Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 31.00 - ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 31.00 - -
 
Rating Rationale

­Acuité has reaffirmed the short-term rating of ‘ACUITE A4’ (read as ACUITE A four) on the Rs. 31.00 crore bank facilities of Enterprising Enterprises (EE). The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.


About the Company

­The Tamilnadu based, Enterprising Enterprises (EE) was established as a partnership firm in 1972 by its founder, Mr. K. Badrinarayanan, the Group chairman of the Enterprising Group. The company has an established presence in the granite quarrying and trading business in India, through EE as well as group entities including Pooshya Exports Private Limited and Yak Granite Industries Private Limited. The group is a 100% export oriented unit and caters to players in the USA, Germany, China, UK, Taiwan and Japan.

 
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 ratingis based.

 
Rating Sensitivity

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

 
Material Covenants
­None
 
Liquidity Position

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

 
Outlook
­Not Applicable
 
Other Factors affecting Rating
­Not Applicable
 

Particulars Unit FY 17 (Actual) FY 16 (Actual)
Operating Income Rs. Cr. 27.98 26.02
PAT Rs. Cr. 1.46 0.16
PAT Margin (%) 5.21 0.62
Total Debt/Tangible Net Worth Times 1.58 1.32
PBDIT/Interest Times 1.94 1.46
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
• 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

­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.

 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
06 Dec 2021 Proposed Short Term Loan Short Term 9.00 ACUITE A4 ( Issuer not co-operating*)
Bills Discounting Short Term 1.50 ACUITE A4 ( Issuer not co-operating*)
Packing Credit Short Term 20.00 ACUITE A4 ( Issuer not co-operating*)
Letter of Credit Short Term 0.50 ACUITE A4 ( Issuer not co-operating*)
08 Sep 2020 Letter of Credit Short Term 0.50 ACUITE A4 (Issuer not co-operating*)
Packing Credit Short Term 20.00 ACUITE A4 (Issuer not co-operating*)
Proposed Short Term Loan Short Term 9.00 ACUITE A4 (Issuer not co-operating*)
Bills Discounting Short Term 1.50 ACUITE A4 (Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
State Bank of India Not Applicable Bills Discounting Not Applicable Not Applicable Not Applicable 1.50 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
State Bank of India Not Applicable Letter of Credit Not Applicable Not Applicable Not Applicable 0.50 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
State Bank of India Not Applicable PC/PCFC Not Applicable Not Applicable Not Applicable 20.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
Not Applicable Not Applicable Proposed Short Term Loan Not Applicable Not Applicable Not Applicable 9.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
­

Contacts
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About Acuité Ratings & Research

Acuité Ratings & Research Limitedwww.acuite.in