Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 85.00 ACUITE C | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 15.00 - ACUITE A4 | Downgraded | Issuer not co-operating*
Total Outstanding 100.00 - -
 
Rating Rationale

­Acuité has downgraded the long-term rating to ‘ACUITE C’ (read as ACUITE C) from ‘ACUITE BB+’ (read as ACUITE Double B plus) on the Rs.85.00 Cr. and the short term rating to ‘ACUITE A4’ (read as ACUITE A four) from 'ACUITE A4+' (read as ACUITE A Four Plus) on the Rs.15.00 Cr. bank facilities of Veremax Technologie Services Limited (VTSL). The rating continues to be flagged as “Issuer Not Cooperating” and is based on the best available information.
The downgrade is based on recent delays being reflected in the CRIF highmark report and other publicly available information.


About the Company

Incorporated in 2013 and based in Chennai (Tamil Nadu), Veremax Technologie Services Limited (VTSL) provides end to end telecom service integration, project implementation and maintenance of active equipment for leading telecom operators. The company is engaged in services such as Fiber leasing, Tower maintenance and Fiber maintenance, Bandwidth and allied services for leading telecom providers. The present directors of the company are Mr. Npalanisamy Raja, Mr. Tiruchendur Rajakani Meganathan Venkatesh and Mr. Thulasimani Marimuthu.


 
 
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 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 ratingis based.

 
Rating Sensitivity

­"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

 

Particulars Unit FY 23 (Actual) FY 22 (Actual)
Operating Income Rs. Cr. 435.51 325.49
PAT Rs. Cr. 10.41 4.79
PAT Margin (%) 2.39 1.47
Total Debt/Tangible Net Worth Times 4.71 4.26
PBDIT/Interest Times 5.27 5.30
Status of non-cooperation with previous CRA

­Not Applicable

 
Any other information

­None

 
Applicable Criteria
• 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

 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
07 Mar 2024 Bills Discounting Short Term 15.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 40.00 ACUITE BB+ | Not Applicable (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 45.00 ACUITE BB+ | Not Applicable (Reaffirmed & Issuer not co-operating*)
31 Jan 2023 Bills Discounting Short Term 15.00 ACUITE A4+ (Downgraded from ACUITE A3)
Cash Credit Long Term 40.00 ACUITE BB+ | Stable (Downgraded from ACUITE BBB- | Stable)
Cash Credit Long Term 45.00 ACUITE BB+ | Stable (Assigned)
04 Mar 2022 Bills Discounting Short Term 15.00 ACUITE A3 (Assigned)
Cash Credit Long Term 40.00 ACUITE BBB- | Stable (Assigned)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
HDFC Bank Ltd Not avl. / Not appl. Bills Discounting Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE A4 | Downgraded | Issuer not co-operating* ( from ACUITE A4+ )
State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 45.00 Simple ACUITE C | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
HDFC Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 40.00 Simple ACUITE C | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
­

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