PR

Press Release
SIMPLEX CASTINGS LIMITED
October 26, 2022
Rating Reaffirmed and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	24.10	ACUITE D \| Reaffirmed \| Issuer not co-operating*	-
Bank Loan Ratings	26.50	-	ACUITE D \| Reaffirmed \| Issuer not co-operating*
Bank Loan Ratings	35.50	-	ACUITE A4 \| Reaffirmed \| Issuer not co-operating*
Bank Loan Ratings	45.95	ACUITE C \| Reaffirmed \| Issuer not co-operating*	-
Total Outstanding Quantum (Rs. Cr)	132.05	-	-
Total Withdrawn Quantum (Rs. Cr)	0.00	-	-

Rating Rationale

Acuité has reaffirmed the long term rating of ‘ACUITE D’ (read as ACUITE D) on Rs. 24.10 crore of bank facility and ‘ACUITE C’ (read as ACUITE C) on Rs.45.95 crore bank facility of Simplex Castings LImited. Acuite has also reaffirmed the short term rating of ‘ACUITE A4’ (read as ACUITE A four) on the Rs.35.50 crore and ‘ACUITE D’ (read as ACUITE D) on Rs.26.50 crore bank facilities of Simplex Castings Limited (SCL). The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.

About the Company

Simplex Castings Limited (SCL) a Mumbai based Company was established in 1970 as a partnership firm and was converted into a private limited company in 1980. In 1993, the company became a public limited company and was listed on the Bombay Stock Exchange (BSE). SCL manufactures iron and steel casting products and is also into turnkey project execution. SCL is catering to various industrial sectors like Steel, Railways, Power, Mining, Cement, Sugar, Chemicals, Earthmovers, Machines Tools, Ship Building, Oil & Gas & Defence, etc. The company has three manufacturing units, one each in Bhilai, Urla and Tedsara (Chhattisgarh). It is promoted by Om Patel And Ketan Shah.

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 noncooperation by the issuer along with an 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 endeavored 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.

About the Rated Entity - Key Financials

The rated entity has not shared the latest financial statements despite repeated requests.

Rating Sensitivity

"No information provided by the issuer / available for Acuite to comment upon."

Material Covenants

None.

Liquidity Position

"No information provided by the issuer / available for Acuite to comment upon."

Outlook

Not Applicable.

Other Factors affecting Rating

None.

Status of non-cooperation with previous CRA

None.

