| CIS Bureaus Facility Services Private Limited | ||||||
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| 1 crore = 10 million | ||||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
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| This Rating Rationale is published solely to update the bank-wise facility details as provided by the rated entity; other sections are same as the previous Rating Rationale dated January 31, 2022. |
Detailed Rationale CRISIL Ratings on the bank facilities of CIS Bureaus Facility Services Private Limited (CISB; part of the CISB group) continues to reflect the group's established market position with strong customer base and the extensive experience of the promoter in the security services and facility industry and healthy financial risk profile. These strengths are partially offset by working capital intensive operations and susceptibility to intense competition. |
Analytical Approach For arriving at the rating, CRISIL Ratings has consolidated the business and financial risk profiles of CISB, Golden Hospitality Services Pvt. Ltd. (GHSPL) and CISB Technologies Pvt. Ltd. (CISBT). That's because these entities, collectively referred to as the CISB group, have common promoters, are in the same line of business, and have significant operational, managerial and financial linkages.
Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation. |
Key Rating Drivers & Detailed Description Strengths: Established market position and extensive experience of the promoters More than 25-year-long industry experience of the promoter, Mr Krishna Pimple, has helped the group establish a strong market position in the security and facility maintenance service industry with more than 50 branch offices across India. The group's ability to maintain its standard of services has resulted in a steady order flow and a high client retention rate over the years.
Diversified customer base and pan India presence Owing to its long standing presence in the industry, the company has a large customer base. The group has a robust client base across India, comprising of top PSUs and reputed banking and financial institutions including SBI Bank, Union Bank of India, Axis Bank, Yes Bank, etc. In addition, the group has PSARA license for 31 states and UTs in India. This has helped navigate through various business cycles and maintain its strong business profile.
Healthy financial risk profile Financial risk profile of the group is healthy marked by strong net worth of Rs 124 crores and gearing of 0.5 time as on March 31, 2021. TOLANW is comfortable at 0.77 times as on March 31, 2021. Further, debt protection metrics are robust marked by interest coverage and net cash accruals to adjusted debt of 3.8 times and 0.26 time, respectively, for fiscal 2021. CRISIL expects group's financial risk profile to remain healthy since there is no large debt-funded capex plans and profitability shall remain healthy.
Weakness: Working capital-intensive operations Operations are working capital intensive as indicated by high receivables of 108 days as on March 31, 2021, and security deposits required to be furnished for contracts. CRISIL believes the operations may remain working capital intensive over the medium term.
Susceptibility to intense competition The security services industry has a large number of unorganised regional players. High demand and vying for a finite pool of employees may exert pressure on the group's operating performance. CISB's ability to maintain its market position and profit margin in the highly competitive security services industry (especially the manned guarding segment, which forms around 80% of the industry) is a key rating sensitivity factor. |
Liquidity: Adequate The group is estimated to generate cash accrual of more than Rs 15 crores against modest repayment obligation over the medium term. The excess cash accruals would support the incremental working capital requirements. Bank line utilization has been moderate at 60% (average utilization) for the past 12 months ending December 2021. Current ratio is estimated 2.2 times as on March 31, 2021. |
Outlook Stable CRISIL Ratings believes CISB group will continue to benefit from its promoter's extensive experience, the group's established market position and healthy financial risk profile. |
Rating Sensitivity factors Upward factors
Downward factors
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About the Company Incorporated in 2004, CISB provides facility services such as security, housekeeping, and repairing. The company also offers electronic surveillance, investigation, and consultancy services. It primarily caters to clients in the banking and financial services sector. CISBT, subsidiary of CISB, is the technology arm of CISB. Mr Krishna Narsingrao Pimple is the promoter, and he also oversees operations. CISB's administrative office is in Mumbai.
GHSPL was incorporated in 2005 and has Mr Krishna Narsingrao Pimple, Mr Sureshkumar Narsingrao Pimple, and Ms Priyanka Saurabh Chande as its promoters. It offers facility management services such as building maintenance and housekeeping to corporate clients. |
Key Financial Indicators
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Any other information: Not applicable |
| Note on complexity levels of the rated instrument: CRISIL Ratings' complexity levels are assigned to various types of financial instruments. The CRISIL Ratings' complexity levels are available on www.crisil.com/complexity-levels. Users are advised to refer to the CRISIL Ratings' complexity levels for instruments that they consider for investment. Users may also call the Customer Service Helpdesk with queries on specific instruments. |
Annexure - Details of Instrument(s)
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| Annexure - Rating History for last 3 Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| All amounts are in Rs.Cr. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||||||||||||||||||
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This Annexure has been updated on 17-May-2022 in line with the lender-wise facility details as on 06-Dec-2021 received from the rated entity
Criteria Details
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