Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 3.00 ACUITE B+ | Reaffirmed | Issuer not co-operating* -
Bank Loan Ratings 5.50 - ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 8.50 - -
Total Withdrawn Quantum (Rs. Cr) 0.00 - -
 
Rating Rationale
­Acuité has reaffirmed the long-term rating of ‘ACUITE B+’ (read as ACUITE B plus) and short-term rating of ‘ACUITE A4’ (read as ACUITE A four) on the Rs.8.50 Cr bank facilities of Sri Vasudeva Sawmill And Wood Works. The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.

About the Company
­Vellore (Tamil Nadu) based Sri Vasudeva Saw Mill & Wood Works (SVSMWW) was established in 1980 as a proprietary firm by Mr. V. Vardharajan, Mr. A. C. Vasudevan, Ms. Girija and Mr. V Devarajan. Later, the constitution has been changed to a partnership firm in 2012. The firm is engaged in processing and trading of timber and procures 100 percent of its raw material (wooden logs) from Africa and South American countries. The firm caters to domestic clients mainly to local construction and furniture manufacturers in Tamil Nadu and southern states of India. Further, the firm has installed capacity of 100 cubic meters/ onth.
 
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 endeavoredio 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."
 
Material Covenants
­None
 
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 17 (Actual) FY 16 (Actual)
Operating Income Rs. Cr. 5.84 7.30
PAT Rs. Cr. 0.01 0.03
PAT Margin (%) 0.19 0.36
Total Debt/Tangible Net Worth Times 1.69 2.43
PBDIT/Interest Times 1.04 1.08
Status of non-cooperation with previous CRA
­None
 
Any other information
­Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups.
 
Applicable Criteria
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm
• Trading Entities: https://www.acuite.in/view-rating-criteria-61.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.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
20 Oct 2021 Proposed Bank Facility Long Term 1.00 ACUITE B+ ( Issuer not co-operating*)
Secured Overdraft Long Term 2.00 ACUITE B+ ( Issuer not co-operating*)
Letter of Credit Short Term 5.50 ACUITE A4 ( Issuer not co-operating*)
27 Jul 2020 Letter of Credit Short Term 5.50 ACUITE A4 (Issuer not co-operating*)
Proposed Bank Facility Long Term 1.00 ACUITE B+ (Issuer not co-operating*)
Secured Overdraft Long Term 2.00 ACUITE B+ (Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Karur Vysya Bank Not Applicable Letter of Credit Not Applicable Not Applicable Not Applicable 5.50 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
Not Applicable Not Applicable Proposed Long Term Bank Facility Not Applicable Not Applicable Not Applicable 1.00 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*
Karur Vysya Bank Not Applicable Secured Overdraft Not Applicable Not Applicable Not Applicable 2.00 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*

Contacts
Analytical Rating Desk
About Acuité Ratings & Research
Acuité Ratings & Research Limitedwww.acuite.in