Brickwork Ratings downgrades the long-term ratings for the Bank Loan Facilities of Rs. 23.80 Crs. of Rama Enterprises (A Unit of Param Shakti Dhatu Udyog Pvt. Ltd.) based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (22 Aug 2023) |
Present | ||
Fund Based | 23.80 | 23.80 | Long Term |
BWR BB- /Stable
ISSUER NOT COOPERATING* /Downgrade |
BWR B +
/Stable Continues to be in ISSUER NOT COOPERATING* category/Downgraded |
(16.00) | (16.00) | ||||
Grand Total | 23.80 | 23.80 | (Rupees Twenty Three Crores and Eighty lakhs Only) |
BWR has downgraded the long-term ratings at "BWR B+/Stable" from "BWR BB-/Stable" for the bank loan Facility of " Rama Enterprises (A Unit of Param Shakti Dhatu Udyog Pvt. Ltd.)" and placed under the 'Issuer Not Cooperate' category as the issuer did not cooperate.
BWR had initially assigned the long-term and shot-term ratings to "BWR BB-/Stable/A4+ " on 14-Sep-2016.The long-term rating was upgraded to "BWR BB/Stable" and reaffirmed the short-term ratings at "BWR A4+"on 31-Jan-2018.The long-term and short-term ratings was reaffirmed at BWR BB/Stable/A4+"on 09-Nov-2018.The long-term ratings were reaffirmed at "BWR BB/Stable" and withdrawal the short-term ratings at "BWR A4+"on 22-Jan-2020.The long-term ratings were reaffirmed at "BWR BB/Stable" on 27-Apr-2021.The long-term ratings were reaffirmed at "BWR BB/Stable" on 30-May-2022.The long-term ratings were Downgraded to BWR BB-/Stable" and migrated the rating under " Issuer Not Cooperating" Category on 22-Aug-2023.
Going forward, BWR took up with the issuer consistently to provide required information over emails apart from telephonic communication, but no response has been received from the client. Further, BWR is unable to reach the banker; the banker's feedback regarding the conduct of the account is not available. 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 company'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, 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 ENTITYMacro Economic Indicator | Sector | Industry | Basic Industry |
---|---|---|---|
Industrials | Capital Goods | Industrial Products | Iron & Steel Products |
RAMA ENTERPRISES (A Unit of Param Shakti Dhatu Udyog Pvt. Ltd.) based in Faridabad, holds a moderate presence in the region, since 1982. ), the company has now entered in manufacturing arenas of Color Coated HI-RIB Profile Sheets, Polycarbonate roofing sheets, Fiber profile sheets. The company is also engaged in pre-engineering works, such as designing, fabrication and installation, all customized as per requirements. The company uses fully computerized and automatic machines and professionally experienced team. RAMA ENTERPRISES is a trade name of Param Shakti Dhatu Udyog Pvt. Ltd.
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
Not Applicable
ANY OTHER INFORMATIONNone
RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)Facilities | Current Rating (2024) | 2023 | 2022 | 2021 | |||||
---|---|---|---|---|---|---|---|---|---|
Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
Fund Based | LT | 23.80 |
BWR B+/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded) |
22Aug2023 |
BWR BB- Stable
(ISSUER NOT COOPERATING* /Downgrade) |
30May2022 |
BWR BB Stable
(Reaffirmation) |
27Apr2021 |
BWR BBStable
(Reaffirmation) |
FB SubLimit | LT | (16.00) |
BWR B+/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded) |
22Aug2023 |
BWR BB- Stable
(ISSUER NOT COOPERATING* /Downgrade) |
30May2022 |
BWR BB Stable
(Reaffirmation) |
27Apr2021 |
BWR BBStable
(Reaffirmation) |
Grand Total | 23.80 | (Rupees Twenty Three Crores and Eighty lakhs Only) |
Analytical Contacts | |
---|---|
Sandeep A Pawar Rating Analyst sandeep.ap@brickworkratings.com |
V.K.Kukreja Associate Director - Ratings Board : +91 11 2341 2232 kukreja.vk@brickworkratings.com |
1-860-425-2742 | media@brickworkratings.com |
SL.No. | Name of the Bank/Lender | Type Of Facilities | Long Term(Rs.Crs.) | Short Term(Rs.Crs.) | Total(Rs.Crs.) | Complexity of the Instrument |
---|---|---|---|---|---|---|
1 | Canara Bank | OCC/ODBDSanctioned | 18.80 | _ | 18.80 | Simple## |
Sub-Limit (SL-ODBD) Sanctioned | (16.00) | |||||
2 | State Bank Of India (SBI) | Cash CreditSanctioned | 5.00 | _ | 5.00 | Simple## |
Total | 23.80 | 0.00 | 23.80 | |||
TOTAL (Rupees Twenty Three Crores and Eighty lakhs Only) |
##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.
Instrument | Issue Date | Amount (Rs.Crs) | Coupon Rate (%) | Maturity Date | ISIN Particulars | Complexity of the Instrument |
---|---|---|---|---|---|---|
Nil | Nil | Nil | Nil | Nil | Nil | Nil |
Name of Entity | % Ownership | Extent of consolidation | Rationale for consolidation |
---|---|---|---|
Nil | Nil | Nil | Nil |
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About Brickwork RatingsBrickwork 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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