Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 10.50 ACUITE BB | Reaffirmed | Issuer not co-operating* -
Bank Loan Ratings 18.50 - ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 29.00 - -
 
Rating Rationale
­Rating Rationale
­Acuité has reaffirmed a long term rating of ‘ACUITE BB’ (read as ACUITE Double B) to the Rs 29.00 crore bank facilities of Rawatsons Engineers Private Limited. The rating is now flagged as “Issuer Not Cooperating” based on account of information risk.

Acuite had sent repeated reminders to the company for sharing critical information and documents for surveillance of the ratings; but, despite multiple requests; the company’s management has remained non-cooperative in providing any information. However, the banker has provided their feedback that the conduct of the account is satisfactory.

About the Company
­Incorporated in 1981, Rawatsons Engineers Private Limited (REPL), is a Kolkata-based company engaged in the development of railway infrastructure. REPL mainly constructs steel bridge girders, foot over bridges and platform shelters. The company is promoted by Mr. Pradeep Rawat, Mr. Prajesh Rawat and Mr. Damaru Rawat. 
 
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 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 ratings based.
 
Rating Sensitivities
­"No information provided by the issuer / available for Acuite to comment upon."
 
All Covenants
­None
 
Liquidity Position
­"No information provided by the issuer / available for Acuite to comment upon."
 
Outlook
None
 
Other Factors affecting Rating
­Not Applicable
 

Particulars Unit FY 22 (Provisional) FY 21 (Actual)
Operating Income Rs. Cr. 82.18 74.68
PAT Rs. Cr. 1.19 0.62
PAT Margin (%) 1.45 0.83
Total Debt/Tangible Net Worth Times 0.48 0.65
PBDIT/Interest Times 2.72 2.38
Status of non-cooperation with previous CRA
­Not Applicable
 
Any other information
Acuite is yet to receive the latest No Default Statement from the rated entity despite repeated requests and followups.
 
Applicable Criteria
• 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
• Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.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
02 Aug 2022 Standby Line of Credit Short Term 1.50 ACUITE A4+ (Reaffirmed)
Bank Guarantee Short Term 17.00 ACUITE A4+ (Reaffirmed)
Cash Credit Long Term 10.50 ACUITE BB | Stable (Downgraded from ACUITE BB+ | Stable)
12 May 2021 Bank Guarantee Short Term 17.00 ACUITE A4+ (Reaffirmed)
Cash Credit Long Term 10.50 ACUITE BB+ | Stable (Upgraded from ACUITE BB )
Letter of Credit Short Term 1.50 ACUITE A4+ (Reaffirmed)
06 Jan 2021 Cash Credit Long Term 10.00 ACUITE BB (Downgraded and Issuer not co-operating*)
Bank Guarantee Short Term 17.00 ACUITE A4+ (Issuer not co-operating*)
Proposed Bank Facility Short Term 0.50 ACUITE A4+ (Issuer not co-operating*)
Standby Line of Credit Short Term 1.50 ACUITE A4+ (Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
State Bank of India Not Applicable Bank Guarantee/Letter of Guarantee Not Applicable Not Applicable Not Applicable 17.00 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*
State Bank of India Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 10.50 Simple ACUITE BB | Reaffirmed | Issuer not co-operating*
State Bank of India Not Applicable Stand By Line of Credit Not Applicable Not Applicable Not Applicable 1.50 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*

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