Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 30.90 ACUITE BB | Reaffirmed | Issuer not co-operating* -
Bank Loan Ratings 56.10 - ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Total Outstanding 87.00 - -
 
Rating Rationale

­Acuité has reaffirmed the long term rating of ‘ACUITE BB’ (read as ACUITE double B)  and reaffirmed the short term rating of ‘ACUITE A4+’(read as ACUITE A four plus) on the Rs.87.00 Cr. bank facilities of Kritika Wires Limited. The rating continues to be flagged as “Issuer Not-Cooperating” and based on the best available information.


About the Company

­Kritika Wires Limited (Formerly known as Kritika Wires Private Limited) was incorporated in 2006 as a Kolkata based company. The company got listed in National Stock Exchange (NSE) on October 2018. It is promoted by Mr. Naresh Kumar Agarwal and Mr. Hanuman Prasad Agarwal of Kolkata and is engaged in the manufacturing of galvanized and non-galvanized wires. The company has its manufacturing unit in Dhulagarh Industrial Park with an installed capacity of 66200 MTPA. The company caters to state electricity boards such as West Bengal State Electricity Distribution Company Limited (WBSEDCL), Punjab State Power Corporation Limited (PSPCL), Uttar Pradesh Power Corporation Limited (UPPCL), and Gujarat Urja Vikas Nigam Limited (GUVNL) among others. Apart from the government parties, the company also supplies wires to private companies such as Bajaj Wires Private Limited, Lumino Industries Limited, Laser Power & Infra Pvt Ltd and etc. The company is also engaged in the export of wires to Bangladesh.

 
Unsupported Rating
­None
 
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."

 
Liquidity Position

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

 
Outlook

­Not Applicable

 
Other Factors affecting Rating
­None
 

Particulars Unit FY 23 (Actual) FY 22 (Actual)
Operating Income Rs. Cr. 282.50 244.42
PAT Rs. Cr. 5.99 4.03
PAT Margin (%) 2.12 1.65
Total Debt/Tangible Net Worth Times 0.30 0.31
PBDIT/Interest Times 4.17 3.82
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

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
22 Nov 2022 Proposed Long Term Loan Long Term 0.40 ACUITE BB ( Issuer not co-operating*)
Bank Guarantee Short Term 5.50 ACUITE A4+ ( Issuer not co-operating*)
Bills Discounting Short Term 19.00 ACUITE A4+ ( Issuer not co-operating*)
Letter of Credit Short Term 8.60 ACUITE A4+ ( Issuer not co-operating*)
Letter of Credit Short Term 8.50 ACUITE A4+ ( Issuer not co-operating*)
Bank Guarantee Short Term 4.50 ACUITE A4+ ( Issuer not co-operating*)
Bills Discounting Short Term 10.00 ACUITE A4+ ( Issuer not co-operating*)
Cash Credit Long Term 20.50 ACUITE BB ( Issuer not co-operating*)
Cash Credit Long Term 10.00 ACUITE BB ( Issuer not co-operating*)
24 Aug 2021 Cash Credit Long Term 10.00 ACUITE BB (Downgraded and Issuer not co-operating*)
Proposed Long Term Loan Long Term 0.40 ACUITE BB (Downgraded and Issuer not co-operating*)
Bills Discounting Short Term 10.00 ACUITE A4+ ( Issuer not co-operating*)
Cash Credit Long Term 10.00 ACUITE BB (Downgraded and Issuer not co-operating*)
Bills Discounting Short Term 10.00 ACUITE A4+ ( Issuer not co-operating*)
Letter of Credit Short Term 8.50 ACUITE A4+ ( Issuer not co-operating*)
Bank Guarantee Short Term 4.50 ACUITE A4+ ( Issuer not co-operating*)
Bills Discounting Short Term 19.00 ACUITE A4+ ( Issuer not co-operating*)
Bank Guarantee Short Term 5.50 ACUITE A4+ ( Issuer not co-operating*)
Proposed Long Term Loan Long Term 0.40 ACUITE BB (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 20.50 ACUITE BB (Downgraded and Issuer not co-operating*)
Letter of Credit Short Term 8.60 ACUITE A4+ ( Issuer not co-operating*)
Cash Credit Long Term 20.50 ACUITE BB (Downgraded and Issuer not co-operating*)
Bank Guarantee Short Term 4.50 ACUITE A4+ ( Issuer not co-operating*)
Letter of Credit Short Term 8.60 ACUITE A4+ ( Issuer not co-operating*)
Bank Guarantee Short Term 5.50 ACUITE A4+ ( Issuer not co-operating*)
Bills Discounting Short Term 19.00 ACUITE A4+ ( Issuer not co-operating*)
Letter of Credit Short Term 8.50 ACUITE A4+ ( Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
State Bank of India Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.50 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Karnataka Bank Ltd Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 4.50 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Karnataka Bank Ltd Not avl. / Not appl. Bills Discounting Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 19.00 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*
State Bank of India Not avl. / Not appl. Bills Discounting Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Karnataka Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE BB | Reaffirmed | Issuer not co-operating*
State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 20.50 Simple ACUITE BB | Reaffirmed | Issuer not co-operating*
Karnataka Bank Ltd Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 8.60 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*
State Bank of India Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 8.50 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Not Applicable Not avl. / Not appl. Proposed Long Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.40 Simple ACUITE BB | Reaffirmed | Issuer not co-operating*

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