Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 32.00 ACUITE BB- | Reaffirmed | Issuer not co-operating* -
Total Outstanding Quantum (Rs. Cr) 32.00 - -
 
Rating Rationale
­Acuité has reaffirmed the long-term rating of ‘ACUITE BB-’ (read as ACUITE Double B Minus) on the Rs. 32.00 crore bank facilities of Paul & Company Steel Merchants Private Limited. The rating continues to be flagged as “Issuer Not Cooperating” and is based on the best available information.

About the Company
Kolkata based Paul & Company Steel Merchants Private Limited was incorporated in 2009. It is engaged in trading as sole distributor of Tata Tiscon (Tata Steel) in West Bengal for Howrah and Hooghly district. The company facilitates distributorship through 2 branches in West Bengal managing 120 dealers in two districts. Exclusivity arrangement with TATA Steel apart from Paul & Co, Tata Steel has 6 other distributors in other regions of West Bengal. Mr. Suvajit Paul, Mr. Krishna Paul, Mr. Surajit Paul and Mr. Sunil Krishna Paul are directors of the entity.
 
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.
 
All Covenants
­Not Applicable
 
Liquidity Position
­No information provided by the issuer / available for Acuite to comment upon.
 
Outlook
­Not Applicable
 
Other Factors affecting Rating
­Not Applicable
 

Particulars Unit FY 22 (Actual) FY 21 (Actual)
Operating Income Rs. Cr. 168.15 131.74
PAT Rs. Cr. 3.54 1.42
PAT Margin (%) 2.11 1.08
Total Debt/Tangible Net Worth Times 0.70 0.93
PBDIT/Interest Times 4.06 2.52
Status of non-cooperation with previous CRA
­Not Applicable
 
Any other information
­Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups.
 
Applicable Criteria
• Trading Entities: https://www.acuite.in/view-rating-criteria-61.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
07 Jul 2022 Secured Overdraft Long Term 17.00 ACUITE BB- (Downgraded and Issuer not co-operating*)
Inventory Funding Long Term 15.00 ACUITE BB- (Downgraded and Issuer not co-operating*)
08 Apr 2021 Secured Overdraft Long Term 17.00 ACUITE BB (Downgraded and Issuer not co-operating*)
Inventory Funding Long Term 15.00 ACUITE BB (Downgraded and Issuer not co-operating*)
14 Jan 2020 Secured Overdraft Long Term 17.00 ACUITE BB+ (Issuer not co-operating*)
Inventory Funding Long Term 15.00 ACUITE BB+ (Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Axis Bank Not Applicable Inventory Funding Not Applicable Not Applicable Not Applicable 15.00 Simple ACUITE BB- | Reaffirmed | Issuer not co-operating*
ICICI Bank Ltd Not Applicable Secured Overdraft Not Applicable Not Applicable Not Applicable 17.00 Simple ACUITE BB- | Reaffirmed | Issuer not co-operating*
­

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