Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 17.96 ACUITE BB+ | Reaffirmed | Issuer not co-operating* -
Bank Loan Ratings 62.04 - ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 80.00 - -
 
Rating Rationale

­Acuité has reaffirmed the long-term rating of ‘ACUITE BB+’ (read as ACUITE double B plus) and the short term rating of ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs. 80.00 crore bank facilities of Step Industries Private Limited. The rating is flagged as “Issuer Not Cooperating” and is based on best available information.


About the Company

­Step Industries Private Limited, incorporated in 2011, is promoted by Mr. Ankit Tayal, Mr. Deepanshu Tayal and Mr. Sunil Tayal. The company manufactures aluminum cable wires required for electrification purpose. Additionally, SIPL undertakes EPC contracts on a tender basis. The company has executed electrification, installation and commission of substations for Madhya Pradesh Paschim Kshetra Vidyut Vitran Company, Assam Power Distribution Company Limited and Jharkhand Bijali Vitran Nigam Limited. SIPL has aluminum cable manufacturing capacity of 10000 km cable/ year located at Alwar, Rajasthan.

 
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."

 
Material Covenants

­Not Applicable

 
Liquidity Position

­"No information provided by the issuer / available for Acuite to comment upon."

 
Outlook

­Not Applicable

 
Other Factors affecting Rating

­Not Applicable

 

Particulars Unit FY 22 (Actual) FY 21 (Actual)
Operating Income Rs. Cr. 53.46 79.41
PAT Rs. Cr. 0.81 1.80
PAT Margin (%) 1.52 2.26
Total Debt/Tangible Net Worth Times 0.82 0.85
PBDIT/Interest Times 1.77 1.88
Status of non-cooperation with previous CRA

­Not Applicable

 
Any other information

­Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups.

 
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
29 Nov 2021 Cash Credit Long Term 1.00 ACUITE BB+ (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 5.00 ACUITE BB+ (Downgraded and Issuer not co-operating*)
Bank Guarantee Short Term 19.50 ACUITE A4+ (Downgraded and Issuer not co-operating*)
Proposed Cash Credit Long Term 5.00 ACUITE BB+ (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 6.96 ACUITE BB+ (Downgraded and Issuer not co-operating*)
Proposed Bank Guarantee Short Term 11.54 ACUITE A4+ (Downgraded and Issuer not co-operating*)
Bank Guarantee Short Term 21.00 ACUITE A4+ (Downgraded and Issuer not co-operating*)
Bank Guarantee Short Term 10.00 ACUITE A4+ (Downgraded and Issuer not co-operating*)
03 Sep 2020 Bank Guarantee Short Term 10.00 ACUITE A3 (Reaffirmed)
Bank Guarantee Short Term 21.00 ACUITE A3 (Reaffirmed)
Bank Guarantee Short Term 19.50 ACUITE A3 (Reaffirmed)
Cash Credit Long Term 6.96 ACUITE BBB- | Negative (Reaffirmed)
Cash Credit Long Term 5.00 ACUITE BBB- | Negative (Reaffirmed)
Proposed Cash Credit Long Term 5.00 ACUITE BBB- | Negative (Reaffirmed)
Proposed Bank Guarantee Short Term 11.54 ACUITE A3 (Reaffirmed)
Cash Credit Long Term 1.00 ACUITE BBB- | Negative (Reaffirmed)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Union Bank of India Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 19.50 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*
HDFC Bank Ltd Not Applicable Bank Guarantee/Letter of Guarantee Not Applicable Not Applicable Not Applicable 21.00 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Indusind Bank Ltd Not Applicable Bank Guarantee/Letter of Guarantee Not Applicable Not Applicable Not Applicable 10.00 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Indusind Bank Ltd Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 5.00 Simple ACUITE BB+ | Reaffirmed | Issuer not co-operating*
Union Bank of India Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 6.96 Simple ACUITE BB+ | Reaffirmed | Issuer not co-operating*
HDFC Bank Ltd Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 1.00 Simple ACUITE BB+ | Reaffirmed | Issuer not co-operating*
Not Applicable Not Applicable Proposed Bank Guarantee Not Applicable Not Applicable Not Applicable 11.54 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Not Applicable Not Applicable Proposed Cash Credit Not Applicable Not Applicable Not Applicable 5.00 Simple ACUITE BB+ | Reaffirmed | Issuer not co-operating*
­

Contacts
Analytical Rating Desk
About Acuité Ratings & Research

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