ACUITE BB- | Downgraded | Issuer not co-operating*
-
RBI
Total Outstanding
0.00
24.50
-
-
-
Total Withdrawn
0.00
0.00
-
-
-
* 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
Acuite has downgraded the long-term rating to 'ACUITE BB-' (read as ACUITE double B minus) from 'ACUITE BB+' (read as ACUITE Double B Plus) on Rs.24.50 Cr. bank facilities of UFIN FINANCIAL SERVICES LIMITED (ERSTWHILE MSM MICRO FINANCE LIMITED).
The rating is now flagged as “Issuer Not-Cooperating” and is based on the best information available. The rating is downgraded on account of information risk.
About the Company
Ufin Financial Services Limited (Erstwhile Msm Micro Finance Limited), incorporated in 1996, is engaged in the financing of income generating agricultural activities in Tamil Nadu, Gujarat and Madhya Pradesh. The company is also a partnership model for several non-banking finance companies such as MAS Financial Services Limited, Equitas Finance Limited and Ananya Finance Limited. MSM originates loans on behalf of these NBFCs and is responsible for credit appraisal, monitoring and collections of receivables from the portfolio. The current directors of the company are.Mr. Mohan Kumar Subramanyam, Mr. Muthusamy Muthukumar, Mr. Ravi Hari Prasath , Mr. Vasu Vasanth, Mr. Chinnia Gounder Subramanian, Mr. Sushant Kumar Choudhury, Mr. Sachit Sahoonja and Mr. Vinayakam Prem Kumar The registered office of the company is in Tamil Nadu.
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
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
No information provided by the issuer / available for Acuite to comment upon
Potential triggers (individual or collective) for a downward rating action:
No information provided by the issuer / available for Acuite to comment upon
Liquidity Position
No information provided by the issuer / available for Acuite to comment upon
Outlook: Not Applicable.
Other Factors affecting Rating
None.
Key Financials:
Particulars
Unit
FY25 (Actual)
FY25 (Actual)
Total Assets
Rs. Cr.
66.02
63.63
Total Income*
Rs. Cr.
12.12
12.00
PAT
Rs. Cr.
0.16
1.34
Net Worth
Rs. Cr.
25.88
22.78
Return on Average Assets (RoAA)
(%)
0.24
2.25
Return on Average Net Worth (RoNW)
(%)
0.64
6.67
Debt/Equity
Times
1.43
1.65
Gross NPA **
(%)
NA
1.33
Net NPA **
(%)
NA
Nil
*Total income equals Net Interest Income plus other income
ACUITE BB- | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
Not Applicable
Not avl. / Not appl.
Proposed Long Term Loan
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
20.00
Simple
ACUITE BB- | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
* 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.
