|
|
| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 10.00 | ACUITE D | Downgraded | - |
| Bank Loan Ratings | 15.00 | - | ACUITE D | Downgraded |
| Total Outstanding | 25.00 | - | - |
|
Rating Rationale |
|
Acuite has downgraded its long-term rating to Acuite D (read as ACUITE D) from ACUITE B+ (read as ACUITE B plus) and short term rating to 'ACUITE D' (read as ACUITE D) from 'ACUITE A4' (read as ACUITE A Four) on Rs.25.00 Cr bank facility of Jay Adinath Infrastructure (JAI). The downgrade in rating is on account of a delay in servicing debt obligations by JAI as confirmed by its banker. |
| About Company |
| M/s. Jay Adinath Infrastructure, a partnership firm, incorporated in May 2021. The Company is engaged in operating in the state of Gujarat for construction of Water Supply Project, Drainage Systems & Overhead Tanks and ancillary Infrastructure Facilities. The day-to-day operations of the entity are managed by Mr. Ketan Arunkumar Shah and Mr. Jaykumar Rasikbhai Savani. |
| About the Group |
|
M/s. Jay Ambey Construction, a partnership firm, incorporated in May 2021. The Company is engaged in operating in the state of Gujarat for construction of Water Supply Project, Drainage Systems & Overhead Tanks and ancillary Infrastructure Facilities. The day-to-day operations of the entity are managed by Mr. Gajeshbhai I. Moradia and Mr. Jayesh I. Hirpada. M/s. Shree Ganesh Infrastructure, a partnership firm, incorporated in May 2021. The Company is engaged in operating in the state of Gujarat for construction of Water Supply Project, Drainage Systems & Overhead Tanks and ancillary Infrastructure Facilities. The day-to-day operations of the entity are managed by Mr. Savan Savani and Mr. Milan Vaghasia. M/s. Om Construction - Ahmedabad, a partnership firm, incorporated in May 2021. The Company is engaged in operating in the state of Gujarat for construction of Water Supply Project, Drainage Systems & Overhead Tanks and ancillary Infrastructure Facilities. The daytoday operations of the entity are managed by Mr. Savan Savani and Mr. Milan Vaghasia. |
| Unsupported Rating |
| Not Applicable |
| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuité has consolidated the business and financial risk profiles of Jay Adinath Infrastructure, Shree Ganesh Infrastructure, Om Construction- Ahmedabad and Jay Ambe Construction considering their common line of business, common management, and significant Financial and operational linkages. The entities are together referred to as Jai Adinath Group. |
| Key Rating Drivers |
| Strengths |
| Track record of operation and experienced management in the Infrastructure sector Jay Adinath Infrastructure and Group was incorporated in May 2021. The Group is engaged in operating in the state of Gujarat for construction of Water Supply Project, Drainage Systems & Overhead Tanks and ancillary Infrastructure Facilities. The partners of the group are Mr. Ketan Arunkumar Shah & Mr. Jaykumar Rasikbhai Savani, Mr. Gajeshbhai I. Moradia & Mr. Jayesh I. Hirpada, Mr. Savan Savani & Mr. Milan Vaghasia and Mr. Savan Savani & Mr. Milan Vaghasia who have an experience of nearly 8-10 years in this business. Acuité believes that the company is expected to continue to benefit from the proprietor’s established presence in the industry and its improving business risk profile over the medium. |
| Weaknesses |
| Instance of delay and irregularities account conduct: As per the banker feedback group's account conduct is irregular with continuous over withdrawal and delays in debt repayment till recent past. |
| Rating Sensitivities |
| Timely servicing of debt obligations |
| Liquidity Position |
| Poor |
| Liquidity position of the company is poor as there are continuous over utilizations in the working capital facilities and delays in servicing of debt obligations |
| Outlook: |
| Not Applicable |
| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 22 (Actual) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 61.07 | 0.00 |
| PAT | Rs. Cr. | 3.41 | 0.00 |
| PAT Margin | (%) | 5.58 | 0.00 |
| Total Debt/Tangible Net Worth | Times | 11.32 | 0.00 |
| PBDIT/Interest | Times | 3.27 | 0.00 |
| Status of non-cooperation with previous CRA (if applicable) |
| Not Applicable |
| Any Other Information | ||||||||||||||||||||||||
Standalone Figures:
|
||||||||||||||||||||||||
| Applicable Criteria |
|
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Insurance Companies: https://www.acuite.in/view-rating-criteria-66.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 |
|
| |
|
|
|||||||||||||||||||||||||||
|
| |
| *Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) |
|
SHREE GANESH INFRASTRUCTURE JAY AMBEY CONSTRUCTION JAY ADINATH INFRASTRUCTURE OM CONSTRUCTION - AHMEDABAD |
|
Contacts |
|
|
|
About Acuité Ratings & Research |
