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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 15.00 | ACUITE B | Downgraded | Issuer not co-operating* | - |
| Total Outstanding | 15.00 | - | - |
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Rating Rationale |
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Acuité has downgaded its long-term rating to ‘ACUITE B’ (read as ACUITE B) from ’ACUITE B+’ (read as ACUITE B plus) on the Rs. 15.00 Cr. bank facilities of Nanda Gokula Industries (NGI). The rating is now flagged as “Issuer Not-Cooperating” on account of information risk and is based on the best available information. The downgraded is on account of non submission of NDS for the last 03 months.
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| About the Company |
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Established in 2012, Nanda Gokula Industries (NGI) is a proprietorship concern promoted by Mrs. Chandramathi Shetty. The day to day operations are managed by Mr. Premanand Shetty. NGI is engaged in the processing of plain cashew kernels from raw cashew nuts (RCNs). The processing unit is located in Mangalore (Karnataka) with an installed capacity to process 5 tonnes of raw cashew nuts per day.
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| Unsupported Rating |
| Not Applicable |
| Non-cooperation by the issuer/borrower |
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Acuité has been requesting for No Default Statements (NDS); however, despite multiple requests; the Company’s management has remained non-cooperative and not submitted the NDS for the preceding 03 consecutive months. 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.
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| Limitation regarding information availability |
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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 has 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.
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| Rating Sensitivities |
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No information provided by the issuer / available for Acuite to comment upon
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| Liquidity Position |
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No information provided by the issuer / available for Acuite to comment upon
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| Outlook: Not Applicable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 23 (Provisional) | FY 22 (Actual) |
| Operating Income | Rs. Cr. | 22.09 | 18.80 |
| PAT | Rs. Cr. | 0.54 | 0.50 |
| PAT Margin | (%) | 2.44 | 2.64 |
| Total Debt/Tangible Net Worth | Times | 4.34 | 4.20 |
| PBDIT/Interest | Times | 2.12 | 2.22 |
| Status of non-cooperation with previous CRA |
| Not Applicable |
| Any other information |
| None |
| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.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 |
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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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