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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 15.00 | ACUITE D | Downgraded | Issuer not co-operating* | - |
| Bank Loan Ratings | 15.00 | - | ACUITE D | Downgraded | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 30.00 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 0.00 | - | - |
| Rating Rationale |
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ACUITE has downgraded the long term rating to ‘ACUITE D’ (read as ACUITE D) from ‘ACUITE BB+’ (read as ACUITE double B plus) and short term rating to ‘ACUITE D’ (read as ACUITE D) from 'ACUITE A4+' (read as ACUITE A four plus) on the Rs. 30.00crore bank facilities of Gangadhar Jena. The rating continues to be flagged as “Issuer Not-Cooperating” and is downgraded on account of information risk.
The downgrade is on account of the feedback received from the banker that the account had been classified as NPA (Non Perfoming Asset).The company has been non-cooperative with us since the past four years and has not been submitting the No Default Statement (NDS). |
| About the Company |
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Established in 2002, Gangadhar Jena (GJ) is an Odisha based proprietorship firm named after its proprietor. The firm is primarily engaged in construction work of residential schools, hostels, office buildings, bridges, road infrastructure for State Government departments of Odisha, Paradeep port trust and various public sector units. GJ is classified as Super Class Contractor under the department of Public Works Department (PWD), Government of Odisha.
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| Non-cooperation by the issuer/borrower: |
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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 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 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. |
| About the Rated Entity - Key Financials |
| The entity has not shared the latest financial statement for Acuite to comment. |
| Rating Sensitivity |
| "No information provided by the issuer / available for Acuite to comment upon." |
| Material Covenants |
| None |
| Liquidity Position |
| "No information provided by the issuer / available for Acuite to comment upon." |
| Outlook |
| Not Applicable |
| Other Factors affecting Rating |
| Not Applicable. |
| Status of non-cooperation with previous CRA |
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Care Ratings vide its press release dated 27.05.2022, had downgraded the company to CARE BB-/A4; INC. Crisil vide its press release dated 14.07.2022, had reaffirmed the company to CRISIL B+/A4; INC. |
| Any other information |
| Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups. |
| Applicable Criteria |
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• Rating Process and Timeline: https://www.acuite.in/view-rating-criteria-67.htm • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.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 |
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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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