Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 22.99 ACUITE BB | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 0.34 - ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Total Outstanding 23.33 - -
 
Rating Rationale

­­Acuité has downgraded the long-term rating to ‘ACUITE BB’ (read as ACUITE double B) from 'ACUITE BB+' (read as ACUITE double B plus) and reaffirmed the short term rating of ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs.23.33 crore bank facilities of Shilpa Alloys Private Limited (SAPL) 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

­­­Shilpa Alloys Private Limited (SAPL), incorporated in 1990, is a Jaipur-based company promoted by Mr. Ved Prakash Gupta, Mr. Vaibhav Gupta and Mr. Sushant Gupta. The company commenced commercial operations in October 2009 and is involved in manufacturing of unmachined wear-resistant steel castings. It caters to industries such as cement, minerals, and mining among others with manufacturing facilities located at Jaipur. The company currently has an installed capacity of 13545 MTPA

 
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.
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 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 23 (Actual) FY 22 (Actual)
Operating Income Rs. Cr. 125.96 111.41
PAT Rs. Cr. 3.29 5.93
PAT Margin (%) 2.61 5.33
Total Debt/Tangible Net Worth Times 1.25 1.21
PBDIT/Interest Times 2.68 7.96
Status of non-cooperation with previous CRA

­Not Applicable

 
Any other information

­None

 
Applicable Criteria
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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
19 Jun 2023 Cash Credit Long Term 13.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Positive)
Term Loan Long Term 0.24 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Positive)
Term Loan Long Term 0.38 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Positive)
Term Loan Long Term 1.36 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Positive)
Term Loan Long Term 5.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Positive)
Term Loan Long Term 1.88 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Positive)
Term Loan Long Term 1.13 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Positive)
Proposed Short Term Bank Facility Short Term 0.34 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3)
30 Mar 2022 Cash Credit Long Term 13.00 ACUITE BBB- | Positive (Reaffirmed)
Term Loan Long Term 0.24 ACUITE BBB- | Positive (Reaffirmed)
Term Loan Long Term 0.38 ACUITE BBB- | Positive (Reaffirmed)
Term Loan Long Term 1.36 ACUITE BBB- | Positive (Reaffirmed)
Term Loan Long Term 5.00 ACUITE BBB- | Positive (Assigned)
Term Loan Long Term 1.88 ACUITE BBB- | Positive (Assigned)
Term Loan Long Term 1.13 ACUITE BBB- | Positive (Assigned)
Proposed Short Term Bank Facility Short Term 0.34 ACUITE A3 (Reaffirmed)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 13.00 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
Not Applicable Not avl. / Not appl. Proposed Short Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.34 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*
State Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
State Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.88 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
State Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.13 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
State Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.24 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
State Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.38 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
State Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.36 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )

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