Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 5.90 ACUITE B- | Reaffirmed | Issuer not co-operating* -
Bank Loan Ratings 6.00 - ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 11.90 - -
Total Withdrawn Quantum (Rs. Cr) 0.00 - -
 
Rating Rationale

­Acuité has reaffirmed the long-term rating of ‘ACUITE B-’ (read as ACUITE B minus) and the short-term rating of ‘ACUITE A4’ (read as ACUITE A four) on the Rs.11.90 crore bank facilities of Guhan Sanjeevi Enterprises (GSE). The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.


About the Company

­GSE, established in 2003, is a Chennai based partnership firm engaged in the manufacturing and trading of sheet metal components used in the auto component industry and is also into manufacturing of Transmission towers for Tamil Nadu Electricity Board (TNEB) ranging 130KV to 230KV. The firm is managed by the partners, Mr. S.Vimal and Mrs. S. Prabula. Around 70 percent of the revenues are from manufacturing of transmission towers and remaining 30 percent from the auto components.

 
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 an 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.

 
About the Rated Entity - Key Financials

­The rated entity has not shared the latest financial statements despite repeated requests.

 
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

 
Status of non-cooperation with previous CRA

­None

 
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
• Trading Entities: https://www.acuite.in/view-rating-criteria-61.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
19 Aug 2021 Bank Guarantee Short Term 6.00 ACUITE A4 ( Issuer not co-operating*)
Secured Overdraft Long Term 2.50 ACUITE B- ( Issuer not co-operating*)
Proposed Bank Facility Long Term 3.40 ACUITE B- ( Issuer not co-operating*)
04 Jun 2020 Secured Overdraft Long Term 2.50 ACUITE B- (Downgraded and Issuer not co-operating*)
Proposed Bank Facility Long Term 3.40 ACUITE B- (Downgraded and Issuer not co-operating*)
Bank Guarantee Short Term 6.00 ACUITE A4 (Issuer not co-operating*)
26 Mar 2019 Proposed Cash Credit Long Term 3.40 ACUITE B | Stable (Reaffirmed)
Bank Guarantee Short Term 6.00 ACUITE A4 (Reaffirmed)
Term Loan Long Term 1.90 ACUITE B (Withdrawn)
Secured Overdraft Long Term 2.50 ACUITE B | Stable (Assigned)
02 Jan 2018 Cash Credit Long Term 4.50 ACUITE B (Issuer not co-operating*)
Term Loan Long Term 1.90 ACUITE B (Issuer not co-operating*)
Bank Guarantee Short Term 3.00 ACUITE A4 (Issuer not co-operating*)
Proposed Cash Credit Long Term 2.50 ACUITE B (Issuer not co-operating*)
04 Nov 2016 Cash Credit Long Term 4.50 ACUITE B | Stable (Assigned)
Term Loan Long Term 1.90 ACUITE B | Stable (Assigned)
Bank Guarantee Short Term 3.00 ACUITE A4 (Assigned)
Proposed Cash Credit Long Term 2.50 ACUITE B | Stable (Assigned)
29 Jul 2016 Term Loan Long Term 1.90 ACUITE B- | Stable (Suspended)
Cash Credit Long Term 3.00 ACUITE B- | Stable (Suspended)
Proposed Cash Credit Long Term 4.00 ACUITE B- | Stable (Suspended)
Bank Guarantee Short Term 1.30 ACUITE A4 (Suspended)
Proposed Bank Guarantee Short Term 1.70 ACUITE A4 (Suspended)
28 Oct 2015 Term Loan Long Term 1.90 ACUITE B- | Stable (Assigned)
Cash Credit Long Term 3.00 ACUITE B- | Stable (Assigned)
Proposed Cash Credit Long Term 4.00 ACUITE B- | Stable (Assigned)
Bank Guarantee Short Term 1.30 ACUITE A4 (Assigned)
Proposed Bank Guarantee Short Term 1.70 ACUITE A4 (Assigned)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Union Bank of India Not Applicable Bank Guarantee/Letter of Guarantee Not Applicable Not Applicable Not Applicable 6.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
Not Applicable Not Applicable Proposed Long Term Bank Facility Not Applicable Not Applicable Not Applicable 3.40 Simple ACUITE B- | Reaffirmed | Issuer not co-operating*
Union Bank of India Not Applicable Secured Overdraft Not Applicable Not Applicable Not Applicable 2.50 Simple ACUITE B- | Reaffirmed | Issuer not co-operating*

Contacts
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About Acuité Ratings & Research

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