Brickwork Ratings downgrades the ratings for the Bank Loan Facilities of Rs. 56.79 Crs. of Hassan Road Const. Comp. Pvt Ltd
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (30 Sep 2021) |
Present | ||
Fund Based | 27.69 | 26.79 | Long Term |
BWR B-/Stable
Downgrade/ISSUER NOT COOPERATING* |
BWR D
Downgrade |
Non Fund Based | 29.88 | 30.00 | Short Term |
BWR A4
Downgrade/ISSUER NOT COOPERATING* |
BWR D
Downgrade |
Grand Total | 57.57 | 56.79 | (Rupees Fifty Six Crores and Seventy Nine lakhs Only) |
Brickwork ratings has downgraded the Long Term and short term ratings of Hassan Road Const. Comp. Pvt Ltd to BWR D. The rating downgrade reflects the delays in debt servicing in GECL Loan in the last six months. The lender has also confirmed that there are instances of delay in servicing of debt of GECL loan.
KEY RATING DRIVERSANALYTICAL APPROACH - Standalone
For arriving at its ratings, BWR has applied its rating methodology as debited in the Rating Criteria detailed below ( hyperlinks provided at the end of this rationale).
RATING SENSITIVITIES
Positive : Timely debt servicing for three consecutive months will be a positive rating sensitivity.
LIQUIDITY INDICATORS - Poor
Company has Cash Credit facility of Rs. 23.10 Crs and its average utilization of the fund-based limits ranges from 102.16% over the 9 months ended Mar 23, 2022 of the disbursed limit. Company has cash accruals( profit after tax plus depreciation) of Rs 2.42 Cr in FY21 declined from Rs. 2.50 Crs in FY20 against the CPLTD of around Rs. 1.44 Crs paid in FY 22. Company has cash generated from operating activities has improved to Rs. 10.03 Crs in FY21.The company has free cash and cash equivalents of Rs. 14.61 Crs which are free from all charges to be utilized in case of any liquidity crunches as on Dec 31, 2021. There is a delay in servicing of installment of GECL Loan
ABOUT THE ENTITYHassan Road construction company private Limited (HRCCP) was set up in 1996 by promoter Haji Ghulam Hassan Mir . HRCCPL executes civil contracts of Infrastructural, Industrial and institutional building projects and road construction . The company is Govt. Contractor at Srinagar (Jammu and Kashmir )
KEY FINANCIAL INDICATORS (Standalone)Key Parameters | Units |
FY 20-21 (Audited) |
FY 19-20 (Audited) |
---|---|---|---|
Operating Revenue | Rs.Crs. | 30.81 | 20.31 |
EBITDA | Rs.Crs. | 2.38 | 1.94 |
PAT | Rs.Crs. | 1.57 | 1.54 |
Tangible Net Worth | Rs.Crs. | 31.83 | 30.26 |
Total Debt/Tangible Net Worth | Times | 0.89 | 0.66 |
Current Ratio | Times | 1.51 | 1.37 |
Facilities | Current Rating (2022) | 2021 | 2020 | 2019 | |||||
---|---|---|---|---|---|---|---|---|---|
Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
Fund Based | LT | 26.79 |
BWR D
(Downgrade) |
30Sep2021 |
BWR B-Stable
(Downgrade/ISSUER NOT COOPERATING*) |
30Sep2020 |
BWR BStable
(Downgrade/ISSUER NOT COOPERATING*) |
19Sep2019 |
BWR BBStable
(Reaffirmation/ISSUER NOT COOPERATING*) |
Non Fund Based | ST | 30.00 |
BWR D
(Downgrade) |
30Sep2021 |
BWR A4
(Downgrade/ISSUER NOT COOPERATING*) |
30Sep2020 |
BWR A4
(Downgrade/ISSUER NOT COOPERATING*) |
19Sep2019 |
BWR A4+
(Reaffirmation/ISSUER NOT COOPERATING*) |
Grand Total | 56.79 | (Rupees Fifty Six Crores and Seventy Nine 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 CriteriaAnalytical Contacts | |
---|---|
Neha Wahi Ratings Analyst Board : +91 11 2341 2232 nehawahi@brickworkratings.com |
Tanu Sharma Director - Ratings tanusharma@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 | Jammu and Kashmir Bank | Term LoanSanctioned | _ | _ | 0.00 | |
2 | Jammu and Kashmir Bank | Bank GuaranteeSanctioned | _ | 30.00 | 30.00 | |
3 | Jammu and Kashmir Bank | OverdraftSanctioned | 23.10 | _ | 23.10 | |
4 | Jammu and Kashmir Bank | GECLSanctioned | 3.69 | _ | 3.69 | |
Total | 26.79 | 30.00 | 56.79 | |||
TOTAL (Rupees Fifty Six Crores and Seventy Nine lakhs Only) |
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About Brickwork RatingsBrickwork 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.
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