Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 7.00 ACUITE B | Reaffirmed | Issuer not co-operating* -
Bank Loan Ratings 18.00 - ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 25.00 - -
 
Rating Rationale
­Acuité has reaffirmed the long-term rating of ‘ACUITE B’ (read as ACUITE B ) and the short-term rating of ‘ACUITE A4’ (read as ACUITE A four) on the Rs. 25.00 crore bank facilities of Armstrong (India) Constriction (AIC). The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.

About the Company
­Mumbai based Armstrong (India) Construction is a proprietorship concern, promoted by Mr. Raju Solanki. The firm was established in the year 1994. The firm primarily operates as a civil contractor for the contractor for the construction of roads, storm water drainage, sewerage projects and buildings. The firm caters to government entities like the BMC (Brihanmumbai Mahanagar Corporation) which is Mumbai’s city municipal corporation. AIC is a registered class 1-A contractor with PWD and AA grade contractor with BMC.
 
Non-cooperation by the issuer/borrower:
­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.
 
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 Sensitivity
" ­No information provided by the issuer / available for Acuite to comment upon."
 
All Covenants
­None
 
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 18 (Actual) FY 17 (Actual)
Operating Income Rs. Cr. 19.40 19.16
PAT Rs. Cr. 1.65 1.60
PAT Margin (%) 8.51 8.35
Total Debt/Tangible Net Worth Times 0.34 0.17
PBDIT/Interest Times 2.80 2.53
Status of non-cooperation with previous CRA
None
 
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
• Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.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
15 Jul 2022 Proposed Bank Facility Short Term 1.00 ACUITE A4 ( Issuer not co-operating*)
Cash Credit Long Term 7.00 ACUITE B ( Issuer not co-operating*)
Bank Guarantee Short Term 17.00 ACUITE A4 ( Issuer not co-operating*)
16 Apr 2021 Cash Credit Long Term 7.00 ACUITE B (Issuer not co-operating*)
Bank Guarantee Short Term 17.00 ACUITE A4 (Issuer not co-operating*)
Proposed Bank Facility Short Term 1.00 ACUITE A4 (Issuer not co-operating*)
15 Jan 2020 Cash Credit Long Term 7.00 ACUITE B (Downgraded and Issuer not co-operating*)
Bank Guarantee Short Term 17.00 ACUITE A4 (Issuer not co-operating*)
Proposed Bank Facility Short Term 1.00 ACUITE A4 (Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Bank of Maharashtra Not Applicable Bank Guarantee/Letter of Guarantee Not Applicable Not Applicable Not Applicable 17.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
Bank of Maharashtra Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 7.00 Simple ACUITE B | Reaffirmed | Issuer not co-operating*
Not Applicable Not Applicable Proposed Short Term Bank Facility Not Applicable Not Applicable Not Applicable 1.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*

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