Please note: This advisory should not be construed as a rating reaffirmation.
Rating Advisory
February 10, 2017 | Mumbai
A darsh Bi rmechaO ri gi nal Templ at e123Deva Interiors Private Limited
Advisory as on February 10, 2017
This rating advisory is provided in relation to the rating of Deva Interiors Private Limited The key rating sensitivity factors for the rating include:
Timely and efficient execution of projects
Working capital management
Future capital expenditure (capex) and their funding pattern
CRISIL Ratings has a policy of keeping its accepted ratings under constant and ongoing monitoring and review. Accordingly, it seeks regular updates from companies on business and financial performance. CRISIL is yet to receive adequate information from Deva Interiors Private Limited (DIPL) to enable it to undertake a rating review. CRISIL is taking all possible efforts to get to cooperate with its rating process for enabling it to carry out the rating review.
CRISIL views information availability risk as a key factor in its assessment of credit risk. (Please refer to CRISIL Ratings publication dated April 30, 2012 - 'Information Availability - a key risk factor in credit ratings')
If DIPL continues to delay the provisioning of information required by CRISIL to undertake a rating review then, in accordance with circular SEBI/HO/MIRSD/MIRSD4/CIR/P/2016/119 dt Nov 1, 2016 issued by Securities and Exchange Board of India, CRISIL will carry out the review based on best available information and issue a press release.
About The Company
Established in 1995 by Mr. R P Singh, Chennai-based DIPL designs interiors of office spaces,
commercial real estate ventures, showrooms, and residential spaces. The company has executed
various projects in different locations including Chennai, Mumbai, Bhubaneswar, Bengaluru, Bhopal,
and Hyderabad.
DISCLAIMER
This disclaimer f orms part of and applies to each credit rating report and/or credit rating rationale that we prov ide (each a “Report”). For the av oidance of doubt, the term “Report” includes the inf ormation, ratings and other content f orming part of the Report. The Report is intended f or the jurisdiction of India only . This Report does not constitute an of f er of serv ices. Without limiting the generality of the f oregoing, nothing in the Report is to be construed as CRISIL prov iding or intending to prov ide any serv ices in jurisdictions where CRISIL does not hav e the necessary licenses and/or registration to carry out its business activ ities
ref erred to abov e. Access or use of this Report does not create a client relationship between CRISIL and the user.
We are not aware that any user intends to rely on the Report or of the manner in which a user intends to use the Report. In preparing our Report we hav e not taken into consideration the objectiv es or particular needs of any particular user. It is made abundantly clear that the Report is not intended to and does not constitute an inv estment adv ice. The Report is not an of f er to sell or an of f er to purchase or subscribe f or any inv estment in any securities, instruments, f acilities or solicitation of any kind or otherwise enter into any deal or transaction with the entity to which the Report pertains. The Report should not be the sole or
primary basis f or any inv estment decision within the meaning of any law or regulation (including the laws and regulations applicable in the US).
Ratings f rom CRISIL Rating are statements of opinion as of the date they are expressed and not statements of f act or recommendations to purchase, hold, or sell any securities / instruments or to make any inv estment decisions. Any opinions expressed here are in good f aith, are subject to change without notice, and are only current as of the stated date of their issue. CRISIL assumes no obligation to update its opinions f ollowing publication in any f orm or f ormat although CRISIL may disseminate its opinions and analy sis. CRISIL rating contained in the Report is not a substitute f or the skill, judgment and experience of the
user, its management, employ ees, adv isors and/or clients when making inv estment or other business decisions. The recipien ts of the Report should rely on their own judgment and take their own prof essional adv ice bef ore acting on the Report in any way .
Neither CRISIL nor its af f iliates, third party prov iders, as well as their directors, of f icers, shareholders, employ ees or ag ents (collectiv ely , “CRISIL Parties”) guarantee the accuracy , completeness or adequacy of the Report, and no CRISIL Party shall hav e any liability f or any errors, omissions, or interruptions therein, regardless of the cause, or f or the results obtained f rom the use of any part of the Report. EACH CRISIL PARTY DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY , SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no ev ent shall any CRISIL Party be liable to any party f or any direct, indirect, incidental, exemplary , compensatory , punitiv e, special or consequential damages, costs, expenses, legal f ees, or losses (including, without limitation, lost income or lost prof its and
opportunity costs) in connection with any use of any part of the Report ev en if adv ised of the possibility of such damages.
