RATING RATIONALE
29Nov2022

Auroma Coke Ltd.

Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 18.65 Crs. of Auroma Coke Ltd. and retains 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 Sep 2021)
Present
Fund Based 12.15 12.15 Long Term BWR C
Reaffirmation/ISSUER NOT COOPERATING*
BWR C
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Non Fund Based 6.50 6.50 Short Term BWR A4
Reaffirmation/ISSUER NOT COOPERATING*
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Grand Total 18.65 18.65 (Rupees Eighteen Crores and Sixty Five 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 reaffirmed the rating for the long term bank loan facilities of Rs. 12.15 Crs. of Auroma Coke Limited at BWR C, and their short term bank loan facilities of Rs.6.50 Crs at BWR A4, (aggregate rated amount Rs.18.65 Crs.) while retaining them in the Issuer Not Cooperating category, based on best available information, as the issuer did not cooperate. 

The rating fell due for review in 15 September , 2022. Despite repeated follow up over emails and telephone calls thereafter, the client has not shared with BWR, any information with respect to its business, financials or any other updates and documentation to proceed with the rating review exercise. The company has also not been providing the NDS since April 2018. Emails were also sent to the banker for feedback regarding the conduct of the account, but without success. Phone calls to the banker were also not answered. From the information available about the company in public domain it appears that the performance of the company is gradually deteriorating. Due to continued lack of management cooperation on the part of the client and their lack of response to our requests to provide at least the minimum required information for a review, coupled with non submission of NDS and lack of banker feedback BWR is not in a position to correctly assess their current financial status, or their ability to service their debts and maintain a valid rating. Therefore, to comply with extant regulatory guidelines in this regard, the rating is reaffirmed and retained in the “Issuer Not Cooperating” category, based on best available information as the Issuer did not cooperate.

LIMITATIONS OF THE RATING

Information availability risk is a key factor in the assessment of credit risk as generally, noncooperation 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

Auroma Coke Limited(ACL), established in the year 1977, has been promoted by Shri Vimal K. Tulsyan and sons. The company has more than 50 years of experience in the coal and coke industry. ACL has been engaged in production of washed coal and quality metallurgical coke. The company has a coal washery of 1.0 million tonne per annum capacity. It also has the facility of one coal slurry washery of 0.30 million tonne per annum capacity under its sister concern M/s ACM Fuels Limited. All these plants are situated at Grand Trunk Road, Govindpur in the district of Dhanbad, Jharkhand. It is a listed company.

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 20-21
(Audited)
FY 19-20
(Audited)
Operating Revenue Rs.Crs. 8.80 16.49
EBITDA Rs.Crs. -0.46 0.11
PAT Rs.Crs. 0.08 0.25
Tangible Net Worth Rs.Crs. 12.62 12.51
Total Debt/TNW Times 1.61 1.35
Current Ratio Times 2.86 4.16
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 12.15
BWR C
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
NA
NA
15Sep2021
BWR C
(Reaffirmation/ISSUER NOT COOPERATING*)
11Aug2020
BWR C
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
Non Fund Based ST 6.50
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
NA
NA
15Sep2021
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
11Aug2020
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
Grand Total 18.65 (Rupees Eighteen Crores and Sixty Five lakhs Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - NA

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

Animesh Chaurasia

Ratings Analyst animesh.c@brickworkratings.com

Anuradha Gupta

Director - Ratings anuradha.g@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Auroma Coke 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 State Bank Of India (SBI) Bank GuaranteeSanctioned _ 2.50 2.50
2 State Bank Of India (SBI) Letter of CreditSanctioned _ 4.00 4.00
3 State Bank Of India (SBI) Asset Backed SecuritySanctioned 12.15 _ 12.15
Total 12.15 6.50 18.65
TOTAL (Rupees Eighteen Crores and Sixty Five lakhs Only)
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