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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Non Convertible Debentures (NCD) | 160.00 | Provisional | ACUITE C | Reaffirmed | Issuer not co-operating* | - |
| Total Outstanding Quantum (Rs. Cr) | 160.00 | - | - |
| Rating Rationale |
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Acuite has reaffirmed its long term rating of 'ACUITE Provisional C' (read as Acuite Provisional C) on the Rs.160 crore of Proposed Non-Convertible Debentures of the Balaji Cars Private Limited(BCPL). The rating is now an indicative rating and is based on best available information. The rating on the proposed Rs. 160.00 Cr NCDs is provisional and the final rating is subject to the following documentation requirements: 1. Receipt of the executed trust deed. 2. Receipt of the final term sheet and confirmation from the trustee regarding compliance with all the terms and conditions. |
| About the Company |
| BCPL is a Mumbai based company incorporated in the year 2002. The company until 2015-16 was an authorized automobile dealer of Tata Motors. BCPL is promoted by Mr. Shysunder Bhagwanram Jangid. In FY2022, BCPL entered into a development management agreement with Ashar Group to construct a mixed-use real estate project at Thane, near Ghodbunder road. The project construction is expected to commence in June 2022 with total estimated project cost of Rs. 682 Cr. Further, the project has a total saleable area of 4.49 lakh sq. ft, of which 3.94 lakh is allocated for residential, 0.40 lakh towards commercial and the rest for retail. |
| 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 noncooperation 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 |
| 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. |
| Rating Sensitivities |
| No information provided by the issuer / available for Acuite to comment upon. |
| Material Covenants |
| None |
| 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 21 (Actual) | FY 20 (Actual) |
| Operating Income | Rs. Cr. | 0.00 | 0.00 |
| PAT | Rs. Cr. | (1.31) | (1.57) |
| PAT Margin | (%) | 0.00 | 0.00 |
| Total Debt/Tangible Net Worth | Times | (2.46) | (2.60) |
| PBDIT/Interest | Times | (145.10) | 0.00 |
| Status of non-cooperation with previous CRA |
| Not Applicable |
| Any other information |
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Acuite is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and followups.
Supplementary disclosures for Provisional Ratings A. Risks associated with the provisional nature of the credit rating: 1. Lack of third party monitoring of compliance in absence of executed trust deed and no finalized terms in absence of final term sheet 2. In case there are material changes in the terms of the transaction after the initial assignment of the provisional rating and post the completion of the issuance (corresponding to the part that has been issued) Acuite will withdraw the existing provisional rating and concurrently, assign a fresh final rating in the same press release, basis the revised terms of the transaction. B. Rating that would have been assigned in absence of the pending steps/documentation: The rating would be equated to the standalone rating of the entity: ACUITE C C. Timeline for conversion to Final Rating for a debt instrument proposed to be issued: The provisional rating shall be converted into a final rating within 90 days from the date of issuance of the proposed debt instrument. Under no circumstance shall the provisional rating continue upon the expiry of 180 days from the date of issuance of the proposed debt instrument. |
| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Real Estate Entities: https://www.acuite.in/view-rating-criteria-63.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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