Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 16.00 ACUITE B- | Downgraded | Issuer not co-operating* -
Total Outstanding 16.00 - -
Total Withdrawn 0.00 - -
* The issuer did not co-operate; based on best available information.
 
Rating Rationale

­Acuité has downgraded the long-term rating to 'ACUITE B-' (read as ACUITE B minus) from ‘ACUITE B’ (read as ACUITE B) on the Rs. 16.00 crore bank facilities of Atul Sharma. The rating continues to be flagged as “Issuer Not-Cooperating” and is downgraded on account of information risk.


About the Company

­Established in 1998, Tamil Nadu based Atul Sharma (AS) commenced excavation and trading of granitesthrough Peethambaram Stones. Later in 2008, it started its wind power project and later in 2013, it came up with its solar power project. The firm currently has two wind power project with a cumulative installed capacity of 3800 KW. It supplies to Tamil Nadu Generation & Distribution Corporation Limited (three plants of 800 KW each) and Gujarat Urja Vikas Nigam Limited (two plants of 800 KW & 600 KW each) respectively. Further, the firm also has three solar power projects with a cumulative installed capacity of 4.25 MW. It supplies to the Pratibha Syntex Limited from the 1MW project at Berachah, MP, H&R Johnson (India) (a division of Prism Cement Limited) from the 1.25 MW project at Baroda, MP and Daawat Foods Limited from the 2MW project at Mandsaur, MP. The firm has entered into separate Power Purchase Agreements with these entities and distribute through M.P. State Electricity Board. The firm benefitsfrom the extensive experience of its proprietor, Mr. Atul Sharma.

 
Unsupported Rating
­Not Applicable
 
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 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
Rating Sensitivity
­"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 17 (Actual) FY 16 (Actual)
Operating Income Rs. Cr. 20.15 17.19
PAT Rs. Cr. (1.18) 2.21
PAT Margin (%) (5.88) 12.85
Total Debt/Tangible Net Worth Times 0.32 0.14
PBDIT/Interest Times 8.24 7.78
Status of non-cooperation with previous CRA
­Not Applicable
 
Any other information
None­
 
Applicable Criteria
• Service Sector: https://www.acuite.in/view-rating-criteria-50.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

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
27 Jun 2024 Term Loan Long Term 6.00 ACUITE B (Downgraded & Issuer not co-operating* from ACUITE B+)
Term Loan Long Term 7.00 ACUITE B (Downgraded & Issuer not co-operating* from ACUITE B+)
Proposed Long Term Bank Facility Long Term 3.00 ACUITE B (Downgraded & Issuer not co-operating* from ACUITE B+)
03 Apr 2023 Proposed Long Term Bank Facility Long Term 3.00 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 6.00 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 7.00 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
13 Jan 2022 Term Loan Long Term 6.00 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 7.00 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
Proposed Long Term Bank Facility Long Term 3.00 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
* The issuer did not co-operate; based on best available information.
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.00 Simple ACUITE B- | Downgraded | Issuer not co-operating* ( from ACUITE B )
Punjab National Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 6.00 Simple ACUITE B- | Downgraded | Issuer not co-operating* ( from ACUITE B )
Saraswat Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 7.00 Simple ACUITE B- | Downgraded | Issuer not co-operating* ( from ACUITE B )
* The issuer did not co-operate; based on best available information.

Disclosure of list of non-cooperative issuers
• Listed :- https://www.acuite.in/Non-Cooperative_Issuer_Listed.php
• Unlisted :- https://www.acuite.in/Non-Cooperative_Issuer_Unlisted.php


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