CRISIL Ratings may receiv e compensation f or its ratings and certain credit -related analy ses, normally f rom issuers or underwriters of the instruments, f acilities, securities or f rom obligors. CRISIL’s public ratings and analy sis as are required to be disclosed under the regulations of the Securities and Exchange Board of India (and other applicable regulations, if any ) are made av ailable on its web sites, www.crisil.com (f ree of charge). Reports with more detail and additional
inf ormation may be av ailable f or subscription at a f ee – more details about CRISIL ratings are av ailable here: www.crisilratings.com.
CRISIL and its af f iliates do not act as a f iduciary . While CRISIL has obtained inf ormation f rom sources it believ es to be rel iable, CRISIL does not perf orm an audit and undertakes no duty of due diligence or independent v erif ication of any inf ormati on it receiv es and / or relies in its Reports.
CRISIL keeps certain activ ities of its business units separate f rom each other in order to preserv e the independence and objectiv ity of the respectiv e activ ity. As a result, certain business units of CRISIL may hav e inf ormation that is not av ailable to other CRISIL business units. CRISIL has established policies and procedures to maintain the conf identiality of certain non-public inf ormation receiv ed in connection with each analy tical process. CRISIL has in place a ratings code of conduct and policies f or analy tical f irewalls and f or managing conf lict of interest. For details please ref er to: http://www.crisil.com/ratings/highlightedpolicy .html
CRISIL’s rating criteria are generally av ailable without charge to the public on the CRISIL public web site, www.crisil.com. For latest rating inf ormation on any instrument of any company rated by CRISIL y ou may contact CRISIL RATING 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 f orm without a prior written consent of CRISIL.
All rights reserv ed @ CRISIL
September 16, 2015 Mumbai
Deva Interiors Private Limited
Suspension revoked; 'CRISIL B+/Stable/CRISIL A4' assigned to bank debt
Total Bank Loan Facilities Rated Rs.110 Million
Long Term Rating CRISIL B+/Stable (Assigned; Suspension
Revoked)
Short Term Rating CRISIL A4 (Assigned; Suspension Revoked)
(Refer to Annexure 1 for Facility-wise details)
CRISIL has revoked the suspension of its ratings on the bank facilities of Deva Interiors Pvt Ltd (DIPL) and assigned its ' CRISIL B+/Stable/CRISIL A4 ' ratings to the facilities. CRISIL had, on July 17, 2014, suspended the ratings as DIPL had not provided the necessary information required to maintain a valid rating. The company has now shared the requisite information, enabling CRISIL to assign ratings to the facilities.
The ratings reflect DIPL's modest scale of operations in an intensely competitive industry. The ratings also factor in the company's below-average financial risk profile because of high gearing and subdued debt protection metrics. These rating weaknesses are partially offset by the promoters' extensive experience in the civil construction and interior decoration industry.
Outlook: Stable
CRISIL believes that DIPL will continue to benefit over the medium term from the industry experience of its promoters. The outlook may be revised to 'Positive' in case of substantial cash accrual, leading to improvement in the financial risk profile.
Conversely, the outlook may be revised to 'Negative' if the revenue or profitability is low, or the working capital management deteriorates, resulting in weakening of the company's liquidity.
About the Company
Established in 1995 by Mr. R P Singh, Chennai-based DIPL designs interiors of office spaces, commercial real estate ventures, showrooms, and residential spaces. The company has executed various projects in different locations including Chennai, Mumbai, Bhubaneswar, Bengaluru, Bhopal, and Hyderabad.
DIPL reported, on a provisional basis, profit after tax (PAT) of Rs.9.7 million on revenue of Rs.270 million for 2014-15 (refers to financial year, April 1 to March 31) against PAT of Rs.9.7 million on revenue of Rs.275 million for 2013-14.
