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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 28.50 | ACUITE BB- | Downgraded & Withdrawn | Issuer not co-operating* | - |
| Bank Loan Ratings | 54.00 | Not Applicable | Withdrawn | - |
| Total Outstanding | 0.00 | - | - |
| Total Withdrawn | 82.50 | - | - |
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Rating Rationale |
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Acuité has downgraded and withdrawn the long-term rating at ‘ACUITE BB- (read as ACUITE double B minus)’ from ‘ACUITE BB (read as ACUITE double B)’ on Rs. 28.50 crore bank facilities of Sangath Infrastructures Private Limited. The rating has been withdrawn as per Acuité's policy of withdrawal of ratings as applicable to the respective instrument/facility. The rating has been withdrawn on account of the request received from the company and the NOC(No Objection Certificate) received from the banker.
Acuité has also withdrawn the long term rating on the Rs.54.00 crore bank facilities without assigning any rating of Sangath Infrastructures Private Limited as the instrument is fully repaid. The rating has been withdrawn as per Acuité's policy of withdrawal of ratings as applicable to the respective instrument/facility. The rating has been withdrawn on account of the request received from the company and the NDC (No Dues Certificate) received from the banker. The rating is flagged as “Issuer Not Cooperating” and is based on the best available information. The rating is downgraded on account of information risk. |
| About the Company |
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Incorporated in 2010, Sangath Infrastructures Private Limited is a flagship company of Sangath Group. The Group is into construction and development of commercial and residential properties since 1981. Sangath Group has completed 30 projects and 2700 individual units in a span of 40 Years. The group is currently managed by Mr Sanjaykumar Ambalal Jain, his brother Mr Jiteshkumar Ambalal Jain and their sons Mr Sarang Sanjay Jain and Mr Jinang Jitesh Jain. The group has developed an area of 50 lakh square feet so far. The Group is mostly engaged in residential real estate which constitutes of 85% of development with majority of projects being completed in Northern Ahmedabad and Gandhinagar region of Gujarat.
SIPL is currently developing two residential projects namely Smart Life 1 & Smart Life 2 in Gift City, Gandhinagar. Both of the projects are 21 floor- 2 tower residential apartment with space on ground floor for commercial shops. Smart Life 1 has a total 178 flats & 11 shops with a total saleable area of 1,12,538 square feet whereas Smart Life 2 has a total 178 flats & 11 shops with a total saleable area of 1,12,096 square feet. The cost of the project for Smart Life 1 & Smart Life 2 are Rs 153.40 Cr. (excluding finance cost). |
| Unsupported Rating |
| Not Applicable |
| 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 the due date. Acuité believes that information risk is a critical component in such ratings, and non co-operation 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 Acuite to comment upon."
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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: Not Applicable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 23 (Actual) | FY 22 (Actual) |
| Operating Income | Rs. Cr. | 57.60 | 46.33 |
| PAT | Rs. Cr. | 7.17 | 5.23 |
| PAT Margin | (%) | 12.45 | 11.29 |
| Total Debt/Tangible Net Worth | Times | 1.23 | 1.42 |
| PBDIT/Interest | Times | 3.03 | 2.44 |
| 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 • 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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