RATING RATIONALE
30Mar2023

Kamal Trading Corporation.

Brickwork Ratings downgrades the rating for the Bank Loan Facilities of Rs. 52.38 Crs. of Kamal Trading Corporation. based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(01 Apr 2022)
Present
Fund Based 52.38 52.38 Long Term BWR BB+ /Stable
removal from ISSUER NOT COOPERATING* category/Upgraded
BWR BB - /Stable
ISSUER NOT COOPERATING* /Downgrade
Grand Total 52.38 52.38 (Rupees Fifty Two Crores and Thirty 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.


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

Brickwork Ratings (BWR) has consistently taken up with the firm through emails and telephone calls to provide the requisite information for the review of the rating. Despite the best efforts of BWR to get at least the minimum required information for a review, the firm remains non-cooperative. Further, the firm is irregular in the submission of monthly ‘No Default Statement’ (NDS) in deviation from the extant guidelines. In the absence of adequate information and lack of cooperation from the firm, BWR is unable to assess the firm's financial performance and its ability to service its debt and maintain a valid rating. Hence, based on the best available information, lack of management cooperation, irregular NDS submission, and in the terms of extant regulatory requirements, BWR has downgraded the rating to BWR BB-/Stable and migrated it to the ISSUER NOT COOPERATING* category.

*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 rating 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

Kamal Trading Corporation (KTC) a partnership firm based at Hubli was established in 1970, by Mr. Kamalnayan K Mehta, Ms. Lata K Mehta, Mr. Mohit K. Mehta and Skyler Enterprises Pvt Ltd (erstwhile KKSS Builders Pvt Ltd.). The firm is involved in the trading of Iron Steel and cement in pan India. The firm's major distribution facilities are based in Hubli and Belgaum and Goa. The firm trades Steel plates, H.R Sheets, Angles, Channel, Joist, Round, Flats, C.R Sheets, TMT Steel and Galvanised Products. All the partners have experience in the iron & steel field for around four decades. The firm is an authorized distributor of JSW Neosteel TMT bars and JSW HR plates. The firm has three associate concerns involved in similar lines of business namely Kamal Ispat, Kiran Agencies and Skyler Enterprises Pvt Ltd (erstwhile KKSS Builders Pvt Ltd.).

Note: Information available with BWR as on 01 Apr 2022

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

India Ratings continued the ratings of Kamal Trading Corporation under ISSUER NOT COOPERATING* category on account of management non cooperation for surveillance review vide its press release dated 03Jun2022.

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

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2023) 2022 2021 2020
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 52.38
BWR BB-/Stable
(ISSUER NOT COOPERATING* /Downgrade)
01Apr2022
BWR BB+ Stable
(removal from ISSUER NOT COOPERATING* category/Upgraded)
03Dec2021
BWR BB- Stable
(Downgrade/ISSUER NOT COOPERATING*)
13Jul2020
BWR BBStable
(Downgrade/ISSUER NOT COOPERATING*)
Grand Total 52.38 (Rupees Fifty Two Crores and Thirty Eight lakhs 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

Revathy Thamizharasu

Rating Analyst revathy.t@brickworkratings.com

Saakshi Kanwar

Associate Director - Ratings saakshi.k@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Kamal Trading Corporation.
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 State Bank Of India (SBI) Cash CreditSanctioned 35.00 _ 35.00
2 State Bank Of India (SBI) Cash CreditSanctioned 5.00 _ 5.00
3 State Bank Of India (SBI) Cash CreditProposed 2.00 _ 2.00
4 State Bank Of India (SBI) GECLSanctioned 10.38 _ 10.38
Total 52.38 0.00 52.38
TOTAL (Rupees Fifty Two Crores and Thirty Eight lakhs Only)
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