RATING RATIONALE
06Dec2021

Shri Bholanath Carpets Ltd.

Brickwork Ratings downgrade the long term rating as BWR B+ and short term rating as BWR A4 for the Bank Loan Facilities of Rs.10.60 Crs of Shri Bholanath Carpets Ltd.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(25 Sep 2020)
Present
Fund Based (5.50) (5.50) Long Term BWR BB-/Stable
Assignment
BWR B + /Stable
Downgrade/ISSUER NOT COOPERATING*
10.50 10.50 Short Term BWR A4+
Upgrade
BWR A4
Downgrade/ISSUER NOT COOPERATING*
Non Fund Based 0.10 0.10 Short Term BWR A4+
BWR A4
Downgrade/ISSUER NOT COOPERATING*
Grand Total 10.60 10.60 (Rupees Ten Crores and Sixty 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


RATING ACTION / OUTLOOK

BWR had assigned the bank loans of Shri Bholanath Industries Ltd a long term rating assigned as BWR BB- and short term rating upgraded as BWR A4+ in September 2020. Later on 20 October 2021, the ratings were moved to the “Rating not Reviewed” category. We tried to reach out to the client for information for doing a surveillance rating through various emails. However, there was no response from the client. The client has also not submitted NDS for the past many months since the rating was assigned to them. In the absence of adequate information from the Company, BWR is unable to assess the Company’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 and non submission of NDS on a monthly basis, Brickwork Ratings has downgraded the Long Term rating to BWR B+ and short term rating to BWR A4 : Issuer Not Cooperating.

KEY RATING DRIVERS

ABOUT THE ENTITY

Initially, Bholanath International Ltd. was incorporated as a private limited company in the name of Bholanath Carpets Pvt. Ltd. on 21st July 1973 and was converted into a Public Limited company on 25th September 1989. The name of the Company was subsequently changed to Bholanath International Ltd. w.e.f. 23/9/1994 and Fresh Certificate of incorporation has been obtained from Registrar of Companies, Uttar Pradesh, Kanpur. With the objective to diversify in export of products other than Carpets, the name of the Company was changed to Bholanath International Limited to represent the true nature of business of the company. In 2011, company changed its name from Bholanath International Ltd. to BIL Continental Ltd and in 2015, the name of the company changed from BIL Continental Ltd. to Shri Bholanath carpets Ltd.

Shri Bholanath Carpets Limited (SBCL) formerly known as , BIL Continental Limited has been engaged in manufacturing of carpets and Yarn since 1973. Its manufacturing facility is located in Bhadohi (Uttar Pradesh). Company is currently being managed by Mr Harish Baranwal and Mr Vivek Baranwal.

 

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 20-21
(Audited)
FY 19-20
(Audited)
Operating Revenue Rs.Crs. 18.06 20.16
EBITDA Rs.Crs. 1.43 1.17
PAT Rs.Crs. 0.05 0.15
Tangible Net Worth Rs.Crs. 12.83 12.78
Total Debt/Tangible Net Worth Times 0.95 0.85
Current Ratio Times 1.60 1.57

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

Shri Bholanath Carpets Ltd. has a rating record from Crisil on 24 December 2020 as CRISIL A4 : Issuer Not Co-operating. CRISIL mention the reason for issue of non cooperation is as follows :-

"CRISIL has been consistently following up with Shri Bholanath Carpets Limited (SBCL) for obtaining information through letters and emails dated May 23, 2020 and November 14, 2020 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component."

 

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating (2021) 2020 2019 2018
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
FB SubLimit LT (5.50)
BWR B+/Stable
(Downgrade/ISSUER NOT COOPERATING*)
25Sep2020
BWR BB-Stable
(Assignment)
NA
NA
NA
NA
Fund Based ST 10.50
BWR A4
(Downgrade/ISSUER NOT COOPERATING*)
16Apr2020
BWR A4
(Downgrade/ISSUER NOT COOPERATING*)
08Feb2019
BWR A4+
(Assignment)
NA
NA
NA
NA
25Sep2020
BWR A4+
(Upgrade)
NA
NA
NA
NA
Non Fund Based ST 0.10
BWR A4
(Downgrade/ISSUER NOT COOPERATING*)
16Apr2020
BWR A4
()
08Feb2019
BWR A4+
()
NA
NA
NA
NA
25Sep2020
BWR A4+
()
NA
NA
NA
NA
Grand Total 10.60 (Rupees Ten Crores and Sixty lakhs Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - NA

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

Yashika Goyal

Ratings Analyst yashika.g@brickworkratings.com

Hari Kishan Yadav

Associate Director - Ratings hari.ky@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Shri Bholanath Carpets 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 Syndicate Bank Bank Guarantee _ 0.10 0.10
2 Syndicate Bank PC/PCFC _ 10.50 10.50
Sub-Limit (cc) (5.50)
Total 0.00 10.60 10.60
TOTAL (Rupees Ten Crores and Sixty lakhs Only)
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