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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 2.54 | ACUITE BBB- | Stable | Reaffirmed | - |
| Total Outstanding | 2.54 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuite has reaffirmed the long-term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) on the Rs.2.54 Cr. bank facilities of Sherisha Rooftop Solar SPV Three Private Limited (SRSSTPL). The outlook is 'Stable'.
Rationale for rating The rating reaffirmation considers the long-standing experience of Refex group in renewable energy segment, presence of long term PPAs with multiple off takers, stable payment track record from its off takers, diversified customer base with nominal geographical concentration risk. Further, the rating also considers the presence of co-obligator structure and cash pooling mechanism for servicing of debt obligations. However, the rating remained constrained by moderate financial risk profile and susceptibility of power generation to climate risk. |
| About the Company |
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Tamil Nadu Based, Sherisha Rooftop Solar SPV Three Private Limited (SRSSTPL) was incorporated in 2019 as a special purpose vehicle for the limited purpose to develop, execute, manage and operate solar power generation project. It is promoted by Mr. Anil Jain, the company appointed the following directors: Mr. Patrik Vijay Kumar Francis Arun Kumar, Mr. Kalpesh Kumar and Mr. Thirunavukarasu Manikandan.
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| About the Group |
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Refex Group comprises of various solar SPVs, including Engender Developers Private Limited, Sherisha Rooftop Solar SPV Three Private Limited, Sherisha Solar SPV Two Private Limited and STPL Horticulture Private Limited. Directors of these SPVs are Mr. Patrik Vijay Kumar Francis Arun Kumar, Mr. Thirunavukarasu Manikandan, Mr. Maharshi Maitra,Mr.Saravanan Vasanthakumar, Mr. Kalpesh Kumar and Mr. Sachin Navtosh Jha. All the SPVs are engaged in developing, executing, managing and operating solar power projects at various locations.
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| Unsupported Rating |
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Not applicable
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| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuite has consolidated the business and financial risk profiles of Engender Developers Private Limited, STPL Horticulture Private Limited, Sherisha Rooftop Solar SPV Three Private Limited, and Sherisha Solar SPV Two Private Limited, referred to as the Refex Group-Solar SPVs (RGS). We have consolidated the cash flows of the four SPVs as there exists a co-obligator structure wherein through existence of separate TRA accounts maintained with the banker, all the proceeds / receivables / cash flows of the Project shall be routed. In case of any deficiency in debt servicing by any or multiple entities, the combined pool of cash flows will be utilized towards debt servicing.
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| Key Rating Drivers |
| Strengths |
| Extensive experience of the management and established presence in renewable energy segment
Refex group-Solar SPVs (RGS) comprises of four SPVs which are part of Refex group. These projects are ~99.99 per cent owned by Refex Green Power Limited and Sherisha Solar LLP wherein ultimate holding company is Refex Renewables & Infrastructure Ltd (RRIL, erstwhile SubEdison Infrastructure Limited), which is held 44 per cent by Refex Holding Private Limited (Erstwhile Sherisha Technologies Private Limited). Refex group is involved in business of Refrigerant Gases, Renewable Energy Utility Grade EPC projects, O&M of Solar Power Plants, Solar IPP businesses & Ash Disposal Management, Power Trading and Trading of Coal. Refex Group follows conservative approach towards its capital management and manages the operations majorly through equity and internal accruals. RGS entered into 25 years long term purchase power agreements (PPA) with around 71 off takers mitigating both demand and price risk associated with the projects. PLF of projects under the four SPVs remained in the range of 12 to 17 percent in FY25 (Prov.) and FY24. Since all the four SPVs are integral part of the Refex Group, it is expected to manage the O&M activity, which will ensure efficient operational metrics of the RGS. Acuité believes that the presence of strong management, assured off-take, a long-term PPA, and moderate counterparty receivable risk expected to keep the business risk profile stable over the medium term. Low geographical and customer concentration risks RGS has total installed capacity of 13.38 MWs installed across locations of 71 off takers with PPA arrangements for 25 years will all the off takers. Projects under RGS are spread across India depicting low geographical concentration risk. RGS off takers are mixture of both public and private entities depicting low customer