Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 30.00 ACUITE C | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 8.00 ACUITE D | Downgraded | Issuer not co-operating* -
Total Outstanding Quantum (Rs. Cr) 38.00 - -
 
Rating Rationale
­Acuité has downgraded its long term rating to ‘ACUITE D' (read as ACUITE D)’ and 'ACUITE C' (read as ACUITE C)’ from ‘ACUITE B+' (read as ACUITE B plus) on the Rs.38 crore bank facilities of Penta Gold Limited. The rating continues to be flagged as “Issue Not Cooperating” and is based on the best available information and is on account of information risk.The downgrade is on the account of the suit filed against the company as mentioned in the defaulter list published by CIBIL.

About the Company
­Ahmedabad based Penta Gold Limited (PGL) was incorporated in 2012 as Penta Gold Private Limited, further the constitution was changed in March 2017 to Penta Gold Limited. The company was incorporated by Mr. Ketan Shroff and family. The company is engaged in manufacturing and trading of gold jewellery. The company sells its products in domestic as well as exports to countries like UAE, USA, Hong Kong, among others.
 
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 due date. This rating continues to be flagged as “Issuer notcooperating”, 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.
 
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
­
 
Other Factors affecting Rating
­Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups
 
Status of non-cooperation with previous CRA
­None
 
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
­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
16 May 2022 Cash Credit Long Term 20.00 ACUITE B+ (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 8.00 ACUITE B+ (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 10.00 ACUITE B+ (Downgraded and Issuer not co-operating*)
09 Feb 2021 Cash Credit Long Term 20.00 ACUITE BB- (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 10.00 ACUITE BB- (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 8.00 ACUITE BB- (Downgraded and Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Axis Bank Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 20.00 Simple ACUITE C | Downgraded | Issuer not co-operating*
Karur Vysya Bank Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 10.00 Simple ACUITE C | Downgraded | Issuer not co-operating*
State Bank of India Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 8.00 Simple ACUITE D | Downgraded | Issuer not co-operating*

Contacts
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