Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 34.80 ACUITE B | Reaffirmed | Issuer not co-operating* -
Total Outstanding Quantum (Rs. Cr) 34.80 - -
 
Rating Rationale

­Acuité has reaffirmed the long-term rating of ‘ACUITE B’ (read as ACUITE B) on the Rs. 34.80 crore bank facilities of Innovative Microfinance for Poverty Alleviation and Community Transformation (IMPACT). The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.


About the Company

­Established in 2004, Innovative Microfinance for Poverty Alleviation and Community Transformation (IMPACT) is a Tamil Nadu-based company classified under section 8 of The Companies Act, 2013. IMPACT focuses on activities related to empowerment of women and provides training to self-help groups apart from micro finance lending. The company operates across Tamil Nadu, Kerala, Chhattisgarh and Uttar Pradesh. The Company headed by Mr. Suvisedagan Aruliah, Chief Executive Officer and with Mr. Cherian Thomas as Chairman of the Board. The Directors of IMPACT are Mr. Baby Jomon, Mr. Madhav Durga Bellamkonda, Ms. Benita Grace Paul Nangia, Mr. Senthiappan Umamaheswaran and Ms. Lisha John.

 
Unsupported Rating
­Not Applicable
 
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 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.

 
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 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.

 
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 Acuité to comment upon.

 
Outlook

­Not Applicable

 
Other Factors affecting Rating

­Not Applicable

 
Key Financials:
­
  Unit FY18 FY17
Total Assets Rs. Cr 40.72 30.90
Total Income (Net of Interest Expense) Rs. Cr 3.81 3.24
PAT Rs. Cr 0.85 0.66
Net Worth Rs. Cr 8.56 7.50
Return on Average Assets (RoAA) (%) 2.38 2.37
Return on Average Net Worth (RoNW) (%) 10.62 9.29
Total Debt/Tangible Net Worth (Gearing) Times 3.73 3.08
Gross NPAs (%) 0.16 0.95
Net NPAs (%) 0.03 0.13
 
Status of non-cooperation with previous CRA

­Not Applicable

 
Any other information

­None

 
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
• Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.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
29 Aug 2022 Term Loan Long Term 5.00 ACUITE B ( Issuer not co-operating*)
Term Loan Long Term 3.75 ACUITE B ( Issuer not co-operating*)
Proposed Bank Facility Long Term 0.01 ACUITE B ( Issuer not co-operating*)
Term Loan Long Term 2.00 ACUITE B ( Issuer not co-operating*)
Term Loan Long Term 9.50 ACUITE B ( Issuer not co-operating*)
Term Loan Long Term 9.54 ACUITE B ( Issuer not co-operating*)
Term Loan Long Term 5.00 ACUITE B ( Issuer not co-operating*)
08 Jun 2021 Proposed Bank Facility Long Term 0.01 ACUITE B ( Issuer not co-operating*)
Term Loan Long Term 5.00 ACUITE B ( Issuer not co-operating*)
Term Loan Long Term 9.54 ACUITE B ( Issuer not co-operating*)
Term Loan Long Term 9.50 ACUITE B ( Issuer not co-operating*)
Term Loan Long Term 5.00 ACUITE B ( Issuer not co-operating*)
Term Loan Long Term 3.75 ACUITE B ( Issuer not co-operating*)
Term Loan Long Term 2.00 ACUITE B ( Issuer not co-operating*)
09 Mar 2020 Term Loan Long Term 5.00 ACUITE B (Downgraded and Issuer not co-operating*)
Term Loan Long Term 2.00 ACUITE B (Downgraded and Issuer not co-operating*)
Term Loan Long Term 9.54 ACUITE B (Downgraded and Issuer not co-operating*)
Term Loan Long Term 9.50 ACUITE B (Downgraded and Issuer not co-operating*)
Term Loan Long Term 5.00 ACUITE B (Downgraded and Issuer not co-operating*)
Term Loan Long Term 3.75 ACUITE B (Downgraded and Issuer not co-operating*)
Proposed Bank Facility Long Term 0.01 ACUITE B (Downgraded and Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Not Applicable Not Applicable Proposed Long Term Bank Facility Not Applicable Not Applicable Not Applicable 0.01 Simple ACUITE B | Reaffirmed | Issuer not co-operating*
Pallavan Grama Bank Not Applicable Term Loan Not available Not available Not available 3.75 Simple ACUITE B | Reaffirmed | Issuer not co-operating*
State Bank of India Not Applicable Term Loan Not available Not available Not available 9.54 Simple ACUITE B | Reaffirmed | Issuer not co-operating*
Indian Bank Not Applicable Term Loan Not available Not available Not available 9.50 Simple ACUITE B | Reaffirmed | Issuer not co-operating*
Small Industries Development Bank of India Not Applicable Term Loan Not available Not available Not available 5.00 Simple ACUITE B | Reaffirmed | Issuer not co-operating*
Federal Bank Not Applicable Term Loan Not available Not available Not available 2.00 Simple ACUITE B | Reaffirmed | Issuer not co-operating*
South Indian Bank Not Applicable Term Loan Not available Not available Not available 5.00 Simple ACUITE B | Reaffirmed | Issuer not co-operating*

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