Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 43.55 ACUITE D | Reaffirmed | Issuer not co-operating* -
Bank Loan Ratings 31.45 - ACUITE D | Reaffirmed | Issuer not co-operating*
Total Outstanding 75.00 - -
 
Rating Rationale

­Acuité has reaffirmed the long-term rating of ‘ACUITE D’ (read as ACUITE D) and the short-term rating of ‘ACUITE D’ (read as ACUITE D) on the Rs.75.00 Crore bank facilities of Haldia Steels Private Limited (HSPL). The rating continues to be flagged as “Issuer Not Cooperating” and is based on the best available information.


About the Company

­Incorporated in 1996, Haldia Steels Private Limited is a Kolkata based company having its manufacturing unit in Durgapur, West Bengal. The company is engaged in manufacturing of ferro alloys, sponge iron and billets with the installed capacity of 120,000 MTPA for Sponge Iron, Steel Billets for 60,000 MTPA and Ferro alloys for 12,000 MTPA. Currently, the company is managed by Mr. Vikas Bansal, Mr. Satpal Bansal and Mr. Markanda Samanta. The company procures manganese ore, iron ore pallets, dolomite and coal locally and sells steel billets and ferro alloys to its customers based in Kolkata.

 
About the Group

­Incorporated in 1994, Brand Alloys Private Limited (BAPL) is a Kolkata based company having its manufacturing unit in Serampore, West Bengal. The company is engaged in manufacturing of TMT rebars, railway components and bogies. Further, BAPL is into an agreement with Tata Steels Limited for conversion of billets into TMT Rebar from last 10 years. Currently, the company is being managed by Mr. Vikas Bansal, Mr. Satpal Bansal and Mr. Markanda Samanta. The raw materials, diesel, coal and railway components are procured locally from companies based out of Kolkata. The company also caters to the local customers in Kolkata. Presently, the installed capacity for TMT rebars is 60,000 MTPA and for railways components, installed capacity stood at 10,000 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:

­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 Sensitivity

­­"No information provided by the issuer / available for Acuite to comment upon."

 
All Covenants

­­Not Applicable

 
Liquidity Position

­­"No information provided by the issuer / available for Acuite to comment upon."

 
Outlook

­­Not Applicable

 
Other Factors affecting Rating

­­Not Applicable

 

Particulars Unit FY 23 (Actual) FY 22 (Actual)
Operating Income Rs. Cr. 438.37 530.23
PAT Rs. Cr. 6.90 5.78
PAT Margin (%) 1.57 1.09
Total Debt/Tangible Net Worth Times 0.38 0.45
PBDIT/Interest Times 3.57 2.47
Status of non-cooperation with previous CRA

­­Not Applicable

 
Any other information

None­

 
Applicable Criteria
• 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
• Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.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
26 Sep 2022 Cash Credit Long Term 35.00 ACUITE D ( Issuer not co-operating*)
Letter of Credit Short Term 30.00 ACUITE D ( Issuer not co-operating*)
Proposed Bank Facility Long Term 1.45 ACUITE D ( Issuer not co-operating*)
Term Loan Long Term 8.55 ACUITE D ( Issuer not co-operating*)
28 Jun 2021 Term Loan Long Term 8.55 ACUITE D (Downgraded and Issuer not co-operating*)
Letter of Credit Short Term 30.00 ACUITE D (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 35.00 ACUITE D (Downgraded and Issuer not co-operating*)
Proposed Bank Facility Long Term 1.45 ACUITE D (Downgraded and Issuer not co-operating*)
09 Mar 2021 Cash Credit Long Term 35.00 ACUITE BB- (Downgraded and Issuer not co-operating*)
Letter of Credit Short Term 30.00 ACUITE A4+ (Issuer not co-operating*)
Proposed Bank Facility Long Term 1.45 ACUITE BB- (Downgraded and Issuer not co-operating*)
Term Loan Long Term 8.55 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
Punjab National Bank Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 35.00 Simple ACUITE D | Reaffirmed | Issuer not co-operating*
Punjab National Bank Not Applicable Letter of Credit Not Applicable Not Applicable Not Applicable 30.00 Simple ACUITE D | Reaffirmed | Issuer not co-operating*
Not Applicable Not Applicable Proposed Long Term Bank Facility Not Applicable Not Applicable Not Applicable 1.45 Simple ACUITE D | Reaffirmed | Issuer not co-operating*
Punjab National Bank Not Applicable Term Loan Not available Not available Not available 8.55 Simple ACUITE D | Reaffirmed | Issuer not co-operating*

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