Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 9.05 ACUITE BB | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 4.00 - ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Total Outstanding 13.05 - -
Total Withdrawn 0.00 - -
* The issuer did not co-operate; based on best available information.
 
Rating Rationale

­Acuité has downgraded its long-term rating to ‘ACUITE BB’ (read as ACUITE double B) from ‘ACUITE BB+’ (read as ACUITE double B plus) on the Rs. 9.05 Cr. and reaffirmed its short-term rating of  ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs.4.00 Cr. bank facilities of Paramount Powders Private Limited (PPPL).
The rating downgrade is based on non-submission of NDS for 03 consecutive months.The rating is now flagged as “Issuer Not-Cooperating” on account of information risk and is based on the best available information.

About the Company
­Based in Delhi, Paramount Powders Private Limited (PPPL) is established in 1997 and is managed by Mr. Tarlochan Singh Badyal and Mr. Manish Jain. The company is engaged in the manufacturing of polyurethanes and thermosetting powder coating.
 
Unsupported Rating
­Not applicable
 
Non-cooperation by the issuer/borrower
­Acuité has been requesting for No Default Statements (NDS); however, despite multiple requests; the Company’s management has remained non-cooperative and not submitted the NDS for the preceding 03 consecutive months. 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
Rating Sensitivities
­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.
 
Outlook: Not applicable
­
 
Other Factors affecting Rating
­None
 

Particulars Unit FY 24 (Actual) FY 23 (Actual)
Operating Income Rs. Cr. 86.92 86.13
PAT Rs. Cr. 1.51 0.93
PAT Margin (%) 1.74 1.09
Total Debt/Tangible Net Worth Times 0.56 0.58
PBDIT/Interest Times 4.98 3.68
Status of non-cooperation with previous CRA
­Not Applicable 
 
Interaction with Audit Committee anytime in the last 12 months (applicable for rated-listed / proposed to be listed debt securities being reviewed by Acuite)
Not applicable
Any other information
­None
 
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

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
13 Nov 2024 Letter of Credit Short Term 4.00 ACUITE A4+ (Reaffirmed)
Proposed Long Term Bank Facility Long Term 1.05 ACUITE BB+ | Stable (Reaffirmed)
Cash Credit Long Term 8.00 ACUITE BB+ | Stable (Reaffirmed)
18 Aug 2023 Letter of Credit Short Term 4.00 ACUITE A4+ (Reaffirmed)
Cash Credit Long Term 8.00 ACUITE BB+ | Stable (Reaffirmed)
Proposed Long Term Bank Facility Long Term 1.05 ACUITE BB+ | Stable (Reaffirmed)
27 May 2022 Letter of Credit Short Term 4.00 ACUITE A4+ (Reaffirmed)
Cash Credit Long Term 8.00 ACUITE BB+ | Stable (Reaffirmed)
Proposed Long Term Bank Facility Long Term 1.05 ACUITE BB+ | Stable (Reaffirmed)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
Kotak Mahindra Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 8.00 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
Kotak Mahindra Bank Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 4.00 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.05 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
* The issuer did not co-operate; based on best available information.
­

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