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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 10.00 | ACUITE B | Reaffirmed | Issuer not co-operating* | - |
| Bank Loan Ratings | 35.00 | - | ACUITE A4 | Reaffirmed | Issuer not co-operating* |
| Total Outstanding | 45.00 | - | - |
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Rating Rationale |
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Acuité has reaffirmed the long-term rating of ‘ACUITE B’ (read as ACUITE single B) and short term rating of ‘ACUITE A4’ (read as ACUITE A four) on the Rs.45.00 crore bank facilities of VM and Co (VMC). The rating continues to be flagged as “Issuer Not-Cooperating” on account of information risk. |
| About the Company |
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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 |
| None |
| 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. |
| 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 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 Sensitivity |
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"No information provided by the issuer / available for Acuite to comment upon." |
| Liquidity Position |
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"No information provided by the issuer / available for Acuite to comment upon." |
| Outlook |
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Not Applicable |
| Other Factors affecting Rating |
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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 |
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None |
| Any other information |
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Not Applicable |
| Applicable Criteria |
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• 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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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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