Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 42.14 ACUITE BB+ | Downgraded | Issuer not co-operating* -
Total Outstanding Quantum (Rs. Cr) 42.14 - -
 
Rating Rationale
Acuité has downgraded the long-term rating to ‘ACUITE BB+’ (read as ACUITE double B plus) from ‘ACUITE BBB-’ (read as ACUITE triple B minus) on the Rs.42.14 Cr bank facilities of Puneet Enterprises (PE). The rating is now flagged as “Issuer Not-Cooperating” and is downgraded on account of information risk.

About the Firm
Puneet Enterprises (PE) is a proprietorship concern set up in 2002 by Mr. Rasdeep Singh Chawla. The firm is engaged in ginning, pressing of cotton and extraction of oil from cotton seeds. The firm also sells cotton seeds and oil cakes. The firm's manufacturing facilities are located in Sillod, Aurangabad (owned unit), Manjeet Oil Mill (Leased) and Ghatanji in Maharashtra (Leased). Has establish presence in Madhya Pradesh, Maharashtra, Rajasthan, Telangana and Odisha. The firm has long trusted relationship and has strong base of high profile customers in domestic and overseas market.The firm has ginning capacity of 8.65 lakhs quintals per annum and oil extraction capacity of 4.55 lakhs quintals per annum. Puneet Enterprises (PE) has owned unit with 675 bales per day capacity.
 
Non-cooperation by the issuer/borrower
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 05 consecutive months. 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 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
­None
 

Particulars Unit FY 21 (Actual) FY 20 (Actual)
Operating Income Rs. Cr. 332.05 413.16
PAT Rs. Cr. 4.31 4.62
PAT Margin (%) 1.30 1.12
Total Debt/Tangible Net Worth Times 0.50 0.24
PBDIT/Interest Times 2.97 2.21
Status of non-cooperation with previous CRA
­Not applicable
 
Any other information
­None
 
Applicable Criteria
• 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
• Trading Entitie: https://www.acuite.in/view-rating-criteria-61.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
20 Apr 2022 Term Loan Long Term 1.94 ACUITE BBB- | Stable (Reaffirmed)
Proposed Bank Facility Long Term 0.20 ACUITE BBB- | Stable (Reaffirmed)
Cash Credit Long Term 15.00 ACUITE BBB- | Stable (Reaffirmed)
Cash Credit Long Term 25.00 ACUITE BBB- | Stable (Reaffirmed)
21 Jan 2021 Cash Credit Long Term 25.00 ACUITE BBB- | Stable (Assigned)
Cash Credit Long Term 15.00 ACUITE BBB- | Stable (Assigned)
Term Loan Long Term 2.14 ACUITE BBB- | Stable (Assigned)
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Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Bank of Baroda Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 25.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
Punjab National Bank Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 15.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
Not Applicable Not Applicable Proposed Long Term Bank Facility Not Applicable Not Applicable Not Applicable 0.20 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
Punjab National Bank Not Applicable Term Loan 30 Jun 2018 8.45 30 Sep 2027 1.94 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
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Contacts
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About Acuité Ratings & Research
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