Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 18.00 ACUITE B+ | Reaffirmed | Issuer not co-operating* -
Total Outstanding 18.00 - -
 
Rating Rationale

­­Acuité has reaffirmed the long term rating of ‘ACUITE B+’ (read as ACUITE B plus)  on the Rs.18.00 crore bank facilities of Sri Shiva Durga Rice Industries (SSDRI).The rating continues to be flagged as “Issuer Not Cooperating” and is based on the best available information.


About the Company

­­Sri Shiva Durga Rice Industries (SSDRI) was incorporated in the year 2007 as a partnership firm. The firm is engaged in the milling of paddy and produces raw & boiled rice. The firm has a milling unit in Bebbigudem village of Nalgonda district of Telangana with an installed capacity of 5 tons per hour. The promoters of the firm Mr. Kasam Jagan, Mrs. Kasam Swapna, Mr. Julakanti Udaykumar, Mrs. Julakanti Vijaykumari, Mr. Karnati Karuna and Mrs. Vangaviti Sridevi have long experience of more than one decade in the rice industry. SSDRI sale its product under the brand names of SD Gold and JJJ. The firm procures paddy directly from farmers and sells it to wholesalers. Its major market is Hyderabad city with 90 percent share and the rest is sold across the state of Telangana.

 
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 rating is based.

 
Rating Sensitivity

­"No information provided by the issuer / available for Acuite to comment upon."

 
All Covenants

­Not Applicable

 
Liquidity Position

­"No information provided by the issuer / available for Acuite to comment upon."

 
Outlook

­Not Applicable

 
Other Factors affecting Rating

­Not Applicable

 

Particulars Unit FY 19 (Actual) FY 18 (Actual)
Operating Income Rs. Cr. 81.11 74.10
PAT Rs. Cr. 0.14 0.38
PAT Margin (%) 0.17 0.52
Total Debt/Tangible Net Worth Times 1.69 1.76
PBDIT/Interest Times 1.13 1.34
Status of non-cooperation with previous CRA

­Not Applicable 

 
Any other information

­None

 
Applicable Criteria
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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 Oct 2022 Proposed Bank Facility Long Term 3.00 ACUITE B+ (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 3.00 ACUITE B+ (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 12.00 ACUITE B+ (Downgraded and Issuer not co-operating*)
26 Jul 2021 Cash Credit Long Term 3.00 ACUITE BB- ( Issuer not co-operating*)
Cash Credit Long Term 12.00 ACUITE BB- ( Issuer not co-operating*)
Proposed Bank Facility Long Term 3.00 ACUITE BB- ( Issuer not co-operating*)
05 May 2020 Cash Credit Long Term 3.00 ACUITE BB- | Stable (Reaffirmed)
Proposed Bank Facility Long Term 3.00 ACUITE BB- | Stable (Assigned)
Cash Credit Long Term 12.00 ACUITE BB- | Stable (Reaffirmed)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
Canara Bank Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 12.00 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*
Canara Bank Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 3.00 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*
Not Applicable Not Applicable Proposed Long Term Bank Facility Not Applicable Not Applicable Not Applicable 3.00 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*
­

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