RATING RATIONALE
28Aug2023

POCL Enterprises Ltd.

Brickwork Ratings Downgrades the ratings for the Bank Loan Facilities of Rs. 85.07 Crs. of POCL Enterprises Ltd on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(27 Jul 2022)
Present
Fund Based 60.77 60.77 Long Term BWR BBB /Stable
Upgrade
BWR BB + /Stable
ISSUER NOT COOPERATING* /Downgrade
(25.00) (25.00)
(10.00) (10.00)
13.00 13.00 Short Term BWR A3+
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BWR A4 +
ISSUER NOT COOPERATING* /Downgrade
Non Fund Based 11.30 11.30 Short Term BWR A3+
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BWR A4 +
ISSUER NOT COOPERATING* /Downgrade
(25.00) (25.00)
(25.00) (25.00)
Grand Total 85.07 85.07 (Rupees Eighty Five Crores and Seven 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
Note: *Issuer did not cooperate; based on best available information.


RATING ACTION / OUTLOOK

The rating is due for a review in July 2023. BWR took up with the issuer to provide the required information over emails and through telephone calls. Despite the best efforts of BWR to get at least the minimum required information for a review, the entity 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 ratings.

In view of the non-availability of the information, non-submission of monthly ‘No Default Statement’ as per regulatory requirements, and lack of cooperation from the issuer, Brickwork Ratings has Downgraded the long term rating to ‘BWR BB+ / Stable ISSUER NOT COOPERATING*   and Downgraded the short term rating to 'BWR A4+ ISSUER NOT COOPERATING* for the bank loan facilities amounting to Rs.85.07 Crs of POCL Enterprises Ltd.

The lenders may note to exercise due caution while using the above ratings, which mentions “ISSUER NOT COOPERATING” since the ratings lack any projections of a forward-looking component as it is arrived at based on the best available information on the entity without any management interaction/banker’s interaction

KEY RATING DRIVERS

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, Brickwork Ratings has applied its rating methodology as detailed at the end of the document. The company does not have any subsidiary, associate or holding company.

RATING SENSITIVITIES

NA

LIQUIDITY INDICATORS - Adequate

Liquidity is Adequate as per last review of the case on July-2022. For Current FY latest information is not available.

ABOUT THE ENTITY
Macro Economic Indicator Sector Industry Basic Industry
Commodities Metals & Mining Diversified Metals Diversified Metals

POCL Enterprises Limited ('POEL' or 'The company') was initially established on 20May1988 for trading of chemicals in Chennai. POEL is an ISO 9001:2015 company and specializes in manufacturing and trading of various metals, metal oxides and plastic additives. The company has manufacturing units in Puducherry (two), Kakkalur – Thiruvallur and Maraimalai Nagar, Tamil Nadu. The company is listed in BSE.

Mr. Harish Kumar Lohia is the Non-Executive Chairperson. Mr. Devkar Bansal and Mr. Sunil Kumar Bansal are the Managing Directors.

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 21-22
(Audited)
FY 22-23
(Audited)
FY 23-24
(Unaudited - Midterm_Q1)
Operating Revenue Rs.Crs. 497.83 874.36 217.52
EBITDA Rs.Crs. 11.31 28.64 7.05
PAT Rs.Crs. 3.37 12.89 3.15
Tangible Net Worth Rs.Crs. 38.49 51.51 51.51
Total Debt/TNW Times 2.22 1.75 1.75
Current Ratio Times 1.22 1.35 1.35
KEY COVENANTS OF THE FACILITY RATED

The terms of sanction include standard covenants normally stipulated for such facilities.


NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

Care Ratings has assigned Long term ratings CARE BBB/ Stable and Short term ratings CARE A3+ for the credit facilities of Rs. 90 Crs dated 21-July-2023.

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 60.77
BWR BB+/Stable
(ISSUER NOT COOPERATING* /Downgrade)
27Jul2022
BWR BBB Stable
(Upgrade)
26Jul2021
BWR BBB- Stable
(Reaffirmation)
27Nov2020
BWR BBB- Stable
(Reaffirmation)
FB SubLimit LT (25.00)
BWR BB+/Stable
(ISSUER NOT COOPERATING* /Downgrade)
NA
NA
NA
NA
NA
NA
(10.00)
BWR BB+/Stable
(ISSUER NOT COOPERATING* /Downgrade)
NA
NA
NA
NA
NA
NA
Fund Based ST 13.00
BWR A4+
(ISSUER NOT COOPERATING* /Downgrade)
27Jul2022
BWR A3+
(Upgrade)
26Jul2021
BWR A3
(Reaffirmation)
27Nov2020
BWR A3
(Reaffirmation)
Non Fund Based ST 11.30
BWR A4+
(ISSUER NOT COOPERATING* /Downgrade)
27Jul2022
BWR A3+
(Upgrade)
26Jul2021
BWR A3
(Reaffirmation)
27Nov2020
BWR A3
(Reaffirmation)
NFB SubLimit ST (25.00)
BWR A4+
(ISSUER NOT COOPERATING* /Downgrade)
NA
NA
NA
NA
NA
NA
(25.00)
BWR A4+
(ISSUER NOT COOPERATING* /Downgrade)
NA
NA
NA
NA
NA
NA
Grand Total 85.07 (Rupees Eighty Five Crores and Seven 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

Joshi Vishalkumar Dinkarkumar

Rating Analyst vishalkumar.j@brickworkratings.com

Nagaraj K

Director - Ratings Board : +91 80 4040 9940 nagaraj.ks@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
POCL Enterprises 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 Canara Bank Cash CreditSanctioned 17.70 _ 17.70
Sub-Limit (WCDL) Sanctioned (10.00)
2 Canara Bank PC/PCFC/FDB/BRD/FBESanctioned _ 13.00 13.00
3 Canara Bank Emergency Credit Line Guarantee Scheme (ECLGS)Sanctioned 6.70 _ 6.70
4 Canara Bank Emergency Credit Line Guarantee Scheme (ECLGS)Sanctioned 3.49 _ 3.49
5 Canara Bank ILC/FLC/BGSanctioned _ 5.30 5.30
6 HDFC Bank Standby LC/ILC/FLC/BGSanctioned _ 6.00 6.00
7 HDFC Bank Emergency Credit Line Guarantee Scheme (ECLGS)Sanctioned 2.74 _ 2.74
8 HDFC Bank Emergency Credit Line Guarantee Scheme (ECLGS)Sanctioned 5.14 _ 5.14
9 HDFC Bank Cash CreditSanctioned 25.00 _ 25.00
Sub-Limit (Post Shipment Finance) Sanctioned (25.00)
Sub-Limit (Pre Shipment Finance) Sanctioned (25.00)
Sub-Limit (Working Capital Demand Loan) Sanctioned (25.00)
Total 60.77 24.30 85.07
TOTAL (Rupees Eighty Five Crores and Seven lakhs Only)
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About Brickwork Ratings

Brickwork 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 11,560 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.

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