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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 83.00 | ACUITE BB+ | Downgraded | Issuer not co-operating* | - |
| Bank Loan Ratings | 114.00 | - | ACUITE A4+ | Downgraded | Issuer not co-operating* |
| Total Outstanding | 197.00 | - | - |
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Rating Rationale |
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Acuité has downgraded the long-term rating to ‘ACUITE BB+’ (read as ACUITE Double B plus) from ‘ACUITE BBB-’ (read as ACUITE Triple B minus) and short-term rating to 'ACUITE A4+' (read as ACUITE A four plus) from 'ACUITE A3' (read as ACUITE A three) on the Rs.197.00 Cr. bank facilities of Shree Balaji Alumnicast Private Limited. This rating is now an indicative rating and is based on best available information. The rating has been downgraded on account of information risk and the company has not provided latest NDS for last 3 months consecutively.
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| About the Company |
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Shree Balaji Alumnicast Private Limited (SBAPL) was incorporated in 1995 by Mr. Sunil Aggarwal. The company started trading aluminium scrap, and then, as a backward integration, it got engaged in the manufacturing business by setting up a unit at Dharuhera, Haryana. Since 2008, the company has been engaged in the production of aluminium alloy (molten as well as in solid form) for original equipment manufacturers and automobile players. SBAPL has seven manufacturing units: four in Haryana (located at Dharuhera, Gurgoan, Binola, and Mewat) and one each at Ludhiana (Punjab), Hosur (Tamil Nadu), and Bangalore (Karnataka). The total production capacity of the company stood at 71,200 MT per year. The company has signed MOUs with various well-established vendors (viz., Rockman, Ricco Auto, Alicon Cast Alloys, Kiran Udyog) of Maruti, Hero Motocorp, Honda, etc. for the supply of liquid or molten alloys.
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| Unsupported Rating |
| Not Applicable |
| Non-cooperation by the issuer/borrower |
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Acuité has been requesting for No Default Statements (NDS); however, despite multiple requests; the Company’s management has remained non-cooperative and not submitted the NDS for the preceding three consecutive months. 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 noncooperation 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 Sensitivities |
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No information provided by the issuer / available for Acuite to comment upon.
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| Liquidity Position |
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No information provided by the issuer / available for Acuite to comment upon.
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| Outlook |
| Not Applicable |
| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 23 (Actual) | FY 22 (Actual) |
| Operating Income | Rs. Cr. | 740.80 | 625.54 |
| PAT | Rs. Cr. | 7.61 | 4.90 |
| PAT Margin | (%) | 1.03 | 0.78 |
| Total Debt/Tangible Net Worth | Times | 2.38 | 1.75 |
| PBDIT/Interest | Times | 1.78 | 1.49 |
| Status of non-cooperation with previous CRA |
| Not Applicable |
| Any other information |
| None |
| 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 • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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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