Press Release April 24, 2025 YANKI SIZZLERR PRIVATE LIMITED Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	30.00	ACUITE B+ | Stable | Assigned	-
Total Outstanding	30.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuité has assigned its long-term rating of 'ACUITE B+ (read as ACUITE B plus)' on the Rs. 30.00 Cr. bank facilities of Yanki Sizzlerr Private Limited (YSPL). The outlook is ‘Stable’. Rationale for Rating The rating assigned reflects the experienced management, long operational track record of the company and moderate working capital management. However, the rating is constrained by the company’s small scale of operations, below average financial risk profile, geographic concentration risk and exposure to intense competition.

About the Company

Yanki Sizzlerr Private Limited (YSPL) was incorporated in 2014. The directors include Mr. Abhishek Jani and Mr. Nilesh Gupta. The company is running a speciality restaurant chain and banquet as well as outdoor catering Services. Over the years, it has expanded its operations, now owning and managing restaurants in Navrangpura, Shilaj and Gandhinagar each and banquet halls in Navrangpura and Gandhinagar and also offering outdoor catering services.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuite has considered the standalone business and financial risk profile of Yanki Sizzlerr Private Limited (YSPL) to arrive at the rating.

Key Rating Drivers

Strengths

­­Experienced Management Incorporated in 2014, Yanki Sizzlerr Private Limited (YSPL) is managed by Mr. Abhishek Jani and Mr. Nilesh Gupta. The company is running a restaurant chain and Banquet as well as outdoor Catering Service. The directors have been engaged in the industry for around a decade. Additionally, the company is supported by a qualified management team. The company’s extensive industry experience is evident in their strong and long-standing relationships with customers and suppliers. Acuite believes, the company will benefit from the extensive experience of the directors in maintaining long standing relations with suppliers and customers. Moderate Working capital management The working capital operations of the company remained moderate, marked by a GCA of 146 days in FY 2024, as compared to 124 days in FY 2023. Debtor days stood at 1 day as of March 31, 2024, compared to 2 days as of March 31, 2023. The inventory days were 113 days in FY 2024, compared to 91 days in FY 2023. The higher inventory levels in FY2024 were primarily due to the storage of sauces and inventory related to banquet and outdoor catering services. The average inventory holding period is around 90-120 days. Additionally, creditor days stood at 77 days in FY 2024, compared to 4 days in the previous year. The average credit period is around 15 days. Furthermore, reliance on working capital limits is moderate h, with utilization at  ~ 89 percent over 6 months ending January 2025. Acuité believes that the working capital operations of the company would remain moderate over the medium term on account of nature of operations.

Weaknesses

­Small scale of operations albeit comfortable profitability margins YSPL has a small scale of operations, as reflected in its operating income of Rs. 12.37 Cr. for FY2024, compared to Rs. 13.06 Cr. in FY2023 and Rs. 8.39 Cr. in FY2022. The company reported a revenue of Rs. 13.61 Cr. in 9M FY2025 and aims to achieve revenue of approximately Rs. 20 Cr in FY2025 on the back of commencement of Gandhinagar restaurant on October 2024. The operating margins have improved to 30.94 percent in FY2024 from 29.40 percent in FY2023, However, Profit After Tax (PAT) margins deteriorated marginally to 4.77 percent in FY2024 from 5.22 percent in FY2023 due to increased interest and depreciation cost. Acuité believes that the firm's ability to register significant growth in its revenues while improving its profitability would be key a rating sensitivity. Below Average financial risk profile The financial risk profile of YSPL is below average, marked by low net worth, high gearing, and average debt protection metrics. The company’s net worth stood at Rs. 3.36 Cr. as of March 31, 2024 compared to Rs. 2.77 Cr. as of March 31, 2023. The gearing of the firm is high at 8.55 times as of March 31, 2024, compared to 7.62 times as of March 31, 2023. Further, debt protection metrics are below-average, with the debt service coverage ratio (DSCR) at 1.16 times in FY 2024, compared to 1.52 times in the previous year. Total outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 8.84 times as of March 31,2024, compared to 7.75 times as of March 31, 2023. The Net Cash Accruals to Total Debt (NCA/TD) stood at 0.06 times in FY 2024, compared to 0.08 times in the previous year. Acuite believes, the financial risk profile of the company would remain below average on account of low net worth base. Exposure to intense competition and Geographic concentration risk YSPL operates in a highly competitive market, facing challenges from both organized and unorganized restaurant chains with significant market share, along with evolving consumer preferences. The company’s ability to sustain growth and enhance profit margins amid this intense competition will be crucial to its long-term success.  Further, the restaurants are located only in Gujarat, thus exposing operations to geographical concentration risk.

