Anand Big Mall

Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs.11.30 Crs. of Anand Big Mall

Particulars

Facility**	Amount (Rs.Crs)	Tenure	Rating*
Fund Based
Secured Overdraft against Hypothecation - Sanctioned Secured Overdraft against Hypothecation - Proposed	08.36 02.94	Long Term	BWR BB - (Stable)
Sub Total	11.30
Grand Total	11.30	(Rupees Eleven Crores and Thirty 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 has assigned a rating of BWR BB- to Anand Big Mall on account of the extensive experience of the partners, the locational advantage of the firm, reputed clientele, moderate projected debt protection metrics, timely servicing of interests. The ratings have also factored low level of owned funds, stretched gearing, below-average liquidity profile, susceptibility to vacancy risks.

The firm has been assigned a stable outlook on account of increase in the number of multiscreen theatres and the potential increase in demand for home and office decor items, resulting in an increase in the number of unorganised players in the organised market. BWR believes that Anand Big Mall business risk profile will be maintained over the medium term.

KEY RATING DRIVERS

Credit Strengths:

• Extensive Experience of the partners :

  Extensive experience of the partners. The partners have an experience of over three decades in the same industry.

• Locational advantage :

  Locational advantage with the mall being situated in the main area of Ratlam being the first of its kind and in close vicinity to D- Mart.

• Reputed Clientele :

  Leasing of the two Audi Multiplexes to M/s NY Cinemas LLP (Ajay Devgn Film Productions).

• Moderate projected debt protection metrics :

  Moderate projected debt protection metrics with the projected ISCR and DSCR standing at 2.79x and 2.53x respectively in FY20.

• Timely repayment of debt :

  Proposed cash accruals from lease rentals are adequate to cover the interest repayments over and above the PAT.

Credit Risks:

• Low Level Of Owned Funds :

  Low level of owned funds with the TNW standing at Rs 3.38 Cr in FY19 as compared to Rs Rs 1.22 Cr in FY18 on account of the infusion of share capital.

• Stretched gearing :

  The gearing is stretched with the total debt/ TNW and the TOL/ TNW standing at 2.56x and 2.77x respectively in FY19 as compared to 2.14x and 2.43x respectively in FY18.

• Below average liquidity profile :

  Below Average liquidity profile with the current ratio standing at 0.37x in FY19 as compared to 0.02x in FY18. Although the OD facility is rolling in nature and will have only interest repayments to be made, hence, the current ratio will show improvements in the near future.

• Constitution as a partnership firm :

  Limitations of the partnership firm with respect to the inherent risk of fluctuation of capital on account of the withdrawal of capital by the partners.

• Susceptibility to vacancy risks :

  Lease rentals are a part of revenue of Anand Big Mall and therefore exposure to vacancy risk persists.

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 firm’s ability to improve the scale of operations, improve and maintain profitability, the debt servicing capability & liquidity will be the key rating sensitivities.

Positive: The rating will be upgraded  if the company is able to achieve significant growth in revenue and profitability backed by a favourable industry scenario and optimum utilisation of capacities, and sustained improvement working capital management.

Negative: The rating may be downgraded if there is lower than expected revenues affecting the profitability margins, coverage ratios, liquidity and gearing ratios adversely.

LIQUIDITY POSITION

Liquidity Position: Average

The current ratio of the firm stands at 0.37x in FY19 which will improve in the near future. The cash and cash equivalents stand at Rs 2.60 Cr in FY19. The company has sufficient projected cash accruals from lease rentals and sales amounting to Rs 1.94 Cr in FY20 to service the interest payments on time.

PROFILE

Anand Big Mall is formed under the partnership of Suresh Kumar Mansukhani and Jagdish Kumar Mansukhani. The group is running two showrooms at present, first at 154/A New Road Ratlam (MP), and the second at 265 Ratlam Plaza new road. It is into the business of providing quality home appliances, interior products, electronic appliances, modular kitchen, and best quality furniture.

KEY FINANCIAL INDICATORS

Key Parameters	Units	FY 18-19 (Audited)	FY 17-18 (Audited)
Operating Revenue	Rs.Crs.	0.00	0.00
EBITDA	Rs.Crs.	0.00	0.00
PAT	Rs.Crs.	0.00	0.00
Tangible Net Worth	Rs.Crs.	3.38	1.22
Total Debt/Tangible Net Worth	Times	2.56	2.14
Current Ratio	Times	0.37	0.02

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	Secured Overdraft against Hypothecation - Sanctioned Secured Overdraft against Hypothecation - Proposed	Long Term	8.36 2.94	BWR BB- (Stable)	NA	NA	NA
Total			11.30	(Rupees Eleven Crores and Thirty 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.

Hyperlink/Reference to applicable Criteria :

• General Criteria
• Approach to Financial Ratios

For More Information Contact:

Analytical Contacts	Investor Contacts
Saloni R Singh Ratings Analyst D : +91 22 6745 6647 B : +91 22 2831 1426, +91 22 2831 1439 saloni.s@brickworkratings.com	Liena Thakur Assistant Vice President - Corporate Communications M : +91 84339 94686 liena.t@brickworkratings.com
Sushil Kumar Chitkara Associate Director - Ratings B : +91 22 2831 1426, +91 22 2831 1439 sushilkumar.c@brickworkratings.com
1-860-425-2742

SL.No.	Type Of Facilities	Long Term(Rs.Crs.)	Short Term(Rs.Crs.)	Total(Rs.Crs.)
1	Secured Overdraft against Hypothecation - Sanctioned	8.36	_	8.36
2	Secured Overdraft against Hypothecation - Proposed	2.94	_	2.94
Total				11.30
TOTAL (Rupees Eleven Crores and Thirty lakhs Only)