SRS Limited Assigned 'CRISIL BBB/FA-/Stable' to Bank Debt and FD Programme

SRS Limited Assigned 'CRISIL BBB/FA-/Stable' to Bank Debt and FD Programme

DELHI, May 12, 2014 /PRNewswire/ --



Total Bank Loan Facilities Rated: Rs. 8250 Million
Long Term Rating : CRISIL BBB/Stable (Assigned)
Rs. 1250 Million Fixed Deposits : FA-/Stable (Assigned)



CRISIL has assigned its 'CRISIL BBB/FA-/Stable' rating to the bank facilities and
fixed deposit programme of SRS Ltd (SRS). The rating reflects SRS's diversified product
and services portfolio and above-average financial risk profile with minimal debt
obligations. These rating strengths are partially offset by the company's low operating
profitability in the highly fragmented and competitive gold jewellery industry, and its
large working capital requirements with most debtors being on open credit basis in the
domestic wholesale jewellery business.



Outlook: Stable



CRISIL believes that SRS will continue to benefit from its diversified product and
services portfolio and will maintain its above-average financial risk profile over the
medium term. The outlook may be revised to 'Positive' if the company reports
more-than-expected growth in margins with significant improvement in scale of operations
in its cineplex and retail verticals, and improved debt protection metrics. Conversely,
the outlook may be revised to 'Negative' if the group's debt protection metrics
deteriorate because of lower-than-expected growth in revenue and margins, large
debt-funded capital expenditure, or significant stretch in working capital cycle because
of majority of the debtors being non-secured.



About the Company



SRS, incorporated as SRS Commercial Company Ltd in 2000, got its present name in 2009.
SRS operates in four business verticals: gems and jewellery (SRS Jewells brand), cinema
exhibition (multiplexes under SRS Cinema brand), retail value chains (under SRS Value
Bazaar and SRS Fashion Wear brands) and food and beverages (under SRS 7 Dayz, Asian Amigo,
Punjabi Haandi, and Desi Cafe brands). SRS has been listed on the Bombay Stock Exchange
and National Stock Exchange since September 2011 and is managed by Dr. Anil Jindal, a
first-generation entrepreneur.



SRS reported a net profit and net sales of Rs. 0.33 billion and Rs. 28.88 billion,
respectively, for 2012-13 (refers to financial year, April 1 to March 31), vis-Ã'''' -
vis a net profit of Rs. 0.44 billion on net sales of Rs. 22.67 billion for 2011-12. For
the nine months ended December 31, 2013, SRS reported a net profit of Rs. 0.21 billion on
net sales of Rs. 24.12 billion, against a net profit of Rs. 0.27 billion on net sales of
Rs.17.61 billion for the corresponding period of the previous year.



For more information visit www.SRSparivar.com [http://www.SRSparivar.com ].



Annexure 1 - Details of various bank facilities




Current facilities Previous facilities
Amount Amount
Facility (Rs.Million) Rating Facility (Rs.Million) Rating

Cash Credit 3500 CRISIL BBB/Stable -- 0 --
Letter of Credit* 4750 CRISIL BBB/Stable -- 0 --
Total 8250 -- Total 0 --


* Contains Sub-limit of Cash credit of Rs. 4750 Million.



Primary Media Contact: Manoj Sharma, Corporate Communications Manager, Clout
Communications, 098-111-35420, manoj@cloutcomm.in



Secondary Media Contact: Jyoti Parmar, Communications and Brand Management, CRISIL
Limited, +91-22-3342-1835, jyoti.parmar@crisil.com




SRS Limited


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