Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 7.00 ACUITE BB+ | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 44.00 - ACUITE A4+ | Downgraded | Issuer not co-operating*
Total Outstanding 51.00 - -
 
Rating Rationale

­Acuite has downgraded its long-term rating to 'Acuite BB+ (read as Acuite double B plus)' from 'Acuite BBB-(read as Acuite triple B minus)' and short-term rating to 'Acuite A4+(read as Acuite A four plus)' from 'Acuite A3(read as Acuite A three)' on Rs.51.00 Cr. bank facilties of BMS Projects. The downgrade is on account of information risk. This rating is now an indicative rating as client has not submitted No Default Statement (NDS) for the past 3 months.

About the Company
­Established in 2014, BMS Projects is a partnership firm managed by Mr. Bhupesh Somani and Mr. Manish Somani. The firm undertakes construction works for roads and buildings majorly in Odisha and Chhattisgarh. BMSP is a registered Class I category contractor with P.W.D.
 
Unsupported Rating
­Not Applicable
 
Non-cooperation by the issuer/borrower
Acuité has been requesting for No Default Statements (NDS); however, despite multiple requests; the Company’s management has remained non-cooperative and not submitted the NDS for the preceding 03 consecutive months. 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 has endeavoured 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
 
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 23 (Provisional) FY 22 (Actual)
Operating Income Rs. Cr. 116.49 95.93
PAT Rs. Cr. 3.29 2.52
PAT Margin (%) 2.82 2.63
Total Debt/Tangible Net Worth Times 0.41 0.48
PBDIT/Interest Times 2.56 2.53
Status of non-cooperation with previous CRA
­Not Applicable
 
Any other information
­None
 
Applicable Criteria
• 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
• Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.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.
 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
12 Oct 2023 Cash Credit Long Term 5.50 ACUITE BBB- | Stable (Reaffirmed)
Cash Credit Long Term 1.50 ACUITE BBB- | Stable (Reaffirmed)
Bank Guarantee (BLR) Short Term 5.50 ACUITE A3 (Reaffirmed)
Bank Guarantee (BLR) Short Term 18.50 ACUITE A3 (Reaffirmed)
Bank Guarantee (BLR) Short Term 20.00 ACUITE A3 (Reaffirmed)
27 Jul 2022 Bank Guarantee (BLR) Short Term 18.50 ACUITE A3 (Reaffirmed)
Bank Guarantee (BLR) Short Term 5.50 ACUITE A3 (Assigned)
Bank Guarantee (BLR) Short Term 20.00 ACUITE A3 (Assigned)
Cash Credit Long Term 5.50 ACUITE BBB- | Stable (Reaffirmed)
Cash Credit Long Term 1.50 ACUITE BBB- | Stable (Assigned)
30 Jun 2022 Bank Guarantee (BLR) Short Term 18.50 ACUITE A3 (Upgraded from ACUITE A4+)
Cash Credit Long Term 5.50 ACUITE BBB- | Stable (Upgraded from ACUITE BB+ | Stable)
07 Jun 2022 Cash Credit Long Term 5.50 ACUITE BB+ | Stable (Upgraded from ACUITE BB-)
Bank Guarantee (BLR) Short Term 18.50 ACUITE A4+ (Reaffirmed)
17 Aug 2021 Cash Credit Long Term 5.00 ACUITE BB- (Downgraded & Issuer not co-operating* from ACUITE BB)
Bank Guarantee (BLR) Short Term 19.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
HDFC Bank Ltd Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.50 Simple ACUITE A4+ | Downgraded | Issuer not co-operating* ( from ACUITE A3 )
HDFC Bank Ltd Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 18.50 Simple ACUITE A4+ | Downgraded | Issuer not co-operating* ( from ACUITE A3 )
Axis Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 20.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating* ( from ACUITE A3 )
HDFC Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.50 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB- )
Axis Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.50 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB- )

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