RATING RATIONALE
23Sep2022

Archidply Industries Ltd.

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.

Particulars
Facilities** 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)
#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.
Note: Rating advisory was issue on 01 July 2022 due to delay in the review of ratings.


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

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 ENTITY

Archidply 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).

 

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

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)
Rating Advisory, as on 01Jul2022
Press Release, as on 01Jul2022
A rating advisory was issued due to a delay in the rating review

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

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
Archidply Industries 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.)
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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