RATING RATIONALE
26Mar2022

Supreme Engineering Ltd

Brickwork Ratings downgrades the ratings for the Bank Loan Facilities of Rs.71.48 Crs. of Supreme Engineering Ltd (SEL or The Company) based on the best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(17 Mar 2021)
Present
Fund Based 40.48 40.48 Long Term BWR BB+/Negative
Downgrade
BWR D
Downgrade/ISSUER NOT COOPERATING*
Non Fund Based 31.00 31.00 Short Term BWR A4+
Downgrade
BWR D
Downgrade/ISSUER NOT COOPERATING*
Grand Total 71.48 71.48 (Rupees Seventy One Crores and Forty Eight lakhs 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.
Note: The company has availed Rs. 7.00 Cr CC from Thane Bharat Shakari Bank. As per bank sanction, the maximum combined limit of CC & LC would be capped at Rs. 70.00 Crs. out of the total non-fund-based facilities of Rs.46.00 Crs. (LC(I/F) of Rs.45 Crs. and BG(I) of Rs.1.00 Crs).


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

In view of the banker’s information about the asset classification of the company under NPA, the non-availability of the information, non-submission of monthly ‘No Default Statement’ as per regulatory requirements, and lack of cooperation from the issuer, Brickwork Ratings has downgraded the rating from 'BWR BB+(Negative)/A4+ to 'BWR D and migrated the rating to ISSUER NOT COOPERATING category for the bank loan facilities amounting to Rs.71.48 Crs. of SEL.

The lenders may note to exercise due caution while using the above ratings, which mentions “ISSUER NOT COOPERATING” since the ratings lack any projections of a forward-looking component as it is arrived at based on the best available information on the entity without any management interaction.

BWR took up with the issuer to provide the required information over emails and through telephone calls. Despite the best efforts of BWR to get at least the minimum required information for a review, the entity has not provided the same. In the absence of adequate information from the issuer, BWR is unable to assess the issuer’s financial performance and its ability to service its debt and maintain a valid rating.

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. Users of the credit ratings should therefore take into account the possible deterioration in the credit quality of the rated entity arising from its non-transparency and withholding of information required for a review of the rating.

ABOUT THE ENTITY

Supreme Engineering Ltd (SEL) is a Navi Mumbai-based company incorporated in 1987 by Mr. Ratan Prakash Chowdhri, Mr. Sanjay Ratan Chowdhri, and Mrs. Lalita Chowdhri. The company has two manufacturing units located at Rabale and Khopoli. Rabale unit is engaged in the processing of steel and manufacturing of steel coils and bars and Khopoli unit is engaged in manufacturing of superalloys. The company is listed on NSE.

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.

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2022) 2022 (History) 2021 2020 2019
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating Date Rating
Fund Based LT 40.48
BWR D
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
17Mar2021
BWR BB+Negative
(Downgrade)
18Dec2020
BWR BBB-Negative
(Reaffirmation)
25Oct2019
BWR BBB-Negative
(Reaffirmation)
Non Fund Based ST 31.00
BWR D
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
17Mar2021
BWR A4+
(Downgrade)
18Dec2020
BWR A3
(Reaffirmation)
25Oct2019
BWR A3
(Reaffirmation)
Grand Total 71.48 (Rupees Seventy One Crores and Forty Eight lakhs 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.

Analytical Contacts

Gaurav Agnihotri

Senior Rating Analyst gaurav.a@brickworkratings.com

Chintan Dilip Lakhani

Director- Ratings chintan.l@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Supreme Engineering Ltd
ANNEXURE-I
Details of Bank Facilities rated by BWR
SL.No. Name of the Bank/Lender Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 Bank of India Term LoanSanctioned 0.48 _ 0.48
2 Bank of India Cash CreditSanctioned 40.00 _ 40.00
3 Bank of India Bank GuaranteeSanctioned _ 1.00 1.00
4 Bank of India Letter of CreditSanctioned _ 30.00 30.00
Total 40.48 31.00 71.48
TOTAL (Rupees Seventy One Crores and Forty Eight lakhs Only)
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About Brickwork Ratings

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