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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 4.75 | ACUITE BB | Downgraded | Issuer not co-operating* | - |
| Bank Loan Ratings | 5.25 | - | ACUITE A4+ | Reaffirmed | Issuer not co-operating* |
| Total Outstanding | 10.00 | - | - |
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Rating Rationale |
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Acuité has downgraded the long-term rating to 'ACUITE BB' (read as ACUITE Double B) from ‘ACUITE BB+’ (read as ACUITE Double B plus) on the Rs.4.75 Cr. bank facilities and reaffirmed the short-term rating to ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs.5.25 Cr. bank facilities of S and T Welcare Equipments Private Limited (STWPL).
The rating is now be flagged as “Issuer Not Cooperating” and is based on the best available information. The rating has been downgraded on account of information risk. |
| About the Company |
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Tamil Nadu based, S and T Welcare Equipments Private Limited (Erstwhile Shanthan Exports and Imports Private Limited) was incorporated in the year 1998 by Mr. Doraiswamy Shanmugasundaram and Mr. Palaniswamy Thangavel. The company is engaged in trading of fitness equipment under its own brandname 'Welcare'. The company has a pan India presence with 90 plus brand stores retail stores, franchises outlets and 80 plus dealers. The company also sells products through online platforms. The company also trades fitness equipment of other brands such as Steel Flex, Intenza, Sportop, First degree fitness and many more.
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| About the Group |
| Maxpro Amazing Equipments Private Limited was incorporated in FY 20 for catering the revenue through online platforms.The company is engaged in trading of fitness equipment. |
| Unsupported Rating |
| Not Applicable |
| Non-cooperation by the issuer/borrower |
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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 has also 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 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.
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| 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 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 |
| Particulars | Unit | FY 22 (Actual) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 83.98 | 73.45 |
| PAT | Rs. Cr. | 2.06 | 0.71 |
| PAT Margin | (%) | 2.46 | 0.96 |
| Total Debt/Tangible Net Worth | Times | 1.38 | 1.56 |
| PBDIT/Interest | Times | 4.35 | 2.48 |
| Status of non-cooperation with previous CRA |
| Not Applicable |
| Any other information |
| None |
| Applicable Criteria |
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• 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 • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Trading Entitie: https://www.acuite.in/view-rating-criteria-61.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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| *Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||
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