RATING RATIONALE
19Oct2023

Sadhav Shipping Ltd

Brickwork Ratings downgrades the ratings for the Bank Loan Facilities of Rs.32.97 Crs. of Sadhav Shipping Ltd based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(22 Jul 2022)
Present
Fund Based 16.39 16.39 Long Term BWR BBB/Stable
Upgrade
BWR BB + /Stable
ISSUER NOT COOPERATING* /Downgrade
Non Fund Based 16.58 16.58 Short Term BWR A3+
Upgrade
BWR A4 +
ISSUER NOT COOPERATING* /Downgrade
Grand Total 32.97 32.97 (Rupees Thirty Two Crores and Ninety Seven 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

In view of the non-availability of information and lack of cooperation from 'Sadhav Shipping Ltd.',  Brickwork Ratings has downgraded the long-term rating to BWR BB+(Stable)/short-term rating to BWR A4+  and migrated the rating into “Issuer Not Cooperating” category, based on best available information as the Issuer did not cooperate.

The ratings were due for review in May 2023. BWR took up with the company 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. The company has also been irregular with respect to the submission of the monthly No Default Statement. In the absence of sufficient information from the company,  BWR is unable to assess the company's financial performance and its ability to service its debt and maintain a valid rating. Hence, based on the best available information, BWR has downgraded the long-term rating to BWR BB+/Stable/short-term rating to BWR A4+ and placed it under the ISSUER NOT COOPERATING* category. Such non - cooperation by a rated entity may be a result of deterioration in its credit risk profile.

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

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 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
Macro Economic Indicator Sector Industry Basic Industry
Services Services Transport Services Shipping

Sadhav Shipping Limited (SSL) was incorporated in 1996 with the objective of owning & operating tanker barges, tugs and merchant vessels in addition to undertaking ship management for other owners. SSL owns & operates tanker barges, bulk cargo barges, security boats and anchor handling tug vessels. It also carries lighterage operations and is involved in the operations & management of vessels for ONGC. The company operates & manages a fleet of 32 vessels of which 16 are owned by itself, whereas the rest are either chartered from third party owners or owned by clients directly.Gradually they have upgraded and diverted into different areas of operation . SSL is presently handling complicated operations like prevention of oil spillage , offshore services vessels , patrol boats and etc.For security patrolling also SSL provides patrol boats and for oil rig operations SSL provides AHTSV to ONGC.SSL has diversified the portfolio , they have received the contract of providing two pilot boats on charter to Mumbai Port Trust and Jawaharlal Nehru Port.

The registered office of the firm is located at Masjid in Mumbai, Maharashtra, whereas its corporate office is at Andheri in Mumbai, Maharashtra.

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

No rating with other CRAs

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 16.39
BWR BB+/Stable
(ISSUER NOT COOPERATING* /Downgrade)
22Jul2022
BWR BBBStable
(Upgrade)
09Jun2021
BWR BBB-Stable
(Reaffirmation)
13Feb2020
BWR BBB-Stable
(Reaffirmation)
Non Fund Based ST 16.58
BWR A4+
(ISSUER NOT COOPERATING* /Downgrade)
22Jul2022
BWR A3+
(Upgrade)
09Jun2021
BWR A3
(Reaffirmation)
13Feb2020
BWR A3
(Reaffirmation)
Grand Total 32.97 (Rupees Thirty Two Crores and Ninety Seven 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

Vijayalakshmi R

Senior Rating Analyst Board : +91 044 24663326 vijayalakshmi.r@brickworkratings.com

RamaKrishna

Director - Ratings ramakrishna@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Sadhav Shipping 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 Bank of Baroda Term LoanSanctioned 0.31 _ 0.31
2 Bank of Baroda Term LoanSanctioned 1.47 _ 1.47
3 Bank of Baroda Term LoanSanctioned 2.02 _ 2.02
4 Bank of Baroda GECLSanctioned 0.60 _ 0.60
5 Bank of India GECLSanctioned 1.66 _ 1.66
6 Bank of India Cash CreditSanctioned 3.28 _ 3.28
7 Bank of India Cash CreditSanctioned 4.00 _ 4.00
8 Bank of India Bank GuaranteeSanctioned _ 16.58 16.58
9 Bank of India GECLSanctioned 3.05 _ 3.05
Total 16.39 16.58 32.97
TOTAL (Rupees Thirty Two Crores and Ninety Seven lakhs Only)
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