Press Release November 29, 2024 RELICAB CABLE MANUFACTURING LIMITED Rating Reaffirmed and Withdrawn

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	4.25	ACUITE B+ | Reaffirmed & Withdrawn	-
Bank Loan Ratings	0.29	Not Applicable | Withdrawn	-
Bank Loan Ratings	7.75	-	ACUITE A4 | Reaffirmed & Withdrawn
Total Outstanding	0.00	-	-
Total Withdrawn	12.29	-	-

Rating Rationale

Acuité has reaffirmed and withdrawn the long-term rating of ‘ACUITE B+’ (read as ACUITE B plus) and the short-term rating of ‘ACUITE A4’ (read as ACUITE A four) on the Rs. 12.00 Cr. bank facilities of Relicab Cable Manufacturing Limited (RCML). Further, Acuité has also withdrawn its long-term rating on Rs 0.29 crore proposed bank facilities of Relicab Cable Manufacturing Limited without assigning any rating as it is a proposed facility. The withdrawal is in accordance with Acuite's policy on withdrawal of rating as applicable to the respective facility / instrument. The rating is being withdrawn on account of request received from the company, and NOC (No Objection Certificate) received from the banker. Rationale for rating reaffirmation The rating reaffirmation of RCML takes into account the company’s stable operational performance in FY24. It also draws comfort from the company’s experienced management with an established track record of operations and its reputed clientele. The rating is however constrained by the RCML’s moderately intensive working capital operations and the average financial risk profile of the company.

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).

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone view of the business and financial risk profile of RCML to arrive at the rating.

Key Rating Drivers

Strengths

Experienced management with an established track record of operations RCML has an operational track record of nearly two decades. It is promoted by Mr. Suhir Hiralal Shah who possess an extensive experience of over two decades in the wires and cable industry. He is supported by other directors Ms. Vijaya More, Mr. Rajesh Gor and Mr. Mushtaque Khan who possess nearly a decade of experience in the same industry. The promoter and directors are being supported by its team of experienced professionals in managing day to day operations of RCML. The extensive experience of the management has enabled RCML to establish a healthy relationship with its reputed clienteles like ABB India, Schneider Electric, Crompton Greaves, Bharat Bijlee, Siemens, Maktel Control & Systems amongst others. Stable operating performance The revenue of the company stood increased at Rs. 38.02 crore in FY24 compared to revenue of Rs.34.73 crore in FY23. The revenue of the company increased in FY24 on account of significant increase in the orders from both domestic and export markets for the manufacturing of PVC compounds, wires and cables which are useful across industries like telecom, electrical, automotive and household appliances. The operating profit margin of the company stood improved at 11.55 percent in FY24 compared against 10.64 percent in FY23. The PAT margin of the company stood at 4.06 percent in FY24 compared to 4.34 percent in FY23.

Weaknesses

Average financial risk profile Relicab Cable Manufacturing Limited has an average financial risk profile marked by modest net worth, moderate gearing and average debt protection metrics. RCML’s net worth stood marginally improved to Rs. 11.89 crore as of March 31, 2024 against Rs. 10.92 crore as of March 31, 2023, on account of accretion of profits to reserves. The company’s gearing stood at 0.92 times as on March 31, 2024 as against 0.97 times as on March 31, 2023. The company’s total debt as on March 31, 2024 stood at Rs. 10.93 crore as compared to Rs. 10.62 crore as on March 31, 2023; Long-term debt of Rs. 0.18 crore, short-term debt of Rs. 4.23 crore and Unsecured loans from promoters/directors of Rs. 6.23 crore. TOL/TNW stood at 1.85 times as on March 31, 2024. The interest coverage ratio of the company stood at 1.71 times in FY24 against 1.76 times in FY23. DSCR stood at 1.48 times in FY2024 against 1.52 times in FY2023. Working capital intensive operations Relicab Cable Manufacturing Limited has moderately intensive working capital operations with average gross current asset (GCA) days standing over 267 days during FY22 to FY24. GCA days marginally decreased and stood at 248 days in FY2024 against 287 days in FY2023. The GCA Days stood higher due to the elongated inventory levels of the company. Inventory days stood at 164 days in FY2024 against 165 days in FY2023 as the company tends to manufacture and store wires and cables and then sell as and when demand is raised. The debtor days stood lower at 97 days for FY24 against 115 days for FY23. The average credit period allowed to the customers is around 90-120 days. The creditor days of the company stood at 128 days for FY24 as against 170 days for FY23. The average credit period allowed by the suppliers is around 90-120 days.

Rating Sensitivities

Not applicable

Liquidity Position

Adequate

Liquidity is adequately backed by RCML’s net cash accruals, which stood at Rs. 1.74 Cr. as on March 31, 2024, against maturing debt repayment obligation of Rs. 0.28 Cr. for the same period. The cash and bank balances of the company stood at Rs. 0.03 Cr. as on March 31, 2024. The current ratio stood at 1.85 times as on March 31, 2024. The working capital operations of the company are moderately intensive marked by its gross current asset (GCA) days of 248 days for FY2024 as against 287 days for FY2023.

Outlook: Not Applicable

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Other Factors affecting Rating

None.

Key Financials

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 (if applicable)

Not Applicable.

Any other information

None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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.

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 17 Jul 2024 Letter of Credit Short Term 2.75 ACUITE A4 (Downgraded & Issuer not co-operating* from ACUITE A4+) Bank Guarantee (BLR) Short Term 5.00 ACUITE A4 (Downgraded & Issuer not co-operating* from ACUITE A4+) Proposed Long Term Bank Facility Long Term 0.29 ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB- | Stable) Cash Credit Long Term 4.25 ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB- | Stable) 25 Apr 2023 Letter of Credit Short Term 2.75 ACUITE A4+ (Reaffirmed) Bank Guarantee (BLR) Short Term 5.00 ACUITE A4+ (Reaffirmed) Proposed Long Term Bank Facility Long Term 0.29 ACUITE BB- | Stable (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) Letter of Credit Short Term 2.75 ACUITE A4+ (Reaffirmed) Cash Credit Long Term 4.25 ACUITE BB- | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 0.29 ACUITE BB- | Stable (Reaffirmed)

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Annexure - Details of instruments rated

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 | Reaffirmed & Withdrawn 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+ | Reaffirmed & Withdrawn 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 | Reaffirmed & Withdrawn 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 Not Applicable|Withdrawn

Contacts

Mohit Jain Senior Vice President - Rating Operations Dheeraj Salian Associate Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai. Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating. Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.