RATING RATIONALE
07Feb2023

Sugna Metals Ltd.

Brickwork Ratings Reaffirms the ratings and simultaneously withdraws the ratings for the Bank Loan Facilities of Rs. 76.87 Crs. of Sugna Metals Ltd.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(20 Oct 2022)
Present
Fund Based 86.87 66.87 Long Term BWR BB+ /Stable
ISSUER NOT COOPERATING*/Downgrade
BWR BB + /Stable
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed and withdrawn
(20.00) (0.00)
(9.00) (9.00)
Non Fund Based 10.00 10.00 Short Term BWR A4+
ISSUER NOT COOPERATING*/Downgrade
BWR A4 +
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed and withdrawn
(15.00) (0.00)
Grand Total 96.87 76.87 (Rupees Seventy Six Crores and Eighty Seven 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
Note: The rated bank facilities of the company with ICICI Bank have been closed as per the No Dues Letter received to us from the Bank,*Issuer did not cooperate; based on best available information.

RATING ACTION / OUTLOOK

Brickwork Ratings has reaffirmed the long term rating of “BWR BB+ / Issuer Not Cooperating" and reaffirmed the short term rating of “BWR A4+/ Issuer Not Cooperating" and simultaneously withdrawn the ratings to the bank loan facilities of “ Sugna Metals Ltd.”, at the request of the company. The request letter from the company to this effect, as well as the ‘No Objection’ certificate from the bankers of the company for withdrawal of the rating, are held on record.

ABOUT THE ENTITY

Sugna Metals Limited (SML) was incorporated in October 2006 at Hyderabad, as a private limited company and converted into a public limited company (unlisted) in 2013. The company is engaged in the manufacturing of MS Billets and TMT Bars of various grades. The manufacturing unit is located in Narayanpur village, Pargi Mandal, Telangana and has an installed capacity of 1,46,000 MT for both MS Billets and TMT bars. The Group has an established marketing network for the sales and distribution of their products across Andhra Pradesh, Telangana, Karnataka and other states in India. The finished products are sold under the brand name ‘Sugna TMT’. Mr Bharat Kumar is the Managing Director of the Company, and Ms.Saroj Sonthalia and Mr. Mudit Sonthalia are the other directors.

Note : Information as available in September 2021.

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

NIL

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 66.87
BWR BB+/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed and withdrawn)
20Oct2022
BWR BB+ Stable
(ISSUER NOT COOPERATING*/Downgrade)
27Sep2021
BWR BBB- Stable
(Reaffirmation)
30Oct2020
BWR BBB- Stable
(Upgrade and Removed from the INC category)
0.00
NA
NA
NA
NA
NA
10Aug2020
BWR BB+ Stable
(Downgrade/ISSUER NOT COOPERATING*)
FB SubLimit LT (9.00)
BWR BB+/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed and withdrawn)
NA
NA
NA
NA
NA
NA
Non Fund Based ST 10.00
BWR A4+
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed and withdrawn)
20Oct2022
BWR A4+
(ISSUER NOT COOPERATING*/Downgrade)
27Sep2021
BWR A3
(Reaffirmation)
30Oct2020
BWR A3
(Upgrade and Removed from the INC category)
0.00
NA
NA
NA
NA
NA
10Aug2020
BWR A4+
(Downgrade/ISSUER NOT COOPERATING*)
Grand Total 76.87 (Rupees Seventy Six Crores and Eighty Seven 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

Soubhagya Ranjan Kahalsingh

Ratings Analyst Board : +91 80 4040 9940 soubhagya.rs@brickworkratings.com

RamaKrishna

Director-Ratings ramakrishna@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Sugna Metals 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 HDFC Bank Term LoanSanctioned 4.92 _ 4.92
2 HDFC Bank Term LoanSanctioned 3.94 _ 3.94
3 HDFC Bank Term LoanSanctioned 5.00 _ 5.00
4 HDFC Bank Cash CreditSanctioned 40.00 _ 40.00
5 HDFC Bank Letter of CreditSanctioned _ 10.00 10.00
Sub-Limit (WCDL (Sub limit of Cash Credit)) Sanctioned (9.00)
6 ICICI Bank Cash CreditSanctioned _ _ 0.00
Sub-Limit (Letter of Credit (Sub limit of Cash Credit)) Sanctioned (0.00)
Sub-Limit (WCDL (Sub limit of Cash Credit)) Sanctioned (0.00)
7 SIDBI Term LoanSanctioned 0.53 _ 0.53
8 SIDBI Term LoanSanctioned 4.19 _ 4.19
9 SIDBI Term LoanSanctioned 2.12 _ 2.12
10 SIDBI Term LoanSanctioned 0.11 _ 0.11
11 SIDBI Term LoanSanctioned 0.77 _ 0.77
12 SIDBI Term LoanSanctioned 1.52 _ 1.52
13 SIDBI Term LoanSanctioned 1.14 _ 1.14
14 SIDBI Term LoanSanctioned 2.63 _ 2.63
Total 66.87 10.00 76.87
TOTAL (Rupees Seventy Six Crores and Eighty Seven lakhs Only)
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