Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 3.56 ACUITE BB+ | Downgraded & Withdrawn | Issuer not co-operating* -
Bank Loan Ratings 15.50 - ACUITE A4+ | Downgraded & Withdrawn | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 0.00 - -
Total Withdrawn Quantum (Rs. Cr) 19.06 - -
 
Rating Rationale
­Acuité has Downgraded and Withdrawn the long term rating to ‘ACUITE BB+’ (Read as ACUITE double B plus)  from ‘ACUITE BBB’ (Read as ACUITE triple B) and short term rating to ‘ACUITE A4+’ (Read As ACUITE A four plus)  from ‘ACUITE A3+’ (Read As ACUITE A three plus) on the Rs 19.06 crore bank facilities of Pal Shellcast Private Limited. The rating is being withdrawn on account of request received from the company and NOC received from the banker. The rating is an indicative rating. The downgrade is on account of information risk.

About the Company
­Pal Shellcast Private Limited (PSPL), incorporated in 1981 is an Ahmedabad based company. Mr. Hardevsingh Gurubaxsingh Dhingra is the promoter of the company. It is engaged in the manufacturing of cylinder liners, blocks and sleeves. The components manufactured by the company are majorly used in tractors and other vehicles. The company derives around 84% of revenue from the sale of cylinder liner and remaining from sale of blocks and sleeves. The company has 6 manufacturing units, located at GIDC, Odhav and Changodhar with an aggregate installed capacity of 40,928 tons.
 
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.
 
Material Covenants
­Not Applicable
 
Liquidity Position
­No information provided by the issuer / available for Acuite to comment upon.
 
Outlook: ­Not Applicable
­
 

Particulars Unit FY 22 (Actual) FY 21 (Actual)
Operating Income Rs. Cr. 213.23 174.72
PAT Rs. Cr. 2.72 2.81
PAT Margin (%) 1.28 1.61
Total Debt/Tangible Net Worth Times 1.23 1.13
PBDIT/Interest Times 7.12 8.09
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
• 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.
 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
17 Oct 2022 Term Loan Long Term 3.56 ACUITE BBB | Stable (Reaffirmed)
Bank Guarantee Short Term 3.50 ACUITE A3+ (Reaffirmed)
Packing Credit Short Term 12.00 ACUITE A3+ (Reaffirmed)
13 Aug 2021 Bank Guarantee Short Term 3.50 ACUITE A3+ (Reaffirmed)
Packing Credit Short Term 11.00 ACUITE A3+ (Reaffirmed)
Term Loan Long Term 4.56 ACUITE BBB | Stable (Reaffirmed)
06 Aug 2021 Term Loan Long Term 3.29 ACUITE BBB | Stable (Reaffirmed)
Packing Credit Short Term 10.00 ACUITE A3+ (Reaffirmed)
Proposed Bank Facility Long Term 1.17 ACUITE BBB | Stable (Reaffirmed)
Bank Guarantee Short Term 2.25 ACUITE A3+ (Reaffirmed)
09 Oct 2020 Term Loan Long Term 2.00 ACUITE BBB | Stable (Reaffirmed)
Proposed Bank Facility Long Term 2.46 ACUITE BBB | Stable (Reaffirmed)
Packing Credit Short Term 10.00 ACUITE A3+ (Reaffirmed)
Bank Guarantee Short Term 2.25 ACUITE A3+ (Reaffirmed)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Central Bank of India Not Applicable Bank Guarantee/Letter of Guarantee Not Applicable Not Applicable Not Applicable 3.50 Simple ACUITE A4+ | Downgraded & Withdrawn | Issuer not co-operating*
Central Bank of India Not Applicable PC/PCFC Not Applicable Not Applicable Not Applicable 12.00 Simple ACUITE A4+ | Downgraded & Withdrawn | Issuer not co-operating*
Central Bank of India Not Applicable Term Loan Not available Not available Not available 3.56 Simple ACUITE BB+ | Downgraded & Withdrawn | Issuer not co-operating*

Contacts
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About Acuité Ratings & Research
Acuité Ratings & Research Limitedwww.acuite.in