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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 6.00 | ACUITE B | Reaffirmed | Issuer not co-operating* | - |
| Total Outstanding Quantum (Rs. Cr) | 6.00 | - | - |
| Rating Rationale |
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Acuité has reaffirmed the long-term rating of ‘ACUITE B’ (read as ACUITE B) on the Rs. 6.00 crore bank facilities of Saraswati Rice Industries (SRI). The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.
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| About the Company |
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Saraswati Rice Industries (SRI), incorporated in 1998, is a Haryana-based partnership firm promoted by Mr. Sashi Pal Gupta and Mrs. Anita Rani. The firm is engaged in the processing and milling of basmati and non-basmati rice at Karnal (Haryana). The milling capacity of the plant is 1 tonne per hour. For FY2017, the firm reported profit after tax (PAT) of Rs.0.04 crore on operating income of Rs.32.32 crore as compared with PAT of Rs.0.02 crore on operating income of Rs.18.99 crore in FY2016. The net worth stood at Rs.2.66 crore as on March 31, 2017 against Rs.1.18 crore a year earlier. The net worth of Rs.2.66 crore in FY2016 includes quasi-equity of 1.35 crore.
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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.
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: |
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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 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 creditrating is based.
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| Rating Sensitivity |
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No information provided by the issuer / available for Acuite 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 Acuite 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 17 (Actual) | FY 16 (Actual) |
| Operating Income | Rs. Cr. | 32.32 | 18.99 |
| PAT | Rs. Cr. | 0.04 | 0.02 |
| PAT Margin | (%) | 0.12 | 0.13 |
| Total Debt/Tangible Net Worth | Times | 2.00 | 5.44 |
| PBDIT/Interest | Times | 1.39 | 1.11 |
| 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 • Complexity Level Of Financial Instruments: https://www.acuite.in/view-rating-criteria-55.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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