Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 4.54 ACUITE B+ | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 7.75 - ACUITE A4 | Downgraded | Issuer not co-operating*
Total Outstanding 12.29 - -
 
Rating Rationale

Acuité has downgraded its long-term rating to ‘ACUITE B+’ (read as ACUITE B plus) from 'ACUITE BB-' (read as ACUITE Double B Minus) and short-term rating to 'ACUITE A4' (read as ACUITE A Four) from 'ACUITE A4+' (read as ACUITE A Four Plus) on the Rs. 12.29 crore bank facilities of ­Relicab Cable Manufacturing Limited (RCML).

Acuite had sent repeated reminders to the company for sharing critical information for surveillance of the ratings. But despite multiple requests, the company has remained non-cooperative in providing the information. The rating is now flagged as “Issuer Not-Cooperating” and is based on the best available information. The downgrade is on account of information risk.

About the Company
RCML incorporated in 2009, is a public limited company engaged into manufacturing and marketing of PVC Compounds, wires and cables used across industries like telecom, electrical, automotive and household appliances. The company is based out of Daman, Gujarat and it took over the running business of wires and cables manufacturing carried out since 1999 under the name of ‘M/s. Relicab Cable Corporation (Partnership concern). RCML is promoted by Mr. Suhir Hiralal Shah who possess an extensive experience of over two decades in the wires and cable industry.
 
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 rating is based.
 
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
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Other Factors affecting Rating
None
 

Particulars Unit FY 24 (Actual) FY 23 (Actual)
Operating Income Rs. Cr. 38.02 34.73
PAT Rs. Cr. 1.54 1.51
PAT Margin (%) 4.06 4.34
Total Debt/Tangible Net Worth Times 0.92 0.97
PBDIT/Interest Times 1.71 1.76
Status of non-cooperation with previous CRA
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
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
25 Apr 2023 Proposed Long Term Bank Facility Long Term 0.29 ACUITE BB- | Stable (Reaffirmed)
Letter of Credit Short Term 2.75 ACUITE A4+ (Reaffirmed)
Bank Guarantee (BLR) Short Term 5.00 ACUITE A4+ (Reaffirmed)
Cash Credit Long Term 4.25 ACUITE BB- | Stable (Reaffirmed)
01 Feb 2022 Bank Guarantee/Letter of Guarantee Short Term 5.00 ACUITE A4+ (Reaffirmed)
Cash Credit Long Term 4.25 ACUITE BB- | Stable (Reaffirmed)
Letter of Credit Short Term 2.75 ACUITE A4+ (Reaffirmed)
Proposed Long Term Bank Facility Long Term 0.29 ACUITE BB- | Stable (Reaffirmed)
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Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)		 Complexity Level Rating
Union Bank of India Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE A4 | Downgraded | Issuer not co-operating* ( from ACUITE A4+ )
Union Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 4.25 Simple ACUITE B+ | Downgraded | Issuer not co-operating* ( from ACUITE BB- )
Union Bank of India Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.75 Simple ACUITE A4 | Downgraded | Issuer not co-operating* ( from ACUITE A4+ )
Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.29 Simple ACUITE B+ | Downgraded | Issuer not co-operating* ( from ACUITE BB- )
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