Press Release January 07, 2025 SPARTAN ENGINEERING INDUSTRIES PRIVATE LIMITED Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	38.00	ACUITE D | Downgraded | Issuer not co-operating*	-
Bank Loan Ratings	14.00	-	ACUITE D | Downgraded | Issuer not co-operating*
Total Outstanding	52.00	-	-
Total Withdrawn	0.00	-	-
* The issuer did not co-operate; based on best available information.

Rating Rationale

Acuité has downgraded its long-term rating to 'ACUITE D' (read as ACUITE D) from 'ACUITE BB+' (read as ACUITE double B plus) and short-term rating to 'ACUITE D' (read as ACUITE D) from ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs.52.00 Cr. bank facilities of Spartan Engineering Industries Private Limited (SEIPL).  The downgrade is based on recent delays in debt servicing by the entity and account categorisation as 'Special Mention Account' (SMA) as intimated by one of the banker. Additionally, the company has not provided latest NDS (No Default Statements) for last 3 months consecutively.  The rating is now flagged as “Issuer Not-Cooperating” on account of information risk and is based on the best available information.

About the Company

­Mumbai-based Spartan Engineering Industries Private Limited (SEIPL), was incorporated in 1988. The company is engaged in the manufacturing and trading of construction equipment and machines. It sells products in India and abroad under various brands namely 'Spartan', 'Sky Plus', 'Elite Aviator' and 'Hercules'. The directors of the company are Mr. Mahendra Pranjivandas Mehta, Mr. Vikram Mahendra Mehta and Mrs. Hiral Vikram Mehta. SEIPL' manufacturing facility is located at Atgaon near Nashik.

Unsupported Rating

­Not Applicable.

Non-cooperation by the issuer/borrower

Acuité has been requesting for No Default Statements (NDS); however, despite multiple requests; the Company’s management has remained non-cooperative and not submitted the NDS for the preceding 03 consecutive months. 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 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.

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.

Key Financials

Particulars	Unit	FY 24 (Provisional)	FY 23 (Actual)
Operating Income	Rs. Cr.	210.77	176.95
PAT	Rs. Cr.	4.54	2.44
PAT Margin	(%)	2.15	1.38
Total Debt/Tangible Net Worth	Times	3.42	3.44
PBDIT/Interest	Times	1.67	1.64

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 • Trading Entitie: https://www.acuite.in/view-rating-criteria-61.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 30 Jul 2024 Letter of Credit Short Term 14.00 ACUITE A4+ (Reaffirmed) Term Loan Long Term 5.60 ACUITE BB+ | Stable (Reaffirmed) Term Loan Long Term 1.61 ACUITE BB+ | Stable (Reaffirmed) Cash Credit Long Term 28.00 ACUITE BB+ | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 2.79 ACUITE BB+ | Stable (Reaffirmed) 03 May 2023 Letter of Credit Short Term 14.00 ACUITE A4+ (Reaffirmed) Cash Credit Long Term 28.00 ACUITE BB+ | Stable (Reaffirmed) Term Loan Long Term 1.61 ACUITE BB+ | Stable (Reaffirmed) Term Loan Long Term 5.60 ACUITE BB+ | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 2.79 ACUITE BB+ | Stable (Reaffirmed) 24 Mar 2022 Letter of Credit Short Term 14.00 ACUITE A4+ (Reaffirmed) Term Loan Long Term 5.60 ACUITE BB+ | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 2.79 ACUITE BB+ | Stable (Reaffirmed) Cash Credit Long Term 28.00 ACUITE BB+ | Stable (Reaffirmed) Term Loan Long Term 1.61 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 Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 28.00 Simple ACUITE D | Downgraded | Issuer not co-operating* ( from ACUITE BB+ ) Bank of India Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 14.00 Simple ACUITE D | 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. 2.79 Simple ACUITE D | Downgraded | Issuer not co-operating* ( from ACUITE BB+ ) Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 30 Oct 2025 1.61 Simple ACUITE D | Downgraded | Issuer not co-operating* ( from ACUITE BB+ ) Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 30 Jul 2024 5.60 Simple ACUITE D | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )

* The issuer did not co-operate; based on best available information.

Contacts

Mohit Jain Senior Vice President - Rating Operations Dhruvi Chauhan 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.