Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 170.00 ACUITE BB- | Reaffirmed | Issuer not co-operating* -
Total Outstanding Quantum (Rs. Cr) 170.00 - -
 
Rating Rationale

­Acuité has reaffirmed the long-term rating of ‘ACUITE BB-’ (read as ACUITE double B minus) on the Rs.170 Cr bank facilities of Lanson Motors Private Limited (LMPL). The rating continues to be flagged as “Issuer Not Cooperating” and is based on the best available information.


About the Company

­Chennai based, Lanson Motors Private Limited (LMPL) was incorporated in 1998 by Mr. M Lankalingam and his wife Mrs. Reeta Lankalingam. Currently, the company is managed by Mr. M Lankalingam and son Mr. Sivanka Lankalingam. The company is an authorized dealer for Toyota Kirloskar Motor Private Limited (TKMPL) in North Tamil Nadu and Puducherry. The company operates on 3S model (sales, service and spares) and also runs Toyota driving school.

 
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 non-cooperation 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 ratingis based.

 
Rating Sensitivity

­No information provided by the issuer / available for Acuite to comment upon.

 
Material Covenants

­Not Applicable

 
Liquidity Position

­No information provided by the issuer / available for Acuite to comment upon.

 
Outlook

­Not Applicable

 
Other Factors affecting Rating

­Not Applicable

 

Particulars Unit FY 22 (Actual) FY 21 (Actual)
Operating Income Rs. Cr. 667.95 430.68
PAT Rs. Cr. 17.95 12.27
PAT Margin (%) 2.69 2.85
Total Debt/Tangible Net Worth Times 0.59 0.78
PBDIT/Interest Times 8.77 4.24
Status of non-cooperation with previous CRA

­Not Applicable

 
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
• 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

­­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 FinancialInstruments” on www.acuite.in.
 

