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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 35.76 | Not Applicable | Withdrawn | - |
| Bank Loan Ratings | 26.00 | - | Not Applicable | Withdrawn |
| Total Outstanding Quantum (Rs. Cr) | 0.00 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 61.76 | - | - |
| Rating Rationale |
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Acuité has withdrawn the rating on the Rs.61.76 Cr bank facilities of EMT MEGATHERM PRIVATE LIMITED (EMTMPL). The rating has been withdrawn on Acuite's policy of withdrawal of ratings. The rating has been withdrawn on account of the request received from the company, and the NDC received from the banker. Since the loan availed by the company has been repaid, the rating has been withdrawn. |
| About the Company |
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EMT Megatherm Private Limited was incorporated in 1998 as Engel Machine Tools Private Limited by the Government of West Bengal (GoWB) and later in 2005 taken over by the Kolkata based Chanda family through Megatherm Electronics Private Limited (MEPL). Since takeover, the operations from MEPL gradually shifted to EMT. Currently, EMT is engaged in manufacturing of ladle refining furnace and continuous steel casting machines, transformer for steel and metal/ power industry and execution of EPC contracts for steel, foundry & forging and transformer sector. The operations are managed by Mr Shesadri Bhusan Chanda and Mr. Satadri Chanda.
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| Analytical Approach |
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Not Applicable
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Key Rating Drivers
| Strengths |
| Not Applicable |
| Weaknesses |
| Not Applicable |
| Rating Sensitivities |
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Not Applicable |
| Material covenants |
| Not Applicable |
| Liquidity Position: |
| Not Applicable |
| Outlook: |
| Not Applicable |
| Other Factors affecting Rating |
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Not Applicable |
| About the Rated Entity - Key Financials |
| Acuite has displayed the consolidated financials of EMT Megatherm Private Limited and Megatherm Induction Limited. |
| Particulars | Unit | FY 22 (Actual) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 191.92 | 138.78 |
| PAT | Rs. Cr. | (3.31) | (13.13) |
| PAT Margin | (%) | (1.73) | (9.46) |
| Total Debt/Tangible Net Worth | Times | 1.86 | 1.71 |
| PBDIT/Interest | Times | 0.99 | 0.15 |
| Status of non-cooperation with previous CRA (if applicable) |
| Care Ratings vide its press release dated 22.08.2022 had downgraded the company to CARE C/A4 (Stable) ; Issuer Not Cooperating. |
| Any other information |
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None |
| Applicable Criteria |
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• 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 |
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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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