PR

Press Release
P K HOSPITALITY SERVICES PRIVATE LIMITED
September 15, 2022
Rating Downgraded,Reaffirmed and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	30.88	ACUITE BB- \| Downgraded \| Issuer not co-operating*	-
Bank Loan Ratings	74.12	-	ACUITE A4+ \| Reaffirmed \| Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr)	105.00	-	-
Total Withdrawn Quantum (Rs. Cr)	0.00	-	-

Rating Rationale

Acuité has downgraded the long term rating to ‘ACUITE BB-’ (read as ACUITE double B minus) from ‘ACUITE BB’ (read as ACUITE double B) and reaffirmed the short term rating of ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs.105.00 Cr. bank facilities of P K Hospitality Services Private Limited (PKHS). The rating continues to be flagged as an ‘Issuer Not-Cooperating’ based on best available information. The rating is downgraded on account of information risk.

About the Company

P K Hospitality Services Private Limited (PKHS) was established in March 2000, promoted by Mr. Pravin Kumar Agarwal and Mr. Vijay Shinde Kashinath to carry on business of hospitality services. The company has a wide range of fine dining restaurants, take away food kiosks, quick service restaurants (QSR), pubs, airport lounges and hotels. The company is also involved in trading and warehousing of food grains & pulses, providing infrastructure services, engaged in contract of user fee collection and has built a food processing plant to manufacture pulp, paste, sausages and chutneys.The registered office of the company is in Mumbai.

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 non-cooperation 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 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.

About the Rated Entity - Key Financials

The rated entity has not shared the latest financial statements despite repeated requests.

Rating Sensitivity

No information provided by the issuer / available for Acuité to comment upon.

Material Covenants

None

Liquidity Position

No information provided by the issuer / available for Acuité to comment upon.

Outlook

Not Applicable

Other Factors affecting Rating

None

Status of non-cooperation with previous CRA

Not Applicable

Any other information

None

Applicable Criteria

• Service Sector: https://www.acuite.in/view-rating-criteria-50.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

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
18 Jun 2021	Bank Guarantee	Short Term	8.00	ACUITE A4+ ( Issuer not co-operating*)
	Term Loan	Long Term	5.57	ACUITE BB (Downgraded and Issuer not co-operating*)
	Term Loan	Long Term	2.26	ACUITE BB (Downgraded and Issuer not co-operating*)
	Proposed Bank Facility	Short Term	65.00	ACUITE A4+ ( Issuer not co-operating*)
	Term Loan	Long Term	6.45	ACUITE BB (Downgraded and Issuer not co-operating*)
	Cash Credit	Long Term	16.60	ACUITE BB (Downgraded and Issuer not co-operating*)
	Bank Guarantee	Short Term	1.12	ACUITE A4+ ( Issuer not co-operating*)
02 Apr 2020	Term Loan	Long Term	2.26	ACUITE BB+ \| Stable (Downgraded from ACUITE BBB- )
	Term Loan	Long Term	5.57	ACUITE BB+ \| Stable (Downgraded from ACUITE BBB- )
	Cash Credit	Long Term	16.60	ACUITE BB+ \| Stable (Downgraded from ACUITE BBB- )
	Bank Guarantee	Short Term	1.12	ACUITE A4+ (Downgraded from ACUITE A3)
	Proposed Bank Facility	Short Term	65.00	ACUITE A4+ (Downgraded from ACUITE A3)
	Term Loan	Long Term	6.45	ACUITE BB+ \| Stable (Downgraded from ACUITE BBB- )
	Bank Guarantee	Short Term	8.00	ACUITE A4+ (Downgraded from ACUITE A3)
25 Feb 2020	Cash Credit	Long Term	16.60	ACUITE BBB- (Issuer not co-operating*)
	Term Loan	Long Term	2.26	ACUITE BBB- (Issuer not co-operating*)
	Bank Guarantee	Short Term	8.00	ACUITE A3 (Issuer not co-operating*)
	Term Loan	Long Term	6.45	ACUITE BBB- (Issuer not co-operating*)
	Term Loan	Long Term	5.57	ACUITE BBB- (Issuer not co-operating*)
	Bank Guarantee	Short Term	1.12	ACUITE A3 (Issuer not co-operating*)
	Proposed Bank Facility	Short Term	65.00	ACUITE A3 (Issuer not co-operating*)
06 Dec 2018	Term Loan	Long Term	2.26	ACUITE BBB- \| Stable (Assigned)
	Term Loan	Long Term	5.57	ACUITE BBB- \| Stable (Assigned)
	Term Loan	Long Term	6.45	ACUITE BBB- \| Stable (Assigned)
	Cash Credit	Long Term	16.60	ACUITE BBB- \| Stable (Assigned)
	Bank Guarantee	Short Term	8.00	ACUITE A3 (Assigned)
	Bank Guarantee	Short Term	1.12	ACUITE A3 (Assigned)
	Proposed Bank Facility	Short Term	65.00	ACUITE A3 (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Rating
Punjab National Bank	Not Applicable	Bank Guarantee (BLR)	Not Applicable	Not Applicable	Not Applicable	8.00	ACUITE A4+ \| Reaffirmed \| Issuer not co-operating*
Saraswat Bank	Not Applicable	Bank Guarantee (BLR)	Not Applicable	Not Applicable	Not Applicable	1.12	ACUITE A4+ \| Reaffirmed \| Issuer not co-operating*
Punjab National Bank	Not Applicable	Cash Credit	Not Applicable	Not Applicable	Not Applicable	16.60	ACUITE BB- \| Downgraded \| Issuer not co-operating* ( from ACUITE BB )
Not Applicable	Not Applicable	Proposed Short Term Bank Facility	Not Applicable	Not Applicable	Not Applicable	65.00	ACUITE A4+ \| Reaffirmed \| Issuer not co-operating*
Saraswat Bank	Not Applicable	Term Loan	Not available	Not available	Not available	2.26	ACUITE BB- \| Downgraded \| Issuer not co-operating* ( from ACUITE BB )
Saraswat Bank	Not Applicable	Term Loan	Not available	Not available	Not available	5.57	ACUITE BB- \| Downgraded \| Issuer not co-operating* ( from ACUITE BB )
Saraswat Bank	Not Applicable	Term Loan	Not available	Not available	Not available	6.45	ACUITE BB- \| Downgraded \| Issuer not co-operating* ( from ACUITE BB )

Contacts

Analytical	Rating Desk
Pooja Ghosh Vice President-Rating Operations Tel: 022-49294041 pooja.ghosh@acuite.in Abhishek Singh Analyst-Rating Operations Tel: 022-49294065 abhishek.s@acuite.in	Varsha Bist Senior Manager-Rating Operations Tel: 022-49294011 rating.desk@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité.