RATING RATIONALE
22Dec2021

Ardeshir B. Cursetjee & Sons Ltd

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. 32.00 Crs. of Ardeshir B. Cursetjee & Sons Ltd based on best available information, & continued it under issuer did not cooperate category.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(28 Oct 2020)
Present
Fund Based 27.00 27.00 Long Term BWR BB /Stable
Downgrade/ISSUER NOT COOPERATING*
BWR BB - /Stable
Downgrade/ISSUER NOT COOPERATING*
Non Fund Based 5.00 5.00 Short Term BWR A4
Downgrade/ISSUER NOT COOPERATING*
BWR A4
Reaffirmation/ISSUER NOT COOPERATING*
(5.00) (5.00)
Grand Total 32.00 32.00 (Rupees Thirty Two Crores 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

BWR downgrades the long-term rating to BWR BB- (Stable) and reaffirms short-term rating to BWR A4; Issuer Not Cooperating category for the Bank Loan Facilities of Ardeshir B Cursetjee & Sons Ltd amounting to Rs. 32 Crs, based on the best available information as the company has not provided any information/papers.

Brickwork Ratings has initially rated Ardeshir B Cursetjee & Sons Ltd's Bank Loan Facilities amounting to Rs. 12 Crs in June 2017. The rating was assigned as BWR BB+ (stable)//A4+. In Sept 2018 the rating was moved into Not Reviewed Advisory. In Oct 2020 the rating was downgraded to BWR BB (stable)/ 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 20-09-2021, 11-10-2021, 26-10-2021, 28-10-2021, 15-11-2021, 17-11-2021, 18-11-2021, 19-11-2021, 24-11-2021, 30-11-2021, 10-12-2021 but we did not receive response from the client. We contacted the client through call dated 20-09-2021, 17-11-2021 and the client said hee will submit documents soon and on 25-11-2021 the call remains unanswered.

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 11-10-2021, 26-10-2021, 18-11-2021, 19-11-2021, 24-11-2021, 30-11-2021 but did not receive any response. Also, call dated 15-11-2021 and the banker said that he has been transferred and also provided me with Email Id of the one who is in charge to that case but did not receive any response despite of several followup. 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 short-term rating to BWR A4; ISSUER NOT COOPERATING* 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 ENTITY

Ardeshir B. Cursetjee & Sons Ltd., the Flagship Company of ABC  Dubash Group. The company was incorporated on 30th April 1948 The Company consists of divisions engaged in shipping and transport services in  various ports of India. The company has diversified its business to dredging, specialized project  transport, material handling of coal and iron ore, inland water transport,  transportation of over-dimensional cargo (ODC), water transport of hazardous  gas, storage of liquid ammonia,, stevedoring, tug and barge operations,  construction of ro-ro jetties and various other activities and work with very large  Government and Private companies like ONGC, MDL, RCF, IFFCO, NTPC,  TATAS, BIRLAS etc. and international companies such as ENRON, BECHTEL,  CHEVRON, TEXACO, ABB, SIEMENS 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 27.00
BWR BB-/Stable
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
28Oct2020
BWR BB Stable
(Downgrade/ISSUER NOT COOPERATING*)
10Apr2019
BWR BB+Stable
(Reaffirmation)
NA
NA
Non Fund Based ST 5.00
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
28Oct2020
BWR A4
(Downgrade/ISSUER NOT COOPERATING*)
10Apr2019
BWR A4+
(Reaffirmation)
NA
NA
NFB SubLimit ST (5.00)
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
NA
NA
NA
NA
NA
NA
Grand Total 32.00 (Rupees Thirty Two Crores 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

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
Ardeshir B. Cursetjee & Sons 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 Union Bank of India Inland Letter of Guarantee _ 5.00 5.00
Sub-Limit (Inland/Import Letter of Credit) (5.00)
2 Union Bank of India Secured OD 7.00 _ 7.00
3 Union Bank of India Working capital SOD 20.00 _ 20.00
Total 27.00 5.00 32.00
TOTAL (Rupees Thirty Two Crores Only)
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