RATING RATIONALE
06Feb2023

Sunil Kumar Agrawal

Brickwork Ratings downgrades the ratings for the Bank Loan Facilities of Rs. 85.00 Crs. of Sunil Kumar Agrawal based on the best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(31 Jan 2022)
Present
Fund Based 24.00 24.00 Long Term BWR BBB+ /Stable
Reaffirmation
BWR BBB - /Stable
ISSUER NOT COOPERATING* /Downgrade
Non Fund Based 61.00 61.00 Short Term BWR A2
Reaffirmation
BWR A3
ISSUER NOT COOPERATING* /Downgrade
Grand Total 85.00 85.00 (Rupees Eighty Five 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

In view of the non-availability of the information, and lack of cooperation from the issuer, Brickwork Ratings has downgraded the ratings to ‘BWR BBB-/Stable/A3 from the BWR BBB+/Stable/A2, and the also ratings migrated to ISSUER NOT COOPERATING’ for the bank loan facilities amounting to Rs.85.00 Crs of Sunil Kumar Agarwal.

The lenders may note to exercise due caution while using the above ratings, which mention “ISSUER NOT COOPERATING” since the ratings lack any projections of a forward-looking component as it is arrived at based on the best available information on the entity without any management interaction/banker’s interaction.

The ratings were due for review in January 2023. BWR took up with the issuer to provide the required information over vide emails dated 09 January 2023, 04 January 2023, and  02 January 2023 and also through telephone calls. Despite the best efforts of BWR to get the 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 valid ratings.

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

Information As on January 31, 2022

Sunil Kumar Agrawal was established in the year 1994 by the father of Mr. Sunil Kumar Agrawal. The entity undertakes the construction of canals, dams, bridges, anicuts and roads, mainly through contracts awarded by the Public Works Department (PWD), Tribal Development Programme (TDP), Water Resources Department (WRD), Chhattisgarh Government Road Development Corporation (CGRDC) and NHAI. Civil works also include the construction of labor colonies, Housing Colonies, Industrial Buildings, Culverts, C D works, Mass Concreting Works, Bridges, Dams, Canals etc., Mass Earth Excavation Work, Rock Excavation for canals, dams, and any type of mass development work, Foundation Excavation, Earthwork & site grading, Construction of Roads and Dealing in land and providing Land to industries. The entity is registered in class ‘A’ contractor of the Engineer-in-Chief PWD, Chattisgarh, and other departments  at Jharkhand & Orissa wherein there is no upper limit for participating in a bid 

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

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

India Ratings vide its press release on 10th July 2020 has put the ratings on issuer Non-Co-operation on account of non-submission of information

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2023) 2022 2021 2020
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 24.00
BWR BBB-/Stable
(ISSUER NOT COOPERATING* /Downgrade)
31Jan2022
BWR BBB+ Stable
(Reaffirmation)
11Jun2021
BWR BBB- Stable
(Downgrade/ISSUER NOT COOPERATING*)
20Feb2020
BWR BBB+ Stable
(Assignment)
0.00
NA
NA
NA
10Dec2021
BWR BBB+ Stable
(Upgrade)
NA
NA
Non Fund Based ST 61.00
BWR A3
(ISSUER NOT COOPERATING* /Downgrade)
31Jan2022
BWR A2
(Reaffirmation)
11Jun2021
BWR A3
(Downgrade/ISSUER NOT COOPERATING*)
20Feb2020
BWR A3+
(Assignment)
0.00
NA
NA
NA
10Dec2021
BWR A2
(Upgrade)
NA
NA
Grand Total 85.00 (Rupees Eighty Five 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

Prashanth Boorala

Ratings Analyst Board : +91 40 2331 0161 / 2331 0071 prashanth.b@brickworkratings.com

Nagaraj K

Associate Director - Ratings Board : +91 80 4040 9940 nagaraj.ks@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Sunil Kumar Agrawal
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 Over DraftSanctioned 6.50 _ 6.50
2 Bank of Baroda Bank GuaranteeSanctioned _ 8.50 8.50
3 HDFC Bank Bank GuaranteeSanctioned _ 14.00 14.00
4 HDFC Bank Cash CreditSanctioned 6.75 _ 6.75
5 Karnataka Bank Ltd Bank GuaranteeSanctioned _ 24.00 24.00
6 Karnataka Bank Ltd Bank GuaranteeProposed _ 14.50 14.50
7 Karnataka Bank Ltd OverdraftSanctioned 10.75 _ 10.75
Total 24.00 61.00 85.00
TOTAL (Rupees Eighty Five Crores Only)
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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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