Press Release
Saastha Ware Housing Limited
February 08, 2021
Ratings
Amount
Facilities / Instruments Rating1 Rating Action
(Rs. crore)
Rating continues to
CARE BB; remain under ISSUER
Long Term Bank ISSUER NOT COOPERATING* NOT COOPERATING
20.00
Facilities (Double B category and Revised
ISSUER NOT COOPERATING*) from CARE BB+;
(Double B Plus)
20.00
Total Facilities (Rs. Twenty Crore
Only)
Details of instruments/facilities in Annexure-1
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated November 18, 2019, placed the rating(s) of Saastha Ware Housing Limited
(SWHL) under the ‘issuer non-cooperating’ category as SWHL had failed to provide information for monitoring
of the rating. SWHL continues to be non-cooperative despite repeated requests for submission of information
through e-mail dated January 08, 2021, and numerous phone calls. In line with the extant SEBI guidelines, CARE
has reviewed the rating on the basis of the best available information which however, in CARE’s opinion is not
sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public at large) are hence requested to exercise
caution while using the above rating(s).
The ratings have been revised on account of non-availability of substantial information required for monitoring
of the rating. Further as per financials available from MCA (Ministry of Corporate Affairs) the total revenue
declined from 8.40 crores in FY18 to 7.19 crore in FY19. The operating profit margins also declined substantially
to 47.80% in FY 19 as against 72.15% in FY18.
Detailed description of the key rating drivers
At the time of last rating November 18, 2019, the following were the rating strengths and weaknesses:
Key Rating Weaknesses
Intense competition: There is an intense competition in the warehousing industry due to low entry barriers, and
high fragmentation. Unorganised sector poses a threat and competition to modern warehouse because of lesser
overheads and competitive rates.
Future expansion plans: The company is planning to add new warehouses with nearly full utilisation of the
existing warehouses. SWHL plans to avail term debt towards the expansion which is expected to deteriorate
its capital structure.
Key Rating Strengths
Experience of the promoters in the logistics industry: The NDR group has more than five decade of experience
in logistics business which includes CFS operations, warehousing, air cargo delivery and supply chain
management services, such as manpower service, transportation and facility services to corporate clients. Mr.
N A Reddy, chairman of the group has more than 3 decades of experience in logistics industry.
Long term relationship with customers: The NDR group, being involved in the logistics business for around
five decades, has established relationship with the shipping lines and custom house agents which helps in
attracting cargo for the CFS/PFT and warehousing facilities spread across India.
1Complete definitions of the ratings assigned are available at www.careratings.com and in other CARE publications
*Issuer did not cooperate; Based on best available information
1 CARE Ratings Limited
Press Release
Financial support from the promoters: The promoters of SWL have supported the operations of the company
by providing loans and advances when needed. Further the term loan from Bank of Baroda is secured against
future lease rentals from the cold storage facility in Mumbai which has been leased to Continental
Warehousing Corporation (NhavaSeva) Ltd, group company, for a period of 6 years.
Moderately Geared Capital Structure: SWHL has a comfortable capital structure with overall gearing at 0.50x
as on March 31, 2019.
Analytical approach: Standalone
Applicable Criteria
Policy in respect of Non-cooperation by issuer
CARE’s Policy on Default Recognition
Financial ratios – Non-Financial Sector
Criteria on assigning ‘outlook’ and ‘credit watch’ to Credit Ratings
Liquidity Analysis of Non-Financial Sector Entities
Criteria on “Complexity level of rated instruments”
About the Company
Saastha Warehousing Ltd. (SWHL) incorporated in 1994 is promoted by Shri N Adikesavulu Reddy. The
company is engaged in the business of warehousing facilities and has around 1.80 lacs sqft of warehousing
space on outright as well as leased basis in Bangalore and Hyderabad. Its main clients are Kodak India Ltd.,
Arvind Mills, Tata BP Solar, Sony India Ltd., Kirloskar Oil Engines Ltd and Sony Entertainment Ltd
The Company has also developed an integrated Cold Chain Project duly approved by the Ministry of Food
Processing Industry, Govt. of India at Raigad, Maharashtra. The facility includes 16 chambers with capacity of
10,000 MT with an assured protection against ammonia contamination risk to the stored cargo.
The company is a part of NDR Group providing agri-warehousing and third party logistics services since 1954.
