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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 10.95 | ACUITE BB- | Downgraded & Withdrawn | Issuer not co-operating* | - |
| Total Outstanding Quantum (Rs. Cr) | 0.00 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 10.95 | - | - |
| Rating Rationale |
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Acuité has downgraded & withdrawn the long-term rating from ‘ACUITE BB’ (read as ACUITE double B) to 'ACUITE BB-' (read as ACUITE double B minus) on the Rs.10.95 crore bank facilities of Hoshiarpur Automobiles(HA). The rating withdrawal is in accordance with Acuité’s policy on withdrawal of rating. The rating continues to be flagged as “Issuer NotCooperating”. The rating is being withdrawn on account of request received from the company and NOC received from the banker. This rating has been downgraded on account of information risk. |
| About the Company |
| HA, incorporated as a partnership firm in 1980 in Hoshiarpur (Punjab), is engaged in automobile trading business. It started its business as an authorised service and spares dealer of Matador vehicles of Bajaj Auto Limited. Subsequently, in 1993, it started its association with MSIL as a Maruti Authorized Service Station. Further, it became an authorised dealer of MSIL in August 2001 and has been since engaged in this business. HA is managed by Mr. Ajvinder Singh, Mr. Gurpreet Singh and Mr. Iqbal Singh. It has seven showrooms in Hoshiarpur and one E-outlet at Singriwala, Garhshankar, Dasuya, Tanda Urmur, Mahilpur, Mukerian, Bullowal and Talwara each. The dealership has been awarded MSIL’s ‘India No. 1 and Platinum band’ consistently. The registered office as well as showrooms of the company is situated at Punjab. |
| 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. |
| 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 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 ratingis based. |
| About the Rated Entity - Key Financials |
| The rated entity has not shared the latest financial statements despite repeated requests. |
| Rating Sensitivity |
| 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 |
| Not Applicable |
| Status of non-cooperation with previous CRA |
| None |
| 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 |
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• Trading Entities: https://www.acuite.in/view-rating-criteria-61.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 |
| https://www.acuite.in/view-rating-criteria-55.htm |
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