Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 20.00 ACUITE BB+ | Reaffirmed | Issuer not co-operating* -
Fixed Deposits (FD) 50.00 ACUITE BB+ | Reaffirmed | Issuer not co-operating* -
Bank Loan Ratings 170.00 - ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 240.00 - -
 
Rating Rationale
­Acuité has reaffirmed its long-term rating of ‘ACUITE BB+’ (read as ACUITE double B Plus) and short term rating of ‘ACUITE A4+’ (read as ACUITE A four Plus) on the Rs. 190.00 Cr bank facilities and Fixed deposit rating of ‘ACUITE BB+’ (read as ACUITE double B Plus) on the Rs 50.00 Cr proposed fixed deposits of KCP Infra Limited. The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.

About the Company
­KCP Infra Limited (erstwhile KCP Engineers Ltd, “KCPIL”) was established as a partnership business in 2005 based out of Coimbatore and is promoted by civil engineer Mr. K Chandraprakash. The company is engaged in undertaking infrastructural construction projects like construction of roads, bridges, irrigation projects, solid waste management projects, water supply projects and smart city projects. The company operates mainly out of Chennai and Coimbatore and caters to projects in Tamil Nadu, Kerala and Andhra Pradesh. The company is a Class 1 Licensed contractor with various agencies in state and central government.
 
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 has endeavoured togather 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 Sensitivity
­"No information provided by the issuer / available for Acuite to comment upon."
 
Material Covenants
­Not Applicable.
 
Liquidity Position
­"No information provided by the issuer / available for Acuite to comment upon."
 
Outlook
­Not Applicable.­
 
Other Factors affecting Rating
­­Not Applicable.
 

Particulars Unit FY 21 (Actual) FY 20 (Actual)
Operating Income Rs. Cr. 603.78 427.70
PAT Rs. Cr. 35.36 27.15
PAT Margin (%) 5.86 6.35
Total Debt/Tangible Net Worth Times 0.79 0.52
PBDIT/Interest Times 6.43 6.38
Status of non-cooperation with previous CRA
­­Not Applicable.
 
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
• 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
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
16 Jun 2022 Secured Overdraft Long Term 20.00 ACUITE BB+ (Downgraded and Issuer not co-operating*)
Bank Guarantee Short Term 70.00 ACUITE A4+ (Downgraded and Issuer not co-operating*)
Proposed Bank Guarantee Short Term 100.00 ACUITE A4+ (Downgraded and Issuer not co-operating*)
Proposed Fixed Deposit Program Long Term 50.00 ACUITE BB+ (Downgraded and Issuer not co-operating*)
19 Jun 2021 Secured Overdraft Long Term 20.00 ACUITE BBB+ | Stable (Assigned)
Bank Guarantee Short Term 70.00 ACUITE A2+ (Assigned)
Proposed Bank Guarantee Short Term 100.00 ACUITE A2+ (Assigned)
Proposed Fixed Deposit Program Long Term 50.00 ACUITE FA | Stable (Assigned)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Karnataka Bank Ltd Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 70.00 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Not Applicable Not Applicable Proposed Bank Guarantee Not Applicable Not Applicable Not Applicable 100.00 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Not Applicable Not Applicable Proposed Fixed Deposit Program Not Applicable Not Applicable Not Applicable 50.00 Simple ACUITE BB+ | Reaffirmed | Issuer not co-operating*
Karnataka Bank Ltd Not Applicable Secured Overdraft Not Applicable Not Applicable Not Applicable 20.00 Simple ACUITE BB+ | Reaffirmed | Issuer not co-operating*

Contacts
Analytical Rating Desk
About Acuité Ratings & Research
Acuité Ratings & Research Limitedwww.acuite.in