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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 15.50 | ACUITE B- | Reaffirmed | Issuer not co-operating* | - |
| Bank Loan Ratings | 9.50 | - | ACUITE A4 | Reaffirmed | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 25.00 | - | - |
| Rating Rationale |
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Acuité has reaffirmed the long-term rating of ‘ACUITE B-’ (read as ACUITE B minus) and the Short-term rating of ‘ACUITE A4’ (read as ACUITE A four) on the Rs. 25.00 crore bank facilities of Karismaa Foundations 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 |
| Karismaa Foundations Private Limited (KFPL), incorporated in 2010, is a Chennai-based company promoted by Mr. Rakesh Sheth and Mr. Rajesh. The company undertakes civil construction contracts for private companies, real estate projects and also provides heavy earth equipment such as cranes on contract basis. Further, the company is in the process of developing six residential projects under the names Cielo, Orion, Twine, Prisma, Blue Beach and Site. Sugesan Transport Private Limited (STPL), a group company provides heavy earth equipment and cranes on contract basis. Further, STPL has a fleet of 35 equipment and operates across India. The two companies are together referred to as the Karismaa group. For FY2016- 17, the group reported profit after tax (PAT) of Rs.0.16 crore on operating income of Rs.35.41 crore as against net loss of Rs.0.75 crore on operating income of Rs.52.57 crore in the previous year. |
| About the Group |
| Sugesan Transport Private Limited, incorporated in 1971, is a Chennai-based company promoted by Mr. Rajendra Sheth, Mr. Premkumar Sheth, Mr. Mukesh Sheth and Mr. Jesmin Sheth. The company, apart from offering heavy earth equipment and cranes on hire, also undertakes road laying and plant erection services. STPL operates across India and has a fleet of 35 (cranes and related equipment). STPL caters to L&T, ECC Construction Group, Reliance Petroleum Limited, Bhoruka Steels Limited among others. KFPL, a group company develops residential projects in Tamil Nadu and Karnataka. The company is in the process of developing six projects under the name Cielo, Orion, Twine, Prisma, Blue Beach and Site. The two companies form the Karismaa group. |
| 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 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 endeavoured 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. |
| About the Rated Entity - Key Financials |
| The rated entity has not shared the latest financial statement for Acuite to comment. |
| Rating Sensitivity |
| "No information provided by the issuer / available for Acuite to comment upon." |
| All Covenants |
| None |
| Liquidity Position |
| "No information provided by the issuer / available for Acuite to comment upon." |
| Outlook |
| Not Applicable |
| Other Factors affecting Rating |
| Not Applicable |
| Status of non-cooperation with previous CRA |
| None |
| Any other information |
| Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups. |
| Applicable Criteria |
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• Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.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 • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.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 |
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