Original T emplate123

Rating Update
March 29, 2022 | Mumbai

West Wind Retails Private Limited

Update as on March 29, 2022

This update is provided in continuation of the rating rational below.

The key rating sensitivity factors for the rating include:

Upward factors

• Sustainable increase in revenue to Rs 175-180 crore while maintaining profitability

• Prudent working capital management leading to lower bank limit utilisation and
improvement in GCAs to less than 90 days
• Sustainability in operating margin

Downward factors

• Incremental working capital requirement resulting in higher bank limit utilisation

• Decline in operating margin to less than 5%
• Decrease in scale of operations

CRISIL Ratings has a policy of keeping its accepted ratings under constant and ongoing monitoring and
review. Accordingly, CRISIL Ratings seeks regular updates from companies on the business and financial
performance. CRISIL Ratings is, however, awaiting adequate information from West Wind Retails Private
Limited (WWRPL) which will enable us to carry out the rating review. CRISIL Ratings will continue provide
updates on relevant developments from time to time on this credit.

CRISIL Ratings also identifies information availability risk as a key credit factor in the rating assessment
as outlined in its criteria ‘Information Availability Risk in Credit Ratings’.

About the company

Established in March 2009 by Mr Rajeev Arora and his brother, Mr Ajay
Arora, WWRPL is currently engaged in franchisee retail for apparel and footwear brands such as Levi
Strauss & Co, Adidas, and Celio. It currently operates 74 retail stores in Haryana, Punjab, Uttar Pradesh,
Uttarakhand, Delhi, and Chandigarh.
About CRISIL Ratings Limited (A subsidiary of CRISIL Limited)

CRISIL Ratings pioneered the concept of credit rating in India in 1987. With a tradition of independence, analytical
rigour and innovation, we set the standards in the credit rating business. We rate the entire range of debt instruments,
such as, bank loans, certificates of deposit, commercial paper, non-convertible / convertible / partially convertible
bonds and debentures, perpetual bonds, bank hybrid capital instruments, asset-backed and mortgage-backed
securities, partial guarantees and other structured debt instruments. We have rated over 33,000 large and mid-scale
corporates and financial institutions. We have also instituted several innovations in India in the rating business,
including rating municipal bonds, partially guaranteed instruments and infrastructure investment trusts (InvITs).

CRISIL Ratings Limited ("CRISIL Ratings") is a wholly-owned subsidiary of CRISIL Limited ("CRISIL"). CRISIL
Ratings Limited is registered in India as a credit rating agency with the Securities and Exchange Board of India
("SEBI").

For more information, visit www.crisilratings.com

About CRISIL Limited

CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services. We are
India's leading ratings agency. We are also the foremost provider of high-end research to the world's largest banks
and leading corporations.

CRISIL is majority owned by S&P Global Inc., a leading provider of transparent and independent ratings,
benchmarks, analytics and data to the capital and commodity markets worldwide

For more information, visit www.crisil.com

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This disclaimer forms part of and applies to each credit rating report and/or credit rating rationale (each a "Report") that is provided by CRISIL
Ratings Limited (hereinafter referred to as "CRISIL Ratings") . For the avoidance of doubt, the term "Report" includes the information, ratings and
other content forming part of the Report. The Report is intended for the jurisdiction of India only. This Report does not constitute an offer of
services. Without limiting the generality of the foregoing, nothing in the Report is to be construed as CRISIL Ratings providing or intending to
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latest rating information on any instrument of any company rated by CRISIL Ratings you may contact CRISIL RATING DESK at
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CRISIL Ratings uses the prefix ‘PP-MLD’ for the ratings of principal-protected market-linked debentures (PPMLD) with effect from November 1,
2011 to comply with the SEBI circular, "Guidelines for Issue and Listing of Structured Products/Market Linked Debentures". The revision in rating
symbols for PPMLDs should not be construed as a change in the rating of the subject instrument. For details on CRISIL Ratings' use of 'PP-MLD'
please refer to the notes to Rating scale for Debt Instruments and Structured Finance Instruments at the following link:
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 Rating Rationale
March 31, 2021 | Mumbai

West Wind Retails Private Limited

Rating reaffirmed at 'CRISIL BB / Stable'

Rating Action
Total Bank Loan Facilities Rated Rs.11 Crore
Long Term Rating CRISIL BB/Stable (Reaffirmed)
1 crore = 10 million
Refer to Annexure for Details of Instruments & Bank Facilities

Detailed Rationale
CRISIL Ratings has reaffirmed its ‘CRISIL BB/Stable’ rating on the long-term bank facilities of West Wind Retails Pvt. Ltd
(WWRPL).

