RATING RATIONALE
11Jun2024

Lorenzo Vitrified Tiles Pvt. Ltd.

Brickwork Ratings reaffirms the long-term and short-term ratings of Lorenzo Vitrified Tiles Pvt. Ltd. for the Bank Loan Facilities amounting to Rs. 28.00 Crs based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(16 Jun 2023)
Present
Fund Based 22.00 22.00 Long Term BWR C
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
BWR C
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Non Fund Based 6.00 6.00 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 28.00 28.00 (Rupees Twenty Eight Crores 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 has reaffirms the long-term and short-term ratings at" BWR C/A4" for the bank loan facility of " Lorenzo Vitrified Tiles Pvt. Ltd" continues to place ratings under the 'Issuer Not Cooperate' category as the issuer did not cooperate.

BWR had initially assigned the long-term and short-term rating to "BWR BB-/Stable/A4" on 19-June-2015. The long-term rating and short-term ratings Reaffirmed at " BWR BB-/Stable/A4"on 20-Dec-2016. The long-term rating was downgraded to "BWR B+/Stable" and reaffirmed the short-term ratings at "BWR A4" and migrated the ratings under" ISSUER NOT COOPERATING" category on 28-Mar-2018. The long-term rating was downgraded to "BWR B-/Stable" and reaffirmed the short-term ratings at "BWR A4" and continued as" ISSUER NOT COOPERATING" category on 17-Feb-2020.The long-term rating was downgraded to "BWR C" and reaffirmed the short-term ratings at "BWR A4" and continued as" ISSUER NOT COOPERATING" category on 09-June-2021.The long-term rating and short-term ratings were reaffirmed at "BWR C/A4" and continued to be "ISSUER NOT COOPERATING on 17-Jun-2022. On 16-Jun-2023, the long-term and short-term ratings were reaffirmed at BWR C/A4 and continues the ratings under Issuer Not Cooperating*category.

Going forward, BWR took up with the issuer consistently to provide required information over emails apart from telephonic communication, but no response has been received from the client. Further, BWR is unable to reach the banker ; the banker's feedback regarding the conduct of the account is not available. Despite the best efforts of BWR to get at least the minimum required information for the review, the entity has not provided the same. In the absence of adequate information from the firm, BWR is unable to assess the firm's financial performance and its ability to service its debt and maintain a valid rating.

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 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 the 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 Consumer Durables Consumer Durables Granites & Marbles

Lorenzo Vitrified Tiles Private Limited was incorporated in October 2006 and is mainly engaged in the business of manufacturing vitrified tiles. The management team consists of Directors viz. Mr. Mansukhbhai Koradiya, Mr. Vasantbhai Gajera and Swintu Mavani. Mr Mansukhbhai Koradiya, aged 50 years has nearly three decades of experience in the Ceramic and Tile Industry. Mr. Vasantbhai Gajera and Mr Swintu Mavani both have nearly a decade of experience in this Industry. One of the promoters of the Company Mr. Babubhai Gadara resigned in December 2014. The production facility is located in Lalpur, near the city of Morbi, Gujarat, on leasehold premises. The unit is running at 72% of its installed capacity. The raw materials required for manufacture are a mixture of clay, soda powder, and quota powder, which are easily sourced from the nearby zones. According to the information provided, the company has installed imported machinery which would enable it to switch from soluble tiles to digital tiles according to demand.

(Information received as per 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

CRISIL Ratings migrated the company's ratings to the ISSUER NOT COOPERATING* category w.e.f. 31-Jan-2019 as the issuer did not provide the information to conduct the rating exercise.

