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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 8.00 | - | ACUITE A4+ | Reaffirmed | Issuer not co-operating* |
| Bank Loan Ratings | 9.00 | ACUITE BB | Downgraded | Issuer not co-operating* | - |
| Total Outstanding Quantum (Rs. Cr) | 17.00 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 0.00 | - | - |
| Rating Rationale |
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Acuité has downgraded the long-term rating to ‘ACUITE BB’ (read as ACUITE double B) from ‘ACUITE BB+’ (read as ACUITE double B plus) and reaffirmed the short-term rating ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs.17.00 Cr bank facilities of N Nageswara Rao and Co (NNRC). The rating continues to be flagged as “Issuer Not-Cooperating” and is downgraded on account of information risk. |
| About the Company |
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N Nageswara Rao and Co (NNRC) was established in 1989 as a partnership firm. The firm is a Special Class I civil contractor for executing Government Works of R&B, Panchayat Raj, NH Road works of Andhra Pradesh state. Its registered office is located at Visakhapatnam (Andhra Pradesh). The firm participates in tenders issued by PWD and other Government departments of AP and the contracts awarded are related to CC roads and B.T. Roads, culverts and Bridges. The firm is promoted by Mr. N Nageswara Rao along with his other two family members. |
| 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 due date. |
| 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 endeavoured to gather information about the entity / industry from the public domain. Therefore, Acuité cautions lenders and investors regarding theuse of such information, on which theindicativecredit rating is based. |
| About the Rated Entity - Key Financials |
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The rated entity has not shared the latest financial statements despite repeated requests. |
| Rating Sensitivity |
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"No information provided by the issuer / available for Acuite to comment upon." |
| Material Covenants |
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None |
| Liquidity Position |
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"No information provided by the issuer / available for Acuite to comment upon." |
| Outlook |
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Not Applicable |
| Status of non-cooperation with previous CRA |
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None |
| Any other information |
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The rated entity has not shared the latest financial statements despite repeated requests. |
| Applicable Criteria |
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• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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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