Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 23.50 ACUITE D | Reaffirmed | Issuer not co-operating* -
Total Outstanding 23.50 - -
 
Rating Rationale

­Acuité has reaffirmed the long-term rating of ‘ACUITE D' (read as ACUITE D)  on the Rs.23.50 Cr. bank facilities of Laxmi Pipes Limited (LPL). The rating continues to be an indicative rating, and is based on the best available information.


About the Company

­Laxmi Pipes Limited (LPL), incorporated in 1984, is Haryana based company engaged in the business of manufacturing of Black and Galvanized Tubes and Pipes and sell the same under the brand named as “Singal India”. The key raw material for the manufacturing of Galvanized Pipes is HR Coils. The company commenced manufacturing of same in 1987, whereas routine operations of the company are managed by Mr. Pawan Singla and Mr. Sandeep Singla.

 
Unsupported Rating
­Not Applicable
 
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 rating is based.­

 
Rating Sensitivity

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

 
Liquidity Position

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

 
Outlook

­Not Applicable.

 
Other Factors affecting Rating

­None

 

Particulars Unit FY 22 (Actual) FY 21 (Actual)
Operating Income Rs. Cr. 37.48 66.66
PAT Rs. Cr. (18.61) (5.55)
PAT Margin (%) (49.65) (8.32)
Total Debt/Tangible Net Worth Times 3.12 5.64
PBDIT/Interest Times (8.54) (0.27)
Status of non-cooperation with previous CRA

­Not Applicable

 
Any other information

­None.

 
Applicable Criteria
• 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

­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.

 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
24 Nov 2022 Cash Credit Long Term 21.25 ACUITE D (Downgraded and Issuer not co-operating*)
Term Loan Long Term 2.25 ACUITE D (Downgraded and Issuer not co-operating*)
08 Jun 2022 Cash Credit Long Term 21.25 ACUITE BB ( Issuer not co-operating*)
Term Loan Long Term 2.25 ACUITE BB ( Issuer not co-operating*)
10 Mar 2021 Term Loan Long Term 2.25 ACUITE BB (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 21.25 ACUITE BB (Downgraded and Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 21.25 Simple ACUITE D | Reaffirmed | Issuer not co-operating*
State Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.25 Simple ACUITE D | Reaffirmed | Issuer not co-operating*

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