Windsor Industries Pvt. Ltd.

Brickwork Ratings reaffirm the rating for the Bank Loan Facilities of Rs. 10.64 Crs. of Windsor Industries Pvt. Ltd.

Particulars

Facilities**	Amount (Rs.Crs.)		Tenure	Rating#
Facilities**	Previous	Present	Tenure	Previous (24 Sep 2020)	Present
Fund Based	11.00	10.64	Long Term	BWR BBB+/Stable Assignment	BWR BBB + /Stable Reaffirmation
Grand Total	11.00	10.64	(Rupees Ten Crores and Sixty Four 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 has reaffirm the long term rating as “BWR BBB+'' with “Stable” outlook for the bank loan facilities of Windsor Industries Pvt Ltd .

BWR has reaffirm the long term rating at “BWR BBB+'' with “Stable” outlook for the bank loan facilities of Windsor Industries Pvt Ltd .The rating draws strength from Management experience, Moderate financial profile, Diversified customer base and New concept of biodegradable product. However, the rating is constrained on account of Competition in the industry and Fluctuations in raw material prices.

The rating outlook has been assigned as "Stable" as BWR believes that Windsor Industries Pvt Ltd business risk profile 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 the revenues and profits show sustained improvement. The rating outlook may be revised to 'Negative' if the financial risk profile goes down.

KEY RATING DRIVERS

Credit Strengths:

Management Experience :
The directors are well experienced and qualified having more than 40 years of business experience. The directors of the company are assisted by a team of professionals who are highly experienced in their respective domains. The company is in existence for 8 years and has seen complete business cycle.
Moderate Financial Profile :
Gross sales has decreased from Rs.140.42crs in FY20(A) to 126.59crs in FY21(A). Company has generated gross sales of Rs.82.51crs from 1.04.2021 to 31.10.2021 against the projected revenue of Rs.121.00crs in FY22(P). Tangible net worth increased from Rs.34.54crs in FY20(A) to Rs.37.88crs in FY21(A).Operating profit margin marginally decreased from 7.81% in FY20(A) to 7.16% in FY21(A). Net profit margin marginally decreased from 3.83% in FY20(A) to 3.13% in FY21(A). ISCR has decreased from 24.17x in FY20(A) to 22.51x in FY21(A). DSCR has also decreased from 17.62x in FY20(A) to 08.20x in FY21(A). Conversion cycle of 39 days is reported in FY21(A). Current ratio decreased from 2.21x in FY20(A) to 1.98x in FY21(A). TOL/TNW increased from 0.49x in FY20(A) to 0.52x in FY21(A). Debt Equity Ratio improved from 0.18x in FY20(A) to 0.08x in FY21(A).
Diversified Customer Base :
The company supplies to several well- established institutional customers in the FMCG (Fast Moving Consumer Goods) market with major sales being derived from Godrej & Boyce Manufacturing Company Limited, which contributed ~20% of the total operating income in FY21(A). Further, the company also supplies to other institutional customers in the domestic market including Amber Enterprises India Limited, Steelbird Hi-Tech India Limited, Revs Enterprises, etc.
New concept of Biodegradable Disposable Crockery :
Company have introduced an absolutely new concept in the Biodegradable Disposable Crockery for the first time in India. It has embarked in manufacturing disposable crockery by biodegradable corn starch, which apart from being eco-friendly, also redefines the way of partake food.

Credit Risks:

Competition in the industry :
The business segment in which the company operates are characterized by a high level of fragmentation with a large number of unorganized players operating in the segment. This in turn is owing to low entry barriers on account of limited capital and technology requirement and also low differentiation in the end product. With such a scenario, the industry remains highly competitive as well leading to intense pricing pressures for the player resulting in low profitability.
Fluctuations in raw material prices :
The operations of the company are raw material intensive in nature. The prices of the key raw material viz. Polystyrene is fluctuating in nature and also dependent on crude oil prices which are highly volatile. Also, WIPL passes on the major variations in the prices to its customers. The margins are also vulnerable to changes in product mix of orders executed.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has considered the standalone financials of the company. 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 ability of the company to improve its financial profile and maintaining adequate liquidity will remain the key rating sensitivities.

Positive: Rating may be upgraded in case of substantial improvement in revenues and profit of the company, or on account of any other favourable factor.

Negative: Rating may be downgraded in case there is deterioration in financial profile of the company including the liquidity of the company or on account of any unforeseen unfavourable events.

