Press Release

Press Release

January 02, 2025

LIDO COMMERCIAL COMPANY LIMITED
Rating Downgraded,Reaffirmed and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	5.75	ACUITE BB \| Downgraded \| Issuer not co-operating*	-
Bank Loan Ratings	24.25	-	ACUITE A4+ \| Reaffirmed \| Issuer not co-operating*
Total Outstanding	30.00	-	-
Total Withdrawn	0.00	-	-
* The issuer did not co-operate; based on best available information.

Rating Rationale

Acuité has downgraded the long-term rating to ‘ACUITE BB’ (read as ACUITE Double B) from ‘ACUITE BB+’ (read as ACUITE Double B plus) on the Rs.5.75 Cr. bank facilities and reaffirmed the short-term rating at ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs.24.25 Cr. bank facilities of Lido Commercial Company Limited.
The rating is now flagged as “Issuer Not Cooperating” based on the best available information and is downgraded on account of information risk.

About the Company

Lido Commercial Company Limited (LCCL) is a New Delhi-based company incorporated in 1983. The company is promoted by Mr. R.K. Singhania along with his other family members. The company is engaged in retail and wholesale trading of all passenger vehicles of Mahindra automobiles and has one showroom, 2 workshops and one body shop. The Company's working under the name of Sri Durga Automobiles (A division of Lido Commercial Company Ltd.) The operations of the company are currently handled by Mr. Kirti Singhania, Mr. Ashish Singhania, and Mr. Alok Singhania.

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 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 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.

Rating Sensitivities

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

Liquidity Position

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

Outlook: Not Applicable

Other Factors affecting Rating

None.

Key Financials

Particulars	Unit	FY 24 (Actual)	FY 23 (Actual)
Operating Income	Rs. Cr.	262.46	251.54
PAT	Rs. Cr.	3.79	4.34
PAT Margin	(%)	1.44	1.72
Total Debt/Tangible Net Worth	Times	0.49	0.30
PBDIT/Interest	Times	4.36	5.03

Status of non-cooperation with previous CRA

Not Applicable.

Any other information

None.

Applicable Criteria

• 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
• Trading Entitie: https://www.acuite.in/view-rating-criteria-61.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.

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
12 Oct 2023	Inventory Funding	Short Term	7.00	ACUITE A4+ (Reaffirmed)
	Inventory Funding	Short Term	1.75	ACUITE A4+ (Reaffirmed)
	Bank Guarantee/Letter of Guarantee	Short Term	15.00	ACUITE A4+ (Reaffirmed)
	Bank Guarantee/Letter of Guarantee	Short Term	0.50	ACUITE A4+ (Reaffirmed)
	Term Loan	Long Term	0.20	ACUITE BB+ \| Stable (Upgraded from ACUITE BB \| Stable)
	Cash Credit	Long Term	2.00	ACUITE BB+ \| Stable (Upgraded from ACUITE BB \| Stable)
	Cash Credit	Long Term	1.00	ACUITE BB+ \| Stable (Upgraded from ACUITE BB \| Stable)
	Working Capital Term Loan	Long Term	2.55	ACUITE BB+ \| Stable (Upgraded from ACUITE BB \| Stable)
14 Jul 2022	Bank Guarantee/Letter of Guarantee	Short Term	15.00	ACUITE A4+ (Upgraded from ACUITE A4)
	Bank Guarantee/Letter of Guarantee	Short Term	0.50	ACUITE A4+ (Upgraded from ACUITE A4)
	Term Loan	Long Term	2.80	ACUITE BB \| Stable (Upgraded from ACUITE B+)
	Term Loan	Long Term	3.69	ACUITE BB \| Stable (Upgraded from ACUITE B+)
	Proposed Long Term Bank Facility	Long Term	0.51	ACUITE BB \| Stable (Upgraded from ACUITE B+)
	Cash Credit	Long Term	3.00	ACUITE BB \| Stable (Upgraded from ACUITE B+)
	Cash Credit	Long Term	1.00	ACUITE BB \| Stable (Upgraded from ACUITE B+)
	Term Loan	Long Term	2.47	ACUITE BB \| Stable (Upgraded from ACUITE B+)
	Working Capital Term Loan	Long Term	1.03	ACUITE BB \| Stable (Upgraded from ACUITE B+)
01 Apr 2022	Bank Guarantee/Letter of Guarantee	Short Term	15.00	ACUITE A4 (Downgraded & Issuer not co-operating* from ACUITE A4+)
	Bank Guarantee/Letter of Guarantee	Short Term	0.50	ACUITE A4 (Downgraded & Issuer not co-operating* from ACUITE A4+)
	Term Loan	Long Term	2.80	ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB- \| Stable)
	Term Loan	Long Term	3.69	ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB- \| Stable)
	Proposed Long Term Bank Facility	Long Term	0.51	ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB- \| Stable)
	Cash Credit	Long Term	3.00	ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB- \| Stable)
	Cash Credit	Long Term	1.00	ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB- \| Stable)
	Term Loan	Long Term	2.47	ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB- \| Stable)
	Working Capital Term Loan	Long Term	1.03	ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB- \| Stable)
16 Apr 2021	Bank Guarantee (BLR)	Short Term	15.00	ACUITE A4+ (Assigned)
	Bank Guarantee (BLR)	Short Term	0.50	ACUITE A4+ (Assigned)
	Cash Credit	Long Term	3.00	ACUITE BB- \| Stable (Assigned)
	Cash Credit	Long Term	1.00	ACUITE BB- \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	0.51	ACUITE BB- \| Stable (Assigned)
	Term Loan	Long Term	2.47	ACUITE BB- \| Stable (Assigned)
	Term Loan	Long Term	2.80	ACUITE BB- \| Stable (Assigned)
	Term Loan	Long Term	3.69	ACUITE BB- \| Stable (Assigned)
	Working Capital Term Loan	Long Term	1.03	ACUITE BB- \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Kotak Mahindra Bank	Not avl. / Not appl.	Bank Guarantee/Letter of Guarantee	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	15.00	Simple	ACUITE A4+ \| Reaffirmed \| Issuer not co-operating*
Kotak Mahindra Bank	Not avl. / Not appl.	Bank Guarantee/Letter of Guarantee	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.50	Simple	ACUITE A4+ \| Reaffirmed \| Issuer not co-operating*
Kotak Mahindra Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.00	Simple	ACUITE BB \| Downgraded \| Issuer not co-operating* ( from ACUITE BB+ )
Kotak Mahindra Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.00	Simple	ACUITE BB \| Downgraded \| Issuer not co-operating* ( from ACUITE BB+ )
HDFC Bank Ltd	Not avl. / Not appl.	Inventory Funding	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	7.00	Simple	ACUITE A4+ \| Reaffirmed \| Issuer not co-operating*
Indusind Bank Ltd	Not avl. / Not appl.	Inventory Funding	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.75	Simple	ACUITE A4+ \| Reaffirmed \| Issuer not co-operating*
Kotak Mahindra Bank	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.20	Simple	ACUITE BB \| Downgraded \| Issuer not co-operating* ( from ACUITE BB+ )
Kotak Mahindra Bank	Not avl. / Not appl.	Working Capital Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.55	Simple	ACUITE BB \| Downgraded \| Issuer not co-operating* ( from ACUITE BB+ )

* The issuer did not co-operate; based on best available information.

Contacts

Mohit Jain
Senior Vice President - Rating Operations

Dhruvi Chauhan
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.

Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.