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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 50.00 | ACUITE BB- | Reaffirmed | Issuer not co-operating* | - |
| Total Outstanding Quantum (Rs. Cr) | 50.00 | - | - |
| Rating Rationale |
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Acuité has reaffirmed the long-term rating to ‘ACUITE BB-’ (read as ACUITE Double B minus) on the Rs. 50.00 crore bank facilities of Hema Automotive Private Limited (HAPL). The rating continues to be flagged as “Issuer Not Cooperating” and is based on the best available information. |
| About the Company |
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The Delhi-based, Hema Automotive Private Limited (HAPL) incorporated in 2015 was promoted by Mr. Chandresh Jajoo and Mr. Adarsh Kumar Yadav (Directors). The company manufactures auto components (stand, body and chassis) for Hero MotoCorp Limited at Neemrana, Rajasthan. Hema Automotive Private Limited is part of Hema Group which comprises of HAPL and Hema Engineering Industries Limited (HEIL). The group incorporated in 1987 is engaged in the manufacturing of auto components stand, body chassis etc, for OEM’s such as Hero Moto Corp, TVS Motor, Royal Enfeild, Yamaha, to name a few. It is led by Mr. Chandresh Jajoo and Mr. Adarsh Kumar Yadav. |
| 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. |
| 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 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 Sensitivity |
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"No information provided by the issuer / available for Acuite to comment upon." |
| All Covenants |
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Not Applicable |
| Liquidity Position |
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"No information provided by the issuer / available for Acuite to comment upon." |
| Outlook |
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Not Applicable |
| Other Factors affecting Rating |
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Not Applicable |
| Particulars | Unit | FY 19 (Actual) | FY 18 (Actual) |
| Operating Income | Rs. Cr. | 161.69 | 190.06 |
| PAT | Rs. Cr. | (0.07) | 0.19 |
| PAT Margin | (%) | (0.05) | 0.10 |
| Total Debt/Tangible Net Worth | Times | 6.18 | 6.37 |
| PBDIT/Interest | Times | 1.68 | 1.63 |
| Status of non-cooperation with previous CRA |
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None |
| Any other information |
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Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups. |
| Applicable Criteria |
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• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.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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