RATING RATIONALE
10Jun2024

Vishal Projects Ltd.

Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 30.00 Crs. of Vishal Projects Ltd. based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(06 Jun 2023)
Present
Fund Based 30.00 30.00 Long Term BWR C
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
BWR C
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Grand Total 30.00 30.00 (Rupees Thirty Crores Only)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure
*Issuer did not cooperate; based on best available information.


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

The rating is due for review in June 2024. Brickwork Ratings (BWR) took up with the company to provide the required information over emails and through telephonic communication. Despite the best efforts of Brickwork Ratings to get at least the minimum required information for a review, the company has not provided the same. In the absence of adequate information from the issuer and continued lack of management and banker cooperation, Brickwork Ratings is unable to assess the company's financial performance and its ability to service its debt and maintain valid ratings. The company has not been submitting NDS to BWR.

Based on inadequate information and continued lack of management and banker cooperation, Brickwork Ratings has reaffirmed the long-term rating at 'BWR C' and continued the ratings in the Issuer Not Cooperating* category.

The lenders/investors may note to exercise due caution while using the above rating which mentions "Issuer Not Cooperating" since the rating lack any projections or forward looking component as it is arrived at based on the best available information without any management/banker's interaction. 
 

LIMITATIONS OF THE RATING

Information availability risk is a key factor in the assessment of credit risk as generally, non-cooperation by the rated entities to provide required information for a review of the assigned rating may also be accompanied by financial stress. Users of the credit rating should therefore take into account possible deterioration in the credit quality of the rated entity arising from its non-transparency withholding of information required for a review of the rating.
 

ABOUT THE ENTITY
Macro Economic Indicator Sector Industry Basic Industry
Consumer Discretionary Realty Realty Residential, Commercial Projects

Vishal Projects Ltd (VPL) was incorporated in October 1994 at Secunderabad and is engaged in the business of construction of Commercial Buildings, Residential Villas and Apartments. The Company has successfully executed various residential projects in Hyderabad, viz., Jaya bharathi Gardens in Kukatpally, Vishal Vajralayam, Vishal Vaibhav and Mount Meru in Banjara Hills, Prakruthi Nivas near Near Air Force Academy, Kubera Complex in Musheerabad, Sagar Villa and Vishal Villa in Begumpet, Neela Vishal in Trimulgherry – Extension, Deccan Corner in Bowenpally, Srinivasa Krupa in Hasmatpet etc. The company is presently implementing a Residential project in Hyderabad. The project, Vishal Sanjivini is located at Fab City, Tukkuguda. The Project is centrally located and exactly opposite to proposed ITIR project (Information Technology Investment Region) approved by Govt. of India and has infrastructure connecting to all IT hubs and Hitech-City. The project spans 35 Acres and is proposed to have 338 premium Villas varying from 200 Sq. yards to 350 Sq.Yards with around 45% of the area left for Roads and greenery as per the norms of Indian Green Building Council. 

KEY FINANCIAL INDICATORS

Please refer to the following link for the previous detailed rationale that captures the Key Financials Drivers and their Description, Liquidity Position. Rating Sensitivities, Key Financial Indicators. View Previous Document

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

No Out standing Non-Cooperation Ratings with other CRAs.

ANY OTHER INFORMATION

NA

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2024) 2023 2022 2021
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 30.00
BWR C
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
06Jun2023
BWR C
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
08Jun2022
BWR B- Stable
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
Grand Total 30.00 (Rupees Thirty Crores Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - Simple

BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.

Hyperlink/Reference to applicable Criteria
Analytical Contacts

Navyashree S P

Ratings Analyst navyashree.sp@brickworkratings.com

V Ramachandra

ramachandra.v@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Vishal Projects Ltd.
ANNEXURE-I
Details of Bank Facilities rated by BWR
SL.No. Name of the Bank/Lender Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 State Bank Of India (SBI) Term LoanSanctioned 30.00 _ 30.00
Total 30.00 0.00 30.00
TOTAL (Rupees Thirty Crores Only)
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About Brickwork Ratings

Brickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. BWR has rated over 11,560 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partner.

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