RATING RATIONALE

23Dec2025

Asterix Reinforced Ltd.

BWR has downgraded the long-term bank loan ratings of Asterix Reinforced Ltd from BWR BBB- to BWR BB+ and revised the outlook from "Stable" to "Rating Watch with Negative Implications'. The short-term rating has also been downgraded from BWR A3 to BWR A4+.

Particulars

Facilities**	Amount (Rs.Crs.)		Tenure	Rating#
Facilities**	Previous	Present	Tenure	Previous (22 Apr 2025)	Present
Fund Based	17.74	17.74	Long Term	BWR BBB- /Stable removal from ISSUER NOT COOPERATING* category/Upgraded	BWR BB + /Rating Watch with Negative Implications Downgrade
Fund Based	5.00	5.00	Short Term	BWR A3 Assignment	BWR A4 + Downgrade
Non Fund Based	16.50	16.50	Short Term	BWR A3 removal from ISSUER NOT COOPERATING* category/Upgraded	BWR A4 + Downgrade
	(3.00)	(3.00)
	(5.00)	(5.00)
Grand Total	39.24	39.24	(Rupees Thirty Nine Crores and Twenty Four 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
Note: The rated amount and financials have been retained at the existing level owing to the non-availability of lender feedback and the absence of the latest bank statements and financial statements.

RATING ACTION / OUTLOOK

BWR has downgraded the long-term bank loan ratings of Asterix Reinforced Ltd from BWR BBB- to BWR BB+ and revised the outlook from "Stable" to "Rating Watch with Negative Implications'. The short-term rating has also been downgraded from BWR A3 to BWR A4+.

The downgrade in the rating and the revision in outlook from Stable to Rating Watch with Negative Implications are driven by the absence of feedback from the lenders, the closure of the Silvassa plant, which may adversely impact the company’s financial performance, and the non-availability of provisional and/or latest financial information as on date. The action also reflects the conditional restart order issued by the Pollution Control Board for the Murbad manufacturing facility and the associated uncertainty regarding compliance with the stipulated conditions. Notwithstanding the above, the company has been regular in submitting NDS.

Closure notices were issued by the Pollution Control authorities to both the Silvassa and Murbad units in November 2024. Subsequently, the company consolidated operations by shifting activities from the Silvassa unit to the Murbad manufacturing facility. The company has since received a conditional order for the restart of operations at the Murbad unit dated 10 January 2025. While this permits resumption of operations, there remains some uncertainty regarding compliance with the stipulated conditions, as complete approvals, consents, and No Objection Certificates from the relevant government and statutory authorities.

BWR has approached the bankers on multiple occasions to obtain feedback on the conduct of the account; however, lender feedback is still awaited.

The key monitorable factors in the near term include verifiable information regarding timely compliance with the conditions stipulated in the conditional restart order for the Murbad unit and the receipt of all requisite approvals, consents, and No Objection Certificates from the relevant regulatory and statutory authorities. In addition, lender feedback on account conduct, continued availability of banking facilities, and visibility on the company’s latest financial performance will remain key monitoring parameters.

KEY RATING DRIVERS

Credit Strengths:

Long track record of operations with experienced promoter :
ARL possesses an established track record of more than a decade of operations. Promoters have long standing experience of more than a decade in trading of Unsaturated Polyester Resins which helps the company to establish long standing relations with customers and suppliers. .
Comfortable capital structure with debt coverage indicators :
The capital structure of ARL remained comfortable with Total Debt/TNW at 1.07 times as on Dec 2024 (vis-a-vis 1.48x times as on March 2024). TNW has increased and stood at Rs.33.91 Crs in 9MFY25 as compared to Rs. 28.23 Crs in FY24, on the back of accretion of profits into the business. Debt protections metrics i.e. DSCR and ISCR have been improved from 2.74x and 1.43x in FY24 to 6.37x and 3.66x in 9MFY25. Further, the current ratio improved from 1.09x in FY24 to 1.25x in 9MFY25.
Improved scale of operations :
The scale of operations of the company has improved with y-o-y increasing TOI(Total Operating Income). TOI increased from Rs.257.77 Crores in FY23 to Rs.294.16 Crore in FY24 on back of increase in its production capacity with increase in demand from its existing and new customers. Moreover, the company has achieved TOI of Rs.239.19 Crore for 9MFY25 and around Rs.300.00 Crs in FY25.

