PPAP Automotive Secures Credit Rating Reaffirmation from CRISIL

PPAP Automotive Limited , a key player in the automotive components sector, has received a reaffirmation of its credit ratings from CRISIL, underscoring the company's financial stability and creditworthiness. The rating agency has maintained its ratings for both long-term and short-term facilities, reflecting confidence in PPAP Automotive's financial health.

Rating Details

CRISIL has reaffirmed the following ratings for PPAP Automotive Limited:

Facility Type	Rating	Outlook
Long-term facilities	CRISIL A-	Stable
Short-term facilities	CRISIL A2+	-

These ratings cover total bank loan facilities worth Rs. 200.00 crore, spanning across multiple banks including ICICI Bank, HDFC Bank, Axis Bank, HSBC Bank, and State Bank of India.

Facilities Covered

The reaffirmed ratings apply to various banking facilities utilized by PPAP Automotive:

Cash Credit
Bank Guarantees
Letters of Credit
Term Loans
Proposed Fund-Based Bank Limits

Bank-wise Facility Breakdown

Here's a detailed breakdown of the facilities across different banks:

Bank	Facility Type	Amount (Rs. in Crore)
HDFC Bank	Cash Credit, Term Loan, Bank Guarantee	32.28
ICICI Bank	Cash Credit, Term Loan, Bank Guarantee, Letter of Credit	69.89
Axis Bank	Cash Credit, Term Loan, Bank Guarantee	49.35
HSBC Bank	Cash Credit	10.00
State Bank of India	Cash Credit, Term Loan	16.69
Proposed Fund-Based Bank Limits	-	21.79

Significance of the Ratings

The 'CRISIL A-' rating for long-term facilities indicates adequate safety for timely servicing of financial obligations. The 'Stable' outlook suggests that CRISIL expects PPAP Automotive to maintain a stable financial risk profile over the medium term.

The 'CRISIL A2+' rating for short-term facilities signifies a strong degree of safety regarding timely payment of financial obligations, carrying lower credit risk.

Validity and Implications

The rating letter remains valid until March 31, 2026, providing a long-term perspective on the company's creditworthiness. This reaffirmation may potentially enhance PPAP Automotive's standing with lenders and investors, possibly leading to favorable terms for future financial arrangements.

PPAP Automotive's ability to maintain its credit ratings amidst challenging market conditions demonstrates its financial resilience and effective management of its debt obligations. As the automotive sector continues to evolve, this rating reaffirmation positions the company well for future growth and financial stability.

Investors and stakeholders may view this rating reaffirmation as a positive indicator of PPAP Automotive's financial health and its capacity to meet its financial commitments in a timely manner.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-4.57%	-0.03%	+28.41%	+54.73%	+41.41%	+22.28%

PPAP Automotive , a leading automotive component manufacturer, has announced a final dividend of Rs. 1.5 per equity share, subject to shareholder approval. The company's Board of Directors has recommended this dividend, which represents a 15% return on the face value of Rs. 10 per share.

Dividend Details and Payment Timeline

The proposed dividend, if approved at the upcoming 30th Annual General Meeting (AGM), will be paid to eligible shareholders within 30 days of the AGM. This payout comes with important tax implications that shareholders should be aware of.

Tax Deduction Guidelines

Since April 2020, dividends have become taxable in the hands of shareholders. PPAP Automotive has provided detailed guidelines on the tax deduction at source (TDS) for various categories of shareholders:

For Resident Shareholders:

No tax will be deducted if the total dividend paid does not exceed Rs. 10,000.
A 10% TDS rate applies for shareholders with a valid PAN.
A higher rate of 20% TDS applies for shareholders without a valid PAN or if PAN is not linked with Aadhaar.

For Non-Resident Shareholders:

The general TDS rate is 20% plus applicable surcharge and cess.
Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs) may avail beneficial tax treaty rates, subject to providing necessary documentation.
Special rates apply for certain categories, such as Alternative Investment Funds and Sovereign Wealth Funds.

Important Dates and Document Submission

Shareholders seeking to avail lower or nil TDS rates must submit the required documents by September 19, 2025. The company has provided detailed instructions and forms for various categories of shareholders to ensure proper tax treatment.

Bank Account Update Reminder

PPAP Automotive has urged shareholders to update their bank account details with their Depository Participants (for dematerialized shares) or with the company's Registrar and Share Transfer Agent (for physical shares) to facilitate timely credit of dividends.

Electronic Payment Mandate for Physical Shareholders

In line with SEBI regulations, the company has informed that effective April 1, 2024, dividends to shareholders holding physical shares will be paid only through electronic mode. These shareholders must furnish their PAN, nomination choice, contact details, bank account information, and specimen signatures to receive dividend payments.

The company emphasizes the importance of complying with these requirements to ensure smooth processing of dividends and appropriate tax deductions. Shareholders are advised to review the detailed communication provided by PPAP Automotive and take necessary actions before the specified deadlines.

This dividend announcement, coupled with the comprehensive tax guidelines, demonstrates PPAP Automotive's commitment to shareholder value and regulatory compliance in an evolving tax landscape.