Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 120.00 ACUITE D | Reaffirmed | Issuer not co-operating* -
Total Outstanding Quantum (Rs. Cr) 120.00 - -
 
Rating Rationale

­Acuité has reaffirmed the long-term rating of ‘ACUITE D’ (read as ACUITE D) on the Rs. 120.00 crore bank facilities of Amit Iron Private Limited (AIPL). The rating continues to be flagged as “Issuer Not-Cooperating” and is based on best available information.


About the Company

­AIPL is an authorized distributor of Tata Steel Limited for its hot and cold rolled products with the installed capacity of 7000-8000 TPA. The business was established in 1974 under the name of Eskay Industrial Corporation. Later in 2000, the name and the constitution of the company was changed to Amit Iron Private Limited and become a private limited company. Currently, the business is run by Mr. Amit Agarwal, who has been in this company since 2000. The company has its registered office located in Kolkata (West Bengal). AIPL also has its own service centre with cutting machine and packing facility in Amta (West Bengal).

 
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.

 
Rating Sensitivity

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

 
Material Covenants
­Not Applicable
 
Liquidity Position

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

 
Outlook

­­Not Applicable

 
Other Factors affecting Rating

­­Not Applicable

 

Particulars Unit FY 21 (Actual) FY 20 (Actual)
Operating Income Rs. Cr. 2.31 96.82
PAT Rs. Cr. 2.26 (32.39)
PAT Margin (%) 98.04 (33.45)
Total Debt/Tangible Net Worth Times (5.36) (5.14)
PBDIT/Interest Times 1.87 (3.77)
Status of non-cooperation with previous CRA

­­Not Applicable

 
Any other information

­Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups.

 
Applicable Criteria
• Trading Entities: https://www.acuite.in/view-rating-criteria-61.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm

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 www.acuite.in.

 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
14 Dec 2021 Cash Credit Long Term 10.00 ACUITE D ( Issuer not co-operating*)
Channel Financing Long Term 15.00 ACUITE D ( Issuer not co-operating*)
Proposed Channel Financing Long Term 10.00 ACUITE D ( Issuer not co-operating*)
Channel Financing Long Term 15.00 ACUITE D ( Issuer not co-operating*)
Channel Financing Long Term 60.00 ACUITE D ( Issuer not co-operating*)
Channel Financing Long Term 10.00 ACUITE D ( Issuer not co-operating*)
17 Sep 2020 Channel Financing Long Term 10.00 ACUITE D (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 10.00 ACUITE D (Downgraded and Issuer not co-operating*)
Channel Financing Long Term 15.00 ACUITE D (Downgraded and Issuer not co-operating*)
Proposed Channel Financing Long Term 10.00 ACUITE D (Downgraded and Issuer not co-operating*)
Channel Financing Long Term 15.00 ACUITE D (Downgraded and Issuer not co-operating*)
Channel Financing Long Term 60.00 ACUITE D (Downgraded and Issuer not co-operating*)
02 Mar 2020 Channel Financing Long Term 15.00 ACUITE BB- (Issuer not co-operating*)
Proposed Channel Financing Long Term 10.00 ACUITE BB- (Issuer not co-operating*)
Channel Financing Long Term 15.00 ACUITE BB- (Issuer not co-operating*)
Cash Credit Long Term 10.00 ACUITE BB- (Issuer not co-operating*)
Channel Financing Long Term 10.00 ACUITE BB- (Issuer not co-operating*)
Channel Financing Long Term 60.00 ACUITE BB- (Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
ICICI Bank Ltd Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 10.00 Simple ACUITE D | Reaffirmed | Issuer not co-operating*
Axis Bank Not Applicable Channel/Dealer/Vendor Financing Not Applicable Not Applicable Not Applicable 15.00 Simple ACUITE D | Reaffirmed | Issuer not co-operating*
State Bank of India Not Applicable Channel/Dealer/Vendor Financing Not Applicable Not Applicable Not Applicable 60.00 Simple ACUITE D | Reaffirmed | Issuer not co-operating*
Yes Bank Ltd Not Applicable Channel/Dealer/Vendor Financing Not Applicable Not Applicable Not Applicable 10.00 Simple ACUITE D | Reaffirmed | Issuer not co-operating*
ICICI Bank Ltd Not Applicable Channel/Dealer/Vendor Financing Not Applicable Not Applicable Not Applicable 15.00 Simple ACUITE D | Reaffirmed | Issuer not co-operating*
Not Applicable Not Applicable Proposed Channel Financing Not Applicable Not Applicable Not Applicable 10.00 Simple ACUITE D | Reaffirmed | Issuer not co-operating*

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