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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 32.65 | ACUITE BB+ | Downgraded | Issuer not co-operating* | - |
| Total Outstanding Quantum (Rs. Cr) | 32.65 | - | - |
| Rating Rationale |
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Acuité has downgraded its long term rating to 'ACUITE BB+' (read as ACUITE Double B Plus) from 'ACUITE BBB-' (read as ACUITE Triple B Minus) on Rs. 32.65 Cr bank facilities of HARIOM INGOTS AND POWER PRIVATE LIMITED. The rating is now flagged as “Issuer Not-Cooperating” as Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups, and based on the best available information.
The rating has been downgraded on accout of information risk. |
| About the Company |
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Incorporated in 2004, HARIOM INGOTS AND POWER PRIVATE LIMITED (HIPPL) is promoted by the Agrawal family, based in Bhilai, and Chhattisgarh. The company is engaged in the manufacture of MS billets and TMT bars with a current capacity of 90,000 MTPA for billets and 60,000 MTPA for TMT bars. The TMT bars manufactured by the company are sold under the brand ‘Hariom TMT’. In FY2015, the company started manufacturing epoxy-coated TMT bars, which are more durable than the normal TMT bars and are sold under the brand ‘Hariom Epoxy Shield’. In addition, HIPPL is involved in the trading of TMT bars and various rolled products manufactured by other steel players. The company is currently headed by Mr. Santosh Kumar Agrawal, Mr. Sandeep Agrawal, Mr. Bhagwan Das Agrawal, and Mr. Ajay Agrawal.
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| Non-cooperation by the issuer/borrower |
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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.
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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 Acuité to comment upon.
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| All Covenants |
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None
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| Liquidity Position |
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No information provided by the issuer / available for Acuité 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 22 (Provisional) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 314.49 | 263.71 |
| PAT | Rs. Cr. | 1.86 | 2.13 |
| PAT Margin | (%) | 0.59 | 0.81 |
| Total Debt/Tangible Net Worth | Times | 0.94 | 0.71 |
| PBDIT/Interest | Times | 3.38 | 3.82 |
| Status of non-cooperation with previous CRA |
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ICRA, vide its press release dated Nov 11, 2022 had denoted the rating of Hariom Ingots and Power Private Limited as ‘ICRA B+/Stable/A4; ISSUER NOT COOPERATING’.
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| 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.
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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 • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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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