RATING RATIONALE
22Jun2023

Anik Industries Limited

Brickwork Ratings reaffirms the ratings and continues the ratings in the 'Issuer Not Cooperating' category for the Bank Loan Facilities of Rs. 188.00 Crs. of Anik Industries Limited based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(24 Mar 2022)
Present
Fund Based 33.00 33.00 Long Term BWR D
Reaffirmation/ISSUER NOT COOPERATING*
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Non Fund Based 155.00 155.00 Short Term BWR D
Reaffirmation/ISSUER NOT COOPERATING*
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
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

In view of the non-availability of information and lack of cooperation from ‘Anik Industries Limited’, Brickwork Ratings has reaffirmed the long term and short term rating of ‘‘BWR D’  and and continued the ratings in the “Issuer Not Cooperating” category, based on best available information as the Issuer did not cooperate.

The lenders/investors may note to exercise due caution while using the above ratings which mention  "Issuer  Not  Cooperating",  since the rating lacks any projections or forward looking component as they are arrived at based on best available information without any management/banker's interaction.

The ratings were due for review in March 2023. BWR took up with the company recently over emails and through telephone calls to obtain the required information. Despite the best efforts of BWR to get at least the minimum required information for a review,  the entity has not provided the same. 

Thus, due to lack of management cooperation to furnish adequate information about the company's performance despite follow up, coupled with its non submission of NDS, BWR is unable to assess its financial performance or its ability to service its debt and maintain a valid rating. Accordingly, the ratings have been reaffirmed and continued in the “Issuer Not Cooperating” category. The rating downgrade is based on the lack of up-to-date information on the company’s performance.

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 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 possible deterioration in the credit quality of the rated entity arising from its non-transparency withholding of information required for a review of the rating.

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. 

Note : Information as available in May, 2017 .

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

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

NIL

 

ANY OTHER INFORMATION

Not Applicable

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 33.00
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
24Mar2022
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
22Jul2020
BWR D
(Downgrade/ISSUER NOT COOPERATING*)
Non Fund Based ST 155.00
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
24Mar2022
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
22Jul2020
BWR D
(Downgrade/ISSUER NOT COOPERATING*)
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

Soubhagya Ranjan Kahalsingh

Senior Rating Analyst Board : +91 80 4040 9940 soubhagya.rs@brickworkratings.com

RamaKrishna

Director - Ratings ramakrishna@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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