|
|
| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 24.50 | ACUITE BB- | Downgraded | Issuer not co-operating* | - |
| Total Outstanding | 24.50 | - | - |
|
Rating Rationale |
|
Acuité has downgraded the long-term rating to ‘ACUITE BB-’ (read as ACUITE double B minus) from 'ACUITE BB' (read as ACUITE double B) on the Rs. 24.50 Cr. bank facilities of Arun Steel Agencies (Arun Steel) on account of information risk. The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information. |
| About the Company |
|
Arun Steel Agencies was established in 1994 as a proprietorship concern and is promoted by Mr. V.C Arunai Vadivelan. Arun Steel is an exclusive and sole distributor of JSW Steel Limited for exclusive supply of steel wire rod coils across Tamil Nadu. The firm has its registered office and warehouse located in Chennai and Trichy (Tamilnadu) for stocking inventory. In 2018, Arun Steel Traders was established as a partnership concern by Mr V.C. Arunai Vadivelan along with his wife Mrs. V A Sasikala and his son Mr. V A Sujeeth. Arun Steel Traders, part of the Arun Steel group, handles volumes of JSW for Coimbatore location. JSW, its key principal has given an overall volume of 21,600 metric tonnes (MOU) for both the firms without any segregation for FY2021. |
| 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. |
| 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 rating is 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." |
| Outlook |
|
Not Applicable |
| Other Factors affecting Rating |
|
None |
| Status of non-cooperation with previous CRA |
|
Not Applicable |
| Any other information |
|
None |
| Applicable Criteria |
|
• Trading Entities: https://www.acuite.in/view-rating-criteria-61.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. |
|
| |
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
|
Contacts |
|
|
|
About Acuité Ratings & Research |
