RATING RATIONALE
02Feb2024

Lloyds Metals and Energy Ltd

Brickwork Ratings withdraws the ratings for the Bank Loan Facilities of Rs. 0.00 Crs. of Lloyds Metals and Energy Ltd

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(05 Jan 2024)
Present
Fund Based 100.00 0.00 Long Term BWR BBB /Stable
ISSUER NOT COOPERATING* /Downgrade
Withdrawal
Grand Total 100.00 0.00 (Rupees Zero Crores 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

RATING ACTION / OUTLOOK

Brickwork Ratings has withdrawn the ratings of "BWR BBB/Stable/Issuer not cooperating" for the bank loan facilities of  Lloyds Metals and Energy Ltd.

BWR had initially assigned a rating of BWR BBB-/Stable/ BWR A3 for the bank loan facilities as on 30 Jan 2019. On 26 May 2020, the ratings were reaffirmed at BWR BBB-/Stable/ BWR A3. On 19 Aug 2021, the long term ratings were upgraded at BWR BBB/Stable and the short term ratings were reaffirmed at BWR A3 and withdrawn. On 07 Oct, 2022, the ratings were upgraded to BWR BBB+/Stable. The rating was due for renew in Oct 2023. On 05 Jan, 2024, the ratings were downgraded to BWR BBB/Stable and migrated to "Issuer not cooperating" category.

Going forward, the company has requested for withdrawal of rating from BWR website vide letter dated 09 Jan 2024 and No dues certificates from Aditya Birla Finance Ltd. dated 20 Jan, 2023 received vide mail dated  04 Nov 2023 ; Tata Capital Financial Services Ltd. dated 10 Mar, 2023 and mail dated 30 Jan 2024  ; Citizen Cooperative Bank Ltd. dated 31 Mar, 2023 (in respect of BG and CC) and dated 01 Dec 2022 (in respect of TL) received vide mail dated 04 Nov 2023 and an undertaking from the company via mail dated 30 Jan 2024 that no facility has been availed against the proposed limit of Rs. 24.88 cr. Thus, in view of above, rating of the Company is being withdrawn in line with the “Withdrawal Policy of BWR”.

ABOUT THE ENTITY
Macro Economic Indicator Sector Industry Basic Industry
Commodities Metals & Mining Ferrous Metals Sponge Iron

Lloyds Metals and Energy Limited [Erstwhile Lloyds Metals & Engineer Limited] was initially incorporated as a private limited company under the name “Nagarjuna Metals and Engineer Private Limited” in the year 1977. Subsequently, in 1986 the constitution of the entity was converted into a public limited company and listed on the Bombay Stock Exchange in February 1987 however the name was changed to Lloyds Metals & Engineer Limited in January 1990 and to the latest name in April 2011. The Company is promoted by Mr. B. L. Agarwal & family along with TEMPL members holding around 74.63 percent; public shareholding stood at 25.09 percent and the non-promoter & Non-public group is 0.28 percent as on 31st March 2022. The day-to-day operations of the Company are handled by Mr. Babulal Agarwal who possesses more than five decades of experience in the iron & steel industry. 

The company is engaged in the manufacturing of sponge iron and its by-products along generation/distribution of power. The by-products of the sponge iron include Char, Fly Ash, ESP Dust, Bed Material, and Iron Ore Fines. The company’s sponge iron plant is located in the Chandrapur district of Maharashtra with an installed capacity of 300000 MTPA and also the captive power plant with a 30 MW capacity which runs on the waste heat gasses produced in the sponge kiln. The Company possesses certifications including ISO - 9001, 14001, OHSAS 18001 ISO 9001:2008. Sponge iron is an intermediate product; a source of metallics for secondary steel making through Electric Arc Furnace (EAF) or Induction Furnace (IF)  route. The sale of sponge iron contributed around 61 percent, iron ore contributed around 33 percent whereas power contributed around 6 percent to the total revenue for FY 2022. The main raw material required by the company is iron ore and non-coking coal. The iron ore is sourced from the iron ore mine located in Surjagarh village, Gadchiroli district Maharashtra which it has leased for a period of 50 years starting from 2007; the mining extraction activity commenced in October 2021. It also procures iron ore from other suppliers located in Raipur and Odisha. The company procures coal from Western Coalfields Limited under long-term linkages.

The company has only one associate under the name Thriveni Lloyds Mining Private Limited (TLMPL) effective from 28th May 2020 and has a 40 percent holding in it as on 31st March 2022. Thriveni Lloyds Mining Private Limited (TLMPL) is not rated with BWR/other CRAs.

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

No outstanding ratings from other CRAs.

ANY OTHER INFORMATION

Nil.

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2024) 2024 (History) 2023 2022 2021
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating Date Rating
Fund Based LT 0.00
Withdrawal
05Jan2024
BWR BBB Stable
(ISSUER NOT COOPERATING* /Downgrade)
NA
NA
07Oct2022
BWR BBB+ Stable
(Upgrade)
19Aug2021
BWR BBB Stable
(Upgrade)
Non Fund Based ST 0.00
NA
NA
NA
NA
NA
NA
NA
19Aug2021
BWR A3
(Withdrawal)
Grand Total 0.00 (Rupees Zero Crores 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

Vaishali Khandelwal

Rating Analyst vaishali.k@brickworkratings.com

V.K.Kukreja

Associate Director - Ratings Board : +91 11 2341 2232 kukreja.vk@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Lloyds Metals and Energy 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 Aditya Birla Finance Limited Term LoanOut-standing _ _ 0.00
2 Citizen Credit Co-operative Bank Cash CreditSanctioned _ _ 0.00
3 Citizen Credit Co-operative Bank Term LoanOut-standing _ _ 0.00
4 Kotak Mahindra Bank Term LoanOut-standing _ _ 0.00
5 Others Cash CreditProposed _ _ 0.00
6 TATA Capital Financial Services Limited Term LoanOut-standing _ _ 0.00
Total 0.00 0.00 0.00
TOTAL (Rupees Zero Crores Only)
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