Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 4.76 ACUITE B+ | Reaffirmed & Withdrawn | Issuer not co-operating* -
Bank Loan Ratings 1.24 Not Applicable | Withdrawn -
Bank Loan Ratings 3.00 - ACUITE A4 | Reaffirmed & Withdrawn | Issuer not co-operating*
Total Outstanding 0.00 - -
Total Withdrawn 9.00 - -
 
Rating Rationale

­­Acuité has reaffirmed and withdrawn the long-term rating of ‘ACUITE B+’ (read as ACUITE B plus) and the short-term rating of ‘ACUITE A4’ (read as ACUITE A four) on the Rs  7.76 Cr bank facilities, and withdrawn the proposed long term facility without assigning any rating on the Rs. 1.24 Cr. of Shri Venkateshwara Hi tech Machineries Private Limited (SVHMPL).

The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.


The rating has been withdrawn on Acuite's policy of withdrawal of ratings as applicable to the respective instrument/facility.
The rating has been withdrawn on account of the request received from the company, and the NOC received from the banker.

About the Company
­­Established in 1990, Shri Venkateshwara Hi tech Machineries Private Limited (SVHMPL) is engaged in the business of manufacturing and supply of engineering goods. The directors of the company are Mr. T. Kalimuthu, Mr. T. Ramachandran and Mr. T. Govindaraju who have around 4 decades of experience. The entity supplies capital goods equipment’s and spares to paper plants, cement plants, Indian railways and ISRO (Indian Space Research Organization) on order basis. The company is based in Coimbatore, Tamil Nadu
 
Unsupported Rating
­Not Applicable
 
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 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.
 
Rating Sensitivity
­­No information provided by the issuer / available for Acuite to comment upon
 
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 23 (Actual) FY 22 (Actual)
Operating Income Rs. Cr. 21.89 17.79
PAT Rs. Cr. 2.56 0.80
PAT Margin (%) 11.67 4.48
Total Debt/Tangible Net Worth Times 0.22 0.17
PBDIT/Interest Times 26.62 5.63
Status of non-cooperation with previous CRA
­­Not Applicable
 
Any other information
­None
 
Applicable Criteria
• 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
­­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
18 Jan 2024 Cash Credit Long Term 4.00 ACUITE B+ ( Issuer not co-operating*)
Proposed Bank Facility Long Term 0.74 ACUITE B+ ( Issuer not co-operating*)
Proposed Term Loan Long Term 0.50 ACUITE B+ ( Issuer not co-operating*)
Bank Guarantee Short Term 3.00 ACUITE A4 ( Issuer not co-operating*)
Term Loan Long Term 0.76 ACUITE B+ ( Issuer not co-operating*)
04 Nov 2022 Proposed Term Loan Long Term 0.50 ACUITE B+ ( Issuer not co-operating*)
Proposed Bank Facility Long Term 0.74 ACUITE B+ ( Issuer not co-operating*)
Bank Guarantee Short Term 3.00 ACUITE A4 ( Issuer not co-operating*)
Term Loan Long Term 0.76 ACUITE B+ ( Issuer not co-operating*)
Cash Credit Long Term 4.00 ACUITE B+ ( Issuer not co-operating*)
11 Aug 2021 Cash Credit Long Term 4.00 ACUITE B+ (Downgraded and Issuer not co-operating*)
Proposed Bank Facility Long Term 0.74 ACUITE B+ (Downgraded and Issuer not co-operating*)
Term Loan Long Term 0.76 ACUITE B+ (Downgraded and Issuer not co-operating*)
Proposed Term Loan Long Term 0.50 ACUITE B+ (Downgraded and Issuer not co-operating*)
Bank Guarantee Short Term 3.00 ACUITE A4 ( Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
Union Bank of India Not avl. / Not appl. Bank Guarantee/Letter of Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.00 Simple ACUITE A4 | Reaffirmed & Withdrawn | Issuer not co-operating*
Union Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 4.00 Simple ACUITE B+ | Reaffirmed & Withdrawn | Issuer not co-operating*
Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.74 Simple Not Applicable|Withdrawn
Not Applicable Not avl. / Not appl. Proposed Long Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.50 Simple Not Applicable|Withdrawn
Union Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 15 Jul 2027 0.76 Simple ACUITE B+ | Reaffirmed & Withdrawn | Issuer not co-operating*
­

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