Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 5.00 ACUITE B | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 3.00 - ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding 8.00 - -
 
Rating Rationale

­Acuité has downgraded the long-term rating to ‘ACUITE B’ (read as ACUITE B) from 'ACUITE B+' (read as ACUITE B plus) and reaffirmed the short term rating of ‘ACUITE A4’ (read as ACUITE A four) on the Rs.8.00 crore bank facilities of Sri Mahabaleshwara Enterprises (SME) on account of information risk. The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.


About the Company

­­Sri Mahabaleshwara Enterprises (SME) was established in the year 1989 as a proprietorship concern by Mr. Mahabaleshwara Bhat. Based out of Bangalore, the firm is engaged in providing manpower to various government authorities and private companies.

 
About the Group

­­­Acuité has considered the consolidated business and financial risk profile of Sri Mahabaleshwara Human Resources Services Private Limited (SMPL) and Sri Mahabaleshwar Enterprises (SME) to arrive at the rating on account of takeover of SME by SMPL. Karnataka based, ­Sri Mahabaleshwara Human Resources Services Private Limited (SMPL) was incorporated in 2017 to take over the existing business of a group firm named Sri Mahabaleshwara Enterprises (SME), which was incorporated in 1998 by Mr. Mahabaleshwara Bhat. The company provides manpower recruitment services to government authorities and private companies.Sri Mahabaleshwara Enterprises (SME) was established in the year 1989 as a proprietorship concern by Mr. Mahabaleshwara Bhat. Based out of Bangalore, the firm is engaged in providing manpower to various government authorities and private companies.

 
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
• Service Sector: https://www.acuite.in/view-rating-criteria-50.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
• Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.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
26 May 2023 Proposed Bank Guarantee Short Term 1.50 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Bank Guarantee (BLR) Short Term 1.50 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Proposed Secured Overdraft Long Term 1.50 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
Secured Overdraft Long Term 3.50 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
25 Feb 2022 Secured Overdraft Long Term 3.50 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
Proposed Secured Overdraft Long Term 1.50 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
Bank Guarantee (BLR) Short Term 1.50 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Proposed Bank Guarantee Short Term 1.50 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
Canara Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.50 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
Not Applicable Not avl. / Not appl. Proposed Bank Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.50 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
Not Applicable Not avl. / Not appl. Proposed Secured Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.50 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE B+ )
Canara Bank Not avl. / Not appl. Secured Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.50 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE B+ )

Contacts




About Acuité Ratings & Research

© Acuité Ratings & Research Limited. All Rights Reserved.www.acuite.in