Sourabh Kumar Roy

Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs.14.09 Crs. of Sourabh Kumar Roy

Particulars

Facility**	Amount (Rs.Crs)	Tenure	Rating*
Fund Based
Term Loan - Out-standing Cash Credit - Sanctioned Term Loan - Proposed Cash Credit - Proposed	02.84 05.00 01.25 01.00	Long Term	BWR BB - (Stable)
Sub Total	10.09
Non-Fund Based
Bank Guarantee - Sanctioned Bank Guarantee - Proposed	02.00 02.00	Short Term	BWR A4
Sub Total	04.00
Grand Total	14.09	(Rupees Fourteen Crores and Nine lakhs 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

Brickwork Ratings has assigned the long term ratings of BWR BB- with Stable outlook and short term ratings of BWR A4 for bank loan facilities of Sourabh Kumar Roy. The rating derives strength from long standing experience of the partners, favourable debt protection metrices and improved order book position of the firm. However the ratings are constrained by intense competition in the industry, constitution of the entity, moderate scale of operations and tender based nature of business.

The Rating has been assigned a Stable outlook as the business risk profile of the firm is stable and the growth in the business and profitability is expected to be maintained in the medium term. 

KEY RATING DRIVERS

Credit Strengths:

• Experience of Partners :

  The partners of the firm have a long standing experience in this line of business.

• Favourable Ratios :

  ISCR & DSCR of the firm are favourable and stood at 3.54 & 2.65 times respectively. Total gearing of the firm is also good and stood at 0.95 in FY19.

• Order Book Position :

  The firm has an order book position of Rs. 57.40 crs out of which firm has expected to realize more than Rs. 45.00 crs in FY19-20.

Credit Risks:

• Competition in Industry: :

  The industry is fragmented and the firm faces stiff competition from organised and unorganised players in the industry.

• Constitution :

  The firm is exposed to inherent risk of fluctuation in capital due to withdrawal of capital by partners. Further withdrawal of capital by the partners for any personal contingency would adversely affect the capital structure of the firm.

• Moderate Scale of Operations :

  The scale of operations of the firm remains moderate at Rs.36.88 crs in FY19.

ANALYTICAL APPROACH AND APPLICABLE RATING CRITERIA

For arriving 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).

RATING SENSITIVITIES

Going forward the ability of the firm to further improve its scale of operations, to successfully secure more tenders and the ability of the firm to execute its orders on time will be the key rating sensitivities.

Positive: Ratings may be upgraded in case of substantial improvements in revenues from current level and increase in profit margins along with increase in its net worth position and order book position of the firm.

Negative: Ratings may be downgraded in case of substantial deterioration in the financial position of the firm or delay in execution of its orders and in case of any delay in payment of its debt obligations.

LIQUIDITY POSITION

ADEQUATE

The liquidity position of the firm remains adequate with current ratio of the firm standing at 1.51 times in FY19.  Net cash accruals of the firm stood at Rs. 2.69 crores in FY19. Average utilization of the limits remained around 90%.
 

PROFILE

Sourabh Kumar Roy is a West Bengal based partnership firm established in 2007.The firm was promoted by Mr. Sourabh Kumar & Mrs. Sangita Roy and is engaged in the construction of roads and bridges in southern districts of West Bengal. The firm undertakes tender based contract from the Public Works Department (PWD) of West Bengal government where it is registered as a 1st class civil contractor.

KEY FINANCIAL INDICATORS

Key Parameters	Units	FY 18-19 (Audited)	FY 17-18 (Audited)
Operating Revenue	Rs.Crs.	36.88	41.49
EBITDA	Rs.Crs.	3.59	2.94
PAT	Rs.Crs.	2.02	1.70
Tangible Net Worth	Rs.Crs.	8.86	8.62
Total Debt/Tangible Net Worth	Times	0.95	0.89
Current Ratio	Times	1.51	1.20

RATING HISTORY (INCLUDING WITHDRAWAL AND SUSPENSION)

S.No	Current Rating (2019)				Rating History
	Facilities	Tenure	Amount (Rs.Crs)	Rating	2018	2017	2016
Fund Based
1	Term Loan - Out-standing Cash Credit - Sanctioned Term Loan - Proposed Cash Credit - Proposed	Long Term	2.84 5.00 1.25 1.00	BWR BB- (Stable)	NA	NA	NA
Non-Fund Based
2	Bank Guarantee - Sanctioned Bank Guarantee - Proposed	Short Term	2.00 2.00	BWR A4	NA	NA	NA
Total			14.09	(Rupees Fourteen Crores and Nine lakhs 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.

For More Information Contact:

Analytical Contacts	Investor Contacts
Mayank Sethi Ratings Analyst D : +91 74790 04036 B : +91 80 4040 9940 mayank.s@brickworkratings.com	Liena Thakur Assistant Vice President - Corporate Communications M : +91 84339 94686 liena.t@brickworkratings.com
K.Venkateswara Raju Associate Director - SME & Vendor Gradings B : +91 80 4040 9940 kvraju@brickworkratings.com
1-860-425-2742

SL.No.	Type Of Facilities	Long Term(Rs.Crs.)	Short Term(Rs.Crs.)	Total(Rs.Crs.)
1	Bank Guarantee - Sanctioned	_	2.00	2.00
2	Bank Guarantee - Proposed	_	2.00	2.00
3	Term Loan - Out-standing	2.84	_	2.84
4	Cash Credit - Sanctioned	5.00	_	5.00
5	Term Loan - Proposed	1.25	_	1.25
6	Cash Credit - Proposed	1.00	_	1.00
Total				14.09
TOTAL (Rupees Fourteen Crores and Nine lakhs Only)