December 06, 2013

Mumbai

Acclaim Industries Limited

Ratings Suspended

Total Bank Loan Facilities Rated	Rs.600 Million
Long-Term Rating	Suspended
Short-Term Rating	Suspended

(Refer to Annexure 1 for details on facilities)

CRISIL has suspended its ratings on the bank facilities of Acclaim Industries Limited (AIL). The suspension of ratings is on account of non-cooperation by AIL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, AIL is yet to provide adequate information to enable CRISIL to assess AIL’s ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria ‘Information Availability Risk in Credit Ratings’

About the Company

AIL, incorporated in August 1992, is a public limited company listed on Bombay Stock Exchange, with majority shares (about 55 per cent) held by the Mehta family. The company trades in steel products, chiefly mild steel (MS) angles, MS channels, MS plates, and thermo mechanically treated bars. It was initially incorporated as Elpro Packaging Ltd; its name was later changed to its current one with change in the shareholding. Mr. Abhishek Mehta, along with his father Mr. Rajesh Mehta, manages the overall operations of the company. AIL plans to venture into the business of manufacturing aluminium ingots and billets. The plans are still at a very nascent stage.

Annexure 1 - Details of various bank facilities

Current facilities			Previous facilities
Facility	Amount (Rs. Million)	Rating	Facility	Amount (Rs. Million)	Rating
Cash Credit	60	Suspended	Cash Credit	60	CRISIL B/Stable
Letter of Credit	30	Suspended	Letter of Credit	30	CRISIL A4
Proposed Long-Term Bank Loan Facility	460	Suspended	Proposed Long-Term Bank Loan Facility	460	CRISIL B/Stable
Standby Letter of Credit	50	Suspended	Standby Letter of Credit	50	CRISIL A4
Total	600	--	Total	600	--

Media Contacts	Analytical Contacts	Customer Service Helpdesk
Tanuja Abhinandan Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1818 Mobile: +91- 98192 48980 Email:tanuja.abhinandan@crisil.com Jyoti Parmar Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1835 E-mail: jyoti.parmar@crisil.com	Mohit Makhija Director - CRISIL Ratings Tel: +91-124-672 2000 Email: mohit.makhija@crisil.com	Timings: 10.00 am to 7.00 pm Toll free number: 1800 267 1301 Email:CRISILratingdesk@crisil.com

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About CRISIL Ratings
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Last updated: May, 2013

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December 06, 2013	http://www.crisil.com