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

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

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)
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