PR

Press Release
Unacco Financial Services Private Limited
September 29, 2022
Rating Reaffirmed and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	33.00	ACUITE D \| Reaffirmed \| Issuer not co-operating*	-
Bank Loan Ratings	57.00	ACUITE C \| Reaffirmed \| Issuer not co-operating*	-
Total Outstanding Quantum (Rs. Cr)	90.00	-	-
Total Withdrawn Quantum (Rs. Cr)	0.00	-	-

Rating Rationale

Acuite has reaffirmed the long term rating to ‘ACUITE D’ (read as ACUITE D) on the Rs 33.00 Cr bank facilities of Unacco Financial Services Private Limited (UFSPL). The rating is flagged as “issuer not co-operating” and is based on best available information.

Acuite has reaffirmed the loang term rating to ‘ACUITE C’ (read as ACUITE C) on the Rs.57.00 crore bank facilities of Unacco Financial Services Private Limited (UFSPL). The rating is flagged as “issuer not co-operating” and is based on best available information.

About the Company

Assam based, Unacco Financial Services Private Limited (UFSPL) was incorporated in 1992 as a Non-Deposit taking Non-Banking Finance Company-Micro Finance Institution (NBFC-MFI). UFSPL provides microcredit, through joint liability group (JLG) model, as a source of financial services for small entrepreneurs and small businesses where access to banking and related services are lacking. UFSPL is head quartered in Guwahati, Assam. The company has its operations spread across 53 branches in Assam, Mizoram, Tripura, West Bengal, Manipur, Meghalaya, Arunachal Pradesh and Sikkim. The company is currently directed by N. Irabanta Singh.

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. 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. 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 flagged as “Issuer notcooperating”, 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 endeavored 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.

Rating Sensitivities

“No information provided by the issuer / available for Acuite to comment upon.”

Material Covenants

Not Applicable.

Liquidity Position

No information provided by the issuer/ available for Acuite to comment upon.

Outlook

Not Applicable

Other Factors affecting Rating

Not Applicable

Key Financials:

Particulars	Unit	FY22(Actual)	FY21 (Actual)
Total Assets	Rs Cr	78.61	104.59
Total Income	Rs Cr	6.15	10.13
PAT	Rs Cr	0.17	0.02
Net Worth	Rs Cr	27.95	27.77
Return on Average Assets (RoAA)	(%)	0.19	0.02
Return on Average Net worth (RoNW)	(%)	0.63	0.07
Debt/Equity	Times	1.61	2.55
Gross NPA	(%)	NA	NA
Net NPA	(%)	NA	NA

*Total income equals to Net Interest Income plus other income.

Status of non-cooperation with previous CRA

Crisil, vide its press release dated July 09, 2021 had reaffirmed the rating of Unacco Financial Services Private Limited to 'CRISIL D; ISSUER NOT COOPERATING’.
Brickworks, vide its press release dated July 14, 2022 had reaffirmed the rating of Unacco Financial Services Private Limited to 'BWR D; ISSUER NOT COOPERATING’.

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

• Banks And Financial Institutions: https://www.acuite.in/view-rating-criteria-45.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.htm

