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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 4.00 | ACUITE BB+ | Downgraded | Issuer not co-operating* | - |
| Bank Loan Ratings | 51.00 | - | ACUITE A4+ | Downgraded | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 55.00 | - | - |
| Rating Rationale |
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Acuite has downgraded its long term rating from 'ACUITE BBB' (read as Acuite Triple B) to 'ACUITE BB+' (read as Acuite double B plus ) on Rs. 4.00 Cr. long term bank facilities and further downgraded its short term rating from 'ACUITE A3+' (read as Acuite A three plus) to 'ACUITE A4+' (read as Acuite A four plus) on Rs. 51.00 Cr. short term bank facilites of SRM Contractors Private Limited. The rating is now indicative as 'Issuer Not Cooperating' and based on best available information.
Rationale for rating action The rating has been migrated to INC (issuer not cooperating) category as the issuer has failed to submit No Default Statement (NDS) for the last three month ended July 31, 2023. Acuite has made attempts to seek information from the issuer with regards to the recent developments but has not received any response. |
| About the Company |
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SRM Contractors Private Limited is a Jammu based company was incorporated in September 2008. The company is engaged in Infrastructural projects such as roads, bridges, canals, dams, tunnels and small hydro projects. The company has in past executed various work orders for both Private and Government clients. The company is managed by Mr. Sanjay Mehta (Managing Director), who has 18 years of experience in Administration, Manufacturing & construction field. Vinod Kohli has more than 38 years of experience in execution of civil projects especially in Irrigation & flood control, tunnels and hydropower. Mr. Vikas Vaid has more than 20 years of experience in project planning and execution.
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| Non-cooperation by the issuer/borrower |
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Acuité has been requesting for No Default Statements (NDS); however, despite multiple requests; the Company’s management has remained non-cooperative and not submitted the NDS for the preceding 03 consecutive months.
Acuité had also requested for data/clarifications, 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 |
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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 has 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 |
| "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 |
| None |
| Particulars | Unit | FY 22 (Provisional) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 263.63 | 161.13 |
| PAT | Rs. Cr. | 14.64 | 7.75 |
| PAT Margin | (%) | 5.55 | 4.81 |
| Total Debt/Tangible Net Worth | Times | 0.79 | 1.30 |
| PBDIT/Interest | Times | 12.39 | 7.65 |
| Status of non-cooperation with previous CRA |
| Brickworks through its PR dated 04-08-2022 declared that the issuer is not cooperating and hence flagged the case as Issuer Not Cooperating. |
| Any other information |
| The client has not submitted the NDS for the past 3 Months ending 31 July 2023, despite repeated requests and followups. |
| 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 • Service Sector: https://www.acuite.in/view-rating-criteria-50.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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