Rating Rationale
May 22, 2018 | Mumbai
RCI Industries and Technologies Limited
Ratings reaffirmed and withdrawn
 
Rating Action
Total Bank Loan Facilities Rated Rs.150 Crore
Long Term Rating CRISIL BBB-/Stable (Reaffirmed and Withdrawn)
Short Term Rating CRISIL A3 (Reaffirmed and Withdrawn)
1 crore = 10 million
Refer to annexure for Details of Instruments & Bank Facilities
Detailed Rationale

CRISIL has reaffirmed and subsequently withdrawn its ratings on the bank facilities of RCI Industries and Technologies Limited (RCI). The ratings have been withdrawn after receipt of no-objection certificates from The Jammu and Kashmir Bank Limited, Union Bank of India, Indian Bank, State Bank of India, The South Indian Bank Limited, United Bank of India and Corporation Bank. The rating action is in line with CRISIL's policy on withdrawal of bank loan ratings.

Analytical Approach

For arriving at the rating, CRISIL had combined the business and financial risk profiles of RCI and its two subsidiaries, RCI Skills & Social Development Pvt Ltd and RCI World Trade Link DMCC, as these entities, together referred to as the RITL Group, are under a common management, and have significant business and financial linkages.

About the Company

RITL incorporated in the year 1992, manufactures and exports ferrous and nonferrous metal. The company is based out of Delhi with manufacturing facility located at Baddi, Himachal Pradesh.
 
RCI World Trade Link DMCC was formed in 2014 and is a wholly owned subsidiary of RITL. This is registered with Dubai Multi Commodities Centre, Government of Dubai.
 
RCI Skills & Social Development Private Limited, is a wholly owned subsidiary of RITL, was formed in 2014 and conducts vocational training program for underprivileged

Key Financial Indicators
Particulars Unit 2018 2017
Revenue Rs cr 2037.3 1756.7
Profit after tax Rs cr 32.8 35.8
PAT margin % 1.6 2.0
Adjusted debt/adjusted networth Times 0.5 1.0
Interest coverage Times 3.3 4.2

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 crore)
Rating assigned with outlook
NA Cash credit NA NA NA 75 Withdrawn
NA Letter of credit NA NA NA 75 Withdrawn
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  75.00  Withdrawn     10-08-17  CRISIL BBB-/Stable    --    --  -- 
            28-07-17  CRISIL BBB-/Stable           
Non Fund-based Bank Facilities  LT/ST  75.00  Withdrawn     10-08-17  CRISIL A3    --    --  -- 
            28-07-17  CRISIL A3           
All amounts are in Rs.Cr.
Annexure - Details of various bank facilities
Current facilities Previous facilities
Facility Amount (Rs.Crore) Rating Facility Amount (Rs.Crore) Rating
Cash Credit 75 Withdrawn Cash Credit 75 CRISIL BBB-/Stable
Letter of Credit 75 Withdrawn Letter of Credit 75 CRISIL A3
Total 150 -- Total 150 --
Links to related criteria
CRISILs Bank Loan Ratings - process, scale and default recognition
Criteria for rating trading companies
Rating criteria for manufaturing and service sector companies
CRISILs Approach to Recognising Default
CRISILs Bank Loan Ratings
CRISILs Criteria for Consolidation

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