|
Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
Bank Loan Ratings | 60.50 | ACUITE BB+ | Downgraded | Issuer not co-operating* | - |
Bank Loan Ratings | 350.00 | - | ACUITE A4+ | Downgraded | Issuer not co-operating* |
Total Outstanding | 410.50 | - | - |
Total Withdrawn | 0.00 | - | - |
* The issuer did not co-operate; based on best available information. |
Rating Rationale |
Acuité has downgraded its long-term rating to ‘ACUITE BB+’ (read as ACUITE double B plus) from ‘ACUITE BBB+’ (read as ACUITE Triple B Plus) and its short-term rating to ’ACUITE A4+’ (read as ACUITE A Four Plus) from ’ACUITE A2’ (read as ACUITE A Two) on the Rs. 410.50 crore bank facilities of Sri Srinivasa Constructions India Private Limited (SSCIPL). The rating is now flagged as “Issuer Not-Cooperating” on account of information risk and is 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 company has remained non-cooperative in providing any information. The rating downgrade is on account of information risk |
About the Company |
The Karnataka based, Sri Srinivasa Constructions (SSC) was established in 1992 as a partnership firm by Mr. Y. Pitcheswara Rao and Mr. Y.V.S. Rama Krishna. In the year 2009, Sri Srinivasa Constructions India Private Limited (SSCIPL) was incorporated to take over the running operations of SSC. The company promoted by promoters is engaged in undertaking civil construction works including water supply projects, buildings, irrigation projects, industrial projects, road projects and power transmission projects in Karnataka, Andhra Pradesh, Tamil Nadu, Meghalaya and Telangana.
SSCIPL is a registered Class 1 contractor for various departments including Public Work Departments (PWD), Panchayat Raj Engineering Department (PRED), Public Health Engineering Department (PHED) among others. The present directors of the company are Mr. Yaralagadda Pitcheswara Rao and Mr. Yarlagadda Ramakrishna Venkatashiva |
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
|
Liquidity Position |
No information provided by the issuer / available for Acuite to comment upon
|
Outlook |
Not Applicable
|
Other Factors affecting Rating |
None
|
Particulars | Unit | FY 23 (Actual) | FY 22 (Actual) |
Operating Income | Rs. Cr. | 343.92 | 393.04 |
PAT | Rs. Cr. | 15.97 | 18.04 |
PAT Margin | (%) | 4.64 | 4.59 |
Total Debt/Tangible Net Worth | Times | 0.56 | 0.10 |
PBDIT/Interest | Times | 3.75 | 7.87 |
Status of non-cooperation with previous CRA |
Not Applicable
|
Any other information |
None
|
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 |
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
* The issuer did not co-operate; based on best available information. |
Contacts |
About Acuité Ratings & Research |
© Acuité Ratings & Research Limited. All Rights Reserved. | www.acuite.in |