Anil Buildcon

Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs.35.00 Crs. of Anil Buildcon

Particulars

Facility**	Amount (Rs.Crs)	Tenure	Rating*
Fund Based
Cash Credit - Sanctioned	20.00	Long Term	BWR B (Stable)
Sub Total	20.00
Non-Fund Based
Bank Guarantee - Sanctioned	15.00	Short Term	BWR A4
Sub Total	15.00
Grand Total	35.00	(Rupees Thirty 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
Note: ** Sanction of FBWC Limit of Rs 20.00 Crores, and Bank Guarantee Limit of Rs 15.00 Crores, within overall ceiling limit of Rs 30.00 Crores. RATING ACTION / OUTLOOK : Stable

BWR assigns the rating of BWR B with 'Stable' outlook for the long term bank loan facilities and BWR A4 for the Short term bank loan Facilities of Anil Buildcon (The Firm). The ratings take into consideration the Extensive experience of the management. The ratings are however constrained by  Nascent Stage of Operations and Risk Inherent as a Partnership Constitution.

KEY RATING DRIVERS

Credit Strengths:

• Extensive Experience of Promoters in Trading Business :

  The Promoters of the Firm has Extensive Experience of 5 Years in the same line of business that helps them to maintain a better relationship with their customers and suppliers as well.

Credit Risks:

• Nascent Stage of Operations :

  The Firm has nascent stage of operations marked with revenues of Rs 7.29 Crores and Net Worth of Rs 3.32 Crores till December 19.

• Risk Inherent as a Partnership Constitution :

  There is a risk inherent as a partnership constitution as a withdrawal of capital by the partners for any personal contingency would adversely affect the capital structure of the firm.

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 Achieved their  Projected Revenues, along with Improvement in Gearing level by Improving their Net Worth would be key rating sensitives.

Positive: The ratings may be upgraded in the future if the Firm is able to significantly Improve their Net Worth, Revenues and Gearing level.

Negative: The ratings may be downgraded if  any further deterioration in the Financial Risk Profile will also be a key rating sensitive. 

LIQUIDITY POSITION

 STRETCHED

1. The Firm has no Associate Concerns or Subsidiary Concerns.

2. The company has cash & Bank balances  till December 19 is Rs 0.05 Crores.

3. The Company has average utilisation of 25% of their cash credit limit of Punjab National  Bank from last Four months.

4. The company has long term debt of Rs. 0.90 crs till December 19 which comprises of Grader Loan from HDFC Bank .

5. The company has Interest service coverage ratio of 5.72 times and Debt Service Coverage Ratio of 5.73 times till December 19.

6. The current ratio has been 1.51 times till December 19.

7. The company has conversion cycle of 511 days due to high days payables of 123 days and Days Inventory of 383 days till December 19.

PROFILE

Anil Buildcon was established on 13.06.2019 and started its operations in the month of October in 2019. The Firm is currently engaged in Trading of Material such as Cements Iron Rods,etc to Contractors who are constructing Railway Track Bed, In the Mean While Firm is also participating in tenders from Railways.The Firm is currently managed by Mr Anil Garg and Mr Navdeep Singla and the Company has its unit located at SCF-126, 2nd Floor, Rose Garden Complex, Goniana Road, Bathinda.

KEY FINANCIAL INDICATORS

Key Parameters	Units	FY 20-21	FY 19-20
Operating Revenue	Rs.Crs.	105.30	7.29
EBITDA	Rs.Crs.	6.70	0.33
PAT	Rs.Crs.	2.80	0.27
Tangible Net Worth	Rs.Crs.	9.95	3.32
Total Debt/Tangible Net Worth	Times	2.06	1.27
Current Ratio	Times	1.34	1.51

RATING HISTORY (INCLUDING WITHDRAWAL AND SUSPENSION)

S.No	Current Rating (2020)				Rating History
	Facilities	Tenure	Amount (Rs.Crs)	Rating	2019	2018	2017
Fund Based
1	Cash Credit - Sanctioned	Long Term	20.00	BWR B (Stable)	NA	NA	NA
Non-Fund Based
2	Bank Guarantee - Sanctioned	Short Term	15.00	BWR A4	NA	NA	NA
Total			35.00	(Rupees Thirty 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.

For More Information Contact:

Analytical Contacts	Investor Contacts
Aman Sharma Ratings Analyst B : +91 172 5032 295 / 6 aman.s@brickworkratings.com	Liena Thakur Assistant Vice President - Corporate Communications M : +91 84339 94686 liena.t@brickworkratings.com
V.K.Kukreja Associate Director - Ratings B : +91 11 2341 2232 kukreja.vk@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	20.00	_	20.00
2	Bank Guarantee - Sanctioned	_	15.00	15.00
Total				35.00
TOTAL (Rupees Thirty Five Crores Only)

Note: ** Sanction of FBWC Limit of Rs 20.00 Crores, and Bank Guarantee Limit of Rs 15.00 Crores, within overall ceiling limit of Rs 30.00 Crores.