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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 10.00 | ACUITE B | Downgraded & Withdrawn | Issuer not co-operating* | - |
| Bank Loan Ratings | 11.00 | - | ACUITE A4 | Reaffirmed & Withdrawn | Issuer not co-operating* |
| Total Outstanding | 0.00 | - | - |
| Total Withdrawn | 21.00 | - | - |
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Rating Rationale |
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Acuité has downgraded and withdrawn its long-term rating to ‘ACUITE B’ (read as ACUITE B) from ‘ACUITE B+’ (read as ACUITE B plus) and reaffirmed and withdrawn the short term rating of 'ACUITE A4' (Read as ACUITE A four) on the Rs.21.00 crore bank facilities of Paxal Corporation (PC). The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information. The rating is downgraded on account of information risk. The rating has been withdrawn on Acuite's policy of withdrawal of ratings as applicable to the respective instrument/facility. The rating has been withdrawn on account of the request received from the company, and the NOC(No Objection Certificate) received from the banker. |
| About the Company |
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Paxal Corporation established in 1950 by Mr. Baboothmal Bhandari and family, is a Bangalore based partnership firm. The firm is mainly involved in trading of steel products such as sheets, coils and strips, among others. The firm, led by the second generation entrepreneur, Mr. B. Champalal Bhandari, son of Mr. Baboothmal, caters to multiple small traders and manufacturers in Bangalore and some parts of Tamil Nadu. PC imports stainlesssteel from various suppliers in Malaysia, Spain, Vietnam and China, among others.
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| Unsupported Rating |
| Not Applicable |
| 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 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.
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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 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 |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 17 (Actual) | FY 16 (Actual) |
| Operating Income | Rs. Cr. | 44.72 | 34.86 |
| PAT | Rs. Cr. | 0.82 | 0.53 |
| PAT Margin | (%) | 1.83 | 1.52 |
| Total Debt/Tangible Net Worth | Times | 1.30 | 1.77 |
| PBDIT/Interest | Times | 1.62 | 1.34 |
| Status of non-cooperation with previous CRA |
| Not Applicable |
| Any other information |
| None |
| Applicable Criteria |
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• 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 |
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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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