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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 10.00 | ACUITE BB+ | Reaffirmed | Issuer not co-operating* | - |
| Bank Loan Ratings | 35.25 | - | ACUITE A4+ | Reaffirmed | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 45.25 | - | - |
| Rating Rationale |
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Acuité has reaffirmed the long-term rating of ‘ACUITE BB+’ (read as ACUITE double B plus) and the short-term rating of ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs. 45.25 crore bank facilities of Subray Catal Chem Private Limited (SCCPL). The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.
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| About the Company |
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Subray Catal Chem Private Limited (SCCPL) was incorporated in 1988 in Mumbai by Mr. Subray Hosmane and Mrs. Veena Hosmane. It is engaged in manufacturing of metallic Sterates, Lubricants Lub Wax and one pack PVC stabilizers.
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| About the Group |
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Thane based Lalitha Group was established in the year 1978 by Hosamane family. The chief promoters of this Group are Mr. Subray S Hosamane and Mrs. Veena Hosamane. Lalitha Chem Industries Private Limited, ALA Chemicals Private Limited and Subray Catal Chem Private Limited together form the Lalitha Group (LG). This group is engaged into manufacturing of organic and inorganic chemicals like PVC Plasticizers, CPVC Compounds, Calcium Zinc Stabilizers, Tin Stabilizers for PVC, Metallic Stearates, Lubricants etc., which are used in the irrigation and infra industries mainly which is contributing more than 90% of its revenue. The group is in the business for the past four decades.
The group’s marketing and plant operations are managed by Mr. Subray S Hosamane with the support of team of people and the finance, administration and other activities are looked after by the CFO of the Group. |
| 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 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: |
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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 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.
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| Rating Sensitivity |
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"No information provided by the issuer / available for Acuite to comment upon."
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| All Covenants |
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Not Applicable
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| Liquidity Position |
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"No information provided by the issuer / available for Acuite to comment upon."
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| Outlook |
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Not Applicable
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| Other Factors affecting Rating |
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Not Applicable
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| Particulars | Unit | FY 22 (Actual) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 436.63 | 424.45 |
| PAT | Rs. Cr. | 17.64 | 12.22 |
| PAT Margin | (%) | 4.04 | 2.88 |
| Total Debt/Tangible Net Worth | Times | 1.08 | 0.38 |
| PBDIT/Interest | Times | 4.93 | 3.41 |
| Status of non-cooperation with previous CRA |
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None
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| Any other information |
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Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups.
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| Applicable Criteria |
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• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Trading Entities: https://www.acuite.in/view-rating-criteria-61.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 • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.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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