Original T emplate123

Rating Update
June 06, 2024 | Mumbai

Panchwati Promoters Private Limited

Update as on June 06, 2024

This update is provided in continuation of the rating rational below.

The key rating sensitivity factors for the rating include:

Upward factors

• Early completion of projects and higher customer advances result in substantial cash flow from
operations.
• Sustenance of cash DSCR at more than 1.5 times leading to moderate liquidity

Downward factors

• low cash flow from operations (because of subdued response to, or delay in completion of,
projects) weakens financial risk profile, particularly liquidity.
• Decline in cash DSCR to below 1.2 times

CRISIL Ratings has a policy of keeping its accepted ratings under constant and ongoing monitoring and
review. Accordingly, CRISIL Ratings seeks regular updates from companies on the business and financial
performance. CRISIL Ratings is, however, awaiting adequate information from Panchwati Promoters
Private Limited (PPPL) which will enable us to carry out the rating review. CRISIL Ratings will continue
provide updates on relevant developments from time to time on this credit.

CRISIL Ratings also identifies information availability risk as a key credit factor in the rating assessment
as outlined in its criteria ‘Information Availability Risk in Credit Ratings’.

About the Company

Incorporated in 1989, PPPL is engaged in residential real estate development in Jharkhand.

The company is jointly managed by Mr. Gobind Ram Sarawgi, Mr. Alok Kumar Sarawgi and Mr. Ravi
Kumar Sarawgi.

Please note: This advisory should not be construed as a rating reaffirmation.

Note for Media:
This rating rationale is transmitted to you for the sole purpose of dissemination through your newspaper/magazine/agency. The rating
rationale may be used by you in full or in part without changing the meaning or context thereof but with due credit to CRISIL Ratings.
However, CRISIL Ratings alone has the sole right of distribution (whether directly or indirectly) of its rationales for consideration or
otherwise through any media including websites and portals.

About CRISIL Ratings Limited (A subsidiary of CRISIL Limited, an S&P Global Company)

CRISIL Ratings pioneered the concept of credit rating in India in 1987. With a tradition of independence, analytical
rigour and innovation, we set the standards in the credit rating business. We rate the entire range of debt
instruments, such as bank loans, certificates of deposit, commercial paper, non-convertible/convertible/partially
convertible bonds and debentures, perpetual bonds, bank hybrid capital instruments, asset-backed and mortgage-
backed securities, partial guarantees and other structured debt instruments. We have rated over 33,000 large and
mid-scale corporates and financial institutions. We have also instituted several innovations in India in the rating
business, including ratings for municipal bonds, partially guaranteed instruments and infrastructure investment
trusts (InvITs).

CRISIL Ratings Limited ('CRISIL Ratings') is a wholly-owned subsidiary of CRISIL Limited ('CRISIL'). CRISIL
Ratings Limited is registered in India as a credit rating agency with the Securities and Exchange Board of India
("SEBI").

For more information, visit www.crisilratings.com

About CRISIL Limited

CRISIL is a leading, agile and innovative global analytics company driven by its mission of making markets
function better.

It is India’s foremost provider of ratings, data, research, analytics and solutions with a strong track record of
growth, culture of innovation, and global footprint.

It has delivered independent opinions, actionable insights, and efficient solutions to over 100,000 customers
through businesses that operate from India, the US, the UK, Argentina, Poland, China, Hong Kong and Singapore.

It is majority owned by S&P Global Inc, a leading provider of transparent and independent ratings, benchmarks,
analytics and data to the capital and commodity markets worldwide.

For more information, visit www.crisil.com

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please visit www.crisil.com.

Please note: This advisory should not be construed as a rating reaffirmation.

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This disclaimer is part of and applies to each credit rating report and/or credit rating rationale ('report') that is
provided by CRISIL Ratings Limited ('CRISIL Ratings'). To avoid doubt, the term 'report' includes the information,
ratings and other content forming part of the report. The report is intended for the jurisdiction of India only.
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details about ratings by CRISIL Ratings are available here: www.crisilratings.com.

CRISIL Ratings and its affiliates do not act as a fiduciary. While CRISIL Ratings has obtained information from
sources it believes to be reliable, CRISIL Ratings does not perform an audit and undertakes no duty of due
diligence or independent verification of any information it receives and/or relies on in its reports. CRISIL Ratings
has established policies and procedures to maintain the confidentiality of certain non-public information
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businesses/ratings/regulatory-disclosures/highlighted-policies.html.

Please note: This advisory should not be construed as a rating reaffirmation.

Rating criteria by CRISIL Ratings are generally available without charge to the public on the CRISIL Ratings public
website, www.crisilratings.com. For latest rating information on any instrument of any company rated by CRISIL
Ratings, you may contact the CRISIL Ratings desk at [email protected], or at (0091) 1800 267 1301.

This report should not be reproduced or redistributed to any other person or in any form without prior written
consent from CRISIL Ratings.

