RATING RATIONALE
05Jan2023

Omkar Speciality Chemicals Ltd.

Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 230.50 Crs. of Omkar Speciality Chemicals Ltd. based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(11 Jan 2022)
Present
Fund Based 170.50 170.50 Long Term BWR D
Reaffirmation/ISSUER NOT COOPERATING*
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Non Fund Based 60.00 60.00 Short Term BWR D
Reaffirmation/ISSUER NOT COOPERATING*
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Grand Total 230.50 230.50 (Rupees Two Hundred Thirty 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

BWR has reaffirmed the rating of Omkar Speciality Chemicals Ltd at BWR D Continuing the same under the ISSUER NOT COOPERATING* category for an amount of Rs.230.50 Crs.

BWR has made regular follow-ups with the client for obtaining the required information over emails and through telephone calls. Despite the best efforts of Brickwork Ratings to get the minimum required information for a review, the company has not provided the same. In the absence of adequate information from the issuer, BWR is unable to assess the issuer’s financial performance and its ability to service its debt and maintain a valid rating. Hence, on account of inadequate information and lack of management cooperation, BWR has reaffirmed the rating of the Bank Loan Facilities of the company at BWR D/Issuer Not Co-operating*,  based on the best available information.

*Issuer did not cooperate, based on the 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 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 and withholding of information required for a review of the rating.

ABOUT THE ENTITY

Omkar Speciality Chemicals Limited (OSCL) was originally incorporated as a Proprietorship Firm under the name M/s. Omkar Chemicals in 1983, with Mr. Pravin S. Herlekar as the Proprietor. On February 24, 2005, it changed to a Private Ltd. Company known as Omkar Specialty Chemicals Private Limited. With its continuous growth the company established itself as a Public Limited Company on March 18, 2010 with the name “Omkar Specialty Chemicals Limited”, under the Chairmanship of Mr. Pravin S. Herlekar as the Chairman & Managing Director and with Mr. Omkar P. Herlekar as its Whole Time Director. OSCL is primarily engaged in the production of Specialty Chemicals and Pharma Intermediates. OSCL manufactures a range of Organic, Inorganic and Organo Inorganic Intermediates. The Inorganic Intermediates include Molybdenum derivatives, Selenium derivatives, Iodine derivatives, Cobalt derivatives, Bismuth & Tungsten derivatives and organic intermediates include Tartaric acid derivatives and other intermediates. It was listed on BSE & NSE in the year 2011.

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

 

CRISIL has continued the rating of the company under ISSUER NOT COOPERATING category as the issuer has remained non cooperative. Latest rating CRISIL D/ISSUER NOT COOPERATING vide press release dated November 30, 2021

 

ANY OTHER INFORMATION

NA

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2023) 2022 2021 2020
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 170.50
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
11Jan2022
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
04Dec2020
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
Non Fund Based ST 60.00
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
11Jan2022
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
04Dec2020
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
Grand Total 230.50 (Rupees Two Hundred Thirty Crores and Fifty lakhs 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

Roma Gupta

Ratings Analyst roma.g@brickworkratings.com

Bal Krishna Piparaiya

Principal Director - Ratings Board : +91 22 2831 1426, +91 22 2831 1439 piparaiya.bk@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Omkar Speciality Chemicals 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 Bank of Baroda Term LoanSanctioned 42.50 _ 42.50
2 Bank of Baroda Cash CreditSanctioned 46.00 _ 46.00
3 Bank of Baroda External Commercial BorrowingsSanctioned 32.00 _ 32.00
4 Bank of Baroda Letter of CreditSanctioned _ 60.00 60.00
5 CitiBank Cash CreditSanctioned 25.00 _ 25.00
6 Un tied portion Vendor FinanceProposed 25.00 _ 25.00
Total 170.50 60.00 230.50
TOTAL (Rupees Two Hundred Thirty Crores and Fifty lakhs Only)
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