Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 15.00 ACUITE D | Reaffirmed | Issuer not co-operating* -
Total Outstanding 15.00 - -
Total Withdrawn 0.00 - -
* The issuer did not co-operate; based on best available information.
 
Rating Rationale

­­Acuité has reaffirmed the long-term rating of ‘ACUITE D' (read as ACUITE D) on the Rs. 15.00 crore bank facilities of Keerthi Enterprises (KE). The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information


About the Company

­Incorporated in 2011 by Mr. K Baranidharan, Keerthi Enterprises (KE) is a proprietorship concern engaged in manufacturing of safety gloves. The entity trades in industrial safety gloves, safety gadgets such as gloves, ear plugs, nose protection, eye protection, head protection, cotton aprons, and feet protection, among others. The entity has installed capacity to manufacture 42,240 pairs/day of safety gloves at its facility in Kanchipuram (Tamil Nadu).

 
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 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

 
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 17 (Actual) FY 16 (Actual)
Operating Income Rs. Cr. 245.19 91.54
PAT Rs. Cr. 7.27 1.20
PAT Margin (%) 2.96 1.31
Total Debt/Tangible Net Worth Times 1.25 1.29
PBDIT/Interest Times 6.46 6.33
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

Note on complexity levels of the rated instrument

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
14 Sep 2023 Cash Credit Long Term 9.00 ACUITE D (Reaffirmed & Issuer not co-operating*)
Working Capital Demand Loan (WCDL) Long Term 3.50 ACUITE D (Reaffirmed & Issuer not co-operating*)
Proposed Cash Credit Long Term 2.50 ACUITE D (Reaffirmed & Issuer not co-operating*)
17 Jun 2022 Cash Credit Long Term 9.00 ACUITE D (Downgraded & Issuer not co-operating* from ACUITE BB-)
Working Capital Demand Loan (WCDL) Long Term 3.50 ACUITE D (Downgraded & Issuer not co-operating* from ACUITE BB-)
Proposed Cash Credit Long Term 2.50 ACUITE D (Downgraded & Issuer not co-operating* from ACUITE BB-)
14 Apr 2021 Cash Credit Long Term 9.00 ACUITE BB- (Downgraded & Issuer not co-operating* from ACUITE BB)
Proposed Cash Credit Long Term 2.50 ACUITE BB- (Downgraded & Issuer not co-operating* from ACUITE BB)
Working Capital Demand Loan (WCDL) Long Term 3.50 ACUITE BB- (Downgraded & Issuer not co-operating* from ACUITE BB)
* The issuer did not co-operate; based on best available information.
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
City Union Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 9.00 Simple ACUITE D | Reaffirmed | Issuer not co-operating*
Not Applicable Not avl. / Not appl. Proposed Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.50 Simple ACUITE D | Reaffirmed | Issuer not co-operating*
City Union Bank Ltd Not avl. / Not appl. Working Capital Demand Loan (WCDL) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.50 Simple ACUITE D | Reaffirmed | Issuer not co-operating*
* The issuer did not co-operate; based on best available information.

Contacts

About Acuité Ratings & Research

© Acuité Ratings & Research Limited. All Rights Reserved.www.acuite.in