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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 100.00 | ACUITE BB+ | Downgraded & Withdrawn | Issuer not co-operating* | - |
| Bank Loan Ratings | 100.00 | ACUITE BBB+ | CE | Downgraded & Withdrawn | Issuer not co-operating* | - |
| Total Outstanding | 0.00 | - | - |
| Total Withdrawn | 200.00 | - | - |
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Rating Rationale |
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Acuité has downgraded and withdrawn the long term rating of ‘ACUITE BBB+ (CE)’ (read as ACUITE triple B plus (Credit Enhancement)) from ‘ACUITE AA (CE)’ (read as ACUITE double A (Credit Enhancement)) on the Rs. 100.00 Cr. bank facilities of Genev Capital Private Limited (GCPL). The withdrawal is on account of request received from client, NOC received from the lenders and is in accordance with Acuite's policy on withdrawal of ratings. The rating is now an indicative rating and is a based on best available information.
Acuité has downgraded and withrawn the long term rating of ‘ACUITE BB+’ (read as ACUITE double B plus) from ‘ACUITE BBB’ (read as ACUITE triple B) on the Rs. 100.00 Cr. bank facilities of Genev Capital Private Limited (GCPL). The withdrawal is on account of request received from client, NOC received from the lenders and is in accordance with Acuite's policy on withdrawal of ratings. The rating is now an indicative rating and is a based on best available information. Rationale for downgrade: The rating is downgraded on account of information risk which is critical for conducting surveillance & review of the rating. |
| About the Company |
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GCPL, incorporated in April 2018, is a debt market intermediary catering to wide range of clients like provident funds, insurance companies, family offices, banks and others. GCPL’s head office is at Mumbai and has its branch offices at New Delhi, Kolkata, Bengaluru and Ahmedabad. The company is promoted by Mr. Kunal Shah, Mr. Ashish Ghiya, Ms. Rita Thakur, and Switzerland based Tradition Group through is entity Tradition Asia Pacific (Pte.) Limited. Tradition Asia Pacific (Pte.) Limited holds ~26 percent equity shares of GCPL. (Mr. Kunal Shah and Mr. Ashish Ghiya are also promoters of Derivium Tradition Securities India Private Limited (DTSIPL).
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| Unsupported Rating |
| BB+ |
| Non-cooperation by the issuer/borrower |
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Acuité has been requesting for critical information from the rated entity. 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.
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| Limitation regarding information availability |
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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.
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| Assessment of Adequacy of Credit Enhancement (Applicable only for CE & SO Ratings) |
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The structure provides for adequate covenants to safeguard the interest of the lenders and has adequate buffers available to initiate timely corrective action and effectively mitigate the risk arising out of any adverse market movements.
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| Rating Sensitivities |
| Not applicable |
| All Covenants (Applicable only for CE & SO Ratings) |
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The issuer is subject to the following covenants as per the sanctioned terms of the Federal Bank facility:
1. For G-sec, the borrower shall provide margin upfront in their account maintained with the bank. 2. For the intraday facility (for trading in G-secs), the purchase and sales of G-secs are completed in the same day. |
| Liquidity Position |
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Currently the company has cash credit limit of Rs. 100.00 Cr. against the pledge of highly rated bonds and securities acceptable to the bank.
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| Outlook |
| Not Applicable |
| Other Factors affecting Rating |
| None |
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| Status of non-cooperation with previous CRA |
| Not Applicable |
| Any other information |
| None |
| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Banks And Financial Institutions: https://www.acuite.in/view-rating-criteria-45.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Explicit Credit Enhancements: https://www.acuite.in/view-rating-criteria-49.htm • Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.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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