November 06, 2013

Mumbai

Gulshan Chemicals Limited

Ratings Suspended

Total Bank Loan Facilities Rated
Rs.75 Million
Long-Term Rating
Suspended
Short-Term Rating
Suspended

(Refer to Annexure 1 for Facility-wise details)

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

Incorporated in 1985 and promoted by Mr. Pradeep Kumar Jain, GCL is one of India’s leading manufacturers of sodium hydrosulphite, a bleaching agent used in the paper, textile, leather, and pharmaceutical industries. GCL has an installed capacity of 12,000 tonnes per annum (tpa) of sodium hydrosulphite and 3600 tpa of sodium sulphite at its facilities in Bhiwadi (Rajasthan).

Annexure 1 - Details of various bank facilities

Current facilities
Previous facilities
Facility
Amount
(Rs. Million)
Rating
Facility
Amount
(Rs. Million)
Rating
Cash Credit
60
Suspended
Cash Credit
60
CRISIL BB/Stable
Letter of credit & Bank Guarantee
15
Suspended
Letter of credit & Bank Guarantee
15
CRISIL A4+
Total
75
--
Total
75
--

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Email: mohit.makhija@crisil.com

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Last updated: May, 2013

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November 06, 2013

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