Rating Rationale

Sumeet Facilities Ltd.(Formerly Known as Sumeet Facilities Pvt. Ltd.)

23 Jan 2020

Brickwork Ratings withdraws/assign the ratings for the Bank Loan Facilities of ₹. 29.00
Crores of Sumeet Facilities Ltd.(Formerly Known as Sumeet Facilities Pvt. Ltd.).

Particulars

Facility Rated Amount (₹. Cr) Tenure Rating*

Fund Based (FB)

Cash Credit 11.80
Term Loan 1 2.30
BWR BB
Term Loan 2 1.85 Long Term
(Stable)
Term Loan 3 0.98
Proposed CC 4.00
Non Fund Based (NFB)
BG 7.20
Short Term BWR A4
Proposed BG 0.87

Total Limits 29.00 (INR Twenty Nine Crores Only)

New limits are taken from Federal Bank and Indian Bank.
*Please refer to BWR website ​www.brickworkratings.com/​ for definition of the ratings
Complete details of Bank facilities is provided in Annexure-I

Rating*
Amount
Facility Rated Tenure Previous Prev. to Previous
(₹. Cr) Present
(Aug, 2018) (Mar, 2015)
Fund Based (FB)
Rating Not
Cash Credit 8.00 Long Term BWR B- (Stable) Withdrawn
Reviewed
Non Fund Based (NFB)
Rating Not
BG 2.00 Short Term BWR A4 Withdrawn
Reviewed
Total Limits 10.00 (INR Ten Crores Only)

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Ratings: Assigned
The present limits of Rs.29.00 crs are taken from Federal Bank and Indian Bank for which rating assigned
as BWR BB (Stable)/ A4.
Ratings: Withdrawn
The previous limits of Rs.10.00 crs have been adjusted in full with Bank of Maharashtra. Hence ratings
have been withdrawn.

Rationale/Description of Key Rating Drivers/Rating sensitivities:

Brickwork has principally relied upon the audited financials upto FY19, projected financials upto FY21,
publicly available information and information/clarification provided by the company’s management. The
rating draws strength from the promoters experience, established relationships with customers and
suppliers, increased revenue and profit, moderate coverage indicator and gearing level. However, the
rating is constrained by weak liquidity position, exposure to risk of tender based business and intense
competition with a large number of players in the sector.
Going forward the ability of the company to improve its liquidity position and manage its working capital
efficiently would be the key rating sensitivities.

Description of Key Rating Drivers

Credit Strengths:
➢ Qualified and Experienced management in the same line of business.
➢ Diversified and reputed client base.
➢ Sales exhibit an increasing trend; from Rs.134.34 Crs in FY18 to Rs.170.19 Crs in FY19.
H1FY20- Rs.136.57 cr.
➢ Moderate Debt Protection Metrics of ISCR at 1.62 times and DSCR at 1.42 times respectively
and gearing level at 0.71 times.
➢ Moderate profit margins, OPT at 6.50% and NPM at 3.47% respectively.
➢ Expected increase in demand for the Facility management Industry.

Credit Risks:
➢ Intense competition with a large number of players in the sector.
➢ Weak liquidity ratio of 1.22 times.
➢ Exposure to risk of tender based business as the Company is engaged in Integrated Facility
Management Services which has the stipulated time frame for the work and post which it has to
find another tender.

Analytical Approach

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).

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Rating Outlook: ​Stable
BWR believes the ​Sumeet Facilities Ltd.(Formerly Known as Sumeet Facilities Pvt. Ltd.) ​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.

Liquidity Profile: ​Sumeet Facilities Ltd’s liquidity profile is driven by the current ratio of 1.22x in FY19.
Company’s cash and its equivalents are reported at Rs.9.92 cr in FY19. Company’s average bank facility
utilization stood at 90%.

