Credit rating agency, ICRA has assigned ‘B+’ rating to Paramount Steels’ Term Loan worth Rs 2.50 crore and also assigned ‘B+’ rating to Cash Credit Limit of the company worth Rs 11.80 crore.
The rating factors in the company’s moderate scale of operations, which coupled with its weak profitability and high dependence on external borrowings for working capital funding, has resulted in weak debt protection indicators and high gearing of 3.64 times as on March 31, 2014.
Paramount Steels manufactures steel ingots and rolls them into hex bars and rounds. The manufacturing unit of the company located in Ludhiana, Punjab has a rolling unit and induction furnace with annual capacities of 19,000 metric tonnes each.
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