Credit Risks:

Working capital intensive nature of operations :
The operations of Asterix Reinforced Ltd. (ARL) are inherently working capital intensive, primarily due to significant funds being tied up in inventory and receivables. This has led to elevated receivable days, which stood at 120 in FY24. However, despite the high receivables, the company has managed its payables efficiently, with payable days at around 99. As a result of better working capital management, ARL has achieved an improvement in its cash conversion cycle—from 42 days in FY23 to 27 days in FY24—indicating enhanced operational efficiency and faster realization of funds.
Susceptibility to profit margins due to volatility in raw material prices and foreign currency fluctuation :
The raw materials required for the manufacturing of unsaturated polyester Resin and SMC Moulding is Propylene Glycol, Diethylene Glycol, Phthalic Anhydride, etc. prices of which are fluctuating as per demand-supply factors with reference to crude oil prices and foreign currency fluctuation. However the same can be mitigated to extend as the company does book forward contract.
Presence in highly competitive & fragmented industry :
ARL operates in a highly fragmented market marked by the presence of a large number of players in the unorganized and organized sector, which accounts for high share of the total domestic turnover. Since the industry is highly competitive ARL has low bargaining power and as a result the company has to follows a competitive price strategy.

ANALYTICAL APPROACH - Standalone

The ratings of ARL are arrived at on a standalone basis after independent evaluation of its financial risk profile. For arriving at its ratings, BWR has applied its rating methodology as detailed in the rating criteria hyperlinks.

RATING SENSITIVITIES

Positive: Significant growth in revenue and overall improvement in operating margins to 4.5% along with net profit margins above 1.5% with sustained increase in TNW and achievement of 115% of the projected revenue.

Negative: Rating may be downgraded in case there is a deterioration in the financial risk profile and liquidity position of the company, along with a decline in net profit margins below 0.5% and a decrease in the company's TNW below Rs. 25.00 Crs

LIQUIDITY INDICATORS - Adequate

The cash and bank balance stood at Rs.0.14 Crore as on 9MFY25. The current ratio stood moderate at 1.25 times as on Dec 31, 2025. The average fund based working capital utilization stood at 81.6% for the past 9 months ended Dec 2024. Moreover, the company net accruals stood at Rs.10.76 Crore as on Dec 2024.ISCR stood at healthy position at 6.37x in 9MFY25 and 2.74x in FY24 along with healthy DSCR of 3.66x in 9MFY25 and 1.43x in FY24.

(As per rationale dated 22 April 2025)

ABOUT THE ENTITY

Macro Economic Indicator	Sector	Industry	Basic Industry
Commodities	Chemicals	Chemicals & Petrochemicals	Petrochemicals

Asterix Reinforced Limited (ARL) was originally established in 2007, under the name of “Orson Petrochemicals Limited” and changed its name to “Bombay Highpolymer Chemical Product Limited in 2009.The company (ARL) was engaged in trading of Unsaturated Polyester Resin till FY16. Subsequently, in December 2016, the company changed its name to Asterix Reinforced Limited and promoted by Mr. Pawan Drolia and Mrs. Meenu Mandelia. The company is engaged in the manufacturing of unsaturated polyester resin, Gelcoat, SMC (Sheet Moulding Compound) which its application for production of fiber reinforced plastics and filled plastic products, including sanitary-ware, tanks, pipes, gratings, and high performance components for the marine and transportation industry such as closure and body panels, fenders, boat hulls/ decks and other large glass fiber reinforced plastic articles. Unsaturated polyester resins also find uses in coatings and adhesives and the Artificial or Quartz Marble Industry.. Furthermore, the ARL designs and develops tailor-made products as per client's requirement. The company is situated at Mumbai (Headquartered office) with the manufacturing facility, located in Silvassa, Union Territories of Dadra & Nagar Haveli with production capacity of over 2000 MT per month. The major raw material required are Maleic Anhydride, Phthalic Anhydride, Styrene Monomer, Polypropylene Glycol, MP Diol, Mono Ethylene Glycol, Di Ethylene Glycol etc. and the same is procured 20% through imports from China &Taiwan and rest 80% is procured from domestic market.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 22 - 23 (Audited)	FY 23 - 24 (Audited)	FY 24 - 25 (Provisional)
Operating Revenue	Rs.Crs.	257.77	294.16	239.19
EBITDA	Rs.Crs.	8.09	10.96	15.07
PAT	Rs.Crs.	1.35	1.82	5.68
Tangible Net Worth	Rs.Crs.	26.41	28.23	33.91
Total Debt / Tangible Net Worth	Times	1.29	1.48	1.07
Current Ratio	Times	1.14	1.09	1.25

