RATING RATIONALE
21Oct2021

FLIC Microwaves Pvt Ltd

Brickwork Ratings downgrades the ratings for the Bank Loan Facilities of Rs. 13.88 Crs. of FLIC Microwaves Pvt. Ltd.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(11 Jun 2020)
Present
Fund Based 12.48 12.38 Long Term BWR B-/Stable
Downgrade/ISSUER NOT COOPERATING*
BWR D
Downgrade
Non Fund Based 1.50 1.50 Short Term BWR A4
Reaffirmation/ISSUER NOT COOPERATING*
BWR D
Downgrade
Grand Total 13.98 13.88 (Rupees Thirteen Crores and Eighty Eight 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 D’ and downgraded the short term rating to "BWR D' and removed the Ratings from "Issuer Not Cooperating" category for the bank loan facilities of FLIC Microwaves Pvt. Ltd.

The rating has factored, inter alia, extensive business experience of directors of nearly  three decades, long existence of the company and well established client base. However, the rating is constrained by declining operating income, continuous PAT Loss,  stretched liquidity and delays in payment obligations as confirmed by its Banker. Going forward, ability of the company to scale up its operations, to improve its profit margins,  to improve its gearing and to regularise its debt repayments in an intensely competitive industry will remain the key rating sensitivities.

KEY RATING DRIVERS

Credit Strengths:


Credit Risks:

RATING SENSITIVITIES

Going forward, the ability of the company to scale up its operations and to  improve its profit margins and its gearing would be the key rating sensitivities. 

Positive: The rating may be positively revised if there is further growth in revenue and profit margins while maintaining a healthy overall financial profile.

Negative: The rating may be adversely affected if there is deterioration in capital structure, profit margins and any delays in payment of its debt obligations.

LIQUIDITY INDICATORS - Stretched

The Company has been in stretched liquidity with current ratio of 0.80 times in FY19 and with current ratio of 0.91 times in FY20.

ABOUT THE ENTITY

FLIC Microwaves Private Limited was incorporated in 1992 with registered office in Hyderabad, Telangana. Mr. Sukumar Pradhan, Mr. Prasanta Pradhan, Mrs. Sagarika Pradhan and Mrs. Nivedita Mohanty are the directors of the company. The company is engaged in design and develops, and manufactures customized sub-systems and components for microwave communication systems used in the Defence, Space, Telecommunication sectors and other measurement industries. The company has its manufacturing unit located located in Survey No. 75/2, Balapur Village, Balapur Mandal. Hyderabad. The Company's prime customers are Defence Research Development Organisation (DRDO), Bharat Electronics Ltd (BEL),   Defence Electronics Research Laboratory (DERL) and Defence Avionics Research Establishment (DARE), etc.

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 19-20
(Audited)
FY 18-19
(Audited)
Operating Revenue Rs.Crs. 8.19 9.41
EBITDA Rs.Crs. 2.76 1.94
PAT Rs.Crs. -0.31 -0.22
Tangible Net Worth Rs.Crs. 3.69 4.09
Total Debt/Tangible Net Worth Times 4.08 3.59
Current Ratio Times 0.91 0.80
KEY COVENANTS OF THE FACILITY RATED

The terms of sanction include standard covenants normally stipulated for such facilities.


NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

NIL

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 12.38
BWR D
(Downgrade)
11Jun2020
BWR B-Stable
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
18Jan2018
BWR B+Stable
(Assignment)
Non Fund Based ST 1.50
BWR D
(Downgrade)
11Jun2020
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
18Jan2018
BWR A4
(Assignment)
Grand Total 13.88 (Rupees Thirteen Crores and Eighty Eight 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

Soubhagya Ranjan Kahalsingh

Ratings Analyst Board : +91 80 4040 9940 soubhagya.rs@brickworkratings.com

Nagaraj K

Associate Director - Ratings Board : +91 80 4040 9940 nagaraj.ks@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
FLIC Microwaves 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 Indian Bank Term LoanSanctioned 5.11 _ 5.11
2 Indian Bank Term LoanProposed _ _ 0.00
3 Indian Bank Open Cash Credit / Cash Credit (Hypothecation/Pledge)Sanctioned 3.90 _ 3.90
4 Indian Bank Bank GuaranteeSanctioned _ 1.50 1.50
5 Indian Bank Covid -19 Emergency Line CreditSanctioned 0.35 _ 0.35
6 Indian Bank Funded Interest Term LoanSanctioned 1.01 _ 1.01
7 Indian Bank GECLSanctioned 2.01 _ 2.01
Total 12.38 1.50 13.88
TOTAL (Rupees Thirteen Crores and Eighty Eight lakhs Only)
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