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.
ParticularsFacilities** | 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) |
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 ENTITYMacro 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.
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
There is no non-cooperation with other CRAs.
ANY OTHER INFORMATIONNil
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) |
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 | |
---|---|
Akanksha Senior Rating Analyst akanksha@brickworkratings.com |
Ravi Rashmi Dhar Associate Director - Ratings ravi.d@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 | 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) |
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 RatingsBrickwork 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 11,560 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.
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.