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Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
Bank Loan Ratings | 20.00 | ACUITE BB | Reaffirmed & Withdrawn | - |
Total Outstanding | 0.00 | - | - |
Total Withdrawn | 20.00 | - | - |
Rating Rationale |
Acuité has reaffirmed and withdrawn the long-term rating to ‘ACUITE BB’ (read as ACUITE Double B) on the Rs 20.00 crore bank facilities of BMI Cables Private Limited. The rating has been withdrawn on Acuite's policy of withdrawal of ratings as applicable to the respective instrument/facility. The rating has been withdrawn on account of the request received from the company, and the NOC (No Objection Certificate) received from the banker.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 |
New Delhi based BMI Cables Private Limited was established in November, 1998 as a private limited company and is currently being managed by Mr. Haresh Chand Goyal and Mr. Kumar Goyal. The company is engaged in manufacturing of copper and aluminium wires; at its manufacturing facility located at RIICO Industrial Area, Bhiwadi, Rajasthan. |
Unsupported Rating |
Not Applicable |
Analytical Approach |
Acuité has considered the standalone business and financial risk profiles of BCPL to arrive at this rating. |
Key Rating Drivers |
Strengths |
Established track record of operations along with experienced management |
Weaknesses |
Average Financial Risk Profile |
Rating Sensitivities |
Not Applicable |
Liquidity Position |
Adequate |
The company has an adequate liquidity position marked by adequate net cash accruals against its maturing debt obligations. The company generated cash accruals of Rs.2.54 crore in FY23 as against maturing debt obligations of Rs.1.13 crore over the same period. The company maintains unencumbered cash and bank balances of Rs.0.67 crore as on 31st March 2023. The current ratio stood at 1.44 times as on 31st March 2023. |
Outlook: Not Applicable |
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Other Factors affecting Rating |
None |
Particulars | Unit | FY 23 (Actual) | FY 22 (Actual) |
Operating Income | Rs. Cr. | 177.44 | 140.89 |
PAT | Rs. Cr. | 1.67 | 1.41 |
PAT Margin | (%) | 0.94 | 1.00 |
Total Debt/Tangible Net Worth | Times | 2.62 | 2.80 |
PBDIT/Interest | Times | 2.13 | 1.94 |
Status of non-cooperation with previous CRA (if applicable) |
Not Applicable |
Any other information |
None |
Applicable Criteria |
• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.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. |
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