Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 28.00 ACUITE BB- | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 47.00 - ACUITE A4 | Downgraded | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 75.00 - -
 
Rating Rationale
­Acuité has downgraded its long term rating to ‘ACUITE BB-' (read as ACUITE double B minus)’ & short term rating to ACUITE A4 ‘(read as ACUITE A four)’on the Rs 75.00 crore bank facilities of GVR Infra Constructions India Private Limited. This rating is now an indicative rating and is based on best available information and is on account of information risk .

About the Company
­Incorporated in 2014 and based in Warangal (Telangana), GVR Infra Constructions India Private Limited (GVRIPL) is engaged in the business of civil construction and primarily undertakes irrigation works in the state of Telangana. The closely held entity is promoted by Mr. Gankidi Venkateswar Reddy and is a special class contractor in the region of Telangana. GVRIPL undertakes irrigation projects for ‘The Superintendent Engineer’ in the region, Water Resource Department, and Government of Telangana, KNR Constructions Limited, Larsen & Toubro Limited (L&T) amongst others.
 
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 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 endeavoured 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 ratingis based.
 
Rating Sensitivities
­"No information provided by the issuer / available for Acuite to comment upon."
 
All Covenants
­Not Applicable
 
Liquidity Position
­"No information provided by the issuer / available for Acuite to comment upon."
 
Outlook
­Not Applicable
 
Other Factors affecting Rating
­Not Applicable
 

Particulars Unit FY 22 (Actual) FY 21 (Actual)
Operating Income Rs. Cr. 297.98 325.54
PAT Rs. Cr. 17.01 17.73
PAT Margin (%) 5.71 5.45
Total Debt/Tangible Net Worth Times 1.19 1.20
PBDIT/Interest Times 3.73 3.90
Status of non-cooperation with previous CRA
­Not Applicable
 
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
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.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
20 Jul 2022 Bank Guarantee Short Term 15.00 ACUITE A4+ (Reaffirmed)
Bank Guarantee Short Term 32.00 ACUITE A4+ (Reaffirmed)
Cash Credit Long Term 28.00 ACUITE BB | Stable (Reaffirmed)
31 Jan 2022 Bank Guarantee Short Term 15.00 ACUITE A4+ (Upgraded from ACUITE A4)
Bank Guarantee Short Term 32.00 ACUITE A4+ (Upgraded from ACUITE A4)
Cash Credit Long Term 28.00 ACUITE BB | Stable (Upgraded from ACUITE C)
12 Oct 2021 Bank Guarantee Short Term 32.00 ACUITE A4 (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 28.00 ACUITE C (Downgraded and Issuer not co-operating*)
Bank Guarantee Short Term 15.00 ACUITE A4 (Downgraded and Issuer not co-operating*)
17 Jul 2020 Bank Guarantee Short Term 15.00 ACUITE A3 (Reaffirmed)
Cash Credit Long Term 28.00 ACUITE BBB- | Stable (Reaffirmed)
Bank Guarantee Short Term 32.00 ACUITE A3 (Reaffirmed)
22 Jun 2020 Cash Credit Long Term 10.00 ACUITE BBB- | Stable (Reaffirmed)
Bank Guarantee Short Term 27.00 ACUITE A3 (Reaffirmed)
Bank Guarantee Short Term 15.00 ACUITE A3 (Reaffirmed)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Indian Bank Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 32.00 Simple ACUITE A4 | Downgraded | Issuer not co-operating*
Canara Bank Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 15.00 Simple ACUITE A4 | Downgraded | Issuer not co-operating*
Indian Bank Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 28.00 Simple ACUITE BB- | Downgraded | Issuer not co-operating*

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