Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 6.84 ACUITE B+ | Reaffirmed | Issuer not co-operating* -
Bank Loan Ratings 2.79 - ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 9.63 - -
 
Rating Rationale

­Acuité has reaffirmed long-term rating of ‘ACUITE B+’ (read as ACUITE B plus) and the short-term rating of 'ACUITE A4' (read as ACUITE A four) to the Rs. 9.63 crore bank facilities of Precitec Precision Machineries Private Limited (PPPL). The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.


About the Company

­Incorporated in 1978, Precitec Precision Machineries Private Limited (PPPL), a Bangalore (Karnataka) based company, is engaged in manufacture of special purpose machine tools includes CNC machines for metal cutting. The company was promoted by Mr. H K Sridhara. Currently, the company is led by Mr. HS Nikhila and Mr. Ravindra Sridhara (sons).PPPL mainly caters to automobile, auto components, power generation and earthmoving equipment's sectors.

 
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 has 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.

 
Rating Sensitivity

­"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

 
Other Factors affecting Rating

­Not Applicable

 

Particulars Unit FY 22 (Actual) FY 21 (Actual)
Operating Income Rs. Cr. 7.42 3.80
PAT Rs. Cr. 0.44 (1.54)
PAT Margin (%) 5.92 (40.62)
Total Debt/Tangible Net Worth Times 3.27 3.04
PBDIT/Interest Times 1.51 (1.12)
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
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.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
29 Apr 2022 Working Capital Demand Loan Long Term 1.50 ACUITE B+ ( Issuer not co-operating*)
Working Capital Term Loan Long Term 0.84 ACUITE B+ ( Issuer not co-operating*)
Proposed Bank Facility Short Term 0.39 ACUITE A4 ( Issuer not co-operating*)
Bank Guarantee Short Term 2.00 ACUITE A4 ( Issuer not co-operating*)
Cash Credit Long Term 4.50 ACUITE B+ ( Issuer not co-operating*)
Letter of Credit Short Term 0.40 ACUITE A4 ( Issuer not co-operating*)
19 Mar 2021 Letter of Credit Short Term 0.40 ACUITE A4 (Reaffirmed)
Working Capital Demand Loan Long Term 1.50 ACUITE B+ | Stable (Reaffirmed)
Proposed Bank Facility Short Term 0.39 ACUITE A4 (Reaffirmed)
Term Loan Long Term 0.10 ACUITE B+ (Withdrawn)
Cash Credit Long Term 4.50 ACUITE B+ | Stable (Reaffirmed)
Working Capital Term Loan Long Term 0.84 ACUITE B+ | Stable (Reaffirmed)
Bank Guarantee Short Term 2.00 ACUITE A4 (Reaffirmed)
13 Mar 2020 Term Loan Long Term 0.10 ACUITE B+ | Stable (Reaffirmed)
Cash Credit Long Term 4.50 ACUITE B+ | Stable (Reaffirmed)
Proposed Bank Facility Short Term 2.63 ACUITE A4 (Reaffirmed)
Bank Guarantee Short Term 2.00 ACUITE A4 (Reaffirmed)
Letter of Credit Short Term 0.40 ACUITE A4 (Reaffirmed)
Term Loan Long Term 0.06 ACUITE B+ (Withdrawn)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Canara Bank Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 2.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
Canara Bank Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 4.50 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*
Canara Bank Not Applicable Letter of Credit Not Applicable Not Applicable Not Applicable 0.40 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
Not Applicable Not Applicable Proposed Short Term Bank Facility Not Applicable Not Applicable Not Applicable 0.39 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
Canara Bank Not Applicable Working Capital Demand Loan (WCDL) Not available Not available Not available 1.50 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*
Canara Bank Not Applicable Working Capital Term Loan Not available Not available Not available 0.84 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*

Contacts
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About Acuité Ratings & Research

Acuité Ratings & Research Limitedwww.acuite.in