Brickwork Ratings downgrades the long term ratings to BWR BB(stable) and reaffirms the short term ratings to BWR A4+ for the Bank Loan Facilities of Rs. 12.50 Crs. of Arihant Retails Pvt. Ltd. based on best available information, & continued it under issuer did not cooperate.
Particulars| Facilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
|---|---|---|---|---|---|
| Previous | Present | Previous (06 Nov 2020) |
Present | ||
| Fund Based | 9.50 | 9.50 | Long Term |
BWR BB+ /Stable
Downgrade/ISSUER NOT COOPERATING* |
BWR BB
/Stable Downgrade/ISSUER NOT COOPERATING* |
| 3.00 | 3.00 | Short Term |
BWR A4+
Downgrade/ISSUER NOT COOPERATING* |
BWR A4 +
Reaffirmation/ISSUER NOT COOPERATING* |
|
| (8.00) | (8.00) | ||||
| (2.00) | (2.00) | ||||
| Grand Total | 12.50 | 12.50 | (Rupees Twelve Crores and Fifty lakhs Only) | ||
BWR downgrades the long-term rating to BWR BB(stable) and reaffirms the short term ratings to BWR A4+ ; Issuer Not Cooperating category for the Bank Loan Facilities of Arihant Retails Pvt Ltd amounting to Rs. 12.50 Crs, based on the best available information as the company has not provided any information/papers.
Brickwork Ratings has initially rated Arihant Retails Pvt Ltd Bank Loan Facilities amounting to Rs. 10.50 Crs in Jul 2015. The rating was assigned as BWR BBB-(stable)/ BWR A3. In Dec 2016 and Jun 2020 the rating was moved to Not Reviewed Advisory. In Nov 2020 the rating was downgraded to BWR BB+(stable)/BWR A4+ on account of Issuer Non Cooperation. BWR took up the company to provide the required information for conducting review of the ratings through emails dated 17-11-2021, 18-11-2021, 19-11-2021 but did not receive any response from the client. We contacted the client through call dated 17-11-2021 he said she will send the documents but after regular follow up the documents were not received.
Despite the best efforts of BWR to get at least the minimum required information for review of rating, the company has not provided the same. BWR reached out to the banker dated 19-11-2021 the email was not delivered. Also, call dated 17-11-2021 the contact number was switched off. Due to the continued lack of management cooperation and absence of adequate information from the company, BWR is unable to assess the company's ability to service its debt and maintain a valid rating. Hence, based on the best available information, BWR has downgraded the long-term rating to BWR BB (stable) and reaffirmed the short term rating to BWR A4+; & continued it under Issuer did not cooperate category
LIMITATIONS OF THE RATING
Information availability risk is a key factor in the assessment of credit risk 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 ENTITYArihant Retails Pvt. Ltd. was incorporated in 1996 by Mr. Hastimal Surana at Chennai which was initially established by his father Late Shri Chainmal Surana in 1965. In 2003, Mr. Vishal Surana had subsequently taken over the business from his father Mr. Hastimal Surana after completing his Post graduation degree. The company is engaged in trading/retailing of garments, textiles, readymade, furnishing and upholstery. It has 9 showrooms in total in and around Chennai under the brands Arihant, Hotmale and MAA.
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.
| 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 | 9.50 |
BWR BB/Stable
(Downgrade/ISSUER NOT COOPERATING*) |
NA |
NA
|
06Nov2020 |
BWR BB+ Stable
(Downgrade/ISSUER NOT COOPERATING*) |
19Jun2019 |
BWR BBB- Stable
(Reaffirmation) |
31Mar2018 |
BWR BBB- Stable
(Reaffirmation) |
| FB SubLimit | LT | NA |
NA
|
NA |
NA
|
NA |
NA
|
19Jun2019 |
BWR A3
(Reaffirmation) |
NA |
NA
|
| Fund Based | ST | 3.00 |
BWR A4+
(Reaffirmation/ISSUER NOT COOPERATING*) |
NA |
NA
|
06Nov2020 |
BWR A4+
(Downgrade/ISSUER NOT COOPERATING*) |
19Jun2019 |
BWR A3
(Reaffirmation) |
31Mar2018 |
BWR A3
(Reaffirmation) |
| FB SubLimit | ST | (8.00) |
BWR A4+
(Reaffirmation/ISSUER NOT COOPERATING*) |
NA |
NA
|
06Nov2020 |
BWR A4+
(Downgrade/ISSUER NOT COOPERATING*) |
19Jun2019 |
BWR A3
(Reaffirmation) |
31Mar2018 |
BWR A3
(Reaffirmation) |
| FB SubLimit | ST | (2.00) |
BWR A4+
(Reaffirmation/ISSUER NOT COOPERATING*) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
NA |
NA
|
| Non Fund Based | ST | NA |
NA
|
NA |
NA
|
NA |
NA
|
19Jun2019 |
BWR
() |
NA |
NA
|
| Grand Total | 12.50 | (Rupees Twelve Crores and Fifty lakhs 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 Criteria| Analytical Contacts | |
|---|---|
|
Smit Mahesh Nagariya Ratings Analyst smitmahesh.n@brickworkratings.com |
Sushil Kumar Chitkara Director - Ratings Board : +91 22 2831 1426, +91 22 2831 1439 sushilkumar.c@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 | Karur Vysya Bank | Cash Credit | 9.50 | _ | 9.50 |
| Sub-Limit (WCDL (Sublimit of OCC) ) | (8.00) | ||||
| 2 | Karur Vysya Bank | Secured OD | _ | 3.00 | 3.00 |
| Sub-Limit (WCDL (Sublimit of SOD) ) | (2.00) | ||||
| Total | 9.50 | 3.00 | 12.50 | ||
| TOTAL (Rupees Twelve Crores and Fifty lakhs 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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