Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 549.50 ACUITE C | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 256.75 ACUITE D | Downgraded | Issuer not co-operating* -
Total Outstanding 806.25 - -
 
Rating Rationale

­­Acuité has downgraded the long-term rating to ‘ACUITE C’ (read as ACUITE C) from ‘ACUITE B+’ (read as ACUITE B plus) on the Rs.549.50 Cr. bank facilities of  Future Brands Limited (FBL). 
Also, downgraded the long-term rating to ‘ACUITE D’ (read as ACUITE D) from ‘ACUITE B+’ (read as ACUITE B plus) on Rs.256.75 Cr.  bank facilities of  Future Brands Limited (FBL). The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.
The downgrade is based on the Stressed Assets management branch under which one of the lender has issued a notice about the sale of movable property. 
 

About the Company
Mumbai based, Future Brands Limited was incorporated in 2006. Future Brands Limited is a brand & Intellectual Property right company which focuses on creating, developing, managing, nurturing and acquiring brands. Mr. Rohit Mahesh Dalmia, Mr. Rupchand Paswan, Mr. Rajnandan Bajrangi Paswan are directors of the company.
 
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 the 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 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 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.
 

Particulars Unit FY 21 (Actual) FY 20 (Actual)
Operating Income Rs. Cr. 39.94 113.60
PAT Rs. Cr. (58.05) (21.54)
PAT Margin (%) (145.35) (18.96)
Total Debt/Tangible Net Worth Times 2.80 1.43
PBDIT/Interest Times 0.46 1.38
Status of non-cooperation with previous CRA
­Not Applicable.
 
Any other information
­None
 
Applicable Criteria
• Service Sector: https://www.acuite.in/view-rating-criteria-50.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.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
 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
23 Feb 2023 Term Loan Long Term 112.50 ACUITE B+ | Not Applicable (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 256.75 ACUITE B+ | Not Applicable (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 100.00 ACUITE B+ | Not Applicable (Reaffirmed & Issuer not co-operating*)
Proposed Long Term Loan Long Term 337.00 ACUITE B+ | Not Applicable (Reaffirmed & Issuer not co-operating*)
26 Nov 2021 Proposed Long Term Loan Long Term 337.00 ACUITE B+ | Not Applicable (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 100.00 ACUITE B+ | Not Applicable (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 256.75 ACUITE B+ | Not Applicable (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 112.50 ACUITE B+ | Not Applicable (Reaffirmed & Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)		 Complexity Level Rating
Not Applicable Not avl. / Not appl. Proposed Long Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 337.00 Simple ACUITE C | Downgraded | Issuer not co-operating* ( from ACUITE B+ )
IFCI Ltd. Not avl. / Not appl. Term Loan 23 Sep 2015 Not avl. / Not appl. 15 Sep 2020 112.50 Simple ACUITE C | Downgraded | Issuer not co-operating* ( from ACUITE B+ )
Union Bank of India Not avl. / Not appl. Term Loan 26 Mar 2019 Not avl. / Not appl. 31 Mar 2025 256.75 Simple ACUITE D | Downgraded | Issuer not co-operating* ( from ACUITE B+ )
Punjab National Bank Not avl. / Not appl. Term Loan 31 Dec 2019 Not avl. / Not appl. 31 Dec 2025 100.00 Simple ACUITE C | Downgraded | Issuer not co-operating* ( from ACUITE B+ )
­

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