Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 6.36 Crs. of Bhagawati Oxygen Ltd based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (15 Jun 2023) |
Present | ||
Fund Based | 6.36 | 6.36 | 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 | 6.36 | 6.36 | (Rupees Six Crores and Thirty Six lakhs Only) |
The last rating review was done in June 2023 and the bank loan ratings for Rs 6.36 Crs. were downgraded to BWR C and continued under the ISSUER NOT COOPERATING* category
Despite multiple requests, the entity's management has not cooperated with Brickwork Ratings (BWR) in providing necessary information for monitoring. Consequently, BWR could not ascertain the current status of the rated debt. Based on the limited available information and lacking feedback from bankers or the company, BWR has maintained the BWR C rating while continuing it under "ISSUER NOT COOPERATING."
The lenders/investors may note to exercise due caution while using the above 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, 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.
Analytical Approach: Standalone
ABOUT THE ENTITYMacro Economic Indicator | Sector | Industry | Basic Industry |
---|---|---|---|
Industrials | Capital Goods | Industrial Products | Other Industrial Products |
Bhagawati Oxygen Limited (BOL) was incorporated in 1972 with its registered office in Ballabgarh, Haryana. The company is engaged in manufacturing and selling oxygen gas, trading of Sulfur Hexafluoride (SF6) and running a windmill. The company has its manufacturing unit for oxygen gas at Ghatshila in Jharkhand. The Company is listed at BSE with a BSE code of 509449. The Company has a contract with Hindustan Copper Limited for selling of oxygen gas. It has warehouses for Sulfur Hexafluoride at West Bengal and Gujarat. The company is running a windmill at Tirunelveli in Tamil Nadu, from which it receives income from electricity generation. The company has five directors- Mr. Suresh Kumar Sharma, Mr. Himanshu Sharma, Mr. Bipin Bihari Lal, Mr. Jagdish Chandra Kaushik and Ms. Jaya Sharma.
The oxygen manufacturing plant of BOL has been closed for a long time because it is dependent on Hindustan Copper Limited(HCL), and HCL’s smelter plant in Ghatsila has been non-operational since (HCL) has been focusing on the sale of copper concentrates.
BOL at present derives its revenues from the sale of gases and power.
(As available with BWR dated Feb 2021)
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 Active Rating with other CRAs.
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 | 6.36 |
BWR C
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
15Jun2023 |
BWR C
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded) |
15Jun2022 |
BWR B Negative
(Reaffirmation/ISSUER NOT COOPERATING*) |
25Feb2021 |
BWR B Negative
(Downgrade) |
Grand Total | 6.36 | (Rupees Six Crores and Thirty Six lakhs Only) |
Analytical Contacts | |
---|---|
Shreekant Digambar Kadere Senior Rating Analyst shreekant.dk@brickworkratings.com |
Niraj Kumar Rathi Director Ratings niraj.r@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.) | Complexity of the Instrument |
---|---|---|---|---|---|---|
1 | Indian Bank | Term LoanOut-standing | 4.47 | _ | 4.47 | Simple## |
2 | Indian Bank | Cash CreditSanctioned | 1.00 | _ | 1.00 | Simple## |
3 | State Bank Of India (SBI) | OverdraftSanctioned | 0.89 | _ | 0.89 | Simple## |
Total | 6.36 | 0.00 | 6.36 | |||
TOTAL (Rupees Six Crores and Thirty Six 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.
Instrument | Issue Date | Amount (Rs.Crs) | Coupon Rate (%) | Maturity Date | ISIN Particulars | Complexity of the Instrument |
---|---|---|---|---|---|---|
Nil | Nil | Nil | Nil | Nil | Nil | Nil |
Name of Entity | % Ownership | Extent of consolidation | Rationale for consolidation |
---|---|---|---|
Nil | Nil | Nil | Nil |
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