Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 19.50 ACUITE BB+ | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 0.50 - ACUITE A4+ | Downgraded | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 20.00 - -
 
Rating Rationale
Acuité has downgraded the long term rating from‘ACUITE BBB-’ (read as ACUITE triple B minus) to ‘ACUITE BB+’ (read as ACUITE double B plus) and also downgraded short term rating to ACUITE A4+’ (read as ACUITE A four plus) from ‘ACUITE A3’ (read as ACUITE A three)  on the Rs.20.00 Cr bank facilities of Dinesh Brothers Private Limited (DBPL).
The rating is now flagged as “Issuer NotCooperating” and is based on the best available information.
The rating has been downgraded on account of inforamtion risk.­

About the Company
Incorporated in 1962, Dinesh Brothers Private Limited (DBPL), is a Kolkata based company involved in manufacturing, trading and exports of manhole covers, manhole sets, C.I castings, D.I castings etc. Over 90 percent of its sales are exports. In January 2021, the company has commenced its manufacturing unit of D.I. castings with an installed capacity of 12,000 MTPA. In FY22, the company generated around 35 per cent of its revenue from manufacturing and remaining from trading sales. Mr. Gaurav Seksaria and Mr. Dinesh Kumar Seksaria are the directors of the company.­
 
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 noncooperation 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.a­
 
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 rating is 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: Not Applicable­
­
 
Other Factors affecting Rating
­None
 

Particulars Unit FY 22 (Actual) FY 21 (Actual)
Operating Income Rs. Cr. 253.23 122.67
PAT Rs. Cr. 7.40 5.85
PAT Margin (%) 2.92 4.77
Total Debt/Tangible Net Worth Times 1.75 1.52
PBDIT/Interest Times 4.13 3.41
Status of non-cooperation with previous CRA
­CRISIL vide its press release dated 18.10.2022, had rated the company to CRISIL B+/Stable/A4; Issuer Not Cooperating.
 
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
• Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.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
03 May 2022 Cash Credit Long Term 0.50 ACUITE BBB- | Stable (Upgraded from ACUITE BB+)
Proposed Bank Facility Short Term 0.50 ACUITE A3 (Upgraded from ACUITE A4+)
Packing Credit Long Term 8.00 ACUITE BBB- | Stable (Upgraded from ACUITE BB+)
Bills Discounting Long Term 11.00 ACUITE BBB- | Stable (Upgraded from ACUITE BB+)
08 Feb 2021 Packing Credit Long Term 8.00 ACUITE BB+ (Downgraded and Issuer not co-operating*)
Proposed Bank Facility Short Term 0.50 ACUITE A4+ (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 0.50 ACUITE BB+ (Downgraded and Issuer not co-operating*)
Bills Discounting Long Term 11.00 ACUITE BB+ (Downgraded and Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
HDFC Bank Ltd Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 0.50 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
HDFC Bank Ltd Not Applicable FBN/FBP/FBD/PSFC/FBE Not Applicable Not Applicable Not Applicable 11.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
HDFC Bank Ltd Not Applicable PC/PCFC Not Applicable Not Applicable Not Applicable 8.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
Not Applicable Not Applicable Proposed Short Term Bank Facility Not Applicable Not Applicable Not Applicable 0.50 Simple ACUITE A4+ | Downgraded | Issuer not co-operating*

Contacts
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About Acuité Ratings & Research
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