Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 188.00 Crs. of Anik Industries Limited (AIL or "The Company") based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (22 Jul 2020) |
Present | ||
Fund Based | 33.00 | 33.00 | Long Term |
BWR D
Downgrade/ISSUER NOT COOPERATING* |
BWR D
Reaffirmation/ISSUER NOT COOPERATING* |
Non Fund Based | 155.00 | 155.00 | Short Term |
BWR D
Downgrade/ISSUER NOT COOPERATING* |
BWR D
Reaffirmation/ISSUER NOT COOPERATING* |
Grand Total | 188.00 | 188.00 | (Rupees One Hundred Eighty Eight Crores Only) |
The rating was due for review in July 2021. BWR took up with the issuer to provide the required information over emails and through telephonic communication.
Despite the best efforts of BWR to get at least 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.
LIMITATIONS OF THE RATING
Information availability risk is a key factor in the assessment of credit risk as generally, noncooperation by the ratedentities to provide required information for a review of the assigned rating may also be accompanied by financial stress.
ABOUT THE ENTITYAnik Industries Limited (AIL or “The Company”) was incorporated in 1976, is based out of Madhya Pradesh. The registered office of the Company is located in Mumbai with its corporate office in Indore. The Company was initially incorporated as Madhya Pradesh Glychem Industries Limited and subsequently changed to Anik Industries Limited in September 2006. Initially, the company was engaged in the extraction of oils from oilseeds by the solvent extraction process and later set up a dairy business. However, in September 2016, the company divested its dairy unit to M/s. B. S. A. International, Belgium on a slump sale basis for Rs. 451.50 Crs, with the proceeds being used towards the liquidation of outstanding term loans of the Company.
AIL is currently engaged in the trading of commodities, real estate development, and generation of wind power. At present, trading activity remains the major source of revenue for the Company. The products traded by the company include coal as well as agricultural commodities such as pulses, wheat, edible oils etc. The company has been engaged in this line of business for more than 20 years. The Company imports coal from Indonesia, South Africa, and other international markets.
The management of the company includes Mr. Suresh Chandra Shahra is the current Chairman and Managing Director of AIL. Mr. Manish Chandra Shahra, Mr. Ashok Kumar Trivedi, Mr. Vijay Rathi, Mr. Kamal Kumar Gupta, Mr. Hari Narayan Bhatnagar, and Mrs. Amrita Koolwal are the other directors.
The company has a subsidiary under the name of Revera Milk & Foods Private Limited (RMFPL) where AIL holds 86.61% holdings in RMFPL which does not have any business and only reports lease income from its leased out property. Further, AIL has a 21% share in a partnership firm Mahakosh Property Developers engaged in providing construction services.
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.
CARE Ratings vide its press release dated 21st July 2021 has continued to classify the rating as Issuer Not Cooperating; based on best available information and reaffirmed the rating to CARE D as the Company has not provided the requisite information for surveillance of rating.
ANY OTHER INFORMATION
Not Applicable
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 | 33.00 |
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*) |
NA |
NA
|
NA |
NA
|
22Jul2020 |
BWR D
(Downgrade/ISSUER NOT COOPERATING*) |
NA |
NA
|
Non Fund Based | ST | 155.00 |
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*) |
NA |
NA
|
NA |
NA
|
22Jul2020 |
BWR D
(Downgrade/ISSUER NOT COOPERATING*) |
NA |
NA
|
Grand Total | 188.00 | (Rupees One Hundred Eighty Eight Crores 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 | |
---|---|
Shashikala Umanath Hegde Senior Ratings Analyst Board : +91 22 2831 1426, +91 22 2831 1439 shashikala.h@brickworkratings.com |
Vidya Shankar Principal Director - Ratings Board : +91 80 4040 9940 vidyashankar@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 | Cash CreditSanctioned | 5.00 | _ | 5.00 |
2 | Bank of Baroda | Bank GuaranteeSanctioned | _ | 1.50 | 1.50 |
3 | Bank of Baroda | Letter of CreditSanctioned | _ | 33.50 | 33.50 |
4 | Central Bank of India | Letter of CreditSanctioned | _ | 35.00 | 35.00 |
5 | Central Bank of India | Cash CreditSanctioned | 5.00 | _ | 5.00 |
6 | HDFC Bank | Term LoanSanctioned | 8.00 | _ | 8.00 |
7 | HDFC Bank | Cash CreditSanctioned | 5.00 | _ | 5.00 |
8 | HDFC Bank | Letter of CreditSanctioned | _ | 15.00 | 15.00 |
9 | Punjab National Bank | Letter of CreditSanctioned | _ | 55.00 | 55.00 |
10 | Punjab National Bank | Cash CreditSanctioned | 5.00 | _ | 5.00 |
11 | State Bank Of India (SBI) | Cash CreditSanctioned | 5.00 | _ | 5.00 |
12 | State Bank Of India (SBI) | Bank GuaranteeSanctioned | _ | 0.50 | 0.50 |
13 | State Bank Of India (SBI) | Letter of CreditSanctioned | _ | 14.50 | 14.50 |
Total | 33.00 | 155.00 | 188.00 | ||
TOTAL (Rupees One Hundred Eighty Eight Crores Only) |
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