Brickwork Ratings downgrades the long term rating and reaffirms the short term rating for the Bank Loan Facilities of Rs. 147.49 Crs. of Sir Shadi Lal Enterprises Ltd based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (28 Oct 2022) |
Present | ||
Fund Based | 145.99 | 145.99 | Long Term |
BWR B-/Stable
ISSUER NOT COOPERATING*/Downgrade |
BWR C
Continues to be in ISSUER NOT COOPERATING* category/Downgraded |
Non Fund Based | 1.50 | 1.50 | Short Term |
BWR A4
ISSUER NOT COOPERATING*/Reaffirmation |
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
Grand Total | 147.49 | 147.49 | (Rupees One Hundred Forty Seven Crores and Forty Nine lakhs Only) |
The rating was due for review in October 2023. BWR took up with the issuer to provide the required information over emails and also over phone calls but the client did not respond. Despite the best efforts of BWR to get at least the minimum required information for a review, the company 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 adequate 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.
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 based on the best available information without any management/banker's interaction.
In view of the non-availability of information and lack of cooperation from Sir Shadi Lal Enterprises Ltd., Brickwork Ratings has downgraded the long term rating to ‘BWR C’/reaffirmed the short term rating at BWR A4 along with the continuation of the rating in the “Issuer Not Cooperating” category.
LIMITATIONS OF THE RATING
Information availability risk is a key factor in the assessment of credit risk as generally, noncooperation 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 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 ENTITYMacro Economic Indicator | Sector | Industry | Basic Industry |
---|---|---|---|
Fast Moving Consumer Goods | Fast Moving Consumer Goods | Agricultural Food & other Products | Sugar |
Sir Shadi Lal Enterprises Limited was established as a Corporate Body in the year 1933 under the name "The Upper Doab Sugar Mills Limited" by the Shri Sir Shadi Lal, promoter of the company. The name of the company was changed in 1982 to Sir Shadi Lal Enterprises Ltd in 1982. At present, the Company has two manufacturing units comprising of one sugar unit namely Upper Doab Sugar Mills, Shamli, District - Shamli, Uttar Pradesh - 247776 and one distillery unit Shamli Distillery & Chemical Works,Shamli, District - Shamli, Uttar Pradesh - 247776.
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
CRISIL C Issuer Not Cooperating category as on 31-May-2023.
RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)Facilities | Current Rating (2024) | 2023 | 2022 | 2021 | |||||
---|---|---|---|---|---|---|---|---|---|
Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
Fund Based | LT | 145.99 |
BWR C
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded) |
NA |
NA
|
28Oct2022 |
BWR B-Stable
(ISSUER NOT COOPERATING*/Downgrade) |
13Oct2021 |
BWR B+ Stable
(Reaffirmation) |
Non Fund Based | ST | 1.50 |
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
NA |
NA
|
28Oct2022 |
BWR A4
(ISSUER NOT COOPERATING*/Reaffirmation) |
13Oct2021 |
BWR A4
(Reaffirmation) |
Grand Total | 147.49 | (Rupees One Hundred Forty Seven Crores and Forty Nine lakhs Only) |
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 CriteriaAnalytical 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 |
SL.No. | Name of the Bank/Lender | Type Of Facilities | Long Term(Rs.Crs.) | Short Term(Rs.Crs.) | Total(Rs.Crs.) | |
---|---|---|---|---|---|---|
1 | Punjab National Bank | Cash CreditSanctioned | 41.00 | _ | 41.00 | |
2 | Punjab National Bank | Bank GuaranteeSanctioned | _ | 1.50 | 1.50 | |
3 | Zila Sahkari Bank Limited | Cash CreditSanctioned | 30.00 | _ | 30.00 | |
4 | Zila Sahkari Bank Limited | Term LoanSanctioned | 44.99 | _ | 44.99 | |
5 | Zila Sahkari Bank Limited | Term LoanSanctioned | 20.00 | _ | 20.00 | |
6 | Zila Sahkari Bank Limited | Term LoanSanctioned | 10.00 | _ | 10.00 | |
Total | 145.99 | 1.50 | 147.49 | |||
TOTAL (Rupees One Hundred Forty Seven Crores and Forty Nine lakhs Only) |
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About Brickwork RatingsBrickwork 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 11,560 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.
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