India Ratings assigns Vivek Realty & Resorts ‘IND BB-’; outlook stable

BANGALORE: The ratings reflect the construction stage of the VRRPL’s ongoing real estate project ‘New Cosmocity’ and the time and cost overrun risk associated with it. The project is likely to be completed by March 2018. The ratings factor in the company’s total booked advances of only INR45.76 million till January 2017 which is 12.61% of the total project cost. The ratings further factor in the fact that this is the first residential project of the promoters.

The ratings, however, derive support from the project’s locational advantage as it is located at NH-6, Kharagpur having proximity to all the basic amenities such as school, market, hospital etc.

Timely execution of the project within the projected cost outlay would be positive for the ratings. Any delays or cost overruns in the project would lead to a negative rating action.

VRRPL was incorporated in July 2008 for development of a residential project ‘New Cosmocity’ in Saha Chowk, NH-6, Mumbai Road- Kharagpur, West Bengal.