Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 100.00 ACUITE BB+ | Downgraded | Issuer not co-operating* -
Total Outstanding Quantum (Rs. Cr) 100.00 - -
 
Rating Rationale
­Acuité has downgraded the long-term rating from ‘ACUITE BBB+’ (read as ACUITE triple B plus) to ACUITE BB+ (read as ACUITE double B plus) on the Rs.100.00 Cr. bank facilities (including proposed facilities) of Asrec India Limited (AIL). The rating continues to be an indicative rating and is based on the best available information.
This rating has been downgraded on account of information risk.

About the Company
­Mumbai based, Asrec India Limited (AIL) was incorporated in 2003. AIL is engaged in acquiring distressed assets from banks and financial institutions and resolving them through appropriate resolution strategies. The company is sponsored by prominent public sector banks and institutions. The Board comprised of eight members led by Mr. Girish Sharan Sinha, Managing Director and CEO of the company, the other members include the nominees from sponsor banks. The top management is supported by functional professionals expertised in areas pertaining to credit, recovery, and law.
 
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 non-cooperation by the issuer along with an 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.
 
Key Financials
Particulars Unit FY22 (Actual) FY21 (Actual)
Total Assets Rs. Cr. 258.48 293.52
Total Income* Rs. Cr. 53.52 43.06
PAT Rs. Cr. 20.37 11.99
Net Worth Rs. Cr. 186.95 165.70
Return on Average Assets (RoAA) (%) 7.38 4.83
Return on Average Net Worth (RoNW) (%) 11.55 7.49
Debt/Equity Times 0.17 0.45
*Total income equals Net Interest Income plus other income.
 
Rating Sensitivity
­No information provided by the issuer/available for Acuité to comment upon.
 
Material Covenants
­None
 
Liquidity Position
­No information provided by the issuer/available for Acuité to comment upon.
 
Outlook
­Not applicable
 
Other Factors affecting Rating
­None
 
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
• 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
• Asset Reconstruction Companies: https://www.acuite.in/view-rating-criteria-85.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. Acuité’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
14 Nov 2022 Secured Overdraft Long Term 10.00 ACUITE BBB+ (Downgraded and Issuer not co-operating*)
Term Loan Long Term 37.26 ACUITE BBB+ (Downgraded and Issuer not co-operating*)
Proposed Cash Credit Long Term 52.74 ACUITE BBB+ (Downgraded and Issuer not co-operating*)
16 Aug 2021 Secured Overdraft Long Term 10.00 ACUITE A- | Stable (Assigned)
Proposed Cash Credit Long Term 52.74 ACUITE A- | Stable (Reaffirmed)
Term Loan Long Term 37.26 ACUITE A- | Stable (Reaffirmed)
16 Oct 2020 Term Loan Long Term 37.26 ACUITE A- | Negative (Assigned)
Cash Credit Long Term 50.00 ACUITE A- (Withdrawn)
Proposed Cash Credit Long Term 62.74 ACUITE A- | Negative (Reaffirmed)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
State Bank of Mauritius Ltd Not Applicable External Commercial Borrowing Not Applicable Not Applicable Not Applicable 37.26 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
Not Applicable Not Applicable Proposed Cash Credit Not Applicable Not Applicable Not Applicable 52.74 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
State Bank of Mauritius Ltd Not Applicable Secured Overdraft Not Applicable Not Applicable Not Applicable 10.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*

Contacts
Analytical Rating Desk
About Acuité Ratings & Research
Acuité Ratings & Research Limitedwww.acuite.in