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    Pankaj Jewellers BankLoan - 18.35Cr Rationale 20jul2017

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    Techno Gamerz And Entertainer
    The document provides a rating rationale for Pankaj Jewellers. It assigns ratings of BWR B+ for term loans and proposed cash credit, and BWR A4 for proposed bank guarantees. The ratings are constrained by factors such as highly competitive business, low profit margins, and working capital intensive operations.

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    Pankaj Jewellers BankLoan - 18.35Cr Rationale 20jul2017

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    Techno Gamerz And Entertainer
    6 views3 pages
    The document provides a rating rationale for Pankaj Jewellers. It assigns ratings of BWR B+ for term loans and proposed cash credit, and BWR A4 for proposed bank guarantees. The ratings are constrained by factors such as highly competitive business, low profit margins, and working capital intensive operations.

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    Pankaj-Jewellers-BankLoan_18.35Cr-Rationale-20Jul2017

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    The document provides a rating rationale for Pankaj Jewellers. It assigns ratings of BWR B+ for term loans and proposed cash credit, and BWR A4 for proposed bank guarantees. The ratings are constrained by factors such as highly competitive business, low profit margins, and working capital intensive operations.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    6 views3 pages

    Pankaj Jewellers BankLoan - 18.35Cr Rationale 20jul2017

    Uploaded by

    Techno Gamerz And Entertainer
    The document provides a rating rationale for Pankaj Jewellers. It assigns ratings of BWR B+ for term loans and proposed cash credit, and BWR A4 for proposed bank guarantees. The ratings are constrained by factors such as highly competitive business, low profit margins, and working capital intensive operations.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 3

    Rating Rationale

    Pankaj Jewellers

    20th July 2017

    Brickwork Ratings assigns ratings for the Bank Loan Facilities of Rs.18.35 Crs. of Pankaj
    Jewellers.

    Particulars

    Amount
    Facility Rated Tenure Rating *
    (Rs. Crs)
    Fund Based BWR B+
    Term Loan 3.35 Long Term (Pronounced as BWR Single B Plus)
    Proposed C.C 5.00 Outlook: (Stable)
    BWR A4
    Short Term
    Proposed BG 10.00 (Pronounced as BWR A Four)

    Total Rs. 18.35 Crores (Rupees Eighteen Crores Thirty Five Lakhs Only.)
    * Please refer to BWR website www.brickworkratings.com/ for definition of the ratings

    Rationale/Description of Key Rating Drivers/Rating sensitivities:

    BWR has relied upon the audited financials up to FY 16 and provisional for FY 17 &
    Projection of FY 18, publicly available information and information provided by the
    management.

    The rating assigned to the bank facilities of Pankaj Jewellers positively factors extensive
    industry experience of promoters in Gold Jewelry business, good track record of operation. The
    ratings, however; continue to remain constrained due to highly competitive and fragmented
    business, moderate scale of operation as compare to other players in the market, low net profit
    margins, low tangible net worth working capital intensive nature of operations and susceptibility
    of raw material price fluctuation and limitation of proprietorship concern in terms of
    management and financial decisions.
    Going forward, the ability of the Company to scale up its revenues, improve the profitability
    margins, strengthen the capital structure and efficiently manage its working capital would be
    key rating sensitivities.

    1 20th July 2017


    Rating Outlook: Stable
    BWR believes the Pankaj Jewellers 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 revenues and profit show sustained
    improvement. The rating outlook may be revised to 'Negative' if the revenues go down and profit
    margins show lower than expected figures.

    About the Company


    Pankaj Jewellers formed in 1998 & engaged in business of manufacturing and sale of
    various types of Antique and traditional Jewelry items i.e. Antique Kolkata Make gold
    jeweler, Kundan and Mina Jewellery. It is managed by its Promoter Mr. Pankaj Mehra. The firm
    is located at New Delhi.

    Company Financial Performance


    Company generated total operating income of ₹ 28.03 Crs. In FY16 as compared to ₹ 25.23 Crs.
    in FY 15. Profit after tax of company stood at ₹ 0.23 Crs. in FY16 against ₹ 0.21 Crs. in FY15.
    As per Provisional Financial of FY 17 the firm has achieved total operating income of ₹ 47.50
    Crs and PAT of 0.64 Crs.

    Rating History for the last three years: (including withdrawn/suspended ratings)

    Sl.
    Instrument/Facility Current Rating (Year 2017) Rating History
    No.
    Type Amount
    (Long Rating 2016 2015 2014
    Term/Short (Rs Crs)
    Term)
    1 Term Loan Long Term 3.35 BWR B+ N.A N.A N.A

    2 Proposed C.C Long Term 5.00 BWR B+ N.A N.A N.A

    3 Proposed BG Short Term 10.00 BWR A4 N.A N.A N.A

    Status of non-cooperation with previous CRA (if applicable): N.A

    Any other information: N.A

    2 20th July 2017


    Hyperlink/Reference to Applicable Criteria

     General Criteria
     Short Term Debt
     Approach to Financial Ratios
     Manufacturing Companies

    For any other criteria obtain hyperlinks from website

    Analytical Contacts Media


    R.K Sharma [email protected]
    General Manager - Ratings
    Relationship Contact
    [email protected] [email protected]
    Phone: 1-860-425-2742

    For print and digital media


    The Rating Rationale is sent to you for the sole purpose of dissemination through your print, digital or electronic media. While it
    may be used by you acknowledging credit to BWR, please do not change the wordings in the rationale to avoid conveying a
    meaning different from what was intended by BWR. BWR alone has the sole right of sharing (both direct and indirect) its
    rationales for consideration or otherwise through any print or electronic or digital media.

    Note on complexity levels of the rated instrument:


    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 [email protected].

    About Brickwork Ratings


    Brickwork Ratings (BWR), a SEBI registered Credit Rating Agency, has also been accredited by RBI and
    empaneled by NSIC, offers Bank Loan, NCD, Commercial Paper, MSME ratings and grading services.
    NABARD has empaneled Brickwork for MFI and NGO grading. BWR is accredited by IREDA & the
    Ministry of New and Renewable Energy (MNRE), Government of India. Brickwork Ratings has Canara
    Bank, a Nationalized Bank, as its promoter and strategic partner.
    BWR has its corporate office in Bengaluru and a country-wide presence with its offices in Ahmedabad,
    Chandigarh, Chennai, Guwahati, Hyderabad, Kolkata, Mumbai and New Delhi along with representatives
    in 150+ locations. BWR has rated debt instruments/bonds/bank loans, securitized paper of over ₹
    9,30,000 Cr. In addition, BWR has rated about 5000 MSMEs. Also, Fixed Deposits and Commercial
    Papers etc. worth over ₹19,700 Cr have been rated. Brickwork has a major presence in rating of nearly
    100 cities.

    DISCLAIMER
    Brickwork Ratings (BWR) has assigned the rating based on the information obtained from the issuer and other reliable sources,
    which are deemed to be accurate. BWR has taken considerable steps to avoid any data distortion; however, it does not examine the
    precision or completeness of the information obtained. And hence, the information in this report is presented “as is” without any
    express or implied warranty of any kind. BWR does not make any representation in respect to the truth or accuracy of any such
    information. The rating assigned by BWR should be treated as an opinion rather than a recommendation to buy, sell or hold the
    rated instrument and BWR shall not be liable for any losses incurred by users from any use of this report or its contents. BWR has
    the right to change, suspend or withdraw the ratings at any time for any reasons.

    3 20th July 2017

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