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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 77.24 | ACUITE BB- | Downgraded & Withdrawn | Issuer not co-operating* | - |
| Bank Loan Ratings | 26.57 | - | ACUITE A4+ | Reaffirmed & Withdrawn | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 0.00 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 103.81 | - | - |
| Rating Rationale |
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Acuité has downgraded & withdrawn the long term rating of ‘ACUITE BB-’ (read as ACUITE double B Minus) from ACUITE BB (Read as ACUITE double B), and reaffirmed and withdrawn the short term rating of ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs. 103.81 crore bank facilities of Hansa Metallics Limited. The rating continues to be flagged as “Issuer NotCooperating” and is based on the best available information.
The rating has been downgraded on account of information risk. The rating withdrawal is in accordance with the Acuité's policy on withdrawal of rating. The rating is being withdrawn on account of the request received from the firm and No Objection Certificate received from the banker. |
| About the Company |
| Hansa Metallics Limited incorporated in the year 1997, promoted by Mr. Bipan Kumar Vasudeva is engaged in the manufacturing of ERW precision tubes. The manufacturing facility of the company is located in Lalru (Punjab) and has an installed capacity of 60000 MT per annum. The company caters to clients in Cycle and Auto Industry which include Hero Cycles Ltd, Mapco Industries, among others. |
| 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 continues to be 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. |
| About the Rated Entity - Key Financials |
| The entity has not provided the latest financial statements for Acuite to comment |
| Rating Sensitivity |
| No information provided by the issuer / available for Acuite to comment upon |
| Material Covenants |
| None |
| 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 |
| Brickworks Ratings vide its press release dated 28.03.2022, downgraded the company to BWR BB+/A4+; INC |
| Any other information |
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Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups |
| Applicable Criteria |
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• 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 |
| 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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