Rating Rationale
June 30, 2020 | Mumbai
Lancor Holdings Limited
Issuer not cooperating, based on best-available information; Rating Revised to 'CRISIL B+/Stable Issuer Not Cooperating'; Rating Withdrawn
 
Rating Action
Total Bank Loan Facilities Rated Rs.300 Crore
Long Term Rating CRISIL B+/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB/Stable ISSUER NOT COOPERATING'; Rating Withdrawn)*
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 Lancor Holdings Limited (LHL) for obtaining information through letters and emails dated December 31, 2019 and March 12, 2020 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.'

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 LHL. This restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on LHL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information'.
 
Therefore, on account of inadequate information and lack of management cooperation, as well as estimated weakening of the financial risk profile of the company based on public sources, CRISIL has downgraded the rating on the bank facilities of LHL to 'CRISIL B+/Stable Issuer Not Cooperating' from 'CRISIL BB/Stable Issuer Not Cooperating'. CRISIL's rating on the bank facilities of LHL continue to reflect the company's track record of timely debt servicing.
 
CRISIL has withdrawn its rating on the request of the company and receipt of no dues certificate for Rs 175.98 cr of bank facility and no-objection certificate for remaining Rs 124.02 cr of bank facility from its lenders. The rating action is in line with CRISIL's policy on withdrawal of its ratings on bank loans.

About the Company

LHL, incorporated in 1985 as Poonji Leasing & Finance Ltd, was initially engaged in the financing and leasing business. The company ventured into property development in 1990, when it undertook its first commercial project, DBS Business Centre, in Bengaluru. The company was renamed DBS Properties Ltd in 1996, and got its current name in 2002. LHL, promoted by Mr R V Shekar and his family, is listed on the Bombay Stock Exchange since 1985. LHL has eight ongoing projects, with a total saleable area of 8.7 lakh square feet (sq ft), and is planning to launch another 12 lakh sq ft over the next 2-4 quarters.

Any other information: Not applicable

Note on complexity levels of the rated instrument:
CRISIL complexity levels are assigned to various types of financial instruments and are included (where applicable) in the Annexure -- Details of Instrument in this Rating Rationale. For more details on the CRISIL complexity levels, please visit www.crisil.com/complexity-levels.
Annexure - Details of Instrument(s)*
ISIN Name of instrument Date of allotment Coupon rate (%) Maturity date Issue size
(Rs crore)
Complexity Level Rating assigned
with outlook
NA Secured Overdraft Facility 30-Apr-17 10.50 31-Mar-19 45.98 NA Withdrawn/Issuer Not Cooperating
NA Secured Overdraft Facility 23-Nov-15 13.75 31-Mar-21 5.00 NA Withdrawn/Issuer Not Cooperating
NA Secured Overdraft Facility 6-Dec-14 13.00 28-Feb-18 9.91 NA Withdrawn/Issuer Not Cooperating
NA Secured Overdraft Facility 1-Jan-15 13.00 28-Feb-18 46.89 NA Withdrawn/Issuer Not Cooperating
NA Lease Rental Discounting Loan 28-Apr-17 11.50 31-Apr-18 6.76 NA Withdrawn/Issuer Not Cooperating
NA Long Term Loan 23-Nov-15 13.75 31-Oct-21 10.13 NA Withdrawn/Issuer Not Cooperating
NA Long Term Loan 6-Sep-17 12.50 6-aug-21 45.33 NA Withdrawn/Issuer Not Cooperating
NA Cash Credit** NA NA NA 130.00 NA Withdrawn/Issuer Not Cooperating
*Issuer did not cooperate; based on best-available information
**Sanctioned but yet to avail
Annexure - Rating History for last 3 Years
  Current 2020 (History) 2019  2018  2017  Start of 2017
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund-based Bank Facilities  LT/ST  300.00  Withdrawn (Issuer Not Cooperating)*      26-04-19  CRISIL BB/Stable (Issuer Not Cooperating)*  12-01-18  CRISIL BBB-/Stable  27-07-17  CRISIL BBB-/Stable  CRISIL BBB/Stable 
                08-01-18  CRISIL BBB-/Stable  14-03-17  CRISIL BBB-/Negative   
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
Cash Credit 130 Withdrawn/Issuer Not Cooperating Cash Credit 130 CRISIL BB/Stable/Issuer Not Cooperating
Lease Rental Discounting Loan 6.76 Withdrawn/Issuer Not Cooperating Lease Rental Discounting Loan 6.76 CRISIL BB/Stable/Issuer Not Cooperating
Long Term Loan 55.46 Withdrawn/Issuer Not Cooperating Long Term Loan 55.46 CRISIL BB/Stable/Issuer Not Cooperating
Secured Overdraft Facility 107.78 Withdrawn/Issuer Not Cooperating Secured Overdraft Facility 107.78 CRISIL BB/Stable/Issuer Not Cooperating
Total 300 -- Total 300 --
Links to related criteria
Assessing Information Adequacy Risk
CRISILs Approach to Financial Ratios
CRISILs Bank Loan Ratings - process, scale and default recognition
CRISILs Rating criteria for Real Estate Developers

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