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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 12.00 | ACUITE BB+ | Reaffirmed & Withdrawn | Issuer not co-operating* | - |
| Bank Loan Ratings | 5.00 | Not Applicable | Withdrawn | - |
| Bank Loan Ratings | 28.00 | - | ACUITE A4+ | Reaffirmed & Withdrawn | Issuer not co-operating* |
| Bank Loan Ratings | 10.00 | - | Not Applicable | Withdrawn |
| Total Outstanding | 0.00 | - | - |
| Total Withdrawn | 55.00 | - | - |
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Rating Rationale |
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Erratum: In the original PR dated December 8, 2023, the short term rating was not mentioned in the first paragraph, which has been rectified in this version of the PR.
Rating Rationale Acuité has reaffirmed and withdrawn the long term rating of ‘ACUITE BB+’ (read as ACUITE double B plus) and short term rating of ‘ACUITE A4+’ (read as ACUITE A four plus)on the Rs 40.00 Cr., and also withdrawn the long term and short term rating on the Rs15.00 Cr proposed bank facilities of Industrial Systems LLP. The rating is now flagged as “Issuer Not Cooperating” based on account of information risk. Acuité has received the withdrawal request from the Company because it does not want to continue the rating any further. A No Objection Certificate (NOC) for the same has been received from Federal Bank. The rating withdrawal is in accordance with Acuité’s policy on withdrawal of rating. However, the banker has provided their feedback that the conduct of the account is satisfactory. |
| About the Company |
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Assam-based, Industrial Systems LLP was established in the year of 2001 as a proprietorship concern and subsequently changed its constitution in April 2017. The firm is engaged in Government EPC and turnkey contractors and suppliers in North-East part of the country. Currently the firm is managed by the partners Mr. Ajay Bhoopal and Mr. Rajni Bhoopal.
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| Unsupported Rating |
| Not Applicable |
| Non-cooperation by the issuer/borrower |
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Acuité has been requesting for data, information and undertakings from the rated entity for conducting surveillance & review of the rating. However, the issuer/borrower failed to submit such information before the due date. Acuité believes that information risk is a critical component in such ratings, and noncooperation by the issuer along with unwillingness to provide information could be a sign of potential deterioration in its overall credit quality. This rating is, therefore, being flagged as “Issuer not-cooperating”, in line with prevailing SEBI regulations and Acuité’s policies
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| Limitation regarding information availability |
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The rating is based on information available from sources other than the issuer/borrower (in the absence of information provided by the issuer/borrower). Acuité endeavored to gather information about the entity/industry from the public domain. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit ratings based.
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| Rating Sensitivities |
| "No information provided by the issuer / available for Acuite to comment upon." |
| All Covenants |
| Not Applicable |
| Liquidity Position |
| "No information provided by the issuer / available for Acuite to comment upon." |
| Outlook |
| Not Applicable |
| Other Factors affecting Rating |
| Not Applicable |
| Particulars | Unit | FY 22 (Actual) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 150.43 | 30.42 |
| PAT | Rs. Cr. | 6.04 | 1.10 |
| PAT Margin | (%) | 4.02 | 3.63 |
| Total Debt/Tangible Net Worth | Times | 0.94 | 0.74 |
| PBDIT/Interest | Times | 4.92 | 4.21 |
| Status of non-cooperation with previous CRA |
| Not Applicable |
| Any other information |
| Acuite is yet to receive the latest No Default Statement from the rated entity despite repeated requests and followups. |
| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Complexity Level Of Financial Instruments: https://www.acuite.in/view-rating-criteria-55.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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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
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