RATING RATIONALE
23Jun2023

Supreme Engineering Ltd

Brickwork Ratings reaffirms the ratings of the long-term and short term bank loan facilities of Supreme Engineering Ltd for Rs. 71.48 Crs, and continues the ratings into the ISSUER NOT COOPERATING category based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(26 Mar 2022)
Present
Fund Based 40.48 40.48 Long Term BWR D
Downgrade/ISSUER NOT COOPERATING*
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Non Fund Based 31.00 31.00 Short Term BWR D
Downgrade/ISSUER NOT COOPERATING*
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
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.


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

Brickwork Ratings has reaffirmed the ratings of the long-term and short term bank loan facilities of Supreme Engineering Ltd for Rs.71.48 Crs at BWR D/BWR D and has retained the ratings in the "Issuer Not Cooperating" category, based on best available information as the issuer did not cooperate.

BWR had initially assigned a rating of BWR BBB-/Negative/BWR A3 for the Bank Loan facility on 25 Oct 2019. On 18 Dec 2020, the ratings were reaffirmed at to BWR BBB-/Negative/BWR A3. On 17 March 2021, the long-term and short ratings were downgraded to BWR BB+/Negative/A4+. On 26 March 2022, the long-term and short-term ratings were downgraded to BWR D/BWR D and migrated into "Issuer Not Cooperating" category. 

Going forward, BWR tried to consistently contact the issuer to provide the required information over emails but no response has been received from the client. We have received feedback from the banker stating that the account is NPA. The company has also not submitted the NDS since October 2021. Despite the best efforts of BWR to get at least the minimum required information for the review, the entity has not provided the same. In the absence of adequate information 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.

The lenders/investors may note to exercise due caution while using the above rating which mentions "Issuer Not Cooperating" since the rating lack any projections or forward looking component as it is arrived at based on the best available information without any management/banker's interaction.

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 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 possible deterioration in the credit quality of the rated entity arising from its non-transparency withholding of information required for a review of the rating

ABOUT THE ENTITY

Supreme Engineering Ltd (SEL or The Company) 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. The Rabale unit is engaged in the processing of steel and manufacturing of steel coils and bars and the Khopoli unit is engaged in the 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. View Previous Document

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

N.A.

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 40.48
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
26Mar2022
BWR D
(Downgrade/ISSUER NOT COOPERATING*)
17Mar2021
BWR BB+Negative
(Downgrade)
18Dec2020
BWR BBB-Negative
(Reaffirmation)
Non Fund Based ST 31.00
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
26Mar2022
BWR D
(Downgrade/ISSUER NOT COOPERATING*)
17Mar2021
BWR A4+
(Downgrade)
18Dec2020
BWR A3
(Reaffirmation)
Grand Total 71.48 (Rupees Seventy One Crores and Forty 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

Prajwal Biraj

Rating Analyst prajwal.b@brickworkratings.com

V.K.Kukreja

Associate Director - Ratings Board : +91 11 2341 2232 kukreja.vk@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

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 11,560 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.

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