RATING RATIONALE
09Feb2024

Hindprakash Chemicals Pvt. Ltd. (erstwhile Hindprakash Tradelink Pvt. Ltd.)

Brickwork Ratings downgrades the ratings for the Bank Loan Facilities of Rs. 168.40 Crs. of Hindprakash Chemicals Pvt. Ltd. (erstwhile Hindprakash Tradelink Pvt. Ltd.) based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(10 Nov 2022)
Present
Fund Based 127.15 127.15 Long Term BWR BBB+/Stable
Reaffirmation
BWR BBB - /Stable
ISSUER NOT COOPERATING* /Downgrade
(22.00) (22.00) Short Term BWR A2
Reaffirmation
BWR A3
ISSUER NOT COOPERATING* /Downgrade
(7.00) (7.00)
(0.00) (0.00)
(5.50) (5.50)
(6.00) (6.00)
(2.50) (2.50)
(3.50) (3.50)
Non Fund Based 41.25 41.25 Short Term BWR A2
Reaffirmation
BWR A3
ISSUER NOT COOPERATING* /Downgrade
(4.00) (4.00)
(0.75) (0.75)
Grand Total 168.40 168.40 (Rupees One Hundred Sixty Eight Crores and Forty 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

Rating Action : Downgraded and migrated to ‘Issuer Not Cooperating’ Category due to information insufficiency and lack of management cooperation.

Brickwork Ratings (BWR) has previously reaffirmed the long-short term ratings to BWR BBB+/Stable and BWR A2 for the bank loan facilities of Rs.168.40Crs of Hindprakash Chemicals Pvt Ltd. on 10 November, 2022.

The rating was due for an annual review in November 2023. BWR took up with the issuer to provide the required information for review of the rating via emails apart from telephone calls. Despite repeated reminders, the company has not submitted any information/documents as required for review of ratings. Further, the company has not submitted a monthly “No Default Statement” (NDS) as required by regulatory guidelines. Thus, on account of lack of management cooperation, absence of adequate information, surveillance mandate, and NDS as per extant guidelines, BWR is unable to assess its performance and ability to service its debt and maintain a valid rating. Hence, based on the best available information, BWR has downgraded the ratings to BWR BBB-/Stable and BWR A3 and migrated the ratings to the ISSUER NOT COOPERATING* category.  

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 the best available information without any management interaction.

LIMITATIONS OF THE RATING

Information availability risk is a key factor in the assessment of credit risk and non-cooperation by the issuer to provide required information for a review of the assigned rating may also be accompanied by financial stress. Users of the credit ratings should therefore take into account the possible deterioration in the credit quality of the rated entity arising from its non-transparency and withholding of information required for a review of the rating.

ABOUT THE ENTITY
Macro Economic Indicator Sector Industry Basic Industry
Commodities Chemicals Chemicals & Petrochemicals Dyes And Pigments

Hindprakash Chemicals Private Limited [Erstwhile Hindprakash Tradelinks Private Limited] (HCPL or “the Company”) was incorporated in 1972 with a registered office in Ahmedabad. The company is engaged in the trading of dyes, intermediates, auxiliaries, chemicals, etc. The company has a pan-India presence and is one of the largest stockists of multi-application dyes and intermediates with the strategic locational advantage of the SEZ warehousing unit at Kandla Special Economic Zone, Gandhidham Gujarat. 

The company has various international connections for procuring and supplying products to some of the big international players. HCPL has started two units i.e. SEZ Trading Unit and SEZ Warehousing unit at Kandla Special Economic zone(KASEZ), Gandhidham Gujarat. Further, the company has also opened a Branch in Ras Al Khaimah Free Trade Zone, UAE. 

The company mainly sells to textile processing companies and factories. HCPL also provides auxiliary services including sourcing, logistics, laboratory testing, etc. The company has undertaken to manufacture of a chemical LABSA used in soaps & detergents with an installed capacity of 18000 metric tonnes per annum. 

The company is promoted by Mr. Om Prakash Mangal and his son Mr. Sanjayprakash Mangal along with other family members. Further, the day-to-day operations of the company are being handled by Mr. Sanjayprakash O. Mangal and Mr. Santosh Narayan Nambiar among others. The management has more than two decades of experience in the chemical industry. 

The company is the flagship company of the Hindprakash group engaged in the chemical business for the last eight decades. The group has been in the chemical business for more than three decades and is one of the largest trading houses in the country for dyes intermediates, textile auxiliaries, bulk chemicals, and multi-utility dyes. 

 

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

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

There is no non-cooperation with other CRAs.

