* The issuer did not co-operate; based on best available information.
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
Rating Rationale
Acuité has downgraded the long-term rating to ‘ACUITE C’ (read as ACUITE C) from ‘ACUITE BB-’ (read as ACUITE double B minus) and the short-term to ‘ACUITE A4’ (read as ACUITE A four) from ‘ACUITE A4+’ (read as ACUITE A Four plus) on the Rs.90.00 Cr. bank facilities of New Modern Technomech Private Limited on account of information risk.
The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.
Rationale for Downgrade
The rating downgraded is based on the Issuer’s name appearing in the public domain record. New Modern Technomech Private Limited had guaranteed the loan facility of Sarangi Metal Works International Private Limited.
Sarangi Metal Works International Private Limited was declared NPA, and New Modern Technomech Private Limited in the capacity of a guarantor, failed to pay the dues of the principal and interest.
About the Company
Incorporated in 1998, New Modern Technomech Private Limited (NMTPL) is promoted by the Sarangi family of Odisha. NMTPL is engaged in manufacturing of transmission line towers, substation(s), OHE’s specialised fabricated & galvanised structures, pre-engineered & heavy engineering fabricated structures and is also involved in EPC. Moreover, NMTPL has extended the scope of operations to include manufacturing of solar tracker and exports the same to U.S.A., Malaysia and China.
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
Rating Sensitivity
Potential triggers (individual or collective) for an upward rating action:
"No information provided by the issuer / available for Acuite to comment upon."
Potential triggers (individual or collective) for a downward rating action:
"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."
ACUITE A4+
(Reaffirmed & Issuer not co-operating*)
Stand By Line of Credit
Short Term
2.80
ACUITE A4+
(Reaffirmed & Issuer not co-operating*)
Cash Credit
Long Term
28.00
ACUITE BB-
(Downgraded & Issuer not co-operating* from ACUITE BB)
Working Capital Demand Loan (WCDL)
Long Term
9.20
ACUITE BB-
(Downgraded & Issuer not co-operating* from ACUITE BB)
08 Dec 2023
Bank Guarantee/Letter of Guarantee
Short Term
50.00
ACUITE A4+
(Reaffirmed & Issuer not co-operating*)
Stand By Line of Credit
Short Term
2.80
ACUITE A4+
(Reaffirmed & Issuer not co-operating*)
Cash Credit
Long Term
28.00
ACUITE BB
(Reaffirmed & Issuer not co-operating*)
Working Capital Demand Loan (WCDL)
Long Term
9.20
ACUITE BB
(Reaffirmed & Issuer not co-operating*)
* The issuer did not co-operate; based on best available information.
Lender’s Name
ISIN
Facilities
Listing Status
Regulated By
Date Of Issuance
Coupon Rate
Maturity Date
Quantum (Rs. Cr.)
Complexity Level
Rating
State Bank of India
Not avl. / Not appl.
Bank Guarantee/Letter of Guarantee
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
50.00
Simple
ACUITE A4 | Downgraded | Issuer not co-operating* ( from ACUITE A4+ )
State Bank of India
Not avl. / Not appl.
Cash Credit
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
28.00
Simple
ACUITE C | Downgraded | Issuer not co-operating* ( from ACUITE BB- )
State Bank of India
Not avl. / Not appl.
Stand By Line of Credit
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
2.80
Simple
ACUITE A4 | Downgraded | Issuer not co-operating* ( from ACUITE A4+ )
State Bank of India
Not avl. / Not appl.
Working Capital Demand Loan (WCDL)
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
9.20
Simple
ACUITE C | Downgraded | Issuer not co-operating* ( from ACUITE BB- )
* The issuer did not co-operate; based on best available information.
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
