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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 10.00 | ACUITE BB | Downgraded | Issuer not co-operating* | - |
| Total Outstanding Quantum (Rs. Cr) | 10.00 | - | - |
| Rating Rationale |
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Acuité has downgraded its long term rating to ‘ACUITE BB' (read as ACUITE double B )’ from 'ACUITE BB+' (read as ACUITE double B plus) on the Rs 10.00 crore bank facilities of G M Sugar & Energy Limited. This rating is now an indicative rating and is based on best available information. The rating downgraded on account of information risk . |
| About the Company |
| GM Sugar and Energy Limited was incorporated in 2007 and is engaged in manufacturing of sugar and power generation. It is promoted by Mr. Gowdara Siddesh Anith Kumar, Mr. Prasanna Kumar Mallikarjunappa Gowdara, Mr. Yaragenahalli Siddabasappa Nataraju and Mr. Rajiv Gowdara Lingaraju. It is a Bangalore based Public Limited company. |
| About the Group |
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Gem Laboratories Private Limited Bangalore based Gem laboratories Private Limited was incorporated in 1993 and is a Sugar Trading company who Purchases from GM Sugar It is promoted by Mr. Gowdara Siddesh Anith Kumar, Mr. Prasanna Kumar Mallikarjunappa Gowdara. |
| 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 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. |
| 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 Sensitivities |
| "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 21 (Actual) | FY 20 (Actual) |
| Operating Income | Rs. Cr. | 133.94 | 129.89 |
| PAT | Rs. Cr. | (0.27) | 0.68 |
| PAT Margin | (%) | (0.20) | 0.52 |
| Total Debt/Tangible Net Worth | Times | 2.22 | 1.96 |
| PBDIT/Interest | Times | 1.68 | 1.76 |
| Status of non-cooperation with previous CRA |
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Brickwork Ratings vide its press release dated 15 March 2022, has mentioned the rating of GMSEL to ‘BWR C/A4’ (Downgraded & Issuer Not Cooperating) as on 15 March 2022. ICRA vide its press release dated 20.01.2023, had downgraded and reaffirmed the company to ICRA B+/Stable/A4; issuer Not Cooperating. |
| Any other information |
| Not Applicable |
| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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. |
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