|
|
| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Pass Through Certificates (PTCs) | 0.62 | Not Applicable | Withdrawn | - |
| Total Outstanding | 0.00 | - | - |
| Total Withdrawn | 0.62 | - | - |
|
Rating Rationale |
|
Acuité has withdrawn the long term rating on the Pass Through Certificates (PTCs) of Rs. 0.62 Cr. issued by NORTHERN ARC 2021 SBL MARINA (the trust) under a securitisation transaction originated by SVAKARMA FINANCE PVT LTD (SFPL) (The Originator). The PTCs are backed by a pool of secured and unsecured MSME loans with principal outstanding of Rs. 1.18 Cr. (including Rs. 0.56 Cr of over collateralisation). The transaction also includes Equity Tranche PTCs of Rs. 0.15 Cr, and any redemption of Equity Tranche PTCs shall be fully subordinated to the Series A1 PTCs payments.
The transaction has been paid in full. It has also been redeemed and all the contractual obligations and pay-outs to the investors have been duly completed. Hence, the rating is being withdrawn without assigning any rating. The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective instrument/facility, and pursuant to a request received from the company in this regard, and the No Dues Confirmation received from the trustee. |
| About the Originator |
|
Incorporated in 2017, Mumbai based SFPL is an NBFC that lends to Micro, Small and Medium enterprises (MSMEs). The company structures financing solutions for business needs of the enterprise, linking the repayment structures to the underlying cash flows. SFPL lends to enterprises across select clusters such as Handloom, Textiles, Foundry, Engineering & Machinery, Tooling, Fabrication, Food processing, Chemicals, Pharmaceuticals and Retail. As on September 30, 2022, its AUM stood at Rs. 56.89 Cr. SFPL is headed by Kalpana Iyer (MD & CEO) and co-founded by Vivek Vig (Chairman), Anuradha Nadkarni and Kaushik Mazumdar, each of whom has more than three decades of experience across functions in retail and wholesale banking.
The company’s AUM increased to Rs. 56.89 Cr. as on September 30, 2022 from Rs. 43.92 Cr. as on March 31, 2021. SFPL’s GNPA and NNPA levels for on book portfolio worsened to 21.46 percent and 13.33 percent respectively as on March 31, 2022 from 6.81 percent and 5.37 percent respectively as on March 31, 2021. This indicates a deterioration of asset quality due to the impact of Covid-19. As on December 2022, the GNPA and NNPA stood at 12.7 percent and 9.3 percent respectively. The company reported a loss of Rs. 8.36 Cr. as on March 31, 2022 as compared to a loss of Rs. 6.13 Cr. as on March 31, 2021. For H1FY23, the company reported a loss of Rs. 3.80 Cr |
| Assessment of the Pool |
| Not Applicable |
| Credit Enhancements (CE) |
| Not Applicable |
| Transaction Structure |
| Not Applicable |
| Legal Assessment |
| Not Applicable |
| Key Risks |
| Counter Party Risks |
| Not Applicable |
| Concentration Risks |
| Not Applicable |
| Servicing Risks |
| Not Applicable |
| Regulatory Risks |
| Not Applicable |
| Prepayment Risks |
| Not Applicable |
| Commingling Risk |
| Not Applicable |
| Rating Sensitivity |
| None |
| All Covenants (Applicable only for CE & SO Ratings) |
|
Not Applicable
|
| Liquidity Position |
|
Not Applicable
|
| Outlook |
| Not Applicable |
| Key Financials - Originator | ||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
| Any Other Information |
| None |
| Status of disclosure of all relevant information about the Obligation being Rated |
| Not Applicable |
| 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
|
| Applicable Criteria |
|
• 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 • Securitized Transactions: https://www.acuite.in/view-rating-criteria-48.htm |
|
| |
|
|
||||||||||||||||||
|
| |
|
Contacts |
|
|
|
About Acuité Ratings & Research |
