RATING RATIONALE
04May2021

Shree Hanuman Loha Ltd

Brickwork Ratings downgrades the ratings for the Bank Loan Facilities of Rs. 9.00 Crs. of Shree Hanuman Loha Ltd based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(15 Nov 2019)
Present
Fund Based 9.00 9.00 Long Term BWR BBB+ (Stable)
Upgraded
BWR BB +
Downgrade/IssuerNonCooperation
Non Fund Based (4.50) (4.50) Short Term BWR A3+
Assigned
BWR A4 +
Downgrade/IssuerNonCooperation
Grand Total 9.00 9.00 (Rupees Nine Crores Only)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure
*Issuer did not cooperate; based on best available information.


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

Brickwork Ratings downgrades the long-term and short-term rating to BWR BB+/BWR A4+; Issuer not Cooperating for the Bank Loan Facilities of Shree Hanuman Loha Ltd. amounting to Rs. 9.00 Crores, based on the best available information as the firm has not provided any information/papers.

BWR initially rated Shree Hanuman Loha Ltd. in the year 2018 and the rating assigned was BWR BBB with a stable outlook. In August 2019, the rating was not reviewed. In November 2019, the long-term rating was upgraded to BWR BBB+with a stable outlook, and the short-term rating was assigned at A3+. In May 2021 BWR downgraded the rating to BWR BB+/A4+ Issuer Not Cooperating* as the client did not provide the information to reassess the assigned rating and requested for withdrawal of rating but did not provide NOC from the bank.

BWR took up with the client for obtaining the relevant and latest paper/ information for the review of the rating via emails dated 5th, 19th October 2020, 2nd, 17th November 2020, 12th January 2021, 2nd February, 17th March, 2021, 7th and 14th April, 2021. BWR has contacted the Client via telephone on 17th March, and 7th April, 2021 and via Whatsapp message on 27th March and 7th April, 2021. On 10th February 2021, BWR received a request for withdrawal of the assigned rating via email along with a No Objection Certificate from the bank. However, MIS clearance was not received and as the client has not complied with our withdrawal policy, we are not able to withdraw the rating. BWR took up with the banker to obtain feedback regarding the conduct of the account via emails dated 5th, 19th October, 2nd, 17th November 2020, 12th January, 2nd February, 7th, 19th, and 21st April 2021 to which BWR did not receive any response. In the absence of adequate information from the firm, BWR is unable to assess the firm’s financial performance hence based on the best available information Brickwork Ratings has downgraded the long-term rating to BWR BB+ and the short-term rating to BWR A4+ under Issuer NotCooperating* category.

LIMITATIONS OF THE RATING

Information availability risk is a key factor in the assessment of credit risk as generally, noncooperation by the rated entities to provide the required information for a review of the assigned rating may also be accompanied by financial stress.

ABOUT THE ENTITY

Shree Hanuman Loha Limited was incorporated on 26 August 1985 in Raipur, Chhattisgarh. Major promoters of the company are Mr. Amit Jindal, Mr. Pawan Kumar Agrawal, Mr. Suresh 3 Kumar Agrawal, Mr. Mithlesh Tiwary and Mr. Manish Agrawal. SHLL manufactures various steel products such as billets, ingots, angles, flats and channels. Its manufacturing plant is loctaed at Raipur, Chhattisgarh with an installed capacity of 89,500 MTPA. SHLL’s steel plant is fully integrated. The company manufactures billets and ingots, which it then uses for the production of structural steel products such as angles, channels and flats. 

KEY FINANCIAL INDICATORS

Please refer to the following link for the previous detailed rationale that captures the Key Financials Drivers and their Description, Liquidity Position. Rating Sensitivities, Key Financial Indicators.

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

Brickwork Ratings downgrades the long-term and reaffirms short-term rating to BWRB-/BWR A4; Issuer not Cooperatingfor the Bank Loan Facilities of Swastik Wires amounting to Rs. 6.75 Crores, based on the best available information as thefirm has not provided any information/papers.

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2021) 2021 (History) 2020 2019 2018
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating Date Rating
Fund Based LT 9.00
BWR BB+
(Downgrade/IssuerNonCooperation)
NA
NA
NA
NA
NA
NA
06Aug2018
BWR BBB (Stable)
(Assigned)
FB SubLimit LT NA
NA
NA
NA
NA
NA
15Nov2019
BWR BBB+ (Stable)
(Upgraded)
NA
NA
NFB SubLimit ST (4.50)
BWR A4+
(Downgrade/IssuerNonCooperation)
NA
NA
NA
NA
15Nov2019
BWR A3+
(Assigned)
NA
NA
Grand Total 9.00 (Rupees Nine Crores Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - NA

BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.

Hyperlink/Reference to applicable Criteria
Analytical Contacts

Pallavi Meher

Ratings Analyst pallavi.m@brickworkratings.com

Sushil Kumar Chitkara

Director - Ratings Board : +91 22 2831 1426, +91 22 2831 1439 sushilkumar.c@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Shree Hanuman Loha Ltd
ANNEXURE-I
Details of Bank Facilities rated by BWR
SL.No. Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 Cash CreditSanctioned 9.00 _ 9.00
Sub-Limit (Bank Guarantee) Proposed (4.50)
Total 9.00 0.00 9.00
TOTAL (Rupees Nine Crores Only)
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