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Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
Bank Loan Ratings | 15.00 | ACUITE B | Downgraded | Issuer not co-operating* | - |
Total Outstanding | 15.00 | - | - |
Rating Rationale |
Acuité has downgraded the long-term rating to 'ACUITE B' (read as ACUITE B) from ‘ACUITE B+’ (read as ACUITE B plus) on the Rs. 15.00 crore bank facilities of P P Steel Corporation on account of information risk. The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information. |
About the Company |
Hariyana based, P P Steel Corporation was set up in 1991, promoted by Mr. Naveen Pasricha, trades in iron and steel products such as wire rods and bars largely used auto industry in two wheelers, 4 wheelers and trucks. The customers of the firm comprise of players in fasteners and bright bar manufacturing segment. Some of the key suppliers for the company are Jindal Steel, Rashtriya Ispat, Electro steel amongst other manufacturers in the steel segment. |
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 non-cooperation by the issuer along with unwillingness to provide information could be a sign of potential deterioration in its overall credit quality. |
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 ratingis 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 17 (Actual) | FY 16 (Actual) |
Operating Income | Rs. Cr. | 207.78 | 220.48 |
PAT | Rs. Cr. | 4.20 | 2.52 |
PAT Margin | (%) | 2.02 | 1.14 |
Total Debt/Tangible Net Worth | Times | 1.85 | 2.53 |
PBDIT/Interest | Times | 2.87 | 2.16 |
Status of non-cooperation with previous CRA |
Not Applicable |
Any other information |
None |
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. |
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About Acuité Ratings & Research |
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