Press Release April 07, 2025 SPEEDINGO INDIA PRIVATE LIMITED Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	48.50	ACUITE BB+ | Stable | Assigned	-
Bank Loan Ratings	8.50	-	ACUITE A4+ | Assigned
Total Outstanding	57.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuite has assigned long term rating of 'ACUITE BB+' (read as ACUITE double B plus) on the Rs. 48.50 Cr. bank facilities and short-term rating of 'ACUITE A4+' (read as ACUITE A four plus) Rs. 8.50 Cr. bank facilities of Speedingo India Private Limited. The outlook is 'Stable'. Rationale for rating The rating takes into cognizance the experienced promoters and relationship with KIA India Private Limited, efficient working capital cycle, adequate liquidity; However, these strengths are partly offset by declining revenues albeit increase in operating profitability and average financial risk profile.

About the Company

­Delhi based, Speedingo India Private Limited was incorporated in 1995. The company is an auto dealer for KIA India Pvt Ltd cars and related parts. They serve as authorized dealer of KIA Motors. The Company has one showroom each in Patpargunj, Gokalpuri and Dilshad Garden, all in East Delhi.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuité has considered the standalone financial and business risk profile of Speedingo India Private Limited

Key Rating Drivers

Strengths

Benefits derived from experienced promoters ­The operations of the company are managed by Mr. Atul Jain, Mr. Vaibhav Jain, Mr. Atishay Jain and Mrs Shiksha Jain. Mr. Atul Jain and Mrs. Shiksha Jain are involved in the business from 52 years in trading and manufacturing of parts of earthmoving equipment. The other directors Mr Vaibhav Jain and Mr Atishay Jain are in the business since 14 years. Acuite believes that the experience of the promoters and their contracts with KIA Motors will benefit the company going forward. Efficient Working Capital Cycle The operations of the company have an efficient working capital requirement as reflected from Gross Current Assets of 83 days as on March 31, 2024 as compared to 46 days as on March 31, 2023. The inventory days stood at 59 days as on March 31, 2024 as compared to 27 days as on March 31,2023. The debtor days stand to 5 days as on March 31, 2024 as compared to 3 days as on March 31, 2023 due to retail nature of business. The creditor days stand at 2 days as on March 31, 2024 as compared to 1 day as on March 31, 2023.  Acuite believes that working capital requirements are expected to remain efficient in the near to medium term due to nature of operations.

Weaknesses

­­Declining Revenues albeit increase in operating profitability The revenues have slightly declined to Rs. 264.71 Cr. as on March 31, 2024 as compared to Rs. 269.46 Cr. as on March 31, 2023 on account of decrease in the number of cars sold during the year. The operating profitability has increased to 2.27 percent as on March 31, 2024 as compared to 1.90 percent  March 31, 2023 due to a decrease in fixed establishment costs. The company is undergoing capex plans which include, new workshop to be opened at Patpargunj. The construction of the same is expected to be completed in October 25 at a cost of Rs. 2-2.5 Cr. to be funded by internal accruals and unsecured loans to be brought in if required. Acuite believes that the scale of operations of the company is expected to remain at similar levels over the medium term.   Average Financial risk profile The financial risk profile of the company is average marked by low net worth, high gearing and declining debt protection metrics. The tangible net worth stood at Rs. 13.02 Cr. as on March 31, 2024 as compared to Rs. 10.85 Cr. as on March 31,2023 due to accretion of profits to reserves. Gearing stood at 2.99 times as on March 31, 2024 compared to 1.65 times in FY2023 due to increase in short term borrowings due to higher inventory for newer car models maintained. The TOL/TNW stood at 3.91 times as on March 31, 2024 as compared to 2.40 times as on March 31, 2023. The company has no long-term debt and has also no plans to further avail new term loans. The interest coverage ratio stood at 2.01 times as on March 31, 2024 compared to 4.09 times as on March 31, 2023. The debt service coverage ratio declined to 1.81 times as on March 31, 2024 as compared to 3.53 times as on March 31, 2023. . The debt protection metrices declined due to increased reliance on working capital borrowings. Acuite believes that the company’s financial risk profile will remain average backed by small, cash accruals,  average capital structure and debt protection metrices due to low profitability and reliance on bank borrowings over the medium term.

Rating Sensitivities

­Movement in revenues and operating profitability Working Capital Cycle Movement in debt protection metrices

Liquidity Position

Adequate

­The liquidity is adequate marked by steady net cash accruals of Rs. 2.82 Cr. as on March 31, 2024 against nil debt repayments. The cash and bank balances stood at Rs. 4.02 Cr. as on March 31,2024 as compared to Rs. 7.42 Cr. as on March 31, 2023. The current ratio stood low at 1.18 times as on March 31,2024 as compared to 1.30 times as on March 31, 2023. The average bank limit utilization is 79 percent for seven months ended, January 25. Acuité believes that going forward the liquidity position of the company will remain adequate in the near to medium term with small, but steady accruals and absence of any debt funded capex plans.

Outlook: Stable

­

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 24 (Actual)	FY 23 (Actual)
Operating Income	Rs. Cr.	264.71	269.46
PAT	Rs. Cr.	2.18	2.51
PAT Margin	(%)	0.82	0.93
Total Debt/Tangible Net Worth	Times	2.99	1.65
PBDIT/Interest	Times	2.01	4.09

Status of non-cooperation with previous CRA (if applicable)

­None

Interaction with Audit Committee anytime in the last 12 months (applicable for rated-listed / proposed to be listed debt securities being reviewed by Acuite)

Not applicable

Any other information

­None

Applicable Criteria

• 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 • Trading Entities: https://www.acuite.in/view-rating-criteria-61.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:Not Applicable

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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 State Bank of India Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.00 Simple ACUITE A4+ | Assigned Bank of Baroda Not avl. / Not appl. Channel/Dealer/Vendor Financing Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 7.50 Simple ACUITE A4+ | Assigned State Bank of India Not avl. / Not appl. Working Capital Demand Loan (WCDL) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 48.50 Simple ACUITE BB+ | Stable | Assigned

Contacts

Mohit Jain Senior Vice President - Rating Operations Vedika Lahoti 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.