PR

Press Release
HARJI ENGINEERING WORKS PRIVATE LIMITED
October 13, 2023
Rating Reaffirmed and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	7.00	ACUITE D \| Reaffirmed \| Issuer not co-operating*	-
Bank Loan Ratings	60.00	-	ACUITE D \| Reaffirmed \| Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr)	67.00	-	-

Rating Rationale

Acuité has reaffirmed its long term rating of ‘ACUITE D' (read as ACUITE D) & short term rating of 'ACUITE D' (read as ACUITE D) on the Rs. 67.00 crore bank facilities of Harji Engineering Works Private Limited. The rating is now flagged as an indicative and is based on best available information
The rating has been reaffirmed on account of information risk .

About the Company

Harji Engineering Works Private Limited (HEWPL) is a Delhi-based company incorporated in 1982 by Mr. Gian Singh, Mr. Ravindrajit Singh and Mr. Harbhej Singh. The company undertakes erection and fabrication of steel structures, boilers and turbines. It is also engaged in the laying of pipelines and undertakes instrumentation, construction and composite work for thermal stations and also power, hydrocarbon plants across India.

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 rating is 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

Key Financials

Particulars	Unit	FY 22 (Provisional)	FY 21 (Actual)
Operating Income	Rs. Cr.	70.74	73.87
PAT	Rs. Cr.	1.77	1.93
PAT Margin	(%)	2.50	2.61
Total Debt/Tangible Net Worth	Times	0.58	0.47
PBDIT/Interest	Times	2.28	2.37

Status of non-cooperation with previous CRA

Brickworks vide its press release dated 20th June 2023, had downgraded the company to BWR D/D; Issuer Not Cooperating.

Any other information

Acuite is yet to receive the latest No Default Statement from the rated entity, despite repeated requests and followups.

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

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
22 Jul 2022	Letter of Credit	Short Term	5.00	ACUITE D (Downgraded from ACUITE A4+)
	Bank Guarantee	Short Term	55.00	ACUITE D (Downgraded from ACUITE A4+)
	Cash Credit	Long Term	1.00	ACUITE D (Downgraded from ACUITE BB+ \| Stable)
	Secured Overdraft	Long Term	6.00	ACUITE D (Downgraded from ACUITE BB+ \| Stable)
10 Mar 2021	Secured Overdraft	Long Term	6.00	ACUITE BB+ \| Stable (Reaffirmed)
	Cash Credit	Long Term	1.00	ACUITE BB+ \| Stable (Reaffirmed)
	Letter of Credit	Short Term	5.00	ACUITE A4+ (Reaffirmed)
	Bank Guarantee	Short Term	55.00	ACUITE A4+ (Reaffirmed)
03 Feb 2020	Letter of Credit	Short Term	5.00	ACUITE A4+ (Issuer not co-operating*)
	Bank Guarantee	Short Term	55.00	ACUITE A4+ (Issuer not co-operating*)
	Secured Overdraft	Long Term	5.00	ACUITE BB+ (Issuer not co-operating*)
	Cash Credit	Long Term	1.00	ACUITE BB+ (Issuer not co-operating*)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Punjab and Sind Bank	Not Applicable	Bank Guarantee/Letter of Guarantee	Not Applicable	Not Applicable	Not Applicable	55.00	Simple	ACUITE D \| Reaffirmed \| Issuer not co-operating*
Punjab and Sind Bank	Not Applicable	Cash Credit	Not Applicable	Not Applicable	Not Applicable	1.00	Simple	ACUITE D \| Reaffirmed \| Issuer not co-operating*
Punjab and Sind Bank	Not Applicable	Letter of Credit	Not Applicable	Not Applicable	Not Applicable	5.00	Simple	ACUITE D \| Reaffirmed \| Issuer not co-operating*
Punjab and Sind Bank	Not Applicable	Secured Overdraft	Not Applicable	Not Applicable	Not Applicable	6.00	Simple	ACUITE D \| Reaffirmed \| Issuer not co-operating*

Contacts

Analytical Details	Contact Details
Mohit Jain Senior Vice President - Rating Operations Tel: 022–49294017 mohit.jain@acuite.in Khushi Shah Analyst - Rating Operations Tel: 022-49294065 khushi.shah@acuite.in	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in Tel: 022-49294011 rating.desk@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.