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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 15.00 | ACUITE D | Downgraded | Issuer not co-operating* | - |
| Bank Loan Ratings | 10.00 | - | ACUITE D | Downgraded | Issuer not co-operating* |
| Total Outstanding | 25.00 | - | - |
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Rating Rationale |
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Acuité has downgraded the long-term rating to ‘ACUITE D’ (read as ACUITE D) from ‘ACUITE C’ (read as ACUITE C) and the short-term rating to ‘ACUITE D’ (read as ACUITE D) from ACUITE A4' (read as ACUITE A four) 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. The rating action is on the account of defaults reflected in Union Bank of India facilties availed by STPL as per CIBIL Suit filed list. |
| 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. |
| 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. |
| Key Financials |
| The rated entity has not shared the latest financial statements despite repeated requests. |
| 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 |
| None |
| 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 |
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• 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. |
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