Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 69.93 Crs. of GS Auto International Limited based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (21 Dec 2022) |
Present | ||
Fund Based | 64.43 | 64.43 | Long Term |
BWR C
Reaffirmation/ISSUER NOT COOPERATING* |
BWR C
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
Non Fund Based | 5.50 | 5.50 | Short Term |
BWR A4
Reaffirmation/ISSUER NOT COOPERATING* |
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
Grand Total | 69.93 | 69.93 | (Rupees Sixty Nine Crores and Ninety Three lakhs Only) |
Brickwork Ratings has reaffirmed the ratings of the long-term bank loan facilities for Rs.64.43 Crs of GS Auto International Limited at BWR C and reaffirmed the rating for their short-term bank loan facilities for Rs.5.50 crores at BWR A4 (aggregate rated amount Rs.69.93 crores) and continued the ratings into “ISSUER NOT COOPERATING” category, based on best available information as the Issuer did not cooperate.
The rating was due for review on 21 Dec 2023. BWR took up with the Company and its bankers, over emails and through telephone calls, to provide the required information. Upon our request to provide documents for review of the ratings, the company informed us about their decision to have the ratings withdrawn and did not share any information on their current financials. Also, the company has not fully complied with the BWR Withdrawal policy The company has also not been submitting the No Default Statements (NDS) for more than 3 months.
In the absence of management cooperation on the part of the company to provide adequate information/documents for a review/withdrawal within the required timelines despite follow-up, coupled with nonsubmission of NDS and lack of banker's feedback, BWR is unable to assess the company's current financial performance or its ability to service its debt and maintain a valid rating. Accordingly, keeping in view the regulatory guidelines in this regard, the long-term and short-term rating is reaffirmed at BWR C and BWR A4, and both the ratings are continued under the “Issuer Not Cooperating” category, based on best available information as the Issuer did not cooperate.
The lenders/investors may note to exercise due caution while using the above rating which mentions "Issuer Not Cooperating" since the rating lack any projections or forward looking component as it is arrived at based on the best available information 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, 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 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 ENTITYMacro Economic Indicator | Sector | Industry | Basic Industry |
---|---|---|---|
Consumer Discretionary | Automobile and Auto Components | Auto Components | Auto Components & Equipments |
GS Auto International Limited (GSAIL) was originally set up as a proprietorship concern, Gurmukh Singh & Sons, and was reconstituted as a private limited company in 1973, and then as a public limited company in 1984. GSAIL is listed on BSE. The company manufactures automotive components such as suspensions and fasteners for commercial vehicles from its two manufacturing units, one located at Ludhiana and the second one at Jamshedpur.
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
Infomerics, Rating amount- Rs.37.75 Crs , IVR C Negative, A4 ISSUER NOT COOPERATING, 07 June 2023
ANY OTHER INFORMATIONCompany has active rating from CARE, Rating amount- Rs.44.97 Crs, CARE C Stable, A3, 26 Dec 2023
RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)Facilities | Current Rating (2024) | 2023 | 2022 | 2021 | |||||
---|---|---|---|---|---|---|---|---|---|
Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
Fund Based | LT | 64.43 |
BWR C
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
NA |
NA
|
21Dec2022 |
BWR C
(Reaffirmation/ISSUER NOT COOPERATING*) |
20Dec2021 |
BWR C
(Reaffirmation/ISSUER NOT COOPERATING*) |
Non Fund Based | ST | 5.50 |
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
NA |
NA
|
21Dec2022 |
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*) |
20Dec2021 |
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*) |
Grand Total | 69.93 | (Rupees Sixty Nine Crores and Ninety Three 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 | |
---|---|
Prajwal Biraj Rating Analyst prajwal.b@brickworkratings.com |
RamaKrishna Director - Ratings ramakrishna@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 | Axis Bank Ltd. | Term LoanSanctioned | 2.38 | _ | 2.38 | |
2 | Export Import Bank of India | Term LoanSanctioned | 10.80 | _ | 10.80 | |
3 | Export Import Bank of India | Term LoanProposed | 5.50 | _ | 5.50 | |
4 | Punjab National Bank | Term LoanProposed | 16.50 | _ | 16.50 | |
5 | Punjab National Bank | Cash CreditSanctioned | 27.25 | _ | 27.25 | |
6 | Punjab National Bank | Cash CreditProposed | 2.00 | _ | 2.00 | |
7 | Punjab National Bank | ILC/FLCSanctioned | _ | 5.50 | 5.50 | |
Total | 64.43 | 5.50 | 69.93 | |||
TOTAL (Rupees Sixty Nine Crores and Ninety Three 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 11,560 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.
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