Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 8.00 ACUITE B | Reaffirmed | Issuer not co-operating* -
Bank Loan Ratings 42.00 - ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding 50.00 - -
 
Rating Rationale

­Acuité has reaffirmed the long-term rating of ‘ACUITE B’ (read as ACUITE B ) and short-term rating of Acuite A4 (read as Acuite A four) on the Rs.50.00 Cr bank facilities of Saumya Construction (SC). The rating is now flagged as “Issuer Not-Cooperating” and based on the best available information.

Acuite had sent repeated reminders to the company for sharing critical information and documents for surveillance of the ratings; but, despite multiple requests, the management has remained non-cooperative in providing any information. Further, Acuite has not received the No Default Statement(NDS) from the client for last 3 consecutive months. 

About the Firm
Incorporated in 2001, Saumya Construction (SC) is an EPC contractor and takes up various government contracts related to construction work such as commercial structures, industrial buildings, affordable housing and lake and river development projects. The firm is promoted by Mr. Vasant Patel who is a Civil Engineer and has over two decades of experience in the civil constructions industry. Currently the firm is working on executing lake development and river rejuvenation projects under the Smart City Mission in Bihar.
 
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 noncooperation 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 rating is based.
 
Rating Sensitivities
­No information provided by the issuer / available for Acuite to comment upon
 
All Covenants
­Not Applicable
 
Liquidity Position
­No information provided by the issuer / available for Acuite to comment upon
 
Outlook: Not Applicable
­
 
Other Factors affecting Rating
­Not Applicable
 

Particulars Unit FY 22 (Actual) FY 21 (Actual)
Operating Income Rs. Cr. 3.72 5.59
PAT Rs. Cr. 0.29 0.20
PAT Margin (%) 7.92 3.59
Total Debt/Tangible Net Worth Times 4.52 2.57
PBDIT/Interest Times 3.53 6.70
Status of non-cooperation with previous CRA
­Not Applicable
 
Any other information
Acuite is yet to recieve 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
01 Mar 2023 Cash Credit Long Term 8.00 ACUITE B | Stable (Assigned)
Bank Guarantee Short Term 42.00 ACUITE A4 (Assigned)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
The Mehsana Urban Cooperative Bank Ltd Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 42.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
The Mehsana Urban Cooperative Bank Ltd Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 8.00 Simple ACUITE B | Reaffirmed | Issuer not co-operating*

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