Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 28.00 ACUITE BB | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 2.00 - ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Total Outstanding 30.00 - -
Total Withdrawn 0.00 - -
* The issuer did not co-operate; based on best available information.
 
Rating Rationale

­­Acuité has downgraded the long-term rating to ‘ACUITE BB’ (read as ACUITE double B) from 'ACUITE BB+' (read as ACUITE double B plus) and reaffirmed the short term rating of ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs.30.00 crore bank facilities of Sri Venkatesh Granites Private Limited (SVGPL) 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

­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.

 
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
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

 

Particulars Unit FY 22 (Actual) FY 21 (Actual)
Operating Income Rs. Cr. 91.75 113.85
PAT Rs. Cr. 0.84 1.08
PAT Margin (%) 0.92 0.95
Total Debt/Tangible Net Worth Times 2.35 2.51
PBDIT/Interest Times 4.42 4.92
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

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
29 Jan 2024 Bills Discounting Short Term 1.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
Bank Guarantee/Letter of Guarantee Short Term 1.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 0.96 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
PC/PCFC Long Term 11.00 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 1.00 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 3.51 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Working Capital Term Loan Long Term 3.13 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Working Capital Term Loan Long Term 0.60 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Proposed Long Term Bank Facility Long Term 7.80 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
10 Nov 2022 Bills Discounting Short Term 1.00 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3)
Bank Guarantee/Letter of Guarantee Short Term 1.00 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3)
Term Loan Long Term 0.96 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB-)
PC/PCFC Long Term 11.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Negative)
Cash Credit Long Term 1.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Negative)
Term Loan Long Term 3.51 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Negative)
Working Capital Term Loan Long Term 3.13 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Negative)
Working Capital Term Loan Long Term 0.60 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Negative)
Proposed Long Term Bank Facility Long Term 7.80 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Negative)
* The issuer did not co-operate; based on best available information.
­

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. 1.00 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Union Bank of India Not avl. / Not appl. Bills Discounting Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.00 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Union Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.00 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
Union Bank of India Not avl. / Not appl. PC/PCFC Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 11.00 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 7.80 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
Union Bank of India Not avl. / Not appl. Term Loan 01 Oct 2017 10.40 30 Jun 2022 0.96 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
Union Bank of India Not avl. / Not appl. Term Loan 01 Jul 2019 10.45 31 May 2024 3.51 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
Union Bank of India Not avl. / Not appl. Working Capital Term Loan 01 Aug 2020 7.50 31 Mar 2025 3.13 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
Union Bank of India Not avl. / Not appl. Working Capital Term Loan 01 Aug 2020 8.00 30 Apr 2022 0.60 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
* The issuer did not co-operate; based on best available information.

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