RATING RATIONALE
13Jun2022

Lexus Granito India Ltd.

Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 51.90 Crs. of Lexus Granito India Ltd. based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(26 Apr 2021)
Present
Fund Based 47.20 47.20 Long Term BWR D
ISSUER NOT COOPERATING*
BWR D
Reaffirmation/ISSUER NOT COOPERATING*
Non Fund Based 4.70 4.70 Short Term BWR D
ISSUER NOT COOPERATING*
BWR D
Reaffirmation/ISSUER NOT COOPERATING*
Grand Total 51.90 51.90 (Rupees Fifty One Crores and Ninety lakhs Only)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure
*Issuer did not cooperate; based on best available information.


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

The ratings were due for a initial review in Jan 2020. The rating was moved to Issuer Not Cooperating category on 24 March 20. Brickwork Ratings (BWR) took up the firm to provide the required information over emails and through telephone communication. Despite the best efforts of Brickwork Ratings to get at least the minimum required information for a review, the firm has not provided the same. In the absence of adequate information from the issuer and continued lack of management cooperation, Brickwork Ratings is unable to assess the issuer’s financial performance and its ability to service its debt and maintain valid ratings. On 9 Jan 19 the company was assigned the rating as BWR D as the lender reported delay in servicing debt obligations. The firm has not been submitting NDS to BWR. Based on inadequate information and continued lack of management cooperation, Brickwork Ratings has reaffirmed the rating as BWR D/INC* continuing it to the Issuer Not Cooperating* category.

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 the required information for a review of the assigned rating may also be accompanied by financial stress. Users of the credit rating should, therefore, take into account the possible deterioration in the credit quality of the rated entity arising from its non-transparency and with holding of the information required for a review of the rating.

ABOUT THE ENTITY

Lexus Granito India Limited (LGIL), incorporated in 2007, is a NSE listed company based out of Morbi, Gujarat. Mr. Babulal Detroja, Mr. Anil Detroja, Mr. Nilesh Detroja and Mr. Hitesh Detroja are the managing directors of the company. The company is engaged in manufacturing and exporting of vitrified tiles and wall tiles. The company mainly exports the products to Saudi Arabia, Mexico and Kuwait. The unit has an installed capacity to produce 5,40,00,000 sq. ft. of wall tiles per annum and 91250 MTS of sizes 300”x 450 “, 300” x 600” of ceramic tiles per annum.

KEY FINANCIAL INDICATORS

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.

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

ICRA rating vides its press release dated 2nd Feb 2022 has continued the long-term rating ICRA D and the short rating as ICRA D under the non-cooperation category for a debt size of Rs. 83.88 Crs as the company did not cooperate.

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2022) 2022 (History) 2021 2020 2019
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating Date Rating
Fund Based LT 47.20
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
26Apr2021
BWR D
(ISSUER NOT COOPERATING*)
24Mar2020
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
09Jan2019
BWR D
(Assignment)
Non Fund Based ST 4.70
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
26Apr2021
BWR D
(ISSUER NOT COOPERATING*)
24Mar2020
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
09Jan2019
BWR D
(Assignment)
Grand Total 51.90 (Rupees Fifty One Crores and Ninety lakhs Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - Simple

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 Criteria
Analytical Contacts

Tripti Sharma

Ratings Analyst tripti.s@brickworkratings.com

Dileep Narayan Singh

Director dileep.s@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Lexus Granito India Ltd.
ANNEXURE-I
Details of Bank Facilities rated by BWR
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) Term LoanOut-standing 25.20 _ 25.20
2 State Bank Of India (SBI) Cash CreditSanctioned 22.00 _ 22.00
3 State Bank Of India (SBI) Bank GuaranteeSanctioned _ 4.70 4.70
Total 47.20 4.70 51.90
TOTAL (Rupees Fifty One Crores and Ninety lakhs Only)
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About Brickwork Ratings

Brickwork 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 11,541 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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