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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 0.20 | ACUITE C | Reaffirmed | Issuer not co-operating* | - |
| Bank Loan Ratings | 1.80 | ACUITE D | Downgraded | Issuer not co-operating* | - |
| Bank Loan Ratings | 12.00 | - | ACUITE D | Downgraded | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 14.00 | - | - |
| Rating Rationale |
| Acuité has downgraded its long term rating to ‘ACUITE D' (read as ACUITE D)’ from ‘ACUITE C' (read as ACUITE C) and short term rating to ‘ACUITE D' (read as ACUITE D)’ from 'ACUITE A4' (read as ACUITE A four) on Rs 13.80 crore bank facilities. The long term rating is reaffirmed to 'ACUITE C' (read as ACUITE C) on bank facilities Rs 0.20 crore of SLR Construction Private Limited. The rating continues to be flagged as “Issuer Not Cooperating”. The downgrade is on account of default reported in public notice published under Securitization & Reconstruction of Financial Assets & Enforcement of Security Interest Act (SARFAESI), 2002. |
| About the Company |
| SLR Construction Private Limited (SLRCPL) was incorporated in 2006, by Mr. Shiv Kumar Bansal and his family, based in Delhi. The company is a class A civil contractor for CNG stations and buildings. Company is engaged into tender bases business where the company constructs work station/terminal in the pipeline project. All the projects are operated through GAIL (Gas Authority of India Limited), India’s state-owned natural gas Processing and Distribution Company. |
| 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-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 ratingis based. |
| Rating Sensitivity |
| No information provided by the issuer / available for Acuite to comment upon. |
| Material Covenants |
| None |
| 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 20 (Actual) | FY 19 (Actual) |
| Operating Income | Rs. Cr. | 21.98 | 21.49 |
| PAT | Rs. Cr. | 0.41 | 0.26 |
| PAT Margin | (%) | 1.87 | 1.20 |
| Total Debt/Tangible Net Worth | Times | 0.79 | 1.08 |
| PBDIT/Interest | Times | 2.74 | 1.94 |
| Status of non-cooperation with previous CRA |
| None |
| Any other information |
| Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups. |
| Applicable Criteria |
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• Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.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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