 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
19 Apr 2022 Term Loan Long Term 1.28 ACUITE BB- (Downgraded and Issuer not co-operating*)
Term Loan Long Term 16.21 ACUITE BB- (Downgraded and Issuer not co-operating*)
Term Loan Long Term 6.87 ACUITE BB- (Downgraded and Issuer not co-operating*)
Term Loan Long Term 11.76 ACUITE BB- (Downgraded and Issuer not co-operating*)
Inventory Funding Long Term 25.00 ACUITE BB- (Downgraded and Issuer not co-operating*)
Proposed Bank Facility Long Term 21.66 ACUITE BB- (Downgraded and Issuer not co-operating*)
Inventory Funding Long Term 3.00 ACUITE BB- (Downgraded and Issuer not co-operating*)
Term Loan Long Term 0.36 ACUITE BB- (Downgraded and Issuer not co-operating*)
Term Loan Long Term 0.73 ACUITE BB- (Downgraded and Issuer not co-operating*)
Inventory Funding Long Term 3.00 ACUITE BB- (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 53.50 ACUITE BB- (Downgraded and Issuer not co-operating*)
Term Loan Long Term 0.66 ACUITE BB- (Downgraded and Issuer not co-operating*)
Term Loan Long Term 8.05 ACUITE BB- (Downgraded and Issuer not co-operating*)
Inventory Funding Long Term 5.00 ACUITE BB- (Downgraded and Issuer not co-operating*)
Inventory Funding Long Term 11.00 ACUITE BB- (Downgraded and Issuer not co-operating*)
Term Loan Long Term 0.59 ACUITE BB- (Downgraded and Issuer not co-operating*)
Term Loan Long Term 1.33 ACUITE BB- (Downgraded and Issuer not co-operating*)
05 Feb 2021 Term Loan Long Term 11.76 ACUITE BB | Stable (Reaffirmed)
Inventory Funding Long Term 3.00 ACUITE BB | Stable (Reaffirmed)
Term Loan Long Term 6.87 ACUITE BB | Stable (Reaffirmed)
Inventory Funding Long Term 25.00 ACUITE BB | Stable (Reaffirmed)
Term Loan Long Term 0.66 ACUITE BB | Stable (Reaffirmed)
Proposed Bank Facility Long Term 21.66 ACUITE BB | Stable (Reaffirmed)
Cash Credit Long Term 53.50 ACUITE BB | Stable (Reaffirmed)
Inventory Funding Long Term 11.00 ACUITE BB | Stable (Reaffirmed)
Term Loan Long Term 1.28 ACUITE BB | Stable (Reaffirmed)
Term Loan Long Term 0.73 ACUITE BB | Stable (Reaffirmed)
Term Loan Long Term 16.21 ACUITE BB | Stable (Reaffirmed)
Inventory Funding Long Term 5.00 ACUITE BB | Stable (Reaffirmed)
Term Loan Long Term 1.33 ACUITE BB | Stable (Reaffirmed)
Inventory Funding Long Term 3.00 ACUITE BB | Stable (Reaffirmed)
Term Loan Long Term 8.05 ACUITE BB | Stable (Reaffirmed)
Term Loan Long Term 0.36 ACUITE BB | Stable (Reaffirmed)
Term Loan Long Term 0.59 ACUITE BB | Stable (Reaffirmed)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
State Bank of India Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 53.50 Simple ACUITE BB- | Reaffirmed | Issuer not co-operating*
Axis Bank Not Applicable Inventory Funding Not Applicable Not Applicable Not Applicable 5.00 Simple ACUITE BB- | Reaffirmed | Issuer not co-operating*
HDFC Bank Ltd Not Applicable Inventory Funding Not Applicable Not Applicable Not Applicable 3.00 Simple ACUITE BB- | Reaffirmed | Issuer not co-operating*
Sundaram Finance Ltd. Not Applicable Inventory Funding Not Applicable Not Applicable Not Applicable 3.00 Simple ACUITE BB- | Reaffirmed | Issuer not co-operating*
Toyota Financial Services India Ltd. Not Applicable Inventory Funding Not Applicable Not Applicable Not Applicable 25.00 Simple ACUITE BB- | Reaffirmed | Issuer not co-operating*
LEXUS-Toyota Financial Services Not Applicable Inventory Funding Not Applicable Not Applicable Not Applicable 11.00 Simple ACUITE BB- | Reaffirmed | Issuer not co-operating*
Not Applicable Not Applicable Proposed Long Term Bank Facility Not Applicable Not Applicable Not Applicable 21.66 Simple ACUITE BB- | Reaffirmed | Issuer not co-operating*
Yes Bank Ltd Not Applicable Term Loan Not available Not available Not available 6.87 Simple ACUITE BB- | Reaffirmed | Issuer not co-operating*
Axis Bank Not Applicable Term Loan Not available Not available Not available 8.05 Simple ACUITE BB- | Reaffirmed | Issuer not co-operating*
Toyota Financial Services India Ltd. Not Applicable Term Loan Not available Not available Not available 1.33 Simple ACUITE BB- | Reaffirmed | Issuer not co-operating*
Toyota Financial Services India Ltd. Not Applicable Term Loan Not available Not available Not available 0.66 Simple ACUITE BB- | Reaffirmed | Issuer not co-operating*
Toyota Financial Services India Ltd. Not Applicable Term Loan Not available Not available Not available 0.59 Simple ACUITE BB- | Reaffirmed | Issuer not co-operating*
Kotak Mahindra Prime Limited Not Applicable Term Loan Not available Not available Not available 11.76 Simple ACUITE BB- | Reaffirmed | Issuer not co-operating*
Kotak Mahindra Prime Limited Not Applicable Term Loan Not available Not available Not available 16.21 Simple ACUITE BB- | Reaffirmed | Issuer not co-operating*
ICICI Bank Ltd Not Applicable Term Loan Not available Not available Not available 0.73 Simple ACUITE BB- | Reaffirmed | Issuer not co-operating*
ICICI Bank Ltd Not Applicable Term Loan Not available Not available Not available 1.28 Simple ACUITE BB- | Reaffirmed | Issuer not co-operating*
Axis Bank Not Applicable Term Loan Not available Not available Not available 0.36 Simple ACUITE BB- | Reaffirmed | Issuer not co-operating*

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