Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 20.50 ACUITE D | Downgraded | Issuer not co-operating* -
Total Outstanding Quantum (Rs. Cr) 20.50 - -
Total Withdrawn Quantum (Rs. Cr) 0.00 - -
 
Rating Rationale
­ACUITE has downgraded the long term rating to ‘ACUITE D’ (read as ACUITE D) from ‘ACUITE B+’ (read as ACUITE B plus) to Rs.20.50 crore bank facilities of Shree Aarti Enterprises (SAE). The rating continues to be flagged as “Issuer Not-Cooperating” and is based on best available information.
Rationale for the rating
The downgrade is on account of the feedback received from the banker that the account had been classified as NPA (Non Perfoming Asset).The company has been non-cooperative with us since the past four years and has not been submitting No Default Statement (NDS) also.

About the Company
­Shree Aarti Enterprises (SAE) was established in 1998 as a partnership firm among 4 partners based out of Madhya Pradesh. It is a familyowned business managed by Mr. Abhishek Goyal, Mr. Bhikamchand Goyal, Mr. Kailashchand Goyal and Mrs. Shakuntala Goyal. The firm is engaged in ginning and pressing of cotton bales, extraction of cottonseed oil and wholesale trading of food grains.
 
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 the due date. 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 continues to be 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.
 
About the Rated Entity - 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
­Not Applicable
 
Status of non-cooperation with previous CRA
­Brickworks, vide its Press Release dated 31.05.22, reaffirmed SAE to BWR C; Issuer Not Cooperating.
 
Any other information
­Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups.
 
Applicable Criteria
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm
• Trading Entities: https://www.acuite.in/view-rating-criteria-61.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
22 Nov 2021 Term Loan Long Term 3.50 ACUITE B+ (Downgraded and Issuer not co-operating*)
Term Loan Long Term 0.07 ACUITE B+ (Downgraded and Issuer not co-operating*)
Proposed Bank Facility Long Term 3.34 ACUITE B+ (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 12.00 ACUITE B+ (Downgraded and Issuer not co-operating*)
Term Loan Long Term 1.59 ACUITE B+ (Downgraded and Issuer not co-operating*)
27 Aug 2020 Term Loan Long Term 1.59 ACUITE BB- | Stable (Upgraded from ACUITE B+)
Proposed Bank Facility Long Term 3.34 ACUITE BB- | Stable (Upgraded from ACUITE B+)
Term Loan Long Term 3.50 ACUITE BB- | Stable (Upgraded from ACUITE B+)
Term Loan Long Term 0.07 ACUITE BB- | Stable (Assigned)
Cash Credit Long Term 12.00 ACUITE BB- | Stable (Upgraded from ACUITE B+)
30 Jan 2020 Proposed Bank Facility Long Term 2.96 ACUITE B+ (Issuer not co-operating*)
Term Loan Long Term 2.04 ACUITE B+ (Issuer not co-operating*)
Cash Credit Long Term 12.00 ACUITE B+ (Issuer not co-operating*)
Proposed Term Loan Long Term 3.50 ACUITE B+ (Issuer not co-operating*)
­

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 12.00 Simple ACUITE D | Downgraded | Issuer not co-operating*
Not Applicable Not Applicable Proposed Long Term Bank Facility Not Applicable Not Applicable Not Applicable 3.34 Simple ACUITE D | Downgraded | Issuer not co-operating*
Bank of Baroda Not Applicable Term Loan Not available Not available Not available 1.59 Simple ACUITE D | Downgraded | Issuer not co-operating*
Bank of Baroda Not Applicable Term Loan Not available Not available Not available 0.07 Simple ACUITE D | Downgraded | Issuer not co-operating*
Bank of Baroda Not Applicable Term Loan Not available Not available Not available 3.50 Simple ACUITE D | Downgraded | Issuer not co-operating*

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