Rating Rationale
October 12, 2020 | Mumbai
ASI Industries Limited
Ratings Reaffirmed and Withdrawn
 
Rating Action
Total Bank Loan Facilities Rated Rs.130 Crore
Long Term Rating CRISIL BB+/Positive (Rating Reaffirmed and Withdrawn)
Short Term Rating CRISIL A4+ (Rating Reaffirmed and Withdrawn)
1 crore = 10 million
Refer to annexure for Details of Instruments & Bank Facilities
Detailed Rationale

CRISIL has reaffirmed its ratings on the bank facilities of ASI Industries Limited (ASIL; part of the ASI group) and withdrawn the ratings at the company's request and on receipt of a no-objection certificate from its bankers. The rating action is in line with CRISIL's policy on withdrawal of bank loan ratings.

Analytical Approach

For arriving at its ratings, CRISIL has combined the business and financial risk profiles of ASIL and its wholly owned subsidiaries, Al Rawasi Rock and Aggregates LLC (RRA) and ASI Global Ltd (ASIGL). The entities are collectively referred to as the ASI group.

Please refer Annexure - List of entities consolidated, which captures the list of entities considered and their analytical treatment of consolidation.

About the Group

ASIL was set up in 1945, by members of Kota (Rajasthan)-based Jatia family. The company mines natural stone (Kota) on its 10 square kilometre land in Ramganj Mandi, Rajasthan. It also generates wind power, and trades in steel coils and fabrics.

RRA produces hard limestone rock products, and caters to various companies in the infrastructure, steel, cement, and real estate sectors in Dubai and India.

ASIGL, based in Mauritius, acts as an Investment arm for RRA project in UAE.

Key Financial Indicators (Consolidated)
Particulars Unit 2020 2019
Revenue Rs.Crore 207.52 260.05
Profit After Tax (PAT) Rs.Crore 31.40 22.97
PAT Margin % 15.31 8.8
Adjusted debt/adjusted networth Times 1.53 1.52
Interest coverage Times 1.34 4.7

Status of non cooperation with previous CRA
ASIL did not cooperate with Credit Analysis & Research Ltd, which classified the company as 'non-cooperative' through rationales dated November 22, 2019, and June 27, 2019. The reason provided by the credit rating agency was non-furnishing of information by ASIL. The rating was withdrawn through a rationale dated December 6, 2019.

Any other information: Not applicable

Note on complexity levels of the rated instrument:
CRISIL complexity levels are assigned to various types of financial instruments and are included (where applicable) in the Annexure -- Details of Instrument in this Rating Rationale. For more details on the CRISIL complexity levels, please visit www.crisil.com/complexity-levels.
Annexure - Details of Instrument(s)
ISIN Name of instrument Date of allotment Coupon
rate (%)
Maturity date Issue
size
(Rs.Crore)
Complexity
Level
Rating assigned with outlook
NA Cash Credit NA NA NA 38 NA Withdrawn
NA External Commercial Borrowings NA NA May-2023 27.05 NA Withdrawn
NA Term Loan NA NA Jun-2024 11.09 NA Withdrawn
NA FCNR loan NA NA Mar-2030 28.86 NA Withdrawn
NA Letter of Credit NA NA NA 25 NA Withdrawn
 
Annexure - List of Entities Consolidated
Names of entities consolidated Extent of consolidation Rationale for Consolidation
ASI Industries Ltd Full Parent company; all companies are together referred to as the ASI group
Al Rawasi Rock and Aggregates LLC Full Wholly owned subsidiary of ASI Industries Ltd
ASI Global Ltd Full Wholly owned subsidiary of ASI Industries Ltd
Annexure - Rating History for last 3 Years
  Current 2020 (History) 2019  2018  2017  Start of 2017
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund-based Bank Facilities  LT/ST  105.00  Withdrawn  17-06-20  CRISIL BB+/Positive  06-12-19  CRISIL BBB/Watch Negative  30-11-18  CRISIL BBB+/Stable  31-10-17  CRISIL BBB+/Stable  -- 
        15-04-20  CRISIL BB/Negative (Issuer Not Cooperating)*               
        09-03-20  CRISIL BB+/Watch Negative               
Non Fund-based Bank Facilities  LT/ST  25.00  Withdrawn  17-06-20  CRISIL A4+  06-12-19  CRISIL A3+/Watch Negative  30-11-18  CRISIL A2  31-10-17  CRISIL A2  -- 
        15-04-20  CRISIL A4+ (Issuer Not Cooperating)*               
        09-03-20  CRISIL A4+/Watch Negative               
All amounts are in Rs.Cr.
*Issuer did not cooperate; based on best-available information
Annexure - Details of various bank facilities
Current facilities Previous facilities
Facility Amount (Rs.Crore) Rating Facility Amount (Rs.Crore) Rating
Cash Credit 38 Withdrawn Cash Credit 38 CRISIL BB+/Positive
External Commercial Borrowings 27.05 Withdrawn External Commercial Borrowings 27.05 CRISIL BB+/Positive
FCNR Loan 28.86 Withdrawn FCNR Loan 28.86 CRISIL BB+/Positive
Letter of Credit 25 Withdrawn Letter of Credit 25 CRISIL A4+
Term Loan 11.09 Withdrawn Term Loan 11.09 CRISIL BB+/Positive
Total 130 -- Total 130 --
Links to related criteria
CRISILs Approach to Financial Ratios
CRISILs Bank Loan Ratings - process, scale and default recognition
Rating criteria for manufaturing and service sector companies
Rating Criteria for Mining Industry
CRISILs Bank Loan Ratings
CRISILs Criteria for Consolidation
CRISILs Criteria for rating short term debt
The Rating Process
Understanding CRISILs Ratings and Rating Scales

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