Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 19.40 ACUITE B- | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 2.60 - ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding 22.00 - -
 
Rating Rationale

­Acuité has downgraded the long-term rating to ‘ACUITE B-' (read as ACUITE  B minus) from 'Acuite BB-' (read as Acuite double B minus) on the Rs.19.40 Cr. bank facilities of NNM Securities Private Limited (NSPL).

Acuité has reaffirmed the short-term rating to 'ACUITE A4' (read as ACUITE A four) on the Rs. 2.60 Cr. bank facilities of NNM Securities Private Limited (NSPL).

The rating  continues to be flagged as "Issuer not corporating' and is based on the best avaliable information. The rating has been downgraded on account of  information risk and regulatory charges levied by SEBI with regards to indluging in creation of artificial market and price manipulation of Bhatia communications & retail (india) ltd and other charges which includes misusing of client funds and securities, inaccurate reporting,  non-compliance with account norms and failed to maintain stock mismatch alerts.

About the Company
­Mumbai based NNM Securities Private Limited (NSPL) is a financial and stock broking company incorporated in 1997. NSPL is a member of the Bombay Stock Exchange (BSE), and National Stock Exchange (NSE) for equity, F&O, and currency derivatives segments. The company is also registered as a depository participant with Central Depository Services Limited (CDSL). NSPL is promoted by Mr. Nikunj Mittal and Mr. Apurva Mittal.
 
Unsupported Rating
­Not Applicable
 
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 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:
­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.
 
Rating Sensitivity
­"­No information provided by the issuer / available for Acuite to comment upon."
 
Liquidity Position
­"No information provided by the issuer / available for Acuite to comment upon."
 
Outlook:Not Applicable
­
 
Other Factors affecting Rating
­None
 
Key Financials :
Particulars Unit FY2022(Actual) FY2021(Actual)
Operating Income Rs. Cr. 30.41 5.48
PAT Rs. Cr. 23.29 2.22
PAT
Margin		 (%) 76.60 40.42
Total debt/tangible worth Times 0.31 0.88
PBDIT/Interest Times 77.24 3.64
­
 
Status of non-cooperation with previous CRA
­Not Applicable
 
Any other information
­None
 
Applicable Criteria
• Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.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
26 Apr 2024 Bank Guarantee/Letter of Guarantee Short Term 2.60 ACUITE A4 (Downgraded & Issuer not co-operating* from ACUITE A4+)
Secured Overdraft Long Term 3.00 ACUITE BB- (Downgraded & Issuer not co-operating* from ACUITE BB | Stable)
Proposed Long Term Bank Facility Long Term 16.40 ACUITE BB- (Downgraded & Issuer not co-operating* from ACUITE BB | Stable)
31 Jan 2023 Bank Guarantee/Letter of Guarantee Short Term 2.60 ACUITE A4+ (Reaffirmed)
Secured Overdraft Long Term 3.00 ACUITE BB | Stable (Reaffirmed)
Proposed Long Term Bank Facility Long Term 16.40 ACUITE BB | Stable (Reaffirmed)
02 Nov 2021 Proposed Long Term Bank Facility Long Term 8.90 ACUITE BB (Reaffirmed & Issuer not co-operating*)
Bank Guarantee/Letter of Guarantee Short Term 3.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
Secured Overdraft Long Term 10.10 ACUITE BB (Reaffirmed & Issuer not co-operating*)
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Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)		 Complexity Level Rating
Bank of India Not avl. / Not appl. Bank Guarantee/Letter of Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.60 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 16.40 Simple ACUITE B- | Downgraded | Issuer not co-operating* ( from ACUITE BB- )
Bank of India Not avl. / Not appl. Secured Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.00 Simple ACUITE B- | Downgraded | Issuer not co-operating* ( from ACUITE BB- )
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