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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 461.96 | ACUITE C | Downgraded | - |
| Total Outstanding | 461.96 | - | - |
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Rating Rationale |
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Acuite has downgraded its long-term rating to ‘ACUITE C' (read as ACUITE C) from 'ACUITE BBB-' (read as ACUITE triple B minus) on the Rs.461.96 Cr. bank facilities of Goel Ganga India Private Limited.
Rationale for Downgrade The downgrade is on account of recent delays in debt servicing being reflected in the credit information bureau report. |
| About the Company |
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Incorporated in 2016 Goel Ganga India Private Limited is the flagship company under Goel Ganga group, promoted by Shri. Jaiprakash Goel (Founder & Chairman), Dr. Atul Goel (Managing Director) & Mr. Amit Goel (Director) under which currently 5 projects are being executed. The name of the 5 projects are: Ganga legend located in Bavdhan, Pune, Gangadham towers located in Bibwewadi, Pune, Ganga glitz and Ganga millennia projects located in Undri,Pune and Ganga altus project located in Kharadi,Pune.
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| Unsupported Rating |
| Not Applicable |
| Analytical Approach |
| Acuité has considered the standalone business and financial risk profile of GGIPL to arrive at the rating. |
| Key Rating Drivers |
| Strengths |
| Experienced promoters and long track record of operations
Goel ganga group was founded by Mr. Jaiprakash Goel in 1983. This shows the long extensive experience of the group of more than four decades in the real estate business. The group has been able to successfully complete over 125 projects in Pune, Mumbai, Bengaluru, and Nagpur. They have a strong presence in the Pune real estate segment. With the long track record of operations, the group has been able to complete the projects with built-up area of 1,31,85,820 sq. fts. |
| Weaknesses |
| Instances of delays in servicing of debt obligations
Instances of recent delays in servicing of bank debt obligations have been reported in credit information bureau report of the company. |
| Rating Sensitivities |
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| Liquidity Position |
| Poor |
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The company’s liquidity position is poor marked by recent instances of delays in debt servicing being reflecting in the credit information bureau report.
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| Outlook |
| Not Applicable |
| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 22 (Actual) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 271.15 | 288.57 |
| PAT | Rs. Cr. | (196.05) | (229.70) |
| PAT Margin | (%) | (72.30) | (79.60) |
| Total Debt/Tangible Net Worth | Times | 3.33 | 4.32 |
| PBDIT/Interest | Times | 1.42 | 1.03 |
| Status of non-cooperation with previous CRA (if applicable) |
| Not Applicable |
| Any other information |
| None |
| Applicable Criteria |
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• 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 • Real Estate Entities: https://www.acuite.in/view-rating-criteria-63.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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