Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 42.50 ACUITE B+ | Downgraded | Issuer not co-operating* -
Total Outstanding 42.50 - -
 
Rating Rationale

­Acuité has downgraded its long-term rating to ‘ACUITE B+’ (read as ACUITE B plus) from 'ACUITE BB-' (read as ACUITE Double B minus) on the Rs. 42.50 crore bank facilities of ­Cargo Motors Kutch Private Limited(CMKPL).

Acuite had sent repeated reminders to the company for sharing critical information for surveillance of the ratings. But despite multiple requests, the company has remained non-cooperative in providing the information. The rating is now flagged as “Issuer Not-Cooperating” and is based on the best information available. The downgrade is on account of information risk.

About the Company
­Gujarat-based, Cargo Motors Kutch Private Limited was established in the year 2005 by Mr. Pravesh Nanda at Ahmedabad, Gujarat. The company has been engaging in dealership business for MG Motors in Punjab and Haryana since June 2019. The company operates across 7 showrooms and 6 workshops.
The present directors are Ms. Anita Nanda Mr. Vimal Chunilal Gujral, Mr. Jayant Nanda, Ms. Devki Nanda and Mr. Abhishek Vimal Gujral.
 
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 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 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
 

Particulars Unit FY 22 (Actual) FY 21 (Actual)
Operating Income Rs. Cr. 353.22 283.79
PAT Rs. Cr. 0.57 0.67
PAT Margin (%) 0.16 0.24
Total Debt/Tangible Net Worth Times 2.96 4.42
PBDIT/Interest Times 1.91 2.52
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
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Trading Entitie: 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.
 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
08 May 2023 Cash Credit Long Term 34.00 ACUITE BB- | Stable (Downgraded from ACUITE BB | Stable)
Proposed Long Term Bank Facility Long Term 8.50 ACUITE BB- | Stable (Downgraded from ACUITE BB | Stable)
11 May 2022 Cash Credit Long Term 42.50 ACUITE BB | Stable (Assigned)
­

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. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 34.00 Simple ACUITE B+ | Downgraded | Issuer not co-operating* ( from ACUITE BB- )
Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 8.50 Simple ACUITE B+ | Downgraded | Issuer not co-operating* ( from ACUITE BB- )

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