November 19, 2013
Mumbai
Indosolar Limited
Ratings Suspended
| Total Bank Loan Facilities Rated | Rs.5350 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 Indosolar Ltd (Indosolar). The suspension of ratings is on account of non-cooperation by Indosolar with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Indosolar is yet to provide adequate information to enable CRISIL to assess Indosolar’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
Set up in February 2006 by Mr. B K Gupta and his son, Mr. H R Gupta, Indosolar uses multi-crystalline wafer technology to manufacture PV cells, used in the manufacture of modules and, ultimately, integrated solar energy systems. Line I of its unit, which has an 80-megawatt (MW) PV cell manufacturing capacity, was commissioned in October 2009, and line II, with the same capacity, was commissioned by March 2010. These two units were set up at a cost of Rs.6.7 billion and are situated in Greater Noida (Uttar Pradesh). Indosolar had plans to set up an additional 200 MW line at a cost of Rs.5.5 billion; the completion of which is now uncertain, because of the company’s weak liquidity and slacked demand for its products.
Annexure 1 - Details of various bank facilities
| Current facilities | Previous facilities | ||||
| Facility | Amount (Rs. Million) | Rating | Facility | Amount (Rs. Million) | Rating |
| Bill Discounting | 245 | Suspended | Bill Discounting | 245 | CRISIL D |
| Cash Credit* | 625 | Suspended | Cash Credit* | 625 | CRISIL D |
| Letter of Credit | 800 | Suspended | Letter of Credit | 800 | CRISIL D |
| Term Loan | 3680 | Suspended | Term Loan | 3680 | CRISIL D |
| Total | 5350 | -- | Total | 5350 | -- |
* Interchangeable with pre-shipment credit
| Media Contacts | Analytical Contacts | Customer Service Helpdesk |
| Tanuja Abhinandan Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1818 Mobile: +91- 98192 48980 Email:tanuja.abhinandan@crisil.com Jyoti Parmar Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1835 E-mail: jyoti.parmar@crisil.com | Sudip Sural Senior Director - CRISIL Ratings Tel: +91-124-672 2000 Email: sudip.sural@crisil.com Manoj Damle Director - CRISIL Ratings Tel: +91-22-3342 3342 Email:manoj.damle@crisil.com | Timings: 10.00 am to 7.00 pm Toll free number: 1800 267 1301 Email:CRISILratingdesk@crisil.com |
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.
Crisil complexity levels are assigned to various types of financial instruments. The crisil complexity levels are available on www.crisil.com/complexity-levels.investors are advised to refer to the crisil complexity levels for instruments that they desire to invest in. Investors may also call the Customer Service Helpdesk with queries on specific instruments. |
About CRISIL LIMITED |
 | |
November 19, 2013 | http://www.crisil.com |