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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 22.00 | ACUITE BB- | Downgraded & Withdrawn | Issuer not co-operating* | - |
| Bank Loan Ratings | 3.00 | Not Applicable | Withdrawn | - |
| Total Outstanding Quantum (Rs. Cr) | 0.00 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 25.00 | - | - |
| Rating Rationale |
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Acuité has downgraded and withdrawn the long term rating from 'ACUITE BB' (read as ACUITE Double B) to 'ACUITE BB-' (read as ACUITE Double B minus) on the Rs. 22.00 crore bank facilities and also withdrawn the rating on the proposed faclility of Rs 3.00 Cr of Sumran Agro Private Limited(SAPL). The team has received the withdrawal request from the client because the client does not want to continue the further rating. A No Objection Certificate (NOC) for the same has been received from HDFC Bank. The rating withdrawal is in accordance with Acuité’s policy on withdrawal of rating. The rating is now flagged as “Issuer Not Cooperating”, and downgradded on account of information risk.
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| About the Company |
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Incorporated in 2000, Sumran Agro Private Limited, is based in Kolkata. The company is engaged in the wholesale and retail trading of tea. The company is promoted by Mr. Pradeep Kumar Agarwal, Ms. Dipti Agarwal and Ms. Shalini Agarwal. SAPL is engaged in blending and adding flavour to the tea as per the requirements of the customers. The company procures tea through auction and private purchases and majorly exports to Iran and Russia.
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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
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| 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 ratings 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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| All 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 22 (Actual) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 95.28 | 66.58 |
| PAT | Rs. Cr. | 1.01 | 0.68 |
| PAT Margin | (%) | 1.06 | 1.02 |
| Total Debt/Tangible Net Worth | Times | 0.33 | 0.37 |
| PBDIT/Interest | Times | 2.13 | 3.72 |
| Status of non-cooperation with previous CRA |
| None |
| Any other information |
| Acuite is yet to recieve the latest No Default Statement from the rated entity despite repeated requests and followups. |
| 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 • Trading Entitie: https://www.acuite.in/view-rating-criteria-61.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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