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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 45.00 | ACUITE BB+ | Reaffirmed & Withdrawn | - |
| Total Outstanding Quantum (Rs. Cr) | 0.00 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 45.00 | - | - |
| Rating Rationale |
| Acuité has reaffirmed and withdrawn its long-term rating of ‘ACUITE BB+’ (read as ACUITE double B plus) on the Rs.45.00 Cr. bank facilities of A S Carriers Private Limited .The rating is being withdrawn on account of the request received from the company and the NOC received from the banker as per Acuité’s policy on withdrawal of ratings. |
| About the Company |
| Incorporated in 1993, A. S. Carriers Private Limited (ASCPL) is a Chennai based company promoted by Mr. Amar Rahman and his wife, Mrs. Shahana Rahman. The company is engaged in the business of construction and leasing activities. ASCPL has developed about 7.87 lakhs sq. ft. of which 5.17 lakh sq. ft is leased out as of August 2020. |
| Analytical Approach |
| Acuité has taken the standalone view of the business and financial risk profile of ASCPL to arrive at the rating. |
Key Rating Drivers
| Strengths |
| > Established track record and experienced management ASCPL’s promoters have over two decades of experience in developing and leasing properties. The extensive experience of the promoters along with its established track record of operations, is reflected through the long-term lease agreements with its reputed tenants. Over the years, the ASCPL has developed around 7.87 lakh square feet leasable area, across 3 locations. >Improving Sales and profitability A S Carriers Private Limited(ASCPL) has recorded improvement in its operating performance in FY2022, marking by a rise of 85.54% in its operating income. The lease rental revenue of ASPL stood at Rs.13.93 Cr in FY2022 as against Rs.7.51 Cr in FY2021. The operating margin of the firm rose to 83.51 percent in FY2022 as against 79.25 percent in FY2021. The PAT margin also improved to 22.18 percent in FY2022 as against 5.15 percent in FY2021. |
| Weaknesses |
| >Risks related to the timely renewal of lease contracts and susceptibility to lower occupancy due to economic downturns The revenues of the company are derived by way of rent from reputed corporates. The company ensures that credit quality is satisfactory. However, the counterparty risk is high in case of occurrence of any events such as changes in policy decisions by top management willing to continue their warehouse space. In the event of non-renewal by existing lessee, the future cash flows will be impacted thereby translating to weakening of debt protection indicators. However, this risk is partially mitigated by the long-term relationship with reputed tenant base will support the business profile and the same established in the past. |
| Rating Sensitivities |
| None |
| Material covenants |
| None |
| Liquidity Position |
| Adequate |
| The company generated Net Cash Accruals (NCA) of Rs.3.83 Cr In FY2022 as against maturing debt obligation of 1.10 Cr in the same period. The company maintained cash and bank balances of Rs.0.17 crore as on March 31,2022. The current ratio of the company is marked moderate as it stood at 2.05 times as on 31 March, 2022 as against 0.91 times as on 31 March, 2021. |
| Outlook |
| Not Applicable |
| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 22 (Actual) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 13.93 | 7.51 |
| PAT | Rs. Cr. | 3.09 | 0.39 |
| PAT Margin | (%) | 22.18 | 5.15 |
| Total Debt/Tangible Net Worth | Times | 0.66 | 0.66 |
| PBDIT/Interest | Times | 1.63 | 1.26 |
| Status of non-cooperation with previous CRA (if applicable) |
| None |
| Any other information |
| None |
| Applicable Criteria |
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• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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. |
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