Annexure 1 - Details of various bank facilities
Current facilities Previous facilities
Facility Amount
(Rs.Million) Rating Facility Amount
(Rs.Million) Rating
Bank Guarantee * 35 CRISIL A4 -- 0 --
Cash Credit 75 CRISIL
B+/Stable -- 0 --
Total 110 -- Total 0 --
* Interchangeable with Letter of Credit
September 16, 2015 http://www.crisil.com
Media Contacts Analytical Contacts Customer Service Helpdesk Tanuja Abhinandan
Media Relations CRISIL Limited
Phone: +91 22 3342 1818
Email:[email protected] Jyoti Parmar
Media Relations CRISIL Limited
Phone: +91 22 3342 1835 E-mail: [email protected]
Vasudevan R
Director - CRISIL Ratings Phone:+91 44 6656 3100 Email: [email protected] Rama Patel
Director - CRISIL Ratings Phone:+91 22 4254 1919 Email: [email protected]
Timings: 10.00 am TO 7.00 pm
Toll free Number:1800 267 1301
Email: [email protected]
Note:
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. However, CRISIL alone has the sole right of distribution of its rationales for consideration or otherwise through any media including websites, portals etc.
Crisil complexity levels are assigned to various types of financial instruments. The crisil complexity levels are available on www.crisil.com/complexity-levels.investors are advised to refer to the crisil complexity levels for instruments that they desire to invest in. Investors may also call the Customer Service Helpdesk with queries on specific instruments.
About CRISIL LIMITED
CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services. We are India's leading ratings agency. We are also the foremost provider of high-end research to the world's largest banks and leading corporations.
About CRISIL Ratings
CRISIL Ratings is India's leading rating agency. We pioneered the concept of credit rating in India in 1987. With a tradition of independence, analytical rigour and innovation, we have a leadership position. We have rated over 75,000 entities, by far the largest number in India. We are a full- service rating agency. We rate the entire range of debt instruments: bank loans, certificates of deposit, commercial paper, non-convertible debentures, bank hybrid capital instruments, asset-backed securities, mortgage-backed securities, perpetual bonds, and partial guarantees. CRISIL sets the standards in every aspect of the credit rating business. We have instituted several innovations in India including rating municipal bonds, partially guaranteed instruments and microfinance institutions. We pioneered a globally unique and affordable rating service for Small and Medium Enterprises (SMEs).This has significantly expanded the market for ratings and is improving SMEs' access to affordable finance. We have an active outreach programme with issuers, investors and regulators to maintain a high level of transparency regarding our rating criteria and to disseminate our analytical insights and knowledge.
CRISIL PRIVACY NOTICE
CRISIL respects your privacy. We use your contact information, such as your name, address, and email id, to fulfil your request and service your account and to provide you with additional information from CRISIL and other parts of McGraw Hill Financial you may find of interest.
For further information, or to let us know your preferences with respect to receiving marketing materials, please visit www.crisil.com/privacy. You can view McGraw Hill Financial's Customer Privacy Policy at http://www.mhfi.com/privacy.
Last updated: August, 2014
Disclaimer:A CRISIL rating reflects CRISIL's current opinion on the likelihood of timely payment of the obligations under the rated instrument and does not constitute an audit of the rated entity by CRISIL. CRISIL ratings are based on information provided by the issuer or obtained by CRISIL from sources it considers reliable. CRISIL does not guarantee the completeness or accuracy of the information on which the rating is based. A CRISIL rating is not a recommendation to buy, sell, or hold the rated instrument;
it does not comment on the market price or suitability for a particular investor. Rating action may be initiated as and when circumstances so warrant. CRISIL is not responsible for any errors and especially states that it has no financial liability whatsoever to the subscribers / users / transmitters / distributors of this product. CRISIL Ratings' rating criteria are generally available without charge to the public on the CRISIL public web site, www.crisil.com. For the latest rating information on any instrument of any company rated by CRISIL, please contact CRISIL RATING DESK at [email protected], or at (+91 22) 3342 3000.
