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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 87.46 | ACUITE BB+ | Downgraded | Issuer not co-operating* | - |
| Bank Loan Ratings | 2.00 | - | ACUITE A4+ | Downgraded | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 89.46 | - | - |
| Rating Rationale |
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Acuité has downgraded its long-term rating to 'ACUITE BB+' (read as ACUITE Double B plus) from ‘ACUITE BBB’ (read as ACUITE triple B) and the short-term rating to 'ACUITE A4+' (read as ACUITE A four plus) from 'ACUITE A3+' (read as ACUITE A three plus) on the Rs.89.46 Cr bank facilities of Global Castings Private Limited (GCPL).
This rating is now an indicative rating and is based on the best available information.
The rating has been downgraded on account of information risk. |
| About the Company |
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Global Castings Private Limited (GCPL) is a Kolkata-based firm which was established in 2007 and began commercial operations in July 2010 with its corporate office located in Kolkata. GCPL was promoted by Mr. Rajiv Shah and Mr. Saurav Shah. The manufacturing facility of the company is located in Burdwan district of West Bengal. Presently, GCPL is engaged in the manufacturing of cast Iron & ductile iron castings, which includes products such as manhole covers, grate, pipe fittings, and automobile parts. The company presently has an installed capacity of 30,000 MTPA.
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| Non-cooperation by the issuer/borrower |
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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 an 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.
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| Limitation regarding information availability |
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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 has 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.
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| Rating Sensitivities |
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No information provided by the issuer / available for Acuite to comment upon.
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| Material Covenants |
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None
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| Liquidity Position |
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No information provided by the issuer / available for Acuite to comment upon.
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| Outlook |
| Not Applicable |
| Other Factors affecting Rating |
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None
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| Particulars | Unit | FY 21 (Actual) | FY 20 (Actual) |
| Operating Income | Rs. Cr. | 128.19 | 98.35 |
| PAT | Rs. Cr. | 2.58 | 1.32 |
| PAT Margin | (%) | 2.01 | 1.34 |
| Total Debt/Tangible Net Worth | Times | 1.39 | 1.95 |
| PBDIT/Interest | Times | 3.38 | 2.88 |
| Status of non-cooperation with previous CRA |
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Brickwork, vide its press release dated 18/04/2022 had denoted the rating of Global Castings Pvt. Ltd. (GCPL) as 'BWR BB/Stable/A4; ISSUER NOT COOPERATING’
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| Any other information |
| None |
| Applicable Criteria |
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• 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 |
| 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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