RATING RATIONALE
13Jan2023

Gravita India Ltd.

Brickwork Ratings downgrades the long term ratings and short term ratings for the Bank Loan Facilities of Rs. 295.23 Crs. of Gravita India Ltd. based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(14 Oct 2021)
Present
Fund Based 257.33 257.33 Long Term BWR A/Stable
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BWR BBB + /Stable
ISSUER NOT COOPERATING* /Downgrade
Non Fund Based 10.00 10.00 Long Term BWR A/Stable
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BWR BBB + /Stable
ISSUER NOT COOPERATING* /Downgrade
27.90 27.90 Short Term BWR A2+
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BWR A2
ISSUER NOT COOPERATING* /Downgrade
Grand Total 295.23 295.23 (Rupees Two Hundred Ninety Five Crores and Twenty Three 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 for the bank loan facilities of Gravita India Limited was due for review in October 2022. Brickwork Ratings (BWR) had taken up with the company through emails and telephonic communication for providing the required information for the review. Despite the best efforts of BWR to get at least the minimum required information for a review, the company did not provide the same.  In the absence of adequate information and No Default statement received till November 2022, BWR is unable to assess the company’s financial performance and its ability to service its debt and maintain a valid rating. Further, BWR had sent out for feedback from all the lenders out of which it had received response over phone from only one of them stating that the account was satisfactory.

Hence, on account of inadequate information and lack of management cooperation, BWR has downgraded both the long term and short term rating to BWR BBB+ Stable / A2 and categorized the ratings under “Issuer Not Cooperating” for the bank loan facilities amounting to Rs. 295.23 Crs of Gravita India Limited.

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 information required for a review of the rating reflecting weak corporate governance.

ABOUT THE ENTITY

Gravita India Limited (GIL) is a listed public limited company, incorporated in 1992 by Mr. M.P. Agrawal and Mr. Rajat Agrawal. GIL is majorly engaged in the recycling of lead and manufacturing of lead-based products. GIL presently runs four units - Unit I and Unit III are located at Jaipur, Unit II in Gandhidham (Gujarat) and Unit IV in Chittor (Andhra Pradesh). The total installed capacity of the said units is around 106,819 MTPA. Its aluminium recycling unit was set up at Phagi (Jaipur) during FY17 with a total installed capacity of 12,000 MTPA and the Plastics division was set up in FY19 with a total installed capacity of 12000 MTPA. GIL also provides turnkey solutions for the development of plant & machinery for lead manufacturing units.

 

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

NIL.

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2023) 2022 2021 2020
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 257.33
BWR BBB+/Stable
(ISSUER NOT COOPERATING* /Downgrade)
NA
NA
04Jan2021
BWR BWR A-Stable
(Reaffirmed)
18Sep2020
BWR BWR A-Stable
(Reaffirmed)
0.00
NA
NA
NA
14Oct2021
BWR AStable
(Upgrade)
NA
NA
Non Fund Based LT 10.00
BWR BBB+/Stable
(ISSUER NOT COOPERATING* /Downgrade)
NA
NA
04Jan2021
BWR BWR A-Stable
(Assignment)
NA
NA
0.00
NA
NA
NA
14Oct2021
BWR AStable
(Upgrade)
NA
NA
Non Fund Based ST 27.90
BWR A2
(ISSUER NOT COOPERATING* /Downgrade)
NA
NA
04Jan2021
BWR BWR A2
(Reaffirmed)
18Sep2020
BWR BWR A2
(Reaffirmed)
0.00
NA
NA
NA
14Oct2021
BWR A2+
(Upgrade)
NA
NA
Grand Total 295.23 (Rupees Two Hundred Ninety Five Crores and Twenty Three lakhs Only)
Rating Advisory, as on 27Oct2022
Press Release, as on 27Oct2022
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.

Hyperlink/Reference to applicable Criteria
Analytical Contacts

Suma Giridhara

Rating Analyst Board : +91 80 4040 9940 suma.g@brickworkratings.com

Ravi Rashmi Dhar

ravi.d@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Gravita India 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 Bandhan Bank Term LoanSanctioned 12.94 _ 12.94
2 Canara Bank Cash CreditSanctioned 10.10 _ 10.10
3 Canara Bank Covid -19 Emergency Line CreditSanctioned 0.44 _ 0.44
4 Canara Bank GECLSanctioned 9.60 _ 9.60
5 Canara Bank ILC/FLC/BGSanctioned _ 1.40 1.40
6 ICICI Bank Standby line of Credit (SLC)Sanctioned 10.00 _ 10.00
7 ICICI Bank Cash CreditSanctioned 7.00 _ 7.00
8 Jammu and Kashmir Bank Cash CreditSanctioned 8.75 _ 8.75
9 Jammu and Kashmir Bank Covid -19 Emergency Line CreditSanctioned _ _ 0.00
10 Punjab National Bank Covid -19 Emergency Line CreditSanctioned 1.76 _ 1.76
11 Punjab National Bank Term LoanSanctioned 0.40 _ 0.40
12 Punjab National Bank Cash CreditSanctioned 39.00 _ 39.00
13 Punjab National Bank GECLSanctioned 8.86 _ 8.86
14 State Bank Of India (SBI) ILC/FLC/BGSanctioned _ 23.00 23.00
15 State Bank Of India (SBI) Cash CreditSanctioned 102.00 _ 102.00
16 State Bank Of India (SBI) GECLSanctioned 13.35 _ 13.35
17 State Bank Of India (SBI) Covid -19 Emergency Line CreditSanctioned 5.70 _ 5.70
18 UCO Bank Covid -19 Emergency Line CreditSanctioned 1.36 _ 1.36
19 UCO Bank Cash CreditSanctioned 20.50 _ 20.50
20 UCO Bank ILC/FLC/BGSanctioned _ 3.50 3.50
21 Union Bank of India Covid -19 Emergency Line CreditSanctioned 0.82 _ 0.82
22 United Bank of India Cash CreditSanctioned 14.75 _ 14.75
Total 267.33 27.90 295.23
TOTAL (Rupees Two Hundred Ninety Five Crores and Twenty Three lakhs Only)
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