Rating Rationale
May 31, 2022 | Mumbai
Navkar Urbanstructure Limited
Issuer not cooperating, based on best-available information; Ratings migrated to ‘CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'
 
Rating Action
Total Bank Loan Facilities RatedRs.28 Crore
Long Term RatingCRISIL B+ /Stable (ISSUER NOT COOPERATING*; Rating Migrated)
Short Term RatingCRISIL A4 (ISSUER NOT COOPERATING*; Rating Migrated)
1 crore = 10 million
Refer to Annexure for Details of Instruments & Bank Facilities
*Issuer did not cooperate; based on best-available information
 
Please note that the rating(s) are based on best available information with the credit rating agency: the entity whose debt is being published via this press release did not provide the requisite information needed to conduct the rating exercise and is therefore classified as 'non cooperative'.

Non cooperation by Issuer

CRISIL Ratings has been consistently following up with Navkar Urbanstructure Limited (NBL) for obtaining information through letters and emails dated May 12, 2022 and May 17, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative.

 

‘The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.’

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of NBL, which restricts CRISIL Ratings’ ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on NBL is consistent with ‘Assessing Information Adequacy Risk’. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of NBL to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'.

About the Company

NBL was set up in 1992, by the promoter Mr Dakshesh Shah and his family. The company supplies ready-mix concrete and reinforced cement concrete (RCC) vertical hume pipes for infrastructure projects. It is also registered as an ‘AA class’ contractor with the government of Gujarat, and executes contracts pertaining to drainage work, horizontal drilling, cable line work, etc. Manufacturing facilities are located at Kheda (Gujarat).

Key Financial Indicators

 

9MFY22

FY21

Revenue

8.71

8.43

Profit After Tax (PAT)

1.51

0.51

Operating Profit Margin (OPM)

35.36%

32.86%

Net Profit Margin (NPM)

17.34%

6.05%

Source: BSE

Note on complexity levels of the rated instrument:
CRISIL Ratings' complexity levels are assigned to various types of financial instruments. The CRISIL Ratings' complexity levels are available on www.crisil.com/complexity-levels. Users are advised to refer to the CRISIL Ratings' complexity levels for instruments that they consider for investment. Users may also call the Customer Service Helpdesk with queries on specific instruments.

Annexure - Details of Instrument(s)*

ISIN

Name of Instrument

Date of Allotment

Coupon
Rate (%)

Maturity Date

Issue
Size
(Rs. Cr)

Complexity Levels

Rating Assigned with Outlook

NA

Bank Guarantee

NA

NA

NA

14

NA

CRISIL A4/Issuer Not Cooperating

NA

Cash Credit

NA

NA

NA

11

NA

CRISIL B+/Stable/Issuer Not Cooperating

NA

Proposed Long Term Bank Loan Facility

NA

NA

NA

3

NA

CRISIL B+/Stable/Issuer Not Cooperating

*Issuer did not cooperate; based on best-available information

Annexure - Rating History for last 3 Years
  Current 2022 (History) 2021  2020  2019  Start of 2019
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund Based Facilities LT 14.0 CRISIL B+ /Stable(Issuer Not Cooperating)*   -- 16-03-21 CRISIL B+/Stable   --   -- --
Non-Fund Based Facilities ST 14.0 CRISIL A4 (Issuer Not Cooperating)*   -- 16-03-21 CRISIL A4   --   -- --
All amounts are in Rs.Cr.
* - Issuer did not cooperate; based on best-available information
 
Annexure - Details of Bank Lenders & Facilities
Facility Amount (Rs.Crore) Rating
Bank Guarantee 14 CRISIL A4 (Issuer Not Cooperating)*
Cash Credit 11 CRISIL B+ /Stable(Issuer Not Cooperating)*
Proposed Long Term Bank Loan Facility 3 CRISIL B+ /Stable(Issuer Not Cooperating)*
* - Issuer did not cooperate; based on best-available information
Criteria Details
Links to related criteria
CRISILs Bank Loan Ratings
Understanding CRISILs Ratings and Rating Scales
The Rating Process
Assessing Information Adequacy Risk
Understanding CRISILs Ratings and Rating Scales

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