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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 82.00 | ACUITE BB+ | Downgraded & Withdrawn | Issuer not co-operating* | - |
| Bank Loan Ratings | 53.00 | - | ACUITE A4+ | Downgraded & Withdrawn | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 0.00 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 135.00 | - | - |
| Rating Rationale |
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Acuité has downgraded and withdrawn the long term rating to ‘ACUITE BB+’ (Read as ACUITE double B plus) from ‘ACUITE BBB’ (Read as ACUITE triple B) and short term rating to ‘ACUITE A4+’ (Read As ACUITE A four plus) from ‘ACUITE A2’ (Read As ACUITE A two) on the Rs 135.00 crore bank facilities of ARS Steel Alloy International Private Limited. The rating is being withdrawn on account of request received from the company and NOC received from the banker, as per Acuite's policy of withdrawal of ratings. The rating is now an indicative rating, and downgraded on account of information risk. |
| About the Company |
| Chennai based, M/s. ARS Steels & Alloy International Private Limited (ARS Steels) begun its operations from September 1990 with the name of ARS Metals Private Limited. Later after the inception of energy division in 2013, the company demerged the steel and power division into two different companies i.e., ARS Steels & Alloys International Limited and ARS Energy Private Limited. From 2013, both the companies together refer to as ARS group which is promoted by its current Managing Director Mr. Ashwini Kumar Bhatia. The company currently has one manufacturing plant located at Gummidipoondi, Tamil Nadu. The Company is engaged in manufacturing and selling of TMT bars. |
| 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 noncooperation 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 co-operating”, 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 issuer has not shared the latest financial statement for Acuite to comment |
| 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 the Rating |
| None |
| 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 |
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• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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. |
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