Brickwork Ratings downgraded the long term rating reaffirms the short term rating for the Bank Loan Facilities of Rs. 22.06 Crs. of Vamshi Rubber Ltd based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (21 May 2020) |
Present | ||
Fund Based | 19.06 | 19.06 | Long Term |
BWR B+ ISSUER NOT COOPERATING/Stable
Downgrade/ISSUER NOT COOPERATING* |
BWR B -
/Stable Downgrade/ISSUER NOT COOPERATING* |
Non Fund Based | 3.00 | 3.00 | Short Term |
BWR A4 ISSUER NOT COOPERATING
Reaffirmation/ISSUER NOT COOPERATING* |
BWR A4
Reaffirmation/ISSUER NOT COOPERATING* |
Grand Total | 22.06 | 22.06 | (Rupees Twenty Two Crores and Six lakhs Only) |
Brickwork Ratings downgraded the long term rating and reaffirmed the short term rating for the bank loan facilities of Rs. 22.06 Crs. of Vamshi Rubber Ltd. to BWR B- (Stable)/A4 ISSUER NOT COOPERATING, based on best available information. BWR has rated the bank loan facilities of Vamshi Rubber Ltd. in May 2020 and assigned BWR B+(Stable)/A4 ISSUER NOT COOPERATING.
BWR took up with the issuer to provide required complete information over email and call. Despite the best efforts of BWR to get at least the minimum required information for a review, the Company has not provided the same. In the absence of adequate information from the issuer, BWR is unable to assess the issuer’s financial performance and its ability to service its debt and maintain a valid rating. Hence on account of inadequate information and lack of management cooperation, BWR recommends placing the rating under the category of ISSUER NOT COOPERATING.
The lenders/investors may note to exercise due caution while using the above ratings which mentions ‘ISSUER NOT COOPERATING’ since the ratings lack any projections or forward looking component as it is arrived based on the best available information on the Company without any management/banker’s interaction.
LIMITATIONS OF THE RATING
Information availability risk is a key factor in the assessment of credit risk as generally, noncooperation by the rated entities to provide required information for a review of the assigned rating may also be accompanied by financial stress.
ABOUT THE ENTITYEstablished in 1994 at Hyderabad, Vamshi Rubber Ltd (VRL) is engaged in the business of manufacturing PCTR (Pre-cured tread rubber), cushion gum, vulcanising solution, and curing envelopes used to retread tires. VRL is listed on the Bombay Stock Exchange. The Company caters to the tyre retreading material manufacturing industry and is ISO 9001-2008 certified. VRL's manufacturing plant has an annual production capacity of 4600 MT of Precured Tread Rubber, 300 MT of Cushion Gum, 150 KL of Vulcanizing Solution and 12,000 of Envelopes. Mr. R Surendra Reddy is the Managing director. Mr M. Ramesh Reddy, Mr. P Varun Kumar and Mr. K. V. Sarma are the other Directors.
Please refer to the following link for the previous detailed rationale that captures the Key Financials Drivers and their Description, Liquidity Position. Rating Sensitivities, Key Financial Indicators.
CRISIL B (Stable)/ A4 ISSUER NOT COOPERATING
RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)Facilities | Current Rating (2021) | 2021 (History) | 2020 | 2019 | 2018 | ||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating | Date | Rating |
Fund Based | LT | 19.06 |
BWR B-/Stable
(Downgrade/ISSUER NOT COOPERATING*) |
NA |
NA
|
21May2020 |
BWR B+ ISSUER NOT COOPERATINGStable
(Downgrade/ISSUER NOT COOPERATING*) |
NA |
NA
|
NA |
NA
|
Non Fund Based | ST | 3.00 |
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*) |
NA |
NA
|
21May2020 |
BWR A4 ISSUER NOT COOPERATING
(Reaffirmation/ISSUER NOT COOPERATING*) |
NA |
NA
|
NA |
NA
|
Grand Total | 22.06 | (Rupees Twenty Two Crores and Six lakhs Only) |
BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.
Analytical Contacts | |
---|---|
Dimple Nathalal Bhut Ratings Analyst Board : +91 80 4040 9940 dimple.b@brickworkratings.com |
Nagaraj K Associate Director - Ratings Board : +91 80 4040 9940 nagaraj.ks@brickworkratings.com |
1-860-425-2742 | media@brickworkratings.com |
SL.No. | Name of the Bank/Lender | Type Of Facilities | Long Term(Rs.Crs.) | Short Term(Rs.Crs.) | Total(Rs.Crs.) |
---|---|---|---|---|---|
1 | State Bank Of India (SBI) | Cash CreditSanctioned | 17.00 | _ | 17.00 |
2 | State Bank Of India (SBI) | Term LoanOut-standing | 2.06 | _ | 2.06 |
3 | State Bank Of India (SBI) | Bank GuaranteeSanctioned | _ | 3.00 | 3.00 |
Total | 19.06 | 3.00 | 22.06 | ||
TOTAL (Rupees Twenty Two Crores and Six lakhs Only) |
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About Brickwork RatingsBrickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. BWR has rated over 11,400 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partner. BWR has its corporate office in Bengaluru and a country-wide presence with its offices in Ahmedabad, Chandigarh, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi along with representatives in 150+ locations.
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