Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 20.96 ACUITE BB+ | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 88.00 - ACUITE A4+ | Downgraded | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 108.96 - -
 
Rating Rationale
­Acuité has downgraded the long-term rating from ‘ACUITE BBB' (read as ACUITE triple B) to 'ACUITE BB+' (read as ACUITE double B plus) and short term rating from 'ACUITE A3+' (read as A three plus) to 'ACUITE A4+' (read as ACUITE A4 plus) on Rs. 108.96 Cr. bank facilities of V V C REALINFRA  PRIVATE LIMITED. This rating is now an indicative rating and is based on the best available information. The rating has been downgraded on account of information risk.

About the Company
I­ncorporated in 2013, VVC Realinfra Private Limited (VVCRPL) is Guna, Madhya Pradesh based company, engaged into the business of civil & structural works, roads & bridges work, building, railways work & various civil construction works for the state government of Madhya Pradesh, Central Government and Indian Railways. The business was started as a partnership firm in 2006 and changed constitution to a closely held company in 2013 with name changed to its current name. Currently, the company is headed by Mr Vinod Kumar Lahoti, Mr Virendra Kumar Agrawal, Mr Narendra Kumar Lahoti and Mr Rajendra Kumar Agrawal, who all are promoter directors.
 
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 non-cooperation 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 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.
 
Rating Sensitivities
­No information provided by the issuer / available for Acuite to comment upon.
 
Material Covenants
­None.
 
Liquidity Position
­No information provided by the issuer / available for Acuite to comment upon.
 
Outlook
­Not Applicable.
 
Other Factors affecting Rating
­None.
 
Key Financials:
­­The rated entity has not shared the latest financial statements despite repeated requests.
 
Status of non-cooperation with previous CRA
­None.
 
Any other information
­None.
 
Applicable Criteria
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.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
­­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
17 Mar 2022 Bank Guarantee Short Term 52.00 ACUITE A3+ (Assigned)
Cash Credit Long Term 10.00 ACUITE BBB | Stable (Assigned)
Covid Emergency Line. Long Term 1.96 ACUITE BBB | Stable (Assigned)
Bank Guarantee Short Term 36.00 ACUITE A3+ (Assigned)
Cash Credit Long Term 9.00 ACUITE BBB | Stable (Assigned)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Axis Bank Not Applicable Bank Guarantee/Letter of Guarantee Not Applicable Not Applicable Not Applicable 52.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating*
HDFC Bank Ltd Not Applicable Bank Guarantee/Letter of Guarantee Not Applicable Not Applicable Not Applicable 36.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating*
Axis Bank Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 10.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
HDFC Bank Ltd Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 9.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
Axis Bank Not Applicable Covid Emergency Line. Not Applicable Not Applicable Not Applicable 1.96 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*

Contacts
Analytical Rating Desk
About Acuité Ratings & Research
Acuité Ratings & Research Limitedwww.acuite.in