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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 109.35 | ACUITE BB+ | Downgraded & Withdrawn | Issuer not co-operating* | - |
| Bank Loan Ratings | 7.05 | Not Applicable | Withdrawn | - |
| Bank Loan Ratings | 450.00 | - | ACUITE A4+ | Downgraded & Withdrawn | Issuer not co-operating* |
| Bank Loan Ratings | 50.00 | - | Not Applicable | Withdrawn |
| Total Outstanding | 0.00 | - | - |
| Total Withdrawn | 616.40 | - | - |
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Rating Rationale |
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Acuité has withdrawn & downgraded the long-term rating to ‘ACUITE BB+’ (read as ACUITE double B Plus) from‘ACUITE BBB-’ (read as ACUITE Triple B Minus) and short term rating to 'ACUITE A4+' (Read as ACUITE A Four Plus) fromAcuite A3 (Read as Acuite A Three) on the Rs. 559.35 crore bank facilities of RNS Infrastructure Limited (RNSIL).
However, the long term rating on the Rs.5.75 crore SBI facilities & Rs.1.30 crore Proposed bank facilities and short term rating on the Rs.50.00 crore SBI Facilities of RNS Infrastructure Limited were withdrawn without assigning any rating as the instrument is fully repaid and the NDC has been received from the particular banker. The rating is now flagged as “Issuer Not Cooperating” and is downgraded on account of information risk. The rating is being withdrawn on account of request received from the company and NOC received from the banker as per Acuite's withdrawal policy as applicable to the respected facility/instrument. |
| About the Company |
| RNSIL was incorporated in the year 1961 by Dr. R N Shetty as a partnership firm, M/s R N Shetty and Company. In 2003, the firm was reconstituted as private limited company and in 2006 as public limited company. The Company has successfully executed many landmark infrastructure projects like dams, highways, bridges, tunnels and power houses under the able guidance of Mr. R N Shetty. The Company is registered as a Class I Civil Contractors in the State of Karnataka, Maharashtra, Goa, Tamil Nadu and Andhra Pradesh and completed number of civil construction projects successfully. The company in joint venture with Sunway Construction BHD, Malaysia has completed two prestigious “golden quadrilateral” Project of the National Highways Authority of India covering a distance of 82 kms from Dharwad to Belgaum at an estimated cost of more than Rs. 400 Cr. It has also executed 3 road projects of total length of 150 Kms under World Bank assistance for improving State Highways under Karnataka State Highways Improvement Project and a 120 kms road for Tamil Nadu State Highways Improvement project. The directors of the company are Mr Satish Rama Shetty, Mr Sunil Rama Shetty, Mr. Naveen Rama Shetty, Mr. Sankappa Keremane Shetty, Mr. Shivabasayya Siddaramayya Hiremath and Mr. Samtha Abhayanand Shetty. |
| About the Group |
| RNS Group has diverse interests in construction, properties, automobiles, manufacturing, power, hospitality and education. The group is operating in different segments through companies namely Murudeshwar Ceramics Ltd, Murudeshwar Power Corporation Ltd, RNS Power Ltd, Naveen Hotels Ltd, RNS Motors Ltd, Naveen Mechanised Construction Co.Pvt.Ltd, Naveen Structural & Engineering Co Pvt Ltd, Fire Bricks & Potteries Pvt. Ltd. and R N Shetty Trust. |
| 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. This rating is, therefore, being flagged as “Issuer notcooperating”, in line with prevailing SEBI regulations and Acuité’s policies. Acuité believes that information risk is a critical component in such ratings, and noncooperation by the issuer along with an unwillingness to provide information could be a sign of potential deterioration in its overall credit quality |
| 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 ratingis based. |
| Rating Sensitivities |
| "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 23 (Actual) | FY 22 (Actual) |
| Operating Income | Rs. Cr. | 1030.51 | 402.63 |
| PAT | Rs. Cr. | 37.84 | 14.03 |
| PAT Margin | (%) | 3.67 | 3.49 |
| Total Debt/Tangible Net Worth | Times | 0.54 | 0.63 |
| PBDIT/Interest | Times | 2.70 | 2.25 |
| Status of non-cooperation with previous CRA |
| Not Applicable |
| Any other information |
| None |
| 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 • 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. |
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