* The issuer did not co-operate; based on best available information.
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
Rating Rationale
Acuité has reaffirmed the long-term rating of ‘ACUITE D’ (read as ACUITE D) and the short term rating of ‘ACUITE D’ (read as ACUITE D) on the Rs. 25.00 crore bank facilities of Sugesan Transport Private Limited (STPL). The rating continues to be flagged as “Issuer Not Cooperating”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.
About the Group
Karismaa Foundations Private Limited (KFPL), incorporated in 2010, is a Chennai-based company promoted by Mr. Rakesh Sheth and Mr. Rajesh. The company undertakes civil construction contracts for private companies, real estate projects and also provides heavy earth equipment such as cranes on contract basis. Further, the company is in the process of developing six residential projects under the names Cielo, Orion, Twine, Prisma, Blue Beach and Site. Sugesan Transport Private Limited (STPL), a group company provides heavy earth equipment and cranes on contract basis. Further, STPL has a fleet of 35 equipment and operates across India. The two companies are together referred to as the Karismaa group. For FY2016- 17, the group reported profit after tax (PAT) of Rs.0.16 crore on operating income of Rs.35.41 crore as against net loss of Rs.0.75 crore on operating income of Rs.52.57 crore in the previous year.
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 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
About the Rated Entity - Key Financials
The rated entity has not shared the latest financial statements despite repeated requests.
Rating Sensitivity
Potential triggers (individual or collective) for an upward rating action:
Not Applicable
Potential triggers (individual or collective) for a downward rating action:
Not Applicable
Liquidity Position
"No information provided by the issuer / available for Acuite to comment upon."
ACUITE D
(Downgraded & Issuer not co-operating* from ACUITE C)
Proposed Cash Credit
Long Term
7.00
ACUITE D
(Downgraded & Issuer not co-operating* from ACUITE C)
Bank Guarantee (BLR)
Short Term
6.00
ACUITE D
(Downgraded & Issuer not co-operating* from ACUITE A4)
Proposed Bank Guarantee
Short Term
4.00
ACUITE D
(Downgraded & Issuer not co-operating* from ACUITE A4)
10 Oct 2023
Bank Guarantee (BLR)
Short Term
6.00
ACUITE A4
(Reaffirmed & Issuer not co-operating*)
Proposed Bank Guarantee
Short Term
4.00
ACUITE A4
(Reaffirmed & Issuer not co-operating*)
Cash Credit
Long Term
8.00
ACUITE C
(Reaffirmed & Issuer not co-operating*)
Proposed Cash Credit
Long Term
7.00
ACUITE C
(Reaffirmed & Issuer not co-operating*)
* The issuer did not co-operate; based on best available information.
Lender’s Name
ISIN
Facilities
Listing Status
Regulated By
Date Of Issuance
Coupon Rate
Maturity Date
Quantum (Rs. Cr.)
Complexity Level
Rating
Union Bank of India
Not avl. / Not appl.
Bank Guarantee (BLR)
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
6.00
Simple
ACUITE D | Reaffirmed | Issuer not co-operating*
Union Bank of India
Not avl. / Not appl.
Cash Credit
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
8.00
Simple
ACUITE D | Reaffirmed | Issuer not co-operating*
Not Applicable
Not avl. / Not appl.
Proposed Bank Guarantee
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
4.00
Simple
ACUITE D | Reaffirmed | Issuer not co-operating*
Not Applicable
Not avl. / Not appl.
Proposed Cash Credit
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
7.00
Simple
ACUITE D | Reaffirmed | Issuer not co-operating*
* The issuer did not co-operate; based on best available information.
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
