RATING RATIONALE
14Mar2024

Greenchef Appliances Limited

Brickwork Ratings downgrades the long term rating and reaffirms the short term rating for the Bank Loan Facilities of Rs. 53.43 Crs. of Greenchef Appliances Limited and simultaneously migrates the ratings to the ISSUER NOT COOPERATING category based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(16 Dec 2022)
Present
Fund Based 51.93 51.93 Long Term BWR BB+ /Stable
removal from ISSUER NOT COOPERATING* category/Upgraded
BWR BB /Stable
ISSUER NOT COOPERATING* /Downgrade
Non Fund Based 1.50 1.50 Short Term BWR A4
removal from ISSUER NOT COOPERATING* category/Reaffirmed
BWR A4
ISSUER NOT COOPERATING* /Reaffirmation
Grand Total 53.43 53.43 (Rupees Fifty Three Crores and Forty Three 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

Brickwork Ratings has downgraded the ratings of the long-term bank loan facilities for Rs.51.93 Crs of Greenchef Appliances Limited to BWR BB/Stable and has reaffirmed the ratings of the short-term bank loan facilities for Rs.1.50 Crs to BWR A4 and has simultaneously migrated the ratings to the “ISSUER NOT COOPERATING” category, based on best available information as the Issuer did not cooperate.

The Initial Rating of Greenchef Appliances Limited for Bank Loan Facilities was done on 09 Mar 2017 and ratings of BWR B+/Stable/A4 was assigned. The rating was due for review on 09 Mar 2018. The long term rating was downgraded to BWR B/Stable and the short term rating was reaffirmed at BWR A4 and moved to Issuer Not Cooperating Category on 26 May 2020. The long term rating was downgraded to BWR B-/Stable and the short term rating was reaffirmed at BWR A4 with continuation in the Issuer Not Cooperating Category on 10 Jun 2021. The long term rating was reaffirmed at BWR B-/Stable and the short term rating was reaffirmed at BWR A4 with continuation in the Issuer Not Cooperating Category on 11 Nov 2022. The long term rating was upgraded to BWR BB+/Stable and the short term rating was reaffirmed at BWR A4 and was removed from Issuer Not Cooperating Category on 16 Dec 2022.

The rating was due for a review in December 2023. BWR took up with the issuer and its banker over emails and through telephone calls to provide the required information. Despite the best efforts of BWR to get at least the minimum required information for a review, neither the company nor its banker has provided the same. In the absence of adequate information from the Company and its banker, BWR is unable to assess the Company’s financial performance or its ability to service its debt and maintain a valid rating. The Company has also been irregular with respect to the submission of the monthly No Default Statements. Hence, based on best available information, lack of management cooperation, non submission of NDS, and lack of banker’s feedback, the long-term rating is downgraded and the short term rating is reaffirmed, and simultaneously migrate the ratings to 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 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 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
Macro Economic Indicator Sector Industry Basic Industry
Consumer Discretionary Consumer Durables Consumer Durables Household Appliances

GreenChef Appliances Limited was incorporated in June, 2010 with its registered office situated at Peenya Industrial Area, Bangalore, Karnataka. The company has three  manufacturing units out of which two are in Bengaluru, Karnataka and one in Solan, Himachal Pradesh. The company is ISO 9001: 2008 Certified company. The company started off as an exclusive manufacturer of LPG stoves but gradually forayed into home appliances  kitchen wares and  electrical items. The product range includes Pressure Cookers, Non-Stick Cookware, Rice Cookers, Table Top Grinder, Mixer Grinder, Hobs, LP Gas Stoves, Kettles, and other small electrical appliances. The company sells its products with the brand name “Greenchef”. At present the company has 25 categories of products in Household and Kitchenware segments and sells its products Pan India by its distribution networks and also exports few products to Sri Lanka. The company also sells its products online on ecommerce sites like Amazon, Flipkart, etc.

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

CRISIL has reaffirmed the rating at CRISIL B/Stable/A4 with continuation in the Issuer Not Cooperating Category for the facilities of Rs.20.00 Crs on 12May2023. 

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 51.93
BWR BB/Stable
(ISSUER NOT COOPERATING* /Downgrade)
NA
NA
11Nov2022
BWR B- Stable
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
10Jun2021
BWR B- Stable
(Downgrade/ISSUER NOT COOPERATING*)
0.00
NA
NA
NA
16Dec2022
BWR BB+ Stable
(removal from ISSUER NOT COOPERATING* category/Upgraded)
NA
NA
Non Fund Based ST 1.50
BWR A4
(ISSUER NOT COOPERATING* /Reaffirmation)
NA
NA
11Nov2022
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
10Jun2021
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
0.00
NA
NA
NA
16Dec2022
BWR A4
(removal from ISSUER NOT COOPERATING* category/Reaffirmed)
NA
NA
Grand Total 53.43 (Rupees Fifty Three Crores and Forty Three 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

Chinmaya R

Rating Analyst chinmaya.r@brickworkratings.com

V.K.Kukreja

Associate Director - Ratings Board : +91 11 2341 2232 kukreja.vk@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Greenchef Appliances 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 Canara Bank Term LoanOut-standing 15.00 _ 15.00
2 Canara Bank Cash CreditSanctioned 31.00 _ 31.00
3 Canara Bank Bank GuaranteeSanctioned _ 0.50 0.50
4 Canara Bank Letter of CreditSanctioned _ 1.00 1.00
5 Canara Bank GECLOut-standing 2.46 _ 2.46
6 Canara Bank GECL 2.0Out-standing 3.47 _ 3.47
Total 51.93 1.50 53.43
TOTAL (Rupees Fifty Three Crores and Forty Three lakhs Only)
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About Brickwork Ratings

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 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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