ANY OTHER INFORMATION

No Other Information 

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 22.00
BWR C
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
16Jun2023
BWR C
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
17Jun2022
BWR C
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
09Jun2021
BWR C
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
Non Fund Based ST 6.00
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
16Jun2023
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
17Jun2022
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
09Jun2021
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
Grand Total 28.00 (Rupees Twenty Eight Crores 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

V.K.Kukreja

Associate Director - Ratings Board : +91 11 2341 2232 kukreja.vk@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Lorenzo Vitrified Tiles Pvt. 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 State Bank Of India (SBI) Cash Credit 22.00 _ 22.00
2 State Bank Of India (SBI) Bank Guarantee _ 6.00 6.00
Total 22.00 6.00 28.00
TOTAL (Rupees Twenty Eight Crores Only)
Print and Digital Media

The Rating Rationale is sent to you for the sole purpose of dissemination through your print, digital or electronic media. While it may be used by you acknowledging credit to BWR, please do not change the wordings in the rationale to avoid conveying a meaning different from what was intended by BWR. BWR alone has the sole right of sharing (both direct and indirect) its rationales for consideration or otherwise through any print or electronic or digital media.

About Brickwork Ratings

Brickwork 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.

Disclaimer

Brickwork Ratings India Pvt. Ltd. (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by the Reserve Bank of India [RBI], offers credit ratings of Bank Loan facilities, 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. [ hereafter referred to as "Instruments"]. BWR also rates NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations.

BWR wishes to inform all persons who may come across Rating Rationales and Rating Reports provided by BWR that the ratings assigned by BWR are based on information obtained from the issuer of the instrument and other reliable sources, which in BWR's best judgment are considered reliable. The Rating Rationale / Rating Report & other rating communications are intended for the jurisdiction of India only. The reports should not be the sole or primary basis for any investment decision within the meaning of any law or regulation (including the laws and regulations applicable in Europe and also the USA).

BWR also wishes to inform that access or use of the said documents does not create a client relationship between the user and BWR.

The ratings assigned by BWR are only an expression of BWR's opinion on the entity / instrument and should not in any manner be construed as being a recommendation to either, purchase, hold or sell the instrument.

BWR also wishes to abundantly clarify that these ratings are not to be considered as an investment advice in any jurisdiction nor are they to be used as a basis for or as an alternative to independent financial advice and judgment obtained from the user's financial advisors. BWR shall not be liable to any losses incurred by the users of these Rating Rationales, Rating Reports or its contents. BWR reserves the right to vary, modify, suspend or withdraw the ratings at any time without assigning reasons for the same.

BWR's ratings reflect BWR's opinion on the day the ratings are published and are not reflective of factual circumstances that may have arisen on a later date. BWR is not obliged to update its opinion based on any public notification, in any form or format although BWR may disseminate its opinion and analysis when deemed fit.

Neither BWR nor its affiliates, third party providers, as well as the directors, officers, shareholders, employees or agents (collectively, "BWR Party") guarantee the accuracy, completeness or adequacy of the Ratings, and no BWR Party shall have any liability for any errors, omissions, or interruptions therein, regardless of the cause, or for the results obtained from the use of any part of the Rating Rationales or Rating Reports. Each BWR Party disclaims all express or implied warranties, including, but not limited to, any warranties of merchantability, suitability or fitness for a particular purpose or use. In no event shall any BWR Party be liable to any one for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of any part of the Rating Rationales and/or Rating Reports even if advised of the possibility of such damages. However, BWR or its associates may have other commercial transactions with the company/entity. BWR and its affiliates do not act as a fiduciary.

BWR keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of the respective activity. As a result, certain business units of BWR may have information that is not available to other BWR business units. BWR has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.

BWR clarifies that it may have been paid a fee by the issuers or underwriters of the instruments, facilities, securities etc., or from obligors. BWR's public ratings and analysis are made available on its web site, www.brickworkratings.com. More detailed information may be provided for a fee. BWR's rating criteria are also generally made available without charge on BWR's website.

This disclaimer forms an integral part of the Ratings Rationales / Rating Reports or other press releases, advisories, communications issued by BWR and circulation of the ratings without this disclaimer is prohibited.

BWR is bound by the Code of Conduct for Credit Rating Agencies issued by the Securities and Exchange Board of India and is governed by the applicable regulations issued by the Securities and Exchange Board of India as amended from time to time.