Brickwork Ratings revises the ratings for the Bank Loan Facilities of Rs. 56.00 Crs. of Uniply Industries Ltd. based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (24 Mar 2020) |
Present | ||
Fund Based | 21.00 | 21.00 | Long Term |
BWR BB-
/Stable;Issuer Not Cooperating Downgraded |
BWR B
/Negative Downgrade/ISSUER NOT COOPERATING* |
Non Fund Based | 35.00 | 35.00 | Short Term |
BWR A4;Issuer Not Cooperating
Downgraded |
BWR A4
Reaffirmation/ISSUER NOT COOPERATING* |
Grand Total | 56.00 | 56.00 | (Rupees Fifty Six Crores Only) |
The rating is falling due for review on March 2021 and BWR has followed up with the company through several emails dated 08 July 2021, 30June 2021 and 29 June 2021 and calls. Despite of the best efforts of Brickwork Ratings to get the minimum required information for a review, the company has not provided the same. Also, the surveillance mandate is not available. The snapshot of emails send to the company are attached in the annexure. In the absence of adequate information from the Company, BWR is unable to assess the Company’s financial performance and its ability to service its debt and maintain a valid rating. The company has not submitted No default statement.
Hence, on account of inadequate information and lack of management cooperation, Brickwork Ratings has revised the Long Term Rating to BWR B (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 ENTITYUniply Industries Limited was started in Sep,1996, in Chennai and got listed in 1997 on BSE and NSE. The Company has registered its office at Kancheepuram Tamil Nadu, Corporate office at Chennai and Three branches at Mumbai, Bangalore and New Delhi. The company was started by Mr. BL Bengani. However, Mr. BL Bengani had sold entire stake (36.07%) to Mr. Keshav Kantamneni through share purchase agreement in February 2015 and all shares were acquired by Mr. Kantamneni by June 30, 2015. From June 15, Mr. Kantamneni, managing the whole operation as Chairperson & Managing Director of the company. The company initially started with a trading agent and later started trading plywood and its allied products under its own brand name. Currently, the company manufactures plywood, veneer and related products. In 2000, it established its own manufacturing facility in Kancheepuram District near Chennai. At present the company has a manufacturing capacity of 50,000 cubic meters (cbm) per annum with utilization of 69.33%.
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.
Nil
ANY OTHER INFORMATIONNA
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 | 21.00 |
BWR B/Negative
(Downgrade/ISSUER NOT COOPERATING*) |
NA |
NA
|
24Mar2020 |
BWR BB-/Stable;Issuer Not Cooperating
(Downgraded ) |
NA |
NA
|
NA |
NA
|
Non Fund Based | ST | 35.00 |
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*) |
NA |
NA
|
24Mar2020 |
BWR A4;Issuer Not Cooperating
(Downgraded) |
NA |
NA
|
NA |
NA
|
Grand Total | 56.00 | (Rupees Fifty Six Crores Only) |
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 CriteriaAnalytical Contacts | |
---|---|
Roma Gupta Ratings Analyst roma.g@brickworkratings.com |
Chintan Dilip Lakhani Director- Ratings chintan.l@brickworkratings.com |
1-860-425-2742 | media@brickworkratings.com |
SL.No. | Name of the Bank/Lender | Type Of Facilities | Long Term(Rs.Crs.) | Short Term(Rs.Crs.) | Total(Rs.Crs.) |
---|---|---|---|---|---|
1 | State Bank Of India (SBI) | Cash CreditSanctioned | 21.00 | _ | 21.00 |
2 | State Bank Of India (SBI) | Letter of CreditSanctioned | _ | 35.00 | 35.00 |
Total | 21.00 | 35.00 | 56.00 | ||
TOTAL (Rupees Fifty Six Crores Only) |
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About Brickwork RatingsBrickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. BWR has rated over 11,400 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partner. BWR has its corporate office in Bengaluru and a country-wide presence with its offices in Ahmedabad, Chandigarh, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi along with representatives in 150+ locations.
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