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Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
Bank Loan Ratings | 1404.00 | ACUITE D | Reaffirmed | - |
Total Outstanding | 1404.00 | - | - |
Rating Rationale |
Acuité has reaffirmed its long-term rating of 'ACUITE D' (read as ACUITE D) to the Rs.1404.00 Cr. bank facilities of Abhishek Propbuild Private Limited(APPL). |
About the Company |
Bangalore based, Abhishek Propbuild Private Limited (APPL) was incorporated in 2017, and directed by Mr. Thippareddygari Harikrishna Reddy, and Mr. Mohankumar Singapura Jayanna . The company is engaged in real estate activities. APPL is a subsidiary of Mantri Developers Private Ltd and is part of Mantri Group. APPL operates a commercial complex named as 'Mantri Square mall' located at Malleshwaram, Bangalore. Total area of the building is 8.75 Lakhs Sq.ft and leased out to various tenants. |
Unsupported Rating |
Not Applicable |
Analytical Approach |
Acuite has considered standalone business and financial risk profile of Abhishek Propbuilt Private Ltd(APPL) to arrive at the rating. |
Key Rating Drivers |
Strengths |
Experienced management and established track record in real estate |
Weaknesses |
Multiple instances of delays and irregularities in account conduct |
Rating Sensitivities |
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Liquidity Position : Poor |
The company’s liquidity position is poor marked by delays in debt servicing of its LRD loan. Company had net cash accruals (NCA’s) of Rs.28.08 Cr. as on March 31, 2023, which was insufficient to meet the debt repayment obligations of Rs.32.34 Cr. for the same period. Further, the company has defaulted in its repayments during the current fiscal. The latest default is reported in the month of June, 2024. The working capital cycle of APPL is intensive on account of high GCA (Gross Current Asset) days of 2675 in FY2023. Unencumbered cash and bank balances stood at Rs.1.96 Cr. as on March 31, 2023. |
Outlook: Not applicable |
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Other Factors affecting Rating |
None |
Particulars | Unit | FY 23 (Actual) | FY 22 (Actual) |
Operating Income | Rs. Cr. | 195.99 | 133.33 |
PAT | Rs. Cr. | 12.18 | 15.01 |
PAT Margin | (%) | 6.21 | 11.26 |
Total Debt/Tangible Net Worth | Times | 17.74 | 20.25 |
PBDIT/Interest | Times | 1.20 | 1.18 |
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 • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Real Estate Entities: https://www.acuite.in/view-rating-criteria-63.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 |
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About Acuité Ratings & Research |
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