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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Non Convertible Debentures (NCD) | 1600.00 | ACUITE C | Assigned | - |
| Total Outstanding | 1600.00 | - | - |
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Rating Rationale |
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Acuite has assigned it's long term rating of 'ACUITE C' (read as ACUITE C) on the Rs. 1600 Cr. Non Convertible Debentures of Century Joint Developments Private Limited (CJDPL).
Rationale for Rating
The rating assigned takes into account the established track record of promoters in the real estate development industry for more than two decade. However, the rating is constrained by delay in repayments of existing NCDs. |
| About the Company |
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Incorporated In 2010, Century Joint Developments Private Limited is a Bengaluru Based Company. The directors of the company are Mr. Mahesh Attur Prabhu and Mr. Udupi Vivekananda Nayak. It Is engaged in Residential, Commercial, Retail and Plot Developments.
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| Unsupported Rating |
| Not Applicable |
| Analytical Approach |
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Acuite has considered the standalone approach on the business and financial risk profile of Century Joint Developments Private Limited to arrive at rating.
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| Key Rating Drivers |
| Strengths |
| Experienced Promoters with established track record of operations
The company was incorporated in 2010. The directors of the company are Mr. Mahesh Attur Prabhu, Mr Udupi Vivekananda Nayak and others has experience of more than two decade in this line of business.
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| Weaknesses |
| High Dependence on refinancing for sustainability of operations
The company has liquidity issues due to delay in project construction, there have been delay in repayments of existing NCD's. In order to refinance its loan obligation, the company is planning to issue NCDs to repay the existing NCDs and complete the project. |
| Rating Sensitivities |
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Timely repayment of existing NCDs
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| Liquidity Position |
| Poor |
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The liquidity position is poor due to cashflows of the company being inadequate to service the repayment obligation. Hence, the company has delayed in its repayment of NCD. Timely collection of the receivables from the projects will be key monitorable for the assessment of liquidity position for the company.
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| Outlook |
| Not Applicable |
| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 24 (Provisional) | FY 23 (Actual) |
| Operating Income | Rs. Cr. | 54.51 | 70.71 |
| PAT | Rs. Cr. | (203.12) | (140.08) |
| PAT Margin | (%) | (372.62) | (198.11) |
| Total Debt/Tangible Net Worth | Times | (1.67) | (2.08) |
| PBDIT/Interest | Times | 0.14 | 0.22 |
| 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 • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm |
| Note on complexity levels of the rated instrument |
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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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| Rating History:Not Applicable |
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