Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 5.00 ACUITE BB+ | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 105.00 - ACUITE A4+ | Downgraded | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 110.00 - -
 
Rating Rationale
­Acuité has downgraded the long term rating to 'ACUITE BB+' (read as ACUITE double B plus) from ‘ACUITE BBB-’ (read as ACUITE triple B minus) and the short term rating to 'ACUITE A4+' (read as ACUITE A four plus) from ‘ACUITE A3’ (read as ACUITE A three) on the Rs. 110.00 Cr. bank facilities of MGT Motors Private Limited (MGTMPL).
The rating is now  flagged as “Issuer Not Cooperating” and is based on the best available information.
The rating has been downgraded on account of information risk.

About the Company
­Incorporated in 2000, MGT Motors Private Limited is engaged in the dealership of the entire range of commercial vehicles of Tata Motors Limited. The company is promoted by Mr. Kulwant Singh Cheema, Mr. Amardeep Singh Cheema and Mr. Virender Kaur Cheema. MGTMPL operates 3s showrooms in Manipur and Assam, with one showroom in Imphal and the rest four in Guwahati.
 
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 noncooperation 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 Sensitivities
­No information provided by the issuer / available for Acuite to comment upon.
 
All Covenants
­None
 
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. 425.92 254.84
PAT Rs. Cr. 3.33 0.79
PAT Margin (%) 0.78 0.31
Total Debt/Tangible Net Worth Times 2.65 2.48
PBDIT/Interest Times 1.82 1.39
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
• 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
 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
05 Aug 2022 Channel Financing Short Term 15.00 ACUITE A3 (Assigned)
Channel Financing Short Term 10.00 ACUITE A3 (Assigned)
Channel Financing Short Term 9.00 ACUITE A3 (Assigned)
Cash Credit Long Term 5.00 ACUITE BBB- | Stable (Assigned)
Channel Financing Short Term 62.50 ACUITE A3 (Assigned)
Ad-hoc limits (Fund Based) Short Term 3.50 ACUITE A3 (Assigned)
Channel Financing Short Term 5.00 ACUITE A3 (Assigned)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Indusind Bank Ltd Not Applicable Ad-hoc Limits (Fund Based) Not Applicable Not Applicable Not Applicable 3.50 Simple ACUITE A4+ | Downgraded | Issuer not co-operating*
HDFC Bank Ltd Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 5.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
HDFC Bank Ltd Not Applicable Channel/Dealer/Vendor Financing Not Applicable Not Applicable Not Applicable 62.50 Simple ACUITE A4+ | Downgraded | Issuer not co-operating*
TATA Capital Financial Service Ltd. Not Applicable Channel/Dealer/Vendor Financing Not Applicable Not Applicable Not Applicable 15.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating*
Tata Motors Finance Solutions Ltd. Not Applicable Channel/Dealer/Vendor Financing Not Applicable Not Applicable Not Applicable 10.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating*
ICICI Bank Ltd Not Applicable Channel/Dealer/Vendor Financing Not Applicable Not Applicable Not Applicable 5.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating*
Indusind Bank Ltd Not Applicable Channel/Dealer/Vendor Financing Not Applicable Not Applicable Not Applicable 9.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating*

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