RATING RATIONALE
19Apr2022

Sudal Industries Limited

Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 39.68 Crs. of Sudal Industries Limited based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(16 Apr 2021)
Present
Fund Based 14.68 14.68 Long Term BWR D
Reaffirmation/ISSUER NOT COOPERATING*
BWR D
Reaffirmation/ISSUER NOT COOPERATING*
Non Fund Based 25.00 25.00 Short Term BWR D
Reaffirmation/ISSUER NOT COOPERATING*
BWR D
Reaffirmation/ISSUER NOT COOPERATING*
Grand Total 39.68 39.68 (Rupees Thirty Nine Crores and Sixty Eight lakhs 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

Brickwork Ratings reaffirms the long-term and the short-term ratings at BWR D for the Bank Loan Facilities of Rs. 39.68 Crores based on the available information as the client did not submit any information to assess the financial risk profile/performance of the company. Brickwork Ratings has therefore continued the rating under the “Issuer Not Cooperating” category.

The entity is listed on BSE and from the information available in the public domain the company has incurred a loss amounting to Rs.13.83 Cr in FY21 as compared to a loss of Rs. 28.58 Crs in FY20 which deteriorated the TNW of the entity to negative Rs. 62.85 Cr in FY21 as compared to negative Rs. 49.02 Cr in FY20.

The rating was due for review in April 2022. BWR took up with the issuer to provide the required information over emails and telephone calls dated 11.04.2022, 12.04.2022 & 13.04.2022. The client did not fulfill the review of rating formalities to date or respond to any of the emails sent by BWR. Whenever we called the client, they did not respond. Further, BWR also took up with the banker to provide the required information over emails and telephone calls dated 11.04.2022, 12.04.2022 & 13.04.2022 but did not receive any response.

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/banker, BWR is unable to assess the issuer’s/company’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 and the short-term rating at BWR D; Issuer Not Cooperating of the Bank Loan Facilities of the company.

LIMITATIONS OF THE RATING

Information availability risk is a key factor in the evaluation of credit risk as generally, noncooperation by the rated entities to provide the 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 ENTITY

Sudal Industries Ltd. was incorporated in 1979 as Sudarshan Aluminium Industries Ltd. and subsequently changed its name as Sudal Industries Ltd. The company is in the business of manufacturing Aluminium Extrusions, Aluminium Alloys and Downstream products.

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  (2022) 2022 (History) 2021 2020 2019
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating Date Rating
Fund Based LT 14.68
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
16Apr2021
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
20Jan2020
BWR D
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
Non Fund Based ST 25.00
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
16Apr2021
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
20Jan2020
BWR D
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
Grand Total 39.68 (Rupees Thirty Nine Crores and Sixty Eight lakhs 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.

Analytical Contacts

Akash Puran Singh Patwal

Ratings Analyst akashpuran.p@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
Sudal 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 Canara Bank Term LoanSanctioned 4.68 _ 4.68
2 Canara Bank ILC/FLC/BGSanctioned _ 25.00 25.00
3 Canara Bank Secured ODSanctioned 10.00 _ 10.00
Total 14.68 25.00 39.68
TOTAL (Rupees Thirty Nine Crores and Sixty Eight lakhs Only)
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