Press Release

Press Release

September 19, 2024

P N WRITER AND COMPANY PRIVATE LIMITED
Rating Downgraded and Withdrawn

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	6.41	ACUITE C \| Downgraded	-
Bank Loan Ratings	8.59	Not Applicable \| Withdrawn	-
Total Outstanding	6.41	-	-
Total Withdrawn	8.59	-	-

Rating Rationale

Acuité has downgraded the long-term rating to ‘ACUITE C’ (read as ACUITE C) from ‘ACUITE B’ (read as ACUITE B) for the Rs. 6.41 Cr. bank facilities of P N Writer and Company Private Limited (PNWCPL).
Acuité has withdrawn its long-term rating on the bank facilities of Rs. 8.59 Cr. of P N Writer and Company Private Limited (PNWCPL) without assigning any rating as the instrument is fully repaid. The rating has been withdrawn on Acuite's policy of withdrawal of ratings as applicable to the respective instrument/facility. The rating has been withdrawn on account of the request received from the company, and the NDC (No Due Certificate) received from the banker.

Rationale for Rating
The downgrade is based on delay in servicing of term loan obligation by the company in the month of August 2024 as reflected in the term loan account statement.

About the Company

Incorporated in 1987, P N Writer and Company Private Limited (PNWCPL) is a Mumbai based Writer Group company, which is engaged in diversified businesses such as relocation services, information and records management services, cash management services and hospitality. The company owns residential premises, offices and warehouses for which it collects rent.
Current directors of the company are Mr. Denzil Desouza, Mr. Gavin Desouza and Mr. S R Iyer.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profiles of P N Writer And Company Private Limited to arrive at the rating.

Key Rating Drivers

Strengths

Established track record with professional and experienced management
Incorporated in 1987, PNWCPL is Writer group company, which is into business of renting property and collecting brand fee income from Writer Business Services. The group was established in 1957 and over the years the company has become as significant player in Realty, Relocation services, information Management and cash management services etc. The current management led by Mr. D Denzil Desouza has over four decades of experience in the business.
Acuite believes that PNWCPL shall continue to benefit from its established track record of operations and experienced management in near to medium term.

Weaknesses

Instance of delay in servicing of debt obligations
The company has delayed in servicing of debt obligation in a term loan facility availed by the company in August, 2024 as per the term loan account statement.

Rating Sensitivities

Timely servicing of debt obligation

Liquidity Position

Poor

The liquidity position is marked poor due to instance of delay in servicing of a term loan obligation.

Outlook: Not Applicable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 23 (Actual)	FY 22 (Actual)
Operating Income	Rs. Cr.	23.67	11.98
PAT	Rs. Cr.	4.86	1.01
PAT Margin	(%)	20.54	8.45
Total Debt/Tangible Net Worth	Times	0.25	0.28
PBDIT/Interest	Times	2.52	1.27

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

Not Applicable

Any other information

None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Rating Process and Timeline: https://www.acuite.in/view-rating-criteria-67.htm
• Service Sector: https://www.acuite.in/view-rating-criteria-50.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

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
20 Feb 2024	Dropline Overdraft	Long Term	6.41	ACUITE B \| Stable (Assigned)
20 Feb 2024	Term Loan	Long Term	8.59	ACUITE B \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Kotak Mahindra Bank	Not avl. / Not appl.	Dropline Overdraft	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	6.41	Simple	ACUITE C \| Downgraded ( from ACUITE B )
Kotak Mahindra Bank	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	16 May 2027	8.59	Simple	Not Applicable\|Withdrawn

Contacts

Analytical Details	Contact Details
Mohit Jain Senior Vice President - Rating Operations Tel: 022–49294017 mohit.jain@acuite.in Akshit Agrawal Associate Analyst - Rating Operations Tel: 022-49294065 akshit.agrawal1@acuite.in	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in Tel: 022-49294011 rating.desk@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.