September 23, 2013 | ||||||||||||||||||||||||||||||||||||
Mumbai | ||||||||||||||||||||||||||||||||||||
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Bothra Metals & Alloys Limited | ||||||||||||||||||||||||||||||||||||
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Ratings Suspended | ||||||||||||||||||||||||||||||||||||
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(Refer to Annexure 1 for details on facilities) | ||||||||||||||||||||||||||||||||||||
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CRISIL has suspended its ratings on the bank facilities of Bothra Metals and Alloys Pvt Ltd (Bothra). The suspension of ratings is on account of non-cooperation by Bothra with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Bothra is yet to provide adequate information to enable CRISIL to assess Bothra’s ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria ‘Information Availability Risk in Credit Ratings’ | ||||||||||||||||||||||||||||||||||||
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About the Company | ||||||||||||||||||||||||||||||||||||
Incorporated in 2001, Bothra trades in aluminium scrap, and manufactures aluminium extrusions. It is promoted by members of the Bothra family. The company began operations as a trading concern, and started manufacturing operations in 2007-08 (refers to financial year, April 1 to March 31). Its manufacturing unit at Sirmaur (Himachal Pradesh) has a production capacity of 4000 tonnes per annum (tpa) of ingots, ladders, and window frames. It has set up a plant in Gujarat of 600 tpa to produce ingots and aluminium shots. Furthermore, it is in the process of setting up a plant in Sangli (Maharashtra) for aluminium extrusions with a capacity of 4200 tpa and an alloy plant with a capacity of 7500 tpa. The total cost is estimated at Rs.90 million, which is proposed to be funded through a term loan of Rs.40 million. | ||||||||||||||||||||||||||||||||||||
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Annexure 1 - Details of various bank facilities | ||||||||||||||||||||||||||||||||||||
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*Fully interchangeable with buyers’ credit to the extent of Rs 65 million | ||||||||||||||||||||||||||||||||||||
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Note: This rating rationale is transmitted to you for the sole purpose of dissemination through your newspaper / magazine / agency. The rating rationale may be used by you in full or in part without changing the meaning or context thereof but with due credit to CRISIL. However, CRISIL alone has the sole right of distribution of its rationales for consideration or otherwise through any media including websites, portals etc. | ||||||||||||||||||||||||||||||||||||
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