RATING RATIONALE
05Jul2021

Som Distilleries & Breweries Ltd.

Brickwork Ratings revises the ratings for the Bank Loan Facilities of Rs. 80.52 Crs. of Som Distilleries & Breweries Ltd. based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(08 Jul 2020)
Present
Fund Based 62.52 62.52 Long Term BWR BB+ /Stable; Issuer Not Cooperating
Reaffirmed
BWR BB /Stable to Negative
Downgrade/ISSUER NOT COOPERATING*
Non Fund Based 18.00 18.00 Short Term BWR A4+; Issuer Not Cooperating
Reaffirmed
BWR A4
Downgrade/ISSUER NOT COOPERATING*
(3.00) (3.00)
Grand Total 80.52 80.52 (Rupees Eighty Crores and Fifty Two lakhs Only)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure
*Issuer did not cooperate; based on best available information.


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

The Rating is due for a review in July, 2021. BWR took up with the issuer to provide required information and monthly NDS over emails and through telephone calls. Despite of the best efforts of Brickwork Ratings to get the minimum required information for a review, reasons for decline in performance, detailed information on its financials and other related clarifications, the entity has not provided the same. In the absence of adequate information from the issuer, BWR is unable to assess the issuer’s financial performance and its ability to service its debt and maintain a valid rating.

Hence, on account of inadequate information and lack of management cooperation, Brickwork Ratings has revised the Long Term Rating to BWR BB (Negative); ISSUER NOT COOPERATING, and the Short Term Rating to BWR A4; ISSUER NOT COOPERATING.

LIMITATIONS OF THE RATING

Information availability risk is a key factor in the assessment of credit risk as generally, non cooperation by the rated entities to provide required information for a review of the assigned rating may also be accompanied by financial stress. Users of the credit ratings should therefore take into account the possible deterioration in the credit quality of the rated entity arising from its non- transparency and withholding of information required for a review of the rating.

ABOUT THE ENTITY

Som Distilleries & Breweries Limited (SDBL) was incorporated in 1993 at New Delhi. SDBL’s shares are listed on BSE and NSE. SDBL is the flagship company of Bhopal, Madhya Pradesh based Som Group. SDBL is primarily engaged in brewing, fermentation, bottling, canning & blending of Beer and Indian Made Foreign Liquor (IMFL). The plant is located at Rojra Chak, Raisen District, Madhya Pradesh.

Som Group is into distillery business, real estate and infrastructure. The group Companies are Som Distilleries Private Limited, Woodpecker Distilleries and Breweries Pvt Ltd, Aryavrat Tollways Pvt Ltd and Aryavrat Projects & Developers Pvt Ltd.

KEY FINANCIAL INDICATORS

Please refer to the following link for the previous detailed rationale that captures the Key Financials Drivers and their Description, Liquidity Position. Rating Sensitivities, Key Financial Indicators.

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2021) 2021 (History) 2020 2019 2018
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating Date Rating
Fund Based LT 62.52
BWR BB/Stable to Negative
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
08Jul2020
BWR BB+/Stable; Issuer Not Cooperating
(Reaffirmed)
13Jun2019
BWR BB+/Stable; Issuer Not Cooperating
(Downgraded)
24Aug2018
BWR BBB+ /Stable
(Upgraded)
Non Fund Based ST 18.00
BWR A4
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
08Jul2020
BWR A4+; Issuer Not Cooperating
(Reaffirmed)
13Jun2019
BWR A4+; Issuer Not Cooperating
(Downgraded)
24Aug2018
BWR A2
(Upgraded)
NFB SubLimit ST (3.00)
BWR A4
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
08Jul2020
BWR A4+; Issuer Not Cooperating
(Reaffirmed)
13Jun2019
BWR A4+; Issuer Not Cooperating
(Downgraded)
24Aug2018
BWR A2
(Upgraded)
Grand Total 80.52 (Rupees Eighty Crores and Fifty Two lakhs Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - NA

BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.

Hyperlink/Reference to applicable Criteria
Analytical Contacts

Parthkumar Shaileshkumar Thakker

Ratings Analyst parthkumar.t@brickworkratings.com

Chintan Dilip Lakhani

Director- Ratings chintan.l@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Som Distilleries & Breweries Ltd.
ANNEXURE-I
Details of Bank Facilities rated by BWR
SL.No. Name of the Bank/Lender Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 IFCI Limited Corporate LoanSanctioned 20.08 _ 20.08
2 IFCI Venture Capital Funds Limited Corporate LoanSanctioned 14.44 _ 14.44
3 Lakshmi Vilas Bank Cash CreditSanctioned 28.00 _ 28.00
Sub-Limit (ILC/FLC) Sanctioned (3.00)
4 Lakshmi Vilas Bank Bank GuaranteeSanctioned _ 18.00 18.00
Total 62.52 18.00 80.52
TOTAL (Rupees Eighty Crores and Fifty Two lakhs Only)
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About Brickwork Ratings

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