KEY COVENANTS OF THE FACILITY RATED

The terms of sanction include standard covenants normally stipulated for such facilities.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Creadit Rating Agency Status and Reason for Non-Cooparation Date of Press Release
CARE Due to non-submission of the relevant information. 05Nov2024

Creadit Rating Agency	Status and Reason for Non-Cooparation	Date of Press Release
CARE	Due to non-submission of the relevant information.	05Nov2024

ANY OTHER INFORMATION

NIL

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)

Facilities	Current Rating (2025)			2025 (History)		2024		2023		2022
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	17.74	BWR BB+/Rating Watch with Negative Implications (Downgrade)	22Apr2025	BWR BBB- Stable (removal from ISSUER NOT COOPERATING* category/Upgraded)	18Apr2024	BWR B+ Stable (Continues to be in ISSUER NOT COOPERATING* category/Downgraded)	27Feb2023	BWR BB Stable (ISSUER NOT COOPERATING* /Downgrade)	NA	NA
Fund Based	ST	5.00	BWR A4+ (Downgrade)	22Apr2025	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	16.50	BWR A4+ (Downgrade)	22Apr2025	BWR A3 (removal from ISSUER NOT COOPERATING* category/Upgraded)	18Apr2024	BWR A4 (Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)	27Feb2023	BWR A4 (ISSUER NOT COOPERATING* /Downgrade)	NA	NA
NFB SubLimit	ST	(3.00)	BWR A4+ (Downgrade)	22Apr2025	BWR A3 (removal from ISSUER NOT COOPERATING* category/Upgraded)	NA	NA	NA	NA	NA	NA
NFB SubLimit	ST	(5.00)	BWR A4+ (Downgrade)	NA	NA	NA	NA	NA	NA	NA	NA
Grand Total		39.24	(Rupees Thirty Nine Crores and Twenty Four lakhs Only)

Hyperlink/Reference to applicable Criteria

Analytical Contacts
Prajwal Biraj Rating Analyst prajwal.b@brickworkratings.com	Ravi Rashmi Dhar Director - Ratings ravi.d@brickworkratings.com
1-860-425-2742 \| media@brickworkratings.com	Customer Support \| CustSupport@brickwrokratings.com

Asterix Reinforced 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.)	Complexity of the Instrument
1		Cash Credit - Proposed	5.00	_	5.00	Simple##
2		Letter of Credit - Proposed	_	4.00	4.00	Simple##
3	Federal Bank	Derivative Limit - Sanctioned	_	1.00	1.00	Simple##
4	Federal Bank	Line of Credit - Sanctioned	_	_	0.00	Simple##
5	Federal Bank	Bill Discounted (BD) - Sanctioned	_	5.00	5.00	Simple##
6	Federal Bank	Letter of Credit - Sanctioned	_	11.50	11.50	Simple##
	Sub-Limit (Bank Guarantee) - Sanctioned		(5.00)
	Sub-Limit (LOU for Buyers Credit) - Sanctioned		(3.00)
7	Federal Bank	Term Loan - Out-standing	0.33	_	0.33	Simple##
8	Federal Bank	Term Loan - Out-standing	_	_	0.00	Simple##
9	Federal Bank	Term Loan - Out-standing	_	_	0.00	Simple##
10	Federal Bank	Term Loan - Out-standing	1.41	_	1.41	Simple##
11	Federal Bank	Cash Credit - Sanctioned	11.00	_	11.00	Simple##
Total			17.74	21.50	39.24
TOTAL (Rupees Thirty Nine Crores and Twenty Four 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.

ANNEXURE-II

INSTRUMENT DETAILS

Instrument	Issue Date	Amount (Rs.Crs)	Coupon Rate (%)	Maturity Date	ISIN Particulars	Complexity of the Instrument
Nil	Nil	Nil	Nil	Nil	Nil	Nil

ANNEXURE-III

List of entities consolidated

Name of Entity	% Ownership	Extent of consolidation	Rationale for consolidation
Nil	Nil	Nil	Nil

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