Brickwork Ratings reaffirms with revision in outlook and simultaneously withdraws the ratings for the Bank Loan Facilities of Rs. 700.00 Crs. of Chemplast Sanmar Ltd.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (24 Feb 2022) |
Present | ||
Fund Based | (60.00) | (60.00) | Long Term |
BWR A+/Positive
Upgraded and change in outlook |
BWR A +
/Stable Reaffirmation with Change in Outlook and Simultaneous Withdrawal |
(10.00) | (10.00) | ||||
(5.00) | (5.00) | ||||
(50.00) | (50.00) | ||||
(1.00) | (1.00) | ||||
(20.00) | (20.00) | ||||
Non Fund Based | 700.00 | 700.00 | Short Term |
BWR A1+
Upgrade |
BWR A1 +
Reaffirmation/Withdrawal |
Grand Total | 700.00 | 700.00 | (Rupees Seven Hundred Crores Only) |
Brickwork Ratings (BWR) has reaffirmed with revision in outlook and simultaneously withdrawn the bank loan ratings based on the request of Chemplast Sanmar Ltd for rating withdrawal and No Objection Certificates (NOCs) from the lenders along with the company's confirmation that BWR's ratings for proposed bank loan facilities have not yet been relied upon for raising debt.
The ratings continue to be supported by the strong brand equity of Sanmar Group, experienced and professional management, established track record and integrated operations, along with the company’s dominant market position in the chemicals industry. The ratings factor in the vulnerability to fluctuations in the prices of key raw materials and finished products.
Hence, in accordance with extant regulatory guidelines and BWR Rating Withdrawal Policy, ratings for the bank loan facilities of Rs. 700.00 Crs. of Chemplast Sanmar Ltd are reaffirmed with a revision in Outlook and simultaneously withdrawn.
ABOUT THE ENTITYIncorporated in 1962, Chemplast Sanmar Limited (CSL), the flagship company of Sanmar Group, is a major manufacturer of paste PVC resins, caustic soda, chlorochemicals, refrigerant gas and industrial salt. The manufacturing facilities are located at Mettur, Panruti, Cuddalore and Vedaranyam in Tamil Nadu, and Karaikal in Puducherry.
Mr. Vijay Sankar is the Chairman, and Mr. Ramkumar Shankar is the Managing Director of CSL. Mr. Chandran Ratnaswami, Dr. Amarnath Ananthanarayanan, Dr. Lakshmi Vijayakumar, Mr. Aditya Jain, Mr. Sanjay Vijay Bhandarkar and Mr. Prasad Raghava Menon are other directors.
On a consolidated basis, the company achieved Rs. 3794.25 Crs. of revenue and Rs. 106.27 Crs. of PAT during 9MFY23 (unaudited). The company had achieved a revenue of Rs. 5891.99 Crs and PAT of Rs.648.65 Crs in FY22 (Audited).
STATUS OF NON-COOPERATION WITH PREVIOUS CRANA
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 |
FB SubLimit | LT | (60.00) |
BWR A+/Stable
(Reaffirmation with Change in Outlook and Simultaneous Withdrawal) |
24Feb2022 |
BWR A+Positive
(Upgraded and change in outlook) |
05Aug2021 |
BWR AStable
(Reaffirmation and change in Outlook) |
17Feb2020 |
BWR AStable
(Reaffirmation) |
(10.00) |
BWR A+/Stable
(Reaffirmation with Change in Outlook and Simultaneous Withdrawal) |
24Feb2022 |
BWR A+Positive
(Upgraded and change in outlook) |
05Aug2021 |
BWR AStable
(Reaffirmation and change in Outlook) |
19May2020 |
BWR AStable
(Reaffirmation) |
||
(5.00) |
BWR A+/Stable
(Reaffirmation with Change in Outlook and Simultaneous Withdrawal) |
24Feb2022 |
BWR A+Positive
(Upgraded and change in outlook) |
05Aug2021 |
BWR AStable
(Reaffirmation and change in Outlook) |
31Jul2020 |
BWR ANegative
(Reaffirmation and change in Outlook) |
||
(50.00) |
BWR A+/Stable
(Reaffirmation with Change in Outlook and Simultaneous Withdrawal) |
24Feb2022 |
BWR A+Positive
(Upgraded and change in outlook) |
05Aug2021 |
BWR AStable
(Reaffirmation and change in Outlook) |
31Jul2020 |
BWR ANegative
(Reaffirmation and change in Outlook) |
||
(1.00) |
BWR A+/Stable
(Reaffirmation with Change in Outlook and Simultaneous Withdrawal) |
24Feb2022 |
BWR A+Positive
(Upgraded and change in outlook) |
05Aug2021 |
BWR AStable
(Reaffirmation and change in Outlook) |
31Jul2020 |
BWR ANegative
(Reaffirmation and change in Outlook) |
||
(20.00) |
BWR A+/Stable
(Reaffirmation with Change in Outlook and Simultaneous Withdrawal) |
24Feb2022 |
BWR A+Positive
(Upgraded and change in outlook) |
05Aug2021 |
BWR AStable
(Reaffirmation and change in Outlook) |
31Jul2020 |
BWR ANegative
(Reaffirmation and change in Outlook) |
||
Non Fund Based | ST | 700.00 |
BWR A1+
(Reaffirmation/Withdrawal) |
24Feb2022 |
BWR A1+
(Upgrade) |
05Aug2021 |
BWR A1
(Reaffirmation) |
17Feb2020 |
BWR A1
(Reaffirmation) |
0.00 |
NA
|
NA |
NA
|
NA |
NA
|
19May2020 |
BWR A1
(Reaffirmation) |
||
0.00 |
NA
|
NA |
NA
|
NA |
NA
|
31Jul2020 |
BWR A1
(Reaffirmation) |
||
Grand Total | 700.00 | (Rupees Seven Hundred Crores 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 | |
---|---|
Swarn Saurabh Senior Rating Analyst swarn.s@brickworkratings.com |
Saakshi Kanwar Senior Manager Ratings saakshi.k@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 | CTBC Bank Company Limited | Standby LC/ILC/FLC/BGSanctioned | _ | 50.00 | 50.00 | |
Sub-Limit (CC/OD) Sanctioned | (1.00) | |||||
Sub-Limit (WCDL) Sanctioned | (50.00) | |||||
2 | DBS Bank India Limited | Letter of CreditSanctioned | _ | 60.00 | 60.00 | |
Sub-Limit (CC/OD) Sanctioned | (5.00) | |||||
Sub-Limit (PC) Sanctioned | (60.00) | |||||
Sub-Limit (WCDL) Sanctioned | (10.00) | |||||
3 | Indian Overseas Bank | Standby LC/ILC/FLC/BGSanctioned | _ | 50.00 | 50.00 | |
Sub-Limit (CC/OD) Sanctioned | (20.00) | |||||
4 | Others | Standby LC/ILC/FLC/BGProposed | _ | 540.00 | 540.00 | |
Total | 0.00 | 700.00 | 700.00 | |||
TOTAL (Rupees Seven Hundred Crores Only) |
Name of Entity | % Ownership | Extent of consolidation | Rationale for consolidation |
---|---|---|---|
Chemplast Cuddalore Vinyls Ltd | 100 | Full | Wholly Owned Subsidiary |
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