RATING RATIONALE
29Oct2024

Ainaj Industries

Brickwork Ratings reaffirms the long term ratings and continued under the ‘Issuer Not Cooperating’ category for the Bank Loan Facilities of Rs. 17.00 Crs. of Ainaj Industries based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(27 Oct 2023)
Present
Fund Based 17.00 17.00 Long Term BWR C
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
BWR C
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Grand Total 17.00 17.00 (Rupees Seventeen 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 reaffirmed the long term rating at BWR C and continued under the "Issuer Not Cooperating" category based on the available information.

BWR had initially assigned the long term rating to BWR B+ (Stable) for the bank loan facilities as of 12 Jul 2017. On 28 Jun 2018, the long term rating was reaffirmed at BWR B+ (Stable). The rating was due for a review in Jun 2019. On 21 Sep 2020, the long term rating was downgraded to BWR B (Stable) and placed under the ‘Issuer Not Cooperating’ category. On 18 Oct 2021, the long term rating was downgraded to BWR B- (Stable) and continued under the ‘Issuer Not Cooperating’ category. On 19 Oct 2022, the long term rating was downgraded to BWR C and continued under the ‘Issuer Not Cooperating’ category. On 27 Oct 2023, the long term rating was reaffirmed at BWR C and continued under the ‘Issuer Not Cooperating’ category.

Going forward, BWR took up with the issuer consistently to provide 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 ; the banker's feedback regarding the conduct of the account is not available. 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 firm, BWR is unable to assess the firm's financial performance and its ability to service its debt and maintain a valid rating.

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 co-operation 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 withholdings of the information required for a review of the rating.

ABOUT THE ENTITY
Macro Economic Indicator Sector Industry Basic Industry
Fast Moving Consumer Goods Fast Moving Consumer Goods Agricultural Food & other Products Other Agricultural Products

Ainaj Industries was established in 1997 and based in Radhanpur, Gujarat, was set up as a partnership firm by Mr. Dayar Thakkar, Mr. Vasant Thakkar, Mr. Suresh Thakkar, & Mr. Rajesh Thakkar. The firm is engaged in cotton ginning and pressing with its sole manufacturing facility.

Note- This is the update as available with BWR.

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
CRISILCRISIL B /Stable and ISSUER NOT COOPERATING15May2024

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 17.00
BWR C
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
27Oct2023
BWR C
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
19Oct2022
BWR C
(ISSUER NOT COOPERATING* /Downgrade)
18Oct2021
BWR B-Stable
(ISSUER NOT COOPERATING* /Downgrade)
Grand Total 17.00 (Rupees Seventeen Crores Only)
Hyperlink/Reference to applicable Criteria
Analytical Contacts

Deepak Ahuja

Rating Analyst deepakahuja@brickworkratings.com

V.K.Kukreja

Associate Director - Ratings Board : +91 11 2341 2232 kukreja.vk@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Ainaj Industries
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 Bank of Baroda Cash CreditSanctioned 17.00 _ 17.00 Simple##
Total 17.00 0.00 17.00
TOTAL (Rupees Seventeen Crores 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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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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