November 27, 2012

Mumbai

Fine Organic Industries Private Limited

Ratings Suspended

Total Bank Loan Facilities Rated	Rs.792.2 Million
Long-Term Rating	Suspended
Short-Term Rating	Suspended

(Refer to Annexure 1 for details on facilities)

CRISIL has suspended its ratings on the bank facilities of Fine Organic Industries Private Limited (FOIPL). The suspension of ratings is on account of non-cooperation by FOIPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, FOIPL is yet to provide adequate information to enable CRISIL to assess FOIPL’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’.

About the Company

CRISIL has consolidated the business and financial risk profiles of FOIPL and Oleofine Organics (India) Pvt Ltd (Oleofine), together referred to as the Fine-Oleofine combine. This is because the two entities have common promoters and management, share similar product and customer profile. Moreover, the management has plans to merge the two entities in first half of 2011-12 (refers to financial year, April 1 to March 31).

FOIPL is the flagship company of the Fine Organic group, owned by the Kamat and Shah families. The company was established in 2006 and is expected to be merged with Oleofine; the merger is expected to be completed in first half of 2011-12. FOIPL manufactures additives and amides used in various industries such as food, plastic, rubber, paint and inks; these products are also used as auxiliaries for textiles and refinery chemicals.

Annexure 1 - Details of various bank facilities

Current facilities			Previous facilities
Facility	Amount (Mln)	Rating	Facility	Amount (Mln)	Rating
Bank Guarantee	5	Suspended	Bank Guarantee	5	CRISIL A3+
Cash Credit	355	Suspended	Cash Credit	355	CRISIL BBB/Stable
Letter of Credit	32.2	Suspended	Letter of Credit	32.2	CRISIL A3+
Rupee Term Loan	400	Suspended	Rupee Term Loan	400	CRISIL BBB/Stable
Total	792.2	--	Total	792.2	--

Media Contacts	Analytical Contacts	CRISIL Rating Desk
Tanuja Abhinandan Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1818 Email: tanuja.abhinandan@crisil.com Shweta Ramchandani Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1886 E-mail: shweta.ramchandani@crisil.com	Subodh K Rai Senior Director - CRISIL Ratings Tel: +91-0124-672 2000 Email: subodh.rai@crisil.com Manish Kumar Gupta Director - CRISIL Ratings Tel: +91-0124-672 2000 Email:manish.gupta@crisil.com	Tel: +91-22-3342 3047/3342 3064 Email:CRISILratingdesk@crisil.com

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Last updated: April 30, 2012

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