Andromeda Packaging Pvt. Ltd.

Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs.18.37 Crs. of Andromeda Packaging Pvt. Ltd.

Particulars

Facility**	Amount (Rs.Crs)	Tenure	Rating*
Fund Based
Cash Credit - Sanctioned Term Loan - Sanctioned Term Loan - Sanctioned Term Loan - Sanctioned	08.12 02.75 04.50 03.00	Long Term	BWR BB - (Stable)
Sub Total	18.37
Grand Total	18.37	(Rupees Eighteen Crores and Thirty Seven 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

BWR believes that Andromeda Packaging 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 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

Credit Strengths:

• Locational Advantage :

  The company/Firm is located in Bangalore cluster and thus has a competitive advantage in terms of skilled labor, logistics, production knowledge and vendors making the company more efficient and cost effective.

• Company’s Existence :

  The company is in existence for 25 years and has seen complete business cycles.

• Liquidity Position :

  The FY 19 current ratio of 1.24 indicates adequate liquidity position.

• Networth :

  Net worth of the company is increasing Y-O-Y due to retention of profits.

• Debt Protection Metrics :

  DSCR and ISCR of the company stand at 1.22 and 1.28 respectively in FY indicating company’s adequacy to meet its debt obligations.

Credit Risks:

• Competition in the Industry :

  Entry barriers in the industry are low on account of limited capital and technology requirement and also low differentiation in the end product leading to intense competition and limiting the pricing power resulting in low profitability.

• Revenue from Operations :

  The company`s revenue from operations has grown marginally by 3.28 % in the FY 19.

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).

PROFILE

M/s. Andromeda Packaging Private Limited was incorporated in 1995 as a private limited company, with its registered office in Bangalore, Karnataka. The company's main line of business is manufacturing corrugated boxes used for packaging.

KEY FINANCIAL INDICATORS

Key Parameters	Units	FY 18-19 (Audited)	FY 17-18 (Audited)
Operating Revenue	Rs.Crs.	35.28	34.16
EBITDA	Rs.Crs.	1.28	1.05
PAT	Rs.Crs.	0.29	0.24
Tangible Net Worth	Rs.Crs.	6.23	2.85
Total Debt/Tangible Net Worth	Times	2.63	3.69
Current Ratio	Times	1.24	1.41

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	Cash Credit - Sanctioned Term Loan - Sanctioned Term Loan - Sanctioned Term Loan - Sanctioned	Long Term	8.12 2.75 4.50 3.00	BWR BB- (Stable)	NA	NA	NA
Total			18.37	(Rupees Eighteen Crores and Thirty Seven 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
Anisha Reddy Ratings Analyst B : +91 80 4040 9940 Ext : 339 anisha.r@brickworkratings.com	Liena Thakur Assistant Vice President - Corporate Communications M : +91 84339 94686 liena.t@brickworkratings.com
K Nagaraj Associate Director - Ratings B : +91 80 4040 9940 nagaraj.ks@brickworkratings.com
1-860-425-2742

SL.No.	Type Of Facilities	Long Term(Rs.Crs.)	Short Term(Rs.Crs.)	Total(Rs.Crs.)
1	Cash Credit - Sanctioned	8.12	_	8.12
2	Term Loan - Sanctioned	2.75	_	2.75
3	Term Loan - Sanctioned	4.50	_	4.50
4	Term Loan - Sanctioned	3.00	_	3.00
Total				18.37
TOTAL (Rupees Eighteen Crores and Thirty Seven lakhs Only)