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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 10.00 | ACUITE B | Downgraded | Issuer not co-operating* | - |
| Total Outstanding | 10.00 | - | - |
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Rating Rationale |
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Acuité has downgraded the long-term rating to ‘ACUITE B’ (read as ACUITE B) from 'ACUITE B+' (read as ACUITE B plus) on the Rs.10.00 crore bank facilities of Mailam India Limited (MIL) on account of information risk. 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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Pondicherry-based, Mailam India Limited (MIL) incorporated in 1983, was promoted by Mr. M. Sivagurunathan, Mr. R. Venkataraman, Mr. Ramaswamy Rengarajan, and others. The company is led by Mr. Ramaswamy Rengarajan, Managing Director, who possess more than three decades of experience in the electrical equipments industry. MIL is engaged in the manufacturing of welding consumables such as Electrodes, Flux cored Wires and Wear Plates. The company has two units in Pondicherry with a production capacity of 6000 Metric tonnes per annum. The company procures raw material such as mild steel rods, mild steel strips, Ferro allays, stainless steel wires from Jindal Steel, Tata Steel, among others. |
| Unsupported Rating |
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Not Applicable |
| 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 ratingis based. |
| Rating Sensitivity |
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"No information provided by the issuer / available for Acuite to comment upon." |
| 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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None |
| Particulars | Unit | FY 23 (Actual) | FY 22 (Actual) |
| Operating Income | Rs. Cr. | 87.28 | 53.68 |
| PAT | Rs. Cr. | 5.31 | 0.97 |
| PAT Margin | (%) | 6.08 | 1.81 |
| Total Debt/Tangible Net Worth | Times | 0.20 | 0.37 |
| PBDIT/Interest | Times | 17.69 | 13.10 |
| Status of non-cooperation with previous CRA |
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Not Applicable |
| Any other information |
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None |
| 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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