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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 29.65 | ACUITE D | Downgraded | Issuer not co-operating* | - |
| Bank Loan Ratings | 31.00 | - | ACUITE D | Downgraded | Issuer not co-operating* |
| Total Outstanding | 60.65 | - | - |
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Rating Rationale |
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Acuité has downgraded the long-term rating to ‘ACUITE D’ (read as ACUITE D) From ‘ACUITE BB-’ (read as ACUITE double B minus) and the short-term rating to ‘ACUITE D’ (read as ACUITE D) From ‘ACUITE A4+’ (read as ACUITE A Four Plus) on the Rs. 60.65 Crore bank facilities of Supreme Engineering Limited (Erstwhile Supreme Heatreaters Private Limited). The rating continues to be flagged as “Issuer Not Cooperating” and is based on the best available information.
Ratioanle for Rating Downgrade Rating Action takes in to account the asset categorization reported by lender in credit bureau. |
| About the Company |
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Supreme Engineering Limited was established in 1987 at Rabale in Navi Mumbai(Maharashtra) by Mr. Ratan Praksah Chowdhri, Mr. Sanjay Chowdhri, Mr. Abhinav Chowdhri and Mrs. Lalitha Chowdhri for doing job work of heat treatment services and later commenced manufacturing and processing of wires, bright bars and profiles of stainless and ball bearing steel. In 2007, SEL set-up an additional division ‘Supreme Special Steels’ in order to manufacture speciality steels such as Nickel based Superalloys, Duplex & Superduplex stainless steels and High speed steel; which find application in oil and gas exploration, nuclear energy, defense and petroleum industry.
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| Unsupported Rating |
| None |
| Non-cooperation by the issuer/borrower: |
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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 rating is 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 |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 23 (Actual) | FY 22 (Actual) |
| Operating Income | Rs. Cr. | 18.40 | 72.78 |
| PAT | Rs. Cr. | (105.17) | (9.15) |
| PAT Margin | (%) | (571.58) | (12.57) |
| Total Debt/Tangible Net Worth | Times | (1.38) | 2.50 |
| PBDIT/Interest | Times | (81.49) | (1.21) |
| Status of non-cooperation with previous CRA |
| Not Applicable |
| Any other information |
| None |
| Applicable Criteria |
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• Rating Process and Timeline: https://www.acuite.in/view-rating-criteria-67.htm • 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 |
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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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