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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 14.50 | ACUITE BBB- | Downgraded & Withdrawn | Issuer not co-operating* | - |
| Bank Loan Ratings | 55.50 | - | ACUITE A3 | Downgraded & Withdrawn | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 0.00 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 70.00 | - | - |
| Rating Rationale |
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Acuité has downgraded & withdrawn the long-term rating to 'ACUITE BBB-' (read as ACUITE triple B 'minus') from 'ACUITE BBB' (read as ACUITE Triple B) and short trem rating to 'ACUITE A3 (read as ACUITE A three) from 'ACUITE A3+ (read as ACUITE A three 'plus') on the Rs.70 Cr bank facilities of SS RAIL WORKS PRIVATE LIMITED (SSRWPL) .
This rating is now an indicative rating and is based on the best available information. The rating withdrawal is in accordance with the Acuité's policy on withdrawal of rating. The rating is being withdrawn on account of request received from the company and NOC received from the banker. The rating has been downgraded on account of information risk. |
| About the Company |
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SS Rail works Private Limited (SSRWPL), a Hyderabad-based company, was incorporated in 2014 by Mr. Srinivasulu Reddy Annamreddy, Mrs.Padmavathi Annam Reddy, Mr.Venkat Manish Reddy Annamreddy and Ms. Manmitha Ammanreddy. SSRWPL was established to take over the existing business of S&S Enterprises established in 1995 as a proprietorship concern of Mr.Srinivasulu Reddy Annamreddy. SSRWPL is engaged in the business of executing engineering, procurement and construction (EPC) for in railway related works primarily of signalling and Telecommunication Infrastructure. SSRWPL executes majorly tender-based projects from Indian Railways. SSRWPL generates 95 per cent of its revenue from execution of contracts while 5 per cent of the revenue is generated from services such as after sales services and annual maintenance contracts.
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| 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 noncooperation by the issuer along with an 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 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. |
| 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 |
| Particulars | Unit | FY 22 (Actual) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 224.35 | 194.16 |
| PAT | Rs. Cr. | 12.83 | 11.61 |
| PAT Margin | (%) | 5.72 | 5.98 |
| Total Debt/Tangible Net Worth | Times | 0.80 | 0.67 |
| PBDIT/Interest | Times | 5.04 | 5.61 |
| Status of non-cooperation with previous CRA |
| None |
| Any other information |
| None |
| 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 • 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 |
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