Rating Rationale
December 20, 2019 | Mumbai
Alchemist Limited
Issuer not cooperating, based on best-available information; Rating migrated to 'CRISIL D Issuer not cooperating'
 
Rating Action
Total Bank Loan Facilities Rated Rs.32.5 Crore
Long Term Rating CRISIL D (ISSUER NOT COOPERATING; Rating Migrated)*
1 crore = 10 million
Refer to annexure for Details of Instruments & Bank Facilities
*Issuer did not cooperate; based on best-available information
Please note that the rating(s) are based on best available information with the credit rating agency: the entity whose debt is being published via this press release did not provide the requisite information needed to conduct the rating exercise and is therefore classified as 'non cooperative'.
Non cooperation by Issuer

CRISIL has been consistently following up with Alchemist Limited (AL; a part of the Alchemist group) for obtaining information through letters and emails dated September 24, 2019 and October 14, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative.
 
'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of AL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on AL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'.
 
Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of AL to 'CRISIL D Issuer not cooperating'.

About the Company

AL was initially established in 1988 at as Toubro Infotech & Industries Ltd, a private-limited company by Dr K D Singh; it got reconstituted as AL when it came out with its initial public offering in 1994. AL has grown into a diversified corporation with operations in chemical trading, pharmaceuticals, food-processing, floriculture, and steel.
 
AIPL and AHGL are currently not operational.

Key Financial Indicators
Particulars Unit 2019 2018
Revenue Rs crore   26.7 26.6
Profit after tax (PAT) Rs crore -49.63 -16.90
PAT margin % -185.66 -63.5
Adjusted debt/adjusted networth Times -5.08 -7.51
Interest coverage Times -4.3 -4.5

Any other information: Not applicable

Note on complexity levels of the rated instrument:
CRISIL complexity levels are assigned to various types of financial instruments. The CRISIL complexity levels are available on www.crisil.com/complexity-levels. Users are advised to refer to the CRISIL complexity levels for instruments that they consider for investment. Users may also call the Customer Service Helpdesk with queries on specific instruments.
Annexure - Details of Instrument(s)*
ISIN Name of Instrument Date of Allotment Coupon
Rate (%)
Maturity Date Issue
Size
(Rs. Cr)
Rating Assigned  with Outlook
NA Cash Credit NA NA NA 3.5 CRISIL D/Issuer Not Cooperating
NA Proposed Long Term Bank Loan Facility NA NA NA 21.82 CRISIL D/Issuer Not Cooperating
NA Term Loan NA NA Not Available 7.18 CRISIL D/Issuer Not Cooperating
*Issuer did not cooperate; based on best-available information
Annexure - Rating History for last 3 Years
  Current 2019 (History) 2018  2017  2016  Start of 2016
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund-based Bank Facilities  LT/ST  32.50  CRISIL D (Issuer Not Cooperating)*      28-09-18  CRISIL D  28-03-17  CRISIL D/ CRISIL D      CRISIL D/ CRISIL D 
            29-06-18  CRISIL D/ CRISIL D (Issuer Not Cooperating)*           
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 3.5 CRISIL D/Issuer Not Cooperating Cash Credit 3.5 CRISIL D
Proposed Long Term Bank Loan Facility 21.82 CRISIL D/Issuer Not Cooperating Proposed Long Term Bank Loan Facility 21.82 CRISIL D
Term Loan 7.18 CRISIL D/Issuer Not Cooperating Term Loan 7.18 CRISIL D
Total 32.5 -- Total 32.5 --
Links to related criteria
CRISILs Approach to Financial Ratios
CRISILs Bank Loan Ratings - process, scale and default recognition
Framework for Assessing Information Adequacy Risk
Rating criteria for manufaturing and service sector companies
CRISILs Criteria for Consolidation
CRISILs Criteria for rating short term debt

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