Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 8.50 ACUITE C | Reaffirmed | Issuer not co-operating* -
Bank Loan Ratings 5.50 - ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 14.00 - -
Total Withdrawn Quantum (Rs. Cr) 0.00 - -
 
Rating Rationale
­Acuité has reaffirmed the long term rating of ‘ACUITE C’ (read as ACUITE C) and the short term rating of ‘ACUITE A4’ (read as ACUITE A four) to the Rs. 14.00 Cr bank facilities of Solas Fire Safety Equipment Private Limited (SFSEPL). The rating continues to be flagged as “Issuer Not Co-operating” and is based on the best available information.

About the Company
­Solas Fire Safety Equipment Private Limited (SFPL) was established as a proprietorship firm in 1998 and later reconstituted as a private limited company on 18th July, 2002. It is a Bangalore-based company, promoted by Mr. Nagraj R Shenoy and his wife Mrs. Kavitha Shenoy. The company has experience in fire safety and security solutions in major areas like design & engineering, site assembly & installation, annual maintenance, etc. to name a few.
 
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 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 prev ailing SEBI regulations and Acuité’s policies.
 
Limitation regarding information availability:
­The rating is based on information av ailable from sources other than the issuer / borrower (in the absence of information prov ided by the issuer / borrower). Acuité endeav ored to gather information about the entity / industry from the public domain. Therefore, Acuité cautions lenders and inv estors regarding the use of such information, on which the indicativ e credit rating is based.
 
Rating Sensitivity
­No information provided by the issuer/ available for Acuité to comment upon.
 
Material Covenants
­None
 
Liquidity Position
­­No information provided by the issuer/ available for Acuité to comment upon.
 
Outlook
­­Not Applicable
 
Other Factors affecting Rating
­­Not Applicable
 

Particulars Unit FY 22 (Actual) FY 21 (Actual)
Operating Income Rs. Cr. 11.15 20.04
PAT Rs. Cr. 0.07 0.43
PAT Margin (%) 0.61 2.17
Total Debt/Tangible Net Worth Times 0.83 0.94
PBDIT/Interest Times 1.30 1.57
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
• Service Sector: https://www.acuite.in/view-rating-criteria-50.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.
 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
13 Oct 2021 Bank Guarantee Short Term 5.50 ACUITE A4 ( Issuer not co-operating*)
Proposed Bank Facility Long Term 4.05 ACUITE C ( Issuer not co-operating*)
Secured Overdraft Long Term 4.45 ACUITE C ( Issuer not co-operating*)
15 Jul 2020 Bank Guarantee Short Term 5.50 ACUITE A4 (Reaffirmed)
Secured Overdraft Long Term 4.45 ACUITE C (Downgraded from ACUITE B+)
Proposed Bank Facility Long Term 4.05 ACUITE C (Downgraded from ACUITE B+)
14 Oct 2019 Bank Guarantee Short Term 5.50 ACUITE A4 (Issuer not co-operating*)
Proposed Bank Facility Long Term 4.05 ACUITE B+ (Issuer not co-operating*)
Cash Credit Long Term 4.45 ACUITE B+ (Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Canara Bank Not Applicable Bank Guarantee/Letter of Guarantee Not Applicable Not Applicable Not Applicable 5.50 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
Not Applicable Not Applicable Proposed Long Term Bank Facility Not Applicable Not Applicable Not Applicable 4.05 Simple ACUITE C | Reaffirmed | Issuer not co-operating*
Canara Bank Not Applicable Secured Overdraft Not Applicable Not Applicable Not Applicable 4.45 Simple ACUITE C | Reaffirmed | Issuer not co-operating*

Contacts
Analytical Rating Desk
About Acuité Ratings & Research
Acuité Ratings & Research Limitedwww.acuite.in