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CRISIL has assigned its ‘P4+’ rating to Asuti Trading Pvt Ltd’s (Asuti’s) short-term bank facility. The rating reflects Asuti’s inadequate internal risk management systems, significant customer concentration in revenue profile, and limited financial flexibility because of large working capital requirements. These rating weaknesses are partially offset by low inventory risk in Asuti’s trading model.
About the Company
Asuti, a Mumbai-based company, was acquired by Mr. Binod Agarwal and Mr. Vimal Agarwal in 2007-08 (refers to financial year, April 1 to March 31). Since then it has been trading in steel and iron products such as hot-rolled (HR) coils, cold-rolled (CR) coils, sheets, sponge iron fines/lumps and pig iron. The company receives business and financial support from the Shrilekha group of companies.
Asuti reported a profit after tax (PAT) of Rs.19.4 million on net sales of Rs.578.2 million for 2008-09, against a PAT of Rs.15.4 million on net sales of Rs.438.0 million for 2007-08.
About the Shrilekha Group
The Shrilekha group was founded in 1981 by Mr. Vinod Jatia and his brothers. The group primarily trades in iron and steel products, such as HR and CR coils, sheets, plates, sponge iron lumps, and fines. The Shrilekha group includes Makalu Trading Ltd, Ogardhani Exports Pvt Ltd, Shrilekha Trading Pvt Ltd, Dilshad Trading Company Pvt Ltd, Superways Enterprises Pvt Ltd, and Subhkaran & Sons.
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Mitu Samar
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Tanuja Abhinandan
Market Development & Communications
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Gurpreet S Chhatwal
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Manish Kumar Gupta
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