November 28, 2013

Mumbai

Menon Pistons Limited

Ratings suspended

Total Bank Loan Facilities Rated
Rs.400 Million
Long-Term Rating
Suspended
Short-Term Rating
Suspended

(Refer to Annexure 1 for details on facilities)

CRISIL has suspended its ratings on the bank facilities of Menon Pistons Ltd (MPL). The suspension of ratings is on account of non-cooperation by MPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, MPL is yet to provide adequate information to enable CRISIL to assess MPL’s ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria ‘Information Availability Risk in Credit Ratings’.

About the Company

MPL was promoted in 1971 in Shirol, Kolhapur (Maharashtra) by the late Mr. Chandra Menon and Mr. Ram Menon. It is now managed by Mr. Ram Menon’s son, Mr. Sachin Menon. MPL manufactures alloy pistons and piston pins for four-wheelers and heavy commercial vehicles. It is one of the major piston manufacturers in India.

Annexure 1 - Details of various bank facilities

Current facilities
Previous facilities
Facility
Amount
(Rs. Million)
Rating
Facility
Amount
(Rs. Million)
Rating
Bill Discounting
10
Suspended
Bill Discounting
10
CRISIL BBB+/Stable
Cash Credit
180
Suspended
Cash Credit
180
CRISIL BBB+/Stable
Letter of Credit
90
Suspended
Letter of Credit
90
CRISIL A2
Packing Credit
20
Suspended
Packing Credit
20
CRISIL A2
Rupee Term Loan
100
Suspended
Rupee Term Loan
100
CRISIL BBB+/Stable
Total
400
--
Total
400
--

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About CRISIL Ratings
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Last updated: May, 2013

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November 28, 2013

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