RATING RATIONALE
15Dec2021

Suyash Chemical & Fertilizer (P) Ltd

Brickwork Ratings reaffirms the long term ratings for the Bank Loan Facilities of Rs. 47.44 Crs. of Suyash Chemical & Fertilizer (P) Ltd

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(04 Dec 2020)
Present
Fund Based 36.28 36.28 Long Term BWR BBB-/Stable
Reaffirmation
BWR BBB - /Stable
Reaffirmation
Non Fund Based 11.16 11.16 Long Term BWR BBB-
Reaffirmation
BWR BBB - /Stable
Reaffirmation
Grand Total 47.44 47.44 (Rupees Forty Seven Crores and Forty 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


RATING ACTION / OUTLOOK

Brickwork Ratings has reaffirmed the rating of Suyash Chemical And Fertilizer (P) Ltd for Long Term Bank loan facilities as BWR BBB-(Outlook:Stable). The rating takes into account the experience of the promoters, improvement in financial risk profile, diversified revenue streams and low customer concentration risk. However, the rating is constrained by intense competition, raw material price fluctuation risk, environmental and regulatory risks of the paper industry. The outlook has been considered to be ‘Stable’ as BWR believes that the risk profile of the company will be maintained over the medium term, indicating that there is a low likelihood of rating change over the medium term.

KEY RATING DRIVERS

Credit Strengths:


Credit Risks:

ANALYTICAL APPROACH - Consolidated

For arriving at its ratings, BWR has applied its rating methodology as detailed in the Rating Criteria detailed below (hyperlinks provided at the end of this rationale).

RATING SENSITIVITIES

Going forward, the company’s ability to maintain its financial risk profile and business risk profile would be the key sensitivities over the short to medium term.

Positive : The rating outlook may be revised to positive if the company demonstrates to regain the earlier topline level. Maintaining its business risk profile would also be the credit positive.

Negative : The rating may be downgraded if there is further fall in its topline along with any delay in debt servicing and deterioration in the liquidity profile.

LIQUIDITY INDICATORS - Adequate

1. The Cash and Bank balances as on 31.3.2021 is Rs. 37.15 Cr.
2. Net Cash Accruals in FY21 is Rs. 5.20 Cr. against which Current portion of long term debt(CPLTD) is Nil. Net Cash Accrual is estimated to improve in FY22 at Rs. 7.63 Cr. against which CPLTD is Nil.
3. Debt Protection metrics are moderate i.e. ISCR and DSCR at 2.53X and 1.97X in FY20. Both the coverage ratios have increased to 2.64X and 2.03X in FY21. As per FY22 (Prov.) ISCR and DSCR is estimated to be 3.51X and DSCR 1.83X.
4. CC utilization is 84.38%.

Hence, the Liquidity of the company is adequate.

NDS of the company is received from April'21 to November'21

ABOUT THE ENTITY

Incorporated in the year 1994, Suyash Chemical & Fertilizers Pvt Ltd has two divisions paper division and Agro division. It is engaged in processing wheat into flour, maida, suji under Agro division and manufacturing of kraft paper, core pipes, paper tubes and tissue paper which are used in the packaging industry. Paper unit of the company is located at Basti, Uttar pradesh and flour mill is located at Gorakhpur (U.P). Paper division contributes to around 70% of the total revenue of the company. The company is promoted by Mr Ramji Jaiswal along with other associates.

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 20-21
(Audited)
FY 19-20
(Audited)
Operating Revenue Rs.Crs. 133.96 131.92
EBITDA Rs.Crs. 9.37 9.91
PAT Rs.Crs. 2.27 2.17
Tangible Net Worth Rs.Crs. 42.01 39.74
Total Debt/Tangible Net Worth Times 1.10 0.96
Current Ratio Times 1.97 1.84
KEY COVENANTS OF THE FACILITY RATED

NIL


STATUS OF NON-COOPERATION WITH PREVIOUS CRA

CARE BB-/Stable Issuer Not Cooperating dated 14 Oct'2021

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating (2021) 2020 2019 2018
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 36.28
BWR BBB-/Stable
(Reaffirmation)
04Dec2020
BWR BBB-Stable
(Reaffirmation)
29Nov2019
BWR BBB-Stable
(Reaffirmation)
31Oct2018
BWR BBB-Stable
(Assignment)
Non Fund Based LT 11.16
BWR BBB-/Stable
(Reaffirmation)
04Dec2020
BWR BBB-
(Reaffirmation)
29Nov2019
BWR BBB-
(Reaffirmation)
NA
NA
Grand Total 47.44 (Rupees Forty Seven Crores and Forty Four 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.

Hyperlink/Reference to applicable Criteria
Analytical Contacts

Ashish Kumar

Ratings Analyst ashish.k@brickworkratings.com

Hari Kishan Yadav

Associate Director - Ratings hari.ky@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Suyash Chemical & Fertilizer (P) 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 Punjab National Bank Term Loan 2.75 _ 2.75
2 Punjab National Bank Cash Credit 25.21 _ 25.21
3 Punjab National Bank Bank Guarantee 11.16 _ 11.16
4 Punjab National Bank GECL 5.80 _ 5.80
5 Punjab National Bank Covid Term Loan 2.52 _ 2.52
Total 47.44 0.00 47.44
TOTAL (Rupees Forty Seven Crores and Forty Four lakhs Only)
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About Brickwork Ratings

Brickwork 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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