RATING RATIONALE
04Jul2022

Saurabh International

Brickwork Ratings reaffirms the long term and short term ratings for the Bank Loan Facilities of Rs. 29.64 Crs. of Saurabh International

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(15 Apr 2021)
Present
Fund Based 6.37 5.64 Long Term BWR BB-/Stable
Reaffirmation
BWR BB - /Stable
Reaffirmation
Non Fund Based 21.00 24.00 Short Term BWR A4
Reaffirmation
BWR A4
Reaffirmation
(0.00) (24.00)
(0.00) (2.00)
Grand Total 27.37 29.64 (Rupees Twenty Nine Crores and Sixty Four 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


RATING ACTION / OUTLOOK

BWR had undertaken the Bank Loan Rating of Saurabh International  for a loan facilities of Rs. 29.64 Cr. and has Reaffirms the long term and short term rating as BWR BB-(stable)/ A4 covering Fund based and non fund based limits. The reaffirmation of the ratings reflects the slight improvement in operating margin , Net margin , ISCR and DSCR. The ‘Stable’ outlook indicates a likelihood of rating change over the medium term. The company continues to derive comfort from the extensive experience of more than two decades of the promoters in the industry.  The rating is, however, reaffirmed by the Liquidity position , Debt protection metrics and improvement in Financial parameters.

KEY RATING DRIVERS

Credit Strengths:


Credit Risks:

ANALYTICAL APPROACH - Standalone

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 maintain its business and financial risk profile would be the key sensitivities over the short to medium term.

Positive : The rating may be upgraded if the firm demonstrates the significant improvement in the top-line and the bottom line and also Improvement in TNW & TOL/ TNW.

Negative : The rating may be downgraded if there is further dip in revenues. Deterioration in current liquidity profile and capital structure will be a credit negative.

LIQUIDITY INDICATORS - Adequate

ABOUT THE ENTITY

Saurabh International was set up as proprietorship concern. It was reconstituted as Partnership firm wef April 2008. The firm has been the leading importer of Malaysian Hardwood, New Zealand Pine, Russian Pinewood and South African Teak since 1986. It imports directly to its saw mill located  in Varsamedi Anjar , Kutch (Gujarat). It supplies high quality cut as per order from customers. Firm’s products find its application in packaging and for shuttering purpose by construction companies. It supplies majorly to customers based in Gujarat, Maharashtra, Bihar and Delhi etc. The firm specializes in varied sizes and specifications of wood and processes the same as per customer's requirements.   

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 21-22
(Provisional)
FY 20-21
(Audited)
Operating Revenue Rs.Crs. 57.30 46.87
EBITDA Rs.Crs. 2.55 2.41
PAT Rs.Crs. 0.65 0.55
Tangible Net Worth Rs.Crs. 6.14 7.35
Total Debt/TNW Times 1.22 1.13
Current Ratio Times 1.33 1.30
KEY COVENANTS OF THE FACILITY RATED

NA


NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

NA

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 5.64
BWR BB-/Stable
(Reaffirmation)
NA
NA
15Apr2021
BWR BB-Stable
(Reaffirmation)
19Feb2020
BWR BB-Stable
(Reaffirmation)
31Jan2019
BWR BB-Stable
(Upgrade)
Non Fund Based ST 24.00
BWR A4
(Reaffirmation)
NA
NA
15Apr2021
BWR A4
(Reaffirmation)
19Feb2020
BWR A4
(Reaffirmation)
31Jan2019
BWR A4
(Reaffirmation)
NFB SubLimit ST (24.00)
BWR A4
(Reaffirmation)
NA
NA
NA
NA
NA
NA
NA
NA
(2.00)
BWR A4
(Reaffirmation)
NA
NA
NA
NA
NA
NA
NA
NA
Grand Total 29.64 (Rupees Twenty Nine Crores and Sixty Four lakhs Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - Medium

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

Yogesh Jangra

Ratings Analyst yogesh.j@brickworkratings.com

Hari Kishan Yadav

Associate Director - Ratings hari.ky@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Saurabh International
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 Union Bank of India Term LoanOut-standing _ _ 0.00
2 Union Bank of India Cash CreditSanctioned 5.00 _ 5.00
3 Union Bank of India Letter of CreditProposed _ 24.00 24.00
Sub-Limit (Buyers Credit) Proposed (24.00)
Sub-Limit (Inland LC) Proposed (2.00)
4 Union Bank of India GECLSanctioned 0.64 _ 0.64
Total 5.64 24.00 29.64
TOTAL (Rupees Twenty Nine Crores and Sixty Four 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 11,541 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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