RATING RATIONALE
11Dec2023

Lakshmi Precision Screws Ltd.

Brickwork Ratings reaffirms the rating of Lakshmi Precision Screws Ltd. for the Bank Loan Facilities amounting to Rs. 224.55 Crs. based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(07 Dec 2022)
Present
Fund Based 133.85 133.85 Long Term BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Non Fund Based 90.70 90.70 Short Term BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Grand Total 224.55 224.55 (Rupees Two Hundred Twenty Four Crores and Fifty Five 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

BWR took up with the company to provide the required information over emails and through telephonic communication as the rating is due for review in 07Dec2023. Despite the best efforts of BWR to get at least the minimum information for a review, the company has not provided the same and has not been submitting NDS to BWR.

The lenders/investors may note to exercise due caution while using the rating which mentions "Issuer Not Cooperating "since the rating lacks any projections or forward-looking component as it is arrived at based on the best available information without any management/banker's interaction.

On 18-Jul-2018, NCLT had ordered the commencement of Corporate Insolvency Resolution Process of the company. As at date, no decision has been affected and the CIRP is ongoing.

In absence of adequate information, non-submission of no default statement and lack of management cooperation, the rating action is recommended based on best available information as the issuer did not cooperate. Accordingly, appropriate press releases will be made on our website. The rating of the said instrument is as follows - Reaffirm the ratings at “BWR D” with continuation of ratings under 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 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 possible deterioration in the credit quality of the rated entity arising from its non-transparency withholding of information required for a review of the rating.

ABOUT THE ENTITY
Macro Economic Indicator Sector Industry Basic Industry
Consumer Discretionary Automobile and Auto Components Auto Components Auto Components & Equipments

Incorporated in 1968 at Rohtak (Haryana), Lakshmi Precision Screws Ltd (LPSL) is one of the leading Indian manufacturers and suppliers of High Tensile Fasteners catering to the needs of the entire industrial sector, with a focus on the automotive sector. The company is promoted by the Haryana based Jain Family. The company manufactures and supplies fasteners for Automotive, Industrial and Torx Drive Systems, with a wide product range covering around 9000 variants and customized products for automotive and industrial OEMs as well. The Company has four manufacturing units spread across an area of over 100,000 square meters with a total capacity of 26822 Metric Tons per annum.

(Note: As per the Information provided to BWR during the year 2016 review)

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. View Previous Document

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

CARE Ratings migrated the company's ratings to the ISSUER NOT COOPERATING* category w.e.f. 13 Mar 2019 as the issuer did not provide the information to conduct the rating exercise

ANY OTHER INFORMATION

No Financial Announcement has been made by the company since 2017.

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2023) 2022 2021 2020
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 133.85
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
07Dec2022
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
27Jul2021
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
29Jun2020
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
Non Fund Based ST 90.70
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
07Dec2022
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
27Jul2021
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
29Jun2020
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
Grand Total 224.55 (Rupees Two Hundred Twenty Four Crores and Fifty Five 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

Sandeep A Pawar

Rating Analyst sandeep.ap@brickworkratings.com

Suryanarayan N

Chief Manager - Ratings suryanarayan.n@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Lakshmi Precision Screws 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 Canara Bank Cash CreditSanctioned 96.00 _ 96.00
2 Canara Bank Bank GuaranteeSanctioned _ 63.70 63.70
3 Others Bank GuaranteeSanctioned _ 23.50 23.50
4 State Bank Of India (SBI) Bank GuaranteeSanctioned _ 3.50 3.50
5 State Bank Of India (SBI) Cash CreditSanctioned 31.50 _ 31.50
6 Union Bank of India Cash CreditSanctioned 6.35 _ 6.35
Total 133.85 90.70 224.55
TOTAL (Rupees Two Hundred Twenty Four Crores and Fifty Five lakhs Only)
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