Atharva Stone Resources LLP

Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs.5.00 Crs. of Atharva Stone Resources LLP

Particulars

Facilities**	Amount(Rs.Crs)	Tenure	Rating*
Fund Based	5.00	Long Term	BWR B (Pronounced as BWR Single B ) (Outlook: Stable)
Total	5.00	(Rupees Five Crores Only)

*Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank facilities are provided in Annexure-I RATING ACTION / OUTLOOK : Stable

BWR believes the Atharva Stone Resources LLP 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 profit show sustained improvement. The rating outlook may be revisd to 'Negative' if the revenues go down and profit margins show lower than expected figures

KEY RATING DRIVERS

BWR has essentially relied upon the audited financial statements of Atharva Stone Resources LLP of FY18 and provisional and projected financial statements of FY19 and FY20, publicly available information and information/clarifications provided by the entity’s management. The rating draws strength from the vast business experience of the partners established track of operations and above-average financial risk profile. However, the rating is constrained by the scale of operations, constitution of the firm and high competition from other established players in the market.

Going forward, the ability of the entity to achieve projected revenue & profitability margins and manage liquidity would be key rating sensitivities

Strengths

• Management ExperienceThe managing partner of the firm Mr. BRS Kumar is having business experience of 20 years.
• Customer BaseThe firm majorly exports its goods outside India to various customers based in Canada, China, and Hong Kong and thus has a diversified customer base.

Weakness

• Company’s ExistenceThe company has pursued its business for only couple of years.
• NetworthThe partner's capital infusion in the firm is very low and as a result, the company has a high gearing ratio.
• Foreign exchange transactionsThe firm's sales comprise a major part of exports done outside the country. Hence the firm is exposed to foreign exchange risks.

ANALYTICAL APPROACH AND APPLICABLE RATING CRITERIA

For ariving at its ratings, BWR has applied its rating methodology as detailed in the Rating Criteria detailed below (hyperlinks provided at the end of this rationale).

LIQUIDITY POSITION

Liquidity: Stressed

The firm is having a liquidity position with a current ratio of  0.98 times in FY 2018 which needs improvement

PROFILE

Atharva Stone Resources LLP was formed as a limited liability partnership on 04.07.2017 having Mr. BRS Kumar, Mrs. Nalina Veeranna and Mr. Basavaraj Rudranna as partners. The firm has registered office in Bangalore and is engaged in trading of raw granite stones, marbles, and other blue metals.

KEY FINANCIAL INDICATORS

Key Parameters	Units	FY 17-18	FY 16-17
Operating Revenue	Rs.Crs	0.60	0.00
EBITDA	Rs.Crs	-0.10	0.00
PAT	Rs.Crs	-0.18	0.00
Tangible Net Worth	In Crs	-0.08	0.00
Total Debt/Tangible Net Worth	Times	-54.21	0.00
Current Ratio	Times	0.98	0.00

RATING HISTORY (INCLUDING WITHDRAWAL AND SUSPENSION)

S.No	Current Rating (2019)				Rating History
	Facilities	Tenure	Amount (Rs.Crs)	Rating	2018	2017	2016
1	Fund Based	Long Term	5.00	BWR B (Pronounced as BWR Single B ) (Outlook: Stable)	NA	NA	NA
Total			05.00	(Rupees Five Crores Only)

COMPLEXITY LEVELS OF THE INSTRUMENTS

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 :

• General Criteria
• Approach to Financial Ratios

For More Information Contact:

Analytical Contacts	Investor Contacts
Pardasani Umangkumar umang.p@brickworkratings.com	Liena Thakur Assistant Vice President - Corporate Communications M : +91 84339 94686 liena.t@brickworkratings.com
Nagaraj KS Associate Director-Ratings nagaraj.ks@brickworkratings.com
1-860-425-2742

SL.No.	Name of the Bank	Long Term(Rs.Crs)		Short Term(Rs.Crs)	Total(Rs.Crs)
		CC	TL
1	Canara bank	5	0	0	5
	TOTAL (Rupees Five Crores Only)	5	0	0	5