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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 26.90 | ACUITE BB+ | Reaffirmed | Issuer not co-operating* | - |
| Bank Loan Ratings | 3.10 | - | ACUITE A4+ | Reaffirmed | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 30.00 | - | - |
| Rating Rationale |
| Acuité has reaffirmed its long term rating to ‘ACUITE BB+' (read as ACUITE double B plus)’ & short term rating to ACUITE A4+ ‘(read as ACUITE A four plus)’on the Rs 30.00 crore bank facilities of UI VR Private Limited. This rating is now an indicative rating and is based on best available information and is on account of information risk . |
| About the Company |
| The company was originally set up as a partnership firm under the name of M/s Electrochem Industries by Shri Rajendra Patel, a technocrat entrepreneur, in the year 1988 with a small capacity of 10 TPM/120 TPA of Persulfates at Odhav. In 1998 Shri Viral Patel, son of Shri Rajendra Patel joined the business and the capacity of the plant was augmented to 60TPM in the year 2000. In the year 2001 the new company VR Persulfates Private Limited (VRP) was incorporated effectively to continue the existing running business of the firm in the hands of company. In the year 2005 VRP was made operational when it set up a new plant at its present location at Changodar on Ahmedabad-Rajkot Highway. In 2018 the company VRP entered into a joint venture with United initiators holding gmbh,which is a german company and was named as UI VR Private limited. The directors of the company are Mr. Rajendra C Patel, Mr. Viral Rajendra Patel, Andreas Gerhard Rutsch, and Mr. Eduard Hoozemans. |
| 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 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 endeavoured 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 ratingis based. |
| Rating Sensitivities |
| "No information provided by the issuer / available for Acuite to comment upon." |
| All Covenants |
| Not Applicable |
| Liquidity Position |
| "No information provided by the issuer / available for Acuite to comment upon." |
| Outlook |
| Not Applicable |
| Other Factors affecting Rating |
| Not Applicable |
| Particulars | Unit | FY 22 (Actual) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 56.78 | 35.59 |
| PAT | Rs. Cr. | 4.25 | 2.17 |
| PAT Margin | (%) | 7.48 | 6.09 |
| Total Debt/Tangible Net Worth | Times | 0.85 | 1.28 |
| PBDIT/Interest | Times | 5.14 | 3.24 |
| Status of non-cooperation with previous CRA |
| Not Applicable |
| 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 |
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• 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 |
| 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. |
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