All rights reserved @ CRISIL Ratings Limited. CRISIL Ratings is a wholly owned subsidiary of CRISIL Limited.

CRISIL Ratings uses the prefix 'PP-MLD' for the ratings of principal-protected market-linked debentures (PPMLD)
with effect from November 1, 2011, to comply with the SEBI circular, "Guidelines for Issue and Listing of Structured
Products/Market Linked Debentures". The revision in rating symbols for PPMLDs should not be construed as a
change in the rating of the subject instrument. For details on CRISIL Ratings' use of 'PP-MLD' please refer to the
notes to Rating scale for Debt Instruments and Structured Finance Instruments at the following
link: https://www.crisil.com/en/home/our-businesses/ratings/credit-ratings-scale.html

Please note: This advisory should not be construed as a rating reaffirmation.

 Rating Rationale
May 29, 2023 | Mumbai

Panchwati Promoters Private Limited

'CRISIL BB/Stable' assigned to Bank Debt

Rating Action
Total Bank Loan Facilities Rated Rs.20 Crore
Long Term Rating CRISIL BB/Stable (Assigned)
Note: None of the Directors on CRISIL Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any
ratings. The Board of Directors also does not discuss any ratings at its meetings.
1 crore = 10 million
Refer to Annexure for Details of Instruments & Bank Facilities

Detailed Rationale
CRISIL Rating has assigned its ‘CRISIL BB/Stable’ rating TO the long-term bank facilities of Panchwati Promoters Private
Limited (PPPL).

The rating reflects the extensive experience of the promoters in the real estate industry and the advanced stage of ongoing
projects. These strengths are partially offset by exposure to risks associated with ongoing projects and exposure to
cyclicality inherent in the Indian real estate industry.
Key Rating Drivers & Detailed Description
Strengths:
Extensive industry experience of the promoters: The promoters’ experience of over three decades in the industry has
helped the company to establish itself in the real estate market of Jharkhand. Further, the promoters have had a successful
project implementation track record.

Advance stage of projects: The company is constructing two residential complexes in Ranchi, out of which both are
around 50% complete as on date. Company has healthy track record of completed projects in the past and the established
market presence in and around Ranchi region is expected to support business risk profile.

Weaknesses:
Exposure to risks associated with ongoing projects: The projects are in the construction phase and modest booking
receipts ]has been received leading to moderate customer advances. Thus, operating performance will remain susceptible
to timely completion of the projects and flow of customer advances.

Exposure to cyclicality inherent in the Indian real estate industry: The real estate sector in India is cyclical and affected
by volatile prices, opaque transactions, and a highly fragmented market structure. Hence, the business risk profile will
remain susceptible to risks arising from any industry slowdown
Liquidity: Adequate
PPPL has adequate liquidity for funding the construction of its ongoing projects through a mix of customer advances,
unsecured loans and bank loan. The customer advances for its ongoing project has been moderate. Although, the cash
flows from the project is expected to remain sufficient to meet the term debt obligations, however any unforeseen delay in
project construction might result in cost overrun, thereby affecting repayments of term debt. Further any delay in receipt of
advances from customers is also expected to impact the company's liquidity in a significant way. The ongoing projects with
a cash DSCR of around 1.6 times is expected to provide additional cushion to liquidity.
Outlook: Stable
CRISIL Ratings believes PPPL will continue to benefit over the medium term from its promoter's extensive industry
experience.
Rating Sensitivity Factors
 Upward factors
Early completion of projects and higher customer advances result in substantial cash flow from operations.
Sustenance of cash DSCR at more than 1.5 times leading to moderate liquidity

Downward factors
low cash flow from operations (because of subdued response to, or delay in completion of, projects) weakens financial
risk profile, particularly liquidity.
Decline in cash DSCR to below 1.2 times
About the Company
Incorporated in 1989, PPPL is engaged in residential real estate development in Jharkhand.

The company is jointly managed by Mr. Gobind Ram Sarawgi, Mr. Alok Kumar Sarawgi and Mr. Ravi Kumar Sarawgi.
Key Financial Indicators
As on/for the period ended March 31 Unit 2022 2021
Operating income Rs crore 17.36 17.88
Reported profit after tax Rs crore 0.78 0.76
PAT margins % 4.5 4.2
Adjusted Debt/Adjusted Networth Times 0.58 0.65
Interest coverage Times 1.7 1.6
Any other information: Not applicable

Note on complexity levels of the rated instrument:

CRISIL Ratings` complexity levels are assigned to various types of financial instruments and are included (where
applicable) in the 'Annexure - Details of Instrument' in this Rating Rationale.

CRISIL Ratings will disclose complexity level for all securities - including those that are yet to be placed - based on
available information. The complexity level for instruments may be updated, where required, in the rating rationale
published subsequent to the issuance of the instrument when details on such features are available.

For more details on the CRISIL Ratings` complexity levels please visit www.crisilratings.com. Users may also call the
Customer Service Helpdesk with queries on specific instruments.

