RATING RATIONALE
30May2022

Rama Enterprises (A Unit of Param Shakti Dhatu Udyog Pvt. Ltd.)

Brickwork Ratings reaffirm the ratings for the Bank Loan Facilities of Rs. 23.80 Crs. of Rama Enterprises (A Unit of Param Shakti Dhatu Udyog Pvt. Ltd.)

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(27 Apr 2021)
Present
Fund Based 18.80 23.80 Long Term BWR BB/Stable
Reaffirmation
BWR BB /Stable
Reaffirmation
(16.00) (16.00)
Grand Total 18.80 23.80 (Rupees Twenty Three Crores and Eighty 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 at “BWR BB” with “Stable” outlook for the bank loan facilities of Rama Enterprise (A Unit of Param Shakti Udyog Pvt. Ltd.).

The rating was draws strength from Experienced Directors and long operational track record and Moderate Financial Profile. However, the rating is constrained on account of High Competition and Trading nature of business and thin margins.

The rating outlook has been assigned as "Stable" as BWR believes that Biogenetic Drug 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:


Credit Risks:

RATING SENSITIVITIES

Going forward, the ability of the firm to improve its financial profile and maintaining adequate liquidity will remain the key rating sensitivities.

Positive: The rating may be upgraded if the company inter alia, is able to improve its topline and generate profits, or on account of any other favourable factor.

Negative: The rating may be downgraded if inter alia, there is any deterioration in financial risk profile, fails to maintain adequate liquidity or on account of any unforeseen unfavourable events.

LIQUIDITY INDICATORS - Adequate

Cash and cash equivalent in FY21(A) is Rs.0.12crs. Long term borrowings of Rs.4.94crs in FY21(A) includes GECL of Rs.4.00crs and WCDL (Under Covid Scheme) of Rs.0.44crs and unsecured loans from directors of Rs.0.44crs in FY21(A) for indefinite period. The entity has not submitted the cash flow statement. There is around 93.22% utilisation of OD limit for the last six months i.e. from October 2021 to March 2022 from Canara Bank and around 71.57% utilisation of CC limit for the last six months i.e. from October 2021 to March 2022 from SBI. The current ratio of the company stood at 1.55x in FY21(A). ISCR and DSCR stood at 1.18x and 0.97x during FY21(A).

Group Concerns; if Any: Nil

ABOUT THE ENTITY

RAMA ENTERPRISES (A Unit of Param Shakti Dhatu Udyog Pvt. Ltd.) based in Faridabad, holds a moderate presence in the region, since 1982. ), the company has now entered in manufacturing arenas of Color Coated HI-RIB Profile Sheets, Polycarbonate roofing sheets, Fiber profile sheets. The company is also engaged in pre-engineering works, such as designing, fabrication and installation, all customized as per requirements. The company uses fully computerized and automatic machines and professionally experienced team. RAMA ENTERPRISES is a trade name of Param Shakti Dhatu Udyog Pvt. Ltd. 

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 20-21
(Audited)
FY 19-20
(Audited)
Operating Revenue Rs.Crs. 72.40 134.21
EBITDA Rs.Crs. 2.32 3.62
PAT Rs.Crs. 0.11 0.31
Tangible Net Worth Rs.Crs. 6.64 6.53
Total Debt/Tangible Net Worth Times 3.67 4.54
Current Ratio Times 1.55 1.27

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Nil

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating (2022) 2021 2020 2019
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 23.80
BWR BB/Stable
(Reaffirmation)
27Apr2021
BWR BBStable
(Reaffirmation)
22Jan2020
BWR BBStable
(Reaffirmation)
NA
NA
FB SubLimit LT (16.00)
BWR BB/Stable
(Reaffirmation)
27Apr2021
BWR BBStable
(Reaffirmation)
22Jan2020
BWR BBStable
(Reaffirmation)
NA
NA
Grand Total 23.80 (Rupees Twenty Three Crores and Eighty 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

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
Rama Enterprises (A Unit of Param Shakti Dhatu Udyog 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 OCC/ODBDSanctioned 18.80 _ 18.80
Sub-Limit (SL-ODBD) Sanctioned (16.00)
2 State Bank Of India (SBI) Cash CreditSanctioned 5.00 _ 5.00
Total 23.80 0.00 23.80
TOTAL (Rupees Twenty Three Crores and Eighty lakhs Only)
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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 11,541 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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