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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 10.00 | ACUITE BB- | Reaffirmed | Issuer not co-operating* | - |
| Total Outstanding Quantum (Rs. Cr) | 10.00 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 0.00 | - | - |
| Rating Rationale |
| Acuite has reaffirmed its long term rating at "ACUITE BB-"(read as ACUITE double B minus) on the Rs.10 Crore bank facilities of Shubham Industries. The rating is now indicative and is based on the best available information. |
| About the Company |
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Gujarat-based, SI was established as a partnership firm in 2005. The firm is engaged in processing of raw cotton to produce cotton bales and cottonseed oil. The firm is promoted by Mr. Ramesh Bhai Patel and his family members. The firm procures raw cotton of Shankar 6 variety from Gujarat, Maharashtra, Andhra Pradesh, Karnataka and Madhya Pradesh. Cotton bales are sold to spinning mills and exporters in Gujarat, Tamil Nadu and other states. Cotton oil is sold to refineries located in Gujarat.
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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 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.
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| 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 credit rating is based.
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| 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 20 (Actual) | FY 19 (Actual) |
| Operating Income | Rs. Cr. | 47.51 | 36.61 |
| PAT | Rs. Cr. | 0.30 | 0.26 |
| PAT Margin | (%) | 0.63 | 0.71 |
| Total Debt/Tangible Net Worth | Times | 0.56 | 1.31 |
| PBDIT/Interest | Times | 2.23 | 1.63 |
| Status of non-cooperation with previous CRA |
| SHUBHAM INDUSTRIES mentioned as issuer not cooperating from CRISIL since July 25, 2017 with the rating of B(Stable). In addition to that the company has also mentioned as issuer not cooperating from IND-RA on March 01 ,2018 with the rating at BB-. |
| 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 |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm |
| Note on Complexity Levels of the Rated Instrument |
| https://www.acuite.in/view-rating-criteria-55.htm |
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