Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
Rating Rationale
Acuité has downgraded its long-term rating to ‘ACUITE D’ (read as ACUITE D) from ‘ACUITE B+’ (read as ACUITE B plus) on the Rs.29.12 Cr. bank facilities of Suria Steeltech Private Limited (erstwhile TMS Engineers Private Limited) (SSPL).
Further, Acuité has downgraded its long-term bank facility rating to ‘ACUITE C’ (read as ACUITE C) from ‘ACUITE B+’ (read as ACUITE B plus) on the Rs.15.88 Cr. proposed long term bank facility of Suria Steeltech Private Limited (erstwhile TMS Engineers Private Limited) (SSPL).
Rationale for rating downgrade
The downgrade is on account of lender's written feedback confirming the delays in debt servicing in the term loan account and categorization of the account as SMA1.
About the Company
Incorporated in 2013, Suria Steeltech Private Limited (SSPL) (erstwhile TMS Engineers Private Limited) is a Pune-based company engaged in the manufacturing of automobile parts and execution of works contracts, offering a diverse product line that includes boiler structures, ducting systems, column beam bracing, and other precision-engineered solutions. The present directors of the company are Mr. Eknath Raosaheb Pawar and Mrs. Aishwarya Nikhil Shinde.
Unsupported Rating
Not Applicable
Analytical Approach
Acuité has considered the standalone financial and business risk profile of SSPL to arrive at the rating.
Key Rating Drivers
Strengths
Established track record along with experienced management
The management of the company has over a decade of experience in this line of business. The company is currently led by Mr. Tanaji Sampatrao Kadam, Mr. Laxman Pandurang Kokale, Mr. Eknath Raosaheb Pawar and Ms. Aishwarya Eknath Pawar. The experience of the management has helped the company to maintain a longstanding relationship with its customers and suppliers.
Weaknesses
Instance of delay in servicing of debt obligation
Instances of delays in debt servicing in term loan account and categorization of the account as SMA1, confirmed from the written feedback received from the lender.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Timely servicing of debt obligations
Potential triggers (individual or collective) for a downward rating action:
Not applicable, as the issuer has already defaulted on the rated facility, which pertains to the only bank facility currently rated by Acuité.
Liquidity Position
Stretched
The company's liquidity position is marked stretched due to instances of delays in servicing of debt obligation as confirmed from the lender's written feedback.
Outlook: Not Applicable
Other Factors affecting Rating
None
Particulars
Unit
FY 25 (Actual)
FY 24 (Actual)
Operating Income
Rs. Cr.
36.55
23.15
PAT
Rs. Cr.
(2.41)
(9.03)
PAT Margin
(%)
(6.59)
(39.00)
Total Debt/Tangible Net Worth
Times
(12.95)
(27.97)
PBDIT/Interest
Times
1.13
0.27
Status of non-cooperation with previous CRA (if applicable)
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
Contacts
List of instruments and names of regulators of the instruments
