Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 42.75 ACUITE D | Reaffirmed | Issuer not co-operating* -
Total Outstanding 42.75 - -
Rating Rationale

Acuite has reaffirmed the long term rating of ‘Acuite D’ (read as Acuite D) on the Rs. 42.75 crore bank facilities of Annam Steels (AS). The rating continues to be flagged as “Issuer NotCooperating” and is based on the best available information.

About the Company

­Annam Steels (AS), established in 1990, is a Chennai - based partnership firm promoted by Mr. Vijayakumar. The firm is a scrap dealer and is currently engaged in the process of dismantling of plants and selling of scrap from NGEF Limited.

Unsupported Rating
­Not Applicable
Non-cooperation by the issuer/borrower:

­Acuité has been requesting for data, information and undertakings from the rated entity for conducting surveillance & review of the rating. However, the issuer/borrower failed to submit such information before the due date.
Acuité believes that information risk is a critical component in such ratings, and non-cooperation by the issuer along with unwillingness to provide information could be a sign of potential deterioration in its overall credit quality.
This rating is, therefore, being flagged as “Issuer not-cooperating”, in line with prevailing SEBI regulations and Acuité’s policies.

Limitation regarding information availability:

­The rating is based on information available from sources other than the issuer/borrower (in the absence of information provided by the issuer/borrower). Acuité endeavored to gather information about the entity/industry from the public domain. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit ratingis based.

About the Rated Entity - Key Financials

­­The rated entity has not shared the latest financial statements despite repeated requests.

Rating Sensitivity

­"No information provided by the issuer / available for Acuite to comment upon."

Liquidity Position

­"No information provided by the issuer / available for Acuite to comment upon."


­Not Applicable

Other Factors affecting Rating


Status of non-cooperation with previous CRA
­Not Applicable
Any other information
Applicable Criteria
• Trading Entities:
• Default Recognition:
• Application Of Financial Ratios And Adjustments:

Note on Complexity Levels of the Rated Instrument

­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’ s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on


Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
17 Feb 2023 Working Capital Demand Loan (WCDL) Long Term 42.75 ACUITE D (Reaffirmed & Issuer not co-operating*)
22 Nov 2021 Working Capital Demand Loan (WCDL) Long Term 42.75 ACUITE D (Reaffirmed & Issuer not co-operating*)

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
Tamil Nadu Mercantile Bank Not avl. / Not appl. Working Capital Demand Loan (WCDL) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 42.75 Simple ACUITE D | Reaffirmed | Issuer not co-operating*


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