Brickwork Ratings downgrades the long term ratings to BWR D and downgrades the short term rating to BWR D for the Bank Loan Facilities of Rs. 8.89 Crs. of Indotech Industries (I) Pvt. Ltd. based on best available information, & continued it under issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (22 Dec 2020) |
Present | ||
Fund Based | 6.61 | 6.61 | Long Term |
BWR C-
Downgrade/ISSUER NOT COOPERATING* |
BWR D
Downgrade/ISSUER NOT COOPERATING* |
Non Fund Based | 2.28 | 2.28 | Short Term |
BWR A4
Reaffirmation/ISSUER NOT COOPERATING* |
BWR D
Downgrade/ISSUER NOT COOPERATING* |
(1.00) | (1.00) | ||||
Grand Total | 8.89 | 8.89 | (Rupees Eight Crores and Eighty Nine lakhs Only) |
BWR downgrades the long-term rating to BWR D and downgrades the short-term rating to BWR D; Issuer Not Cooperating category for the Bank Loan Facilities of Indotech Industries (I) Pvt Ltd amounting to Rs. 8.89 Crs, based on the lender's feedback there has been delays in repayment and also based on the best available information as the company has not provided any information/papers.
Brickwork Ratings has initially rated Indotech Industries (I) Pvt Ltd's Bank Loan Facilities amounting to Rs. 8.89 Crs in March 2016. The rating was assigned as BWR B- (stable)/ BWR A4. The rating was moved to Not Reviewed Advisory in May 2017. The rating was downgraded to BWR C/ BWR A4 in Nov 2019 on account of Issuer Non Cooperation. BWR took up the company to provide the required information for conducting review of the ratings through emails dated 24-11-2021, 30-11-2021 but did not receive any response from the client. We contacted the client through call dated 30-11-2021 but the call was not connected.
Despite the best efforts of BWR to get at least the minimum required information for review of rating, the company has not provided the same. There has been delays in repayment for the debt obligation during the last couple of months with delays stretching upto 7 to 25 days. Due to the continued lack of management cooperation and absence of adequate information from the company, BWR is unable to assess the company's ability to service its debt and maintain a valid rating. Hence, based on the best available information, BWR has downgraded the long-term rating to BWR D and downgraded the short-term rating to BWR D; ISSUER NOT COOPERATING* category.
LIMITATIONS OF THE RATING
Information availability risk is a key factor in the assessment of credit risk 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.
ABOUT THE ENTITYBased at Indore, Indotech Industries (I) Private Limited (IIPL), incorporated on October 2004 is promoted by Mr. Vijay Kasat and Mr. Rahul Modi. The company is engaged in the manufacture of metal cutting band saw machines. It also manufactures dedicated application metal cutting band saw machines and vertical band saw machines. The company has two units, one at Indore and other at Dewas in Madhya Pradesh, with combined capacity of manufacturing 200-250 machines p.a. The company is managed by Mr. Vijay Kasat, Executive Director and by Mr. Rahul Modi,Executive Director. Both the directors are adequately experienced.
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.
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 | 6.61 |
BWR D
(Downgrade/ISSUER NOT COOPERATING*) |
NA |
NA
|
22Dec2020 |
BWR C-
(Downgrade/ISSUER NOT COOPERATING*) |
26Nov2019 |
BWR C
(Downgrade/ISSUER NOT COOPERATING*) |
NA |
NA
|
Non Fund Based | ST | 2.28 |
BWR D
(Downgrade/ISSUER NOT COOPERATING*) |
NA |
NA
|
22Dec2020 |
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*) |
26Nov2019 |
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*) |
NA |
NA
|
NFB SubLimit | ST | (1.00) |
BWR D
(Downgrade/ISSUER NOT COOPERATING*) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
NA |
NA
|
Grand Total | 8.89 | (Rupees Eight Crores and Eighty Nine 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 | |
---|---|
Smit Mahesh Nagariya Ratings Analyst smitmahesh.n@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 Baroda | Term Loan | 1.11 | _ | 1.11 |
2 | Bank of Baroda | Bank Guarantee | _ | 2.28 | 2.28 |
3 | Bank of Baroda | FBWC (CC/EPC/FBD/FBP) | 5.50 | _ | 5.50 |
4 | Bank of Baroda | _ | _ | 0.00 | |
Sub-Limit (Letter of Credit) | (1.00) | ||||
Total | 6.61 | 2.28 | 8.89 | ||
TOTAL (Rupees Eight Crores and Eighty Nine 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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