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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 23.00 | ACUITE BB- | Reaffirmed | Issuer not co-operating* | - |
| Total Outstanding Quantum (Rs. Cr) | 23.00 | - | - |
| Rating Rationale |
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Acuité has reaffirmed the long-term rating of ‘ACUITE BB-’ (read as ACUITE double B minus) on the Rs. 23.00 crore bank facilities of Ravi Iron Limited (RIL). This rating is now an indicative rating and is based on best available information. Rating has been marked as indicative on account of information risk.
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| About the Company |
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New Delhi based, RIL was incorporated in 1997 by Mr. Ravindra Kumar Garg and his son, Mr. Manu Garg, RIL is engaged in trading of long and flat steel products. Some of the products the company deals in are steel plates, steel bars, rounds and channels. Company also undertakes EPC contracts for installation of solar power plant.
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| Non-cooperation by the issuer/borrower |
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Acuité has been requesting for information critical for rating exercise from the rated entity. However, the issuer / borrower failed to submit such information before 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 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.
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| Rating Sensitivities |
| No information has been shared by the entity for Acuite to comment |
| Material Covenants |
| None |
| Liquidity Position |
| No information provided by the issuer / available for Acuite to comment upon |
| Outlook: |
| Not Applicable |
| Other Factors affecting Rating |
| None |
| Key Financials: |
| The entity has not shared the latest financial statement for Acuite to comment upon. |
| Status of non-cooperation with previous CRA |
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ICRA, vide its press release dated February 22, 2023 had denoted the rating of Ravi Iron Limited as ‘ICRA B+; ISSUER NOT COOPERATING’ on account of lack of adequate information required for monitoring of ratings. CRISIL, vide its press release dated February 24, 2022 had denoted the rating of Ravi Iron Limited as ‘CRISIL B+; ISSUER NOT COOPERATING’ on account of lack of adequate information required for monitoring of ratings. |
| Any other information |
| Acuite is yet to receive the latest NDS (No Default Statement) despite repeated request and followups. |
| Applicable Criteria |
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• 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 |
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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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