ACUITE A4+ | Reaffirmed | Issuer not co-operating*
RBI
Total Outstanding
0.00
110.00
-
-
-
Total Withdrawn
0.00
0.00
-
-
-
* The issuer did not co-operate; based on best available information.
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
Rating Rationale
Acuité has downgraded the long-term rating to 'ACUITE BB’ (read as ACUITE double B) from ‘ACUITE BB+’ (read as ACUITE double B plus) and reaffirmed the short term rating of ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs. 110.00 crore bank facilities of Earth Minerals Company Limited (EMCL) 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
Earth Minerals Company Limited (EMCL) was incorporated in the year 2002, is a part of the Hind Energy group. The company is engaged in coal washing and has an installed capacity of 4 MTPA. Presently in FY2023, EMCL’s shareholding has changed and HECBIL ceases to be a holding company of EMCL. However, the shareholding is with the promoter group and their other group entities and HECBIL has also extended corporate guarantees to EMCL’s bank loans. EMCL is led by Mr. Pawan Kumar Agrawal and Mr. Rajeev Agrawal.
About the Group
Hind Energy and Coal Benefication India Limited (HECBIL) was incorporated in 2005 as a private limited company and later on the constitution was changed to a limited company in 2010. The company is managed by Mr. Pawan Kumar Agrawal and Mr. Sanjay Agrawal along with a group of experienced professionals. HECBIL is engaged in the beneficiation of non-coking coal according to the Gross Calorific Value (GCV) requirement of the customers. The customer base comprises of power generating, steel and cement industries. The company also trades in reject coal which is the by-product of beneficiation. The group has an overall installed capacity of 16.64 MTPA. In HECBIL, the washing capacity is 6.48 MTPA.
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 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
Rating Sensitivity
Potential triggers (individual or collective) for an upward rating action:
Not Applicable
Potential triggers (individual or collective) for a downward rating action:
Not Applicable
Liquidity Position
"No information provided by the issuer / available for Acuite to comment upon."
ACUITE A4+
(Downgraded & Issuer not co-operating* from ACUITE A1)
Proposed Bank Guarantee
Short Term
10.00
ACUITE A4+
(Downgraded & Issuer not co-operating* from ACUITE A1)
Cash Credit
Long Term
70.00
ACUITE BB+
(Downgraded & Issuer not co-operating* from ACUITE A+ | Stable)
06 Nov 2023
Cash Credit
Long Term
20.00
ACUITE A+ | Stable
(Upgraded from ACUITE A- | Stable)
Cash Credit
Long Term
50.00
ACUITE A+ | Stable
(Assigned)
Bank Guarantee (BLR)
Short Term
30.00
ACUITE A1
(Upgraded from ACUITE A2+)
Proposed Bank Guarantee
Short Term
10.00
ACUITE A1
(Assigned)
07 Feb 2023
Cash Credit
Long Term
10.00
ACUITE A- | Stable
(Assigned)
Bank Guarantee (BLR)
Short Term
30.00
ACUITE A2+
(Assigned)
Proposed Short Term Bank Facility
Short Term
10.00
ACUITE A2+
(Assigned)
* The issuer did not co-operate; based on best available information.
Lender’s Name
ISIN
Facilities
Listing Status
Regulated By
Date Of Issuance
Coupon Rate
Maturity Date
Quantum (Rs. Cr.)
Complexity Level
Rating
State Bank of India
Not avl. / Not appl.
Bank Guarantee (BLR)
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
30.00
Simple
ACUITE A4+ | Reaffirmed | Issuer not co-operating*
State Bank of India
Not avl. / Not appl.
Cash Credit
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
70.00
Simple
ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
Not Applicable
Not avl. / Not appl.
Proposed Bank Guarantee
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
10.00
Simple
ACUITE A4+ | Reaffirmed | Issuer not co-operating*
* The issuer did not co-operate; based on best available information.
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
