November 19, 2013

Mumbai

ARSS Infrastructure Projects Limited

Ratings Suspended

Total Bank Loan Facilities Rated	Rs.5580.8 Million
Long-Term Rating	Suspended
Short-Term Rating	Suspended

(Refer to Annexure 1 for details on facilities)

CRISIL has suspended its ratings on the bank facilities of ARSS Infrastructure Projects Ltd (ARSS). The suspension of ratings is on account of non-cooperation by ARSS with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, ARSS is yet to provide adequate information to enable CRISIL to assess ARSS’s ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria ‘Information Availability Risk in Credit Ratings’

About the Company

ARSS was incorporated in 2000. The company undertakes construction of railway infrastructure, roads, highways, bridges, and irrigation systems. It has developed expertise in railway construction projects, which involve earthwork, building of major and minor bridges, supply of ballast and sleepers, laying of sleepers and rails, and linking of tracks. ARSS undertakes most of its projects in Orissa, with revenues from other states accounting for around 33 per cent to its outstanding order book. Over the past decade, the company has executed more than 80 projects, constructing over 300 kilometer (km) of roads and highways, 200 km of rail tracks, 10 minor and major bridges, and other general civil engineering works. ARSS issued an initial public offering in February 2010.

Annexure 1 - Details of various bank facilities

Current facilities			Previous facilities
Facility	Amount (Rs. Million)	Rating	Facility	Amount (Rs. Million)	Rating
Bank Guarantee	3700	Suspended	Bank Guarantee	3700	CRISIL D
Cash Credit*	1210	Suspended	Cash Credit*	1210	CRISIL D
Letter of Credit	50	Suspended	Letter of Credit	50	CRISIL D
Long-Term Loan	570.8	Suspended	Long-Term Loan	570.8	CRISIL D
Standby Line of Credit	50	Suspended	Standby Line of Credit	50	CRISIL D
Total	5580.8	--	Total	5580.8	--

*Interchangeable with Bank Guarantee up to Rs.150 Million

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Last updated: May, 2013

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November 19, 2013	http://www.crisil.com