: CRISIL Ratings :

May 03, 2011
Mumbai

CRISIL downgrades ratings on MAWANA SUGARS to ‘D/P5’

Rs.3967.0 Million Cash Credit Limit*	D (Downgraded from ‘B-/Stable’)
Rs.3312.2 Million Term Loan	D (Downgraded from ‘B-/Stable’)
Rs.1000.0 Million Proposed Long-Term Bank Loan Facility	D (Downgraded from ‘B-/Stable’)
Rs.529.0 Million Bank Guarantee/Letter of Credit	P5 (Downgraded from ‘P4’)

* Interchangeable with export packing credit/foreign bills purchased/foreign bills discounting

CRISIL has downgraded its ratings on Mawana Sugars Ltd’s (Mawana Sugars’) bank facilities to ‘D/P5’ from ‘B-/Stable/P4’. The downgrade reflects current delays in servicing term loan instalments by Mawana Sugars; Mawana Sugars’ liquidity continues to be weak because of low cash accruals. Mawana Sugars has submitted a proposal to rework its corporate debt restructuring package, which envisages, among other things, the sale of its non-core assets for reduction of its debt.

The ratings reflect Mawana Sugars’ weak financial risk profile, marked by high gearing and sub-par debt protection metrics, and its susceptibility to adverse regulatory changes and cyclicality in the sugar industry. However, Mawana Sugars has a moderate business risk profile, supported by its integrated manufacturing operations.

About the Company
Mawana Sugars (formerly known as Siel Ltd), was promoted by Mr. Siddharth Shriram. It is an integrated sugar manufacturer, with capacity of 29,500 tonnes of cane crushed per day. It has a capacity to produce 47 megawatt of exportable power and 120 kilolitres per day of ethanol. The company also has capacities to manufacture chlor-alkali chemicals such as caustic soda, caustic flakes, chlorine, hydrogen, hydrochloric acid, stable bleaching powder, and sodium hypochlorite. Its sugar production units are in Mawana, Titawi, and Nanglamal (all in western Uttar Pradesh). Its chemical unit is in Rajpura (Punjab).

For 2008-09 (refers to financial year, October 1 to September 31), Mawana Sugars reported a net loss of Rs.0.57 billion on net sales of Rs.6.8 billion. For the 15 months ended December 31, 2010, Mawana Sugars reported a net loss of Rs.0.77 billion on net sales of Rs.13.5 billion.

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Mitu Samar Head, Market Development & Communications CRISIL Limited Tel: +91-22- 3342 1838 Mobile No: +91- 9820061934 E-mail: msamar@crisil.com Tanuja Abhinandan Market Development & Communications CRISIL Limited Tel: +91-22- 3342 1818 Email: tabhinandan@crisil.com	Pawan Agrawal Director - CRISIL Ratings Tel: +91-22-3342 3301 Email: pagrawal@crisil.com Anuj Sethi Head - CRISIL Ratings Tel: +91-44-6656 3108 Email: ansethi@crisil.com	Tel: +91-22-3342 3047/3342 3064 Email:CRISILratingdesk@crisil.com

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Last updated: March 31, 2011

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May 03, 2011	http://www.crisil.com

Mawana Sugars Ltd