Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 40.00 ACUITE BB+ | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 54.00 - ACUITE A4+ | Downgraded | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 94.00 - -
 
Rating Rationale
Acuité has downgraded the long term rating to ‘ACUITE BB+’ (read as ACUITE double B plus) from ‘ACUITE BBB-’ (read as ACUITE triple B minus) 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.94.00 crore bank facilities of DTL Ancillaries Limited.
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
­DTL is a Pune based company incorporated in the year 1996 by Mr. Vijay Mohan Jain, first generation entrepreneur having more than four decades of experience. Mr. Jain is ably supported by his son Mr. Sidharth Jain, in his capacity as a Joint Managing Director. Mr. Darshan Jindal & Mr. Shashank Ramesh Anikhindi both are also director of this company. Mr. Sidharth Jain has been instrumental in scaling up the business operations.DTL is engaged in manufacturing of Cold Roll Formed (CRF) components for Automobile industry, Indian Railways and Metro Railways. DTL manufactures CRF components and fabricates side walls and roofs for wagons/coaches for Indian Railways which accounts for almost 95% of the company’s revenues. DTL also supplies load bodies and panels for commercial vehicles to Piaggio vehicles which accounts to 5% of the revenues.
 
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.­

 
 
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
 
All 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. 189.49 128.86
PAT Rs. Cr. 0.33 (9.62)
PAT Margin (%) 0.17 (7.47)
Total Debt/Tangible Net Worth Times 0.79 0.98
PBDIT/Interest Times 1.71 0.74
Status of non-cooperation with previous CRA
­None
 
Any other information
­Acuite is yet to receive the latest No Default Statement  from the rated entity despite repeated requests and followups.
 
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
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm
• Rating Process and Timeline: https://www.acuite.in/view-rating-criteria-67.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 Jun 2022 Bank Guarantee Short Term 20.00 ACUITE A3 (Reaffirmed)
Bank Guarantee Short Term 15.00 ACUITE A3 (Assigned)
Cash Credit Long Term 35.00 ACUITE BBB- | Stable (Reaffirmed)
Cash Credit Long Term 5.00 ACUITE BBB- | Stable (Assigned)
Letter of Credit Short Term 19.00 ACUITE A3 (Reaffirmed)
23 May 2022 Letter of Credit Short Term 19.00 ACUITE A3 (Upgraded from ACUITE A4+)
Cash Credit Long Term 35.00 ACUITE BBB- | Stable (Upgraded from ACUITE BB )
Bank Guarantee Short Term 20.00 ACUITE A3 (Upgraded from ACUITE A4+)
15 Apr 2021 Bank Guarantee Short Term 10.00 ACUITE A4+ (Issuer not co-operating*)
Letter of Credit Short Term 29.00 ACUITE A4+ (Issuer not co-operating*)
Cash Credit Long Term 35.00 ACUITE BB (Downgraded and Issuer not co-operating*)
14 Jan 2020 Cash Credit Long Term 35.00 ACUITE BB+ ( Issuer not co-operating*)
Bank Guarantee Short Term 10.00 ACUITE A4+ (Issuer not co-operating*)
Letter of Credit Short Term 29.00 ACUITE A4+ (Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Yes Bank Ltd Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 15.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating*
State Bank of India Not Applicable Bank Guarantee/Letter of Guarantee Not Applicable Not Applicable Not Applicable 20.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating*
Yes Bank Ltd Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 5.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
State Bank of India Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 35.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
State Bank of India Not Applicable Letter of Credit Not Applicable Not Applicable Not Applicable 19.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating*

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