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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 21.50 | ACUITE BB | Reaffirmed | Issuer not co-operating* | - |
| Total Outstanding Quantum (Rs. Cr) | 21.50 | - | - |
| Rating Rationale |
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Acuité has reaffirmed its long-term rating of ‘ACUITE BB’ (read as ACUITE double B') on the Rs. 21.50 Cr bank facilities of Raaga Mayuri Builders Private Limited (RMBPL).
This rating is now an indicative rating and is based on the best available information. |
| About the Company |
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Raaga Mayuri Builders Private Limited (RMBPL), incorporated in 27th of December, 2002, is a Kurnool (Andhra Pradesh) based real estate developer involved in constructing residential and commercial projects and leasing activities. RMBPL is promoted by Mr Konikanti Janardhana Reddy Ms Vanipenta Mani Reddy. RMBPL has completed more than 31 projects in and around Kurnool and Hyderabad city, totaling around 2.5 million Sq. feet (mnsf) including residential and commercial buildings. RMBPL also has entered into long term lease agreements with reputed clientele like, Narayana Educational Society, NSPIRA Management Services Private Limited, Ramesh Hospitals with the total leasable area of ~2.00 lakh square feet leasable area. These agreements have a tenure ranging from10-20 years with price escalation of 5 per cent.
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| Non-cooperation by the issuer/borrower |
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Acuité has been requesting for No Default Statements (NDS); however, despite multiple requests; the Company’s management has remained non-cooperative and not submitted the NDS for the preceding 03 consecutive months. Acuité has also 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.
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| 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 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.
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| Rating Sensitivities |
| No information provided by the issuer / available for Acuite to comment upon. |
| Material Covenants |
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None
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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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None
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| Other Factors affecting Rating |
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None
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| Particulars | Unit | FY 22 (Provisional) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 37.99 | 35.30 |
| PAT | Rs. Cr. | 1.59 | 1.34 |
| PAT Margin | (%) | 4.19 | 3.80 |
| Total Debt/Tangible Net Worth | Times | 0.80 | 0.74 |
| PBDIT/Interest | Times | 2.75 | 3.11 |
| 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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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Real Estate Entities: https://www.acuite.in/view-rating-criteria-63.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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