Press Release December 23, 2024 APL METALS LIMITED Rating Downgraded,Reaffirmed and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	30.00	ACUITE D | Downgraded | Issuer not co-operating*	-
Bank Loan Ratings	87.00	ACUITE D | Reaffirmed | Issuer not co-operating*	-
Total Outstanding	117.00	-	-
Total Withdrawn	0.00	-	-
* The issuer did not co-operate; based on best available information.

Rating Rationale

Acuité has downgraded its long term rating to ‘ACUITE D’ (read as ACUITE D) from ‘ACUITE C' (read as ACUITE C) on the Rs.30.00 crore bank facilities of APL Metals Limited. Acuité has also reaffirmed its long term rating to ‘ACUITE D’ (read as ACUITE D) on the Rs.87.00 crore bank facilities of APL Metals Limited.   The rating remains flagged as “Issuer Not Cooperating” and is based on the best available information.  Rationale for Rating The rating action is a result of the account being classified as substandard and the interest payment being overdue for more than 90 days, as per the written feedback received from the lender.

About the Company

­APL Metals Limited (APL), formerly known as Associated Pigments Limited, is a Kolkata based company, established in 1948 and commercial operations having begun in 1955. It is listed in Calcutta Stock Exchange Limited (CSE). APL is engaged in the manufacturing of refined lead, lead alloys and lead oxides with the combined installed capacity of 127730 MTPA, which are used in manufacturing of batteries, rolled extrusions, pigments used in paints, cable sheathing, among others. Mr.Prakash Kumar Damani, Mr. Sanjiv Nandan Sahaya, Mr. Rajendra Sahay, Mr.Harsha Sharma, Mr. Rahul Damani, Mr. Raghav Bajoria & Mr.Varun Daga are the Directors of Companies.

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 an 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 has endeavoured 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 rating is based.

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.

Outlook: Not Applicable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 24 (Actual)	FY 23 (Actual)
Operating Income	Rs. Cr.	702.60	736.67
PAT	Rs. Cr.	(9.84)	2.53
PAT Margin	(%)	(1.40)	0.34
Total Debt/Tangible Net Worth	Times	2.82	6.07
PBDIT/Interest	Times	0.51	1.31

Status of non-cooperation with previous CRA

­Not Applicable

Any other information

­None

Applicable Criteria

• Rating Process and Timeline: https://www.acuite.in/view-rating-criteria-67.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.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.

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 07 Jun 2024 Cash Credit Long Term 15.00 ACUITE C (Reaffirmed & Issuer not co-operating*) Letter of Credit Long Term 15.00 ACUITE C (Reaffirmed & Issuer not co-operating*) Bills Discounting Long Term 30.00 ACUITE D (Reaffirmed & Issuer not co-operating*) Cash Credit Long Term 24.00 ACUITE D (Reaffirmed & Issuer not co-operating*) Letter of Credit Long Term 33.00 ACUITE D (Reaffirmed & Issuer not co-operating*) 16 Mar 2023 Cash Credit Long Term 15.00 ACUITE C (Downgraded from ACUITE BB+ | Stable) Letter of Credit Long Term 15.00 ACUITE C (Downgraded from ACUITE BB+ | Stable) Bills Discounting Long Term 30.00 ACUITE D (Downgraded from ACUITE BB+ | Stable) Cash Credit Long Term 24.00 ACUITE D (Downgraded from ACUITE BB+ | Stable) Letter of Credit Long Term 33.00 ACUITE D (Downgraded from ACUITE BB+ | Stable) 29 Dec 2022 Bills Discounting Long Term 30.00 ACUITE BB+ | Stable (Downgraded from ACUITE BBB- | Stable) Cash Credit Long Term 24.00 ACUITE BB+ | Stable (Downgraded from ACUITE BBB- | Stable) Letter of Credit Long Term 33.00 ACUITE BB+ | Stable (Downgraded from ACUITE BBB- | Stable) Cash Credit Long Term 15.00 ACUITE BB+ | Stable (Assigned) Letter of Credit Long Term 15.00 ACUITE BB+ | Stable (Assigned) 18 Oct 2021 Letter of Credit Short Term 33.00 ACUITE BBB- | Stable (Upgraded from ACUITE BB+ | Stable) Cash Credit Long Term 24.00 ACUITE BBB- | Stable (Upgraded from ACUITE BB+ | Stable) Bills Discounting Short Term 30.00 ACUITE BBB- | Stable (Upgraded from ACUITE BB+ | Stable) * The issuer did not co-operate; based on best available information.

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Indian Bank Not avl. / Not appl. Bills Discounting Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 30.00 Simple ACUITE D | Reaffirmed | Issuer not co-operating* Indian Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 24.00 Simple ACUITE D | Reaffirmed | Issuer not co-operating* Axis Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE D | Downgraded | Issuer not co-operating* ( from ACUITE C ) Axis Bank Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE D | Downgraded | Issuer not co-operating* ( from ACUITE C ) Indian Bank Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 33.00 Simple ACUITE D | Reaffirmed | Issuer not co-operating*

* The issuer did not co-operate; based on best available information.

Contacts

Mohit Jain Senior Vice President - Rating Operations Manvi Khaitan Associate Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai. Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating. Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.