Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
Rating Rationale
Acuité has reaffirmed its long-term rating of 'ACUITE B' (read as ACUITE B) on the Rs. 10.14 Cr. bank facilities of P F Glass Foundation. The outlook is 'Stable'.
Rationale for Rating Reaffirmed The rating reaffirmation factors in the experienced management and benefits derived from being promoted by Audyogik Nidhi Vishwast Sanstha (ANVS). However, the rating is constrained by limited operational track record, below average financial risk profile, working capital intensive operations and stretched liquidity position of the company.
About the Company
P F Glass Foundation (PFGF) is a Company incorporated in the year 2018 and registered under Section-8 of the Companies Act-2013 with the registrar of companies (ROC), Pune. PFGF is promoted by Audyogik Nidhi Vishwast Sanstha (ANVS), Talegaon Dabhade, Pune, Maharashtra.
PFGF has set up a Toughened glass processing unit at Talegaon Dabhade where commercial production commenced in Jun 2023. The company caters to Architecture, Automotive, Flat Glasses for White goods (OEMs) for ovens, Glass Hobs etc. PFGF has carried out a long-term management agreement with its parent body ANVS for providing land and ready to use industrial shed of area 22,000+ sq. ft.
About Audyogik Nidhi Vishwast Sanstha (ANVS)
Audyogik Nidhi Vishwast Sanstha (ANVS) is more than 100-year-old charitable trust registered under the Bombay Public Trust (BPT) Act- 1950 with the Charity Commissioner, Pune. ANVS registration no. is F-58, dated 5th Nov. 1952. ANVS is popularly known as 'Paisa Fund (PF) Glass Works 'or 'Paisa Fund Kanch Karkhana'. ANVS has been registered with the main objects of bringing in an industrial development in India and to increase involvement of people in industrial activities. The word 'Paisa Fund' has a long historical standing in the Indian Independence movement.
Unsupported Rating
Not Applicable
Analytical Approach
Acuité has considered the standalone business and financial risk profile of PFGF to arrive at the rating.
Key Rating Drivers
Strengths
Experienced Promoter group PFGF is promoted and backed by ANVS which is a 100-year-old charitable trust. The trust has provided land and key managerial personnel to PFGF to set up a Toughened glass processing unit at Talegaon Dabhade in the year 2023 to cater to Architecture, Automotive, Flat Glasses for White goods (OEMs) for ovens, Glass Hobs etc. PFGF has carried out a long-term management agreement with its parent body ANVS for providing land and ready to use industrial shed of area 22,000+ sq. ft. The team of PFGF are Glass experts by qualification and having more than 23 years of rich experience in glass field, decided to enter flat glass processing and enter safety glass market. The extensive experience of the promoters will help in establishing healthy relationships with their customers and suppliers. Acuite, believes that experienced management is likely to help in the improvement of the business risk profile in the medium term.
Weaknesses
Small scale of operations The operating income of the company stood at Rs. 16.51 Cr. in FY2025 as compared to Rs. 3.39 Cr. in FY2024 (for 10 months). The stable revenue in FY2025 on account of orders received from Haier and Franke Faber for toughen glass used in refrigerator, ovens, cook top etc. The company reported EBITDA of Rs. 1.05 Cr. in FY25 as against losses to the tune of Rs. 0.51 Cr. in FY24. EBITDA in FY25 is low majorly due to increase in raw material prices. The company incurred losses at PAT level to the tune of Rs. 1.59 Cr. in FY25 as compared to (Rs. 3.04) Cr. in FY24 respectively due to initial stage of operations. Further, the company has recorded revenue of Rs. 17.94 Cr. in FY2026 and EBITDA at Rs. 0.05 Cr. The company is expected to report thin profits at operating level in coming years; however, company will continue to report losses at PAT level in the medium term.
Below average financial risk profile The financial risk profile of the company remained below average in FY2025 marked by negative net worth, gearing level and debt protection metrics. The tangible net worth of the company stood at (Rs. 4.69 Cr.) as on March 31, 2025 as compared to (Rs. 3.10 Cr.) as on March 31, 2024. The total debt of the company stood at Rs.11.65 Cr. as on March 31, 2025 as compared to Rs.11.00 Cr. as on March 31, 2024. The capital structure of the entity remains low with the gearing of (2.48) times in FY25 as against (3.55) times in FY24. The TOL/TNW stood at (3.58) times as on March 2025 compared to (4.89) times as on March 2024. The debt protection metrics stood low as reflected by debt service coverage ratio (DSCR) of 0.43 times in FY25 as compared to (0.56) times in FY24 and interest service coverage ratio (ICR) stood at 0.95 times in FY25 as against (0.56) times in FY24. Further, the Debt/EBITDA levels stood at 10.71 times in FY2025 as compared to (23.63) times in FY2024. Going ahead, the financial risk profile of the company is expected to remain below average on account of subdued profitability.
Moderately intensive working capital operations The working capital operations of the company are of moderately intensive nature marked by gross current assets (GCA) days of 104 days in FY25 as against 384 days in FY24. The debtor days stood at 60 days in FY25 as compared to 140 days in FY24. The inventory days stood at 28 days in FY25 and 66 days in FY24. The creditor days stood at 178 days in FY25 as compared to 837 days in FY24. The company on an average receives 45 days to 60 days credit period from the suppliers. However, the reliance on working capital limits stood high at 94.94% for the last 6 months ending April’26. Acuite believes that the working capital operations would remain in similar range over the medium term.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Sustain growth in revenues and improvement in profitability
Improvement in financial risk profile with DSCR above 1.10 times on a sustained basis
Potential triggers (individual or collective) for a downward rating action:
Significant decline in revenues and profitability margins
Elongation in working capital cycle above 120 days leading to further stretch in liquidity thereby affecting debt serviceability
Liquidity Position
Stretched
The liquidity of the company is stretched, marked by insufficient net cash accruals to service its debt repayment obligations. The Net cash accruals of the company stood at (Rs. 0.06 Cr) in FY25 as against repayment obligation of Rs. 1.37 Cr. during the same period. Further, the net cash accruals are expected to remain low to meet its debt obligation in the near term. The debt obligations will be funded through its trust ANVS by sale of land. The company’s reliance on bank limits is high with average utilization of 94.94% for 6 months ended April’26. The current ratio of the company stood at 0.69 times in FY25.
Outlook: Stable
Other Factors affecting Rating
None
Particulars
Unit
FY 25 (Actual)
FY 24 (Actual)
Operating Income
Rs. Cr.
16.51
3.39
PAT
Rs. Cr.
(1.59)
(3.04)
PAT Margin
(%)
(9.66)
(89.77)
Total Debt/Tangible Net Worth
Times
(2.48)
(3.55)
PBDIT/Interest
Times
0.95
(0.56)
Status of non-cooperation with previous CRA (if applicable)
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
Contacts
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