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.
ParticularsFacilities** | 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) |
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.
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.
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
Creadit Rating Agency | Status and Reason for Non-Cooparation | Date of Press Release |
---|---|---|
IVR | Status under the non-cooperation category as the company did not cooperate. | 18Mar2024 |
ACUITE | Status under the non-cooperation category as the company did not cooperate. | 26Jun2024 |
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) |
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 |
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.
Instrument | Issue Date | Amount (Rs.Crs) | Coupon Rate (%) | Maturity Date | ISIN Particulars | Complexity of the Instrument |
---|---|---|---|---|---|---|
Nil | Nil | Nil | Nil | Nil | Nil | Nil |
Name of Entity | % Ownership | Extent of consolidation | Rationale for consolidation |
---|---|---|---|
Nil | Nil | Nil | Nil |
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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.
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