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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 96.04 | ACUITE BB+ | Downgraded | Issuer not co-operating* | - |
| Total Outstanding | 96.04 | - | - |
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Rating Rationale |
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Acuité has downgraded long-term rating to 'ACUITE BB+' (read as ACUITE Double B plus) from 'ACUITE BBB-' (read as ACUITE Triple B minus) on the Rs.96.04 Crore bank facilities of Saifco Hillcrest Hotels Private Limited. The rating is now indicative and is based on best available information.
The rating downgrade is on account of information risk. |
| About the Company |
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Srinagar based, Saifco Hillcrest Hotels Private Limited (SHPL) was incorporated as a private limited company in the year 2006 under the provisions of the Companies Act, 1956 with ROC, J&K. The main object of the entity inter-alia, include to carry on the business of hotels, restaurants, cafes, etc. The registered office is located at Kralsangri, Brene, Nishat, Srinagar, Kashmir. The company is managed by Mr. Manzoor Ahmad Guna, Mr. Altaf Ahmad Guna, Mr. Mohammad Khalil Guna, Mrs. Mumtaz Banoo, Mr. Ghulam Hassan Baba, Mr. Dawood Altaf Guna, Mr. Amir Manzoor Guna, Mrs. Parveez Ahmad Guna, Mr. Ruhail Manzoor Guna and Mr. Suhail Manzoor Guna as directors of the company.
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| Unsupported Rating |
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Not Applicable
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| Non-cooperation by the issuer/borrower |
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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 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.
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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 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 |
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No information provided by the issuer / available for Acuité to comment upon.
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| Liquidity Position |
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No information provided by the issuer / available for Acuité to comment upon.
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| Outlook |
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Not Applicable
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| Other Factors affecting Rating |
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None
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| Particulars | Unit | FY 23 (Actual) | FY 22 (Actual) |
| Operating Income | Rs. Cr. | 85.24 | 47.74 |
| PAT | Rs. Cr. | 26.38 | 3.52 |
| PAT Margin | (%) | 30.95 | 7.37 |
| Total Debt/Tangible Net Worth | Times | (2.64) | (5.23) |
| PBDIT/Interest | Times | 4.82 | 1.42 |
| 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 • Service Sector: https://www.acuite.in/view-rating-criteria-50.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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