|
|
| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 53.90 | ACUITE BB | Downgraded | Issuer not co-operating* | - |
| Bank Loan Ratings | 5.10 | - | ACUITE A4+ | Reaffirmed | Issuer not co-operating* |
| Total Outstanding | 59.00 | - | - |
|
Rating Rationale |
|
Acuité has downgraded the long-term rating to 'ACUITE BB' (read as ACUITE double B) from 'ACUITE BB+' (read as ACUITE double B plus) and reaffirmed the short term rating to 'ACUITE A4+' (read as ACUITE A four plus) on Rs. 59.00 Cr. bank facilities of Kamarhatty Co Limited. The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information. The rating has been downgraded on account of information risk.
|
| About the Company |
|
Kamarhatty CO Limited was set up in 1877 under British managing agency Jardine Henderson Ltd which was later on taken over by its current director Mr. Sushant Kumar Agarwal in 1987 and is one of the oldest functioning composite jute mills in the locality. The company is engaged in manufacturing of hessian, sacks and jute yarn with manufacturing facility located in Kamarhatti, Kolkata, on the banks of the river Ganges. Currently, the company is managed by Mr. Harsh Nahata.
|
| About the Group |
|
Incorporated in 2004, Kamakshi Jute Industries Limited (KJIL) is engaged in manufacturing of hessian bags, sacks and jute yarn with manufacturing facility located at Cooch Behar, West Bengal spread across an area of 14.95 acres of land. The installed capacity is 3800 TPA for yarn, 2390 TPA for hessian bags and 8670 TPA for sacking. The company is currently managed by its directors Mr. Harsh Nahata, Mr. Virendra Nahata and Mr. Sushant Kumar Nahata. KJIL procures raw jute from suppliers located in Kolkata and nearly 90 percent sales are made to Directorate General of Supplies and Goods.
Keshava Jute Mills Private Limited (the 'Company') formerly Kishore Trading Company Private Limited is engaged in manufacturing of jute yam, hessian fabrics and sacking bags. Incorporated on 2nd November 2010, the company has its manufacturing unit in Rajam, Andhra Pradesh. Currently, the company is managed by its director Mr. Harsh Nahata. |
| Unsupported Rating |
| Not Applicable |
| 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 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 rating is 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 |
| |
| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 23 (Actual) | FY 22 (Actual) |
| Operating Income | Rs. Cr. | 657.20 | 623.99 |
| PAT | Rs. Cr. | 22.14 | 20.34 |
| PAT Margin | (%) | 3.37 | 3.26 |
| Total Debt/Tangible Net Worth | Times | 1.12 | 0.97 |
| PBDIT/Interest | Times | 4.06 | 5.74 |
| Status of non-cooperation with previous CRA |
| Not Applicable |
| Any other information |
| None |
| 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 • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.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.
|
|
| |
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| *Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||
|
||||||||
|
Contacts |
|
|
|
About Acuité Ratings & Research |
