Press Release November 26, 2024 TOP GEAR TRANSMISSION Rating Downgraded, Reaffirmed, Withdrawn & Issuer Not Cooperating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	13.25	ACUITE BB- | Downgraded & Withdrawn | Issuer not co-operating*	-
Bank Loan Ratings	2.25	-	ACUITE A4+ | Reaffirmed & Withdrawn | Issuer not co-operating*
Total Outstanding	0.00	-	-
Total Withdrawn	15.50	-	-
* The issuer did not co-operate; based on best available information.

Rating Rationale

­Acuité has downgraded and withdrawn the long-term rating to 'ACUITE BB-' (read as ACUITE Double B minus) from 'ACUITE BB' (read as ACUITE Double B) and reaffirmed and withdrawn the short-term rating of ‘ACUITE A4+’ (read as ACUITE A Four Plus) on Rs.15.50 crore bank facilities of Top Gear Transmission. The rating is now  flagged as “Issuer Not Cooperating” and is based on the best available information. The rating is downgraded on account of information risk. The rating has been withdrawn as per Acuite's policy of withdrawal of ratings as applicable to the respective instrument/facility. The rating has been withdrawn on account of the request received from the company and the NOC(No Objection Certificate) received from the banker.

About the Company

­Top Gear Transmission based of Satara, Maharashtra is a proprietorship firm engaged in designing and manufacturing of planetary gear boxes and custom-built gear boxes, used in industries such as capital goods, sugar, construction equipment, and steel. It was established in 2002 by Mr. Shrikant Pawar. Its manufacturing facility and registered office is located at Satara MIDC in Maharashtra.

About the Group

Top Gear (TG) group is engaged in designing and manufacturing of planetary gear boxes and custom built gear boxes, which finds application in industries such as capital goods, sugar, construction equipment, and steel. The group comprises of a firm named Top Gear Transmission (TGT) and company named Top Gear Transmission Private Limited (TGPL) both based in Satara, Maharashtra. TGPL undertakes job work for TGT. The group is promoted by Mr. Shashikant Pawar, Mr. Shrikant Pawar and other directors.

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 non co-operation 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 endeavoured 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 rating is based.

Rating Sensitivities

­"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

Key Financials

Particulars	Unit	FY 23 (Provisional)	FY 22 (Actual)
Operating Income	Rs. Cr.	131.37	76.22
PAT	Rs. Cr.	4.98	2.73
PAT Margin	(%)	3.79	3.58
Total Debt/Tangible Net Worth	Times	2.31	2.14
PBDIT/Interest	Times	2.49	2.33

Status of non-cooperation with previous CRA

­Not Applicable

Any other information

­None

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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.

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 20 Nov 2023 Letter of Credit Short Term 1.75 ACUITE A4+ (Reaffirmed) Bank Guarantee (BLR) Short Term 0.50 ACUITE A4+ (Reaffirmed) Working Capital Term Loan Long Term 1.96 ACUITE BB | Stable (Reaffirmed) Term Loan Long Term 1.39 ACUITE BB | Stable (Reaffirmed) Cash Credit Long Term 9.00 ACUITE BB | Stable (Reaffirmed) Working Capital Term Loan Long Term 0.90 ACUITE BB | Stable (Reaffirmed) 22 Aug 2022 Bank Guarantee (BLR) Short Term 0.50 ACUITE A4+ (Reaffirmed) Letter of Credit Short Term 1.75 ACUITE A4+ (Reaffirmed) Cash Credit Long Term 9.00 ACUITE BB | Stable (Reaffirmed) Working Capital Term Loan Long Term 0.90 ACUITE BB | Stable (Reaffirmed) Working Capital Term Loan Long Term 1.96 ACUITE BB | Stable (Reaffirmed) Term Loan Long Term 1.39 ACUITE BB | Stable (Reaffirmed) 26 May 2021 Letter of Credit Short Term 1.75 ACUITE A4+ (Upgraded from ACUITE A4) Bank Guarantee (BLR) Short Term 0.50 ACUITE A4+ (Upgraded from ACUITE A4) Working Capital Term Loan Long Term 1.96 ACUITE BB | Stable (Assigned) Working Capital Term Loan Long Term 0.90 ACUITE BB | Stable (Assigned) Term Loan Long Term 0.84 ACUITE BB | Stable (Upgraded from ACUITE BB- | Stable) Proposed Long Term Bank Facility Long Term 0.55 ACUITE BB | Stable (Upgraded from ACUITE BB- | Stable) Cash Credit Long Term 9.00 ACUITE BB | Stable (Upgraded from ACUITE BB- | Stable)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Bank of Maharashtra Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.50 Simple ACUITE A4+ | Reaffirmed & Withdrawn | Issuer not co-operating* Bank of Maharashtra Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 9.00 Simple ACUITE BB- | Downgraded & Withdrawn | Issuer not co-operating* ( from ACUITE BB ) Bank of Maharashtra Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.75 Simple ACUITE A4+ | Reaffirmed & Withdrawn | Issuer not co-operating* Bank of Maharashtra Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.39 Simple ACUITE BB- | Downgraded & Withdrawn | Issuer not co-operating* ( from ACUITE BB ) Bank of Maharashtra Not avl. / Not appl. Working Capital Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.96 Simple ACUITE BB- | Downgraded & Withdrawn | Issuer not co-operating* ( from ACUITE BB ) Bank of Maharashtra Not avl. / Not appl. Working Capital Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.90 Simple ACUITE BB- | Downgraded & Withdrawn | Issuer not co-operating* ( from ACUITE BB )

* The issuer did not co-operate; based on best available information.

*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

Sr.No. Company Name 1  Top Gear Transmission Private Limited 2 Top Gear Transmission ­

Contacts

Mohit Jain Senior Vice President - Rating Operations Patel Sneh Associate Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

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. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating. Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.