with PC Jewellers till June 2030.
KEY FINANCIAL INDICATORS (Standalone)| Key Parameters | Units |
FY 19-20 (Audited) |
FY 18-19 (Audited) |
|---|---|---|---|
| Operating Revenue | Rs.Crs. | 18.57 | 22.44 |
| EBITDA | Rs.Crs. | 1.24 | 0.86 |
| PAT | Rs.Crs. | 0.13 | -0.03 |
| Tangible Net Worth | Rs.Crs. | 2.51 | 2.37 |
| Total Debt/Tangible Net Worth | Times | 3.51 | 4.18 |
| Current Ratio | Times | 1.22 | 1.20 |
| Facilities | Current Rating (2021) | 2020 | 2019 | 2018 | |||||
|---|---|---|---|---|---|---|---|---|---|
| Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
| Fund Based | LT | 5.95 |
BWR B+/Stable
(Reaffirmation) |
04Aug2020 |
BWR B+Stable
(Reaffirmation) |
30Jul2019 |
BWR B+Stable
(Reaffirmation) |
28Jun2018 |
BWR B+ Stable
(Assignment) |
| Grand Total | 5.95 | (Rupees Five Crores and Ninety Five 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.
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 | |
| SL.No. | Name of the Bank/Lender | Type Of Facilities | Long Term(Rs.Crs.) | Short Term(Rs.Crs.) | Total(Rs.Crs.) | |
|---|---|---|---|---|---|---|
| 1 | State Bank Of India (SBI) | Cash CreditSanctioned | 4.50 | _ | 4.50 | |
| 2 | State Bank Of India (SBI) | Term LoanSanctioned | _ | _ | 0.00 | |
| 3 | State Bank Of India (SBI) | Electronic Dealer Finance System (e-DFS)Sanctioned | _ | _ | 0.00 | |
| 4 | State Bank Of India (SBI) | GECLSanctioned | 1.45 | _ | 1.45 | |
| Total | 5.95 | 0.00 | 5.95 | |||
| TOTAL (Rupees Five Crores and Ninety Five lakhs Only) | ||||||
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