Press Release

Press Release

September 13, 2024

KAMAN SRINIVASAGUPTA SUNILGUPTA
Rating Downgraded

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	2.15	ACUITE C \| Downgraded	-
Bank Loan Ratings	68.85	ACUITE D \| Downgraded	-
Total Outstanding	71.00	-	-

Rating Rationale

Acuite has downgraded its long-term rating to ‘ACUITE D' (read as ACUITE D) from 'ACUITE BBB-' (read as ACUITE triple B minus) on the Rs.68.85 Cr. bank facilities of Kaman Srinivasagupta Sunilgupta (KSS).
Acuite has downgraded its proposed long-term bank facilitiy to ‘ACUITE C' (read as ACUITE C) from 'ACUITE BBB-' (read as ACUITE triple B minus) on the Rs.2.15 Cr. facilities of Kaman Srinivasagupta Sunilgupta (KSS).

Rationale for Rating
The downgrade is based on banker feedback received confirming recent delays in debt servicing.

About the Company

Bangalore-based Kaman Srinivasagupta Sunilgupta is a proprietorship concern established in 2000 by proprietor Mr. K. S. Sunil Gupta. The firm is engaged in the property and real estate business and is currently leasing out two of its properties located in Bangalore. Other companies held by Mr. Gupta are Kaman Holding Private Limited, which is engaged in property acquisitions; Kaman Projects Private Limited, which is engaged in the execution of new projects; and Kaman Development Private Limited, which is engaged in construction and development activities.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone financial and business risk profiles of KSS to arrive at the rating.

Key Rating Drivers

Strengths

Established track record of operations with experienced management
KSS is a proprietorship firm based out of Bangalore that was incorporated in the year 2000 by Mr. Sunil Gupta, reflecting an established track record of operations for more than two decades. The promoter of the firm has had extensive experience in the real estate industry for more than 25 years. The firm is engaged in the property and real estate business and is currently leasing out two of its properties located in Bangalore to a couple of reputed clients, i.e., Akamai Technologies Private Limited and The Executive Centre. The operations of the firm are managed by the promoter along with an experienced senior management team. The extensive experience of the promoter has helped the firm get long-term lease contracts from reputed clients. Acuité believes that the firm will continue to benefit from the promoter’s extensive experience over the near and medium term.

Weaknesses

Delays in debt servicing
There have been recent instances of delays in debt servicing by the company as confirmed by the banker through written communication.

Rating Sensitivities

Timely servicing of debt obligation

Liquidity Position

Poor

Liquidity position of the company is poor as there have been delays observed in debt servicing.

Outlook: Not Applicable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 22 (Actual)	FY 21 (Actual)
Operating Income	Rs. Cr.	14.50	11.07
PAT	Rs. Cr.	7.55	4.63
PAT Margin	(%)	52.09	41.84
Total Debt/Tangible Net Worth	Times	1.79	2.20
PBDIT/Interest	Times	2.23	1.82

Status of non-cooperation with previous CRA (if applicable)

Not Applicable

Any other information

None

Applicable Criteria

• 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
• Real Estate Entities: https://www.acuite.in/view-rating-criteria-63.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
26 Sep 2023	Lease Rental Discounting	Long Term	41.54	ACUITE BBB- \| Stable (Reaffirmed)
	Lease Rental Discounting	Long Term	11.31	ACUITE BBB- \| Stable (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	2.15	ACUITE BBB- \| Stable (Reaffirmed)
	Lease Rental Discounting	Long Term	16.00	ACUITE BBB- \| Stable (Assigned)
05 Jun 2023	Lease Rental Discounting	Long Term	41.54	ACUITE BBB- \| Stable (Reaffirmed)
	Lease Rental Discounting	Long Term	11.31	ACUITE BBB- \| Stable (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	2.15	ACUITE BBB- \| Stable (Reaffirmed)
07 Mar 2022	Lease Rental Discounting	Long Term	41.54	ACUITE BBB- \| Stable (Assigned)
	Lease Rental Discounting	Long Term	11.31	ACUITE BBB- \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	2.15	ACUITE BBB- \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
State Bank of India	Not avl. / Not appl.	Lease Rental Discounting	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	41.54	Simple	ACUITE D \| Downgraded ( from ACUITE BBB- )
State Bank of India	Not avl. / Not appl.	Lease Rental Discounting	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	11.31	Simple	ACUITE D \| Downgraded ( from ACUITE BBB- )
State Bank of India	Not avl. / Not appl.	Lease Rental Discounting	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	16.00	Simple	ACUITE D \| Downgraded ( from ACUITE BBB- )
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.15	Simple	ACUITE C \| Downgraded ( from ACUITE BBB- )

Contacts

Analytical Details	Contact Details
Mohit Jain Senior Vice President - Rating Operations Tel: 022–49294017 mohit.jain@acuite.in Sanidhya Jain Associate Analyst - Rating Operations Tel: 022-49294065 sanidhya.jain@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.