August 31, 2012

Mumbai

V.S.T. Tillers Tractors Limited

Ratings suspended

Total Bank Loan Facilities Rated	Rs.500 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 V.S.T. Tillers Tractors Limited (VTTL). The suspension of ratings is on account of non-cooperation by VTTL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, VTTL is yet to provide adequate information to enable CRISIL to assess VTTL’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

Set up in 1965 by Mr. Vellore Singaravelu Tiruvenkadasamy Mudaliar family, Bangalore-based VTTL manufactures power tillers, tractors (18 horsepower), and diesel engines, and trades in other agricultural machinery. VTTL is India’s leading manufacturer of power tillers, with 65 per cent of its revenues coming from the same. In 2008-09 (refers to financial year, April 1 to March 31), the company sold 16,691 tillers.

Annexure 1 - Details of various bank facilities

Current facilities			Previous facilities
Facility	Amount (Mln)	Rating	Facility	Amount (Mln)	Rating
Cash Credit	50	Suspended	Cash Credit	50	CRISIL A+/Stable
Letter of credit & Bank Guarantee	60	Suspended	Letter of credit / Bank Guarantee	60	CRISIL A1+
Proposed Long-Term Bank Loan Facility	390	Suspended	Proposed Long-Term Loan	200	CRISIL A+/Stable
			Proposed Cash Credit	190	CRISIL A+/Stable
Total	500	--	Total	500	--

Media Contacts	Analytical Contacts	CRISIL Rating Desk
Mitu Samar Director , Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1838 E-mail: mitu.samar@crisil.com Tanuja Abhinandan Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1818 Email: tanuja.abhinandan@crisil.com	Subodh K Rai Senior Director - CRISIL Ratings Tel: +91-0124-672 2000 Email: subodh.rai@crisil.com Vasudevan R Director - CRISIL Ratings Tel: +91-44-6656 3100 Email:vasudevan.r@crisil.com	Tel: +91-22-3342 3047/3342 3064 Email:CRISILratingdesk@crisil.com

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Last updated: April 30, 2012

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