May 23, 2014
Mumbai
Benara Bearings & Pistons Ltd.
 
Ratings Suspended
 
Total Bank Loan Facilities Rated Rs.126.7 Million
Long Term Rating Suspended
Short Term Rating Suspended
(Refer to Annexure 1 for Facility-wise details)

CRISIL has suspended its ratings on the bank facilities of Benara Bearings & Pistons Ltd (BBPL). The suspension of ratings is on account of non-cooperation by BBPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, BBPL is yet to provide adequate information to enable CRISIL to assess BBPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'.

About the Company

BBPL manufactures engine bearings, bushes, pistons, and pins for stationary diesel engines primarily used in the agriculture segment. The company also trades in engine parts manufactured by the Mahle group, mainly pistons for two- and three-wheelers. Bearings, bushings, and pistons comprise around 35 per cent of BBPL's sales, while trading of products constitutes the remaining 65 per cent. The company derives 20 per cent of its revenues from exporting its products. The rest are derived from sales to original equipment manufacturers or in the replacement market through dealers in Rajkot (Gujarat) and Agra (Uttar Pradesh).

Annexure 1 - Details of various bank facilities
Current facilities Previous facilities
Facility Amount (Rs.Million) Rating Facility Amount (Rs.Million) Rating
Bank Guarantee 1 Suspended Bank Guarantee 1 CRISIL A4
Cash Credit 80 Suspended Cash Credit 80 CRISIL B/Stable
Letter of Credit 40 Suspended Letter of Credit 40 CRISIL A4
Proposed Long Term Bank Loan Facility 5.7 Suspended Proposed Long Term Bank Loan Facility 5.7 CRISIL B/Stable
Total 126.7 -- Total 126.7 --
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Last updated: May, 2013

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May 23, 2014

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