Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 2.00 ACUITE BB- | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 35.00 - ACUITE A4 | Downgraded | Issuer not co-operating*
Total Outstanding 37.00 - -
 
Rating Rationale

­Acuité has downgraded the long term rating to ‘ACUITE BB-’ (read as ACUITE Double B minus) from ‘ACUITE BB’ (read as ACUITE Double B) and the short term rating to 'ACUITE A4' (read as ACUITE A four) from 'ACUITE A4+' (read as ACUITE A four plus) on the Rs. 37.00 crore bank facilities of Devendra Construction Company on account of information risk. The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.


About the Company

­Jodhpur-based, Devendra Construction Company a Partnership Firm was established in the year 2002 as a proprietorship firm by Mr. Devendra Vishnoi. Later, the constitution was changed to a partnership firm in the year 2018. Mr. Devendra Vishnoi, Mr. Yashpal Vishnoi and Mrs. Kamla Vishnoi are the current partners of the firm. DCC is engaged in the business of civil construction, which primarily includes water pipeline work, pumping machineries jobs and civil works projects throughout the state of Rajasthan and Punjab. It is enlisted as “AA” class contractor with Public Health & Engineering Department (PHED), Government of Rajasthan & “A” class contractor with Military Engineer Services (MES).

 
Unsupported Rating

­­Not Applicable

 
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 due date. Acuité believes that information risk is a critical component in such ratings, and non - cooperation 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 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.

 
About the Rated Entity - Key Financials

­­The rated entity has not shared the latest financial statements despite repeated requests.

 
Rating Sensitivity

"­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

 
Status of non-cooperation with previous CRA

­Not Applicable

 
Any other information

­None

 
Applicable Criteria
• Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.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
07 Apr 2023 Bank Guarantee/Letter of Guarantee Short Term 18.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
Bank Guarantee/Letter of Guarantee Short Term 17.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
Proposed Long Term Bank Facility Long Term 0.25 ACUITE BB (Downgraded & Issuer not co-operating* from ACUITE BB+ | Stable)
Secured Overdraft Long Term 1.75 ACUITE BB (Downgraded & Issuer not co-operating* from ACUITE BB+ | Stable)
02 Feb 2022 Bank Guarantee/Letter of Guarantee Short Term 17.00 ACUITE A4+ (Reaffirmed)
Bank Guarantee/Letter of Guarantee Short Term 18.00 ACUITE A4+ (Reaffirmed)
Proposed Long Term Bank Facility Long Term 0.25 ACUITE BB+ | Stable (Reaffirmed)
Secured Overdraft Long Term 1.75 ACUITE BB+ | Stable (Reaffirmed)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
Punjab National Bank Not avl. / Not appl. Bank Guarantee/Letter of Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 18.00 Simple ACUITE A4 | Downgraded | Issuer not co-operating* ( from ACUITE A4+ )
HDFC Bank Ltd Not avl. / Not appl. Bank Guarantee/Letter of Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 17.00 Simple ACUITE A4 | Downgraded | Issuer not co-operating* ( from ACUITE A4+ )
Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.25 Simple ACUITE BB- | Downgraded | Issuer not co-operating* ( from ACUITE BB )
Punjab National Bank Not avl. / Not appl. Secured Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.75 Simple ACUITE BB- | Downgraded | Issuer not co-operating* ( from ACUITE BB )

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