: CRISIL Ratings :
CRISIL Ratings -Amar Builders
March 29, 2010
Mumbai
CRISIL ‘C’ and ‘P4’ for AMAR BUILDERS’ bank facilities
Rs.100 Million Cash Credit C (Assigned)
Rs.350 Million Bank Guarantee P4 (Assigned)

CRISIL has assigned its ‘C/P4’ ratings to the bank facilities of Amar Builders (Amar). The ratings reflect Amar’s weak liquidity, and limited financial flexibility. The firm’s working capital cash credit limit remained overdrawn from April to June 2009, and then throughout August 2009, reflecting tight liquidity. The firm availed a short-term loan of Rs.200 million in September 2009, which is repayable in six monthly instalments of Rs.33.3 million each starting April 2010. Amar generated low net cash accruals of Rs.74.2 million in 2008-09 (refers to financial year, April 1 to March 31), and Rs.66 million in 2007-08. CRISIL believes that the firm’s net cash accruals are unlikely to increase significantly, and will not be adequate to service the maturing short-term debt; therefore, the firm may have to refinance or restructure the debt.

About the Firm
Set up as a partnership firm in 1987, Amar undertakes road construction work contracts and has four partners - Mr. Chaturbhuj Rathi, Mr. Mahendra Rathi, Mr. Narendra Rathi, and Mr. Surendra Rathi.

For 2008-09, Amar reported net sales and a profit after tax (PAT) of Rs.1.03 billion and Rs.52.6 million, respectively, against Rs.0.95 billion and Rs.48.8 million, respectively, for 2007-08.

Media Contacts Analytical Contacts CRISIL Rating Desk
Mitu Samar
Head, Market Development & Communications
CRISIL Limited
Tel: +91-22- 3342 1838
Email: msamar@crisil.com

Tanuja Abhinandan
Market Development & Communications
CRISIL Limited
Tel: +91-22- 3342 1818
Email: tabhinandan@crisil.com
Pawan Agrawal
Director – CRISIL Ratings
Tel: +91-22-3342 3301
Email: pagrawal@crisil.com

Akash Deep Jyoti
Head - CRISIL Ratings
Tel: +91-22-3342 3234
Email: ajyoti@crisil.com
Tel: +91-22-3342 3047 / 3342 3064
Email: CRISILratingdesk@crisil.com

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March 29, 2010

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