Brickwork Ratings downgrades the long term ratings and short term ratings for the Bank Loan Facilities of Rs. 295.23 Crs. of Gravita India Ltd. based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (14 Oct 2021) |
Present | ||
Fund Based | 257.33 | 257.33 | Long Term |
BWR A/Stable
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BWR BBB +
/Stable ISSUER NOT COOPERATING* /Downgrade |
Non Fund Based | 10.00 | 10.00 | Long Term |
BWR A/Stable
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BWR BBB +
/Stable ISSUER NOT COOPERATING* /Downgrade |
27.90 | 27.90 | Short Term |
BWR A2+
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BWR A2
ISSUER NOT COOPERATING* /Downgrade |
|
Grand Total | 295.23 | 295.23 | (Rupees Two Hundred Ninety Five Crores and Twenty Three lakhs Only) |
The rating for the bank loan facilities of Gravita India Limited was due for review in October 2022. Brickwork Ratings (BWR) had taken up with the company through emails and telephonic communication for providing the required information for the review. Despite the best efforts of BWR to get at least the minimum required information for a review, the company did not provide the same. In the absence of adequate information and No Default statement received till November 2022, BWR is unable to assess the company’s financial performance and its ability to service its debt and maintain a valid rating. Further, BWR had sent out for feedback from all the lenders out of which it had received response over phone from only one of them stating that the account was satisfactory.
Hence, on account of inadequate information and lack of management cooperation, BWR has downgraded both the long term and short term rating to BWR BBB+ Stable / A2 and categorized the ratings under “Issuer Not Cooperating” for the bank loan facilities amounting to Rs. 295.23 Crs of Gravita India Limited.
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 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 reflecting weak corporate governance.
ABOUT THE ENTITYGravita India Limited (GIL) is a listed public limited company, incorporated in 1992 by Mr. M.P. Agrawal and Mr. Rajat Agrawal. GIL is majorly engaged in the recycling of lead and manufacturing of lead-based products. GIL presently runs four units - Unit I and Unit III are located at Jaipur, Unit II in Gandhidham (Gujarat) and Unit IV in Chittor (Andhra Pradesh). The total installed capacity of the said units is around 106,819 MTPA. Its aluminium recycling unit was set up at Phagi (Jaipur) during FY17 with a total installed capacity of 12,000 MTPA and the Plastics division was set up in FY19 with a total installed capacity of 12000 MTPA. GIL also provides turnkey solutions for the development of plant & machinery for lead manufacturing units.
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
NIL.
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 | 257.33 |
BWR BBB+/Stable
(ISSUER NOT COOPERATING* /Downgrade) |
NA |
NA
|
04Jan2021 |
BWR BWR A-Stable
(Reaffirmed) |
18Sep2020 |
BWR BWR A-Stable
(Reaffirmed) |
0.00 |
NA
|
NA |
NA
|
14Oct2021 |
BWR AStable
(Upgrade) |
NA |
NA
|
||
Non Fund Based | LT | 10.00 |
BWR BBB+/Stable
(ISSUER NOT COOPERATING* /Downgrade) |
NA |
NA
|
04Jan2021 |
BWR BWR A-Stable
(Assignment) |
NA |
NA
|
0.00 |
NA
|
NA |
NA
|
14Oct2021 |
BWR AStable
(Upgrade) |
NA |
NA
|
||
Non Fund Based | ST | 27.90 |
BWR A2
(ISSUER NOT COOPERATING* /Downgrade) |
NA |
NA
|
04Jan2021 |
BWR BWR A2
(Reaffirmed) |
18Sep2020 |
BWR BWR A2
(Reaffirmed) |
0.00 |
NA
|
NA |
NA
|
14Oct2021 |
BWR A2+
(Upgrade) |
NA |
NA
|
||
Grand Total | 295.23 | (Rupees Two Hundred Ninety Five Crores and Twenty Three 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 | |
---|---|
Suma Giridhara Rating Analyst Board : +91 80 4040 9940 suma.g@brickworkratings.com |
Ravi Rashmi Dhar ravi.d@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 | Bandhan Bank | Term LoanSanctioned | 12.94 | _ | 12.94 | |
2 | Canara Bank | Cash CreditSanctioned | 10.10 | _ | 10.10 | |
3 | Canara Bank | Covid -19 Emergency Line CreditSanctioned | 0.44 | _ | 0.44 | |
4 | Canara Bank | GECLSanctioned | 9.60 | _ | 9.60 | |
5 | Canara Bank | ILC/FLC/BGSanctioned | _ | 1.40 | 1.40 | |
6 | ICICI Bank | Standby line of Credit (SLC)Sanctioned | 10.00 | _ | 10.00 | |
7 | ICICI Bank | Cash CreditSanctioned | 7.00 | _ | 7.00 | |
8 | Jammu and Kashmir Bank | Cash CreditSanctioned | 8.75 | _ | 8.75 | |
9 | Jammu and Kashmir Bank | Covid -19 Emergency Line CreditSanctioned | _ | _ | 0.00 | |
10 | Punjab National Bank | Covid -19 Emergency Line CreditSanctioned | 1.76 | _ | 1.76 | |
11 | Punjab National Bank | Term LoanSanctioned | 0.40 | _ | 0.40 | |
12 | Punjab National Bank | Cash CreditSanctioned | 39.00 | _ | 39.00 | |
13 | Punjab National Bank | GECLSanctioned | 8.86 | _ | 8.86 | |
14 | State Bank Of India (SBI) | ILC/FLC/BGSanctioned | _ | 23.00 | 23.00 | |
15 | State Bank Of India (SBI) | Cash CreditSanctioned | 102.00 | _ | 102.00 | |
16 | State Bank Of India (SBI) | GECLSanctioned | 13.35 | _ | 13.35 | |
17 | State Bank Of India (SBI) | Covid -19 Emergency Line CreditSanctioned | 5.70 | _ | 5.70 | |
18 | UCO Bank | Covid -19 Emergency Line CreditSanctioned | 1.36 | _ | 1.36 | |
19 | UCO Bank | Cash CreditSanctioned | 20.50 | _ | 20.50 | |
20 | UCO Bank | ILC/FLC/BGSanctioned | _ | 3.50 | 3.50 | |
21 | Union Bank of India | Covid -19 Emergency Line CreditSanctioned | 0.82 | _ | 0.82 | |
22 | United Bank of India | Cash CreditSanctioned | 14.75 | _ | 14.75 | |
Total | 267.33 | 27.90 | 295.23 | |||
TOTAL (Rupees Two Hundred Ninety Five Crores and Twenty Three lakhs Only) |
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About Brickwork RatingsBrickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. BWR has rated over 12,000 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partner. BWR has its corporate office in Bengaluru and a country-wide presence with its offices in Ahmedabad, Chandigarh, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi along with representatives in 150+ locations.
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