The ratings reflect VPPL
's order book concentration and lack of experience in coal mining, high gearing levels and reduced operation scale, the agency said.
The group comprises five companies operating in India, organised under two divisions - VEPL and its subsidiaries, VESPL, and Durovalves, which are in the electrical and metallic components business; and VPPL
and its subsidiary, VELPL, which manufacture polymer-based components.
For arriving at its ratings, CRISIL has combined the business and financial risk profiles of Varroc Engineering Pvt Ltd (VEPL), Varroc Exhaust Systems Private Ltd (VESPL), Durovalves, Varroc Polymers Pvt Ltd (VPPL
) and Varroc Elastomers Pvt Ltd (VELPL); collectively referred as Varroc group.