RATING RATIONALE
08Mar2023

Cineline India Ltd

Brickwork Ratings downgrades the rating and continues the rating in the 'Issuer Not Cooperating' Category for the Bank Loan Facilities of Rs. 171.60 Crs. of Cineline India Ltd based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(08 Dec 2021)
Present
Fund Based 171.60 171.60 Long Term BWR BB+/Negative
Downgrade/ISSUER NOT COOPERATING*
BWR BB - /Stable
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
Grand Total 171.60 171.60 (Rupees One Hundred Seventy One 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
*Issuer did not cooperate; based on best available information.


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

In view of the non-availability of information and lack of cooperation from ‘Cineline India Ltd.’ Brickwork Ratings has downgraded the long term rating to “BWR BB- / Stable'' and continued the rating in the “Issuer Not Cooperating” category, based on best available information as the Issuer did not cooperate.

The lenders/investors may note to exercise due caution while using the above ratings which mention  "Issuer  Not  Cooperating",  since the rating lacks any projections or forward looking component as they are arrived at based on best available information without any management/banker's interaction.

The rating was due for review. BWR took up with the company recently over emails and through telephone calls to obtain the required information. Despite the best efforts of BWR to get at least the minimum required information for a review,  the entity has not provided the same. 

Thus, due to lack of management cooperation to furnish adequate information about the company's performance despite follow up, coupled with its non submission of NDS, BWR is unable to assess its financial performance or its ability to service its debt and maintain a valid rating. Accordingly, the rating has been downgraded and continued in the “Issuer Not Cooperating” category. The rating downgrade is based on the lack of up-to-date information on the company’s performance.

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 possible deterioration in the credit quality of the rated entity arising from its non-transparency withholding of information required for a review of the rating.

ABOUT THE ENTITY

Cineline India Limited [Erstwhile Cineline Entertainment (India) Private Limited (CIL or "The Comany"), incorporated in 2002, is primarily engaged in the business of building, owning, and operating multiplexes, theaters, and entertainment centers. Over the years, the CIL has moved from the ownership model to lease rentals, with commercial premises located in Boomerang, Mumbai, units in Nagpur’s Eternity Mall apart from the nine theatres leased out to PVR Cinemas. CIL is part of the Kanakia group having a presence in real estate, education, and hospitality verticals. The Company’s major source of income is the rentals received from the commercial spaces across three verticals viz. entertainment, commercial, and retail. Lease received from theaters leased to PVR cinemas forms a substantial part of the total lease received. CIL also owns two windmills at Viswada (Gujarat) and Revangaon (Maharashtra) with a power generation capacity of 0.60 MWA and 1.60 MWA respectively. The power generated is sold to the State Government and forms part of the revenue reported by the Company. The Company has a fully owned subsidiary Transquare Realty Private Limited.

KEY FINANCIAL INDICATORS

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

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

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 171.60
BWR BB-/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
NA
NA
08Dec2021
BWR BB+Negative
(Downgrade/ISSUER NOT COOPERATING*)
16Jul2020
BWR BBB+Negative
(Reaffirmed with revision in outlook)
0.00
NA
NA
NA
NA
NA
16Mar2020
BWR BBB+Stable
(Assigned on standalone basis)
Grand Total 171.60 (Rupees One Hundred Seventy One 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

Soubhagya Ranjan Kahalsingh

Senior Rating Analyst Board : +91 80 4040 9940 soubhagya.rs@brickworkratings.com

RamaKrishna

Director - Ratings ramakrishna@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Cineline India 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 Aditya Birla Finance Limited Term LoanOut-standing 171.60 _ 171.60
Total 171.60 0.00 171.60
TOTAL (Rupees One Hundred Seventy One Crores and Sixty lakhs Only)
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