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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Non Convertible Debentures (NCD) | 270.00 | ACUITE D | Reaffirmed | - |
| Non Convertible Debentures (NCD) | 30.00 | Not Applicable | Withdrawn | - |
| Total Outstanding Quantum (Rs. Cr) | 270.00 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 30.00 | - | - |
| Rating Rationale |
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Acuite has reaffirmed the long-term rating of ‘ACUITE D’ (read as ACUITE D) on the Rs. 270.00 crore-bank Non-convertible Debentures (NCD's) of Arya Capital Management Private Limited (ACMPL). Acuite has also withdrawn its rating on Rs.30.00 Proposed Non-Convertible Debentures (NCD's) on account of the request received from the company.
The rating reaffirmation is in view of continued delays in servicing of debt repayment obligation. |
| About the Company |
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ACMPL was incorporated in 2007 and is promoted by Dhawan Trust and Mr.Arjun Dhawan is the Trustee of the Trust. ACMPL is member of promoter group company of Hindustan Construction Company (HCC). Mr. Arjun Dhawan is an Executive Vice chairman of HCC Ltd. HCC did a rights issue of equity shares primarily for funding the working capital requirements of HCC. The proceeds of the NCDs issued were deployed for subscribing to the said rights issue of HCC.
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| Analytical Approach |
| Acuité has considered the standalone business and financial risk profiles of ACMPL to arrive at this rating. |
Key Rating Drivers
| Strengths |
| Experienced management
ACMPL is promoted by Dhawan Trust. Mr. Dhawan is the Trustee of the Dhawan Trust which holds 99.99 per cent stake in the ACMPL and is an Executive Vice Chairman of HCC Ltd. ACMPL is member of promoter Group Company of HCC. HCC is one of the large construction companies in India and is engaged in construction activities which include roads, bridges, ports, power stations, water supply and irrigation projects. The company’s construction capabilities include solutions for construction of projects in various complex industries including hydel power, water solution systems, nuclear power and process plants and transportation. |
| Weaknesses |
| Delays in servicing of debt obligations
ACMPL on December 13, 2018, had issued 2700 7% secured rated listed redeemable non-convertible debentures ( |
| Rating Sensitivities |
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| All Covenants |
| Not Applicable |
| Liquidity Position |
| Poor |
| ACMPL's liquidity is poor on account of continuous default in repayment obligations. |
| Outlook: Not Applicable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 23 (Actual) | FY 22 (Actual) |
| Operating Income | Rs. Cr. | 384.20 | 3.00 |
| PAT | Rs. Cr. | 92.74 | (48.54) |
| PAT Margin | (%) | 24.14 | (1618.09) |
| Total Debt/Tangible Net Worth | Times | (0.08) | (4.01) |
| PBDIT/Interest | Times | 3.40 | 0.30 |
| Status of non-cooperation with previous CRA (if applicable) |
| Not Applicable |
| Any other information |
| Not Applicable |
| Applicable Criteria |
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• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Service Sector: https://www.acuite.in/view-rating-criteria-50.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.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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