RATING RATIONALE

30Mar2026

P. Siva Prasad

Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 42.61 Crs. of P. Siva Prasad

Particulars

Facilities**	Amount (Rs.Crs.)		Tenure	Rating#
Facilities**	Previous	Present	Tenure	Previous (07 Feb 2025)	Present
Fund Based	10.78	10.44	Long Term	BWR BB /Stable removal from ISSUER NOT COOPERATING* category/Upgraded	BWR BB /Stable Reaffirmation
Non Fund Based	32.00	32.17	Short Term	BWR A4 removal from ISSUER NOT COOPERATING* category/Reaffirmed	BWR A4 Reaffirmation
Grand Total	42.78	42.61	(Rupees Forty Two Crores and Sixty One 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

Brickwork Ratings has reaffirmed the long-term rating at BWR BB/Stable and reaffirmed the short-term rating at BWR A4 for the bank loan facilities of Rs. 42.61 Cr of P. Siva Prasad firm.

The Rating has factored in the proprietor's vast experience in catering services and long-term contracts with Indian Railways and established kitchen centres all over India. However, the rating is constrained by the Constitution Risk of proprietorship firm, and Regulatory Compliance Risk regarding the IRCTC contract. Going forward, the ability of the company to improve its financial profile and maintain adequate liquidity will remain the key rating sensitivities.

The rating outlook has been assigned as "Stable" as BWR believes that P. Siva Prasad's firm business risk profile will be maintained over the medium term. The 'Stable' outlook indicates a low likelihood of rating change over the medium term, The rating outlook may be revised to 'Positive' in case the revenue and profitability margins show sustained improvement. The rating outlook may be revised to 'Negative' if the financial risk profile goes down.

KEY RATING DRIVERS

Credit Strengths:

Management experience :
The firm benefits from the extensive experience of its proprietor, Mr. P. Siva Prasad, who has around 24 years of experience in the catering services industry. His long-standing industry presence provides strong operational knowledge and an understanding of customer requirements.
Advantage of IRCTC Contract :
The firm derives strong business stability from its long-term contract with IRCTC for providing catering services in railways. As per the revised terms and conditions, the contract is valid from 2024 to 2030 and covers catering services for approximately 126 trains.

This long-term agreement with a reputed government entity ensures steady revenue visibility over the medium term and reduces demand uncertainty. The sizeable coverage of trains further supports the scale of operations and business continuity. The association with IRCTC also enhances the firm’s credibility and provides stability to cash flows, thereby strengthening its overall credit profile.

Credit Risks:

Constitution Risk :
Since the entity operates as a proprietorship firm, the capital base is directly linked to the proprietor’s personal financial decisions. Any withdrawal of capital by the proprietor to meet personal contingencies would reduce the firm’s net worth, as there is no distinction between ownership and management in such a structure. A reduction in capital would weaken the firm’s capital structure, leading to higher leverage levels and increased dependence on external borrowings to support operations. This may also impact liquidity, debt servicing ability, and the firm’s overall financial stability. Therefore, substantial withdrawals could adversely affect the financial risk profile and long-term sustainability of the business.
Regulatory compliance risk :
This industry is subject to strict regulations under the IRCTC and Food and Drug Administration (FDA) to ensure food safety and product quality. Failure to comply with these regulations can have significant consequences including fines, sanctions or legal actions which may risk the Firm’s reputation and financial stability.

ANALYTICAL APPROACH - Standalone

BWR has taken a standalone approach for the bank loan rating review of the company. BWR has applied its rating methodology as detailed in the rating criteria.

RATING SENSITIVITIES

Going forward, the ability of the company to improve its financial profile and maintain adequate liquidity will remain the key rating sensitivities.

Positive:

Improvement in operating income by 20% and a 20% increase in net profit margin
Strengthening of debt protection metrics, with ISCR improving above 1.00x and DSCR improving above 1.00x.

Negative:

Decline in operating revenue by 10% or more, and net profit margin falling below current levels.
Deterioration in liquidity and coverage indicators, with the current ratio falling below 1.00x, and DSCR declining below the current level.

LIQUIDITY INDICATORS - Stretched

The firm liquidity is stretched with tightly matched accruals to repayment obligations, with highly utilized bank limits and modest cash reserves.

