Rating Rationale
Brickwork Ratings assigns ‘BWR BB+’ & ‘BWR A4+’ rating for Bank Loan
Facilities amounting to ₹ 14.00 Crore of Tranztar Commercial Vehicle
Application Limited .
Brickwork Ratings (BWR) has assigned the following Ratings1 for the Bank Loan Facilities
amounting to ₹ 14.00 Crores of Tranztar Commercial Vehicle Application Limited
sanctioned/availed from State bank of India:
Limit
(₹ Cr)
Tenure
Rating
Fund Based Limit
Cash Credit
5.00
Long
Term
BWR BB +
( BWR Double B Plus)
(Outlook- Stable)
Non-Fund Based Limit
LC
BG *
FC *
Total
9.00
(1.00)
(1.00)
14.00
Short
Term
BWR A4+
(BWR A Four Plus)
Facility
(INR Fourteen Crores Only)
*BG and FC are sub limits of LC.
BWR has principally relied on audited financials upto FY14 and projected financials of FY15,
publicly available information and information /clarification provided by the Company’s
management.
The rating factors, inter-alia, the promoters’ background and experience, independent directors
within the company and y-o-y growth in sales. The ratings however are constrained by low net
cash accruals to total debt, low debt service coverage ratio, vulnerability of margins to
fluctuations in prices of raw materials due to cyclicality associated with steel industry and
sustenance in stiff completion due to the nature of industry.
Background
Tranztar Commercial Vehicle Application Ltd was established as a Limited Co. in the year 2012.
The entity has been carrying out the business of manufacturing of various types trailers and
tippers. The state of Art Facility is located in Bhuj. The operations are carried out in two shifts. It
has two group concerns, AMW Motors Ltd and AMW Auto Components Ltd.
1
Please refer to www.brickworkratings.com for definition of the Ratings
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1
10 Oct 2014
Management Profile
The promoter of the company is Mr Aniruddha Bhuwalka , aged about 40 years, has an
experience of around 15 years in this field. He has completed his graduation in US. Mr Nitin
Chamaria, CA and MBA from IIM Calcutta has an experience of around 8 years. He is the
director of the company. Mr A. Ram Subramaniam is an engineer who has an experience of
around 40 years. He is an non-executive director. Mr Ms Johar, aged around 50 years , having
an experience of around 25 years, looks after administration of plant. He too is non-executive
director.
Financial Performance
The Net Sales stand at ₹ 54.11 crores in FY14 against sales of ₹ 22.55 crores in FY13. The Net
Profit has increased from ₹ 0.02 crores in FY13 to ₹ 0.20 crores in FY14. The current ratio
stands at 1.16 in FY 14 against 1.38 in FY 13.
Rating Outlook
The rating reflects the experience of the Promoters in this Industry. The firm’s ability to
strengthen its cash accruals, improve its margins and sustain in stiff competition will be the key
rating sensitivities.
Analyst Contact
Relationship Contact
[email protected]
[email protected]
Phone
Media Contact
1-860-425-2742
[email protected]
Disclaimer: Brickwork Ratings (BWR) has assigned the rating based on the information obtained from the issuer and other reliable sources,
which are deemed to be accurate. BWR has taken considerable steps to avoid any data distortion; however, it does not examine the precision or
completeness of the information obtained. And hence, the information in this report is presented “as is” without any express or implied warranty
of any kind. BWR does not make any representation in respect to the truth or accuracy of any such information. The rating assigned by BWR
should be treated as an opinion rather than a recommendation to buy, sell or hold the rated instrument and BWR shall not be liable for any losses
incurred by users from any use of this report or its contents. BWR has the right to change, suspend or withdraw the ratings at any time for any
reasons.
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10 Oct 2014