Rating Sensitivities

Consistent Improvement in scale of operations and profitability margins. Deterioration in working Capital cycle Changes in Financial Risk Profile owing to major debt funded capex

Liquidity Position

Stretched

The company's liquidity position is stretched, marked by low net cash accruals of Rs. 1.60 Cr. in FY2024 against its debt obligations of around Rs. 1.05 Cr. Further, the company is expected to generate cash accruals in the range of Rs. 2.91 – 4.47 Cr., compared to maturing repayment obligations of around Rs. 2.10 Cr. – 2.48 Cr. over the medium term with current ratio of 0.95 times as on March 31, 2024. The cash and bank balance as of FY24 stood at Rs. 1.45 Cr., compared to Rs. 1.34 Cr. in FY23. The working capital limit utilisation is high at 89 percent ending January 2025.

Outlook: Stable

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Other Factors affecting Rating

­­None

Key Financials

Particulars	Unit	FY 24 (Actual)	FY 23 (Actual)
Operating Income	Rs. Cr.	12.37	13.06
PAT	Rs. Cr.	0.59	0.68
PAT Margin	(%)	4.77	5.22
Total Debt/Tangible Net Worth	Times	8.55	7.62
PBDIT/Interest	Times	1.66	1.78

Status of non-cooperation with previous CRA (if applicable)

­­None

Interaction with Audit Committee anytime in the last 12 months (applicable for rated-listed / proposed to be listed debt securities being reviewed by Acuite)

Not applicable

Any other information

­­None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Service Sector: https://www.acuite.in/view-rating-criteria-50.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm

Note on complexity levels of the rated instrument

­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History :

­­­Not Applicable

Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Saraswat Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.30 Simple ACUITE B+ | Stable | Assigned Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.48 Simple ACUITE B+ | Stable | Assigned A U Small Finance Bank Not avl. / Not appl. Secured Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.00 Simple ACUITE B+ | Stable | Assigned Saraswat Bank Not avl. / Not appl. Term Loan 10 Oct 2017 Not avl. / Not appl. 20 Oct 2029 5.38 Simple ACUITE B+ | Stable | Assigned Saraswat Bank Not avl. / Not appl. Term Loan 13 Oct 2017 Not avl. / Not appl. 20 Oct 2029 1.64 Simple ACUITE B+ | Stable | Assigned Saraswat Bank Not avl. / Not appl. Term Loan 14 Nov 2017 Not avl. / Not appl. 20 Sep 2029 0.51 Simple ACUITE B+ | Stable | Assigned Saraswat Bank Not avl. / Not appl. Term Loan 06 Jun 2018 Not avl. / Not appl. 20 Sep 2029 0.20 Simple ACUITE B+ | Stable | Assigned Saraswat Bank Not avl. / Not appl. Term Loan 11 Jun 2018 Not avl. / Not appl. 20 Dec 2028 0.48 Simple ACUITE B+ | Stable | Assigned Saraswat Bank Not avl. / Not appl. Term Loan 12 Feb 2021 Not avl. / Not appl. 20 Dec 2025 0.10 Simple ACUITE B+ | Stable | Assigned Saraswat Bank Not avl. / Not appl. Term Loan 19 Jul 2021 Not avl. / Not appl. 20 May 2031 0.64 Simple ACUITE B+ | Stable | Assigned Saraswat Bank Not avl. / Not appl. Term Loan 06 Apr 2022 Not avl. / Not appl. 06 Apr 2028 3.43 Simple ACUITE B+ | Stable | Assigned Saraswat Bank Not avl. / Not appl. Term Loan 01 Mar 2024 Not avl. / Not appl. 20 Sep 2035 7.95 Simple ACUITE B+ | Stable | Assigned A U Small Finance Bank Not avl. / Not appl. Term Loan 30 Aug 2022 Not avl. / Not appl. 05 Jan 2033 0.61 Simple ACUITE B+ | Stable | Assigned A U Small Finance Bank Not avl. / Not appl. Term Loan 30 Sep 2022 Not avl. / Not appl. 05 Feb 2033 0.26 Simple ACUITE B+ | Stable | Assigned A U Small Finance Bank Not avl. / Not appl. Term Loan 25 Jul 2022 Not avl. / Not appl. 05 Feb 2033 2.02 Simple ACUITE B+ | Stable | Assigned A U Small Finance Bank Not avl. / Not appl. Term Loan 26 Dec 2024 Not avl. / Not appl. 05 Dec 2030 2.00 Simple ACUITE B+ | Stable | Assigned

Contacts

Mohit Jain Senior Vice President - Rating Operations Amay Gupta Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai. Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating. Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.