RATING RATIONALE
24Mar2022

Anik Industries Limited

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.

Particulars
Facilities** 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)
#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 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 ENTITY

Anik 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. 

 

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.

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

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)
COMPLEXITY LEVELS OF THE INSTRUMENTS - Simple

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

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
Anik Industries Limited
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 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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