Brickwork Ratings reaffirms the ratings and continues the ratings in the 'Issuer Not Cooperating' category 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.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (27 Aug 2021) |
Present | ||
Fund Based | 19.06 | 19.06 | Long Term |
BWR B- /Stable
Downgrade/ISSUER NOT COOPERATING* |
BWR B -
/Stable Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
Non Fund Based | 3.00 | 3.00 | Short Term |
BWR A4
Reaffirmation/ISSUER NOT COOPERATING* |
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) |
In view of the non-availability of complete information and lack of cooperation from ‘Vamshi Rubber Ltd.’, Brickwork Ratings has reaffirmed the long term rating of “BWR B-/Stable” and reaffirmed the short term rating of “BWR A4” and continued the ratings in 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 ratings which mention "Issuer Not Cooperating", since the rating lacks any projections or forward looking component as they are arrived at based on best available information without any management/banker's interaction.
The ratings were due for review in August, 2022. BWR took up with the company recently over emails and through telephone calls to obtain the required information. Despite the best efforts of BWR to get at least the minimum required information for a review, the entity has not provided the same. The company has also not been furnishing the required monthly Non Default Statements (NDS).
Thus, due to lack of management cooperation to furnish adequate information about the company's performance despite follow up, coupled with its non submission of NDS, BWR is unable to assess its financial performance or its ability to service its debt and maintain a valid rating. Accordingly, the long term and short term ratings have been reaffirmed and continued the ratings in the “Issuer Not Cooperating” category. The rating reaffirmation is based on the lack of up-to-date information on the company’s performance.
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 ENTITYIncorporated in November, 1993 at Hyderabad, Vamshi Rubber Ltd (VRL) is engaged in the business of manufacturing PCTR (Pre-cured tread rubber), cushion gum, vulcanising 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 of 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.
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
CRISIL has continued the ratings of the bank loan facilities of Rs. 21.00 Crores of 'Vamshi Rubber Limited' in the ‘Issuer Not Cooperating’ category on 30 May 2022, with ratings of “CRISIL B (Stable)/ CRISIL A4 ; ISSUER NOT
COOPERATING”.
Facilities | Current Rating (2022) | 2021 | 2020 | 2019 | |||||
---|---|---|---|---|---|---|---|---|---|
Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
Fund Based | LT | 19.06 |
BWR B-/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
27Aug2021 |
BWR B- Stable
(Downgrade/ISSUER NOT COOPERATING*) |
21May2020 |
BWR B+ Stable
(Downgrade/ISSUER NOT COOPERATING*) |
NA |
NA
|
Non Fund Based | ST | 3.00 |
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
27Aug2021 |
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*) |
21May2020 |
BWR A4
(Downgrade/ISSUER NOT COOPERATING*) |
NA |
NA
|
Grand Total | 22.06 | (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.
Hyperlink/Reference to applicable CriteriaAnalytical Contacts | |
---|---|
Soubhagya Ranjan Kahalsingh Ratings Analyst Board : +91 80 4040 9940 soubhagya.rs@brickworkratings.com |
Ramesh N Associate Director - Ratings ramesh.n@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 | State Bank Of India (SBI) | Term LoanOut-standing | 2.06 | _ | 2.06 | |
2 | State Bank Of India (SBI) | Cash CreditSanctioned | 17.00 | _ | 17.00 | |
3 | State Bank Of India (SBI) | Bank GuaranteeSanctioned | _ | 3.00 | 3.00 | |
Total | 19.06 | 3.00 | 22.06 | |||
TOTAL (Rupees Twenty Two Crores and Six lakhs Only) |
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