Rating Rationale
June 20, 2018 | Mumbai
MFL India Limited
Issuer not cooperating, based on best-available information; Ratings Migrated to 'CRISIL B/Stable/CRISIL A4  Issuer Not Cooperating' 
 
Rating Action
Total Bank Loan Facilities Rated Rs.40 Crore
Long Term Rating CRISIL B/Stable (ISSUER NOT COOPERATING; Migrated from 'CRISIL BB/Stable')* 
Short Term Rating CRISIL A4 (ISSUER NOT COOPERATING; Migrated from 'CRISIL A4+'')* 
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 MFL India Limited (MFL) for obtaining information through mails and letter dated June 01, 2018 and June 11, 2018. 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 the company. This restricts CRISIL's ability to take a forward-looking view on its credit quality. CRISIL believes information available on MFL is consistent with 'Scenario 4' outlined in the 'Framework for Assessing Consistency of Information', Based on the last available information, CRISIL has migrated the ratings to 'CRISIL B/Stable/CRISIL A4' Issuer Not Cooperating'.

About the Company

MFL was incorporated in 1981 as a public limited company and listed on the Bombay Stock Exchange. The company was subsequently acquired by Dynamic Movers Pvt Ltd (DMPL), promoted by Mr Anil Thukral, and merged with DMPL in April 2010. MFL provides transportation services to various industries such as automobile, cement, infrastructure, and construction, and to integrated metal players.

Key Financial Indicators
Particulars Unit 2017 2016
Revenue Rs. Cr. 59.30 147.43
Profit After Tax (PAT) Rs. Cr. -48.73 -0.21
PAT Margins % -82.17 -0.15
Adjusted debt/adjusted networth Times -6.31 1.88
Interest coverage Times -3.53 2.21

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 Cash credit NA NA NA 33.5 CRISIL B/Stable/ Issuer Not Cooperating
NA Bank guarantee NA NA NA 1.0 CRISIL A4/Issuer Not Cooperating
NA Proposed long-term bank loan facility NA NA NA 1.75 CRISIL B/Stable/ Issuer Not Cooperating
NA Line of credit NA NA NA 3.75 CRISIL B/Stable/ Issuer Not Cooperating
*Issuer did not cooperate; based on best-available information
Annexure - Rating History for last 3 Years
  Current 2018 (History) 2017  2016  2015  Start of 2015
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund-based Bank Facilities  LT/ST  39.00  CRISIL B/Stable (Issuer Not Cooperating)*      27-09-17  CRISIL BB/Stable  07-09-16  CRISIL BB+/Stable      CRISIL BB+/Stable 
Non Fund-based Bank Facilities  LT/ST  1.00  CRISIL A4 (Issuer Not Cooperating)*      27-09-17  CRISIL A4+  07-09-16  CRISIL A4+      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 1 CRISIL A4/Issuer Not Cooperating Bank Guarantee 1 CRISIL A4+
Cash Credit 33.5 CRISIL B/Stable/Issuer Not Cooperating Cash Credit 33.5 CRISIL BB/Stable
Line of Credit 3.75 CRISIL B/Stable/Issuer Not Cooperating Line of Credit 3.75 CRISIL BB/Stable
Proposed Long Term Bank Loan Facility 1.75 CRISIL B/Stable/Issuer Not Cooperating Proposed Long Term Bank Loan Facility 1.75 CRISIL BB/Stable
Total 40 -- Total 40 --
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 Criteria for rating short term debt

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