Brickwork Ratings downgrades the long-term rating and reaffirms the short-term rating for the Bank Loan Facilities of Rs. 21.64 Crs. of Hariom Pipes Industries Ltd. (erstwhile Hariom Concast & Steels Pvt. Ltd.) based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (09 Nov 2022) |
Present | ||
Fund Based | 19.64 | 19.64 | Long Term |
BWR B-/Stable
Continues to be in ISSUER NOT COOPERATING* category/Downgraded |
BWR C
Continues to be in ISSUER NOT COOPERATING* category/Downgraded |
Non Fund Based | 2.00 | 2.00 | Short Term |
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
Grand Total | 21.64 | 21.64 | (Rupees Twenty One Crores and Sixty Four lakhs Only) |
The rating was due for review in November 2023. Brickwork ratings(BWR) took up with the company to provide the required information over emails and through telephonic communication. Despite the best efforts of Brickwork Ratings to get at least the minimum required information for a review, the company has not provided the same. In the absence of adequate information from the issuer and continued lack of management cooperation, Brickwork Ratings is unable to assess the issuer's financial performance and its ability to service its debt and maintain valid ratings. The company has not been submitting NDS to BWR. Based on inadequate information and continued lack of management cooperation , Brickwork Ratings has downgraded the long-term rating to 'BWR C' from 'BWR B-/Stable' and reaffirmed the short-term rating at 'BWR A4' and continued the ratings in 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 a key factor in the assessment of credit risk as generally, non-cooperation by the rated entities to provide required information for a review of the assigned rating October also be accompanied by financial stress. Users of the credit rating should therefore take into account 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 |
---|---|---|---|
Commodities | Metals & Mining | Ferrous Metals | Iron & Steel |
Hariom Pipe Industries Private Limited (erstwhile Hariom Concast & Steels Pvt. Ltd.) name was change in dated December 12, 2017 and a fresh Certificate of Incorporation consequent to change in name was issued on December 27, 2017 by Registrar of Companies, Hyderabad. Thereafter, Company was converted into to a Public Limited Company and consequently, name of the Company got changed to Hariom Pipe Industries Limited by a Special Resolution passed on January 08, 2018 and a fresh Certificate of Incorporation consequent upon conversion was issued on January 17, 2018 by the Registrar of Companies, Hyderabad. Mr. Rupesh Kumar Gupta and Mr. Sailesh Gupta are third generation entrepreneurs and founders in the Iron and Steel Industry.
They have been instrumental in the growth and management of the Company. The Company is an integrated manufacturer of Mild Steel (MS) Pipes, Scaffolding, HR Strips, MS Billets, and Sponge Iron in South India. The Company has two manufacturing units which cater to the southern and western Indian markets for products. Unit I plant located at Mahabubnagar Dist. in Telangana manufactures finished steel products from iron scrap and sponge Iron.
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
CARE Ratings continues to maintain the ratings at CARE BB/Stable/A4 under Issuer Not Cooperating category on November 24, 2023.
ANY OTHER INFORMATIONNA
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 | 19.64 |
BWR C
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded) |
NA |
NA
|
09Nov2022 |
BWR B-Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded) |
29Sep2021 |
BWR BStable
(Downgrade/ISSUER NOT COOPERATING*) |
Non Fund Based | ST | 2.00 |
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
NA |
NA
|
09Nov2022 |
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
29Sep2021 |
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*) |
Grand Total | 21.64 | (Rupees Twenty One Crores and Sixty Four 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 | |
---|---|
Kuradapu Sarath Chandra Kumar Rating Analyst sarathchandra.k@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.) | |
---|---|---|---|---|---|---|
1 | Canara Bank | Term LoanOut-standing | 1.64 | _ | 1.64 | |
2 | Canara Bank | Bank GuaranteeSanctioned | _ | 2.00 | 2.00 | |
3 | Canara Bank | OCC/ODBD/WCDL/BillsSanctioned | 18.00 | _ | 18.00 | |
Total | 19.64 | 2.00 | 21.64 | |||
TOTAL (Rupees Twenty One Crores and Sixty Four lakhs Only) |
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