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Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
Bank Loan Ratings | 48.00 | ACUITE B+ | Downgraded | Issuer not co-operating* | - |
Total Outstanding Quantum (Rs. Cr) | 48.00 | - | - |
Rating Rationale |
Acuité has downgraded the long-term rating rating from 'ACUITE BB-' (read as ACUITE double B minus) to ‘ ACUITE B+’ (read as ACUITE B plus) Rs.48.00 crore bank facilities of My Car Private Limited(MCPL). This rating is now an indicative rating and is based on best available information. Rating has been downgraded on account of information risk on account of issuer non cooperation.
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About the Company |
Kanpur based, My Car Private Limited was incorporated in 2000 and the company has dealership of Maruti Suzuki India Ltd (MSIL). The company is currently being managed by Sh. Purshottam Das Garg and Mrs. Kavita Garg. The company currently runs four showrooms, one each at Kanpur, Bandha, Karvi and Farukabad. Additionally, the company has two sales extension counter at Ghatampur and Kayamganj also the company has ten workshops, five in Kanpur and one each in Bandha, Karvi, Ghatampur, Kayamganj and Farukabad. The company also has one dealership under Maruti True Value system in Kanpur and deals in spare parts and accessories manufactured by MSIL.
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About the Group |
The Group was established in the year 2000 by a leading business family of Kanpur, to provide for as a “One Stop” solution for sale, spare and service of Maruti-Suzuki products. Over the years the group has diversified into other ventures. The group’s business includes sales, spares and servicing of Maruti Suzuki vehicles, as well as of Tata commercial vehicles. The Group also offers extended service contracts. The group is also engaged in the business of purchase and sale of used vehicles under “True Value” brand of Maruti Suzuki India Ltd.
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Non-cooperation by the issuer/borrower |
Acuité has been requesting for the key informations for the rating purpose from the rated entity. However, the issuer / borrower failed to submit such information before 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.
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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 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.
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Rating Sensitivities |
No information provided by the issuer / available for Acuite to comment upon. |
Material Covenants |
None |
Liquidity Position |
No information provided by the issuer / available for Acuite to comment upon. |
Outlook |
Not Applicable |
Other Factors affecting Rating |
None |
Key Financials: |
The rated entity has not shared the latest financial statements for Acuite to comment. |
Status of non-cooperation with previous CRA |
Crisil vide its press release dated 27.3.2023, had reaffirmed the company to CRISIL B+/A4 (Stable); INC. |
Any other information |
Acuite is yet to receive the latest No Default Statement despite repeated requests and folowups. |
Applicable Criteria |
• 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
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Contacts |
Analytical | Rating Desk |
About Acuité Ratings & Research |
Acuité Ratings & Research Limited | www.acuite.in |