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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 4.00 | ACUITE B+ | Reaffirmed | Issuer not co-operating* | - |
| Bank Loan Ratings | 24.00 | - | ACUITE A4 | Reaffirmed | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 28.00 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 0.00 | - | - |
| Rating Rationale |
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Acuité has reaffirmed the long-term rating of ‘ACUITE B+’ (read as ACUITE B plus) and short term rating of ‘ACUITE A4’ (read as ACUITE A four) on the Rs. 28.00 crore bank facilities of Indfab Projects Private Limited. The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.
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| About the Company |
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Incorporated in 2005, Located in Odisha, India, Indfab Projects Private Limited (IPPL) carries out Engineering, Procurement and Construction (EPC) work in the aluminium industry. It is promoted by Mr. Ashis Palit, Mr. Prabhat Palit and Mr. Kaushik Palit. Mr. Prabhat Palit, who is an engineer by profession, has prior experience of working in a joint venture with Indian Ropeway Engineering Limited (IREL) from 2002 to 2005. The company’s current operations are being actively managed by Mr. Ashis Palit. The company requires raw materials like steel, oxygen gas, electrode welding gas etc. for its erection and installation works which are provided mainly by the clients, for other raw materials which are not so provided, it procures them on a credit of 15 to 30 days from the suppliers. IPPL’s major clients include NALCO, HINDALCO, Vedanta Ltd and Mahanadi Coalfield Limited. It gets contract work mainly on a tender basis. Collections are made by raising bills as the project progresses normally on a monthly basis with realisation being made in 15 days.
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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.
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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 endeavoredio 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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| Rating Sensitivity |
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"No information provided by the issuer / available for Acuite to comment upon."
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| Material Covenants |
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None.
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| Liquidity Position |
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"No information provided by the issuer / available for Acuite to comment upon."
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| Outlook |
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Not Applicable.
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| Other Factors affecting Rating |
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Not Applicable.
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| Particulars | Unit | FY 21 (Actual) | FY 20 (Actual) |
| Operating Income | Rs. Cr. | 27.69 | 35.78 |
| PAT | Rs. Cr. | 0.01 | 1.03 |
| PAT Margin | (%) | 0.04 | 2.88 |
| Total Debt/Tangible Net Worth | Times | 0.22 | 0.25 |
| PBDIT/Interest | Times | 3.88 | 4.14 |
| Status of non-cooperation with previous CRA |
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None
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| Any other information |
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Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups.
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| Applicable Criteria |
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• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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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