About the Company

Sumeet Facilities Ltd an ISO 9001:2008 certified company was incorporated as a private limited company
in 1992 at Pune, Maharashtra. The company provided Integrated Facility Management Services like
Manpower and Mechanised Housekeeping, Gardening, Landscaping, Facade Cleaning, Solid Waste
Management, Pest Control, Fleet Management, Placement, White color staffing, I. R. Advisory. The
company is rendering services across Maharashtra, Gujarat and New Delhi. SEL is promoted by Pune
based Salunke family.

Company Financial Performance

During FY19, company has reported total operating income of Rs.170.19 crs with a net profit of Rs.5.90
crs against the revenue of Rs.134.34 Crs with a net profit of Rs.4.19 crs in FY18. Tangible net worth
stood at Rs.23.65 crs as on 31Mar2019.

Rating History for the last three years

Current Rating (2020) Rating History

Si No Facility Amount
Type Rating 2019 2018 2017
(₹ Crs)
Fund Based (FB)
BWR BB
1 Fund Based Long Term 20.93 Not Rated Not Rated Not Rated
(Stable)
Non Fund Based (NFB)
Non Fund
2 Short Term 8.07 BWR A4 Not Rated Not Rated Not Rated
Based
Total Limits 29.00 (INR Twenty Nine Crores Only)

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 Current Rating (2020) Rating History
Si No Facility Amount
Type Rating 2019 07.08.2018 31.03.2015
(₹ Crs)
Fund Based (FB)
Rating Rating Not BWR B-
1 Fund Based Long Term 8.00 Not Rated
Withdrawn Reviewed (Stable)
Non Fund Based (NFB)
Non Fund Short Rating Rating Not
2 2.00 Not Rated BWR A4
Based Term Withdrawn Reviewed
Total Limits 10.00 (INR Ten Crores Only)
Status of non-cooperation with previous CRA (if applicable)-Reason and comments
Any other information- NA

Key Financial Indicators

Key Parameters Units 2019 2018

Result Type Audited Audited

Total Operating Income ₹ Cr 170.19 134.34

EBITDA ₹ Cr 11.06 8.87

Profit After Tax ₹ Cr 5.90 4.19

Tangible Net worth ₹ Cr 23.65 17.76

Total Debt/Tangible Net worth Times 0.71 0.67

Current Ratio Times 1.22 1.15

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 Annexure-I
​ etails of Bank Facilities​
D ₹ Crores

Previous Limits Present

Name of the Bank Name of Facility Tenure
(Mar, 2015) Limits

Federal Bank Cash Credit Long Term 0.00 4.00

Indian Bank Cash Credit Long Term 0.00 7.80

Bank of Maharashtra Cash Credit Long Term 8.00 0.00

Federal Bank Term Loan 1 Long Term 0.00 2.30

Federal Bank Term Loan 2 Long Term 0.00 1.85

Federal Bank Term Loan 3 Long Term 0.00 0.98

Indian Bank BG Short Term 0.00 7.20

Bank of Maharashtra BG Short Term 2.00 0.00

Hyperlink/Reference to applicable Criteria

● General Criteria

● Approach to Financial Ratios

● Infrastructure Sector

● Short Term Debt

For any other criteria obtain hyperlinks from website

5
 Analytical Contacts Investor Contacts

Sushil Kumar Chitkara

Associate Director - Ratings
B :+91 22 2831 1426, +91 22 2831 1439 Liena Thakur
sushilkumar.c@brickworkratings.com Assistant Vice President - Corporate
Communications
+91 84339 94686
Priyanka P Sontakke liena.t@brickworkratings.com
Ratings Analyst
D : +91 22 6745 6618
B :+91 22 2831 1426, +91 22 2831 1439
priyanka.s@brickworkratings.com
1-860-425-2742

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About Brickwork Ratings ​:Brickwork Ratings (BWR), a SEBI registered Credit Rating Agency,
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 leading public sector 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, Hyderabad, Kolkata, Mumbai and New Delhi along with representatives in 150+ locations.
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
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