Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 1.10 - ACUITE A4 | Reaffirmed | Issuer not co-operating*
Bank Loan Ratings 6.65 ACUITE B- | Reaffirmed | Issuer not co-operating* -
Total Outstanding Quantum (Rs. Cr) 7.75 - -
Total Withdrawn Quantum (Rs. Cr) 0.00 - -
 
Rating Rationale
­Acuité has reaffirmed the long-term rating of ‘ACUITE B-’ (read as ACUITE B minus) and the short term rating of ‘ACUITE A4’ (read as ACUITE A four) on the Rs.7.75 crore bank facilities of S.M. Engineering Works (SMEW). The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.

About the Company
­SMEW, established in 2006 in Mumbai, is a partnership firm engaged in fabrication and manufacturing of boilers. The partners of SMEW are Mr. M. Sekar and Mr. V. Shanmugam. Mr. Sekar, (Managing Partner), has an experience of more than two decades in the similar line of business.
 
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 noncooperation by the issuer along with an 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 rating is based.
 
About the Rated Entity - 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 Acuité to comment upon.
 
Outlook
­Not Applicable.
 
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
• 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
https://www.acuite.in/view-rating-criteria-55.htm

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
16 Jul 2021 Working Capital Demand Loan Long Term 0.25 ACUITE B- ( Issuer not co-operating*)
Bank Guarantee Short Term 1.10 ACUITE A4 ( Issuer not co-operating*)
Term Loan Long Term 0.15 ACUITE B- ( Issuer not co-operating*)
Cash Credit Long Term 6.25 ACUITE B- ( Issuer not co-operating*)
20 Apr 2020 Term Loan Long Term 0.15 ACUITE B- (Issuer not co-operating*)
Working Capital Demand Loan Long Term 0.25 ACUITE B- (Issuer not co-operating*)
Bank Guarantee Short Term 1.10 ACUITE A4 (Issuer not co-operating*)
Cash Credit Long Term 6.25 ACUITE B- (Issuer not co-operating*)
07 Feb 2019 Term Loan Long Term 0.15 ACUITE B- (Issuer not co-operating*)
Working Capital Demand Loan Long Term 0.25 ACUITE B- (Issuer not co-operating*)
Bank Guarantee Short Term 1.10 ACUITE A4 (Issuer not co-operating*)
Cash Credit Long Term 6.25 ACUITE B- (Issuer not co-operating*)
11 Dec 2017 Cash Credit Long Term 6.25 ACUITE B- | Stable (Issuer not co-operating*)
Term Loan Long Term 0.15 ACUITE B- | Stable (Issuer not co-operating*)
Working Capital Demand Loan Long Term 0.25 ACUITE B- | Stable (Issuer not co-operating*)
Bank Guarantee Short Term 1.10 ACUITE A4 (Issuer not co-operating*)
12 Sep 2016 Cash Credit Long Term 6.25 ACUITE B- | Stable (Assigned)
Term Loan Long Term 0.15 ACUITE B- | Stable (Assigned)
Working Capital Demand Loan Long Term 0.25 ACUITE B- | Stable (Assigned)
Bank Guarantee Short Term 1.10 ACUITE A4 (Assigned)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Rating
State Bank of India Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 1.10 ACUITE A4 | Reaffirmed | Issuer not co-operating*
State Bank of India Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 6.25 ACUITE B- | Reaffirmed | Issuer not co-operating*
State Bank of India Not Applicable Term Loan Not available Not available Not available 0.15 ACUITE B- | Reaffirmed | Issuer not co-operating*
State Bank of India Not Applicable Working Capital Demand Loan (WCDL) Not available Not available Not available 0.25 ACUITE B- | Reaffirmed | Issuer not co-operating*

Contacts
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About Acuité Ratings & Research

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