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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 3.50 | ACUITE D | Downgraded | Issuer not co-operating* | - |
| Bank Loan Ratings | 1.50 | - | ACUITE D | Downgraded | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 5.00 | - | - |
| Rating Rationale |
| Acuité has downgraded its long term rating to ‘ACUITE D' (read as ACUITE D)’ from ‘ACUITE B' (read as ACUITE B) and the short term rating to ‘ACUITE D' (read as ACUITE D)’ from ‘ACUITE A4' (read as ACUITE A four) on the Rs.5.00 crore bank facilities of Sudalagunta flour mills Limited. The rating continues to be flagged as “Issue Not Cooperating” and is on account of information risk . The downgrade is on the account of the suit filed against the company as mentioned in the defaulter list published by CIBIL. |
| About the Company |
| SFML, established in 2007 is a Tirupati-based company promoted by Mr. Jayaram Chowdary, Mr. Krishna Kumar and Mrs. Prameela, engaged in the milling of whole-wheat flour (aata), wheat flour (maida) and semolina (suji). SAML also undertakes milling on job work basis and the same contributes around 40 per cent to its total revenues. SAML, established in 2007 is a Tirupati-based company engaged in the milling of wholewheat flour (aata), wheat flour (maida)and semolina (suji). |
| 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 due date. This rating continues to be flagged as “Issuer notcooperating”, 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. |
| Key Financials |
| The rated entity has not shared the latest financial statements despite repeated requests |
| 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 |
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| Other Factors affecting Rating |
| Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups |
| Status of non-cooperation with previous CRA |
| None |
| Applicable Criteria |
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• 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 |
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