Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 6.65 ACUITE D | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 1.10 - ACUITE D | Downgraded | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 7.75 - -
 
Rating Rationale
­Acuité has downgraded its long term rating to ‘ACUITE D' (read as ACUITE D)’ from ‘ACUITE B-' (read as ACUITE B minus) and the short term rating to ‘ACUITE D' (read as ACUITE D)’ from‘ACUITE A4' (read as ACUITE A four) on the Rs.7.75 crore bank facilities of S M Engineering Works. The rating continues to be flagged as “Issue Not Cooperating” and is based on the best  available information and is on account of information risk. The downgrade is on the account of the suit filed against the company as mentioned in the defaulter list published by CIBIL.

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 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 continues to be flagged as “Issuer notcooperating”, 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.
 
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 Acuite to comment upon­
 
Outlook: ­Not Applicable
­
 
Other Factors affecting Rating
­Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups
 
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
­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
14 Oct 2022 Cash Credit Long Term 6.25 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*)
Working Capital Demand Loan Long Term 0.25 ACUITE B- ( Issuer not co-operating*)
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*)
­

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

Contacts
Analytical Rating Desk
About Acuité Ratings & Research

Acuité Ratings & Research Limitedwww.acuite.in