RATING RATIONALE
24Nov2022

India Steel Works Ltd

Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs.33.00 Crs. of India Steel Works Ltd based on the best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(08 Dec 2021)
Present
Fund Based 31.00 31.00 Long Term BWR D
Downgrade/ISSUER NOT COOPERATING*
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Non Fund Based 2.00 2.00 Short Term BWR D
Downgrade/ISSUER NOT COOPERATING*
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Grand Total 33.00 33.00 (Rupees Thirty Three 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

The rating action takes into account intimation made to the stock exchange by the company and notes the defaults on its debt servicing as reported in the annual report and simultaneously qualified opinion for Q2FY23 unaudited financials. Also, despite BWR’s repeated attempts via emails and phone calls, the company has not provided the requisite information/clarification for monitoring the ratings. BWR has reviewed the rating on the basis of the best available information and reaffirmed the rating at BWR D /BWR D ISSUER NOT COOPERATING*.

The lenders may note to exercise due caution while using the above ratings, which mention “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/banker’s interaction.

*Issuer did not cooperate; based on best available information.

LIMITATIONS OF THE RATING

Information availability risk is a key factor in the assessment of credit risk as generally, non-cooperation 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

India Steel Works Limited (ISWL or The Company) was formed as a private limited company in 1987 and was founded by Mr. Harbanslal Gupta. The Company began commercial operations in 1990. The Company is engaged in the business of steel manufacturing and trading Cobalt derivatives, Bismuth & Tungsten derivatives and organic intermediates include Tartaric acid derivatives and other intermediates. It was listed on BSE in 1992.

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. View Previous Document

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

N.A.

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 31.00
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
NA
NA
08Dec2021
BWR D
(Downgrade/ISSUER NOT COOPERATING*)
04Dec2020
BWR C
(Downgrade/ISSUER NOT COOPERATING*)
18Jun2019
BWR BB+Stable
(Downgrade/ISSUER NOT COOPERATING*)
Non Fund Based ST 2.00
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
NA
NA
08Dec2021
BWR D
(Downgrade/ISSUER NOT COOPERATING*)
04Dec2020
BWR A4
(Downgrade/ISSUER NOT COOPERATING*)
18Jun2019
BWR A4+
(Downgrade/ISSUER NOT COOPERATING*)
Grand Total 33.00 (Rupees Thirty Three Crores Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - Simple

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

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
India Steel Works 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 Dombivli Nagari Sahakari Bank Ltd. Cash CreditSanctioned 20.00 _ 20.00
2 Dombivli Nagari Sahakari Bank Ltd. Bank GuaranteeSanctioned _ 2.00 2.00
3 Kotak Mahindra Bank Working Capital Demand LoanSanctioned 7.00 _ 7.00
4 Kotak Mahindra Bank Cash CreditSanctioned 4.00 _ 4.00
Total 31.00 2.00 33.00
TOTAL (Rupees Thirty Three Crores Only)
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About Brickwork Ratings

Brickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. BWR has rated over 12,000 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partner. BWR has its corporate office in Bengaluru and a country-wide presence with its offices in Ahmedabad, Chandigarh, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi along with representatives in 150+ locations.

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