Brickwork Ratings reaffirms and withdraws the ratings for the Bank Loan Facilities of Rs. 127.50 Crs. of Rajasthan Liquors Ltd
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (06 May 2021) |
Present | ||
Fund Based | 127.00 | 127.00 | Long Term |
BWR BBB+(INC)
Downgrade |
BWR BBB +
/Stable Reaffirmed / ISSUER NOT COOPERATING# and simultaneously Withdrawn |
Non Fund Based | 0.50 | 0.50 | Short Term |
BWR A2 (INC)
Downgrade |
BWR A2 +
Reaffirmed / ISSUER NOT COOPERATING# and simultaneously Withdrawn |
Grand Total | 127.50 | 127.50 | (Rupees One Hundred Twenty Seven Crores and Fifty lakhs Only) |
The rating was due for review in May 2021 and Brickwork Ratings (BWR) took up with the issuer vide emails dated 31 March 2021 ,19 April 2021, 29 April 2021 to provide required information for review of the rating, but the issuer has not responded to our emails. However company has requested for withdrawal vide email dated 05 May 2021 and submitted the no objection certificate from SBI dated 04 May 2021 . Despite the best efforts of BWR to get the minimum required information for a review, the company has not provided the same In the absence of adequate information from the company, BWR is unable to assess its performance and ability to service its debt and maintain a valid rating. Due to non-cooperation, BWR has reviewed the rating based on best available information and reaffirmed the rating to BWR BBB+ (Stable)/A2 (ISSUER NOT COOPERATING) and simultaneously withdrew the rating as per withdrawal policy of BWR .
ABOUT THE ENTITYRajasthan Liquors Ltd (RLL) was incorporated in 1998 in Kanpur as a private limited company and was subsequently converted into a public limited company (unlisted) in 2010. RLL operates two IMFL bottling plants at Dera Bassi (Punjab) and Jaipur (Rajasthan). The company has also set-up a zero discharge, ecosmart grain-based distillery at its Dera Bassi plant with a capacity to process 90-110 KLPD of ENA. The company also gets Distillers Dry Grains and Soluble (DDGS) and CO2 as by-products. The company has also signed a franchisee agreement with USL for manufacturing and marketing some of its products in Rajasthan. Under a strategic move and towards diversification, RLL executed a merger with an edible oils group company and named it as Aarti Oils (a unit of Rajasthan Liquors Limited). Aarti Oils manufactures vegetable oil and other by-products through its high-capacity plant and machinery of the solvent and refinery Plant is in Rania, Kanpur Dehat .The company has recently, in FY20, entered the exclusive rights of distribution for Sula, Amrut and Bira brands in Rajasthan. The company has already entered agreements with these companies
RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)Facilities | Current Rating (2021) | 2021 (History) | 2020 | 2019 | 2018 | ||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating | Date | Rating |
Fund Based | LT | 127.00 |
BWR BBB+/Stable
(Reaffirmed / ISSUER NOT COOPERATING# and simultaneously Withdrawn) |
06May2021 |
BWR BBB+(INC)
(Downgrade) |
06May2020 |
BWR A- (Stable)
(Assignment) |
03Jan2019 |
BWR BBB+ (Non acceptance)
(Assignment) |
15Feb2018 |
BWR BBB+ (Stable), Non Acceptance
(Assignment) |
Non Fund Based | LT | NA |
NA
|
NA |
NA
|
NA |
NA
|
NA |
NA
|
15Feb2018 |
BWR A2 (Non Acceptance)
(Assignement) |
Non Fund Based | ST | 0.50 |
BWR A2+
(Reaffirmed / ISSUER NOT COOPERATING# and simultaneously Withdrawn) |
06May2021 |
BWR A2 (INC)
(Downgrade) |
06May2020 |
BWR A2+
(Assigment) |
03Jan2019 |
BWR A2(Non acceptance)
(Assignment) |
NA |
NA
|
Grand Total | 127.50 | (Rupees One Hundred Twenty Seven Crores and Fifty 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.
Hyperlink/Reference to applicable CriteriaAnalytical Contacts | |
---|---|
Karan Ahluwalia Senior Rating Analyst Board : +91 11 2341 2232 karan.a@brickworkratings.com |
Tanu Sharma Director - Ratings tanusharma@brickworkratings.com |
1-860-425-2742 | media@brickworkratings.com |
SL.No. | Type Of Facilities | Long Term(Rs.Crs.) | Short Term(Rs.Crs.) | Total(Rs.Crs.) | ||
---|---|---|---|---|---|---|
1 | Cash CreditSanctioned | 110.00 | _ | 110.00 | ||
2 | Term LoanSanctioned | 17.00 | _ | 17.00 | ||
3 | Bank GuaranteeSanctioned | _ | 0.50 | 0.50 | ||
Total | 127.00 | 0.50 | 127.50 | |||
TOTAL (Rupees One Hundred Twenty Seven Crores and Fifty lakhs Only) |
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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 11,400 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. BWR has its corporate office in Bengaluru and a country-wide presence with its offices in Ahmedabad, Chandigarh, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi along with representatives in 150+ locations.
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