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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 8.00 | ACUITE BB- | Downgraded | Issuer not co-operating* | - |
| Total Outstanding | 8.00 | - | - |
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Rating Rationale |
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Acuité has downgraded its long-term rating to ‘ACUITE BB-' (read as ACUITE double B minus) from 'ACUITE BB' (read as ACUITE double B) on the Rs.8.00 Cr. bank loan facilities of Vijayshree Autocom Limited. The rating is now flagged as “Issuer Not-Cooperating” on account of information risk and is based on the best available information. The downgrade is on account of information risk.
Rationale for downgarde The team had sent repeated reminders to the Company for latest information; however, despite multiple requests; the Company’s management has not sent the required documents and are yet to submit the final latest documents for assigning the rating.
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| About the Company |
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Incorporated in 2010, VAL is a Kolkata-based company and is promoted by Mr. Devendra Kumar Mantri, Mrs. Tanuja Mantri and Mr. Shashankdhar Mantri. The company is engaged in manufacturing of automobile parts for commercial vehicles, exclusively, Tata Motors Limited. The automobile parts include fuel tanks, silencers spare, wheel carriers and engine cross members to name a few. The company has two manufacturing units which are in Jamshedpur (Jharkhand) and Howrah (West Bengal).
The manufacturing facilities of the two units include mechanical and hydraulic power presses, shearing machines, hydraulic riveting machines, welding shops including Mig, Arc, Seam, and Spot-welding equipment, 8 tank pre-treatment and phosphating facilities, powder coating facilities, conveyorized liquid paint shop, baking ovens, CNC pipe bending, CNC lathes, fully equipped tool rooms for manufacture and maintenance of dies and tools as well as adequate captive power capacities. |
| Unsupported Rating |
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Not Applicable
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| 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 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 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 rating is based.
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| Rating Sensitivities |
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No information provided by the issuer / available for Acuité to comment upon
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| Liquidity Position |
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No information provided by the issuer / available for Acuité 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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None
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| Particulars | Unit | FY 23 (Actual) | FY 22 (Actual) |
| Operating Income | Rs. Cr. | 139.09 | 121.97 |
| PAT | Rs. Cr. | 1.21 | 0.65 |
| PAT Margin | (%) | 0.87 | 0.54 |
| Total Debt/Tangible Net Worth | Times | 1.44 | 1.56 |
| PBDIT/Interest | Times | 2.96 | 2.65 |
| Status of non-cooperation with previous CRA |
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Not Applicable
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| Any other information |
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None
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| 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 |
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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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