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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 241.83 | ACUITE BB | Reaffirmed & Withdrawn | Issuer not co-operating* | - |
| Bank Loan Ratings | 4.54 | Not Applicable | Withdrawn | - |
| Total Outstanding | 0.00 | - | - |
| Total Withdrawn | 246.37 | - | - |
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Rating Rationale |
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Acuité has reaffirmed and withdrawn the long-term rating of ‘ACUITE BB' (read as ACUITE double B)’ on the Rs 241.83 bank facilities, and the long term rating on the Rs.4.54 crore bank facilities of Belgaum Sugars Private Limited was withdrawn by without assigning any rating as facility is a proposed facility. The rating has been withdrawn on Acuite's policy of withdrawal of ratings as applicable to the respected facility/instrument. The rating has been withdrawn on account of the request received from the company, and the NOC received from the banker. The rating continues to be an indicative rating, and based on the best available information. |
| About the Company |
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Belgaum Sugars Private Limited (BSPL), was incorporated in 2007 and is a wholly owned subsidiary of Satish Sugar Limited (SSL) based in Karnataka. The commercial operations of the company commenced in November, 2016. BSPL is engaged in the production of sugar and its sugar plant located in Belagavi district, in the state of Karnataka with the installed capacity of 3500 tonnes crushed per day (TCD) and power cogeneration with capacity of 14 MW.
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| Unsupported Rating |
| Not Applicable |
| Non-cooperation by the issuer/borrower: |
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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 noncooperation 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.
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| 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 endeavoured 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 ratingis based. |
| Rating Sensitivity |
| No information provided by the issuer / available for Acuite to comment upon." |
| Liquidity Position |
| No information provided by the issuer / available for Acuite to comment upon." |
| Outlook: Not Applicable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 22 (Provisional) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 1052.90 | 815.15 |
| PAT | Rs. Cr. | 36.82 | 13.25 |
| PAT Margin | (%) | 3.50 | 1.62 |
| Total Debt/Tangible Net Worth | Times | 2.09 | 2.26 |
| PBDIT/Interest | Times | 2.00 | 1.51 |
| Status of non-cooperation with previous CRA |
| Not Applicable |
| Any other information |
| None |
| Applicable Criteria |
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• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm |
| Note on Complexity Levels of the Rated Instrument |
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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 www.acuite.in
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