Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 26.00 ACUITE BB- | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 19.00 - ACUITE A4 | Downgraded | Issuer not co-operating*
Total Outstanding 45.00 - -
 
Rating Rationale

­Acuité has downgraded its long-term rating to ‘ACUITE BB-’ (read as ACUITE double B minus) from 'ACUITE BB’ (read as ACUITE double B) and the short-term rating to ‘ACUITE A4’ (read as ACUITE A four) from 'ACUITE A4+' (read as ACUITE A four plus) on the Rs.45.00 crore bank facilities of Sri Raghavendra Ferro Alloys Private Limited (SRFAPL).
This rating is now  flagged as “Issuer Not-Cooperating” and  is based on best available information.
The rating has been downgraded on account of information risk.

About the Company
­Sri Raghavendra Ferro Alloys Private Limited (SRFAPL) was initially incorporated in the year 2004 by Mr. K Srinivasa Reddy. The company is primarily involved in the business of manufacturing Ferro Alloys and in particular Silico Manganese and Ferro Silicon. The company’s registered office is located at Nalgonda, Telangana and has 4 manufacturing plants with a combined annual capacity of around 40,000 tonnes per annum.
 
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 an 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 has endeavoured 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 Sensitivities
­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 24 (Provisional) FY 23 (Actual)
Operating Income Rs. Cr. 79.18 184.51
PAT Rs. Cr. 0.59 1.94
PAT Margin (%) 0.74 1.05
Total Debt/Tangible Net Worth Times 0.50 0.50
PBDIT/Interest Times 2.99 2.35
Status of non-cooperation with previous CRA
­Not Applicable
 
Any other information
­None
 
Applicable Criteria
• 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
­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
10 Apr 2023 Letter of Credit Short Term 15.00 ACUITE A4+ (Reaffirmed)
Cash Credit Long Term 21.00 ACUITE BB | Stable (Reaffirmed)
Bank Guarantee/Letter of Guarantee Short Term 4.00 ACUITE A4+ (Reaffirmed)
Term Loan Long Term 5.00 ACUITE BB | Stable (Reaffirmed)
12 Dec 2022 Cash Credit Long Term 22.00 ACUITE BB (Reaffirmed & Issuer not co-operating*)
Letter of Credit Short Term 15.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
Bank Guarantee/Letter of Guarantee Short Term 8.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
16 Sep 2021 Bank Guarantee/Letter of Guarantee Short Term 8.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 22.00 ACUITE BB (Downgraded & Issuer not co-operating* from ACUITE BB+ | Stable)
Letter of Credit Short Term 15.00 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
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. 4.00 Simple ACUITE A4 | Downgraded | Issuer not co-operating* ( from ACUITE A4+ )
Union Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 21.00 Simple ACUITE BB- | Downgraded | Issuer not co-operating* ( from ACUITE BB )
Union Bank of India Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE A4 | Downgraded | Issuer not co-operating* ( from ACUITE A4+ )
Union Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 31 Mar 2029 5.00 Simple ACUITE BB- | Downgraded | Issuer not co-operating* ( from ACUITE BB )
­

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