Continental Warehousing Corporation (NhavaSeva) Limited, flagship company of the group provides
warehousing, CFS services, cargo storage, bonded & general warehouse facility and container depot with repair
facilities. The other companies in the group includes Continental Multimodal Terminals Limited (CMTL), the
company operates a PFT in Hyderabad. Kaveri Warehousing Pvt. Ltd. (KWPL) which is engaged in supply chain
management services, such as manpower service, transportation and facility services to corporate clients and
Delex Cargo (India) Private Limited (DelEx) providing pick-up and delivery operations, express cargo services
and distribution logistic services to domestic airlines. KWIL was merged with DelEx in 2012-13.
Financial Performance*:
Particulars FY18 (A) FY19(A)
Total Operating income 8.40 7.19
PBILDT 6.06 3.44
PAT 2.36 2.99
Overall Gearing 0.55 0.50
Interest coverage (times) 3.58 5.41
*As per information available on ROC
Status of non-cooperation with previous CRA: Not Applicable
Any other information: Not Applicable
Rating History for last three years: Please refer Annexure-2
2 CARE Ratings Limited
Press Release
Annexure-1: Details of Instruments/Facilities
Size of the
Name of the Date of Coupon Maturity Rating assigned along
Issue
Instrument Issuance Rate Date with Rating Outlook
(Rs. crore)
CARE BB; ISSUER NOT
Fund-based - LT-
- - - 20.00 COOPERATING*
Term Loan
*Issuer did not cooperate; Based on best available information
Annexure-2: Rating History of last three years
Current Ratings Rating history
Date(s) Date(s)
Name of the Type Rating & Date(s) & Date(s) & &
Sr. Amount
Instrument/Bank Rating(s) Rating(s) Rating(s) Rating(s)
No. Outstanding
Facilities assigned assigned in assigned in assigned
(Rs. crore)
in 2020- 2019-2020 2018-2019 in 2017-
2021 2018
1)CARE BB+; 1)CARE BBB-;
CARE BB;
ISSUER NOT ISSUER NOT
Fund-based - LT- ISSUER NOT
1. LT 20.00 - COOPERATING* COOPERATING* -
Term Loan COOPERATING*
(18-Nov-19) (11-Jun-18)
*Issuer did not cooperate; Based on best available information
Annexure 3: Complexity level of various instruments rated for this Company
Sr.
Name of the Instrument Complexity Level
No.
1. Fund-based - LT-Term Loan Simple
Note on complexity levels of the rated instrument: CARE has classified instruments rated by it on the
basis of complexity. This classification is available at www.careratings.com. Investors/market
intermediaries/regulators or others are welcome to write to care@careratings.com for any clarifications.
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Contact us
Media Contact
Mradul Mishra
Contact no. – +91-22-6837 4424
Email ID – mradul.mishra@careratings.com
Analyst Contact
Group Head Name – Arunava Paul
Group Head Contact no.- 022 6754 3667
Group Head Email ID- arunava.paul@careratings.com
Business Development Contact Mr. Ankur Sachdeva
Cell: + 91 98196 98985
E-mail: ankur.sachdeva@careratings.com
Mr. Saikat Roy
Cell: + 91 98209 98779
E-mail: saikat.roy@careratings.com
About CARE Ratings:
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leading credit rating agencies in India. CARE is registered with the Securities and Exchange Board of India (SEBI)
and also recognized as an External Credit Assessment Institution (ECAI) by the Reserve Bank of India (RBI).
CARE Ratings is proud of its rightful place in the Indian capital market built around investor confidence. CARE
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Disclaimer
CARE’s ratings are opinions on credit quality and are not recommendations to sanction, renew, disburse or
recall the concerned bank facilities or to buy, sell or hold any security. CARE has based its ratings/outlooks on
information obtained from sources believed by it to be accurate and reliable. CARE does not, however,
guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors
or omissions or for the results obtained from the use of such information. Most entities whose bank
facilities/instruments are rated by CARE have paid a credit rating fee, based on the amount and type of bank
facilities/instruments.
In case of partnership/proprietary concerns, the rating /outlook assigned by CARE is based on the capital
deployed by the partners/proprietor and the financial strength of the firm at present. The rating/outlook
may undergo change in case of withdrawal of capital or the unsecured loans brought in by the
partners/proprietor in addition to the financial performance and other relevant factors.
**For detailed Rationale Report and subscription information, please contact us at www.careratings.com
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