RATING RATIONALE
09Jul2024

Khaitan Winding Wire Pvt. Ltd.

Brickwork Ratings downgrades the long-term ratings and reaffirms the short-term ratings for the Bank Loan Facilities of Rs. 52.36 Crs. of Khaitan Winding Wire 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
(15 Jun 2023)
Present
Fund Based 41.36 41.36 Long Term BWR BB/Stable
ISSUER NOT COOPERATING*/Downgraded
BWR BB - /Stable
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
Non Fund Based 11.00 11.00 Short Term BWR A4
ISSUER NOT COOPERATING*/Downgraded
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Grand Total 52.36 52.36 (Rupees Fifty Two Crores and Thirty Six 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

Brickwork Ratings has downgraded the ratings of the long-term bank loan facilities for Rs.41.36 Crs of  Khaitan Winding Wire Pvt. Ltd to BWR BB-/Stable from BWR BB/Stable and the reaffirming rating for their short-term bank loan facilities for Rs. 11.00 crores to BWR A4 (aggregate rated amount Rs.52.36 crores) and continued the ratings into “ISSUER NOT COOPERATING” category, based on best available information as the Issuer did not cooperate.

The rating was due for review on 15 June 2024. BWR took up with the issuer consistently to provide the required information over emails apart from telephonic 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, non-availability of information on continuation/curing of default, continued lack of management cooperation, non-submission of NDS, and lack of banker’s feedback, BWR has reaffirmed the long-term and short-term rating and continued the ratings Issuer Not Cooperating* category, as the Issuer did not cooperate.

In the absence of management cooperation on the part of the company to provide adequate information/documents for a review within the required timelines despite follow-up, coupled with non-submission of NDS and lack of banker's feedback, BWR is unable to assess the company's current financial performance or its ability to service its debt and maintain a valid rating. Accordingly, keeping in view the regulatory guidelines in this regard, the long-term rating is downgraded to BWR BB-/Stable, and the short-term rating is reaffirmed to BWR A4 and continued the ratings into “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 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
Industrials Capital Goods Industrial Products Aluminium, Copper & Zinc Products

Khaitan Winding Wire Private Limited (KWWPL) was incorporated on 22/2/1989 with its registered office at P-38, India Exchange Place, Kolkata. It is into the manufacture of enamelled winding wire made of copper. In 2014-15, the company established a new aluminium plant and diversified into manufacturing of  aluminium wires. The manufacturing plant is located in Jalan Complex, Argori, Howrah (West Bengal). The Company was promoted by Sri Ajit Kumar Khaitan and Sri Pradeep Kumar Khaitan.

Note: As per information available with BWR in March 2022.
 

 

 

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

Creadit Rating AgencyStatus and Reason for Non-CooparationDate of Press Release
IVRStatus under the non-cooperation category as the company did not cooperate.18Mar2024
ACUITEStatus under the non-cooperation category as the company did not cooperate.26Jun2024

ANY OTHER INFORMATION

Not applicable.

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 41.36
BWR BB-/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
15Jun2023
BWR BBStable
(ISSUER NOT COOPERATING*/Downgraded)
25Mar2022
BWR BBB- Stable
(Reaffirmation)
10Feb2021
BWR BBB- Stable
(Reaffirmation)
Non Fund Based ST 11.00
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
15Jun2023
BWR A4
(ISSUER NOT COOPERATING*/Downgraded)
25Mar2022
BWR A3
(Reaffirmation)
10Feb2021
BWR A3
(Reaffirmation)
Grand Total 52.36 (Rupees Fifty Two Crores and Thirty Six lakhs Only)
Hyperlink/Reference to applicable Criteria
Analytical Contacts

Urvi Shah

Rating Analyst urvi.s@brickworkratings.com

Ravi Rashmi Dhar

Associate Director - Ratings ravi.d@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Khaitan Winding Wire 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.) Complexity of the Instrument
1 Standard Chartered Bank Term LoanSanctioned 2.50 _ 2.50 Simple##
2 Standard Chartered Bank Cash CreditSanctioned 8.50 _ 8.50 Simple##
3 Standard Chartered Bank Bank GuaranteeSanctioned _ 6.00 6.00 Simple##
4 Standard Chartered Bank Letter of CreditSanctioned _ 5.00 5.00 Simple##
5 Standard Chartered Bank Covid -19 Emergency Line CreditSanctioned 1.70 _ 1.70 Simple##
6 Standard Chartered Bank GECLSanctioned 0.85 _ 0.85 Simple##
7 State Bank Of India (SBI) GECLSanctioned 2.11 _ 2.11 Simple##
8 State Bank Of India (SBI) GECLSanctioned 3.20 _ 3.20 Simple##
9 State Bank Of India (SBI) Letter of CreditSanctioned _ _ 0.00 Simple##
10 State Bank Of India (SBI) Cash CreditSanctioned 22.50 _ 22.50 Simple##
Total 41.36 11.00 52.36
TOTAL (Rupees Fifty Two Crores and Thirty Six 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.

ANNEXURE-II
INSTRUMENT DETAILS

InstrumentIssue DateAmount (Rs.Crs)Coupon Rate (%)Maturity DateISIN ParticularsComplexity of the Instrument
NilNilNilNilNilNilNil

ANNEXURE-III
List of entities consolidated

Name of Entity% OwnershipExtent of consolidationRationale for consolidation
NilNilNilNil

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