The rating continues to reflect the diversified revenue model of the company with multiple exclusive brand outlets,
established relationships with suppliers, and a moderate financial risk profile because of above-average networth. These
strengths are partially offset by working capital-intensive operations and exposure to intense competition in the apparel retail
industry leading to modest operating margin.
Key rating drivers & detailed description
Strengths:
Diversified revenue model
The company has established strong relationships with principals within a short span of time. It has a nine-year franchisee
agreement for all north Indian states; however, most of the stores are located in Delhi and the National Capital Region. The
company also benefits from the diversified product line of its principals. Levi’s deals in clothing, majorly denim, while Adidas
offers sports accessories, chiefly shoes; Celio offer multiple products such as apparel and footwear.

Moderate financial risk profile

Networth was healthy at Rs 21.80 crore and gearing was above average at 1.01 times, as on March 31, 2020. Debt
protection metrics were also robust, with interest coverage and net cash accrual to total debt ratios of 4.14 times and 0.31
time, respectively, for fiscal 2020.

Weaknesses:
Working capital-intensive operations
Gross current assets (GCAs) were high at 142 days as on March 31, 2020, due to large inventory of 100-138 days as the
company caters to various sizes and models of different brands through multiple stores. High working capital intensity leads
to negative cash flow from operations.

Modest operating margin

Operating profitability has remained 6-7% in the three fiscals ended March 31, 2020. Margin will continue to be subdued
over the medium term.
Liquidity: Adequate
Bank limit utilisation was moderate at around 85.57% for the 12 months through December 2020 because of large working
capital requirement. Cash accrual is expected to be Rs 6-6.5 crore per fiscal against minimal term debt obligation, over the
medium term. The company had also availed of a guaranteed emergency credit line facility of Rs 2.32 crore to support
liquidity. Current ratio was low at 0.94 time on March 31, 2020.
Outlook: Stable
The company will continue to benefit over the medium term from its established relationships with key suppliers and a
diversified revenue profile.
Rating sensitivity factors
Upward factors
Sustainable increase in revenue to Rs 175-180 crore while maintaining profitability
Prudent working capital management leading to lower bank limit utilisation and improvement in GCAs to less than
90 days
Sustainability in operating margin

Downward factors
Incremental working capital requirement resulting in higher bank limit utilisation
Decline in operating margin to less than 5%
Decrease in scale of operations
About the company
Established in March 2009 by Mr Rajeev Arora and his brother, Mr Ajay Arora, WWRPL is currently engaged in franchisee
retail for apparel and footwear brands such as Levi Strauss & Co, Adidas, and Celio. It currently operates 74 retail stores in
Haryana, Punjab, Uttar Pradesh, Uttarakhand, Delhi, and Chandigarh.
Key financial indicators
As on / for the period ended March 31 2020 2019
Operating income Rs crore 155.12 152.82
Reported profit after tax Rs crore 3.61 3.50
PAT margins % 2.33 2.29
Adjusted debt/adjusted networth Times 1.01 1.03
Interest coverage Times 4.14 4.37

Any other information: Not applicable

Note on complexity levels of the rated instrument:

CRISIL complexity levels are assigned to various types of financial instruments. The CRISIL complexity levels are available
on www.crisil.com/complexity-levels. Users are advised to refer to the CRISIL 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)

Rating
Name of Date of Coupon Rate Maturity Issue Size (Rs. Complexity
ISIN assigned with
instrument allotment (%) date Crore) Level
outlook
May CRISIL
NA Term Loan NA NA 2.1 NA
- 2022 BB/Stable
Cash CRISIL
NA NA NA NA 6.5 NA
Credit BB/Stable
Proposed
Long Term CRISIL
NA NA NA NA 2.4 NA
Bank Loan BB/Stable
Facility

