: CRISIL Ratings :

May 03, 2011
Mumbai

CRISIL ‘B’ and ‘P4’ for MUNISH KUMAR BANSAL CONTRACTOR’s bank facilities

Rs.45.0 Million Cash Credit Limit	B/Stable (Assigned)
Rs.25.0 Million Bank Guarantee	P4 (Assigned)

CRISIL has assigned its ‘B/Stable/P4’ rating to the bank facilities of Munish Kumar Bansal Contractor (MKB). The rating reflects MKB’s moderate financial risk profile, marked by high gearing, moderate debt protection metrics and small net worth, small scale of operations, and geographical concentration in its revenue profile. These weaknesses are partially offset by the experience of MKB’s promoters in the construction industry and its comfortable order book, ensuring revenue visibility.

Outlook: Stable
CRISIL believes that MKB will maintain a stable business risk profile, backed by the industry experience of its promoters and its healthy order book position. Its financial profile is, however, expected to be constrained by high gearing and small net worth. The outlook may be revised to ‘Positive’ if MKB’s scale of operations and capital structure improves, most likely because of equity infusion. Conversely, the outlook may be revised to ‘Negative’ if MKB’s financial risk profile deteriorates further, due to a large, debt-funded capital expenditure programme, or in case of withdrawals from the firm.

About the Firm
MKB was established in 2001, by Mr. Munish Kumar Bansal and members of his family. At present, the firm has three partners, Mr. Munish Bansal, Mr. Gopal Bansal, and Mr. Gaurav Bharti, sharing profits in the ratio of 40:35:25. The firm constructs buildings and roads for government undertakings. The construction activities of the firm are mainly in and around Bhatinda (Punjab).

For 2009-10 (refers to financial year, April 1 to March 31), MKB reported book profit of Rs.9.3 million on net sales of Rs.230 million, as against a book profit of Rs.8.4 million on net sales of Rs.234 million for the previous year.

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Mitu Samar Head, Market Development & Communications CRISIL Limited Tel: +91-22- 3342 1838 Mobile No: +91- 9820061934 E-mail: msamar@crisil.com Tanuja Abhinandan Market Development & Communications CRISIL Limited Tel: +91-22-3342 1818 Email: tabhinandan@crisil.com	Gurpreet S Chhatwal Director - CRISIL Ratings Tel: +91-11-4250 5100 Email: gchhatwal@crisil.com Manish Kumar Gupta Head - CRISIL Ratings Tel: +91-11-4250 5100 Email: mkgupta@crisil.com	Tel: +91-22-3342 3047/3342 3064 Email:CRISILratingdesk@crisil.com

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Last updated: March 31, 2011

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May 03, 2011	http://www.crisil.com

Munish Kumar Bansal Contractor