Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 234.75 ACUITE BB+ | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 85.50 - ACUITE A4+ | Downgraded | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 320.25 - -
 
Rating Rationale

Acuité has downgraded its long term rating to ‘ACUITE BB+’ (read as ACUITE double B plus) from 'Acuite A-' (read as ACUITE A minus) and short term rating to ‘ACUITE A4+’ (read as ACUITE A four plus) from 'ACUITE A2+' (read as ACUITE A two plus) on the Rs.320.25 crore bank facilities of Shree Warana Sahakari Dudh Utpadak Prakriya Sangh Limited.
The rating downgrade is on the account of information risk. This rating is now an indicative rating and is based on the best information available.


About the Company

Shree Warana Sahakari Dudh Utpadak Prakriya Sangh Limited (SWS), established in 1968, is a cooperative society. It is engaged in milk processing and production of dairy products. SWS has 7 lac litres per day of milk processing capacity with multi product capabilities. It offers wide range of products like pasteurized milk, tonned milk, flavoured milk, double toned milk, sweetened condensed milk, UHT milk, yoghurt, ghee, cheese, paneer, skimmed milk powder, butter milk, cream, shrikhand etc. The products are distributed under the brand name of ‘Warana’. SWS mainly has its presence in Maharashtra, Telangana, Andhra Pradesh, Karnataka and Goa. It has 2 processing units in Kolhapur and 1 in Vashi (Navi Mumbai). SWS also undertakes job work for Mondelez India Foods Limited (formerly known as Cadbury India Ltd) for the production of cocoa powder and bournvita. Further, it also takes ice cream processing contracts from Mother Dairy. The society has a distribution centre in Dubai named as Warana House to distribute milk, skimmed milk powder and ghee to Gulf countries.

 
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 is therefore being 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 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 ratingis 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 22 (Actual) FY 21 (Actual)
Operating Income Rs. Cr. 1093.11 935.00
PAT Rs. Cr. 1.89 1.13
PAT Margin (%) 0.17 0.12
Total Debt/Tangible Net Worth Times 0.76 0.79
PBDIT/Interest Times 1.55 1.31
Any other information

Acuite is yet to receive the latest NDS despite repeated request

 
Applicable Criteria
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Banks And Financial Institutions: https://www.acuite.in/view-rating-criteria-45.htm
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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
04 Feb 2022 Term Loan Long Term 50.25 ACUITE A- | Stable (Reaffirmed)
Proposed Cash Credit Long Term 10.00 ACUITE A- | Stable (Reaffirmed)
Proposed Bank Facility Short Term 70.50 ACUITE A2+ (Reaffirmed)
Proposed Bank Facility Long Term 9.50 ACUITE A- | Stable (Reaffirmed)
Proposed Short Term Loan Short Term 5.00 ACUITE A2+ (Reaffirmed)
Cash Credit Long Term 165.00 ACUITE A- | Stable (Reaffirmed)
Bank Guarantee Short Term 10.00 ACUITE A2+ (Reaffirmed)
17 Dec 2020 Bank Guarantee Short Term 10.00 ACUITE A2+ (Reaffirmed)
Proposed Term Loan Long Term 9.50 ACUITE A- | Stable (Reaffirmed)
Working Capital Demand Loan Long Term 15.00 ACUITE A- | Stable (Assigned)
Short Term Loan Short Term 0.78 ACUITE A2+ (Assigned)
Short Term Loan Short Term 1.64 ACUITE A2+ (Assigned)
Proposed Bank Facility Short Term 40.34 ACUITE A2+ (Reaffirmed)
Term Loan Long Term 67.98 ACUITE A- | Stable (Reaffirmed)
Short Term Loan Short Term 5.01 ACUITE A2+ (Assigned)
Short Term Loan Short Term 5.00 ACUITE A2+ (Reaffirmed)
Cash Credit Long Term 165.00 ACUITE A- | Stable (Reaffirmed)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Bank of India Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 10.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating*
Bank of India Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 165.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
Not Applicable Not Applicable Proposed Cash Credit Not Applicable Not Applicable Not Applicable 10.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
Not Applicable Not Applicable Proposed Long Term Loan Not Applicable Not Applicable Not Applicable 9.50 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
Not Applicable Not Applicable Proposed Short Term Bank Facility Not Applicable Not Applicable Not Applicable 70.50 Simple ACUITE A4+ | Downgraded | Issuer not co-operating*
Not Applicable Not Applicable Proposed Short Term Loan Not Applicable Not Applicable Not Applicable 5.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating*
Bank of India Not Applicable Term Loan 28 Dec 2011 Not available 31 Jan 2027 50.25 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*

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