RATING RATIONALE
29Nov2022

Ghodawat Enterprises Private Limited

Brickwork Ratings downgrades the ratings for the Bank Loan Facilities of Rs.82.30 Crs. of Ghodawat Enterprises Private Limited based on the best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(31 Aug 2021)
Present
Fund Based 82.30 82.30 Long Term BWR BBB- /Stable
Reaffirmation
BWR BB+ /Stable
ISSUER NOT COOPERATING* /Downgrade
Grand Total 82.30 82.30 (Rupees Eighty Two Crores and Thirty lakhs Only)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure
*Issuer did not cooperate; based on best available information.


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

The rating of the company was due in August 2022. Even after several follow-ups, the company has failed to provide the necessary information required for surveillance. In the absence of adequate information from the company, BWR is unable to assess its performance and ability to service its debt and maintain a valid rating. However, BWR notes that the company has shared monthly NDS (No default statement), and audited financials up to FY22. The company’s performance has improved in terms of the improved scale of operation, improved profitability, comfortable debt service coverage, and gearing ratios.

Due to a delay in the requisite information, BWR has reviewed the rating based on the best available information and downgraded the long-term rating to BWR BB+ (Stable) and simultaneously migrated to the ISSUER NOT CO-OPERATING* category based on the best available information as the company has not submitted the minimum required information for ascertaining the financial risk profile of the company.

*Issuer did not cooperate; based on best available information.

LIMITATIONS OF THE RATING

Information availability risk is a key factor in the assessment of credit risk as generally, noncooperation by the rated entities to provide the required information for a review of the assigned rating may also be accompanied by financial stress. Users of the credit ratings should therefore take into account the possible deterioration in the credit quality of the rated entity arising from its non-transparency and withholding of information required for a review of the rating

ABOUT THE ENTITY

Ghodawat Enterprises Private Limited ("GEPL" or "The Company") is engaged in the business of leasing out helicopters, and aviation services and producing clean energy through the wind. Mr.Shrenik Ghodawat, son of Mr. Sanjay Ghodawat, is the Managing Director of the company. Mr. Sanjay Ghodawat holds 98% share of the company while the remaining 2% is held by his wife Mrs. Neeta Ghodawat. The company has two windmill plants located in Satara, Maharashtra of 850 KW each (1.7 MW) with a power purchase agreement of thirteen years with MSEDCL started in March 2012. Current tariff rate of Rs. 5.67/unit. The company currently owns Two helicopters and is registered under the Non-Scheduled Operator with the Civil Aviation of India. It operates helicopter charter services in tie-up with third-party service providers. The services include VIP Charter, Corporate Charter, Flower Dropping, and Sightseeing. The company has five Aircraft which are operational between cities such as Bangalore, Gulbarga, Hubli, Tirupati, Belgaum, Indore, Kishangarh, Ahmedabad, Mumbai, and Hindon. The aviation operations of the company are under the brand name “Star Air”. (Information as available with BWR).

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 21-22
(Audited)
FY 20-21
(Audited)
Operating Revenue Rs.Crs. 177.76 93.98
EBITDA Rs.Crs. 28.70 13.67
PAT Rs.Crs. -5.91 -12.47
Tangible Net Worth Rs.Crs. 224.65 230.65
Total Debt/TNW Times 0.37 0.37
Current Ratio Times 5.95 6.57
NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

ICRA has suspended [ICRA]B+ rating assigned to the Rs. 36.70 crore, bank facilities of Ghodawat Enterprises Private Limited in June 2015. The suspension follows ICRA’s inability to carry out a rating surveillance due to non cooperation from the company.

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2022) 2022 (History) 2021 2020 2019
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating Date Rating
Fund Based LT 82.30
BWR BB/Stable
(ISSUER NOT COOPERATING* /Downgrade)
NA
NA
31Aug2021
BWR BBB- Stable
(Reaffirmation)
02Jun2020
BWR BBB-Stable
(Reaffirmed)
03Jun2019
BWR BBB-Stable
(Assigned)
Non Fund Based ST 0.00
NA
NA
NA
NA
NA
02Jun2020
BWR A3
(Assigned)
NA
NA
Grand Total 82.30 (Rupees Eighty Two Crores and Thirty lakhs Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - Simple

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
Analytical Contacts

Gaurav Agnihotri

Senior Rating Analyst gaurav.a@brickworkratings.com

Chintan Dilip Lakhani

Director- Ratings chintan.l@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Ghodawat Enterprises Private Limited
ANNEXURE-I
Details of Bank Facilities rated by BWR
SL.No. Name of the Bank/Lender Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 Bank of Baroda Term LoanSanctioned 42.64 _ 42.64
2 Bank of Baroda Cash CreditSanctioned 9.00 _ 9.00
3 Bank of Baroda Emergency Credit Line Guarantee Scheme (ECLGS)Sanctioned 3.98 _ 3.98
4 Union Bank of India GECLSanctioned 4.40 _ 4.40
5 Union Bank of India Covid -19 Emergency Line CreditSanctioned 1.80 _ 1.80
6 Union Bank of India Term LoanSanctioned 20.48 _ 20.48
Total 82.30 0.00 82.30
TOTAL (Rupees Eighty Two Crores and Thirty lakhs Only)
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About Brickwork Ratings

Brickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. BWR has rated over 12,000 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partner. BWR has its corporate office in Bengaluru and a country-wide presence with its offices in Ahmedabad, Chandigarh, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi along with representatives in 150+ locations.

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