Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 230.50 Crs. of Omkar Speciality Chemicals Ltd. based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (04 Dec 2020) |
Present | ||
Fund Based | 170.50 | 170.50 | Long Term |
BWR D
Reaffirmation/ISSUER NOT COOPERATING* |
BWR D
Reaffirmation/ISSUER NOT COOPERATING* |
Non Fund Based | 60.00 | 60.00 | Short Term |
BWR D
Reaffirmation/ISSUER NOT COOPERATING* |
BWR D
Reaffirmation/ISSUER NOT COOPERATING* |
Grand Total | 230.50 | 230.50 | (Rupees Two Hundred Thirty Crores and Fifty lakhs Only) |
The Rating was due for a review in Dec, 2021. BWR took up with the issuer to provide required information over emails and through telephone calls. Despite of the best efforts of Brickwork Ratings to get the minimum required information for a review, the entity has not provided the same. In the absence of adequate information from the issuer, BWR is unable to assess the issuer’s financial performance and its ability to service its debt and maintain a valid rating.
Hence, on account of inadequate information and lack of management cooperation, Brickwork Ratings has reaffirmed the Long Term Rating & Short Term Rating to BWR D; 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 ENTITYOmkar Speciality Chemicals Limited (OSCL) was originally incorporated as a Proprietorship Firm under the name M/s. Omkar Chemicals in 1983, with Mr. Pravin S. Herlekar as the Proprietor. On February 24, 2005, it changed to a Private Ltd. Company known as Omkar Specialty Chemicals Private Limited. With its continuous growth the company established itself as a Public Limited Company on March 18, 2010 with the name “Omkar Specialty Chemicals Limited”, under the Chairmanship of Mr. Pravin S. Herlekar as the Chairman & Managing Director and with Mr. Omkar P. Herlekar as its Whole Time Director. OSCL is primarily engaged in the production of Specialty Chemicals and Pharma Intermediates. OSCL manufactures a range of Organic, Inorganic and Organo Inorganic Intermediates. The Inorganic Intermediates include Molybdenum derivatives, Selenium derivatives, Iodine derivatives, Cobalt derivatives, Bismuth & Tungsten derivatives and organic intermediates include Tartaric acid derivatives and other intermediates. It was listed on BSE & NSE in the year 2011.
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.
CRISIL vide press release dated November 30, 2021 has migrated the rating under ISSUER NOT COOPERATING category
ANY OTHER INFORMATIONNil
RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)Facilities | Current Rating (2022) | 2022 (History) | 2021 | 2020 | 2019 | ||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating | Date | Rating |
Fund Based | LT | 170.50 |
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*) |
NA |
NA
|
NA |
NA
|
04Dec2020 |
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*) |
09Jul2019 |
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*) |
Non Fund Based | ST | 60.00 |
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*) |
NA |
NA
|
NA |
NA
|
04Dec2020 |
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*) |
09Jul2019 |
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*) |
Grand Total | 230.50 | (Rupees Two Hundred Thirty 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 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 | Bank of Baroda | Term LoanSanctioned | 42.50 | _ | 42.50 |
2 | Bank of Baroda | Cash CreditSanctioned | 46.00 | _ | 46.00 |
3 | Bank of Baroda | External Commercial BorrowingsSanctioned | 32.00 | _ | 32.00 |
4 | Bank of Baroda | Letter of CreditSanctioned | _ | 60.00 | 60.00 |
5 | CitiBank | Cash CreditSanctioned | 25.00 | _ | 25.00 |
6 | Un tied portion | Vendor FinanceProposed | 25.00 | _ | 25.00 |
Total | 170.50 | 60.00 | 230.50 | ||
TOTAL (Rupees Two Hundred Thirty 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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