Rating Rationale
July 30, 2020 | Mumbai
GSS Infotech Limited
Issuer not cooperating, based on best-available information; Ratings continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'
 
Rating Action
Total Bank Loan Facilities Rated Rs.60 Crore
Long Term Rating CRISIL B/Stable (ISSUER NOT COOPERATING)*
Short Term Rating 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 has been consistently following up with GSS Infotech Limited (GSS; part of the GSS group) for obtaining information through letters and emails dated July 10, 2020 and July 15, 2020 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 failed to receive any information on either the financial performance or strategic intent of GSS, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on GSS is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of GSS continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'.

About the Company

GSS, incorporated in 2003, is a CMMI Level 5 company and a provider of information technology and IT-enabled solutions and services to companies worldwide. The company was formerly known as GSS America Infotech Ltd. and changed its name to GSS in March 2011. The day to-day operations of the company are managed by Mr. Bhargav Marepally. The company is listed on the Bombay Stock Exchange and the National Stock Exchange.

Key Financial Indicators
As on / for the period ended March 31  Unit 2020 2019
Operating income Rs crore 139.81 158.78
Reported profit after tax Rs crore 6.06 11.62
PAT margin % 4.33 7.32
Adjusted debt/Adjusted networth Times NA 0.74
Interest coverage Times 9.8 13.65

Any other information: Not applicable

Note on complexity levels of the rated instrument:
CRISIL complexity levels are assigned to various types of financial instruments and are included (where applicable) in the Annexure -- Details of Instrument in this Rating Rationale. For more details on the CRISIL complexity levels, please visit www.crisil.com/complexity-levels.
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 3.25 NA CRISIL A4/Issuer Not Cooperating
NA Proposed Long Term Bank Loan Facility NA NA NA 49.4 NA CRISIL B/Stable/Issuer Not Cooperating
NA Working Capital Term Loan NA NA Not Available 7.35 NA CRISIL B/Stable/Issuer Not Cooperating
*Issuer did not cooperate; based on best-available information
Annexure - Rating History for last 3 Years
  Current 2020 (History) 2019  2018  2017  Start of 2017
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund-based Bank Facilities  LT/ST  56.75  CRISIL B/Stable (Issuer Not Cooperating)*      05-04-19  CRISIL B/Stable (Issuer Not Cooperating)*  12-03-18  CRISIL B/Stable (Issuer Not Cooperating)*      CRISIL B/Stable 
Non Fund-based Bank Facilities  LT/ST  3.25  CRISIL A4 (Issuer Not Cooperating)*      05-04-19  CRISIL A4 (Issuer Not Cooperating)*  12-03-18  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 various bank facilities
Current facilities Previous facilities
Facility Amount (Rs.Crore) Rating Facility Amount (Rs.Crore) Rating
Bank Guarantee 3.25 CRISIL A4/Issuer Not Cooperating Bank Guarantee 3.25 CRISIL A4/Issuer Not Cooperating
Proposed Long Term Bank Loan Facility 49.4 CRISIL B/Stable/Issuer Not Cooperating Proposed Long Term Bank Loan Facility 49.4 CRISIL B/Stable/Issuer Not Cooperating
Working Capital Term Loan 7.35 CRISIL B/Stable/Issuer Not Cooperating Working Capital Term Loan 7.35 CRISIL B/Stable/Issuer Not Cooperating
Total 60 -- Total 60 --
Links to related criteria
Assessing Information Adequacy Risk
CRISILs Approach to Financial Ratios
CRISILs Bank Loan Ratings - process, scale and default recognition
Rating criteria for manufaturing and service sector companies
Rating Criteria for Software Industry
CRISILs Criteria for rating short term debt

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