RATING RATIONALE
03Dec2021

Uttam Sugar Mills Ltd.

Brickwork Ratings withdraws the ratings for the Bank Loan Facilities of Rs. 942.23 Crs. of Uttam Sugar Mills Ltd.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(12 Nov 2021)
Present
Fund Based 904.73 904.73 Long Term BWR BB+ /Stable
Downgrade/ISSUER NOT COOPERATING*
BWR BB + /Stable
Reaffirmed / ISSUER NOT COOPERATING* and simultaneously Withdrawn
Non Fund Based 37.50 37.50 Short Term BWR A4+
Downgrade/ISSUER NOT COOPERATING*
BWR A4 +
Reaffirmed / ISSUER NOT COOPERATING* and simultaneously Withdrawn
Grand Total 942.23 942.23 (Rupees Nine Hundred Forty Two Crores and Twenty Three 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

BWR has reaffirmed the long term rating of BWR BB+ (Stable) ISSUER NOT COOPERATING and short term rating of BWR A4+ under ISSUER NOT COOPERATING category to Uttam Sugar Mills Limited. We have received a request dated 25th November 2021 from the company seeking withdrawal of the existing credit rating. BWR has also received the Punjab National Bank (Lead Bank), IDBI Bank, Indian Overseas Bank, State Bank of India, Uttarakhand State Cooperative Bank Ltd, Muzaffarnagar District Cooperative Bank Ltd, Zila Sahkari Bank Ltd, Bulandshahr, Zila Sahkari Bank Ltd, Ghaziabad and Zila Sahkari Bank Ltd, Bijnor no objection certificates (NOC) for the withdrawal of the ratings.

Based on the above, the rating to the company has been withdrawn in line with the withdrawal policy of BWR.

ABOUT THE ENTITY

The erstwhile promoters of the company, Mr. M.K Swarup along with his family members incorporated Associated Sugar Mills Limited on October 4, 1993 with 2500 TCD (tonnes of cane per day ) in Libberheri, Uttarakhand. Mr. Raj Kumar Adlakha along with his family members and associates acquired the company in October 1998. Later, the name of the company was changed to USML in Nov 1998. The company is engaged in the manufacturing of sugar, ethanol and cogenerated power. The company has four sugar plants, out of which one is located in the state of Uttarakhand (Libberheri) and other three in Uttar Pradesh (Barkatpur, Khaikheri and Shermau). It also has one Molasses Based Distillery unit in UP as well. Presently, these plants have aggregate sugarcane crushing capacity of 23,750 TCD, cogeneration capacity of 103 MW and Ethanol production capacity of 150 KLPD (kilo litre per day).The promoter group holds 75% equity stake in the company & remaining 25% is with public as on 31 March 2021. The company is listed on Bombay Stock Exchange and National Stock Exchange (March 2006).

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

NA

ANY OTHER INFORMATION

NA

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2021) 2021 (History) 2020 2019 2018
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating Date Rating
Fund Based LT 904.73
BWR BB+/Stable
(Reaffirmed / ISSUER NOT COOPERATING* and simultaneously Withdrawn)
12Nov2021
BWR BB+ Stable
(Downgrade/ISSUER NOT COOPERATING*)
21Aug2020
BWR BBB- Stable
(Reaffirmation)
NA
NA
NA
NA
NA
NA
NA
NA
19Aug2020
BWR BBB-
(Assignment)
NA
NA
NA
NA
Non Fund Based ST 37.50
BWR A4+
(Reaffirmed / ISSUER NOT COOPERATING* and simultaneously Withdrawn)
12Nov2021
BWR A4+
(Downgrade/ISSUER NOT COOPERATING*)
21Aug2020
BWR A3
(Assignment)
NA
NA
NA
NA
Grand Total 942.23 (Rupees Nine Hundred Forty Two Crores and Twenty Three lakhs Only)
Rating Advisory, as on 27Aug2021
Press Release, as on 27Aug2021
As 12 months have lapsed since the last rating, BWR hereby informs that there has been a delay in review of the rating mainly due to non-receipt of essential information. If the company continues to delay in providing the essential information, BWR will act suitably in accordance with the extant SEBI guidelines.

