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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 3.00 | ACUITE BB+ | Downgraded | Issuer not co-operating* | - |
| Bank Loan Ratings | 110.00 | - | ACUITE A4+ | Downgraded | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 113.00 | - | - |
| Rating Rationale |
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Acuité has downgraded the long term rating to ‘ACUITE BB+’ (read as ACUITE double B plus) from ‘ACUITE BBB’ (read as ACUITE triple B) and the short term rating to ‘ACUITE A4+’ (read as ACUITE A four plus) from ‘ACUITE A3+’ (read as ACUITE A three plus) on the Rs.113 crore bank facilities of ADAM AND COAL RESOURCES PRIVATE LIMITED (ACRPL). This rating is now an indicative rating and downgraded on account of information risk.
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| About the Company |
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Incorporated in September 2004, Adam and Coal Resources Private Limited (ACRPL) is promoted by Mr. Tony Adam, the Managing Director. ACRPL is engaged in trading of steam coal and pet coke, wherein it imports coal from Singapore, Dubai, Indonesia, USA, among other countries and caters to customers located in India, primarily in the cement and the power industries. The company has a wholly-owned subsidiary, Adcoal Resources PTE Limited (ARPL), in Singapore, which is engaged in the same business.
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| 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. 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.
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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 |
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No information provided by the issuer / available for Acuite to comment upon.
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| All Covenants |
| Not applicable |
| Liquidity Position |
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No information provided by the issuer / available for Acuite to comment upon.
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| Outlook |
| Not applicable |
| Key Financials: |
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The entity has not shared the latest financial statement for Acuite to comment
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| Status of non-cooperation with previous CRA |
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ICRA vide its press release dated 23 March 2023, has mentioned the rating of ACRPL to ‘ICRA B+ (Stable)/ICRA A4’ (Reaffirmed & Issuer Not Cooperating).
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| Any other information |
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Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups.
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| 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 • Trading Entitie: https://www.acuite.in/view-rating-criteria-61.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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