Rating Rationale
March 30, 2019 | Mumbai
Frontier Springs Limited
Issuer not cooperating, based on best-available information; Ratings migrated to 'CRISIL BB+/Stable/CRISIL A4+ Issuer not cooperating'
 
Rating Action
Total Bank Loan Facilities Rated Rs.25 Crore
Long Term Rating CRISIL BB+/Stable (ISSUER NOT COOPERATING; Rating Migrated)*
Short Term Rating CRISIL A4+ (ISSUER NOT COOPERATING; Rating Migrated)*
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 has been consistently following up with Frontier Springs Limited (FSL) for obtaining information through letters and emails dated January 21, 2019, February 26, 2019, March 07, 2019 and March 12, 2019among others, apart from telephonic communication. However, the issuer has remained non cooperative.
 
'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of FSL. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on FSL is consistent with 'Scenario 4' outlined in the 'Framework for Assessing Consistency of Information with '.
 
Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of FSL to '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 2018 2017
Operating income Rs crore 66.46 48.75
Reported profit after tax (PAT) Rs crore 3.56 2.13
PAT margins % 6.05 4.92
Adjusted debt/adjusted networth Times 0.41 0.60
Interest coverage Times 4.88 3.55

Any other information: Not applicable

Note on complexity levels of the rated instrument:
CRISIL complexity levels are assigned to various types of financial instruments. The CRISIL complexity levels are available on www.crisil.com/complexity-levels. Users are advised to refer to the CRISIL 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)
Rating Assigned  with Outlook
NA Bank Guarantee NA NA NA 4 CRISIL A4+/Issuer Not Cooperating
NA Cash Credit NA NA NA 5.5 CRISIL BB+/Stable/Issuer Not Cooperating
NA Corporate Loan NA NA NA 5.5 CRISIL BB+/Stable/Issuer Not Cooperating
NA Letter of Credit NA NA NA 6 CRISIL A4+/Issuer Not Cooperating
NA Proposed Long Term Bank Loan Facility NA NA NA 1.02 CRISIL BB+/Stable/Issuer Not Cooperating
NA Standby Line of Credit NA NA NA 0.75 CRISIL BB+/Stable/Issuer Not Cooperating
NA Term Loan NA NA Not Available 2.23 CRISIL BB+/Stable/Issuer Not Cooperating
*Issuer did not cooperate; based on best-available information
Annexure - Rating History for last 3 Years
  Current 2019 (History) 2018  2017  2016  Start of 2016
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund-based Bank Facilities  LT/ST  15.00  CRISIL BB+/Stable (Issuer Not Cooperating)*          26-12-17  CRISIL BB+/Stable  12-08-16  CRISIL BB+/Stable  CRISIL BB+/Stable 
                07-09-17  CRISIL BB+/Stable       
                21-08-17  CRISIL BB+/Stable       
                26-07-17  CRISIL BB+/Stable       
Non Fund-based Bank Facilities  LT/ST  10.00  CRISIL A4+ (Issuer Not Cooperating)*          26-12-17  CRISIL A4+  12-08-16  CRISIL A4+  CRISIL A4+ 
                07-09-17  CRISIL A4+       
                21-08-17  CRISIL A4+       
                26-07-17  CRISIL A4+       
All amounts are in Rs.Cr.
*Issuer did not cooperate; based on best-available information
Annexure - Details of various bank facilities
Current facilities Previous facilities
Facility Amount (Rs.Crore) Rating Facility Amount (Rs.Crore) Rating
Bank Guarantee 4 CRISIL A4+/Issuer Not Cooperating Bank Guarantee 4 CRISIL A4+
Cash Credit 5.5 CRISIL BB+/Stable/Issuer Not Cooperating Cash Credit 5.5 CRISIL BB+/Stable
Corporate Loan 5.5 CRISIL BB+/Stable/Issuer Not Cooperating Corporate Loan 5.5 CRISIL BB+/Stable
Letter of Credit 6 CRISIL A4+/Issuer Not Cooperating Letter of Credit 6 CRISIL A4+
Proposed Long Term Bank Loan Facility 1.02 CRISIL BB+/Stable/Issuer Not Cooperating Proposed Long Term Bank Loan Facility 1.02 CRISIL BB+/Stable
Standby Line of Credit .75 CRISIL BB+/Stable/Issuer Not Cooperating Standby Line of Credit .75 CRISIL BB+/Stable
Term Loan 2.23 CRISIL BB+/Stable/Issuer Not Cooperating Term Loan 2.23 CRISIL BB+/Stable
Total 25 -- Total 25 --
Links to related criteria
CRISILs Approach to Financial Ratios
CRISILs Bank Loan Ratings - process, scale and default recognition
Framework for Assessing Information Adequacy Risk
Rating criteria for manufaturing and service sector companies
CRISILs Bank Loan Ratings
CRISILs Criteria for rating short term debt
The Rating Process
Understanding CRISILs Ratings and Rating Scales

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