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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 16.42 | ACUITE BB | Downgraded | Issuer not co-operating* | - |
| Bank Loan Ratings | 15.00 | - | ACUITE A4+ | Reaffirmed | Issuer not co-operating* |
| Total Outstanding | 31.42 | - | - |
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Rating Rationale |
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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 to 'ACUITE A4+' (read as ACUITE A four plus) on the Rs. 31.42 Cr. bank facilities of ACME Excellent Management Private Limited (AEMPL). The rating is now flagged as “Issuer Not-Cooperating” and is downgraded on account of information risk.
Rationale for downgrade The company has not been submitting the NDS for past three months. The last NDS submitted for February 2024. Acuité continuously followed up with the client, however issuer remained non-coperative. |
| About the Company |
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Delhi based, Acme Excellent Management Private Limited (AEMPL) was incorporated in 2012. The company is engaged in providing facility management services such as cleaning and sanitation, housekeeping, security and surveillance etc. The company has reputed clientele and caters to companies such as Delhi Metro Rail Corporation Limited, Directorate of Education in Delhi, Lucknow Metro, to name a few. AEMPL acquires business through tenders, the duration of which is a year for government agencies. Company is managed by Mr. Mahesh Jeena and Mr. Naveen Jeena who have decades of experience in the industry.
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| Unsupported Rating |
| Not Applicable |
| Non-cooperation by the issuer/borrower |
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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 03 consecutive months. 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 rating is based.
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| Rating Sensitivities |
| No information provided by the issuer / available for Acuite to comment upon. |
| Liquidity Position |
| No information provided by the issuer / available for Acuite to comment upon. |
| Outlook |
| Not Applicable. |
| Other Factors affecting Rating |
| None. |
| Particulars | Unit | FY 23 (Actual) | FY 22 (Actual) |
| Operating Income | Rs. Cr. | 84.26 | 101.39 |
| PAT | Rs. Cr. | 4.54 | 4.56 |
| PAT Margin | (%) | 5.39 | 4.50 |
| Total Debt/Tangible Net Worth | Times | 0.66 | 0.69 |
| PBDIT/Interest | Times | 3.32 | 4.03 |
| Status of non-cooperation with previous CRA |
| Not Applicable. |
| 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 • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Service Sector: https://www.acuite.in/view-rating-criteria-50.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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