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

https://www.acuite.in/view-rating-criteria-55.htm

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
28 Jul 2021	Term Loan	Long Term	5.22	ACUITE C ( Issuer not co-operating*)
	Bank Guarantee	Short Term	10.50	ACUITE D ( Issuer not co-operating*)
	Letter of Credit	Short Term	16.00	ACUITE A4 ( Issuer not co-operating*)
	Term Loan	Long Term	4.10	ACUITE D ( Issuer not co-operating*)
	Cash Credit	Long Term	20.00	ACUITE D ( Issuer not co-operating*)
	Cash Credit	Long Term	35.00	ACUITE C ( Issuer not co-operating*)
	Term Loan	Long Term	5.73	ACUITE C ( Issuer not co-operating*)
	Letter of Credit	Short Term	16.00	ACUITE D ( Issuer not co-operating*)
	Bank Guarantee	Short Term	19.50	ACUITE A4 ( Issuer not co-operating*)
27 Apr 2020	Letter of Credit	Short Term	16.00	ACUITE A4 (Downgraded and Issuer not co-operating*)
	Bank Guarantee	Short Term	19.50	ACUITE A4 (Downgraded and Issuer not co-operating*)
	Cash Credit	Long Term	20.00	ACUITE D (Downgraded and Issuer not co-operating*)
	Term Loan	Long Term	5.73	ACUITE C (Downgraded and Issuer not co-operating*)
	Term Loan	Long Term	4.10	ACUITE D (Downgraded and Issuer not co-operating*)
	Cash Credit	Long Term	35.00	ACUITE C (Downgraded and Issuer not co-operating*)
	Bank Guarantee	Short Term	10.50	ACUITE D (Downgraded and Issuer not co-operating*)
	Letter of Credit	Short Term	16.00	ACUITE D (Downgraded and Issuer not co-operating*)
	Term Loan	Long Term	5.22	ACUITE C (Downgraded and Issuer not co-operating*)
13 Dec 2019	Letter of Credit	Short Term	32.00	ACUITE A4+ (Downgraded from ACUITE A3)
	Cash Credit	Long Term	55.00	ACUITE BB+ (Downgraded from ACUITE BBB- )
	Term Loan	Long Term	9.32	ACUITE BB+ (Downgraded from ACUITE BBB- )
	Bank Guarantee	Short Term	30.00	ACUITE A4+ (Downgraded from ACUITE A3)
	Term Loan	Long Term	5.73	ACUITE BB+ (Downgraded from ACUITE BBB- )
10 May 2019	Term Loan	Long Term	5.73	ACUITE BBB- (Issuer not co-operating*)
	Letter of Credit	Short Term	32.00	ACUITE A3 (Issuer not co-operating*)
	Cash Credit	Long Term	55.00	ACUITE BBB- (Issuer not co-operating*)
	Bank Guarantee	Short Term	30.00	ACUITE A3 (Issuer not co-operating*)
	Term Loan	Long Term	9.32	ACUITE BBB- (Issuer not co-operating*)
24 Apr 2018	Cash Credit	Long Term	55.00	ACUITE BBB- \| Stable (Assigned)
	Term Loan	Long Term	5.73	ACUITE BBB- \| Stable (Assigned)
	Term Loan	Long Term	9.32	ACUITE BBB- \| Stable (Assigned)
	Letter of Credit	Short Term	32.00	ACUITE A3 (Assigned)
	Bank Guarantee	Short Term	30.00	ACUITE A3 (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Bank of Baroda	Not Applicable	Bank Guarantee/Letter of Guarantee	Not Applicable	Not Applicable	Not Applicable	10.50	Simple	ACUITE D \| Reaffirmed \| Issuer not co-operating*
State Bank of India	Not Applicable	Bank Guarantee/Letter of Guarantee	Not Applicable	Not Applicable	Not Applicable	19.50	Simple	ACUITE A4 \| Reaffirmed \| Issuer not co-operating*
State Bank of India	Not Applicable	Cash Credit	Not Applicable	Not Applicable	Not Applicable	35.00	Simple	ACUITE C \| Reaffirmed \| Issuer not co-operating*
Bank of Baroda	Not Applicable	Cash Credit	Not Applicable	Not Applicable	Not Applicable	20.00	Simple	ACUITE D \| Reaffirmed \| Issuer not co-operating*
State Bank of India	Not Applicable	Letter of Credit	Not Applicable	Not Applicable	Not Applicable	16.00	Simple	ACUITE D \| Reaffirmed \| Issuer not co-operating*
Bank of Baroda	Not Applicable	Letter of Credit	Not Applicable	Not Applicable	Not Applicable	16.00	Simple	ACUITE A4 \| Reaffirmed \| Issuer not co-operating*
State Bank of India	Not Applicable	Term Loan	Not available	Not available	Not available	5.73	Simple	ACUITE C \| Reaffirmed \| Issuer not co-operating*
Bank of Baroda	Not Applicable	Term Loan	Not available	Not available	Not available	4.10	Simple	ACUITE D \| Reaffirmed \| Issuer not co-operating*
State Bank of India	Not Applicable	Term Loan	Not available	Not available	Not available	5.22	Simple	ACUITE C \| Reaffirmed \| Issuer not co-operating*

Contacts

Analytical	Rating Desk
Pooja Ghosh Vice President-Rating Operations Tel: 022-49294041 pooja.ghosh@acuite.in Abhishek Singh Analyst-Rating Operations Tel: 022-49294065 abhishek.s@acuite.in	Varsha Bist Senior Manager-Rating Operations Tel: 022-49294011 rating.desk@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.