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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 21.38 | ACUITE BB+ | Downgraded | Issuer not co-operating* | - |
| Total Outstanding Quantum (Rs. Cr) | 21.38 | - | - |
| 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 the Rs. 21.38 Cr. bank facilities of Kalindi Ispat Private Limited (KIPL).
The rating is now flagged as “Issuer Not Cooperating” and is based on the best available information. The rating has been downgraded on account of information risk. |
| About the Company |
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Incorporated in September 2004, Kalindi Ispat Privvate Limited (KIPL) is a Bilaspur, Chhatisgarh based company promoted by the Singhania family. The company has two kilns with an installed capacity of 60,000 metric tonne per annum (MTPA) for manufacturing sponge iron. Manufacturing facility of the company is located in Bilaspur. The company sells mainly in the markets of Chhattisgarh, Madhya Pradesh and adjacent states to the billet and TMT bar manufacturers.
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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. |
| 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 Acuite 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 Acuite 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 (Actual) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 147.64 | 102.03 |
| PAT | Rs. Cr. | 8.01 | 2.16 |
| PAT Margin | (%) | 5.43 | 2.12 |
| Total Debt/Tangible Net Worth | Times | 0.44 | 0.35 |
| PBDIT/Interest | Times | 19.24 | 4.78 |
| Status of non-cooperation with previous CRA |
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INDIA RATINGS, vide its press release dated May 11, 2022 had denoted the rating of Kalindi Ispat Private Limited as 'IND BB+/A4+; ISSUER NOT COOPERATING’.
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| Any other information |
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Not Applicable
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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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