Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 35.00 ACUITE D | Assigned -
Total Outstanding Quantum (Rs. Cr) 35.00 - -
 
Rating Rationale
­Acuité has assigned the long term rating of ‘ACUITE D’ (read as ACUITE D) on the Rs.35.00 crore bank facilities of Expressions. 
 
Rationale for rating assigned
The rating assigned on the bank facilities is primarily on account of written declaration specifying details of defaults in No Default Statement submitted by client to Acuité. Furthermore, the lenders of the company also mentioned verbally about delays in repayment of term loan . There have been delays in servicing of debt obligations of term loans availed during the last three months (for the month of December 22 to March 23 which was paid in April-23) and the account is currently classified as SMA-0 as per banking sources. 

About the Company
­Gujrat based Expressions is a partnership firm established in the year 2010 and is a part of Aakash group which is involved in real estate activity. The current partners of the firm include Mr. Manishbhai K Patel along with Ms. Naynaben Patel and Mr. Kishan Patel. There are two projects under M/s Expressions viz; “Esppace” a commercial project and “Expressions” a residential project.  Esppace is a commercial project and was completed in 2017 and consists of ground plus four structure with180 shops. Expressions is a project of 5 bhk flats consisting of two towers (named “Emotions” & “Feelings”) of 19 floors with 3 flats on each floor.
 
Analytical Approach
­Acuite has considered the standalone business and financial risk profile to arrive at the rating of Expressions.
 

Key Rating Drivers

Strengths
­Experienced management
Expressions is a part of Aakash group. Aakash group has been into existence since 35 years and based out of Gujarat. The group has completed over 20 projects within Gujarat till date. Expressions is a Partnership firm and was formed in the year 2010 in order to undertake two projects viz; Esppace & Expressions. Esppace is a commercial project while Expressions is a project consisiting 5 bhk residential houses. The firm is promoted by Mr. Manishbhai K Patel who has experience in the real estate and construction activity for more than 18 years. The operations are managed by the promoters as well as well experienced senior management team in the industry.
Acuité believes that the company may benefit from the experienced promoters and management in the medium term.
Weaknesses
Delays in servicing of bank facilities availed
Expressions avails bank facilities from Union Bank of India. There have been delays in servicing of debt obligations of term loans availed during the last three months (for the month of December 22 to March 23 which was paid in April-23) and the firm is currently classified as SMA-0 as per banking sources. Further, previously intermittent delays in the interest and principal servicing have been reported with account being classified at at SMA-1 & SMA-2 respectively, confirmed by the banking sources.
Rating Sensitivities
  • ­Regularization of debt servicing track record 
 
Material covenants
­None
 
Liquidity Position
Poor
­Liquidity of the company is poor marked by delays in servicing of debt obligations of term loans availed during the last three months.
 
Outlook:
­Not Applicable
 
Other Factors affecting Rating
­Not Applicable
 

Particulars Unit FY 22 (Actual) FY 21 (Actual)
Operating Income Rs. Cr. 39.60 36.60
PAT Rs. Cr. 0.19 0.21
PAT Margin (%) 0.47 0.58
Total Debt/Tangible Net Worth Times 2.34 6.34
PBDIT/Interest Times 1.03 1.02
Status of non-cooperation with previous CRA (if applicable)
BWR, vide its press release dated November 02, 2022 had denoted the rating of Expressions as ‘BWR B; ISSUER NOT CO-OPERATING’ on account of lack of adequate information required for monitoring the ratings. 
 
Any other information
­None
 
Applicable Criteria
• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Entities In Manufacturing Sector:- https://www.acuite.in/view-rating-criteria-59.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.
 
Rating History :
­Not Applicable
 
Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Union Bank of India Not Applicable Term Loan Not available Not available Not available 35.00 Simple ACUITE D | Assigned

Contacts
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