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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 301.87 | ACUITE B+ | Reaffirmed | Issuer not co-operating* | - |
| Bank Loan Ratings | 27.15 | - | ACUITE A4 | Reaffirmed | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 329.02 | - | - |
| Rating Rationale |
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Acuité has reaffirmed the long-term rating of ‘ACUITE B+’ (read as ACUITE B plus) and the short term rating of ‘ACUITE A4’ (read as ACUITE A four) on the Rs. 329.02 crore bank facilities of MEP Sanjose Talaja Mahuva Road Private Limited (MEPSTM). The rating continues to be flagged as “Issuer Not-Cooperating” and is based on best available information.
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| About the Company |
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Mumbai based,MEP Sanjose Talaja Mahuva Road Private Limited (MEPSTM) is a special-purpose vehicle (SPV) and a joint venture of MEP Infrastructures Developers Private Limited (MEPIDPL), incorporated in 2016 to undertake the construction of 4-lane road between Talaja and Mahuva, in Gujarat. The project road is a section of National Highway-8E, with a total length of 45.46 kilometers. The project has been awarded by the National Highways Authority of India (NHAI), which is to be executed under HAM on a design-build-finance operate-and-transfer basis. The concession period is 15 years and the construction period is 2.5 years, based on semi-annual annuity payment. The project cost is Rs 643.05 crore and is funded through term loans of Rs 289.37 crore, equity of Rs 96.46 crore and grant of Rs.257.22 crore. MEPSTM signed the concession agreement with NHAI on July 08, 2016. The appointed date was obtained in April 2017 (revised) and the scheduled commercial operation date (COD) was June 02, 2019; but due to delays in execution, the revised COD was in March 2020. MEPSMK’s directors are Mr. Sameer Anil Apte, Mr. Yogita Ravindranath Walavalkar and Mr. Guillermo Manuel Sansano Fuentes.
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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 an 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 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 rating is based.
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| Rating Sensitivity |
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"No information provided by the issuer/ available for Acuite to comment upon."
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| Material Covenants |
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Not Applicable
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| Liquidity Position |
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"No information provided by the issuer/ available for Acuite to comment upon."
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| Outlook |
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Not Applicable
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| Other Factors affecting Rating |
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Not Applicable
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| Particulars | Unit | FY 21 (Actual) | FY 20 (Actual) |
| Operating Income | Rs. Cr. | 10.64 | 36.52 |
| PAT | Rs. Cr. | (14.42) | 26.14 |
| PAT Margin | (%) | (135.46) | 71.58 |
| Total Debt/Tangible Net Worth | Times | 2.51 | 1.15 |
| PBDIT/Interest | Times | 0.51 | 3.01 |
| Status of non-cooperation with previous CRA |
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Not Applicable
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| Any other information |
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Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups
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| 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 |
| 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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