ANY OTHER INFORMATION

Nil

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2024) 2023 2022 2021
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 127.15
BWR BBB-/Stable
(ISSUER NOT COOPERATING* /Downgrade)
NA
NA
10Nov2022
BWR BBB+Stable
(Reaffirmation)
23Jul2021
BWR BBB+Stable
(Reaffirmation)
FB SubLimit ST (22.00)
BWR A3
(ISSUER NOT COOPERATING* /Downgrade)
NA
NA
10Nov2022
BWR A2
(Reaffirmation)
23Jul2021
BWR A2
(Upgrade)
FB SubLimit ST (7.00)
BWR A3
(ISSUER NOT COOPERATING* /Downgrade)
NA
NA
NA
NA
NA
NA
FB SubLimit ST (5.50)
BWR A3
(ISSUER NOT COOPERATING* /Downgrade)
NA
NA
NA
NA
NA
NA
FB SubLimit ST (6.00)
BWR A3
(ISSUER NOT COOPERATING* /Downgrade)
NA
NA
NA
NA
NA
NA
FB SubLimit ST (2.50)
BWR A3
(ISSUER NOT COOPERATING* /Downgrade)
NA
NA
NA
NA
NA
NA
FB SubLimit ST (3.50)
BWR A3
(ISSUER NOT COOPERATING* /Downgrade)
NA
NA
NA
NA
NA
NA
Non Fund Based ST 41.25
BWR A3
(ISSUER NOT COOPERATING* /Downgrade)
NA
NA
10Nov2022
BWR A2
(Reaffirmation)
23Jul2021
BWR A2
(Upgrade)
NFB SubLimit ST (4.00)
BWR A3
(ISSUER NOT COOPERATING* /Downgrade)
NA
NA
NA
NA
NA
NA
(0.75)
BWR A3
(ISSUER NOT COOPERATING* /Downgrade)
NA
NA
NA
NA
NA
NA
Grand Total 168.40 (Rupees One Hundred Sixty Eight Crores and Forty 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

Akanksha

Senior Rating Analyst akanksha@brickworkratings.com

Ravi Rashmi Dhar

Associate Director - Ratings ravi.d@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Hindprakash Chemicals Pvt. Ltd. (erstwhile Hindprakash Tradelink Pvt. 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 Central Bank of India Cash CreditSanctioned 16.00 _ 16.00
Sub-Limit (EPC/FBD) Sanctioned (2.50)
Sub-Limit (ILC/FLC) Sanctioned (6.00)
2 Central Bank of India Cash CreditProposed _ _ 0.00
3 Central Bank of India Cash CreditProposed 7.50 _ 7.50
4 Central Bank of India Bank GuaranteeProposed _ 1.25 1.25
5 Central Bank of India GECLSanctioned 1.29 _ 1.29
6 Central Bank of India GECLSanctioned 0.63 _ 0.63
7 Central Bank of India ILC/FLCSanctioned _ 12.15 12.15
Sub-Limit (Forward Contract / LER) Sanctioned (0.75)
8 Central Bank of India ILC/FLCProposed _ _ 0.00
9 Punjab National Bank ILC/FLCSanctioned _ 11.00 11.00
Sub-Limit (Forward Contract limit / LER) Sanctioned (3.50)
10 Punjab National Bank GECLSanctioned 3.23 _ 3.23
11 Punjab National Bank GECLSanctioned 3.50 _ 3.50
12 Punjab National Bank Term LoanProposed 27.50 _ 27.50
13 Punjab National Bank Cash CreditSanctioned 34.00 _ 34.00
Sub-Limit (EPC/FBD) Sanctioned (7.00)
Sub-Limit (ILC/FLC) Sanctioned (22.00)
14 State Bank Of India (SBI) Cash CreditSanctioned 30.00 _ 30.00
Sub-Limit (EPC/ FBD) Sanctioned (5.50)
Sub-Limit (ILC/FLC) Sanctioned (0.00)
15 State Bank Of India (SBI) Cash CreditProposed _ _ 0.00
16 State Bank Of India (SBI) GECLSanctioned 2.20 _ 2.20
17 State Bank Of India (SBI) GECLSanctioned 1.30 _ 1.30
18 State Bank Of India (SBI) ILC/FLCSanctioned _ 16.85 16.85
Sub-Limit (Forward Contract/ LER) Sanctioned (4.00)
19 State Bank Of India (SBI) ILC/FLCProposed _ _ 0.00
Total 127.15 41.25 168.40
TOTAL (Rupees One Hundred Sixty Eight Crores and Forty lakhs Only)
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