RATING RATIONALE
29Nov2022

BK Steels

Brickwork Ratings downgrades the long-term ratings for the Bank Loan Facilities of Rs. 11.50 Crs. of BK Steels based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(02 Dec 2021)
Present
Fund Based 11.50 11.50 Long Term BWR B-/Stable
Downgrade/ISSUER NOT COOPERATING*
BWR C
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
Grand Total 11.50 11.50 (Rupees Eleven Crores and Fifty 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
*Issuer did not cooperate; based on best available information.


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

Brickwork Ratings has downgraded the long-term rating to BWR C and continues to the 'Issuer not Cooperating' category for the Bank loan facilities of ₹ 11.50 Crores of BK Steels.

The rating was due for an annual review in Dec 2022. BWR took up with the issuer to provide the required information over emails and through telephone calls. Monthly No Default Statement (NDS) is also not being submitted by the company. Despite the best efforts of BWR to get at least 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 company’s financial performance and its ability to service its debt and maintain a valid rating.

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 may 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 ENTITY

B K steels was established and registered in 2009 as a proprietorship firm with its registered office in Surat, Gujarat. In 2017 , the firm converted to a partnership concern. The firm's registered office is located at D/54/1, Hojiwala industrial estate, Road no. 23, Gali no. 4, Nr. Palsana toll gate, Surat - 394230. The firm is engaged in trading of TMT bars and construction chemicals & paints. Major product range of the firm includes JSW neo steel TMT bar, plate, angle, channel, beam, Cetcon wall putty, Cetcon waterproofing chemical, Cetcon white cement, Cetcon tile adhesive & epoxy filling, Cetcon construction need wide range and Contractor paints & distempers. The firm is the authorized distributor of JSW Steel Ltd for TMT bars and an exclusive dealer of SAIL. The firm is managed by Mr. Bhaumik Gandhi and Mr. Priyank Gandhi.

(Information as available in March-2019)

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

NIL

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2022) 2022 (History) 2021 2020 2019
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating Date Rating
Fund Based LT 11.50
BWR C
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
NA
NA
02Dec2021
BWR B-Stable
(Downgrade/ISSUER NOT COOPERATING*)
15Oct2020
BWR B Stable
(Downgrade/ISSUER NOT COOPERATING*)
13Mar2019
BWR B+ Stable
(ISSUER NOT COOPERATING*)
Grand Total 11.50 (Rupees Eleven Crores and Fifty 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

Mistry Jinal

Ratings Analyst mistry.j@brickworkratings.com

Dileep Narayan Singh

Director dileep.s@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
BK Steels
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 Oriental Bank of Commerce Cash CreditSanctioned 1.50 _ 1.50
2 State Bank Of India (SBI) Cash CreditSanctioned 10.00 _ 10.00
Total 11.50 0.00 11.50
TOTAL (Rupees Eleven Crores and Fifty lakhs Only)
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Brickwork 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 12,000 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. BWR has its corporate office in Bengaluru and a country-wide presence with its offices in Ahmedabad, Chandigarh, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi along with representatives in 150+ locations.

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