Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 15.00 ACUITE C | Reaffirmed | Issuer not co-operating* -
Bank Loan Ratings 10.00 - ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 25.00 - -
 
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. 25.00 crore bank facilities of Sugesan Transport Private Limited (STPL). This rating is flagged as Issuer Not Co-operating and is based on best available information.


About the Company

Sugesan Transport Private Limited ­(STPL), incorporated in 1971, is a Chennai-based company promoted by Mr. Rajendra Sheth, Mr. Premkumar Sheth, Mr. Mukesh Sheth and Mr. Jesmin Sheth. The company, apart from offering heavy earth equipment and cranes on hire, also undertakes road laying and plant erection services. STPL operates across India and has a fleet of 35 (cranes and related equipment). STPL caters to L&T, ECC Construction Group, Reliance Petroleum Limited, Bhoruka Steels Limited among others. KFPL, a group company develops residential projects in Tamil Nadu and Karnataka. The company is in the process of developing six projects under the name Cielo, Orion, Twine, Prisma, Blue Beach and Site. The two companies form the Karismaa group.

 
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 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 rating is based.

 
Rating Sensitivity

­"No information provided by the issuer / available for Acuite to comment upon."

 
All Covenants
­Not Applicable
 
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 17 (Actual) FY 16 (Actual)
Operating Income Rs. Cr. 28.93 52.57
PAT Rs. Cr. 2.27 (0.75)
PAT Margin (%) 7.86 (1.42)
Total Debt/Tangible Net Worth Times 3.74 3.68
PBDIT/Interest Times 3.18 2.34
Status of non-cooperation with previous CRA

­­Not Applicable

 
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 Jul 2022 Proposed Bank Guarantee Short Term 4.00 ACUITE A4 ( Issuer not co-operating*)
Cash Credit Long Term 8.00 ACUITE C ( Issuer not co-operating*)
Bank Guarantee Short Term 6.00 ACUITE A4 ( Issuer not co-operating*)
Proposed Cash Credit Long Term 7.00 ACUITE C ( Issuer not co-operating*)
14 Apr 2021 Bank Guarantee Short Term 6.00 ACUITE A4 (Issuer not co-operating*)
Proposed Cash Credit Long Term 7.00 ACUITE C (Issuer not co-operating*)
Proposed Bank Guarantee Short Term 4.00 ACUITE A4 (Issuer not co-operating*)
Cash Credit Long Term 8.00 ACUITE C (Issuer not co-operating*)
16 Jan 2020 Cash Credit Long Term 8.00 ACUITE C (Issuer not co-operating*)
Proposed Cash Credit Long Term 7.00 ACUITE C (Issuer not co-operating*)
Bank Guarantee Short Term 6.00 ACUITE A4 (Issuer not co-operating*)
Proposed Bank Guarantee Short Term 4.00 ACUITE A4 (Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Union Bank of India Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 6.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
Union Bank of India Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 8.00 Simple ACUITE C | Reaffirmed | Issuer not co-operating*
Not Applicable Not Applicable Proposed Bank Guarantee Not Applicable Not Applicable Not Applicable 4.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
Not Applicable Not Applicable Proposed Cash Credit Not Applicable Not Applicable Not Applicable 7.00 Simple ACUITE C | Reaffirmed | Issuer not co-operating*

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