Rating Rationale
Brickwork Ratings reaffirms ‘BWR BB+’ & ‘BWR A4’ for Bank Loan Facilities
aggregating ₹ 22.58 Cr enhanced from ₹ 14.19 Cr of Asian Galaxy Pvt Ltd, erstwhile
Asian Wires & Cables Industries.
Brickwork Ratings has reaffirmed following Ratings1for Bank Loan facilities of Asian Galaxy
Pvt Ltd.
Previous
Limits
(₹ Cr)
Current
Limit
(₹ Cr)
Proposed
Limit
(₹ Cr)
Cash Credit
10.00
10.00
-
SLC
0.50
1.50
-
Term Loan
1.44
1.08
-
BG
2.25
3.00
2.00
LC
-
Total
14.19
Facility
Tenure
Rating
Fund Based
Long
Term
Reaffirmed at
BWR BB+
(Pronounced BWR Double B Plus)
(Outlook Stable)
Non Fund Based
3.00
18.58
2.00
4.00
Short
Term
Reaffirmed at
BWR A4
(Pronounced BWR A Four)
Total
₹ 22.58
INR Twenty Two Crores and
Fifty Eight Lakhs Only
BWR has principally relied upon the audited financial results up to FY14 of Asian Galaxy Pvt
Ltd, publicly available information and information/clarification provided by the Company’s
management.
The rating continues to factor in, inter alia factors the significant experience of the partners in
the wire industry, enhanced revenues on a comparative basis, Long customer relationship and
better debt protection matrix.
However, the rating is constrained by medium scale of operations, low networth and declining
trend in operating and net margins, stretched liquidity.
Background:
Asian Wires & cables industry (AWCI) was a partnership firm started in the year 1996 and
majorly into job works. The firm started their manufacturing unit in 2008 and manufactures
low tension wires. Asian Wires & Cables Industries was recently reconstituted as Pvt Ltd
Company and name changed to Asian Galaxy Pvt Ltd in March 2014. Mr. Vikas Garg and Ms.
Meenakshi Garg are the directors of the Company.
Company is having 2 units, located in Haridwar. The Company is manufacturers of Electrical
and Electronics Wires & Cables under the brand V-MARC.
1
Please refer to www.brickworkratings.com for definition of the Ratings
www.brickworkratings.com
1
15 Oct 2014
Business Operation:
The Company started their manufacturing unit in 2008 and manufactures low tension wires.
The Company is mainly into manufacturing of wires like Balloon Wire, Broadcasting Cables,
Bare Copper Aerial Wires, CCTV Cables, Custom Made Cables, Computer & Keyboard Cables,
Earth Wire Silver & Copper Plating, Headphone & Pick-UP Wires, HR, FR, PU, FRLS PVC
Insulated, etc under the name of V-MARC. The key management personnel Mr. Vikas Garg is
the major shareholder of the Company. He is having 18 yrs of experience in the same field and is
the major decision taker of the Company.
Ms. Meenakshi Garg has joined the Company in the year 2010.
Financial Performance:
The net sales have increased from ₹ 50.28 Crores in FY13 to ₹ 60.66 Crores in FY14. The
Company reported profitability with operating profit margin of 7.06 per cent and net profit
margin of 2.45 per cent for FY 14. Debt equity ratio has decreased from 1.48 times in FY13 to
1.36 times in FY14. The tangible net-worth was ₹11.69 crores for FY14.
Rating Outlook:
The rating reflects the position of the Company in the manufacturing segment of the industry it
caters to. Going forward, ability of the firm to achieve its projected turn over, ability to secure
tenders and receive orders, improve profitability and timely execution of projects will be the key
rating sensitivities.
Analyst Contact
Relationship Contact
[email protected]
[email protected]
Phone
Media Contact
1-860-425-2742
[email protected]
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.
www.brickworkratings.com
2
15 Oct 2014