RATING RATIONALE
24Apr2024

Isotex Corporation Pvt. Ltd.

Brickwork Ratings downgrades the long-term ratings and reaffirms the short-term rating for the Bank Loan Facilities of Rs. 10.00 Crs. of Isotex Corporation Pvt. Ltd. and continues the ratings in the ISSUER NOT COOPERATING category, based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(17 Mar 2023)
Present
Fund Based 7.00 7.00 Long Term BWR B/Stable
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
BWR B - /Stable
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
Non Fund Based 3.00 3.00 Short Term BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Grand Total 10.00 10.00 (Rupees Ten Crores 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

BWR has downgraded the long-term rating to BWR B-(Stable) and Reaffirmed the short-term rating to BWR A4 of Isotex Corporation Pvt. Ltd and placed under the 'Issuer Not Cooperating' category based on the best available information as the Issuer did not Cooperate.

BWR had initially assigned the long-term rating to BWR BB- (Stable) and the short-term rating to BWR A4 for the bank loan facilities as of 04.01.2021.  On 19.03.2022 the long-term rating was downgraded to BWR B+ (Stable) and reaffirmed  the short-term rating to BWR A4 and placed under the 'Issuer Not Cooperating' category.  On 17.03.2023 the long-term rating was downgraded to BWR B (Stable) and reaffirmed the short-term rating to BWR A4 and continued to be placed under the 'Issuer Not Cooperating' category. 

The rating fell due for review in March 2024. BWR took up with the issuer consistently to provide the required information over emails apart from telephone communication, but no response has been received from the client. Further, BWR is unable to reach the banker, thus the banker’s feedback regarding the conduct of the account is not available. The company has also not submitted the NDS regularly. Despite the best efforts of BWR to get at least the minimum required information for the review, the entity has not provided the same. In the absence of adequate information from the company, BWR is unable to assess the company’s financial performance and its ability to service its debt and maintain a valid rating. Hence, based on best available information, continued lack of management cooperation, non-submission of NDS, and lack of banker’s feedback, BWR has downgraded the long-term rating and reaffirmed the short-term rating and continued the ratings under Issuer Not Cooperating* category, as the Issuer did not cooperate.

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

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

ABOUT THE ENTITY
Macro Economic Indicator Sector Industry Basic Industry
Energy Oil, Gas & Consumable Fuels Gas Gas Transmission/Marketing

Isotex Corporation Pvt Ltd established in 1978 as a partnership firm & later in 2012 constitution has been changed to Pvt Ltd. Company is based in Ahmedabad, manufactures Oil & Gas Fired Steam Boiler, Solid Fuel Fired Thermic Fluid Heaters, Thermo Steam generator & manufacturing processes with imported machines for production with quality matching European standards. The company provides services all over India and also majorly exports in countries like Bangladesh, Dubai, Sri Lanka & Africa. The directors of the company are Karan Rajeshbhai Vadodaria, Siddharth Rajeshbhai Vadodaria, and Chhayaben Vadodaria.

Note: As per information available with BWR in Jan 2021. 
 

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

There is no Non Co-operation with other CRAs.
 

ANY OTHER INFORMATION

NA

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 7.00
BWR B-/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
17Mar2023
BWR BStable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
19Mar2022
BWR B+Stable
(ISSUER NOT COOPERATING*/Downgraded)
04Jan2021
BWR BB-Stable
(Assignment)
Non Fund Based ST 3.00
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
17Mar2023
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
19Mar2022
BWR A4
(ISSUER NOT COOPERATING*/Reaffirmed)
04Jan2021
BWR A4
(Assignment)
Grand Total 10.00 (Rupees Ten Crores 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

Urvi Shah

Rating Analyst urvi.s@brickworkratings.com

V.K.Kukreja

Associate Director - Ratings Board : +91 11 2341 2232 kukreja.vk@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Isotex Corporation 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 HSBC Over DraftSanctioned 7.00 _ 7.00
2 HSBC Bank GuaranteeSanctioned _ 3.00 3.00
Total 7.00 3.00 10.00
TOTAL (Rupees Ten Crores Only)
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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 11,560 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.

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