Rating Rationale

December 27, 2014

Mumbai

SPL Forge

Rating Suspended

Total Bank Loan Facilities Rated	Rs.24 Million
Long Term Rating	Suspended

(Refer to Annexure 1 for Facility-wise details)

CRISIL has suspended its ratings on the bank facilities of SPL Forge (SPLF; part of the Sunshine group). The suspension of ratings is on account of non-cooperation by SPLF with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SPLF is yet to provide adequate information to enable CRISIL to assess SPLF'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 Group

For arriving at its ratings, CRISIL has combined the business and financial risk profiles of SPLF, Sunshine Fasteners Pvt Ltd (SFPL), and SPL Fasteners Pvt Ltd (SPLFPL). This is because the three companies, together referred to as the Sunshine group, are in the same line of business, and have a common management team and operational and financial linkages.

Incorporated in 2006, SFPL is promoted by Mr. Parsottambhai Patel and his family members. The company manufactures stainless steel fasteners, such as bolts, screws, nuts, washers, and screws. Its manufacturing facility is in Wadhwan (Gujarat).

Incorporated in 2008, SPLFPL is promoted by Mr. Hirenbhai Patel and his family members. The company trades in stainless steel and high-tensile fasteners.

Incorporated in 2011, SPLF is promoted by Mr. Hirenbhai Patel and his family members. The company manufactures high-tensile fasteners, such as bolts, screws, nuts, washers, and screws. Its manufacturing facility is in Gandhinagar (Gujarat). It started its operations in 2012-13.

Annexure 1 - Details of various bank facilities

Current facilities			Previous facilities
Facility	Amount (Rs.Million)	Rating	Facility	Amount (Rs.Million)	Rating
Cash Credit	10	Suspended	Cash Credit	10	CRISIL BB/Stable
Term Loan	14	Suspended	Term Loan	14	CRISIL BB/Stable
Total	24	--	Total	24	--

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Last updated: August, 2014

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December 27, 2014	http://www.crisil.com