RATING RATIONALE
03Dec2024

Vamshi Rubber Ltd

Brickwork Ratings reaffirms the long-term and short-term ratings for the Bank Loan Facilities of Rs. 22.06 Crs. of Vamshi Rubber Ltd based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(27 Oct 2023)
Present
Fund Based 19.06 19.06 Long Term BWR C
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
BWR C
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Non Fund Based 3.00 3.00 Short Term BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Grand Total 22.06 22.06 (Rupees Twenty Two Crores and Six 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

Brickwork Ratings has Reaffirmed the rating of the long-term bank loan facilities of " Vamshi Rubber Ltd" for Rs.19.06 crores at BWR C and has reaffirmed the rating of their short-term bank loan facilities of Rs.3.00 crores at BWR A4 (aggregate rated amount Rs.22.06 crores), while retaining the same in the Issuer Not Cooperating’ category, based on best available information as the Issuer did not cooperate.

The ratings are due for review in Oct 2024. BWR took up with the issuer and its banker over emails and through telephone calls to provide the required information. Despite the best efforts of BWR to get at least the minimum required information for a review, neither the company nor its banker has provided the same. In the absence of adequate information from the company and its banker, BWR is unable to assess the company’s financial performance or its ability to service its debt and maintain a valid rating. The company has also been irregular with respect to the submission of the monthly No Default Statements. Hence, based on best available information, continued lack of management cooperation, non-submission of NDS, and lack of banker’s feedback, the long-term and the short-term ratings reaffirmed, and continued in the Issuer Not Cooperating* category, 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 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
Industrials Capital Goods Industrial Products Rubber

Incorporated in November 1993 in Hyderabad, Vamshi Rubber Ltd (VRL) is engaged in the business of manufacturing PCTR (Pre-cured tread rubber), cushion gum, vulcanizing solution, and curing envelopes used to retread tires. VRL is listed on the Bombay Stock Exchange. The Company caters to the tyre retreading material manufacturing industry and is ISO 9001-2008 certified. VRL's manufacturing plant has an annual production capacity of 4600 MT of Precured Tread Rubber, 300 MT of Cushion Gum, 150 KL of Vulcanizing Solution, and 12,000 Envelopes. Mr. R Surendra Reddy is the Managing director. Mr M. Ramesh Reddy, Mr. P Varun Kumar, and Mr. K. V. Sarma are the other Directors.

Note: As per the information provided to BWR During the year 2017

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

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Creadit Rating AgencyStatus and Reason for Non-CooparationDate of Press Release
CRISILCRISIL Ratings, vide its press release dated September 30, 2024, has reaffirmed the Long-term and short-term ratings "CRISIL B/Stable/ A4" under 'Issuer Not Cooperating' category for the bank loan facilities of Rs 21.00 Crs 30Sep2024

ANY OTHER INFORMATION

NA

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 19.06
BWR C
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
27Oct2023
BWR C
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
13Sep2022
BWR B- Stable
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
27Aug2021
BWR B- Stable
(Downgrade/ISSUER NOT COOPERATING*)
Non Fund Based ST 3.00
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
27Oct2023
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
13Sep2022
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
27Aug2021
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
Grand Total 22.06 (Rupees Twenty Two Crores and Six lakhs Only)
Hyperlink/Reference to applicable Criteria
Analytical Contacts

Sandeep A Pawar

Rating Analyst sandeep.ap@brickworkratings.com

Ravi Rashmi Dhar

Associate Director - Ratings ravi.d@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Vamshi Rubber 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.) Complexity of the Instrument
1 State Bank Of India (SBI) Term LoanOut-standing 2.06 _ 2.06 Simple##
2 State Bank Of India (SBI) Cash CreditSanctioned 17.00 _ 17.00 Simple##
3 State Bank Of India (SBI) Bank GuaranteeSanctioned _ 3.00 3.00 Simple##
Total 19.06 3.00 22.06
TOTAL (Rupees Twenty Two Crores and Six 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.

ANNEXURE-II
INSTRUMENT DETAILS

InstrumentIssue DateAmount (Rs.Crs)Coupon Rate (%)Maturity DateISIN ParticularsComplexity of the Instrument
NilNilNilNilNilNilNil

ANNEXURE-III
List of entities consolidated

Name of Entity% OwnershipExtent of consolidationRationale for consolidation
NilNilNilNil

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