Press Release

Venkateshwara Power Project Limited

August 04, 2021
Ratings
1
Facilities/Instruments Amount (Rs. crore) Ratings Rating Action
CARE BB-; Stable; Rating continues to
ISSUER NOT COOPERATING* remain under ISSUER
Long Term Bank Facilities 273.39
(Double B Minus; Outlook: Stable NOT COOPERATING
ISSUER NOT COOPERATING*) category
273.39
(Rs. Two Hundred Seventy-
Total Bank Facilities
Three Crore and Thirty-
Nine Lakhs Only)
Details of facilities in Annexure-1
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated July 10, 2020, placed the rating(s) of Venkateshwara Power Project Limited (VPPL)
under the ‘issuer non-cooperating’ category as VPPL had failed to provide information for monitoring of the rating and had
not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. VPPL continues to be non-
cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated
May 26, 2021, June 05, 2021 and June 15, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which
however, in CARE’s opinion is not sufficient to arrive at a fair rating.

Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while
using the above rating(s).

Detailed description of the key rating drivers

Please refer to PR dated July 10, 2020

Analytical approach: Standalone

Applicable Criteria
Policy in respect of Non-cooperation by issuer
Policy on default recognition
Criteria on assigning outlook and credit watch

About the Company

Venkateshwara Power Projects Limited (VPPL) is a Public Limited Company (closely held) incorporated on December 20,
1994. VPPL, is part of the Mahadik Business Group, which has ventures in dairy business, logistics, LPG and Auto engineering,
construction and real estate. VPPL is a sugar factory with Cogeneration, has an installed capacity of 8500 tonne crushed per
day (TCD) sugar crushing plant, and 23 MW of co-generation unit. The company has two facilities, one in Bedkihal, Karnataka
of 7250 TCD capacity and the other in Babadeo, Nagpur of 1250 TCD capacity (acquired in 2014-15). The day to day affairs of
the company are looked after by Mr. Swaroop Mahadik, Chairman & Managing Director and Mr. Rajan Shinde, the co-
founder and Executive Director of the company.
Brief Financials (Rs. crore) FY19 (A) FY20 (A)
Total operating income 507.87 573.57
PBILDT 12.25 51.46
PAT 0.96 10.94
Overall gearing (times) 4.97 4.71
Interest coverage (times) 0.33 1.25
A: Audited
Status of non-cooperation with previous CRA: India Ratings has conducted the review on the basis of best available
information and has classified the Venkateshwara Power Projects Limited as ‘NOT COOPERATING’ vide its press release dated
May 20, 2021.

1
Complete definitions of the ratings assigned are available at www.careratings.com and in other CARE publications
*Issuer did not cooperate; based on best available information
1 CARE Ratings Limited
 Press Release

Any other information: Not Applicable

Rating History for last three years: Please refer Annexure-2

Complexity level of various instruments rated for this company: Annexure 3

Annexure-1: Details of Instruments/Facilities

Name of the Date of Coupon Maturity Size of the Issue Rating assigned along with Rating
Instrument Issuance Rate Date (Rs. crore) Outlook
Fund-based - LT- CARE BB-; Stable; ISSUER NOT
- - March 2024 103.39
Term Loan COOPERATING*
Fund-based - LT- CARE BB-; Stable; ISSUER NOT
- - - 170.00
Cash Credit COOPERATING*
*Issuer did not cooperate; Based on best available information
Annexure-2: Rating History of last three years
Current Ratings Rating history

Name of the Date(s)

Sr. Instrument/ Type Amount
Rating & Date(s) & Date(s) & Date(s) &
No. Bank Rating(s) Rating(s) Rating(s) Rating(s)
Outstanding
Facilities assigned assigned in assigned in assigned in
(Rs. crore)
in 2021- 2020-2021 2019-2020 2018-2019
2022
1)CARE BB;
1)CARE BB-; Stable; ISSUER
CARE BB-;
Stable; ISSUER NOT
Fund-based - Stable; ISSUER
NOT COOPERATING*
1. LT-Term LT 103.39 NOT - -
COOPERATING* (29-Mar-19)
Loan COOPERATING*
(10-Jul-20) 2)CARE BB;
Stable
(02-Apr-18)
1)CARE BB;
1)CARE BB-; Stable; ISSUER
CARE BB-;
Stable; ISSUER NOT
Fund-based - Stable; ISSUER
NOT COOPERATING*
2. LT-Cash LT 170.00 NOT - -
COOPERATING* (29-Mar-19)
Credit COOPERATING*
(10-Jul-20) 2)CARE BB;
Stable
(02-Apr-18)
*Issuer did not cooperate; Based on best available information

Annexure 3: Complexity level of various instruments rated for this Company

Sr. No. Name of the Instrument Complexity Level
1. Fund-based - LT-Cash Credit Simple
2. Fund-based - LT-Term Loan Simple

Note on complexity levels of the rated instrument: CARE has classified instruments rated by it on the basis of complexity. This
classification is available at www.careratings.com. Investors/market intermediaries/regulators or others are welcome to write
to care@careratings.com for any clarifications.

2 CARE Ratings Limited

 Press Release

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Email ID: nitin.dalmia@careratings.com

About CARE Ratings:

CARE Ratings commenced operations in April 1993 and over two decades, it has established itself as one of the leading
credit rating agencies in India. CARE is registered with the Securities and Exchange Board of India (SEBI) and also recognized
as an External Credit Assessment Institution (ECAI) by the Reserve Bank of India (RBI). CARE Ratings is proud of its rightful
place in the Indian capital market built around investor confidence. CARE Ratings provides the entire spectrum of credit
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Disclaimer
CARE’s ratings are opinions on the likelihood of timely payment of the obligations under the rated instrument and are
not recommendations to sanction, renew, disburse or recall the concerned bank facilities or to buy, sell or hold any
security. CARE’s ratings do not convey suitability or price for the investor. CARE’s ratings do not constitute an audit on
the rated entity. CARE has based its ratings/outlooks on information obtained from sources believed by it to be accurate
and reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any information and is not
responsible for any errors or omissions or for the results obtained from the use of such information. Most entities whose
bank facilities/instruments are rated by CARE have paid a credit rating fee, based on the amount and type of bank
facilities/instruments. CARE or its subsidiaries/associates may also have other commercial transactions with the entity. In
case of partnership/proprietary concerns, the rating /outlook assigned by CARE is, inter-alia, based on the capital
deployed by the partners/proprietor and the financial strength of the firm at present. The rating/outlook may undergo
change in case of withdrawal of capital or the unsecured loans brought in by the partners/proprietor in addition to the
financial performance and other relevant factors. CARE is not responsible for any errors and states that it has no financial
liability whatsoever to the users of CARE’s rating.
Our ratings do not factor in any rating related trigger clauses as per the terms of the facility/instrument, which may
involve acceleration of payments in case of rating downgrades. However, if any such clauses are introduced and if
triggered, the ratings may see volatility and sharp downgrades.
**For detailed Rationale Report and subscription information, please contact us at www.careratings.com

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