Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 4.64 ACUITE B+ | Reaffirmed | Issuer not co-operating* -
Bank Loan Ratings 3.00 - ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 7.64 - -
 
Rating Rationale
­Acuité has reaffirmed the long-term rating of ‘ACUITE B+’ (read as ACUITE Single B plus) and short term rating of 'ACUITE A4' (read as ACUITE A four) on the Rs.7.64 crore bank facilities of Surya Prakaas Foundry. The rating continues to be flagged as “Issuer Not Cooperating” and is based on the best available information.

About the Company
­Surya Prakaas Foundry (SPF), a proprietorship concern was established in 2003 by Mr. M. Kanagarajan. The Tamil Nadu-based firm is engaged in the manufacturing of castings and has an installed capacity of 2400 MT per annum. Mr Kanagarajan has more than two decades of experience in the business. For FY2014-15, SPF reported profit after tax (PAT) of Rs.0.50 crore on operating income of Rs.13.04 crore compared with PAT of Rs.0.28 crore on operating income of Rs.6.01 crore in the previous year.
 
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. 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 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.
 
Rating Sensitivity
­"No information provided by the issuer / available for Acuite to comment upon."
 
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 15 (Actual) FY 14 (Actual)
Operating Income Rs. Cr. 13.04 6.01
PAT Rs. Cr. 0.50 0.28
PAT Margin (%) 3.82 4.63
Total Debt/Tangible Net Worth Times 3.15 3.03
PBDIT/Interest Times 2.53 2.74
Status of non-cooperation with previous CRA
­None
 
Any other information
­Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups.
 
Applicable Criteria
• Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.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
05 Jul 2022 Letter of Credit Short Term 0.50 ACUITE A4 ( Issuer not co-operating*)
Cash Credit Long Term 4.25 ACUITE B+ ( Issuer not co-operating*)
Term Loan Long Term 0.39 ACUITE B+ ( Issuer not co-operating*)
Bank Guarantee Short Term 2.50 ACUITE A4 ( Issuer not co-operating*)
07 Apr 2021 Cash Credit Long Term 4.25 ACUITE B+ (Issuer not co-operating*)
Bank Guarantee Short Term 2.50 ACUITE A4 (Issuer not co-operating*)
Letter of Credit Short Term 0.50 ACUITE A4 (Issuer not co-operating*)
Term Loan Long Term 0.39 ACUITE B+ (Issuer not co-operating*)
10 Jan 2020 Cash Credit Long Term 4.25 ACUITE B+ (Issuer not co-operating*)
Bank Guarantee Short Term 2.50 ACUITE A4 (Issuer not co-operating*)
Letter of Credit Short Term 0.50 ACUITE A4 (Issuer not co-operating*)
Term Loan Long Term 0.39 ACUITE B+ (Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Tamilnad Mercantile Bank Limited Not Applicable Bank Guarantee/Letter of Guarantee Not Applicable Not Applicable Not Applicable 2.50 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
Tamilnad Mercantile Bank Limited Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 4.25 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*
Tamilnad Mercantile Bank Limited Not Applicable Letter of Credit Not Applicable Not Applicable Not Applicable 0.50 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
Tamilnad Mercantile Bank Limited Not Applicable Term Loan Not available Not available Not available 0.39 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*

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