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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 14.92 | ACUITE B- | Reaffirmed | Issuer not co-operating* | - |
| Total Outstanding Quantum (Rs. Cr) | 14.92 | - | - |
| Rating Rationale |
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Acuité has reaffirmed the long-term rating of ‘ACUITE B-’ (read as ACUITE B minus) on the Rs. 14.92 crore bank facilities of Sapthami Cashew Industries (SCI). The rating is flagged as “Issuer Not Cooperating” and is based on the best available information.
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| About the Company |
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Established in 1993, Sapthami Cashew Industries (SCI) is a partnership firm engaged in processing of raw cashew. It has a manufacturing unit in Udipi, Karnataka with a capacity of 9000 kgs. per day. The day to day operations are managed by its partners Mr. Ramaraya Kamath and Mr. Laxmanraya Kamath. Firm has started its own production for the past 2 to 3 months. Earlier it used to carry out job work for Mangalore Cashew Industries (MCI), sister concern. Initially, the firm will sell the products to Mangalore cashew industries for about 3 to 6 months.
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| Non-cooperation by the issuer/borrower: |
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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.
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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 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 Sensitivity |
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No information provided by the issuer / available for Acuité to comment upon.
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| Material Covenants |
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Not Applicable
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| Liquidity Position |
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No information provided by the issuer / available for Acuité to comment upon.
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| Outlook |
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Not Applicable
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| Other Factors affecting Rating |
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Not Applicable
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| Particulars | Unit | FY 19 (Provisional) | FY 18 (Actual) |
| Operating Income | Rs. Cr. | 2.87 | 2.58 |
| PAT | Rs. Cr. | 0.12 | 0.11 |
| PAT Margin | (%) | 4.21 | 4.10 |
| Total Debt/Tangible Net Worth | Times | 0.10 | 1.09 |
| PBDIT/Interest | Times | 0.00 | 5.50 |
| Status of non-cooperation with previous CRA |
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Not Applicable
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| Any other information |
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Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups.
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| Applicable Criteria |
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• 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 |
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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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