concentration risk. Presence of DSRA and Co-obligator structure The bank facilities availed by RGS are backed by a Debt Service Reserve Account (DSRA) in the form of a fixed deposit, equivalent to two quarter's interest and principal and additional one quarter for servicing the debt obligation.. In addition, the bank facilities are supported by separate trust and retention account (TRA) for each SPV, through which all receipts from the SPVs shall be routed. Further, there is a cash sweep clause, which allows the lender to utilise the surplus amount in the TRA account towards the prepayment of the debt undertaken by the company. Furthermore, there is a co-obligator structure which allows to fill the shortfall in debt repayment in any of the SPV by other SPVs involved in the structure. In addition to above the ultimate holding company Refex Holding Private Limited (RHPL) extended its corporate guarantee to the debt availed by RGS. Acuité believes, the structure associated with the debt ensures timely repayment of the debt obligations over the medium term. |
| Weaknesses |
| Moderate financial risk profile
The financial risk profile of the RGS is moderate considering high gearing, moderate networth and coverage ratios. The gearing of the group stood high at 5.69 times as on March'25(Prov.) as against 5.11 times as on March'2024 and 6.01 times as on March’2023. The total debt of the group stood at Rs.38.90 Cr. as on March 31st 2025(Prov.) which consists of a long term debt of Rs.19.59 Cr, unsecured loans from promoters of Rs.18.22 Cr. and current portion of long term debt (CPLTD) of Rs.1.27 Cr. However, RGS's cash flows remain sufficient to meet its debt obligations, as evidenced by above unity average DSCR of 1.53 times during the tenure of the loan and the exercise of a cash sweep in prior years for prepayment of debt. Acuité believes that the financial risk profile of the company will remain moderate over the medium term on account of the stable operating performance of the solar plant over the years. Susceptibility of operating performance to climatic risks The performance of the solar plant is highly dependent on favourable climatic conditions, including solar radiation levels, which have a direct impact on the plant load factor (PLF). Acuité believes that the company’s business profile and financial profile can be adversely impacted by the presence of inherent climate risk and regulatory risk in any instances of tariff revision. In FY2025 (Prov.) the average plant load factor (PLF) declined to ~14.01 per cent as compared to ~14.47 per cent in FY2024. |
| Assessment of Adequacy of Credit Enhancement under various scenarios including stress scenarios (applicable for ratings factoring specified support considerations with or without the “CE” suffix) |
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RGS maintains a Debt Service Reserve Account (DSRA) equivalent to 2 quarters of principal and interest payments along with ESCROW mechanism. Stress case Scenario Acuité believes that, given the presence of 2 quarters of DSRA and waterfall payment in ESCROW mechanism, RGS will be able to service its debt on time, even in a stress scenario. |
| Rating Sensitivities |
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| Liquidity Position |
| Adequate |
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RGS liquidity is adequate marked by moderate generation of net cash accruals to its maturing debt obligations. The liquidity position of the company is adequately supported by presence of Trust and retention account to monitor the cash flows generated from the projects, presence of waterfall mechanism, presence of a Debt Service Reserve Account (DSRA), maintained in the form of fixed deposits, equivalent to two quarters plus an additional quarter of debt servicing obligations, covering both interest and principal repayments. The DSCR is expected to remain above unity with average DSCR at 1.53 times until the tenure of the loans.
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| Outlook: Stable |
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| Other Factors affecting Rating |
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None
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| Particulars | Unit | FY 25 (Provisional) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 6.68 | 6.11 |
| PAT | Rs. Cr. | (0.43) | (1.23) |
| PAT Margin | (%) | (6.50) | (20.08) |
| Total Debt/Tangible Net Worth | Times | 5.69 | 5.11 |
| PBDIT/Interest | Times | 1.44 | 1.28 |
| Status of non-cooperation with previous CRA (if applicable) |
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Not Applicable
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| Any Other Information |
| None |
| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm |
| Note on complexity levels of the rated instrument |
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| *Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||||
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