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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 18.50 | ACUITE BB- | Downgraded | Issuer not co-operating* | - |
| Total Outstanding | 18.50 | - | - |
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Rating Rationale |
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Acuité has downgraded its long-term rating to 'ACUITE BB-' (read as ACUITE Double B Minus) from 'ACUITE BB' (read as ACUITE Double B) on the Rs.18.50 crore bank facilities of Astha Innovations Private Limited (AIPL). The rating is now being flagged as “Issuer Not Cooperating” and is based on the best available information. The rating has been downgraded on account of information risk and non submission of NDS for the last 03 months.
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| About the Company |
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Incorporated in 2001, Astha Innovations Private Limited (AIPL) is promoted by Mr. Dharamveer Nachrani and is engaged in trading of iron and steel products. The company is based in Chhattisgarh and its product portfolio includes sponge iron, pig iron, MS billets, bloom, silico manganese, ferro manganese, ferro silicon, MS angles, MS channels and more. AIPL is a Star Export House certificate holder. It exports to countries like Nepal, Sri Lanka and Belgium. In addition, the company has a wind power plant with power generation capacity of 1.5 MW at Shajapur district in Madhya Pradesh. AIPL has entered into a power purchase agreement with Madhya Pradesh Power Corporation Limited for 25 years valid till 2036.
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| About the Group |
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Incorporated in 2021, Astha Ferro Alloys Private Limited (AFAPL) is a group company of Astha Innovations Private Limited and is engaged in the manufacturing of ferro alloys. The commercial operations started from October, 2021. Based in Chhattisgarh, AFAPL is promoted by Mr. Yash Nachrani and Mr. Dharamveer Nachrani.
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| Unsupported Rating |
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Not Applicable
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| Non-cooperation by the issuer/borrower |
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Acuité has been requesting for No Default Statements (NDS); however, despite multiple requests; the Company’s management has remained non-cooperative and not submitted the NDS for the preceding 03 consecutive months. Acuité believes that information risk is a critical component in such ratings, and noncooperation 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.
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| Limitation regarding information availability |
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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.
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| Rating Sensitivities |
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No information provided by the issuer / available for Acuite to comment upon.
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| Liquidity Position |
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No information provided by the issuer / available for Acuite to comment upon.
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| Outlook |
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Not Applicable
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| Other Factors affecting Rating |
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None
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| Particulars | Unit | FY 23 (Actual) | FY 22 (Actual) |
| Operating Income | Rs. Cr. | 125.83 | 76.88 |
| PAT | Rs. Cr. | 1.76 | 1.76 |
| PAT Margin | (%) | 1.40 | 2.28 |
| Total Debt/Tangible Net Worth | Times | 1.53 | 1.04 |
| PBDIT/Interest | Times | 2.13 | 2.70 |
| Status of non-cooperation with previous CRA |
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Not Applicable
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| Any other information |
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None
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| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Service Sector: https://www.acuite.in/view-rating-criteria-50.htm |
| Note on Complexity Levels of the Rated Instrument |
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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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| *Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||
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