Annexure - Rating History for last 3 Years

Start of
Current 2021 (History) 2020 2019 2018
2018
Outstanding
Instrument Type Rating Date Rating Date Rating Date Rating Date Rating Rating
Amount
Fund Based LT 11.0 CRISIL -- -- 04-12-19 CRISIL 26-02-18 CRISIL CRISIL
Facilities BB/Stable BB/Stable BB/Stable BB/Stable
-- -- -- 08-11-19 Withdrawn -- --
 CRISIL BB
-- -- -- 24-05-19 /Stable(Issuer -- --
Not
Cooperating)*
All amounts are in Rs.Cr.
* - Issuer did not cooperate; based on best-available information

Annexure - Details of various bank facilities

Current facilities Previous facilities
Amount Amount
Facility Rating Facility Rating
(Rs.Crore) (Rs.Crore)
CRISIL CRISIL
Cash Credit 6.5 Cash Credit 6.5
BB/Stable BB/Stable
Proposed Long Term CRISIL Proposed Long Term CRISIL
2.4 2.4
Bank Loan Facility BB/Stable Bank Loan Facility BB/Stable
CRISIL CRISIL
Term Loan 2.1 Term Loan 2.1
BB/Stable BB/Stable
Total 11 - Total 11 -

Links to related criteria

CRISILs Approach to Financial Ratios
Rating criteria for manufaturing and service sector companies
CRISILs Bank Loan Ratings - process, scale and default recognition
Assessing Information Adequacy Risk
Rating Criteria for Retailing Industry
The Rating Process
CRISILs Bank Loan Ratings

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About CRISIL Ratings Limited

CRISIL Ratings pioneered the concept of credit rating in India in 1987. With a tradition of independence, analytical rigour and
innovation, we set the standards in the credit rating business. We rate the entire range of debt instruments, such as, bank loans,
certificates of deposit, commercial paper, non-convertible / convertible / partially convertible bonds and debentures, perpetual
bonds, bank hybrid capital instruments, asset-backed and mortgage-backed securities, partial guarantees and other structured
debt instruments. We have rated over 33,000 large and mid-scale corporates and financial institutions. We have also instituted
several innovations in India in the rating business, including rating municipal bonds, partially guaranteed instruments and
infrastructure investment trusts (InvITs).

CRISIL Ratings Limited ("CRISIL Ratings") is a wholly-owned subsidiary of CRISIL Limited ("CRISIL"). CRISIL Ratings Limited is
registered in India as a credit rating agency with the Securities and Exchange Board of India ("SEBI").

For more information, visit www.crisil.com/ratings

About CRISIL Limited

CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services. We are India's leading
ratings agency. We are also the foremost provider of high-end research to the world's largest banks and leading corporations.

CRISIL is majority owned by S&P Global Inc., a leading provider of transparent and independent ratings, benchmarks, analytics
and data to the capital and commodity markets worldwide

For more information, visit www.crisil.com

Connect with us: TWITTER | LINKEDIN | YOUTUBE | FACEBOOK

CRISIL PRIVACY NOTICE

CRISIL respects your privacy. We may use your contact information, such as your name, address, and email id to fulfil your request and service your
account and to provide you with additional information from CRISIL.For further information on CRISIL’s privacy policy please visit www.crisil.com.

DISCLAIMER

This disclaimer forms part of and applies to each credit rating report and/or credit rating rationale (each a "Report") that is provided by CRISIL Ratings Limited
(hereinafter referred to as "CRISIL Ratings") . For the avoidance of doubt, the term "Report" includes the information, ratings and other content forming part of the
Report. The Report is intended for the jurisdiction of India only. This Report does not constitute an offer of services. Without limiting the generality of the foregoing,
nothing in the Report is to be construed as CRISIL Ratings providing or intending to provide any services in jurisdictions where CRISIL Ratings does not have the
necessary licenses and/or registration to carry out its business activities referred to above. Access or use of this Report does not create a client relationship between
CRISIL Ratings and the user.

