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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 58.40 | ACUITE BB- | Downgraded | Issuer not co-operating* | - |
| Total Outstanding | 58.40 | - | - |
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Rating Rationale |
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Acuité has downgraded its long-term rating to ‘ACUITE BB-' (read as ACUITE double B minus) from 'ACUITE BB' (read as ACUITE double B) on the Rs.58.40 Cr. bank loan facilities of Visvas Promoters Private Limited. This rating is now an indicative rating and is based on the best information. The downgrade is on account of information risk. Rationale for Downgrade |
| About the Company |
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VPPL incorporated in 2000, is a Madurai based residential real estate developer promoted by Mr. S Seetharaman. The company is engaged in development and construction of residential township across Madurai in Tamil Nadu. Currently, it has four key on-going projects – Supraja, Vibhava Phase II – Block D and Block G, Aprameya and Virat Phase II – Block C and Block D. VPPL has completed its two projects - Vibhava Phase I and Vidyavahini Phase I (Part).
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| Unsupported Rating |
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Not Applicable
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| Non-cooperation by the issuer/borrower |
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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.
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| Limitation regarding information availability |
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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 endeavoured 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.
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| Rating Sensitivities |
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No information provided by the issuer / available for Acuité to comment upon
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| Liquidity Position |
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No information provided by the issuer / available for Acuité to comment upon
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| Outlook |
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Not Applicable
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| Other Factors affecting Rating |
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None
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| Particulars | Unit | FY 23 (Actual) | FY 22 (Actual) |
| Operating Income | Rs. Cr. | 46.94 | 36.43 |
| PAT | Rs. Cr. | 1.12 | 0.58 |
| PAT Margin | (%) | 2.39 | 1.60 |
| Total Debt/Tangible Net Worth | Times | 0.99 | 1.11 |
| PBDIT/Interest | Times | 1.27 | 1.19 |
| Status of non-cooperation with previous CRA |
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Not Applicable
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| Any other information |
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None
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| Applicable Criteria |
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• 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 • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm |
| Note on Complexity Levels of the Rated Instrument |
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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.
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