Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 42.68 Crs. of Spectra Industries Ltd based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (29 Sep 2020) |
Present | ||
Fund Based | 7.68 | 7.68 | Long Term |
BWR D
Downgrade/ISSUER NOT COOPERATING* |
BWR D
Reaffirmation/ISSUER NOT COOPERATING* |
Non Fund Based | 35.00 | 35.00 | Short Term |
BWR D
Downgrade/ISSUER NOT COOPERATING* |
BWR D
Reaffirmation/ISSUER NOT COOPERATING* |
(10.00) | (10.00) | ||||
Grand Total | 42.68 | 42.68 | (Rupees Forty Two Crores and Sixty Eight lakhs Only) |
The long term rating of the Bank Loan Facilities of the company has been reaffirmed based on the available information as the client has not submitted any information for ascertaining the financial risk profile/performance of the company. We have therefore continued the rating under the “Issuer Not Cooperating” category.
The rating was due for surveillance in September 2021. We have made regular follow up with the client, vide telephone calls and emails 03rd,15th and 30th September 2021. The client has not submitted an Audited Balance Sheet from FY18 onwards, NDS for the latest three months and other relevant documents for the review of rating. All our telephonic calls remained unresponded. BWR reached out to the banker vide email and calls dated 03rd, 15th and 30th September 2021, but received no response.
In the absence of adequate information from the issuer/banker, BWR is unable to assess the issuer’s/Company’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, Brickwork Ratings has reaffirmed the long term rating of the Bank Loan Facilities of the company at BWR D Issuer Not Cooperating as the company has defaulted in payment of its loans and the credit facilities with Banks and defaulted in payment of Statutory Dues which is still continued as per Annual Report of FY21. As the business activities was closed, the company has not earned a operating revenue in FY20 & FY21, as per information available from the public domain. It Incurred a Loss from FY18 onwards upto FY21. The Loss has reduced to Rs. -5.50 in FY21 as compared to Rs. -8.79 in FY20. EBITDA is negative from FY18 upto FY21. As per the quarterly updates, the total income for latest 5 quarters that is from June 2020 to June 2021 is “Zero”. EBIT for the quarter ended March 2020 to June 2021 is “Negative”. Net Profit after tax (PAT) for the quarter ended March 2020 to June 2021 is “Negative” because of closure of business operations.
LIMITATIONS OF THE RATING
Information availability risk is a key factor in the assessment of credit risk as generally, non cooperation by the rated entities to provide required information for a review of the assigned rating may also be accompanied by financial stress. Users of the credit ratings should therefore take into account the possible deterioration in the credit quality of the rated entity arising from its non- transparency and withholding of information required for a review of the rating.
ABOUT THE ENTITY( Information as on October 2017)
Spectra Industries Ltd (SIL) was incorporated in 1992 at Mumbai, Maharashtra. The Spectra Industries Ltd (SIL) is promoted by the Gupta family of Mumbai who has been in Manufacturing and Trading Business for the past four decades. The chairman of the company is Mr. Bharat Bhushan Gupta. The managing director of the company is Mr. Vinod Kumar Gupta & the executive director of the company is Mr. Jaidev Gupta. Initially, the company was in a Manufacturing of automobile sheet metal components for Fiat in Mumbai , However from 2010 SIL engaged in the dealership of heavy and light commercial vehicles manufactured by Mahindra & Mahindra Ltd. The Company also trades various items such as Fabrics, Steel, and coal. The dealership business is in Heavy Commercial Vehicles & Light Commercial Vehicles manufactured by Mahindra & Mahindra Ltd (Exclusive dealer for Entire Mumbai, Thane and Raigad District). The Company has set up the showroom for automobiles in ajivali village, Panvel and two workshops at Panvel and Mira road (east) Mumbai. The company currently sells around 400 vehicles this year.
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.
N.A
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 | 7.68 |
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*) |
NA |
NA
|
29Sep2020 |
BWR D
(Downgrade/ISSUER NOT COOPERATING*) |
02Jan2019 |
BWR BStable
(Downgrade/ISSUER NOT COOPERATING*) |
NA |
NA
|
Non Fund Based | ST | 35.00 |
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*) |
NA |
NA
|
29Sep2020 |
BWR D
(Downgrade/ISSUER NOT COOPERATING*) |
02Jan2019 |
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*) |
NA |
NA
|
NFB SubLimit | ST | (10.00) |
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
NA |
NA
|
Grand Total | 42.68 | (Rupees Forty Two Crores and Sixty Eight 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.
Hyperlink/Reference to applicable CriteriaAnalytical Contacts | |
---|---|
Shevya Agarwal Rating Analyst shevya.a@brickworkratings.com |
Sushil Kumar Chitkara Director - Ratings Board : +91 22 2831 1426, +91 22 2831 1439 sushilkumar.c@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 | Bank of India | Cash CreditSanctioned | 5.00 | _ | 5.00 |
2 | Bank of India | Letter of CreditSanctioned | _ | 30.00 | 30.00 |
Sub-Limit (Bank Guarantee) Sanctioned | (10.00) | ||||
3 | HDFC Bank | Term LoanSanctioned | 2.68 | _ | 2.68 |
4 | ICICI Bank | Inventory Funding FacilitySanctioned | _ | 5.00 | 5.00 |
Total | 7.68 | 35.00 | 42.68 | ||
TOTAL (Rupees Forty Two Crores and Sixty Eight 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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