Annexure - Details of Instrument(s)

Issue
Name of Date of Coupon Maturity Complexity Rating Assigned
ISIN Size
Instrument Allotment Rate (%) Date Level with Outlook
(Rs.Cr)
Proposed Long Term
NA NA NA NA 0.2 NA CRISIL BB/Stable
Bank Loan Facility
NA Term Loan NA NA Mar-2029 19.8 NA CRISIL BB/Stable
Annexure - Rating History for last 3 Years
Start of
Current 2023 (History) 2022 2021 2020
2020
Outstanding
Instrument Type Rating Date Rating Date Rating Date Rating Date Rating Rating
Amount
Fund Based LT 20.0 CRISIL -- -- -- -- --
Facilities BB/Stable
All amounts are in Rs.Cr.

Annexure - Details of Bank Lenders & Facilities

Facility Amount (Rs.Crore) Name of Lender Rating
Proposed Long Term Bank
0.2 Not Applicable CRISIL BB/Stable
Loan Facility
Term Loan 19.8 Union Bank of India CRISIL BB/Stable

This Annexure has been updated on 29-May-2023 in line with the lender-wise facility details as on 29-May-2023 received from the rated entity.

Criteria Details
Links to related criteria
CRISILs Bank Loan Ratings
The Rating Process
CRISILs Approach to Financial Ratios

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Note for Media:
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used by you in full or in part without changing the meaning or context thereof but with due credit to CRISIL Ratings. However, CRISIL Ratings alone has
the sole right of distribution (whether directly or indirectly) of its rationales for consideration or otherwise through any media including websites and portals.

About CRISIL Ratings Limited (A subsidiary of CRISIL Limited, an S&P Global Company)

CRISIL Ratings pioneered the concept of credit rating in India in 1987. With a tradition of independence, analytical rigour and
innovation, we set the standards in the credit rating business. We rate the entire range of debt instruments, such as bank loans,
certificates of deposit, commercial paper, non-convertible/convertible/partially convertible bonds and debentures, perpetual
bonds, bank hybrid capital instruments, asset-backed and mortgage-backed securities, partial guarantees and other structured
debt instruments. We have rated over 33,000 large and mid-scale corporates and financial institutions. We have also instituted
several innovations in India in the rating business, including ratings for municipal bonds, partially guaranteed instruments and
infrastructure investment trusts (InvITs).

CRISIL Ratings Limited ('CRISIL Ratings') is a wholly-owned subsidiary of CRISIL Limited ('CRISIL'). CRISIL Ratings Limited is
registered in India as a credit rating agency with the Securities and Exchange Board of India ("SEBI").

For more information, visit www.crisilratings.com

About CRISIL Limited

CRISIL is a leading, agile and innovative global analytics company driven by its mission of making markets function better.

It is India’s foremost provider of ratings, data, research, analytics and solutions with a strong track record of growth, culture of
innovation, and global footprint.

It has delivered independent opinions, actionable insights, and efficient solutions to over 100,000 customers through businesses
that operate from India, the US, the UK, Argentina, Poland, China, Hong Kong and Singapore.

It is majority owned by S&P Global Inc, a leading provider of transparent and independent ratings, benchmarks, analytics and
data to the capital and commodity markets worldwide.

For more information, visit www.crisil.com

Connect with us: TWITTER | LINKEDIN | YOUTUBE | FACEBOOK

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This disclaimer is part of and applies to each credit ra ng report and/or credit ra ng ra onale ('report') that is provided by
CRISIL Ra ngs Limited ('CRISIL Ra ngs'). To avoid doubt, the term 'report' includes the informa on, ra ngs and other content
forming part of the report. The report is intended for the jurisdic on of India only. This report does not cons tute an offer of
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and experience of the user, its management, employees, advisors and/or clients when making investment or other business
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h ps://www.crisil.com/en/home/our-businesses/ra ngs/regulatory-disclosures/highlighted-policies.html.

Ra ng criteria by CRISIL Ra ngs are generally available without charge to the public on the CRISIL Ra ngs public website,
www.crisilra ngs.com. For latest ra ng informa on on any instrument of any company rated by CRISIL Ra ngs, you may
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This report should not be reproduced or redistributed to any other person or in any form without prior wri en consent from
CRISIL Ra ngs.

All rights reserved @ CRISIL Ra ngs Limited. CRISIL Ra ngs is a wholly owned subsidiary of CRISIL Limited.

CRISIL Ratings uses the prefix 'PP-MLD' for the ratings of principal-protected market-linked debentures (PPMLD) with effect
from November 1, 2011, to comply with the SEBI circular, "Guidelines for Issue and Listing of Structured Products/Market Linked
Debentures". The revision in rating symbols for PPMLDs should not be construed as a change in the rating of the subject
instrument. For details on CRISIL Ratings' use of 'PP-MLD' please refer to the notes to Rating scale for Debt Instruments and
Structured Finance Instruments at the following link: h ps://www.crisil.com/en/home/our-businesses/ra ngs/credit-ra ngs-scale.html