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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 9.50 | Not Applicable | Withdrawn | - |
| Total Outstanding Quantum (Rs. Cr) | 0.00 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 9.50 | - | - |
| Rating Rationale |
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Acuité has withdrawn its rating on the Rs.9.50 Cr bank facilities of Shyam Cotton Trading Company (SCTC). The rating has been withdrawn on account of the request received from the company and the NOC received from the banker as per Acuité policy on withdrawal of ratings.
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| About Company |
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Shyam Cotton Trading Company (SCTC) is a proprietorship concern, established in 2003 by Ms. Manju Khetan. SCTC is based in hyderabad (Telangana) engaged in trading of cotton.
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| About the Group |
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Sri Salasar Balaji Textiles Private Limited
Incorporated in November 2017, Sri Salasar Balaji Textiles Private Limited (SSBTPL) is engaged in manufacturing of cotton yarn. Mr.Dhiraj Kumar Khetan is the promoter of the company. The plant is located in Adilabad, Telangana with an installed capacity of 48,000 spindles. SSBTPL started commercial operations July, 2019. Sri Salasar Balaji Agrotech Private Limited Incorporated in 2003, Sri Salasar Balaji Agro Tech Private Limited (SSBATPL) is a Hyderabadbased company engaged in the business of FP Bales (full pressed bales) and cotton yarn. Mr. Dhiraj Kumar Khetan and his family members are the promoters of the company. |
Analytical Approach
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Not Applicable
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Key Rating Drivers
| Strengths |
| Not Applicable
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| Weaknesses |
| Not Applicable
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| Rating Sensitivities |
| Not Applicable. |
| Material Covenants |
| None. |
| Liquidity Position |
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Not Applicable
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| Outlook: |
| Not Applicable |
| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 22 (Actual) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 1300.33 | 723.70 |
| PAT | Rs. Cr. | 11.01 | 5.77 |
| PAT Margin | (%) | 0.85 | 0.80 |
| Total Debt/Tangible Net Worth | Times | 1.87 | 2.26 |
| PBDIT/Interest | Times | 2.34 | 2.10 |
| Status of non-cooperation with previous CRA (if applicable) |
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SCTC has not cooperated with CARE Ratings which has published its ratings as an issuer not co-operating vide release dated June 07, 2022. The reason provided by CARE Ratings was non-furnishing of information for monitoring of ratings.
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| Any Other Information |
| None. |
| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Trading Entitie: https://www.acuite.in/view-rating-criteria-61.htm |
| Note on Complexity Levels of the Rated Instrument |
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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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