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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 11.07 | ACUITE BB+ | Downgraded & Withdrawn | Issuer not co-operating* | - |
| Bank Loan Ratings | 1.36 | Not Applicable | Withdrawn | - |
| Bank Loan Ratings | 12.50 | - | ACUITE A4+ | Downgraded & Withdrawn | Issuer not co-operating* |
| Total Outstanding | 0.00 | - | - |
| Total Withdrawn | 24.93 | - | - |
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Rating Rationale |
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Acuité has downgraded and withdrawn the long-term rating to "ACUITE BB+" (read as ACUITE double B plus) from "ACUITE BBB" (read as ACUITE triple B) and short-term rating to "ACUITE A4+" (read as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 Rs.23.57 Cr. bank loan facilities of Railfab Technologies Private Limited (Erstwhile Railfab). Further, Acuité has withdrawn the long-term rating on the Rs.1.36 Cr. bank facilities of Railfab Technologies Private Limited (Erstwhile Railfab) without assigning any rating as it is a proposed facility.
The rating has been withdrawn on account of the request received from the company along with no objection certificate(NOC) received from the lender as per Acuité's policy on withdrawal of ratings as applicable to the respective facility / instrument.
The rating is now flagged as “Issuer Not-Cooperating” and is based on best available information. The rating downgrade is on account of information risk. |
| About the Company |
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Kapurthala-based, Railfab Technologies Private Limited was established in 1994 by Mrs. Aruna Jain, Mrs. Meenu Jain, Mrs. Nalini Jain and Mr. Sahil Jain as a partnership firm. In 2019, the company changes its constitution from partnership firm to private limited company. Directors of the company are Mr. Mayank Jain, Mr. Nikhil Jain and Mr. Sahil Jain. The firm is engaged into the manufacturing of bio-toilets, under-carriage components, body shell components, among others, mainly for the Indian Railways at the Rail Coach Factory based at Kapurthala (Punjab), Rae Bareli (Uttar Pradesh) and Chennai (Tamil Nadu).
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| About the Group |
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The Railtech Group, promoted by a Punjab-based family, was established in 1990. The group manufactures bio-toilets, undercarriage components, body shell components, among others for Indian Railways at the Rail Coach Factories based at Kapurthala (Punjab), Rae Bareli (Uttar Pradesh) and Chennai (Tamil Nadu). These products are sold through the two major individual entities of the Railtech Group, i.e. ‘Railtech Technologies Private Limited’, ‘Railfab Technologies Private Limited’.
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| Unsupported Rating |
| Not Applicable |
| Non-cooperation by the issuer/borrower |
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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 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.
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| Limitation regarding information availability |
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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 rating is based.
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| Rating Sensitivities |
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No information provided by the issuer / available for Acuité to comment upon.
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| Liquidity Position |
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No information provided by the issuer / available for Acuité to comment upon.
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| Outlook |
| Not Applicable |
| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 23 (Actual) | FY 22 (Actual) |
| Operating Income | Rs. Cr. | 258.49 | 255.96 |
| PAT | Rs. Cr. | 6.55 | 6.87 |
| PAT Margin | (%) | 2.53 | 2.68 |
| Total Debt/Tangible Net Worth | Times | 0.91 | 0.98 |
| PBDIT/Interest | Times | 2.87 | 3.16 |
| Status of non-cooperation with previous CRA |
| Not Applicable |
| Any other information |
| None |
| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.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 |
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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
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| *Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||
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