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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 2.00 | - | ACUITE A4+ | Downgraded | Issuer not co-operating* |
| Bank Loan Ratings | 28.00 | ACUITE BB+ | Downgraded | Issuer not co-operating* | - |
| Total Outstanding Quantum (Rs. Cr) | 30.00 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 0.00 | - | - |
| Rating Rationale |
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Acuité has downgraded its long-term rating to ‘ACUITE BB+’ (read as ACUITE Double B Plus) from ‘ACUITE BBB-’ (read as ACUITE Triple B Minus) and downgraded the short term rating to 'ACUITE A4+' (read as ACUITE A Four Plus) from 'ACUITE A3' (read as ACUITE A Three) on the Rs.30.00 crore bank facilities of Sri Venkatesh Granites Private Limited (SVGPL). This rating is now an indicative rating and is based on best available information.
The rating has been downgraded on account of information risk. |
| About the Company |
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Telangana based Sri Venkatesh Granites Private Limited was established as a partnership firm in the year 2004 and later in 2008 it was reconstituted to a private limited company. The company is engaged in drilling and extracting of rough granite blocks from quarries. The company has 12 quarries spreading across 60 acres of land in and around Karimnagar, Telangana. The company is led by Mr. Venugopal Karwa and family.
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| Non-cooperation by the issuer/borrower |
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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 noncooperation 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 |
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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.
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| Rating Sensitivities |
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No information provided by the issuer / available for Acuite to comment upon.
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| Material Covenants |
| None. |
| Liquidity Position |
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No information provided by the issuer / available for Acuite to comment upon
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| Outlook |
| None |
| Particulars | Unit | FY 21 (Provisional) | FY 20 (Actual) |
| Operating Income | Rs. Cr. | 112.49 | 98.64 |
| PAT | Rs. Cr. | 1.12 | 0.89 |
| PAT Margin | (%) | 1.00 | 0.90 |
| Total Debt/Tangible Net Worth | Times | 2.52 | 1.47 |
| PBDIT/Interest | Times | 4.92 | 3.07 |
| Key Financials: |
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The rated entity has not shared the latest financial statements despite repeated requests.
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| Status of non-cooperation with previous CRA |
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Crisil, vide its press release dated October 20, 2022 had denoted the rating to Sri Venkatesh Granites Private Limited (SVGPL) as 'CRISIL BB+ /Stable /CRISIL A4+' (Upgraded)' from 'CRISIL B /Stable /CRISIL A4' (Issuer Not Co-Operating) as the management has subsequently started sharing the information required for carrying out a comprehensive review of the ratings.
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| Any other information |
| The entity has not shared the latest NDS (No Default Statement) despite repeated requests. |
| Applicable Criteria |
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• 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 |
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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
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