Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 12.00 ACUITE BB+ | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 8.00 - ACUITE A4+ | Downgraded | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 20.00 - -
 
Rating Rationale
Acuité has downgraded the long term rating from ‘ACUITE BBB-’ (read as ACUITE triple B minus) to ‘ACUITE BB+’ (read as ACUITE double B plus) and also downgraded short term rating to ACUITE A4+’ (read as ACUITE A four plus) from ‘ACUITE A3’ (read as ACUITE A three) on the Rs.20.00 Cr bank facilities of Govind Steel Company Limited (GSCL).
The rating is now flagged as “Issuer NotCooperating” and is based on the best available information.
The rating has been downgraded on account of inforamtion risk. ­

About the Company
Incorporated in 1958, Govind Steel Company Limited (GSCL) is a Kolkata based company involved in manufacturing of manhole covers, manhole sets, C. I. castings, D. I. castings etc. Promoted by Mr. Dinesh Kumar Seksaria, its management includes Mr. Gaurav Seksaria and Mr. Chatar Singh Kathotia. The plant has an installed capacity of 18,000 tons per annum of foundry (C.I Castings) and 6,000 tons per annum of ductile furnaces (D.I Castings) in Rishra, West Bengal. GSCL sells around 60 per cent of its products to the local market and the remaining is exported.­
 
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 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 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.­­
 
Rating Sensitivities
­­­No information provided by the issuer / available for Acuite to comment upon.
 
Material Covenants
None­
 
Liquidity Position
Not Applicable­
 
Outlook: Not Applicable­
­
 
Other Factors affecting Rating
None­
 

Particulars Unit FY 22 (Actual) FY 21 (Actual)
Operating Income Rs. Cr. 253.23 122.67
PAT Rs. Cr. 7.40 5.85
PAT Margin (%) 2.92 4.77
Total Debt/Tangible Net Worth Times 1.75 1.52
PBDIT/Interest Times 4.13 3.41
Status of non-cooperation with previous CRA
­CRISIL vide its press release dated 27.10.2022, had rated the company to CRISIL B+/stable/A4; Issuer not cooperating.
 
Any other information
Acuite is yet to receive the latest No Default Statement  from the rated entity despite repeated requests and followups.
 
Applicable Criteria
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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
 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
03 May 2022 Proposed Bank Facility Short Term 5.00 ACUITE A3 (Upgraded from ACUITE A4+)
Cash Credit Long Term 12.00 ACUITE BBB- | Stable (Upgraded from ACUITE BB+)
Letter of Credit Short Term 3.00 ACUITE A3 (Upgraded from ACUITE A4+)
08 Feb 2021 Proposed Bank Facility Short Term 5.00 ACUITE A4+ (Downgraded and Issuer not co-operating*)
Letter of Credit Short Term 3.00 ACUITE A4+ (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 12.00 ACUITE BB+ (Downgraded and Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Axis Bank Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 12.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
Axis Bank Not Applicable Letter of Credit Not Applicable Not Applicable Not Applicable 3.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating*
Not Applicable Not Applicable Proposed Short Term Bank Facility Not Applicable Not Applicable Not Applicable 5.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating*

Contacts
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About Acuité Ratings & Research
Acuité Ratings & Research Limitedwww.acuite.in