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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. |
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 |
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 |
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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. |
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Contacts |
Analytical | Rating Desk |
About Acuité Ratings & Research |
Acuité Ratings & Research Limited | www.acuite.in |