RATING RATIONALE
30Nov2022

Faridabad Steel Mongers Pvt. Ltd.

Brickwork Ratings downgrades the long-term ratings for the Bank Loan Facilities of Rs. 55.00 Crs. of Faridabad Steel Mongers Pvt. Ltd. based on the best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(17 Dec 2021)
Present
Fund Based 55.00 55.00 Long Term BWR BB+/Stable
Reaffirmation/ISSUER NOT COOPERATING*
BWR BB /Stable
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
Grand Total 55.00 55.00 (Rupees Fifty Five 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
*Issuer did not cooperate; based on best available information.


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

Downgraded the long-term rating to BWR BB/Stable (Issuer Not Cooperating) based on the best available information as the issuer did not cooperate. The rating is due for a review in Dec 2022. 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 No Default Statement has not been submitted by the client every month, despite follow-up. Thus, BWR has downgraded the long-term rating to BWR BB/Stable under the “Issuer Not Cooperating” category.

LIMITATIONS OF THE RATING

Information availability risk is a key factor in the assessment of credit risk as generally, noncooperation 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 ratings 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 ENTITY

Faridabad Steel Mongers Pvt. Ltd., incorporated on June 01, 2009 is mainly into wholesale trading of Iron & Steel products namely HR Coil, CR Coil, HR Sheet, CR Sheet, PM Plates, TMT Bars. FSMPL, based in Faridabad, Haryana, was set up by Mr Yogesh Kumar Gupta in 2004 as a partnership firm named SP Industries, and was reconstituted as a private limited company with the present name in June 2009. Company is in this line of business since last 20 years. Apart from above mentioned work, company also does related job work like sheet cutting , pressing etc. The company is one of the biggest distributors of SAIL (Steel Authority of India Ltd) products in Faridabad Region and mainly a price maker for Faridabad steel market. The promoters have established relationships with suppliers and customers, which allow us to get repeat business. Company is one of the biggest bulk purchaser from SAIL and accordingly gets higher bulk discount from others, this helps in maintaining margins and creating market price for smaller players.

 

 

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 20-21
(Audited)
FY 19-20
(Audited)
Operating Revenue Rs.Crs. 655.55 622.53
EBITDA Rs.Crs. 11.28 10.90
PAT Rs.Crs. 3.02 1.94
Tangible Net Worth Rs.Crs. 30.00 26.99
Total Debt/TNW Times 2.43 2.74
Current Ratio Times 1.21 1.28
NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

From CRISIL: The rating CRISIL BB-/Stable was moved to Issuer Not Cooperating and simultaneously Withdrawn as of 20-Jul-2018.

From India Rating: The rating IND BB/A4+ was moved to Issuer Not Cooperating and simultaneously Withdrawn as of 22-Oct-2019.

ANY OTHER INFORMATION

Infomerics assigns a long-term rating to IVR BBB- for a facility of Rs 55.00 Cr as of 26-Oct-2021.

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 55.00
BWR BB/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
NA
NA
17Dec2021
BWR BB+Stable
(Reaffirmation/ISSUER NOT COOPERATING*)
18Sep2020
BWR BB+ Stable
(Reaffirmation)
20Aug2019
BWR BB+ Stable
(Assignment)
Grand Total 55.00 (Rupees Fifty Five 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

Sandeep Jangra

Ratings Analyst sandeep.j@brickworkratings.com

Hari Kishan Yadav

Associate Director - Ratings hari.ky@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Faridabad Steel Mongers Pvt. 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 Cash CreditSanctioned 40.00 _ 40.00
2 ICICI Bank Cash CreditSanctioned 15.00 _ 15.00
3 Union Bank of India Cash CreditSanctioned _ _ 0.00
Total 55.00 0.00 55.00
TOTAL (Rupees Fifty Five Crores Only)
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