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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 10.01 | ACUITE BB+ | Reaffirmed & Withdrawn | Issuer not co-operating* | - |
| Bank Loan Ratings | 0.49 | Not Applicable | Withdrawn | - |
| Total Outstanding Quantum (Rs. Cr) | 0.00 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 10.50 | - | - |
| Rating Rationale |
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Acuité has reaffirmed and withdrawn a long term rating of ‘ACUITE BB+’ (read as ACUITE double B plus) to the Rs 10.01 Cr and also withdrawn the rating on the proposed faclility of Rs 0.49 Cr bank facilities of Mahavir Energy & Coal Benefication Limited(MECBL). The rating is now flagged as “Issuer Not Cooperating” based on account of information risk.
Acuité has received the withdrawal request from the Company because it does not want to continue the rating any further. A No Objection Certificate (NOC) for the same has been received from UCO Bank. The rating withdrawal is in accordance with Acuité’s policy on withdrawal of rating. However, the banker has provided their feedback that the conduct of the account is satisfactory. |
| About the Company |
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Chhattisgarh based, Mahavir Energy & Coal Benefication Limited was established in the year 2009 by Mr. Pramod Kumar Jain and Mr. Ankit Jain. The company is engaged in generating bio-mass power and set up a power plant of 12MW in Raigarh, Chhattisgarh. The company has a power purchase agreement (PPA) with Chhattisgarh State Power Distribution Company Limited (CSPDCL) for 20 years for sale of entire 12 MW power.
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| Non-cooperation by the issuer/borrower |
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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
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| 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 ratings based.
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| Rating Sensitivities |
| "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 |
| Particulars | Unit | FY 22 (Provisional) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 52.14 | 51.85 |
| PAT | Rs. Cr. | 1.06 | 0.70 |
| PAT Margin | (%) | 2.03 | 1.35 |
| Total Debt/Tangible Net Worth | Times | 0.25 | 0.27 |
| PBDIT/Interest | Times | 4.40 | 4.43 |
| Status of non-cooperation with previous CRA |
| None |
| Any other information |
| Not Applicable |
| 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 • Rating Process and Timeline: https://www.acuite.in/view-rating-criteria-67.htm • Service Sector: https://www.acuite.in/view-rating-criteria-50.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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