LIQUIDITY INDICATORS - Adequate

The company had cash and cash equivalents balance of Rs.0.09crs as on 31.03.2021. The company had outstanding long term borrowings of Rs.1.53crs in FY21(A) which includes term loans from Canara Bank. There are no unsecured borrowings of the company as on date. Cash Flow Statement for FY21(A) was not available. Average utilization of ODBD limit is around 10% for the last six months i.e., from April 2021 to Oct 2021. Current ratio stood at 1.98x as on 31.03.2021. Conversion cycle of 39 days is reported in FY21(A). The company had ISCR and DSCR of 22.51x and 08.20x in FY21(A).

Any Group Concerns

There are no group companies as all the companies have been amalgamated under one roof M/s Windsor Industries Pvt Ltd.

ABOUT THE ENTITY

CEO Mr. Parvinder Singh Sahni established the parent company Windsor Packaging Pvt Ltd in 1989 and other group companies were added and became operational as per need like Windsor Polymers Pvt Ltd, Windsor Packaging (Baroda) Pvt Ltd. later on amalgamated under one umbrella M/s Windsor Industries Pvt Ltd. M/s Windsor Industries Pvt Ltd is a private limited company incorporated under the provision of the Companies Act,1956. The company was initially formed as Windsor Polypacks Pvt Ltd on 05.July.2005 and later on changed its name to Windsor Industries Pvt Ltd. on 19.Dec.2013. Company has 2 factory works units located at Industrial Focal Point, Kurali, Punjab and Village & Post of Thana, Baddi, Solan, Himachal Pradesh. Mr. Parvinder Singh Sahni and Mrs. Rimpinder Kaur Sahni are the directors in the company having more than 40 years of experience. he company is primarily engaged in manufacturing of Foam Disposable Products, EPS Packagings, BOPP Tapes & Biodegradable Corn Starch. It is the pioneer of EPS (Expanded Polystyrene) thermocol processing in Northern India. Manufacturing of thermocol disposable cups and plates was a logical diversification having manufacturing synergy with the present operations and selling products through North India as well. The purpose of setting up a state of art, fully automatic plant was to serve valued customers in neighbouring states. Company is also enjoying the benefits initiated by State Government like "Excise exemption and Sales Tax". Addition to the manufacturing activities stated above,company is engaged in the services which includes In house packaging designing and Fabrication of fully Automatic high production Aluminium Moulds for Shape Moulding with Captive Tool Room. Company is certified by ISO 9001:2015, ISO 14001:2004, The Environmental Management System and OHSAS 18001, The Occupational Health and Safety Management System Certifications, who are manufacturing all above items under one umbrella. The company was setting up a new installation regarding Biodegradable products which was in work in progress got completed this year which is assumed to increase the production capacity in the coming months. Company have introduced an absolutely new concept in the Biodegradable Disposable Crockery for the first time in India. It has embarked in manufacturing disposable crockery by biodegradable corn starch, which apart from being eco-friendly, also redefines the way of partake food. The company do not rated by any other CRA from 2020.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 20-21 (Audited)	FY 19-20 (Audited)
Operating Revenue	Rs.Crs.	106.78	118.42
EBITDA	Rs.Crs.	7.64	9.25
PAT	Rs.Crs.	3.35	4.54
Tangible Net Worth	Rs.Crs.	37.88	34.54
Total Debt/Tangible Net Worth	Times	0.08	0.18
Current Ratio	Times	1.98	2.21

KEY COVENANTS OF THE FACILITY RATED

Nil

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

CARE BB+(Stable)/A4 under “Issuer Not Cooperating” dated 17 May 2021.

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	10.64	BWR BBB+/Stable (Reaffirmation)	24Sep2020	BWR BBB+Stable (Assignment)	NA	NA	NA	NA
Grand Total		10.64	(Rupees Ten Crores and Sixty Four lakhs Only)

COMPLEXITY LEVELS OF THE INSTRUMENTS - Simple

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
Akash Chaubey Ratings Analyst akash.c@brickworkratings.com	V.K.Kukreja Associate Director - Ratings Board : +91 11 2341 2232 kukreja.vk@brickworkratings.com
1-860-425-2742 \| media@brickworkratings.com

Windsor Industries 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	Canara Bank	Term Loan - Out-standing	0.74	_	0.74
2	Canara Bank	OCC/ODBD/WCDL/Bills - Sanctioned	9.90	_	9.90
Total			10.64	0.00	10.64
TOTAL (Rupees Ten Crores and Sixty Four lakhs Only)

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