Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 10.75 ACUITE C | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 1.25 - ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding 12.00 - -
 
Rating Rationale

­­Acuité has downgraded the long-term rating to ‘ACUITE C’ (read as ACUITE C) from ‘ACUITE B’ (read as ACUITE B ) and reaffirmed the short term rating to 'ACUITE A4' (read as ACUITE A four)  on the Rs.12.00 Cr. bank facilities of Vishnu Priya Industries Private Limited (VPIPL).
The rating continues to be flagged as “Issuer Not Cooperating” and is based on the best available information.
The downgrade is based on recent delays being reflected in the CRIF highmark report and other publicly available information.


About the Company

Vishnu Priya Industries Private Limited was established in 2015 as a Private Limited Company. The present directors of the company are Mr. Varadegowda Varadaraju, Mr. Vijaya Varadaraju, Mr. Varadaraju Sujay. It is involved in manufacturing of corrugated boxes. The company is based in Karnataka.

 
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 noncooperation 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. 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 23 (Actual) FY 22 (Actual)
Operating Income Rs. Cr. 12.89 18.18
PAT Rs. Cr. 0.07 0.05
PAT Margin (%) 0.55 0.29
Total Debt/Tangible Net Worth Times 1.77 2.34
PBDIT/Interest Times 1.60 1.66
Status of non-cooperation with previous CRA

­Not Applicable

 
Any other information
­None
 
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
06 Mar 2023 Bank Guarantee/Letter of Guarantee Short Term 0.25 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 0.75 ACUITE B (Reaffirmed & Issuer not co-operating*)
Letter of Credit Short Term 1.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Proposed Long Term Bank Facility Long Term 1.25 ACUITE B (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 0.60 ACUITE B (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 8.15 ACUITE B (Reaffirmed & Issuer not co-operating*)
06 Dec 2021 Bank Guarantee/Letter of Guarantee Short Term 0.25 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 0.75 ACUITE B (Reaffirmed & Issuer not co-operating*)
Letter of Credit Short Term 1.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Proposed Long Term Bank Facility Long Term 1.25 ACUITE B (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 8.15 ACUITE B (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 0.60 ACUITE B (Reaffirmed & 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 avl. / Not appl. Bank Guarantee/Letter of Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.25 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
Canara Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.75 Simple ACUITE C | Downgraded | Issuer not co-operating* ( from ACUITE B )
Canara Bank Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.25 Simple ACUITE C | Downgraded | Issuer not co-operating* ( from ACUITE B )
Canara Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.60 Simple ACUITE C | Downgraded | Issuer not co-operating* ( from ACUITE B )
Canara Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 8.15 Simple ACUITE C | Downgraded | Issuer not co-operating* ( from ACUITE B )

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