Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 1.20 ACUITE B+ | Reaffirmed | Issuer not co-operating* -
Bank Loan Ratings 7.55 - ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding 8.75 - -
 
Rating Rationale

­­Acuité has reaffirmed the long term rating of ‘ACUITE B+’ (read as ACUITE B plus) and the short term rating of ‘ACUITE A4’ (read as ACUITE A four) on the Rs.8.75 crore bank facilities of Lalwani Metallics Private Limited (LMPL).The rating is now flagged as “Issuer Not Cooperating” based on account of information risk.

Acuite had sent repeated reminders to the company for sharing the No Default Statement(NDS); but, despite multiple requests; the company’s management has remained non-cooperative in providing  the NDS  for last 3 consecutive months. However, the banker has provided their feedback that the conduct of the account is satisfactory.

About the Company
­­Incorporated in 1994, Lalwani Metallics Private Limited (LMPL) is a Kolkata based company engaged in the trading of nickel cathodes, ferro silicon and other metals and alloys. LMPL is promoted by Mr. Sanjeev Lalwani, Mr. Kamal Kishore Lalwani and Mrs. Snehlata Lalwani.
 
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 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
­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 endeavoured 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 Sensitivities
­"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. 31.16 29.03
PAT Rs. Cr. 1.21 (1.82)
PAT Margin (%) 3.88 (6.28)
Total Debt/Tangible Net Worth Times 0.31 0.01
PBDIT/Interest Times 20.23 9.85
Status of non-cooperation with previous CRA
Not Applicable
 
Any other information
­None
 
Applicable Criteria
• 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
• Trading Entitie: https://www.acuite.in/view-rating-criteria-61.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
25 Oct 2023 Bank Guarantee Short Term 0.05 ACUITE A4 (Reaffirmed)
Cash Credit Long Term 1.20 ACUITE B+ | Stable (Reaffirmed)
Letter of Credit Short Term 7.50 ACUITE A4 (Reaffirmed)
08 Aug 2022 Bank Guarantee Short Term 0.05 ACUITE A4 (Reaffirmed)
Letter of Credit Short Term 7.50 ACUITE A4 (Reaffirmed)
Cash Credit Long Term 1.20 ACUITE B+ | Stable (Reaffirmed)
12 Jul 2022 Letter of Credit Short Term 7.50 ACUITE A4 ( Issuer not co-operating*)
Cash Credit Long Term 1.20 ACUITE B+ ( Issuer not co-operating*)
Bank Guarantee Short Term 0.05 ACUITE A4 ( Issuer not co-operating*)
26 Feb 2021 Bank Guarantee Short Term 0.05 ACUITE A4 (Reaffirmed)
Letter of Credit Short Term 7.50 ACUITE A4 (Reaffirmed)
Cash Credit Long Term 1.20 ACUITE B+ | Stable (Reaffirmed)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
UCO Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.05 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
UCO Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.20 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*
UCO Bank Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 7.50 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*

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