Brickwork Ratings downgrades the long term ratings and reaffirms the short term ratings and continues the ratings in the "Issuer not cooperating" category for the Bank Loan Facilities of Rs. 13.45 Crs. of Saboo-Sodium Chloro Ltd based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (23 Nov 2022) |
Present | ||
Fund Based | 12.95 | 12.95 | Long Term |
BWR B /Stable
Continues to be in ISSUER NOT COOPERATING* category/Downgraded |
BWR B -
/Stable Continues to be in ISSUER NOT COOPERATING* category/Downgraded |
Non Fund Based | 0.50 | 0.50 | Short Term |
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
Grand Total | 13.45 | 13.45 | (Rupees Thirteen Crores and Forty Five lakhs Only) |
BWR has downgraded the long term rating to BWR B-/Stable and reaffirmed the short term rating of BWR A4 for the bank loan facilities of Saboo-Sodium Chloro Ltd and continued to be placed under the "Issuer Not Cooperating" category based on the available information as the issuer did not cooperate.
BWR had initially assigned a rating of BWR BB/Stable/ BWR A4+ for the bank loan facilities as on 29 Dec 2015. The ratings were reaffirmed at BWR BB/Stable/ BWR A4+ for the bank loan facilities as on 08 Feb 2017. The ratings were reaffirmed at BWR BB/Stable/ BWR A4+ for the bank loan facilities as on 02 May 2018. The rating was due for renew in May, 2019. On 30 Mar, 2020, the ratings were downgraded at BWR BB-/Stable/ BWR A4 and the ratings were migrated under the "Issuer Not Cooperating" category. On 11 Aug, 2021, the long term ratings were downgraded to BWR B+/Stable and the short term ratings were reaffirmed at BWR A4 and the ratings were continued under the "Issuer Not Cooperating" category. On 23 Nov, 2022, the long term ratings were downgraded at BWR B/Stable and the short term ratings were reaffirmed at BWR A4 and the ratings were continued under the "Issuer Not Cooperating" category.
Going forward, BWR tried to consistently contact the issuer to provide the required information over emails but no response has been received from the client. We were unable to reach the banker through mails, the banker feedback regarding the conduct of the account is not available. Despite the best efforts of BWR to get at least the minimum required information for the review, the entity has not provided the same. In the absence of adequate information from the firm, BWR is unable to assess the firm'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 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, noncooperation 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 ENTITYMacro Economic Indicator | Sector | Industry | Basic Industry |
---|---|---|---|
Fast Moving Consumer Goods | Fast Moving Consumer Goods | Food Products | Other Food Products |
Jaipur (Rajasthan) based SSCL was incorporated in November 1993 and is a part of the Saboo Group (SG). The group is promoted by Mr. Girdhar Saboo and his family members and has interests in refining of salt, trading of spices, power generation and hospitality. SSCL is listed on the Bombay Stock Exchange since December 2000. SSCL is presently engaged in the refining and trading of salt which is marketed under the brand name “Surya Salt”. The group also has a company named Spectrum Foods Limited which is presently engaged in the trading of salt, that is produced by its group company, Saboo Sodium Chloro Limited, and power generation through wind mill.
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
No outstanding rating from other CRAs.