ABOUT THE ENTITY

Macro Economic Indicator	Sector	Industry	Basic Industry
Consumer Discretionary	Consumer Services	Leisure Services	Restaurants

P. Siva Prasad Firm was established as a proprietorship firm in 2002. The proprietor (Mr. P. Siva Prasad) has 25 years of experience in Catering Services, and he is involved in the day-to-day operations of the firm. The firm’s office is located in Secunderabad, Telangana. The firm is involved in providing catering services to Indian Railways. The firm is offering catering services to almost 126 trains all over India, and the period of contract between the firm and IRCTC is 7 years from 2024.

ESG Profile

The company maintains an adequate ESG profile aligned with services-sector standards, demonstrating a balanced commitment to sustainability, social responsibility, and transparent governance.

Environmental: Operations focus on resource efficiency, specifically through energy optimization, carbon footprint reduction, and structured management of paper and electronic waste. Water conservation and treatment measures are in place, with a strong track record of regulatory compliance and zero (or minimal) environmental penalties.

Social: The company prioritizes a people-centric culture through fair compensation, comprehensive benefits, and a focus on employee well-being. It maintains high standards for workplace safety, actively promotes gender diversity, and invests in long-term capability development through structured training and career progression.

Governance: The framework is built on board independence and robust stakeholder grievance mechanisms. Ethical integrity is enforced through a formal Code of Conduct and anti-corruption policies. A significant emphasis is placed on data security and cybersecurity, utilizing rigorous internal controls to ensure business continuity and protect client trust.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 22 - 23 (Audited - Annual)	FY 23 - 24 (Audited - Annual)	FY 24 - 25 (Audited - Annual)
Operating Revenue	Rs.Crs.	42.07	66.11	40.59
EBITDA	Rs.Crs.	-0.79	-1.02	-0.40
PAT	Rs.Crs.	0.56	0.75	0.49
Tangible Net Worth	Rs.Crs.	10.75	11.48	12.14
Total Debt / Tangible Net Worth	Times	0.84	0.81	0.34
Current Ratio	Times	1.42	1.49	1.09

KEY COVENANTS OF THE FACILITY RATED

The terms of sanction of the rated facilities include standard covenants normally stipulated for such facilities.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

ANY OTHER INFORMATION

Nil

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)

Facilities	Current Rating (2026)			2025		2024		2023
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	10.44	BWR BB/Stable (Reaffirmation)	07Feb2025	BWR BB Stable (removal from ISSUER NOT COOPERATING* category/Upgraded)	10Jun2024	BWR C- (Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)	08Jun2023	BWR C- (Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
Non Fund Based	ST	32.17	BWR A4 (Reaffirmation)	07Feb2025	BWR A4 (removal from ISSUER NOT COOPERATING* category/Reaffirmed)	10Jun2024	BWR A4 (Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)	08Jun2023	BWR A4 (Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
Grand Total		42.61	(Rupees Forty Two Crores and Sixty One lakhs Only)

Hyperlink/Reference to applicable Criteria

Analytical Contacts
Krishnappa Murugesh Ratings Analyst krishnappa.m@brickworkratings.com	Sabitha M Nayak Associate Director-Ratings sabitha.nayak@brickworkratings.com
1-860-425-2742 \| media@brickworkratings.com	Customer Support \| CustSupport@brickwrokratings.com

P. Siva Prasad

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.)	Complexity of the Instrument
1	Canara Bank	Term Loan - Out-standing	0.44	_	0.44	Simple##
2	Canara Bank	Term Loan - Proposed	2.00	_	2.00	Simple##
3	Canara Bank	Cash Credit - Proposed	5.00	_	5.00	Simple##
4	Canara Bank	Bank Guarantee - Sanctioned	_	30.17	30.17	Simple##
5	Canara Bank	Bank Guarantee - Proposed	_	2.00	2.00	Simple##
6	Canara Bank	OCC/ODBD - Sanctioned	3.00	_	3.00	Simple##
Total			10.44	32.17	42.61
TOTAL (Rupees Forty Two Crores and Sixty One 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.

ANNEXURE-II

INSTRUMENT DETAILS

Instrument	Issue Date	Amount (Rs.Crs)	Coupon Rate (%)	Maturity Date	ISIN Particulars	Complexity of the Instrument
Nil	Nil	Nil	Nil	Nil	Nil	Nil

ANNEXURE-III

List of entities consolidated

Name of Entity	% Ownership	Extent of consolidation	Rationale for consolidation
Nil	Nil	Nil	Nil

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