Brickwork Ratings reaffirms the long-term & short-term ratings for the Bank Loan Facilities of Rs. 25.80 Crs. of Raj Ratan Smelter Ltd based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (30 May 2022) |
Present | ||
Fund Based | 22.80 | 22.80 | Long Term |
BWR C
Downgrade/ISSUER NOT COOPERATING* |
BWR C
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
Non Fund Based | 3.00 | 3.00 | Short Term |
BWR A4
Reaffirmation/ISSUER NOT COOPERATING* |
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
Grand Total | 25.80 | 25.80 | (Rupees Twenty Five Crores and Eighty lakhs Only) |
Reaffirmed the long-term & short-term rating to BWR C/A4 (Issuer Not Cooperating) based on the best available information as the issuer did not cooperate. The rating is due for review in May 2023. BWR took up with the issuer to provide the required information over emails and through telephone calls. Despite the best efforts of BWR to get the minimum required information for a review, the entity has not provided the same. In the absence of adequate information from the company, BWR is unable to assess the concern’s financial performance. Besides, the client has not submitted a No Default Statement every month, despite follow-up. Thus, BWR has reaffirmed the long-term & short-term rating to BWR C/A4 under the “Issuer Not Cooperating” category.
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 the key factor in the assessment of the credit risk as generally, non-cooperation 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 rating 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 ENTITYRaj Ratan Smelter Ltd. was established in 2008 by Khatri family, having its registered office at Swaroop Nagar, Kanpur and engaged in the manufacturing of M.S. Bars. Company was taken over by Mr. Ajay Kumar Jain on March 2018 from old management and subsequently production in the plant again started from 19th April 2018 under the supervision of Mr. Ajay Kumar Jain.
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.
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Facilities | Current Rating (2023) | 2022 | 2021 | 2020 | |||||
---|---|---|---|---|---|---|---|---|---|
Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
Fund Based | LT | 22.80 |
BWR C
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
30May2022 |
BWR C
(Downgrade/ISSUER NOT COOPERATING*) |
26May2021 |
BWR C+
(Downgrade/ISSUER NOT COOPERATING*) |
30Apr2020 |
BWR B-Stable
(Downgrade/ISSUER NOT COOPERATING*) |
Non Fund Based | ST | 3.00 |
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
30May2022 |
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*) |
26May2021 |
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*) |
30Apr2020 |
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*) |
Grand Total | 25.80 | (Rupees Twenty Five 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.
Hyperlink/Reference to applicable CriteriaAnalytical Contacts | |
---|---|
Sandeep Jangra Rating Analyst sandeep.j@brickworkratings.com |
Hari Kishan Yadav Associate Director - Ratings hari.ky@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.) | |
---|---|---|---|---|---|---|
1 | Indian Bank | Term LoanSanctioned | 1.80 | _ | 1.80 | |
2 | Indian Bank | Cash CreditSanctioned | 21.00 | _ | 21.00 | |
3 | Indian Bank | Bank GuaranteeProposed | _ | 3.00 | 3.00 | |
Total | 22.80 | 3.00 | 25.80 | |||
TOTAL (Rupees Twenty Five Crores and Eighty lakhs Only) |
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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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