PR

Press Release
LANSON MOTORS PRIVATE LIMITED
April 19, 2022
Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	170.00	ACUITE BB- \| Downgraded \| Issuer not co-operating*	-
Total Outstanding Quantum (Rs. Cr)	170.00	-	-
Total Withdrawn Quantum (Rs. Cr)	0.00	-	-

Rating Rationale

Acuité has downgraded the long-term rating to ‘ACUITE BB-’ (read as ACUITE double B minus) from ‘ACUITE BB’ (read as ACUITE double B) on the Rs.170 Cr bank facilities of Lanson Motors Private Limited (LMPL). The rating is flagged as “Issuer Not-Cooperating” and is downgraded on account of information risk.

About the Company

Chennai based, LMPL was incorporated in 1998 by Mr. M Lankalingam and his wife Mrs. Reeta Lankalingam. Currently, the company is managed by Mr. M Lankalingam and son Mr. Sivanka Lankalingam. The company is an authorized dealer for Toyota Kirloskar Motor Private Limited (TKMPL) in North Tamil Nadu and Puducherry. The company operates on 3S model (sales, service and spares) and also runs Toyota driving school.

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 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 Sensitivities

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

None

Key Financials:

The rated entity has not shared the latest financial statements despite repeated requests.

Status of non-cooperation with previous CRA

CRISIL vide its press release dated 15 March 2021, has mentioned the rating of LMPL to ‘CRISIL B+/Stable/A4’ (Issuer Not Cooperating; Reaffirmed) as on 15 March 2021.

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

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Trading Entitie: https://www.acuite.in/view-rating-criteria-61.htm

