Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 7.50 ACUITE B+ | Reaffirmed | Issuer not co-operating* -
Bank Loan Ratings 0.50 - ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 8.00 - -
 
Rating Rationale

­Acuité has reaffirmed the long-term rating of ‘ACUITE B+’ (read as ACUITE B plus) and reaffirmed the short term rating of ‘ACUITE A4’ (read as ACUITE A four) on the Rs. 8.00 crore bank facilities of S R Seth and Sons. The rating continues to be flagged as “Issuer Not-Cooperating” and is based on best available information.


About the Company

­M/s S.R. Seth & Sons was established in 1949, as a partnership firm. Mr. Sunit Seth and his wife Mrs. Mukta Seth are the partners of the firm with a profit sharing of 50% each. The firm is engaged in trading of Electric Pump Motor Alternators and DG sets. The firm has 3 offices located in Delhi. The firm is exclusive authorized Dealer of Crompton Greaves limited since inception. The firm’s business caters all home, agro and Industrial segments.

 
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."

 
Material Covenants

­Not Applicable.

 
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 17 (Actual) FY 16 (Actual)
Operating Income Rs. Cr. 47.43 29.08
PAT Rs. Cr. 0.15 0.10
PAT Margin (%) 0.31 0.35
Total Debt/Tangible Net Worth Times 1.11 0.82
PBDIT/Interest Times 1.51 1.38
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
• 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
28 Jan 2022 Bank Guarantee Short Term 0.50 ACUITE A4 ( Issuer not co-operating*)
Secured Overdraft Long Term 7.50 ACUITE B+ ( Issuer not co-operating*)
29 Oct 2020 Bank Guarantee Short Term 0.50 ACUITE A4 (Issuer not co-operating*)
Secured Overdraft Long Term 7.50 ACUITE B+ (Downgraded and Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Canara Bank Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 0.50 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
Canara Bank Not Applicable Secured Overdraft Not Applicable Not Applicable Not Applicable 7.50 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*

Contacts
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About Acuité Ratings & Research

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