|
|
| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 37.20 | ACUITE BB | Reaffirmed | Issuer not co-operating* | - |
| Bank Loan Ratings | 52.80 | - | ACUITE A4+ | Reaffirmed | Issuer not co-operating* |
| Total Outstanding | 90.00 | - | - |
|
Rating Rationale |
|
Acuité has reaffirmed a long term rating of ‘ACUITE BB’ (read as ACUITE double B) and the short-term rating of 'ACUITE A4+' (read as ACUITE A four plus) to the Rs 90.00 crore bank facilities of New Modern Technomech Private Limited (NMTPL). The rating is now flagged as “Issuer Not Cooperating” based on account of information risk.
Acuite had sent repeated reminders to the company for sharing critical information and documents for surveillance of the ratings; but, despite multiple requests; the company’s management has remained non-cooperative in providing any information. However, the banker has provided their feedback that the conduct of the account is satisfactory. |
| 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. Currently, the company has a production capacity of 40,000 MTPA for galvanised steel structures in Odisha. Additionally, it has an in-house heavy fabrication unit for manufacturing of PEB (Pre-engineered buildings and heavy engineering structures) with a production capacity of approximately 1000 MT per month.
|
| 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 |
|
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 ratings based.
|
| Rating Sensitivities |
|
"No information provided by the issuer / available for Acuite to comment upon." |
| All Covenants |
|
Not Applicable |
| Liquidity Position |
|
"No information provided by the issuer / available for Acuite to comment upon." |
| Outlook |
| Not Applicable |
| Other Factors affecting Rating |
| Not Applicable |
| Particulars | Unit | FY 22 (Actual) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 172.13 | 118.30 |
| PAT | Rs. Cr. | 3.06 | 2.29 |
| PAT Margin | (%) | 1.78 | 1.93 |
| Total Debt/Tangible Net Worth | Times | 0.65 | 0.63 |
| PBDIT/Interest | Times | 1.87 | 1.70 |
| Status of non-cooperation with previous CRA |
| Not Applicable |
| Any other information |
| Acuite is yet to recive the latest No Default Statement from the rated entity despite repeated requests and followups. |
| 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 • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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.
|
|
| |
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
|
Contacts |
|
|
|
About Acuité Ratings & Research |
