Brickwork Ratings assigns the ratings the long term ratings at BWR BB+ / Stable for the Bank Loan Facilities of Rs. 68.62 Crs and short term ratings at BWR A4 for the Bank Loan Facilities of Rs. 11.15 Crs. of Jaes Projects(I) Pvt. Ltd.
Particulars| Facilities** | Amount(Rs.Crs.) | Tenure | Rating# | |
|---|---|---|---|---|
| Fund Based | 68.62 | Long Term |
BWR BB +
/Stable Assignment |
|
| Non Fund Based | 11.15 | Short Term |
BWR A4
Assignment |
|
| Grand Total | 79.77 | (Rupees Seventy Nine Crores and Seventy Seven lakhs Only) | ||
Credit Strengths:
The director Mr. Jogendra Singh and Mr. Dharmendra Singh have an experience of more than a decade in logistic & transportation business. Mr. Jogendra Singh looks after sales and marketing of the company by exploiting his wide contacts and relations. His is well supported by Mr. Dharmendra Singh who has experience in similar line of business. They are already into similar line of business in the holding company and sister concern Jai Ambey Emergency Sevices and Jai Ambey Road lines respectively. Being seasoned in this business the management risk is minimal.
Jaes Projects (I) Pvt Ltd had participated in consortium with Samman Foundation in tender of National Health Mission , MP and was a successfull bidder.They have received work order till 2027 which will be extended for another 2 years . They are also in line for applying for more tenders .
The company’s TOI till Nov 2022 is Rs 148 crs , they have incorporated in December 2021 and operations have started in the month of April 2022 .The same is projected to improve to Rs 312.80 crs in FY23 and Rs 425.33 crs in FY24.As per the terms of the agreement rate of increment every year would be 8%..TNW in FY22 was Rs 11.12 crs and the same is projected to increase to Rs 27.36 cr. Besides TNW they have also introduced USL during current FY 2022-23 which will remain in the company.
The group companies are also engaged in similar lines of business giving the company an edge over the others in the matters of funding , logistics and expertise. They have — vehicles and more can be arranged from group companies as an when required. They own a fleet of 300 ambulances of their own and have the arrangements to rent it from their group companies which have a total of 2000 ambulances.
Jaes projects (I) Pvt Ltd business is prone to financial losses arising out of delay in project execution. In such tender executions there are penalties and charges for delay in services / execution.
Company related operations remain exposed to regulatory risks, which can lead to potential closure in case of violation of statutory norms. Company derives its major revenue from the State Government entities. This also leads to delay in bill / payments processing.
BWR has essentially relied upon the standalone audited financials of the company up to FY22 , projections up to FY23 & FY24, publicly available information and information/clarifications provided by the management.
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).
Upward:
Increase in the scale of operations coupled with improvement in the profit margins, capital structure, debt coverage indicators and liquidity position.
Downward:
Inability to achieve the envisaged improvement in the scale of operations in FY23 and FY24 coupled with deterioration in the capital structure and liquidity position due to any deterioration in the profitability position .
Cash and bank balances stood at Rs. 0.82 Crs as on 31 March 2022.Same is expected to be at 0.77 crs and 9.81 crs in FY23& FY24 respectively. Current ratio is at 21.74x in FY22 & is likely move to 1.23x and 1.51x in FY23 & FY24 as per the projections.DSCR is at moderate level in projected FY23 & 24 at 1.58x and 2.80x.Net Cash Accruals of Rs. 14.09 crs in FY23 will be sufficient to cover CPLTD of Rs. 10.95 Crs . Future Net Cash accruals for FY 23 , FY 24 are expected to meet the debt obligations for the corresponding years.Average Cash Credit utilization stood at 42.04% for last 7 months
Jaes Projects (i) Private Limited is a Private incorporated on 14 December 2021.JAES PROJECTS (I) PVT. LTD. (JPPL), SPV of Jai Ambey Emergency Services (I) Pvt. Ltd. (JAESPL) and Samman Foundation (SF).SF is a " not for profit" , registered under section 25 of the Indian company's Act 1956.Company is engaged in community service through grass root initiatives including extensive work in health , livelihood and community mobilization.
Presently, parent company of JPPL i.e. Jai Ambey Emergency Services (I) Pvt. Ltd. (JAESPL) is engaged in providing ambulance service and mobile medical unit (MMU) services to Government of Chhattisgarh. JAESPL is engaged in medical services since the last 5 years.
During 2019, JAESPL participated in e- Reverse auction bidding process of Chhattisgarh Government and declared as successful bidder (L-1) on 07.09.2019 for providing and looking after operation and management Presently, JAESPL is having and operating 332 ambulances and 30 MMU which is providing services to Chhattisgarh Government and other Govt. organizations.
Note -The unaudited key financials of FY22-23 are upto November 2022.
KEY FINANCIAL INDICATORS (Standalone)
| Key Parameters | Units |
FY 21-22 (Audited) |
FY 20-21 (Audited) |
FY 22-23 (Unaudited) |
|---|---|---|---|---|
| Operating Revenue | Rs.Crs. | Not Available | Not Available | 148.39 |
| EBITDA | Rs.Crs. | Not Available | Not Available | Not Available |
| PAT | Rs.Crs. | 0.02 | Not Available | Not Available |
| Tangible Net Worth | Rs.Crs. | 11.12 | Not Available | Not Available |
| Total Debt/TNW | Times | 4.30 | Not Available | Not Available |
| Current Ratio | Times | 21.74 | Not Available | Not Available |
| Facilities | Current Rating (2023) | 2022 | 2021 | 2020 | |||||
|---|---|---|---|---|---|---|---|---|---|
| Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
| Fund Based | LT | 68.62 |
BWR BB+/Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| Non Fund Based | ST | 11.15 |
BWR A4
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| Grand Total | 79.77 | (Rupees Seventy Nine Crores and Seventy Seven lakhs Only) | |||||||
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 | |
|---|---|
|
Enakshi Makhija Ratings Analyst enakshi.m@brickworkratings.com |
Sushil Kumar Chitkara Director - Ratings Board : +91 22 2831 1426, +91 22 2831 1439 sushilkumar.c@brickworkratings.com |
| 1-860-425-2742 | media@brickworkratings.com | |
| SL.No. | Name of the Bank/Lender | Type Of Facilities | Long Term(Rs.Crs.) | Short Term(Rs.Crs.) | Total(Rs.Crs.) | |
|---|---|---|---|---|---|---|
| 1 | Canara Bank | Cash CreditSanctioned | 23.00 | _ | 23.00 | |
| 2 | Canara Bank | Bank GuaranteeSanctioned | _ | 11.15 | 11.15 | |
| 3 | State Bank Of India (SBI) | Term LoanSanctioned | 45.62 | _ | 45.62 | |
| Total | 68.62 | 11.15 | 79.77 | |||
| TOTAL (Rupees Seventy Nine Crores and Seventy Seven lakhs Only) | ||||||
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