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Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
Bank Loan Ratings | 8.00 | ACUITE B | Reaffirmed | Issuer not co-operating* | - |
Bank Loan Ratings | 15.00 | - | ACUITE A4 | Reaffirmed | Issuer not co-operating* |
Total Outstanding Quantum (Rs. Cr) | 23.00 | - | - |
Rating Rationale |
Acuité has reaffirmed the long-term rating of ‘ACUITE B’ (read as ACUITE B) and reaffirmed the short term rating of ‘ACUITE A4’ (read as ACUITE A four) on the Rs.23.00 Cr. bank facilities of Balaji Industrial and Agricultural Castings Private Limited. The rating is being flagged as an ‘Issuer Not-Cooperating’ based on the best available information. |
About the Company |
Hyderabad based Balaji Industrial and Agricultural Castings Private Limited (Balaji) was established in 1978 by Mr Padmanabhayya as a partnership firm. In 2013, it was converted into a private limited company. Balaji is engaged in construction activities for various Government Departments of State of Andhra Pradesh, Telangana, Tamil Nadu, Bihar, among others. They are mainly into construction and implementation of water supply projects, construction of canals and other civil works. It was initially engaged in the installation of hand pumps, construction of roads, buildings and construction of canals among others |
About the Group |
Sai Babuji Projects Private Limited (Babuji) is a Telangana-based entity incorporated in the year 2011 by Mr. M. Sreekanth and his family. It is engaged in supply, installation and commissioning of solar water pumping systems under rural water supply schemes in Andhra Pradesh. |
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. |
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 has 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 Acuité to comment upon |
Material Covenants |
Not Applicable. |
Liquidity Position |
No information provided by the issuer/available for Acuité to comment upon. |
Outlook |
Not Applicable. |
Other Factors affecting Rating |
Not Applicable. |
Particulars | Unit | FY 22 (Actual) | FY 21 (Actual) |
Operating Income | Rs. Cr. | 18.68 | 8.07 |
PAT | Rs. Cr. | 0.73 | 0.21 |
PAT Margin | (%) | 3.93 | 2.63 |
Total Debt/Tangible Net Worth | Times | 0.32 | 0.38 |
PBDIT/Interest | Times | 2.39 | 1.41 |
Status of non-cooperation with previous CRA |
Not Applicable |
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. |
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Contacts |
Analytical | Rating Desk |
About Acuité Ratings & Research |
Acuité Ratings & Research Limited | www.acuite.in |