Brickwork Ratings downgrades the ratings for the Bank Loan Facilities of Rs. 81.90 Crs. of Archidply Industries Ltd. based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (30 Jun 2021) |
Present | ||
Fund Based | 77.40 | 77.40 | Long Term |
BWR BBB /Stable
Reaffirmation |
BWR BBB -
/Stable ISSUER NOT COOPERATING* /Downgrade |
Non Fund Based | 4.50 | 4.50 | Short Term |
BWR A3+
Reaffirmation |
BWR A3
ISSUER NOT COOPERATING* /Downgrade |
Grand Total | 81.90 | 81.90 | (Rupees Eighty One Crores and Ninety lakhs Only) |
The ratings for the bank loan facilities of Archidply Industries Ltd had fallen due on 30 June 2022 and BWR had issued an advisory in the form of a press release due to delay in the rating review. Brickwork Ratings (BWR) has consistently taken up with the company to provide financial and operational information for the periodic monitoring and surveillance of the ratings. Despite the best efforts of BWR to get at least the minimum required information for a review, the company has not provided the complete information. Due to the continued lack of management cooperation and in the absence of adequate information from the company, BWR is unable to assess its financial performance and its ability to service its debt and maintain a valid rating. Hence, based on the best available information, management's non-cooperation and in line with extant regulatory guidelines, Brickwork Ratings has downgraded the rating as BBB-/Stable/A3, while migrating the ratings to the ISSUER NOT COOPERATING* category.
* Issuer did not cooperate; based on best available information
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 information required for a review of the rating.
ABOUT THE ENTITYArchidply Industries Ltd was incorporated in 1995 in Bengaluru, Karnataka. Its registered office changed to Rudrapur, Udham Singh Nagar, Uttarakhand w.e.f. 28Feb2018. The company is engaged in manufacturing of Plywoods (Marine Plywood, Fire Retardant Plywood, Shuttering Plywood, Densified Film Faced Plywood, BWR & MR Plywood, Lamyply and Lamyboard), Block Boards and Decorative Laminates (range from 0.8mm to 15mm and post form laminates). The manufacturing unit of AIL is located in Rudrapur, Uttarakhand.
Mr. Deen Dayal Daga is the Chairman. Mr. Rajiv Daga is the CEO and Managing Director and Mr. Shyam Daga the Executive Director.
The company’s shares are listed on Bombay Stock Exchange Ltd. (BSE) and National Stock Exchange of India (NSE).
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
Not Applicable
RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)Facilities | Current Rating (2022) | 2021 | 2020 | 2019 | |||||
---|---|---|---|---|---|---|---|---|---|
Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
Fund Based | LT | 77.40 |
BWR BBB-/Stable
(ISSUER NOT COOPERATING* /Downgrade) |
30Jun2021 |
BWR BBB Stable
(Reaffirmation) |
28Apr2020 |
BWR BBB Credit Watch with Developing Implications
(Reaffirmed) |
05Nov2019 |
BWR BBB Credit Watch with Developing Implications
(Reaffirmed and migrated to Credit Watch) |
0.00 |
NA
|
NA |
NA
|
08Jul2020 |
BWR BBB/Stable
(Removed from Credit Watch and Reaffirmed) |
NA |
NA
|
||
Fund Based | ST | 0.00 |
NA
|
NA |
NA
|
28Apr2020 |
BWR A3+ Credit Watch with Developing Implications
(Reaffirmed) |
05Nov2019 |
BWR A3+ Credit Watch with Developing Implications
(Reaffirmed and migrated to Credit Watch) |
Non Fund Based | ST | 4.50 |
BWR A3
(ISSUER NOT COOPERATING* /Downgrade) |
30Jun2021 |
BWR A3+
(Reaffirmation) |
28Apr2020 |
BWR A3+ Credit Watch with Developing Implications
(Reaffirmed) |
05Nov2019 |
BWR A3+ Credit Watch with Developing Implications
(Reaffirmed and migrated to Credit Watch) |
0.00 |
NA
|
NA |
NA
|
08Jul2020 |
BWR A3+
(Removed from Credit Watch and Reaffirmed) |
NA |
NA
|
||
Grand Total | 81.90 | (Rupees Eighty One Crores and Ninety 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 | |
---|---|
Vineet Krishnan Nair Senior Ratings Analyst vineet.kn@brickworkratings.com |
Saakshi Kanwar Senior Manager Ratings saakshi.k@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 | HDFC Bank | Cash CreditSanctioned | 30.00 | _ | 30.00 | |
2 | HDFC Bank | Bank GuaranteeSanctioned | _ | 4.50 | 4.50 | |
3 | State Bank Of India (SBI) | Common Covid Emergency Line of Credit (CCECL)Out-standing | 3.35 | _ | 3.35 | |
4 | State Bank Of India (SBI) | Term LoanOut-standing | 4.05 | _ | 4.05 | |
5 | State Bank Of India (SBI) | Cash CreditSanctioned | 40.00 | _ | 40.00 | |
Total | 77.40 | 4.50 | 81.90 | |||
TOTAL (Rupees Eighty One Crores and Ninety lakhs Only) |
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