Rating Rationale
September 29, 2021 | Mumbai
Frontier Springs Limited
Issuer not cooperating, based on best-available information; Ratings Revised to ‘CRISIL B/Stable/CRISIL A4 Issuer not cooperating'
 
Rating Action
Total Bank Loan Facilities RatedRs.25 Crore
Long Term RatingCRISIL B /Stable (ISSUER NOT COOPERATING*; Revised from ‘CRISIL BB+/Stable ISSUER NOT COOPERATING*’)
Short Term RatingCRISIL A4 (ISSUER NOT COOPERATING*; Revised from ‘CRISIL A4+ ISSUER NOT COOPERATING*’)
1 crore = 10 million
Refer to Annexure for Details of Instruments & Bank Facilities
*Issuer did not cooperate; based on best-available information
 
Please note that the rating(s) are based on best available information with the credit rating agency: the entity whose debt is being published via this press release did not provide the requisite information needed to conduct the rating exercise and is therefore classified as 'non cooperative'.

Non cooperation by Issuer

CRISIL Ratings has been consistently following up with Frontier Springs Limited (FSL) for obtaining information through letters and emails dated February 22, 2021 and August 13, 2021 among others, apart from telephonic communication. However, the issuer has remained non cooperative.

 

‘The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.’

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of FSL, which restricts CRISIL Ratings’ ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on FSL is consistent with ‘Assessing Information Adequacy Risk’. Based on the last available information, the ratings on bank facilities of FSL revised to ‘CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating’ from ‘CRISIL BB+/Stable/CRISIL A4+ Issuer Not Cooperating’.

About the Company

FSL, incorporated in 1981, was promoted by Mr Kundal Lal Bhatia. It manufactures high-capacity springs with diameters of 13-65 millimetres (mm) that are used in heavy engineering industries. It has two plants, one each in Kanpur (Uttar Pradesh) and Poanta Sahib (Himachal Pradesh), with a total installed capacity of 8000 tonne per annum (tpa). FSL has set up a forging unit (in fiscal 2013) in its Kanpur plant, which has a capacity of 1200 tpa.

Key Financial Indicators

As on/for the period ended March 31

Unit 

2021

2020

Revenue

Rs.Crore

77.94

100.73

Profit After Tax (PAT)

Rs.Crore

7.80

14.04

PAT Margins

%

10.13

14.02

Adjusted debt/adjusted networth

Times

0.06

0.19

Interest coverage

Times

27.71

31.74

Any other information: Not applicable

Note on complexity levels of the rated instrument:
CRISIL Ratings' complexity levels are assigned to various types of financial instruments. The CRISIL Ratings' complexity levels are available on www.crisil.com/complexity-levels. Users are advised to refer to the CRISIL Ratings' complexity levels for instruments that they consider for investment. Users may also call the Customer Service Helpdesk with queries on specific instruments.

Annexure - Details of Instrument(s)*

ISIN

Name of Instrument

Date of Allotment

Coupon
Rate (%)

Maturity Date

Issue
Size
(Rs. Cr)

Complexity Levels

Rating Assigned with Outlook

NA

Bank Guarantee

NA

NA

NA

4

NA

CRISIL A4/Issuer Not Cooperating

NA

Cash Credit

NA

NA

NA

5.5

NA

CRISIL B/Stable/Issuer Not Cooperating

NA

Corporate Loan

NA

NA

NA

5.5

NA

CRISIL B/Stable/Issuer Not Cooperating

NA

Letter of Credit

NA

NA

NA

6

NA

CRISIL A4/Issuer Not Cooperating

NA

Proposed Long Term Bank Loan Facility

NA

NA

NA

1.02

NA

CRISIL B/Stable/Issuer Not Cooperating

NA

Standby Line of Credit

NA

NA

NA

0.75

NA

CRISIL B/Stable/Issuer Not Cooperating

NA

Term Loan

NA

NA

Not Available

2.23

NA

CRISIL B/Stable/Issuer Not Cooperating

*Issuer did not cooperate; based on best-available information

Annexure - Rating History for last 3 Years
  Current 2021 (History) 2020  2019  2018  Start of 2018
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund Based Facilities LT 15.0 CRISIL B /Stable(Issuer Not Cooperating)*   -- 24-06-20 CRISIL BB+ /Stable(Issuer Not Cooperating)* 30-03-19 CRISIL BB+ /Stable(Issuer Not Cooperating)*   -- CRISIL BB+/Stable
Non-Fund Based Facilities ST 10.0 CRISIL A4 (Issuer Not Cooperating)*   -- 24-06-20 CRISIL A4+ (Issuer Not Cooperating)* 30-03-19 CRISIL A4+ (Issuer Not Cooperating)*   -- CRISIL A4+
All amounts are in Rs.Cr.
* - Issuer did not cooperate; based on best-available information
 
Annexure - Details of Bank Lenders & Facilities
Facility Amount (Rs.Crore) Rating
Bank Guarantee 4 CRISIL A4 (Issuer Not Cooperating)*
Cash Credit 5.5 CRISIL B /Stable(Issuer Not Cooperating)*
Corporate Loan 5.5 CRISIL B /Stable(Issuer Not Cooperating)*
Letter of Credit 6 CRISIL A4 (Issuer Not Cooperating)*
Proposed Long Term Bank Loan Facility 1.02 CRISIL B /Stable(Issuer Not Cooperating)*
Standby Line of Credit 0.75 CRISIL B /Stable(Issuer Not Cooperating)*
Term Loan 2.23 CRISIL B /Stable(Issuer Not Cooperating)*
* - Issuer did not cooperate; based on best-available information
Criteria Details
Links to related criteria
CRISILs Approach to Financial Ratios
Rating criteria for manufaturing and service sector companies
CRISILs Bank Loan Ratings - process, scale and default recognition
Assessing Information Adequacy Risk
CRISILs Criteria for rating short term debt
Understanding CRISILs Ratings and Rating Scales

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