August 26, 2014 Mumbai
Shri Vishnu Overseas Private Limited
Advisory as on August 26, 2014
This rating advisory is provided in relation to the rating of Shri Vishnu Overseas Private Limited
The key rating sensitivity factors for the rating include:
Timely servicing of debt
CRISIL keeps all its outstanding ratings under continuous surveillance. Accordingly, it seeks regular updates from companies on business and financial performance. CRISIL is yet to receive adequate information from Shri Vishnu Overseas Private Limited to enable it to undertake a rating review. CRISIL is taking all possible efforts to get to cooperate with its rating process for enabling it to carry out the rating review. CRISIL views information availability risk as a key credit factor in its rating process and views non-sharing of information as a first signal of possible deterioration in credit quality, as outlined in its criteria ‘Information Availability Risk in Credit Ratings’. CRISIL will suspend the ratings shortly if the company continues non- cooperation with the rating process.
About the Group
SVOL was incorporated in 1995 by Mr. Banarasi Lal Mittal and his sons. Company is in the milling of rice as well as wheat. The processing unit of the company is located in Kaithal, Haryana.
Please note: This advisory should not be construed as a rating reaffirmation.
November 08, 2012 www.crisil.com1
November 08, 2012 Mumbai
Shri Vishnu Overseas Private Limited
‘CRISIL D’ assigned to bank facility(ies)
Total Bank Loan Facilities Rated Rs.703 Million
Long-Term Rating CRISIL D (Assigned)
Short-Term Rating CRISIL D (Assigned)
(Refer to Annexure 1 for details on facilities)
CRISIL has assigned its ‘CRISIL D/CRISIL D’ ratings to the bank loan facilities of Shri Vishnu Overseas Pvt Ltd (SVOL) (SVOL; part of the Shri Vishnu group). The ratings reflect instances of delay by the SVOL in servicing its debt; the delays have been caused by the SVOL’s weak liquidity.
Shri Vishnu Group also has a weak financial risk profile marked by high gearing, weak debt protection metrics, and working-capital-intensive operations. Shri Vishnu Group’s operating margins also face susceptibility to adverse government regulations and raw material price volatility.
These weaknesses are partially offset by the long standing experience of promoters along with their financial support to the group and healthy growth prospects for basmati rice industry.
For arriving at the ratings, CRISIL has combined the business and financial risk profiles of SVOL and Shri Vishnu Eatables (India) Limited (SVEL), here in referred to as Shri Vishnu group. This is primarily because both the entities are controlled by the same management and are engaged in the same businesses- processing of rice. The entities also derive considerable operational and business synergies from each other.
About the Group
SVOL was incorporated in 1995 by Mr. Banarasi Lal Mittal and his sons. Company is in the milling of rice as well as wheat. The processing unit of the company is located in Kaithal, Haryana.
SVEL was incorporated in 1996 by the same promoters. The company mills paddy and trades rice and related items. SVEL’s processing unit is in Kaithal (Haryana).
For 2011-12 (refers to financial year, April 1 to March 31), SVOL’s profit after tax (PAT) and net sales were estimated at Rs.28.61 million and Rs 2184.04 million, respectively; the company reported a PAT of Rs.15.82 million on net sales of Rs.1317.48 million for 2010-11.
CRISIL Complexity Levels are assigned to various types of financial instruments. The CRISIL Complexity Levels are available on www.crisil.com/complexity-levels. Investors are advised to refer to the CRISIL Complexity Levels for instruments that they propose to invest in.
Investors can also call the CRISIL Helpline at +91 22 3342 3047 / + 91 22 3342 3064 with queries on specific instruments.
November 08, 2012 www.crisil.com2
Annexure 1 - Details of various bank facilities
*includes sub limit of packing credit of Rs.300.0 millions
** includes sub limit of packing credit of Rs.70.0 millions
Note:
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Last updated: April 30, 2012
Disclaimer: A CRISIL rating reflects CRISIL's current opinion on the likelihood of timely payment of the obligations under the rated instrument and does not constitute an audit of the rated entity by CRISIL. CRISIL ratings are based on information provided by the issuer or obtained by CRISIL from sources it considers reliable. CRISIL does not guarantee the completeness or accuracy of the information on which the rating is based. A CRISIL rating is not a recommendation to buy, sell, or hold the rated instrument; it does not comment on the market price or suitability for a particular investor. All CRISIL ratings are under surveillance. Ratings are revised as and when circumstances so warrant. CRISIL is not responsible for any errors and especially states that it has no financial liability whatsoever to the subscribers / users / transmitters / distributors of this product. CRISIL Ratings’ rating criteria are generally available without charge to the public on the CRISIL public web site, www.crisil.com. For the latest rating information on any instrument of any company rated by CRISIL, please contact CRISIL RATING DESK at
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Current facilities Previous facilities
Facility Amount
(Mln) Rating Facility Amount
(Mln) Rating
Term Loan 153 CRISIL D -- 0 --
Cash Credit* 300 CRISIL D -- 0 --
Foreign Bill
Purchase** 250 CRISIL D -- 0 --
Total 703 -- Total 0 --
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