RATING RATIONALE
11Aug2021

Polycon International Ltd

Brickwork Ratings revises the ratings for the Bank Loan Facilities of Rs. 11.03 Crs. of Polycon International Ltd based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(11 May 2020)
Present
Fund Based 10.78 10.78 Long Term BWR B+ /Stable
Downgrade/ISSUER NOT COOPERATING*
BWR B /Stable
Downgrade/ISSUER NOT COOPERATING*
(5.00) (5.00)
Non Fund Based 0.25 0.25 Short Term A4
Reaffirmation/ISSUER NOT COOPERATING*
BWR A4
Reaffirmation/ISSUER NOT COOPERATING*
Grand Total 11.03 11.03 (Rupees Eleven Crores and Three 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 of the Bank Loan Facilities of the company for the Long Term has been Downgraded to BWR B(Stable) and Short Term has been Reaffirmed to A4 under the ‘Issuer Not Cooperating’ category.

BWR assigned the initial rating of BWR BB (Stable)/A4+ on 28th January 2014. Later, the ratings for the bank facility were Reaffirmed as BWR BB (Stable)/A4+ on 11th May 2015, 18th May 2016, and 14th Jun 2017. Later, The rating for the bank facilities was downgraded to BWR BB-/A4 on 20th Nov 2018. The rating was due for review in Nov 2019. Subsequently, the rating of the Long term facility was downgraded as BWR B+ and Short term facility was Reaffirmed as A4 under Issuer Non Cooperation on 12 May 2020. BWR took up with the issuer to provide the required information over emails and through telephone calls. Despite the best efforts of BWR to get at least the minimum required information for a review, the entity has not provided the same. BWR could also not obtain feedback from the banker. 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, noncooperation 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

Polycon International Ltd., incorporated in 1991, is a public limited company. The Company, based out of Jaipur, is promoted and managed by Baid family. It is engaged in the manufacturing and trading of PET products like PET Bottles, PET jars, PET Preforms, Caps & Lids; Water Storage Tanks and PVC Profiles & Sections etc.

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 10.78
BWR B/Stable
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
11May2020
BWR B+/Stable
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
20Nov2018
BWR BB-/ Stable
(Downgrade)
FB SubLimit LT (5.00)
BWR B/Stable
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
11May2020
BWR B+/Stable
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
20Nov2018
BWR BB-/ Stable
(Downgrade)
Non Fund Based ST 0.25
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
11May2020
A4
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
20Nov2018
A4
(Downgrade)
Grand Total 11.03 (Rupees Eleven Crores and Three 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.

Analytical Contacts

Vishesh Phogaat

Ratings Analyst vishesh.p@brickworkratings.com

V.K.Kukreja

Associate Director - Ratings Board : +91 11 2341 2232 kukreja.vk@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Polycon International 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) Term LoanSanctioned 1.78 _ 1.78
2 State Bank Of India (SBI) Cash CreditSanctioned 9.00 _ 9.00
Sub-Limit (WCFC) Sanctioned (5.00)
3 State Bank Of India (SBI) Bank GuaranteeSanctioned _ 0.25 0.25
Total 10.78 0.25 11.03
TOTAL (Rupees Eleven Crores and Three lakhs Only)
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About Brickwork Ratings

Brickwork 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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Brickwork Ratings India Pvt. Ltd. (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by the Reserve Bank of India [RBI], offers credit ratings of Bank Loan facilities, 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. [ hereafter referred to as "Instruments"]. BWR also rates NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations.

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