RATING RATIONALE
12Nov2024

Hindprakash Industries Ltd(Formally Known as Hindprakash Industries Pvt Ltd)

Brickwork Ratings downgrades the long-term ratings, reaffirms the short-term ratings and continues the ratings under ISSUER NOT COOPERATING* category for the Bank Loan Facilities of Rs. 22.50 Crs. of Hindprakash Industries Ltd (Formally Known as Hindprakash Industries Pvt Ltd) based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(19 Sep 2023)
Present
Fund Based 21.50 21.50 Long Term BWR BB /Stable
ISSUER NOT COOPERATING* /Downgrade
BWR BB - /Stable
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
Non Fund Based 1.00 1.00 Short Term BWR A4
ISSUER NOT COOPERATING* /Downgrade
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
(0.64) (0.64)
Grand Total 22.50 22.50 (Rupees Twenty Two Crores and Fifty 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 (BWR) downgraded the long-term rating and short-term ratings for the bank loan facilities aggregating to Rs.22.50 crores of Hindprakash Industries Ltd. at BWR BB-/Stable/A4 and migrated the ratings under ISSUER NOT COOPERATING* category on 19thSep2023, based on the best available information. The ratings were due for review in September 2024. BWR has consistently contacted the entity through emails and telephone calls to obtain the requisite information for the review of the ratings. Despite BWR's best efforts to secure at least the minimum required information, the entity has not provided the necessary details for the review and has not been submitting the monthly "No Default Statement" (NDS) as required by regulatory guidelines. Due to the lack of management cooperation, BWR is unable to assess the entity’s financial performance and its ability to service its debt and maintain a valid rating. Therefore, based on the best available information, continued lack of management cooperation, non-submission of NDS and in accordance with extant regulatory requirements, BWR downgrades the long-term rating to BWR BB-/Stable and reaffirms the short-term rating at BWR A4 and continues the ratings under ISSUER NOT COOPERATING* category.

Lenders and investors are advised to exercise due caution when using the rating that mentions "Issuer Not Cooperating*" as the rating lacks any projections or forward-looking components, having been arrived at based on the best available information without any interaction with the management or bankers. Such non-cooperation by a rated entity may indicate a deterioration in its credit risk profile.

LIMITATIONS OF THE RATING

Information availability risk is a key factor in the assessment of credit risk as generally 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 ratings should therefore take into account the 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
Commodities Chemicals Chemicals & Petrochemicals Dyes And Pigments

Hindprakash Industries Limited, based at Gujarat, was initially incorporated as Hindprakash Lonsen Industries Private Limited in the year 2008 and later in 2018, the name of the company was changed to Hindprakash Industries Private Limited. The constitution of the company was subsequently changed to a public limited company and as per the information available in public domain, during 2023, the equity shares of the Company have been migrated from the NSE- SME platform to NSE Main Board Platform, as well as the same have also been listed directly from the NSE SME platform to Main Board Platform of BSE with effect from 07 November, 2022.  

The company is engaged in the manufacturing and trading of dyes, intermediates, auxiliary, chemicals, and other merchandise including manufacturing of disperse dyes and textile auxiliaries utilized by textile manufacturers. The dispersed dyes are used for polyester fiber dyeing, woven and knitted fabric dyeing, and spun and textured yarn dyeing and printing. Further, the textile auxiliaries are manufactured in collaboration with Zhejiang Longsheng Group, a Chinese company engaged in the manufacturing of textile auxiliaries. The company manufactures around 25 different types of dispersed dyes and 30 different types of textile auxiliaries. The manufacturing unit of the company is located in Vatva, Gujarat with a total installed capacity of 4000 Metric tonnes per annum for manufacturing more than 150 products of textile auxiliaries, chemicals, dyes, and intermediate, and pigment. The company is being promoted by Mr. Om Prakash Mangal and his son Mr. Sanjay Prakash Mangal along with other family members.

Note: Above information as per data available with BWR as of 20-Jun-2022 and publicly available information. 

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

Not Applicable

ANY OTHER INFORMATION

Not Available.

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 21.50
BWR BB-/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
19Sep2023
BWR BB Stable
(ISSUER NOT COOPERATING* /Downgrade)
20Jun2022
BWR BBB-Stable
(Reaffirmation)
23Feb2021
BWR BBB- Stable
(Reaffirmation)
Non Fund Based ST 1.00
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
19Sep2023
BWR A4
(ISSUER NOT COOPERATING* /Downgrade)
20Jun2022
BWR A3
(Reaffirmation)
23Feb2021
BWR A3
(Reaffirmation)
NFB SubLimit ST (0.64)
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
19Sep2023
BWR A4
(ISSUER NOT COOPERATING* /Downgrade)
20Jun2022
BWR A3
(Reaffirmation)
NA
NA
Grand Total 22.50 (Rupees Twenty Two Crores and Fifty lakhs Only)
Hyperlink/Reference to applicable Criteria
Analytical Contacts

Likith M S

Rating Analyst likith.ms@brickworkratings.com

Suryanarayan N

Associate Director - Ratings suryanarayan.n@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Hindprakash Industries Ltd(Formally Known as Hindprakash Industries Pvt Ltd)
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.) Complexity of the Instrument
1 IDBI Bank Cash CreditSanctioned 21.50 _ 21.50 Simple##
2 IDBI Bank Letter of CreditSanctioned _ 1.00 1.00 Simple##
Sub-Limit (Loan Equivalent Risk) Sanctioned (0.64)
Total 21.50 1.00 22.50
TOTAL (Rupees Twenty Two Crores and Fifty 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.

ANNEXURE-II
INSTRUMENT DETAILS

InstrumentIssue DateAmount (Rs.Crs)Coupon Rate (%)Maturity DateISIN ParticularsComplexity of the Instrument
NilNilNilNilNilNilNil

ANNEXURE-III
List of entities consolidated

Name of Entity% OwnershipExtent of consolidationRationale for consolidation
NilNilNilNil

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