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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 19.73 | ACUITE BB+ | Downgraded | Issuer not co-operating* | - |
| Bank Loan Ratings | 115.27 | - | ACUITE A4+ | Downgraded | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 135.00 | - | - |
| Rating Rationale |
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Acuité has downgraded its long-term rating to ‘ACUITE BB+’ (read as ACUITE double B Plus) from 'ACUITE BBB-' (read as ACUITE Triple B Minus) and short-term rating to 'ACUITE A4+' (read as ACUITE A Four Plus) from ‘ACUITE A3’ (read as ACUITE A Three) to the Rs. 135.00 Cr bank facilities of Jampana Construction Private Limited (JCPL). This rating is now an indicative rating and is based on best available information. and is downgraded on account of information risk .
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| About the Company |
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Incorporated in 2003, Jampana Construction Private Limited (JCPL) is a Bengaluru based civil contactor engaged in the construction of commercial and residential buildings, bridges, hospitals, layout development etc. JCPL undertakes direct as well as subcontracted orders. The clientele of the Company includes National Building Construction Corporation (NBCC), Karnataka Housing Board (KHB), Karnataka Road Development Corporation Limited (KRDCL), Karnataka Health System Development Research Projects (KHSDRP), Nagarjuna Construction Company Limited (NCCL), and Bangalore Development Authority (BDA), Military Engineer Services (MES) and other state and central government agencies. Directors of Jampana Construction Private Limited are Sridevi Jampana, Srinivasa Raju Jampana, Suvarchala Jampana Bhanu.
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| Non-cooperation by the issuer/borrower |
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Acuité has been requesting for No Default Statements (NDS); however, despite multiple requests; the Company’s management has remained non-cooperative and not submitted the NDS for the preceding 03 consecutive months.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 |
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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 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.
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| Rating Sensitivities |
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No information provided by the issuer / available for Acuite to comment upon.
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| Material Covenants |
| None. |
| Liquidity Position |
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No information provided by the issuer / available for Acuite to comment upon.
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| Outlook |
| Not Applicable. |
| Other factors affecting rating |
| Not applicable |
| Particulars | Unit | FY 22 (Actual) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 136.68 | 94.51 |
| PAT | Rs. Cr. | 8.60 | 5.34 |
| PAT Margin | (%) | 6.29 | 5.65 |
| Total Debt/Tangible Net Worth | Times | 0.11 | 0.07 |
| PBDIT/Interest | Times | 9.50 | 4.71 |
| Status of non-cooperation with previous CRA |
| Not Applicable. |
| Any other information |
| Acuité is not in receipt of the “No Default Statement (NDS)" since January 2023. |
| Applicable Criteria |
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• 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 Investment Trust (InvIT): https://www.acuite.in/view-rating-criteria-72.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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