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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 251.68 | ACUITE BB | Reaffirmed | Issuer not co-operating* | - |
| Bank Loan Ratings | 36.57 | - | ACUITE A4+ | Reaffirmed | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 288.25 | - | - |
| Rating Rationale |
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Acuité has reaffirmed its long-term rating of ‘ACUITE BB’ (read as ACUITE BB) and shortterm rating of ‘ACUITE A4+’ (read as ACUITE A four 'plus') on the Rs.288.25 Cr bank facilities of MAVERICK HOLDINGS AND INVESTMENTS PRIVATE LIMITED (MHIPL). This rating is now an indicative rating and is based on the best available information. |
| About the Company |
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MHIPL, incorporated in 1991, is a Bangalore-based company promoted by Mr. B.N. Garudachar, and Mr. B.G. Uday. The company operates three shopping malls, namely, Garuda Mall, Garuda Swagath Mall, and Garuda Yelahanka Mall in Bangalore. The company is also engaged as a civil contractor for redevelopment projects (mainly for the government).
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| About the Group |
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The Maverick group is engaged in land development. MHIPL, established in 1991, operates three shopping malls (Garuda Magrath, Garuda Swagath and Garuda Yehalanka) in Bengaluru, Karnataka. Maverick Holdings is also a class I EPC contractor and undertake only government projects includes Pradhan Mantri Awas Yojna (PMAY) and Bangalore Development Authorities projects (BDA). Euroamer Garuda Resorts (India) Private Limited (EGRIPL) is a group company responsible for facility management of Garuda mall
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| Non-cooperation by the issuer/borrower |
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Acuité has been requesting for No Default Statements (NDS); however, despite multiple requests; the Company’s management has remained non-cooperative and not submitted the NDS for the preceding 03 consecutive months. Acuité has also 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 has 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.
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| Rating Sensitivities |
| No information provided by the issuer / available for Acuite to comment upon |
| Material Covenants |
| None |
| Liquidity Position |
| No information provided by the issuer / available for Acuite to comment upon |
| Outlook: Not applicable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 22 (Provisional) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 110.76 | 77.28 |
| PAT | Rs. Cr. | 1.65 | (7.24) |
| PAT Margin | (%) | 1.49 | (9.36) |
| Total Debt/Tangible Net Worth | Times | 2.25 | 2.16 |
| PBDIT/Interest | Times | 1.17 | 0.86 |
| Status of non-cooperation with previous CRA |
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Crisil Ratings, vide its press release dated March 15, 2023 had denoted the rating to Maverick Holdings and Investment Pvt Ltd as 'CRISIL B+/Stable/A4' (Issuer Not Cooperating)' on account of lack of adequate information required for monitoring of ratings.
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| Any other information |
| Acuité is not in receipt of the “No Default Statement (NDS)" since March 2023 |
| Applicable Criteria |
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• 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 • 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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