RATING RATIONALE
19Oct2021

Shiva Global Agro Industries Ltd.

Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 54.29 Crs. of Shiva Global Agro Industries Ltd.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(14 Oct 2020)
Present
Fund Based 32.00 36.29 Long Term BWR BBB-/Stable
Assignment
BWR BBB - /Stable
Reaffirmation
Non Fund Based 18.00 18.00 Short Term BWR A3
Assignment
BWR A3
Reaffirmation
(6.00) (6.00)
(6.00) (6.00)
Grand Total 50.00 54.29 (Rupees Fifty Four Crores and Twenty Nine lakhs Only)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure


RATING ACTION / OUTLOOK

Brickwork Ratings(BWR) reaffirms the ratings for Bank Loan facilities of Rs.54.29 Crs of Shiva Global Agro Industries Ltd. (SGAIL or the Company)

KEY RATING DRIVERS


Credit Strengths:


Credit Risks:

ANALYTICAL APPROACH - Standalone

BWR has relied upon standalone audited financials of the Company upto FY21, unaudited results for Q1FY22 and projected financials upto FY23, publicly available information and clarifications/information provided by the management.

RATING SENSITIVITIES

Positive: The ability of the Company to sustain improvement in credit metrics and scale of operations would be positive for the ratings.

Negative: Decline in scale of operations and any further decrease in profit margins would be negative for the ratings.

LIQUIDITY INDICATORS - Adequate

The liquidity position of the Company is adequate as its current ratio as on March 31, 2021 is comfortable at 2.62x and its had a cash & bank balance of Rs.0.23 Crs. The average CC utilisation for last 6 months ended September 2021 is 81% and the Company is expected to generate cash accruals of Rs.7.53 Crs and Rs.8.78 Crs respectively in FY22 and FY23 as against principal debt repayment of Rs.3.07 Crs and Rs.1.28 Crs respectively.

ABOUT THE ENTITY

Shiva Global Agro Industries Ltd. (SGAIL) is a Nanded, Maharashtra based company incorporated in 1993 and engaged in manufacturing of fertilizers and trading of fertilizers as well as seeds. SGAIL was listed on BSE in 1995.

SGAIL is a flagship company of Maharashtra based Shiva Group consisting of its subsidiaries i.e. Shrinivasa Agro Foods Pvt. Ltd. (SAFPL - 51% subsidiary), Ghatprabha Fertilisers Pvt. Ltd. (GFPL- 61.53% subsidiary), Shiva Parvati Poultry Feeds Pvt. Ltd. (SPPFPL-51% subsidiary),

SGAIL manufactures Single Super Phosphate (SSP) & granulated NPK mix fertilizers, Beneficiated Rock Phosphate and Bio-mass Briquettes. 

In Nanded, SGAIL has two manufacturing plant, one for SSP and one for NPK fertilizers manufacturing with installed capacity of  1,20,000 MTPA and 72,000 MTPA respectively.

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 20-21
(Audited)
FY 19-20
(Audited)
Operating Revenue Rs.Crs. 175.14 92.85
EBITDA Rs.Crs. 7.54 6.70
PAT Rs.Crs. 4.03 3.13
Tangible Net Worth Rs.Crs. 58.88 54.85
Total Debt/Tangible Net Worth Times 0.33 0.31
Current Ratio Times 2.62 1.69

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating (2021) 2021 (History) 2020 2019 2018
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating Date Rating
Fund Based LT 36.29
BWR BBB-/Stable
(Reaffirmation)
14Oct2020
BWR BBB-Stable
(Assignment)
NA
NA
NA
NA
NA
NA
Non Fund Based ST 18.00
BWR A3
(Reaffirmation)
14Oct2020
BWR A3
(Assignment)
NA
NA
NA
NA
NA
NA
NFB SubLimit ST (6.00)
BWR A3
(Reaffirmation)
NA
NA
NA
NA
NA
NA
NA
NA
(6.00)
BWR A3
(Reaffirmation)
NA
NA
NA
NA
NA
NA
NA
NA
Grand Total 54.29 (Rupees Fifty Four Crores and Twenty Nine lakhs Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - Simple

BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.

Hyperlink/Reference to applicable Criteria
Analytical Contacts

Prashant Sahadev Mondkar

Ratings Analyst Board : +91 22 2831 1426, +91 22 2831 1439 prashant.sm@brickworkratings.com

Chintan Dilip Lakhani

Director- Ratings chintan.l@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Shiva Global Agro Industries Ltd.
ANNEXURE-I
Details of Bank Facilities rated by BWR
SL.No. Name of the Bank/Lender Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 Union Bank of India Cash CreditSanctioned 32.00 _ 32.00
2 Union Bank of India Foreign Letter of Credit (FLC)Sanctioned _ 18.00 18.00
Sub-Limit (Bank Guarantee) Sanctioned (6.00)
Sub-Limit (Inland LC) Sanctioned (6.00)
3 Union Bank of India Covid -19 Emergency Line CreditSanctioned 1.24 _ 1.24
4 Union Bank of India GECLSanctioned 3.05 _ 3.05
Total 36.29 18.00 54.29
TOTAL (Rupees Fifty Four Crores and Twenty Nine lakhs Only)
ANNEXURE-III
List of entities consolidated

Name of Entity% OwnershipExtent of consolidationRationale for consolidation
Shrinivasa Agro Foods Pvt. Ltd. 51 100% subsidiary
Ghatprabha Fertilisers Pvt. Ltd. 62.53 100% Subsidiary
Shiva Parvati Poultry Feeds Pvt. Ltd. 51 100% Subsidiary

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