Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 4.50 ACUITE B- | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 9.50 - ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding 14.00 - -
 
Rating Rationale

­Acuité has downgraded the long-term rating to 'ACUITE B-' (read as ACUITE B minus) from ‘ACUITE B’ (read as ACUITE B) and reaffirmed the short term rating of ‘ACUITE A4’ (read as ACUITE A four) on the Rs. 14.00 crore bank facilities of Sree Ashapura Saw Mill (SASM). The rating continues to be flagged as “Issuer Not-Cooperating” and is downgraded on account of information risk.


About the Company

­Sree Ashapura Saw Mill (­SASM) was incorporated in 1992. It is a Tamil Nadu-based firm promoted by Mr. P. Ramesh Kumar. The firm is engaged in the trading of timber.

 
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 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.

 
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 ratingis based.

 
About the Rated Entity - Key Financials

­The rated entity has not shared the latest financial statements despite repeated requests.

 
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
 
Status of non-cooperation with previous CRA
­Not Applicable
 
Any other information
­None
 
Applicable Criteria
• Trading Entities: https://www.acuite.in/view-rating-criteria-61.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
22 Feb 2023 Cash Credit Long Term 4.50 ACUITE B (Reaffirmed & Issuer not co-operating*)
Letter of Credit Short Term 6.50 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Proposed Letter of Credit Short Term 3.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
25 Nov 2021 Cash Credit Long Term 4.50 ACUITE B (Reaffirmed & Issuer not co-operating*)
Letter of Credit Short Term 6.50 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Proposed Letter of Credit Short Term 3.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
DBS Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 4.50 Simple ACUITE B- | Downgraded | Issuer not co-operating* ( from ACUITE B )
DBS Bank Ltd Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 6.50 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
Not Applicable Not avl. / Not appl. Proposed Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
­

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