CRISIL has assigned its ‘BB/Stable’ rating to Rashmi Housing SPV Pvt Ltd’s (RHSPL’s) working capital demand loan facility. The rating reflects RHSPL’s small scale of operations, geographically concentrated revenue profile, and susceptibility to cyclicality inherent in the real estate sector. These rating weaknesses are partially offset by experience of RHSPL’s promoters in the real estate development business.

Outlook: Stable
CRISIL believes that RHSPL will maintain its financial risk profile over the medium term, backed by advances received from customers for bookings in its upcoming projects, Rashmi Complex and Rashmi Star City, in Thane. The outlook may be revised to ‘Positive’ if the company completes its projects on schedule, and finalises sales contracts for all the saleable units without material decline in realisations, resulting in steady cash flows. Conversely, the outlook may be revised to ‘Negative’ if RHSPL faces either time or cost overruns in completion of its projects, adversely impacting its ability to collect construction-linked payments from its customers, and thus, its ability to service debt obligations.

About the Company
RHSPL was set up in 2007 by the Bosmiya family of Mumbai. The Bosmiya family undertakes residential and commercial real estate development activities, and broking and contractual construction since 1993 through its various group companies collectively referred to as the Rashmi group. The management of the group rests with four brothers of the Bosmiya family – Mr. Deepak, Mr. Yogesh, Mr. Hemendra, and Mr. Ashok. The group has completed 37 lakh square feet of construction under the Ghar Ho To Aisa brand in the past 11 years.

RHSPL, a special purpose vehicle, is developing its maiden projects Rashmi Starcity and Rashmi Complex in Vasai and Nallasopara areas. RHSPL has purchased the development rights on the land for a consideration of Rs.50.8 million. The sellable area of the entire project is 3,03,765 square feet. Rashmi Complex will have nine buildings and Rashmi Starcity will have 17 buildings and the two projects combined will have 540 residential units for sale.