Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 3.00 ACUITE B | Reaffirmed | Issuer not co-operating* -
Bank Loan Ratings 12.00 - ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 15.00 - -
Rating Rationale

­Acuité has reaffirmed the long-term rating of ‘ACUITE B’ (read as ACUITE B) and the short term rating to ’ACUITE A4’ (read as ACUITE A four) on the Rs.15.00 Crore bank facilities of Mittal Timber Store (MTS). The rating continues to be flagged as “Issuer Not-Cooperating” and is based on best available information.

About the Company

­Established in 1975, Mittal Timber Store is a proprietary concern promoted by Mr. Krishan Mittal. The firm is engaged in import, sawing and wholesale trading of timber by the import of wood from Malaysia, Indonesia, Nigeria, South Africa, Canada, New Zealand and other countries. The firm has its branch office and warehouse at Gandhidham (Gujarat), where the imported timbers are stored. Apart from this, the firm has its head office at Karnal. The timber imported in the shape of logs is either sawed into different sizes at Gandhidham by the firm’s sawmills or sold on high seas basis or sawn timber.

Non-cooperation by the issuer/borrower:

­Acuité has been requesting for data, information and undertakings from the rated entity for conducting surveillance & review of the rating. However, the issuer/borrower failed to submit such information before the due date.

Acuité believes that information risk is a critical component in such ratings, and non-cooperation by the issuer along with unwillingness to provide information could be a sign of potential deterioration in its overall credit quality.

This rating is, therefore, being flagged as “Issuer not-cooperating”, in line with prevailing SEBI regulations and Acuité’s policies.

Limitation regarding information availability:

­The rating is based on information available from sources other than the issuer/borrower (in the absence of information provided by the issuer/borrower). Acuité endeavored to gather information about the entity/industry from the public domain. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit rating is based.

Rating Sensitivity

­No information provided by the issuer / available for Acuité to comment upon.

Material Covenants

­Not Applicable

Liquidity Position

­No information provided by the issuer / available for Acuité to comment upon.


­Not Applicable

Other Factors affecting Rating

­Not Applicable


Particulars Unit FY 19 (Provisional) FY 18 (Actual)
Operating Income Rs. Cr. 27.37 37.19
PAT Rs. Cr. 0.16 0.17
PAT Margin (%) 0.58 0.45
Total Debt/Tangible Net Worth Times 0.43 0.23
PBDIT/Interest Times 1.28 1.19
Status of non-cooperation with previous CRA

­Not Applicable

Any other information

­Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups.

Applicable Criteria
• Trading Entities:
• Default Recognition:
• Application Of Financial Ratios And Adjustments:

Note on Complexity Levels of the Rated Instrument

­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’ s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on


Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
02 Mar 2022 Letter of Credit Short Term 12.00 ACUITE A4 ( Issuer not co-operating*)
Cash Credit Long Term 3.00 ACUITE B ( Issuer not co-operating*)
02 Dec 2020 Cash Credit Long Term 3.00 ACUITE B (Issuer not co-operating*)
Letter of Credit Short Term 12.00 ACUITE A4 (Issuer not co-operating*)

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Punjab National Bank Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 3.00 Simple ACUITE B | Reaffirmed | Issuer not co-operating*
Punjab National Bank Not Applicable Letter of Credit Not Applicable Not Applicable Not Applicable 12.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*

Analytical Rating Desk
About Acuité Ratings & Research

Acuité Ratings & Research