Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 14.88 Crs. of Choksi Laboratories Ltd based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (27 Apr 2023) |
Present | ||
Fund Based | 14.88 | 14.88 | Long Term |
BWR C
Continues to be in ISSUER NOT COOPERATING* category/Downgraded |
BWR C
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
Grand Total | 14.88 | 14.88 | (Rupees Fourteen Crores and Eighty Eight lakhs Only) |
Brickwork Ratings (BWR) has consistently taken up with the company through emails and telephone calls to provide the requisite information for the review of the ratings. Despite the best efforts of BWR to get at least the minimum required information for a review, the company continues to be non-cooperative. Further, the company has not been submitting the monthly ‘No Default Statement’ (NDS) in deviation from the extant guidelines. BWR is unable to assess the entity’s financial performance and its ability to service its debt and maintain a valid rating. Despite the best efforts of BWR to get at least the minimum required information for a review of ratings, the banker has not responded on the same. Hence, on account of inadequate information and lack of management cooperation, BWR has reaffirmed the rating at BWR C & continue the rating under Issuer Non-Cooperating category.
The lenders/investors may note to exercise due caution while using the rating which mentions "Issuer Not Cooperating" since the rating lacks 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 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 information required for a review of the rating.
ABOUT THE ENTITYMacro Economic Indicator | Sector | Industry | Basic Industry |
---|---|---|---|
Utilities | Utilities | Other Utilities | Other Utilities |
The company is having its registered office in Indore. It is engaged in providing testing and analytical solutions to its clients for improving quality in their products, services and processes. It has 6 research laboratories at Vapi, Vadodara, Goa, Haryana, Bangalore and Indore. The company’s contract laboratory services comprise pharmaceutical, food and beverages, water, and construction material analysis. Its instrument calibration and validation services include laboratory and on-site calibration for test equipment, process equipment and various end-user equipment etc. It also offers environment management, laboratory, wastewater management, and air pollution monitoring services. It primarily caters to clients in pharmaceutical, consumer products, and engineering industries. It has expertise in setting up in-house labs for a large number of clients. It also provides consultancy, training & independent auditing for Quality Management Systems. The quality assurance solutions address almost every aspect of regulatory norms set by FDA (Food and Drug Administration), BIS (Bureau of Indian Standards), NABL (National Accreditation Board for testing & calibration Laboratories), Department of Health under Government of Madhya Pradesh and other regulatory bodies. It is certified by BIS, FDA, MoEF (Ministry of Environment & Forests), State Pollution Control Boards of Gujarat and Madhya Pradesh, Department of Health (Madhya Pradesh), Agricultural Marketing Advisor (AGMARK - GOI), and several other regulatory bodies. It is also accredited by NABL which is internationally recognized through ILAC (International Laboratory Accreditation Committee) and is based on ISO/IEC 17025 guidelines.
(Information available with BWR is as of Oct 2018)
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
There is no Non-Cooperation from any other Credit Rating Agencies.
ANY OTHER INFORMATIONNA
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 | 14.88 |
BWR C
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
27Apr2023 |
BWR C
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded) |
02May2022 |
BWR B- Stable
(ISSUER NOT COOPERATING* /Reaffirmation) |
10Mar2021 |
BWR B- Stable
(ISSUER NOT COOPERATING* /Downgrade) |
Grand Total | 14.88 | (Rupees Fourteen Crores and Eighty Eight 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 | |
---|---|
Vidit Goel Ratings Analyst vidit.g@brickworkratings.com |
Suryanarayan N Associate Director - Ratings suryanarayan.n@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 | Bank of India | Term LoanSanctioned | 2.68 | _ | 2.68 | |
2 | Bank of India | Dropline ODSanctioned | 11.00 | _ | 11.00 | |
3 | Bank of India | OverdraftSanctioned | 1.20 | _ | 1.20 | |
Total | 14.88 | 0.00 | 14.88 | |||
TOTAL (Rupees Fourteen Crores and Eighty Eight 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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