Note on Complexity Levels of the Rated Instrument

https://www.acuite.in/view-rating-criteria-55.htm

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
01 Jul 2021	Term Loan	Long Term	5.10	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	1.00	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	0.58	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	2.36	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	2.24	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Proposed Bank Facility	Long Term	1.96	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	1.86	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	0.30	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	0.24	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	2.50	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	1.89	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	7.06	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	0.83	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	2.04	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	1.00	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	8.00	ACUITE D (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	5.72	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	1.15	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	3.29	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	3.49	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	2.33	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	4.70	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	15.00	ACUITE D (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	0.61	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	3.19	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	0.83	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	0.73	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	10.00	ACUITE D (Downgraded from ACUITE BB \| Stable)
15 Jan 2021	Term Loan	Long Term	1.00	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	3.29	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	10.00	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	0.24	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	1.86	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	2.04	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	0.83	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	8.00	ACUITE BB \| Stable (Assigned)
	Proposed Bank Facility	Long Term	1.96	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	15.00	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	0.61	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	0.73	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	2.50	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	1.00	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	4.70	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	3.49	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	2.24	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	0.30	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	0.83	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	5.10	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	2.33	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	1.89	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	5.72	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	1.15	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	0.58	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	7.06	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	2.36	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	3.19	ACUITE BB \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Rating
Not Applicable	Not Applicable	Proposed Long Term Bank Facility	Not Applicable	Not Applicable	Not Applicable	1.96	ACUITE C \| Reaffirmed \| Issuer not co-operating*
North Eastern Development Finance Corporation Ltd.	Not Applicable	Term Loan	03-10-2018	Not available	27-02-2022	0.58	ACUITE C \| Reaffirmed \| Issuer not co-operating*
North Eastern Development Finance Corporation Ltd.	Not Applicable	Term Loan	01-07-2019	Not available	17-07-2022	4.70	ACUITE C \| Reaffirmed \| Issuer not co-operating*
North Eastern Development Finance Corporation Ltd.	Not Applicable	Term Loan	01-07-2019	Not available	11-02-2023	0.83	ACUITE C \| Reaffirmed \| Issuer not co-operating*
North Eastern Development Finance Corporation Ltd.	Not Applicable	Term Loan	05-10-2017	Not available	13-04-2021	0.30	ACUITE C \| Reaffirmed \| Issuer not co-operating*
North Eastern Development Finance Corporation Ltd.	Not Applicable	Term Loan	05-10-2017	Not available	21-02-2021	0.24	ACUITE C \| Reaffirmed \| Issuer not co-operating*
North Eastern Development Finance Corporation Ltd.	Not Applicable	Term Loan	05-10-2017	Not available	13-03-2021	0.61	ACUITE C \| Reaffirmed \| Issuer not co-operating*
North Eastern Development Finance Corporation Ltd.	Not Applicable	Term Loan	03-10-2018	Not available	27-02-2022	0.73	ACUITE C \| Reaffirmed \| Issuer not co-operating*
State Bank of India	Not Applicable	Term Loan	22-10-2018	Not available	29-08-2021	2.24	ACUITE C \| Reaffirmed \| Issuer not co-operating*
IDBI Bank Ltd.	Not Applicable	Term Loan	30-11-2018	Not available	30-01-2021	2.04	ACUITE C \| Reaffirmed \| Issuer not co-operating*
Small Industries Development Bank of India	Not Applicable	Term Loan	07-03-2019	Not available	25-03-2022	8.00	ACUITE D \| Reaffirmed \| Issuer not co-operating*
North Eastern Development Finance Corporation Ltd.	Not Applicable	Term Loan	03-10-2018	Not available	28-06-2022	1.15	ACUITE C \| Reaffirmed \| Issuer not co-operating*
North Eastern Development Finance Corporation Ltd.	Not Applicable	Term Loan	01-07-2019	Not available	11-02-2023	0.83	ACUITE C \| Reaffirmed \| Issuer not co-operating*
North Eastern Development Finance Corporation Ltd.	Not Applicable	Term Loan	10-03-2019	Not available	19-03-2022	3.49	ACUITE C \| Reaffirmed \| Issuer not co-operating*
North Eastern Development Finance Corporation Ltd.	Not Applicable	Term Loan	01-07-2019	Not available	29-08-2022	2.50	ACUITE C \| Reaffirmed \| Issuer not co-operating*
North Eastern Development Finance Corporation Ltd.	Not Applicable	Term Loan	Not available	Not available	Not available	1.00	ACUITE C \| Reaffirmed \| Issuer not co-operating*
North Eastern Development Finance Corporation Ltd.	Not Applicable	Term Loan	01-07-2019	Not available	23-12-2022	1.89	ACUITE C \| Reaffirmed \| Issuer not co-operating*
MANAVEEYA DEVELOPMENT AND FINANCE PRIVATE LIMITED	Not Applicable	Term Loan	19-03-2019	Not available	15-03-2022	7.06	ACUITE C \| Reaffirmed \| Issuer not co-operating*
Jain Sons Finlease Ltd.	Not Applicable	Term Loan	28-01-2019	Not available	28-02-2021	3.29	ACUITE C \| Reaffirmed \| Issuer not co-operating*
IDFC First Bank Limited	Not Applicable	Term Loan	22-02-2018	Not available	09-03-2023	15.00	ACUITE D \| Reaffirmed \| Issuer not co-operating*
IDFC First Bank Limited	Not Applicable	Term Loan	08-06-2018	Not available	26-06-2023	10.00	ACUITE D \| Reaffirmed \| Issuer not co-operating*
Habitat Micro Build India Housing Finance Company Pvt. Ltd.	Not Applicable	Term Loan	29-03-2018	Not available	18-04-2021	1.00	ACUITE C \| Reaffirmed \| Issuer not co-operating*
Arohan Financial Services (P) Ltd.	Not Applicable	Term Loan	24-09-2018	Not available	27-09-2021	5.72	ACUITE C \| Reaffirmed \| Issuer not co-operating*
Bandhan Bank	Not Applicable	Term Loan	18-09-2019	Not available	21-09-2021	5.10	ACUITE C \| Reaffirmed \| Issuer not co-operating*
Grameen Inpact Investment	Not Applicable	Term Loan	11-06-2019	Not available	17-06-2021	2.33	ACUITE C \| Reaffirmed \| Issuer not co-operating*
Incred Capital Finacial Services Private Ltd.	Not Applicable	Term Loan	03-07-2019	Not available	17-04-2021	3.19	ACUITE C \| Reaffirmed \| Issuer not co-operating*
Annapurna Microfinance Private Ltd.	Not Applicable	Term Loan	01-10-2019	Not available	11-07-2021	2.36	ACUITE C \| Reaffirmed \| Issuer not co-operating*
Micro Units Development and Refinance Agency bank (MUDRA)	Not Applicable	Term Loan	06-09-2019	Not available	13-11-2022	1.86	ACUITE C \| Reaffirmed \| Issuer not co-operating*

Contacts

Analytical	Rating Desk
Mohit Jain Senior Vice President-Rating Operations Tel: 022-49294041 mohit.jain@acuite.in Kunda Aditii Senior Analyst-Rating Operations Tel: 022-49294065 aditii.kunda@acuite.in	Varsha Bist Senior Manager-Rating Operations Tel: 022-49294011 rating.desk@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité.