RATING RATIONALE
04Jul2022

D&H India Limited

Brickwork Ratings downgrades the long-term ratings to BWR B-/Stable and reaffirms the short-term ratings to BWR A4 for the Bank Loan Facilities of Rs. 14.79 Crs. of D&H India Limited based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(01 Jul 2021)
Present
Fund Based 7.29 7.29 Long Term BWR B /Stable
Downgrade/ISSUER NOT COOPERATING*
BWR B - /Stable
Downgrade/ISSUER NOT COOPERATING*
Non Fund Based 7.50 7.50 Short Term BWR A4
Reaffirmation/ISSUER NOT COOPERATING*
BWR A4
Reaffirmation/ISSUER NOT COOPERATING*
Grand Total 14.79 14.79 (Rupees Fourteen Crores and Seventy Nine 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

The rating was due for a review on 01st July 2022. BWR took up with the issuer to provide required information over emails and through telephone calls dated 24.05.22, 09.06.22 and 20.06.22 . All our emails & telephonic calls remained unresponded. The client did not fulfill review of rating formalities till date or responded to any of the emails sent by BWR for requested documents/information.The company is listed on BSE and has not provided the required information for annual surveillance of the rating despite repeated follow ups, while the audited financials for FY22 have been taken from BSE website.

Further, BWR also took up with the banker to provide the required information over emails and through telephone calls dated 24.05.22, 09.06.22 and 20.06.22 & received no response Despite the best efforts of BWR to get at least the minimum required information for a review of ratings, the company has not provided the same. In the absence of adequate information from the issuer/banker, BWR is unable to assess the issuer's/Company’s financial performance and its ability to service its debt obligations and maintain a valid rating. Hence, on account of the nonsubmission of vital information and lack of management cooperation, BWR has downgraded the long-term rating to BWR B-/Stable and reaffirmed the short-term rating to BWR A4 under ISSUER NOT COOPERATING*.

Key Financial Indicators for FY21 & 22:-

TOI stands at Rs.90.73 crs in FY22 vs Rs.67.62 crs in FY21. PAT stands at Rs.2.42 crs in FY22 vs Rs.-0.75 in FY21. TNW stands at Rs.30.88 crs in FY22 vs Rs.28.60 crs in FY21. Total debt/TNW stands at  0.65x times vs 0.51x times. OPM and NPM stand at 5.28% & 2.66% in FY22 vs 5.28% & 2.98% in FY21 respectively. ISCR & DSCR stands at 3.39x times & 2.69x times in FY22 vs 1.46x times & 1.70x times in FY21 respectively.TOL/TNW stands at 1.12x times in FY22 vs 0.94x times in FY21.

 

 

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

ABOUT THE ENTITY

 

D&H Ltd was incorporated as Private Limited Company on 30th march 1985 and converted into a public limited company on August 24,1993 by Mr. H.H. Melwani. Company is engaged in the manufacture of welding electrodes, specialty electrodes, submerged ARC Fluxes , copper coated and CO2 wire. The company manufactures a wide range of welding electrodes with an installed capacity of 8000 MTPA at Indore & Dhar. D & H Welding Electrodes India Limited commenced their welding electrode production in the year 1992

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 13-14
(Audited)
FY 12-13
(Audited)
Operating Revenue Rs.Crs. 69.10 68.10
EBITDA Rs.Crs. 4.59 5.26
PAT Rs.Crs. 1.91 2.59
Tangible Net Worth Rs.Crs. 27.93 26.47
Total Debt/TNW Times 0.16 0.15
Current Ratio Times 1.33 1.66
NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

N.A

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2022) 2022 (History) 2021 2020 2019
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating Date Rating
Fund Based LT 7.29
BWR B-/Stable
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
01Jul2021
BWR B Stable
(Downgrade/ISSUER NOT COOPERATING*)
28Aug2020
BWR B+ (Stable) downgrade/ISSUER NOT COOPERATING
()
09May2019
BWR BB (Stable) downgrade/ISSUER NOT COOPERATING
()
Non Fund Based ST 7.50
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
01Jul2021
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
28Aug2020
BWR A4 Reaffirmation/ISSUER NOT COOPERATING
()
09May2019
BWR A4 downgrade/ISSUER NOT COOPERATING
()
Grand Total 14.79 (Rupees Fourteen Crores and Seventy Nine lakhs 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.

Analytical Contacts

Bhavna Vashdev Gurdasani

Ratings Analyst bhavna.g@brickworkratings.com

Sushil Kumar Chitkara

Director - Ratings Board : +91 22 2831 1426, +91 22 2831 1439 sushilkumar.c@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
D&H India Limited
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 HDFC Bank Term LoanSanctioned 1.42 _ 1.42
2 HDFC Bank Term LoanSanctioned 0.46 _ 0.46
3 HDFC Bank Cash CreditSanctioned 1.75 _ 1.75
4 HDFC Bank Bank GuaranteeSanctioned _ 0.25 0.25
5 HDFC Bank Letter of CreditSanctioned _ 4.50 4.50
6 HDFC Bank Letter of CreditSanctioned _ 2.75 2.75
7 HDFC Bank Working Capital Demand LoanSanctioned 3.66 _ 3.66
Total 7.29 7.50 14.79
TOTAL (Rupees Fourteen Crores and Seventy Nine lakhs Only)
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