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

Shivam Bhasin

Senior Rating Analyst shivam.b@brickworkratings.com

Tanu Sharma

Director - Ratings tanusharma@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Uttam Sugar Mills 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 IDBI Bank Term LoanSanctioned 13.37 _ 13.37
2 IDBI Bank Term LoanSanctioned 0.54 _ 0.54
3 Indian Overseas Bank Term LoanSanctioned 19.63 _ 19.63
4 Indian Overseas Bank Term LoanSanctioned 0.50 _ 0.50
5 Muzaffarnagar District Cooperative Bank Limited Cash CreditSanctioned 50.00 _ 50.00
6 Punjab National Bank Term LoanSanctioned 92.57 _ 92.57
7 Punjab National Bank Term LoanSanctioned 2.63 _ 2.63
8 Punjab National Bank Term LoanSanctioned 6.55 _ 6.55
9 Punjab National Bank Term LoanSanctioned 0.24 _ 0.24
10 Punjab National Bank Warehouse Receipts (WHR)Sanctioned 175.00 _ 175.00
11 Punjab National Bank ILC/FLCSanctioned _ 35.00 35.00
12 State Bank Of India (SBI) Warehouse Receipts (WHR)Sanctioned 135.00 _ 135.00
13 State Bank Of India (SBI) Letter of CreditSanctioned _ 2.50 2.50
14 State Bank Of India (SBI) Term LoanSanctioned 8.84 _ 8.84
15 State Bank Of India (SBI) Term LoanSanctioned 0.69 _ 0.69
16 Uttarakhand State Cooperative Bank Limited Term LoanSanctioned 1.24 _ 1.24
17 Uttarakhand State Cooperative Bank Limited Term LoanSanctioned 30.57 _ 30.57
18 Uttarakhand State Cooperative Bank Limited Term LoanSanctioned 25.00 _ 25.00
19 Uttarakhand State Cooperative Bank Limited Term LoanSanctioned 45.50 _ 45.50
20 Uttarakhand State Cooperative Bank Limited Cash CreditSanctioned 55.00 _ 55.00
21 Zila Sahkari Bank Limited Term LoanSanctioned 10.59 _ 10.59
22 Zila Sahkari Bank Limited Term LoanSanctioned 79.37 _ 79.37
23 Zila Sahkari Bank Limited Term LoanSanctioned 32.00 _ 32.00
24 Zila Sahkari Bank Limited Term LoanSanctioned 13.40 _ 13.40
25 Zila Sahkari Bank Limited Cash CreditSanctioned 46.50 _ 46.50
26 Zila Sahkari Bank Limited Cash CreditSanctioned 20.00 _ 20.00
27 Zila Sahkari Bank Limited Cash CreditSanctioned 40.00 _ 40.00
Total 904.73 37.50 942.23
TOTAL (Rupees Nine Hundred Forty Two Crores and Twenty Three lakhs Only)
Print and Digital Media

The Rating Rationale is sent to you for the sole purpose of dissemination through your print, digital or electronic media. While it may be used by you acknowledging credit to BWR, please do not change the wordings in the rationale to avoid conveying a meaning different from what was intended by BWR. BWR alone has the sole right of sharing (both direct and indirect) its rationales for consideration or otherwise through any print or electronic or digital media.

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 11,400 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.

Disclaimer

Brickwork Ratings India Pvt. Ltd. (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by the Reserve Bank of India [RBI], offers credit ratings of Bank Loan facilities, 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. [ hereafter referred to as "Instruments"]. BWR also rates NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations.

BWR wishes to inform all persons who may come across Rating Rationales and Rating Reports provided by BWR that the ratings assigned by BWR are based on information obtained from the issuer of the instrument and other reliable sources, which in BWR's best judgment are considered reliable. The Rating Rationale / Rating Report & other rating communications are intended for the jurisdiction of India only. The reports should not be the sole or primary basis for any investment decision within the meaning of any law or regulation (including the laws and regulations applicable in Europe and also the USA).

BWR also wishes to inform that access or use of the said documents does not create a client relationship between the user and BWR.

The ratings assigned by BWR are only an expression of BWR's opinion on the entity / instrument and should not in any manner be construed as being a recommendation to either, purchase, hold or sell the instrument.

BWR also wishes to abundantly clarify that these ratings are not to be considered as an investment advice in any jurisdiction nor are they to be used as a basis for or as an alternative to independent financial advice and judgment obtained from the user's financial advisors. BWR shall not be liable to any losses incurred by the users of these Rating Rationales, Rating Reports or its contents. BWR reserves the right to vary, modify, suspend or withdraw the ratings at any time without assigning reasons for the same.

BWR's ratings reflect BWR's opinion on the day the ratings are published and are not reflective of factual circumstances that may have arisen on a later date. BWR is not obliged to update its opinion based on any public notification, in any form or format although BWR may disseminate its opinion and analysis when deemed fit.

Neither BWR nor its affiliates, third party providers, as well as the directors, officers, shareholders, employees or agents (collectively, "BWR Party") guarantee the accuracy, completeness or adequacy of the Ratings, and no BWR Party shall have any liability for any errors, omissions, or interruptions therein, regardless of the cause, or for the results obtained from the use of any part of the Rating Rationales or Rating Reports. Each BWR Party disclaims all express or implied warranties, including, but not limited to, any warranties of merchantability, suitability or fitness for a particular purpose or use. In no event shall any BWR Party be liable to any one for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of any part of the Rating Rationales and/or Rating Reports even if advised of the possibility of such damages. However, BWR or its associates may have other commercial transactions with the company/entity. BWR and its affiliates do not act as a fiduciary.

BWR keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of the respective activity. As a result, certain business units of BWR may have information that is not available to other BWR business units. BWR has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.

BWR clarifies that it may have been paid a fee by the issuers or underwriters of the instruments, facilities, securities etc., or from obligors. BWR's public ratings and analysis are made available on its web site, www.brickworkratings.com. More detailed information may be provided for a fee. BWR's rating criteria are also generally made available without charge on BWR's website.

This disclaimer forms an integral part of the Ratings Rationales / Rating Reports or other press releases, advisories, communications issued by BWR and circulation of the ratings without this disclaimer is prohibited.

BWR is bound by the Code of Conduct for Credit Rating Agencies issued by the Securities and Exchange Board of India and is governed by the applicable regulations issued by the Securities and Exchange Board of India as amended from time to time.