Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs.12.30 Crs. of R M Drip & Sprinklers Systems Ltd based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (16 Sep 2021) |
Present | ||
Fund Based | 10.80 | 10.80 | Long Term |
BWR B- /Stable
Reaffirmation/ISSUER NOT COOPERATING* |
BWR B -
/Stable Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
Non Fund Based | 1.50 | 1.50 | Short Term |
BWR A4
Reaffirmation/ISSUER NOT COOPERATING* |
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
Grand Total | 12.30 | 12.30 | (Rupees Twelve Crores and Thirty lakhs Only) |
Brickwork Ratings has reaffirmed the ratings for bank loan facilities aggregating Rs.12.30 crores of R M Drip and Sprinklers at BWR B-/Stable/A4 and continue under “ISSUER NOT COOPERATING” category, based on best available information as the Issuer did not cooperate.
The rating was due for review in September 2022. BWR took up with the issuer and its banker over emails dated 9th September, 12th September and 13th September, 2022 and through telephone calls, to provide the required information. However, despite the best efforts of BWR to get full information for a review within the timelines specified for the same, the issuer has not provided complete information to carry out the review exercise. The banker has not provided feedback.
In the absence of management cooperation to provide adequate information/documents for a review within the required timelines despite follow up , BWR is unable to assess the company's current financial performance or its ability to service its debt and maintain a valid rating.
BWR has accordingly reaffirmed the rating at BWR D ISSUER NOT COOPERATING*.
*Issuer did not cooperate, based on best available information
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
The lenders/investors may note to exercise due caution while using the above ratings which mentions “Issuer Not Cooperating” since the ratings lack any projections or a forward looking component as it is arrived based on the best available information on the company without any management interaction. Information availability risk is a key factor in the assessment of credit risk as generally, noncooperation by the rated entities to provide required information for a review of the assigned rating may also be accompanied by financial stress.
ABOUT THE ENTITYR M Drip and Sprinklers Systems Ltd. (RMDSSL) was initially incorporated as a partnership firm in 1996 under the name ‘J K Industries’ and subsequently converted to a private limited company , R M Drip and Sprinklers Systems Pvt. Ltd. The company got listed on the SME EMERGE platform of NSE. RMDSSL is engaged in the manufacturing of micro irrigation systems and components. Its products are supplied to the agricultural and farming industries. The manufacturing facility is located at Nashik. RMDSSL is also the Original Equipment supplier to many irrigation companies and various irrigation sub assembly manufacturers. Geographical reach of the company is Gujarat, Karnataka, Madhya Pradesh and Maharashtra. The broad product profile of the company includes drip irrigation, sprinkler irrigation and filter systems.
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
Facilities | Current Rating (2022) | 2021 | 2020 | 2019 | |||||
---|---|---|---|---|---|---|---|---|---|
Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
Fund Based | LT | 10.80 |
BWR B-/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
16Sep2021 |
BWR B- Stable
(Reaffirmation/ISSUER NOT COOPERATING*) |
27Mar2020 |
BWR B- Stable
(Downgrade/ISSUER NOT COOPERATING*) |
NA |
NA
|
Non Fund Based | ST | 1.50 |
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
16Sep2021 |
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*) |
27Mar2020 |
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*) |
NA |
NA
|
Grand Total | 12.30 | (Rupees Twelve Crores and Thirty 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 | |
---|---|
Heta Mehta Senior Manager - Ratings Board : +91 22 2831 1426, +91 22 2831 1439 heta.m@brickworkratings.com |
Bal Krishna Piparaiya Principal Director - Ratings Board : +91 22 2831 1426, +91 22 2831 1439 piparaiya.bk@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 LoanProposed | 5.80 | _ | 5.80 | |
2 | State Bank Of India (SBI) | Cash CreditProposed | 5.00 | _ | 5.00 | |
3 | State Bank Of India (SBI) | Bank GuaranteeProposed | _ | 0.50 | 0.50 | |
4 | State Bank Of India (SBI) | Letter of CreditProposed | _ | 1.00 | 1.00 | |
Total | 10.80 | 1.50 | 12.30 | |||
TOTAL (Rupees Twelve Crores and Thirty lakhs Only) |
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