Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 13.63 ACUITE BB | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 4.32 - ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 17.95 - -
Total Withdrawn Quantum (Rs. Cr) 0.00 - -
 
Rating Rationale
­Acuité has downgraded the long term rating to ACUITE BB (read as ACUITE double B ) from ‘ACUITE BB+’ (read as ACUITE double B plus) and reaffirmed the short term rating of ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs. 17.95 cr. bank facilities of Abellon Clean Energy Limited (ACEL). This rating is now an indicative rating and is based on best available information. 
The rating has been downgraded on account of information risk.

About the Company
­Abellon Clean Energy Limited (ACEL) is a Gujarat based company and was incorporated in 2008 by Mr. Aditya Handa. The company along with its SPVs are engaged into clean energy generation through focus on bio-energy which includes bio-fuel and bio-power. ACEL has 12 different projects which are housed in different SPVs. The business segment of the company involves Solar EPC (installation of solar roof top, solar panels and modules for residential households). The SPVs of the company is involved in greenfield projects w.r.t waste to energy wherein plastic waste recycling is done under Swach Bharat Mission. The SPVs are also involved generating power through compressed bio gas. The company has undertaken the design and project monitoring (EPC) for the set-up of plants in SPV. ACEL had also been involved in supplying of biomass to SPVs through bulk purchases at relatively lower price on behalf of SPVs rather. The company have not made any purchases from Sept 2020- till date, due to halt in operations of plant across all SPVs. 
 
Non-cooperation by the issuer/borrower
Acuité has been requesting for No Default Statements (NDS); however, despite multiple requests; the Company’s management has remained non-cooperative and not submitted the NDS for the preceding 06 consecutive months. Acuité has also 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.
 
Limitation regarding information availability
­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 rating is based.
 
Rating Sensitivities
"No information provided by the issuer / available for Acuite to comment upon." 
 
Material Covenants
­None
 
Liquidity Position
­"No information provided by the issuer / available for Acuite to comment upon." 
 
Outlook
­Not Applicable
 
Key Financials:
­The rated entity has not shared the latest financial statements despite repeated requests
 
Status of non-cooperation with previous CRA
Brickworks vide its press release dated 04.07.2022, downgraded ACEL to BWR BB-; INC.
 
Any other information
­Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups
 
Applicable Criteria
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Trading Entitie: https://www.acuite.in/view-rating-criteria-61.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.
 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
28 Oct 2021 Proposed Bank Facility Long Term 13.63 ACUITE BB+ | Stable (Downgraded from ACUITE BBB (CE) | Stable)
Letter of Credit Short Term 4.32 ACUITE A4+ (Downgraded from ACUITE A3+ (CE))
Cash Credit Long Term 6.00 ACUITE BB+ (Withdrawn)
Secured Overdraft Long Term 0.55 ACUITE BB+ (Withdrawn)
Cash Credit Long Term 3.50 ACUITE BB+ (Withdrawn)
14 Aug 2020 Proposed Bank Facility Long Term 13.63 ACUITE BBB (CE) | Stable (Assigned)
Cash Credit Long Term 3.50 ACUITE BBB (CE) | Stable (Assigned)
Letter of Credit Short Term 4.32 ACUITE A3+ (CE) (Assigned)
Secured Overdraft Long Term 0.55 ACUITE BBB (CE) | Stable (Assigned)
Cash Credit Long Term 6.00 ACUITE BBB (CE) | Stable (Assigned)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Central Bank of India Not Applicable Letter of Credit Not Applicable Not Applicable Not Applicable 4.32 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Not Applicable Not Applicable Proposed Long Term Bank Facility Not Applicable Not Applicable Not Applicable 13.63 Simple ACUITE BB | Downgraded | Issuer not co-operating*

Contacts
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