Credit Bulletin
September 30, 2022 | Mumbai
Update on instances of delays in payment of  interest and principal, highlighted in the Independent Auditor’s report  
 

CRISIL Ratings notes Auditor’s comments in the Audited Financials of Data Patterns India Limited (DPIL) for fiscal 2022 that indicates delay in servicing of debt by 10 days and 2 days during the months of July 2021 and October 2021, respectively. CRISIL Ratings has taken cognizance of the same and verified the reasons for the same with lenders as well as the management. The delays in principal and interest servicing by 10 days in the month of July 2021 were owing to operational / technical issues at the bank’s end and during the period of delay, the company had more than adequate liquidity to pay off the liabilities in the account earmarked for the payment. The delays in principal servicing by 2 days in the month of October 2021 were due to procedural lapses at DPIL’s end in ensuring adequate fund availability in the right account for automatic debit. However, during the period of delay, the company had ample liquidity in accounts with other banks.

 

CRISIL Ratings has received adequate documentation from the client and the banker on this matter and hence concludes the delays have occurred not due to lack of willingness or ability in servicing debt but due to operational issues or lack of systems and processes in place at that time. However, basis management’s clarification and confirmation, CRISIL Ratings believes that this is a one-off instance and would not recur. Further, management and company have been prompt in sharing information and data points, including no default statements (NDS), as and when warranted..

 

The ratings continue to reflect the extensive experience of the promoters, established track record in defense equipment segment and comfortable financial risk profile marked by moderate capital structure and debt protection metrics. These rating strengths are partially offset by working capital-intensive operations and susceptibility to changes in defense sourcing policies.

 

For accessing the previous rating rationale, refer to the following link

Company Name

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Data Patterns India Limited

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