ANY OTHER INFORMATIONNil
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 | 12.95 |
BWR B-/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded) |
NA |
NA
|
23Nov2022 |
BWR B Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded) |
11Aug2021 |
BWR B+ Stable
(ISSUER NOT COOPERATING* /Downgrade) |
Non Fund Based | ST | 0.50 |
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
NA |
NA
|
23Nov2022 |
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
11Aug2021 |
BWR A4
(ISSUER NOT COOPERATING* /Reaffirmation) |
Grand Total | 13.45 | (Rupees Thirteen Crores and Forty Five 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 | |
---|---|
Vaishali Khandelwal Rating Analyst vaishali.k@brickworkratings.com |
V.K.Kukreja Associate Director - Ratings Board : +91 11 2341 2232 kukreja.vk@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 | State Bank Of India (SBI) | Term LoanOut-standing | 2.95 | _ | 2.95 | |
2 | State Bank Of India (SBI) | Bank GuaranteeSanctioned | _ | 0.50 | 0.50 | |
3 | State Bank Of India (SBI) | Working Capital Demand LoanSanctioned | 10.00 | _ | 10.00 | |
Total | 12.95 | 0.50 | 13.45 | |||
TOTAL (Rupees Thirteen Crores and Forty Five lakhs Only) |
The Rating Rationale is sent to you for the sole purpose of dissemination through your print, digital or electronic media. While it may be used by you acknowledging credit to BWR, please do not change the wordings in the rationale to avoid conveying a meaning different from what was intended by BWR. BWR alone has the sole right of sharing (both direct and indirect) its rationales for consideration or otherwise through any print or electronic or digital media.
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.
Disclaimer
Brickwork Ratings India Pvt. Ltd. (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by the Reserve Bank of India [RBI], offers credit ratings of Bank Loan facilities, 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. [ hereafter referred to as "Instruments"]. BWR also rates NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations.
BWR wishes to inform all persons who may come across Rating Rationales and Rating Reports provided by BWR that the ratings assigned by BWR are based on information obtained from the issuer of the instrument and other reliable sources, which in BWR's best judgment are considered reliable. The Rating Rationale / Rating Report & other rating communications are intended for the jurisdiction of India only. The reports should not be the sole or primary basis for any investment decision within the meaning of any law or regulation (including the laws and regulations applicable in Europe and also the USA).
BWR also wishes to inform that access or use of the said documents does not create a client relationship between the user and BWR.
The ratings assigned by BWR are only an expression of BWR's opinion on the entity / instrument and should not in any manner be construed as being a recommendation to either, purchase, hold or sell the instrument.
BWR also wishes to abundantly clarify that these ratings are not to be considered as an investment advice in any jurisdiction nor are they to be used as a basis for or as an alternative to independent financial advice and judgment obtained from the user's financial advisors. BWR shall not be liable to any losses incurred by the users of these Rating Rationales, Rating Reports or its contents. BWR reserves the right to vary, modify, suspend or withdraw the ratings at any time without assigning reasons for the same.
BWR's ratings reflect BWR's opinion on the day the ratings are published and are not reflective of factual circumstances that may have arisen on a later date. BWR is not obliged to update its opinion based on any public notification, in any form or format although BWR may disseminate its opinion and analysis when deemed fit.
Neither BWR nor its affiliates, third party providers, as well as the directors, officers, shareholders, employees or agents (collectively, "BWR Party") guarantee the accuracy, completeness or adequacy of the Ratings, and no BWR Party shall have any liability for any errors, omissions, or interruptions therein, regardless of the cause, or for the results obtained from the use of any part of the Rating Rationales or Rating Reports. Each BWR Party disclaims all express or implied warranties, including, but not limited to, any warranties of merchantability, suitability or fitness for a particular purpose or use. In no event shall any BWR Party be liable to any one for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of any part of the Rating Rationales and/or Rating Reports even if advised of the possibility of such damages. However, BWR or its associates may have other commercial transactions with the company/entity. BWR and its affiliates do not act as a fiduciary.
BWR keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of the respective activity. As a result, certain business units of BWR may have information that is not available to other BWR business units. BWR has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.
BWR clarifies that it may have been paid a fee by the issuers or underwriters of the instruments, facilities, securities etc., or from obligors. BWR's public ratings and analysis are made available on its web site, www.brickworkratings.com. More detailed information may be provided for a fee. BWR's rating criteria are also generally made available without charge on BWR's website.
This disclaimer forms an integral part of the Ratings Rationales / Rating Reports or other press releases, advisories, communications issued by BWR and circulation of the ratings without this disclaimer is prohibited.
BWR is bound by the Code of Conduct for Credit Rating Agencies issued by the Securities and Exchange Board of India and is governed by the applicable regulations issued by the Securities and Exchange Board of India as amended from time to time.