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Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
Bank Loan Ratings | 10.00 | ACUITE B- | Downgraded | Issuer not co-operating* | - |
Bank Loan Ratings | 35.00 | - | ACUITE A4 | Reaffirmed | Issuer not co-operating* |
Total Outstanding | 45.00 | - | - |
Total Withdrawn | 0.00 | - | - |
* The issuer did not co-operate; based on best available information. |
Rating Rationale |
Acuité has downgraded the long-term rating to ‘ACUITE B-’ (read as ACUITE B minus) from 'ACUITE B' (read as ACUITE B) and reaffirmed the short term rating of ‘ACUITE A4’ (read as ACUITE A four) on the Rs.45.00 crore bank facilities of V M and Co (VMC) on account of information risk. The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information. |
About the Company |
Tamil Nadu based V M and Co. (VMC) was established as a proprietorship concern in 1986 by Mr. Veluchamy, later in 2011 it was converted into partnership firm. Presently, the firm is managed by Mr. V. Manoharan, managing partner. The firm is engaged in construction of Roadways for central and state government entities, National Highway Authority of India (NHAI) and Tamil Nadu Public Works Department. |
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. |
Limitation regarding information availability |
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 19 (Actual) | FY 18 (Actual) |
Operating Income | Rs. Cr. | 104.65 | 48.10 |
PAT | Rs. Cr. | 3.10 | 1.55 |
PAT Margin | (%) | 2.96 | 3.21 |
Total Debt/Tangible Net Worth | Times | 0.80 | 1.63 |
PBDIT/Interest | Times | 6.28 | 3.93 |
Status of non-cooperation with previous CRA |
Not Applicable |
Any other information |
None |
Applicable Criteria |
• Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.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 |
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* The issuer did not co-operate; based on best available information. |
Contacts |
About Acuité Ratings & Research |
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