RATING RATIONALE
14Jun2024

Anik Industries Limited

Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 188.00 Crs. of Anik Industries Limited based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(22 Jun 2023)
Present
Fund Based 33.00 33.00 Long Term BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Non Fund Based 155.00 155.00 Short Term BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Grand Total 188.00 188.00 (Rupees One Hundred Eighty Eight Crores 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

The rating is due for review June 2024. Brickwork ratings(BWR) took up with the company to provide the required information over emails and through telephonic communication. Despite the best efforts of Brickwork Ratings to get at least the minimum required information for a review, the company has not provided the same. The banker has not provided feedback on the company's account conduct. In the absence of adequate information from the issuer and continued lack of management cooperation, Brickwork Ratings is unable to assess the issuer's financial performance and its ability to service its debt and maintain valid ratings. The company has not been submitting NDS to BWR. Based on inadequate information and continued lack of management cooperation, Brickwork Ratings has reaffirmed the long-term and short-term rating at 'BWR D' and continued the ratings in the Issuer Not Cooperating* category. 

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 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 possible deterioration in the credit quality of the rated entity arising from its non-transparency withholding of information required for a review of the rating.

ABOUT THE ENTITY
Macro Economic Indicator Sector Industry Basic Industry
Services Services Commercial Services & Supplies Trading & Distributors

Anik Industries Limited (AIL or “The Company”) was incorporated in 1976, is based out of Madhya Pradesh. The registered office of the Company is located in Mumbai with its corporate office in Indore. The Company was initially incorporated as Madhya Pradesh Glychem Industries Limited and subsequently changed to Anik Industries Limited in September 2006. Initially, the company was engaged in the extraction of oils from oilseeds by the solvent extraction process and later set up a dairy business. However, in September 2016, the company divested its dairy unit to M/s. B. S. A. International, Belgium on a slump sale basis for Rs. 451.50 Crs, with the proceeds being used towards the liquidation of outstanding term loans of the Company.

AIL is currently engaged in the trading of commodities, real estate development, and generation of wind power. At present, trading activity remains the major source of revenue for the Company. The products traded by the company include coal as well as agricultural commodities such as pulses, wheat, edible oils etc. The company has been engaged in this line of business for more than 20 years. The Company imports coal from Indonesia, South Africa, and other international markets. 

The management of the company includes Mr. Suresh Chandra Shahra is the current Chairman and Managing Director of AIL. Mr. Manish Chandra Shahra, Mr. Ashok Kumar Trivedi, Mr. Vijay Rathi, Mr. Kamal Kumar Gupta, Mr. Hari Narayan Bhatnagar, and Mrs. Amrita Koolwal are the other directors.

The company has a subsidiary under the name of Revera Milk & Foods Private Limited (RMFPL) where AIL holds 86.61% holdings in RMFPL which does not have any business and only reports lease income from its leased out property. Further, AIL has a 21% share in a partnership firm Mahakosh Property Developers engaged in providing construction services. 

Note : Information as available in May, 2017 .

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

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

No rating with other CRAs.

ANY OTHER INFORMATION

Not Applicable

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 33.00
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
22Jun2023
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
24Mar2022
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
Non Fund Based ST 155.00
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
22Jun2023
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
24Mar2022
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
Grand Total 188.00 (Rupees One Hundred Eighty Eight Crores 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

Kishor G S

Rating Analyst kishor.gs@brickworkratings.com

RamaKrishna

Director - Ratings ramakrishna@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Anik Industries 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 Bank of Baroda Cash CreditSanctioned 5.00 _ 5.00
2 Bank of Baroda Bank GuaranteeSanctioned _ 1.50 1.50
3 Bank of Baroda Letter of CreditSanctioned _ 33.50 33.50
4 Central Bank of India Letter of CreditSanctioned _ 35.00 35.00
5 Central Bank of India Cash CreditSanctioned 5.00 _ 5.00
6 HDFC Bank Term LoanSanctioned 8.00 _ 8.00
7 HDFC Bank Cash CreditSanctioned 5.00 _ 5.00
8 HDFC Bank Letter of CreditSanctioned _ 15.00 15.00
9 Punjab National Bank Letter of CreditSanctioned _ 55.00 55.00
10 Punjab National Bank Cash CreditSanctioned 5.00 _ 5.00
11 State Bank Of India (SBI) Cash CreditSanctioned 5.00 _ 5.00
12 State Bank Of India (SBI) Bank GuaranteeSanctioned _ 0.50 0.50
13 State Bank Of India (SBI) Letter of CreditSanctioned _ 14.50 14.50
Total 33.00 155.00 188.00
TOTAL (Rupees One Hundred Eighty Eight Crores Only)
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