We are not aware that any user intends to rely on the Report or of the manner in which a user intends to use the Report. In preparing our Report we have not taken
into consideration the objectives or particular needs of any particular user. It is made abundantly clear that the Report is not intended to and does not constitute an
investment advice. The Report is not an offer to sell or an offer to purchase or subscribe for any investment in any securities, instruments, facilities or solicitation of
any kind or otherwise enter into any deal or transaction with the entity to which the Report pertains. The Report should not be the sole or primary basis for any
investment decision within the meaning of any law or regulation (including the laws and regulations applicable in the US).

Ratings from CRISIL Ratings are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell
any securities / instruments or to make any investment decisions. Any opinions expressed here are in good faith, are subject to change without notice, and are only
current as of the stated date of their issue. CRISIL Ratings assumes no obligation to update its opinions following publication in any form or format although CRISIL
Ratings may disseminate its opinions and analysis. Rating by CRISIL Ratings contained in the Report is not a substitute for the skill, judgment and experience of the
user, its management, employees, advisors and/or clients when making investment or other business decisions. The recipients of the Report should rely on their own
judgment and take their own professional advice before acting on the Report in any way. CRISIL Ratings or its associates may have other commercial transactions
with the company/entity.

Neither CRISIL Ratings nor its affiliates, third party providers, as well as their directors, officers, shareholders, employees or agents (collectively, "CRISIL Ratings
Parties") guarantee the accuracy, completeness or adequacy of the Report, and no CRISIL Ratings Party shall have any liability for any errors, omissions, or
interruptions therein, regardless of the cause, or for the results obtained from the use of any part of the Report. EACH CRISIL RATINGS' PARTY DISCLAIMS ANY
AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY, SUITABILITY OR FITNESS
FOR A PARTICULAR PURPOSE OR USE. In no event shall any CRISIL Ratings Party be liable to any party for any direct, indirect, incidental, exemplary,
compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and
opportunity costs) in connection with any use of any part of the Report even if advised of the possibility of such damages.

CRISIL Ratings may receive compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of the instruments, facilities,
securities or from obligors. CRISIL Rating's public ratings and analysis as are required to be disclosed under the regulations of the Securities and Exchange Board of
India (and other applicable regulations, if any) are made available on its web sites, www.crisil.com (free of charge). Reports with more detail and additional
information may be available for subscription at a fee - more details about ratings by CRISIL Ratings are available here: www.crisilratings.com.
CRISIL Ratings and its affiliates do not act as a fiduciary. While CRISIL Ratings has obtained information from sources it believes to be reliable, CRISIL Ratings does
not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives and / or relies in its Reports. CRISIL Ratings
has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process. CRISIL
Ratings has in place a ratings code of conduct and policies for analytical firewalls and for managing conflict of interest. For details please refer to:
http://www.crisil.com/ratings/highlightedpolicy.html

Rating criteria by CRISIL Ratings are generally available without charge to the public on the CRISIL Ratings public web site, www.crisil.com. For latest rating
information on any instrument of any company rated by CRISIL Ratings you may contact CRISIL RATING DESK at CRISILratingdesk@crisil.com, or at (0091) 1800
267 1301.

This Report should not be reproduced or redistributed to any other person or in any form without a prior written consent of CRISIL Ratings.

All rights reserved @ CRISIL Ratings Limited. CRISIL Ratings Limited is a wholly owned subsidiary of CRISIL Limited.

CRISIL Ratings uses the prefix ‘PP-MLD’ for the ratings of principal-protected market-linked debentures (PPMLD) with effect from November 1, 2011 to comply with
the SEBI circular, "Guidelines for Issue and Listing of Structured Products/Market Linked Debentures". The revision in rating symbols for PPMLDs should not be
construed as a change in the rating of the subject instrument. For details on CRISIL Ratiings' use of 'PP-MLD' please refer to the notes to Rating scale for Debt
Instruments and Structured Finance Instruments at the following link: www.crisil.com/ratings/credit-rating-scale.html