|
|
| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 5.29 | ACUITE B+ | Downgraded & Withdrawn | Issuer not co-operating* | - |
| Bank Loan Ratings | 4.87 | Not Applicable | Withdrawn | - |
| Total Outstanding Quantum (Rs. Cr) | 0.00 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 10.16 | - | - |
| Rating Rationale |
|
Acuité has downgraded & withdrawn its long term rating to ‘ACUITE B+' (read as ACUITE B plus)’ from ACUITE BB- (read as ACUITE double B minus) on the Rs 5.29 crore bank facilities. The long term rating is withdrawn on Rs 4.87 crore bank facilities of VBC Hydraulics. The rating continues to be flagged as “Issuer Not Cooperating” and is based on best available information. The ratings are withdrawn on Acuite's policy of withdrawal of ratings, after receiving the company's request and NDC/NOC received from the banker. The rating has been downgraded on account of information risk. |
| About the Company |
| Established in 1995, VBC Hydraulics (VBC) is a Gujarat based proprietorship concern promoted by Mr. Bhavesh Shah. The firm is engaged in the manufacturing of hydraulic gear pumps and power pumps. The firm has its manufacturing facility located in Ahmadabad, Gujarat with an installed capacity to manufacture 700 pumps per day. |
| 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 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 ratingis based. |
| About the Rated Entity - Key Financials |
| The rated entity has not shared the latest financial statements for Acuite to comment. |
| Rating Sensitivity |
| "No information provided by the issuer / available for Acuite to comment upon." |
| Material Covenants |
| None |
| Liquidity Position |
| "No information provided by the issuer / available for Acuite to comment upon." |
| Outlook |
| Not Applicable |
| Other Factors affecting Rating |
| Not Applicable |
| Status of non-cooperation with previous CRA |
| None |
| Any other information |
| Acuite is yet to receive the latest No Default Statement from the rated entity despite repeated requests and followups. |
| Applicable Criteria |
|
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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 |
| 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 |
|
| |
|
|
||||||||||||||||||||||||||||||||||||
|
|
Contacts |
| Analytical | Rating Desk |
| About Acuité Ratings & Research |
