Rating Rationale
April 26, 2019 | Mumbai
Deep Industries
Issuer not cooperating, based on best-available information; Ratings continues to 'CRISIL BB+/Stable/CRISIL A4+ Issuer not cooperating'
 
Rating Action
Total Bank Loan Facilities Rated Rs.10 Crore
Long Term Rating CRISIL BB+/Stable (ISSUER NOT COOPERATING)*
Short Term Rating CRISIL A4+ (ISSUER NOT COOPERATING)*
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 Deep Industries (DI) for obtaining information through letters and emails dated September 28, 2018 and March 12, 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 DI, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on DI is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'.

Based on the last available information, the ratings on bank facilities of DI continues to be 'CRISIL BB+/Stable/CRISIL A4+ Issuer not cooperating'

About the Firm

Established in 2002 as a partnership firm by Mr. Dinkar Thakkar and his family members, DI manufactures industrial paints at its facility in Kutch.

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 Bill Discounting under Letter of Credit NA NA NA 7 CRISIL A4+/Issuer Not Cooperating
NA Cash Credit NA NA NA 3 CRISIL BB+/Stable/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  3.00  CRISIL BB+/Stable (Issuer Not Cooperating)*      30-01-18  CRISIL BB+/Stable (Issuer Not Cooperating)*      21-10-16  CRISIL BB+/Stable  CRISIL BB/Stable 
Non Fund-based Bank Facilities  LT/ST  7.00  CRISIL A4+ (Issuer Not Cooperating)*      30-01-18  CRISIL A4+ (Issuer Not Cooperating)*      21-10-16  CRISIL A4+  CRISIL A4+ 
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
Bill Discounting under Letter of Credit 7 CRISIL A4+/Issuer Not Cooperating Bill Discounting under Letter of Credit 7 CRISIL A4+/Issuer Not Cooperating
Cash Credit 3 CRISIL BB+/Stable/Issuer Not Cooperating Cash Credit 3 CRISIL BB+/Stable/Issuer Not Cooperating
Total 10 -- Total 10 --
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 rating short term debt

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