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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 88.33 | ACUITE BBB | Stable | Assigned | - |
| Bank Loan Ratings | 11.67 | - | ACUITE A2 | Assigned |
| Total Outstanding | 100.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuite has assigned the long term rating to 'ACUITE BBB' (read as ACUITE triple B) on the Rs. 88.33 Cr. and short-term rating to 'ACUITE A2 ' (read as ACUITE A two) on the Rs. 11.67 Cr. bank facilities of Tara Coal Mining Private Limited. The outlook is 'stable'. Rationale for rating The rating takes into cognizance benefits derived from the financial support from its parent Goquest Solution Private Limited in the form of 100% shareholding, supporting the business in the form of infusion of unsecured loans of about Rs. 191 Cr till FY 25. The rating further derives comfort from the improving revenue from operations to Rs. 195.31 Cr in FY 25 as compared to Rs. 20.90 Cr in FY 24 on account of increase in coal production. However, these strengths are partly offset by partially stabilized operations, below average financial risk profile and intensive working capital cycle.
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| About the Company |
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Incorporated in 2003, Tara Coal Mining Private Limited (TCMPL) is West Bengal based company engaged in mining contractor services. The company has been appointed as Mining Developer and Operator (MDO) contract for coal extraction of 17.78 Million Tonnes for West Bengal Power Development Corporation Limited (WBPDCL )for the captive mine named Tara (East and West). It covers an area of about 8 sq km and is in the northern part of the Ranigunj Coalfield. The coal mining lease exists till 2045. The company is a wholly owned subsidiary of Goquest Solution Private Limited. The operations of the company are managed by Mr Somnath Chakraborty and Mr Rajesh Sharma.
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| About the Group |
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Goquest Solution Private Limited (GSPL)
Incorporated in 2016, the company is a joint venture between AMPL Resources Private Limited and Godavari Commodities Limited with shareholding of 51% and 49%, respectively. GSPL is engaged in coal excavation, removal of overburden, coal extraction and coal transportation. The company is designated as the mine developer and operator (MDO) for Gangaramchak & Gangaramchak- Bhadulia coal mine for The West Bengal Power Development Corporation Limited (WBPDCL).
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| Unsupported Rating |
| ACUITE BB/Stable |
| Analytical Approach |
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Acuité has considered the standalone business and financial risk profile of Tara Coal Mining Private Limited and notched up the standalone rating by factoring in the financial linkages (in the form of Unsecured loans and 100% ownership) with Goquest Solution Private Limited. Unconditional and irrevocable Corporate guarantees have been provided by Goquest Solution Private Limited.
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| Key Rating Drivers |
| Strengths |
| Benefits derived from the parent
GSPL is the parent company of TCMPL, in which the promoters are resourceful and have also supported the group companies by infusing unsecured loans as and when required to support the business operations. The resourcefulness of GSPL can be witnessed from the extended unsecured loans in the company to the extent of Rs. 191 Cr in FY 25. Acuité believes that the company will continue to benefit from its parent on need based funding support, if and when required over the medium term. Improvement in revenues albeit operating losses The revenues have increased to Rs. 195.31 Cr in FY 25 as compared to Rs. 20.90 Cr in FY 24 on account of execution of mining and support services. The company has achieved revenues of about Rs. 95 Cr till September 2025. The operating profitability stood at (16.83) percent in FY 25 as compared to (185.26) percent in FY 24. This was largely due to high costs incurred for removal of overburden and debris removal since the mine had been unoperational since more than 5 years. In the present year, major costs related to overburden and other debris removal works are largely completed and such high costs are not expected to be incurred in ensuing years. Acuite believes that the scale of operations will improve in the near term on account of expected increase in the coal production. |
| Weaknesses |
| Below Average financial risk profile
The company has a below average financial risk profile marked by a low net worth, high gearing, and negative debt protection metrices. The adjusted net worth of the company is Rs. 2.23 Cr in FY 25 as compared to Rs. (20.77) Cr in FY 24, mainly because of unsecured loans of Rs. 100 Cr being treated as quasi equity basis an undertaking received from management to retain a part of unsecured loans in the business over a long term. Debt protection metrices have been negative in initial phase of project due to large debt for commencing mining operations and EBDITA losses incurred. Acuite believes the financial risk profile will improve in the near to medium term on account of expected steady yet low accruals. Intensive Working Capital cycle The gross current asset days are 397 days in FY 25 as compared to 414 days in FY 24. The debtor days stood at 152 days in FY 25 as compared to 334 days in FY 24. The payments are received in the range of 120-150 days. There is no risk of inventory as the company is a service provider. The other current assets amount to Rs. 25.79 Cr majorly comprises of balance with Government authorities of about Rs. 16 Cr in FY 25. The creditors are largely group entities like AMPL who have been subcontracted mining works for TMCPL and are paid out as per the realisation and profitability of the company. Acuite believes that the working capital cycle will remain in the similar levels in the near to medium term. |
| Rating Sensitivities |
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Movement in revenues and operating profitability Working capital cycle Improvement in financial risk profile |
| Liquidity Position |
| Stretched |
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The liquidity is stretched as the net cash accruals of the company are Rs. (56.69) Cr with a debt repayment of Rs. 2.30 Cr over the same period. The shortfall is met by the infusion of unsecured loans by GSPL in the business. The current ratio stood at 1.96 times in FY 25 as compared to 0.64 times in FY 24. The average bank limit utilization is 65% last six months ended September 2025. The cash and bank balances stood at Rs. 107.62 Cr in FY 25 as compared to Rs. 2.55 Cr due to support from group entity received towards year end, in present year such liquidity has been deployed towards operations. Acuite believes that the liquidity will improve in the near to medium term on account of expected small accruals and continued support from parent entity.
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| Outlook: Stable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 195.31 | 20.90 |
| PAT | Rs. Cr. | (57.11) | (40.65) |
| PAT Margin | (%) | (29.24) | (194.50) |
| Total Debt/Tangible Net Worth | Times | 83.15 | (0.95) |
| PBDIT/Interest | Times | (1.30) | (19.68) |
| Status of non-cooperation with previous CRA (if applicable) |
| None |
| Any other information |
| None |
| Applicable Criteria |
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• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Service Sector: https://www.acuite.in/view-rating-criteria-50.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Group And Parent Support: https://www.acuite.in/view-rating-criteria-47.htm |
| Note on complexity levels of the rated instrument |
| Rating History:Not Applicable |
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*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||
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