Rating Rationale
February 27, 2021 | Mumbai
Goldstar Power 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 RatedRs.28 Crore
Long Term RatingCRISIL B /Stable (ISSUER NOT COOPERATING*)
Short Term RatingCRISIL 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 Goldstar Power Limited (GBPL) for obtaining information through letters and emails dated November 21, 2020 and January 30, 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 GBPL, which restricts CRISIL Ratings’ ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on GBPL is consistent with ‘Assessing Information Adequacy Risk’. Based on the last available information, the ratings on bank facilities of GBPL continues to be ‘CRISIL B/Stable/CRISIL A4 Issuer not cooperating’.

About the Company

GBPL, established in 1991, manufactures batteries ranging from 35 ampere hour (AH; for small cars) to 200 AH (for large trucks and inverters). Its manufacturing unit is in Jamnagar (Gujarat). GBPL is managed by Mr. Muljibhai Pansara and his brother, Mr. Amrutlal Pansara, and sons, Mr. Navneet Pansara and Mr. Vishal Pansara.

Key Financial Indicators

As on / for the period ended March 31

Unit

2020

2019

Operating income

Rs crore

37

37

Reported profit after tax

Rs crore

0

1

PAT margins

%

1.04

2.77

Adjusted Debt/Adjusted Net worth

Times

0.44

0.40

Interest coverage

Times

1.35

1.71

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

Bill Discounting

NA

NA

NA

9

NA

CRISIL B/Stable/Issuer Not Cooperating

NA

Cash Credit

NA

NA

NA

6

NA

CRISIL B/Stable/Issuer Not Cooperating

NA

Corporate Loan

NA

NA

NA

2

NA

CRISIL B/Stable/Issuer Not Cooperating

NA

Letter of Credit

NA

NA

NA

5

NA

CRISIL A4/Issuer Not Cooperating

NA

Proposed Long Term Bank Loan Facility

NA

NA

NA

1.9

NA

CRISIL B/Stable/Issuer Not Cooperating

NA

Term Loan

NA

NA

Not Available

4.1

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 23.0 CRISIL B /Stable(Issuer Not Cooperating)*   --   -- 28-11-19 CRISIL B /Stable(Issuer Not Cooperating)* 08-08-18 CRISIL B /Stable(Issuer Not Cooperating)* CRISIL B /Stable(Issuer Not Cooperating)*
Non-Fund Based Facilities ST 5.0 CRISIL A4 (Issuer Not Cooperating)*   --   -- 28-11-19 CRISIL A4 (Issuer Not Cooperating)* 08-08-18 CRISIL A4 (Issuer Not Cooperating)* CRISIL A4 (Issuer Not Cooperating)*
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
Bill Discounting 9 CRISIL B /Stable(Issuer Not Cooperating)* Bill Discounting 9 CRISIL B /Stable(Issuer Not Cooperating)*
Cash Credit 6 CRISIL B /Stable(Issuer Not Cooperating)* Cash Credit 6 CRISIL B /Stable(Issuer Not Cooperating)*
Corporate Loan 2 CRISIL B /Stable(Issuer Not Cooperating)* Corporate Loan 2 CRISIL B /Stable(Issuer Not Cooperating)*
Letter of Credit 5 CRISIL A4 (Issuer Not Cooperating)* Letter of Credit 5 CRISIL A4 (Issuer Not Cooperating)*
Proposed Long Term Bank Loan Facility 1.9 CRISIL B /Stable(Issuer Not Cooperating)* Proposed Long Term Bank Loan Facility 1.9 CRISIL B /Stable(Issuer Not Cooperating)*
Term Loan 4.1 CRISIL B /Stable(Issuer Not Cooperating)* Term Loan 4.1 CRISIL B /Stable(Issuer Not Cooperating)*
Total 28 - Total 28 -
* - 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

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