Rating History

Date	Name of Istruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
05 Feb 2021	Inventory Funding	Long Term	11.00	ACUITE BB \| Stable (Reaffirmed)
	Term Loan	Long Term	1.28	ACUITE BB \| Stable (Reaffirmed)
	Term Loan	Long Term	0.73	ACUITE BB \| Stable (Reaffirmed)
	Term Loan	Long Term	16.21	ACUITE BB \| Stable (Reaffirmed)
	Term Loan	Long Term	11.76	ACUITE BB \| Stable (Reaffirmed)
	Inventory Funding	Long Term	3.00	ACUITE BB \| Stable (Reaffirmed)
	Term Loan	Long Term	6.87	ACUITE BB \| Stable (Reaffirmed)
	Inventory Funding	Long Term	25.00	ACUITE BB \| Stable (Reaffirmed)
	Term Loan	Long Term	0.66	ACUITE BB \| Stable (Reaffirmed)
	Proposed Bank Facility	Long Term	21.66	ACUITE BB \| Stable (Reaffirmed)
	Cash Credit	Long Term	53.50	ACUITE BB \| Stable (Reaffirmed)
	Inventory Funding	Long Term	5.00	ACUITE BB \| Stable (Reaffirmed)
	Term Loan	Long Term	1.33	ACUITE BB \| Stable (Reaffirmed)
	Inventory Funding	Long Term	3.00	ACUITE BB \| Stable (Reaffirmed)
	Term Loan	Long Term	8.05	ACUITE BB \| Stable (Reaffirmed)
	Term Loan	Long Term	0.36	ACUITE BB \| Stable (Reaffirmed)
	Term Loan	Long Term	0.59	ACUITE BB \| Stable (Reaffirmed)
07 Nov 2019	Proposed Bank Facility	Long Term	27.32	ACUITE BB \| Stable (Reaffirmed)
	Inventory Funding	Long Term	53.50	ACUITE BB \| Stable (Reaffirmed)
	Inventory Funding	Long Term	3.00	ACUITE BB \| Stable (Reaffirmed)
	Inventory Funding	Long Term	25.00	ACUITE BB \| Stable (Reaffirmed)
	Term Loan	Long Term	1.48	ACUITE BB \| Stable (Reaffirmed)
	Term Loan	Long Term	0.36	ACUITE BB \| Stable (Reaffirmed)
	Inventory Funding	Long Term	5.00	ACUITE BB \| Stable (Reaffirmed)
	Term Loan	Long Term	12.14	ACUITE BB \| Stable (Reaffirmed)
	Term Loan	Long Term	1.74	ACUITE BB \| Stable (Reaffirmed)
	Inventory Funding	Long Term	4.00	ACUITE BB \| Stable (Reaffirmed)
	Term Loan	Long Term	16.79	ACUITE BB \| Stable (Reaffirmed)
	Inventory Funding	Long Term	11.00	ACUITE BB \| Stable (Reaffirmed)
	Term Loan	Long Term	8.67	ACUITE BB \| Stable (Reaffirmed)
24 Aug 2018	Term Loan	Long Term	2.10	ACUITE BB \| Stable (Reaffirmed)
	Term Loan	Long Term	2.02	ACUITE BB \| Stable (Reaffirmed)
	Inventory Funding	Short Term	23.65	ACUITE A4+ (Reaffirmed)
	Inventory Funding	Short Term	10.00	ACUITE A4+ (Reaffirmed)
	Inventory Funding	Short Term	53.50	ACUITE A4+ (Reaffirmed)
	Term Loan	Long Term	2.60	ACUITE BB \| Stable (Reaffirmed)
	Term Loan	Long Term	12.48	ACUITE BB \| Stable (Reaffirmed)
	Inventory Funding	Short Term	5.00	ACUITE A4+ (Reaffirmed)
	Inventory Funding	Short Term	11.00	ACUITE A4+ (Reaffirmed)
	Inventory Funding	Short Term	5.00	ACUITE A4+ (Reaffirmed)
	Term Loan	Long Term	18.15	ACUITE BB \| Stable (Reaffirmed)
	Inventory Funding	Short Term	24.50	ACUITE A4+ (Reaffirmed)
31 May 2017	Trade Advance	Short Term	5.00	ACUITE A4+ (Assigned)
	Inventory Funding	Short Term	39.00	ACUITE A4+ (Assigned)
	Inventory Funding	Short Term	5.00	ACUITE A4+ (Assigned)
	Trade Advance	Short Term	1.00	ACUITE A4+ (Assigned)
	Inventory Funding	Short Term	17.90	ACUITE A4+ (Assigned)
	Inventory Funding	Short Term	11.00	ACUITE A4+ (Assigned)
	Inventory Funding	Short Term	25.00	ACUITE A4+ (Assigned)
	Term Loan	Long Term	44.84	ACUITE BB \| Stable (Assigned)
	Proposed Bank Facility	Short Term	1.26	ACUITE A4+ (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Rating
State Bank of India	Not Applicable	Cash Credit	Not Applicable	Not Applicable	Not Applicable	53.50	ACUITE BB- \| Downgraded \| Issuer not co-operating* ( from ACUITE BB )
Axis Bank	Not Applicable	Inventory Funding	Not Applicable	Not Applicable	Not Applicable	5.00	ACUITE BB- \| Downgraded \| Issuer not co-operating* ( from ACUITE BB )
HDFC Bank Ltd	Not Applicable	Inventory Funding	Not Applicable	Not Applicable	Not Applicable	3.00	ACUITE BB- \| Downgraded \| Issuer not co-operating* ( from ACUITE BB )
Sundaram Finance Ltd.	Not Applicable	Inventory Funding	Not Applicable	Not Applicable	Not Applicable	3.00	ACUITE BB- \| Downgraded \| Issuer not co-operating* ( from ACUITE BB )
Toyota Financial Services India Ltd.	Not Applicable	Inventory Funding	Not Applicable	Not Applicable	Not Applicable	25.00	ACUITE BB- \| Downgraded \| Issuer not co-operating* ( from ACUITE BB )
LEXUS-Toyota Financial Services	Not Applicable	Inventory Funding	Not Applicable	Not Applicable	Not Applicable	11.00	ACUITE BB- \| Downgraded \| Issuer not co-operating* ( from ACUITE BB )
Not Applicable	Not Applicable	Proposed Long Term Bank Facility	Not Applicable	Not Applicable	Not Applicable	21.66	ACUITE BB- \| Downgraded \| Issuer not co-operating* ( from ACUITE BB )
Yes Bank Ltd	Not Applicable	Term Loan	Not available	Not available	Not available	6.87	ACUITE BB- \| Downgraded \| Issuer not co-operating* ( from ACUITE BB )
Axis Bank	Not Applicable	Term Loan	Not available	Not available	Not available	8.05	ACUITE BB- \| Downgraded \| Issuer not co-operating* ( from ACUITE BB )
Toyota Financial Services India Ltd.	Not Applicable	Term Loan	Not available	Not available	Not available	1.33	ACUITE BB- \| Downgraded \| Issuer not co-operating* ( from ACUITE BB )
Toyota Financial Services India Ltd.	Not Applicable	Term Loan	Not available	Not available	Not available	0.66	ACUITE BB- \| Downgraded \| Issuer not co-operating* ( from ACUITE BB )
Toyota Financial Services India Ltd.	Not Applicable	Term Loan	Not available	Not available	Not available	0.59	ACUITE BB- \| Downgraded \| Issuer not co-operating* ( from ACUITE BB )
Kotak Mahindra Prime Limited	Not Applicable	Term Loan	Not available	Not available	Not available	11.76	ACUITE BB- \| Downgraded \| Issuer not co-operating* ( from ACUITE BB )
Kotak Mahindra Prime Limited	Not Applicable	Term Loan	Not available	Not available	Not available	16.21	ACUITE BB- \| Downgraded \| Issuer not co-operating* ( from ACUITE BB )
ICICI Bank Ltd	Not Applicable	Term Loan	Not available	Not available	Not available	0.73	ACUITE BB- \| Downgraded \| Issuer not co-operating* ( from ACUITE BB )
ICICI Bank Ltd	Not Applicable	Term Loan	Not available	Not available	Not available	1.28	ACUITE BB- \| Downgraded \| Issuer not co-operating* ( from ACUITE BB )
Axis Bank	Not Applicable	Term Loan	Not available	Not available	Not available	0.36	ACUITE BB- \| Downgraded \| Issuer not co-operating* ( from ACUITE BB )

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité.