Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 5.70 ACUITE B+ | Downgraded | Issuer not co-operating* -
Total Outstanding 5.70 - -
 
Rating Rationale

­Acuité has downgraded the long-term rating to 'ACUITE B+' (read as ACUITE B plus) from ‘ACUITE BB-’ (read as ACUITE double B minus) on the Rs. 5.70 Cr. bank facilities of Rajpet Energy LLP (REL). The rating continues to be flagged as “Issuer Not-Cooperating” and is downgraded on account of information risk.


About the Company

­­Karnataka based, Rajpet Energy LLP (REL) was established as a Limited Liability Partnership in June, 2016 by Mr. Prasad Reddy Kambam and family. The firm is running 1.1 MW solar power plant at Kolar, Karnataka. The firm has PPA of 25 years with Bangalore Electricity Supply Company Limited (BESCL).

 
About the Group

­Acuité has consolidated the business and financial risk profile of Raygen Power Private Limited (RPPL) and Rajpet Energy LLP (REL). Raygen Power Private Limited was incorporated in August 2015. The company runs a solar power plant of 3.3 MW at Kolar (Karnataka). The company has PPA agreement with Chamundeshwari Electricity Supply Corporation Limited (CESCL), Mysore for 25 years. Karnataka based, Rajpet Energy LLP (REL) was established as a Limited Liability Partnership in June, 2016 by Mr. Prasad Reddy Kambam and family. The firm is running 1.1 MW solar power plant at Kolar, Karnataka. The firm has PPA of 25 years with Bangalore Electricity Supply Company Limited (BESCL).

 
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 non-cooperation 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 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.

 
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
 

Particulars Unit FY 21 (Actual) FY 20 (Actual)
Operating Income Rs. Cr. 5.78 6.09
PAT Rs. Cr. 1.53 2.97
PAT Margin (%) 26.49 48.74
Total Debt/Tangible Net Worth Times 0.51 0.84
PBDIT/Interest Times 3.68 4.02
Status of non-cooperation with previous CRA

­­Not Applicable

 
Any other information
­None
 
Applicable Criteria
• Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.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
• Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.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
04 Apr 2023 Term Loan Long Term 2.09 ACUITE BB- (Reaffirmed & Issuer not co-operating*)
Proposed Cash Credit Long Term 3.61 ACUITE BB- (Reaffirmed & Issuer not co-operating*)
06 Jan 2022 Term Loan Long Term 2.09 ACUITE BB- (Reaffirmed & Issuer not co-operating*)
Proposed Cash Credit Long Term 3.61 ACUITE BB- (Reaffirmed & Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
Not Applicable Not avl. / Not appl. Proposed Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.61 Simple ACUITE B+ | Downgraded | Issuer not co-operating* ( from ACUITE BB- )
Kotak Mahindra Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.09 Simple ACUITE B+ | Downgraded | Issuer not co-operating* ( from ACUITE BB- )
­

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