Brickwork Ratings downgrades the long-term rating and reaffirms the short-term rating for the Bank Loan Facilities of Rs. 29.60 Crs. of Mahavir Metal Corporation based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (27 Nov 2023) |
Present | ||
Fund Based | 27.00 | 27.00 | Long Term |
BWR B/Stable
Continues to be in ISSUER NOT COOPERATING* category/Downgraded |
BWR B -
/Stable Continues to be in ISSUER NOT COOPERATING* category/Downgraded |
(1.00) | (1.00) | ||||
(7.80) | (7.80) | ||||
(26.00) | (26.00) | Short Term |
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
|
Non Fund Based | 2.60 | 2.60 | Short Term |
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
Grand Total | 29.60 | 29.60 | (Rupees Twenty Nine Crores and Sixty lakhs Only) |
The rating was due for review in November 2024. BWR took up the matter with the issuer to provide the required information over emails and telephone calls. Despite Brickwork Ratings' best efforts to get the minimum required information for a review through emails and telephone calls, the entity has not provided the same. Further, the firm has not been sharing the No Default Statement(NDS) with BWR as per regulatory requirements. BWR also tried to contact the banker for feedback on the account over emails however no response was received. 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.
In view of the non-availability of information and lack of cooperation from Mahavir Metal Corporation, Brickwork Ratings has downgraded the long-term rating to ‘BWR B-/Stable’ and reaffirmed the short-term rating at 'BWR A4', along with the continuation of the rating in the “Issuer Not Cooperating” category, based on best available information as the Issuer did not cooperate.
The lenders/investors may note to exercise due caution while using the above rating which mentions "ISSUER NOT COOPERATING" since the rating lacks any projections or forward looking component as it is arrived 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 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 the 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 ENTITYMacro Economic Indicator | Sector | Industry | Basic Industry |
---|---|---|---|
Industrials | Capital Goods | Industrial Manufacturing | Ship Building & Allied Services |
Mahavir Metal Corporation formed business entity in 2008 at Bhavnagar, Gujarat, Mahavir Metal Corporation is engaged in ship breaking business. The firm procures ships from the international market, breaks down the ships, and sells the parts, oil, and scrap in the domestic market. It has the capacity to break various types of ships such as general cargo, chemical & oil tankers, reefers, tug boats, and bulk carriers among others. Mr. Raju Maroo, Mr. Kamlesh Maroo, Mr. Bhawanji Maroo, and Mr. Sagarmal Shah are the partners of the firm having extensive experience in ship breaking business.
Note: As per information available with BWR in October 2021.
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
Creadit Rating Agency | Status and Reason for Non-Cooparation | Date of Press Release |
---|---|---|
CRISIL | Non-submission of the relevant information | 10Apr2024 |
NIL
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 | 27.00 |
BWR B-/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded) |
27Nov2023 |
BWR BStable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded) |
03Nov2022 |
BWR B+Stable
(ISSUER NOT COOPERATING*/Downgraded) |
07Oct2021 |
BWR BB-Stable
(Reaffirmation) |
FB SubLimit | LT | (1.00) |
BWR B-/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded) |
NA |
NA
|
NA |
NA
|
07Oct2021 |
BWR A4
(Reaffirmation) |
(7.80) |
BWR B-/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
||
FB SubLimit | ST | (26.00) |
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
27Nov2023 |
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
03Nov2022 |
BWR A4
(ISSUER NOT COOPERATING*/Reaffirmed) |
07Oct2021 |
BWR A4
(Reaffirmation) |
Non Fund Based | ST | 2.60 |
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
27Nov2023 |
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
03Nov2022 |
BWR A4
(ISSUER NOT COOPERATING*/Reaffirmed) |
07Oct2021 |
BWR A4
(Reaffirmation) |
Grand Total | 29.60 | (Rupees Twenty Nine Crores and Sixty lakhs Only) |
Analytical Contacts | |
---|---|
Varsha Jasmin Rating Analyst varsha.j@brickworkratings.com |
Nagaraj K Director - Ratings Board : +91 80 4040 9940 nagaraj.ks@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 | Bank of Baroda | Derivative LimitSanctioned | _ | 2.60 | 2.60 | Simple## |
2 | Bank of Baroda | Adhoc Facilities FB (CC/TL/OD)Sanctioned | 27.00 | _ | 27.00 | Simple## |
Sub-Limit (Cash Credit- I) Sanctioned | (1.00) | |||||
Sub-Limit (Cash Credit- II) Sanctioned | (7.80) | |||||
Sub-Limit (Inland/Import LC) Sanctioned | (26.00) | |||||
Total | 27.00 | 2.60 | 29.60 | |||
TOTAL (Rupees Twenty Nine Crores and Sixty 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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