RATING RATIONALE
01Aug2022

Som Distilleries & Breweries Ltd.

Brickwork Ratings revises the ratings for the Bank Loan Facilities of Rs. 80.52 Crs. of Som Distilleries & Breweries Ltd. based on the best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(05 Jul 2021)
Present
Fund Based 62.52 62.52 Long Term BWR BB /Negative
Downgrade/ISSUER NOT COOPERATING*
BWR BB - /Stable
Downgrade/ISSUER NOT COOPERATING*
Non Fund Based 18.00 18.00 Short Term BWR A4
Downgrade/ISSUER NOT COOPERATING*
BWR A4
Reaffirmation/ISSUER NOT COOPERATING*
(3.00) (3.00)
Grand Total 80.52 80.52 (Rupees Eighty Crores and Fifty Two 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

The Rating was due for a review in July 2022. BWR took up with the issuer to provide required information and monthly NDS over emails dated July 21, 2022, and July 25, 2022, among others, and through telephone calls. Despite the best efforts of Brickwork Ratings to get the minimum required information for a review, detailed information on its financials, and other related clarifications, 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 revised the Long Term Rating to BWR BB-/ Stable; ISSUER NOT COOPERATING, and reaffirmed the Short Term Rating to BWR A4; 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 the required information for a review of the assigned rating may also be accompanied by financial stress. Users of the credit rating should, therefore, take into account the possible deterioration in the credit quality of the rated entity arising from its non-transparency and withholding of the information required for a review of the rating.

ABOUT THE ENTITY

Som Distilleries & Breweries Limited (SDBL) was incorporated in 1993 at New Delhi. SDBL’s shares are listed on BSE and NSE. SDBL is the flagship company of Bhopal, Madhya Pradesh based Som Group. SDBL is primarily engaged in brewing, fermentation, bottling, canning & blending of Beer and Indian Made Foreign Liquor (IMFL). The plant is located at Rojra Chak, Raisen District, Madhya Pradesh.

Som Group is into distillery business, real estate and infrastructure. The group Companies are Som Distilleries Private Limited, Woodpecker Distilleries and Breweries Pvt Ltd, Aryavrat Tollways Pvt Ltd and Aryavrat Projects & Developers Pvt Ltd.

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. View Previous Document

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 62.52
BWR BB-/Stable
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
05Jul2021
BWR BB Negative
(Downgrade/ISSUER NOT COOPERATING*)
08Jul2020
BWR BB+ Stable
(Reaffirmation/ISSUER NOT COOPERATING*)
13Jun2019
BWR BB+ Stable
(Downgrade/ISSUER NOT COOPERATING*)
Non Fund Based ST 18.00
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
05Jul2021
BWR A4
(Downgrade/ISSUER NOT COOPERATING*)
08Jul2020
BWR A4+
(Reaffirmation/ISSUER NOT COOPERATING*)
13Jun2019
BWR A4+
(Downgrade/ISSUER NOT COOPERATING*)
NFB SubLimit ST (3.00)
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
05Jul2021
BWR A4
(Downgrade/ISSUER NOT COOPERATING*)
08Jul2020
BWR A4+
(Reaffirmation/ISSUER NOT COOPERATING*)
13Jun2019
BWR A4+
(Downgrade/ISSUER NOT COOPERATING*)
Grand Total 80.52 (Rupees Eighty Crores and Fifty Two lakhs 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

Arbez Noshir Karbhari

Ratings Analyst arbez.k@brickworkratings.com

Chintan Dilip Lakhani

Director- Ratings chintan.l@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Som Distilleries & Breweries 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 IFCI Limited Corporate LoanSanctioned 20.08 _ 20.08
2 IFCI Venture Capital Funds Limited Corporate LoanSanctioned 14.44 _ 14.44
3 Lakshmi Vilas Bank Cash CreditSanctioned 28.00 _ 28.00
Sub-Limit (ILC/FLC) Sanctioned (3.00)
4 Lakshmi Vilas Bank Bank GuaranteeSanctioned _ 18.00 18.00
Total 62.52 18.00 80.52
TOTAL (Rupees Eighty Crores and Fifty Two lakhs Only)
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About Brickwork Ratings

Brickwork 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 12,000 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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