RATING RATIONALE
11Aug2021

Saboo-Sodium Chloro Ltd

Brickwork Ratings downgrades the ratings of long term loan and reaffirms the ratings of short term loan for the Bank Loan Facilities of Rs. 13.45 Crs. of Saboo-Sodium Chloro Ltd based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(30 Mar 2020)
Present
Fund Based 12.95 12.95 Long Term BWR BB- /Stable
Downgrade/ISSUER NOT COOPERATING*
BWR B + /Stable
Downgrade/ISSUER NOT COOPERATING*
Non Fund Based 0.50 0.50 Short Term BWR A4
Downgrade/ISSUER NOT COOPERATING*
BWR A4
Reaffirmation/ISSUER NOT COOPERATING*
Grand Total 13.45 13.45 (Rupees Thirteen Crores and Forty Five 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

Downgraded for long term rating at BWR B+(Stable) and reaffirm the short-term rating at BWR A4; Issuer not cooperating based on best information as the issuer did not cooperate.

BWR had initially assigned rating of BWR BB(Stable)/ BWR A4+ for the bank loan facilities on 29 Dec 2015. The rating was reaffirmed on 08 Feb 2017 and again reaffirmed in the next year on 02 May 2018. The rating became due for the review on 02 May 2019. Subsequently on 30 March 2020, rating was downgraded at BWR BB-(Stable)/A4 under issuer not cooperating category. BWR took up with the issuer/bank to provide required information over emails. Despite the best efforts of BWR to get at least the minimum required information for a review, the entity has not provided the same and no feedback was received from the bank. In the absence of adequate information from the issuer/company, BWR is unable to assess the issuer’s/company’s financial performance and its ability to service its debt and maintain a valid rating.

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.

ABOUT THE ENTITY

Jaipur (Rajasthan) based SSCL was incorporated in November 1993 and is a part of the Saboo Group (SG). The group is promoted by Mr. Girdhar Saboo and his family members and has interests in refining of salt, trading of spices, power generation and hospitality. SSCL is listed on the Bombay Stock Exchange since December 2000. SSCL is presently engaged in the refining and trading of salt which is marketed under the brand name “Surya Salt”.

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 12.95
BWR B+/Stable
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
30Mar2020
BWR BB-/Stable
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
02May2018
BWR BB/Stable
(Reaffirmation)
Non Fund Based ST 0.50
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
30Mar2020
BWR A4
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
02May2018
BWR A4+
(Reaffirmation)
Grand Total 13.45 (Rupees Thirteen Crores and Forty Five 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

Akash Chaubey

Ratings Analyst akash.c@brickworkratings.com

V.K.Kukreja

Associate Director - Ratings Board : +91 11 2341 2232 kukreja.vk@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Saboo-Sodium Chloro 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 State Bank Of India (SBI) Working Capital Demand LoanSanctioned 10.00 _ 10.00
2 State Bank Of India (SBI) Term LoanOut-standing 2.95 _ 2.95
3 State Bank Of India (SBI) Bank GuaranteeSanctioned _ 0.50 0.50
Total 12.95 0.50 13.45
TOTAL (Rupees Thirteen Crores and Forty Five lakhs Only)
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