Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 12.54 ACUITE B- | Downgraded | Issuer not co-operating* -
Total Outstanding 12.54 - -
 
Rating Rationale

­Acuité has downgraded the long-term rating to 'ACUITE B-' (read as ACUITE B minus) from ‘ACUITE B’ (read as ACUITE B) on the Rs. 12.54 crore bank facilities of Sunrise Distributors. The rating continues to be flagged as “Issuer Not-Cooperating” and is downgraded on account of information risk.


About the Company

­The Mumbai-based, Sunrise Distributors (SDS) was established in 2005 as a proprietorship firm by Mr. Sanjay K. Doshi. The firm’s administrative office is located in Kandivali (Mumbai). SDS is authorised distributor of Fastrack Watches (Titan) and other watch brands like Tommy Hilfiger, Police, FCUK, Kenneth Cole (for which Titan has received the license for sales). They also distribute Vodafone recharge vouchers, Jockey Products, Skinn (Titan), among others. SDS caters mainly to retail customers through an established network of dealers/shop owners/agents that cater to retail customers and also online sales. Major distributors are wholesalers, retailers and chain stores like Time stores, Khamdhenu Departmental store, Om watches, Alfa stores.

 
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:

­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 endeavoured 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 ratingis based.

 
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 17 (Actual) FY 16 (Actual)
Operating Income Rs. Cr. 39.02 44.64
PAT Rs. Cr. 0.45 0.55
PAT Margin (%) 1.16 1.23
Total Debt/Tangible Net Worth Times 6.58 5.60
PBDIT/Interest Times 1.25 1.27
Status of non-cooperation with previous CRA

­Not Applicable

 
Any other information

­None

 
Applicable Criteria
• Trading Entities: https://www.acuite.in/view-rating-criteria-61.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.

 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
22 Mar 2023 Cash Credit Long Term 10.00 ACUITE B (Reaffirmed & Issuer not co-operating*)
Secured Overdraft Long Term 2.54 ACUITE B (Reaffirmed & Issuer not co-operating*)
29 Dec 2021 Secured Overdraft Long Term 2.54 ACUITE B (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 10.00 ACUITE B (Reaffirmed & Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE B- | Downgraded | Issuer not co-operating* ( from ACUITE B )
Deutsche Bank Not avl. / Not appl. Secured Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.54 Simple ACUITE B- | Downgraded | Issuer not co-operating* ( from ACUITE B )
­

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