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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 2.00 | ACUITE B+ | Reaffirmed & Withdrawn | Issuer not co-operating* | - |
| Bank Loan Ratings | 28.00 | - | ACUITE A4 | Reaffirmed & Withdrawn | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 0.00 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 30.00 | - | - |
| Rating Rationale |
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Acuité has reaffirmed & withdrawn its long term rating of ‘ACUITE B+’ (read as ACUITE B plus) and short term rating of 'ACUITE A4' (read as ACUITE A four) on the Rs.30 crore bank facilities of PVR Constructions. The rating withdrawal is in accordance with the Acuité’s policy on withdrawal of rating. This rating continues to be an indicative rating and is based on best available information. The rating is being withdrawn on account of request received from the company and NOC received from the banker. |
| About the Company |
| Established in 2015, PVR Constructions is a proprietorship firm engaged in electrical and civil contraction work, related to transmission & distribution lines for government authorities of Karnataka, Telangana, Andhra Pradesh to name a few. It has started bidding for Chattisgarh and Uttar Pradesh government’s projects from FY2020. However, it majorly caters to private sector players like Welspun, Greenco, Hero Future, Haziur Power, etc. Company caters majorly to private sector companies because of their immediate payments after raising the bills. Now, in FY2020 it has started bidding for government projects too because of the slowdown in private sector projects. The day to day operations are managed by its proprietor, Mr. Ramana. Initially, Mr. Ramana was associated with running a granite unit at Tadipatri. Keeping in view the limited scope for expansion of Granite slab polishing industry, he diversified into the power sector. Overall, proprietor has an experience of around two decades in the civil construction industry. Revenues registered for the period April, 2019 to September, 2019 is around Rs.68.03 crore. It is expected to be around Rs.200.00 crore by the end of this financial year. Next month firm will be raising a bill of around Rs.50.00 crore to Andhra Pradesh project. The registered office is in Banglore. |
| 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 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. |
| Material Covenants |
| None |
| Liquidity Position |
| No information provided by the issuer / available for Acuite to comment upon |
| Outlook |
| Not Available. |
| Key Financials |
| The issuer has not provided the latest financials for Acuite to comment upon. |
| Status of non-cooperation with previous CRA |
| None. |
| Any other information |
| Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups |
| 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 |
| https://www.acuite.in/view-rating-criteria-55.htm |
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