Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 7.50 ACUITE B | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 12.50 - ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding 20.00 - -
Total Withdrawn 0.00 - -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 B’ (read as ACUITE B) from 'ACUITE B+' (read as ACUITE B plus) and reaffirmed the short-term rating of ‘ACUITE A4’ (read as ACUITE A four) on the Rs. 20.00 crore bank facilities of S M Electric Works 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

­S M Electric Works is established in 1976 and it is Maharashtra-based proprietary concern promoted by Mr. S M Saraf. The firm undertakes electrical contracts for maintenance and repair of power lines, installation of substations on a turnkey basis and overhauling of transformers. The nature of business is tender based.

 
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 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 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 (Provisional) FY 16 (Actual)
Operating Income Rs. Cr. 28.24 25.14
PAT Rs. Cr. 0.99 0.88
PAT Margin (%) 3.50 3.52
Total Debt/Tangible Net Worth Times 1.63 2.02
PBDIT/Interest Times 1.86 1.79
Status of non-cooperation with previous CRA

­Not Applicable

 
Any other information

­None

 
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

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
20 Sep 2023 Proposed Bank Guarantee Short Term 10.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Proposed Letter of Credit Short Term 2.50 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Proposed Cash Credit Long Term 7.50 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
22 Jun 2022 Proposed Bank Guarantee Short Term 10.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Proposed Letter of Credit Short Term 2.50 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Proposed Cash Credit Long Term 7.50 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
24 Mar 2021 Proposed Bank Guarantee Short Term 10.00 ACUITE A4 (Downgraded & Issuer not co-operating* from ACUITE A4+)
Proposed Letter of Credit Short Term 2.50 ACUITE A4 (Downgraded & Issuer not co-operating* from ACUITE A4+)
Proposed Cash Credit Long Term 7.50 ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB-)
* 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
Not Applicable Not avl. / Not appl. Proposed Bank Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
Not Applicable Not avl. / Not appl. Proposed Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 7.50 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE B+ )
Not Applicable Not avl. / Not appl. Proposed Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.50 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
* The issuer did not co-operate; based on best available information.

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