Rating Rationale
April 15, 2020 | Mumbai
Larsen and Toubro Limited
'CRISIL AAA/Stable' assigned to NCD
 
Rating Action
Total Bank Loan Facilities Rated Rs.110000 Crore
Long Term Rating CRISIL AAA/Stable (Reaffirmed)
 
Rs.9000 Crore Non Convertible Debentures CRISIL AAA/Stable (Assigned)
Rs.1000 Crore Non Convertible Debentures  CRISIL AAA/Stable (Reaffirmed)
Rs.1400 Crore Non Convertible Debentures  CRISIL AAA/Stable (Reaffirmed)
Non-Convertible Debentures Aggregating to Rs.5550 Crore  CRISIL AAA/Stable (Reaffirmed)
Rs.100 Crore Inflation-linked Capital-Indexed Non-Convertible Debenture  CRISIL AAA/Stable (Reaffirmed)
Fixed Deposit Programme  FAAA/Stable (Reaffirmed)
Rs.16000 Crore Commercial Paper (Enhanced from Rs.10000 Crore) CRISIL A1+ (Reaffirmed)
1 crore = 10 million
Refer to annexure for Details of Instruments & Bank Facilities
The common independent director on CRISIL's and Larsen & Toubro Limited's boards did not participate in the rating committee meeting and the rating process of these instruments.
Detailed Rationale

CRISIL AAA/Stable CRISIL has assigned its 'CRISIL AAA/Stable' rating to the non-convertible debentures of Rs.9000 crore of Larsen and Toubro Limited (L&T) while reaffirming its 'CRISIL AAA/FAAA/Stable/CRISIL A1+' ratings on the other debt programmes and long term bank facilities.

CRISIL has also withdrawn it rating on the non-convertible debenture of Rs 200 crore (See the Details of Rating Withdrawn) on confirmation from the debenture trustee as it is fully redeemed. The rating is withdrawn in line with CRISIL's policy.

CRISIL's ratings continue to reflect L&T's dominant position in the engineering and construction market in India, a diversified revenue profile, adequate financial risk profile, and strong financial flexibility.

These rating strengths are partially offset by high working capital intensity of core operations and lower returns from the significant capital employed in a few businesses such as shipbuilding and heavy forgings. Furthermore, the rating reflects lower returns from investments in large infrastructure developmental projects being undertaken by various special purpose vehicles (SPVs), primarily through the subsidiaries, L&T Metro Rail (Hyderabad) Limited (LTMRHL) and L&T Power Development Ltd (L&T PDL) over past few years.
 
Operating performance in fiscal 2021 is likely to be impacted following measures taken by various state governments as well as central government towards containment of COVID-19 which includes temporary closure of non-critical establishments, inter-state transportation etc. along-with severe restrictions on travel. The supply chain for L&T could be temporarily disrupted, and order executions may be affected due to decline in demand, if the global pandemic prolongs further. Since these measures are imposed at a broader level and across sectors, they are expected to impact the business profile of the group. The ability of the company to revert back to operational stability and any relief measures given by the government will be a key monitorable and CRISIL will continue monitoring these events. Nevertheless, L&T's strong capital structure and liquidity position supports its strong credit profile.

Analytical Approach

For arriving at its ratings, CRISIL has used a combination of full, proportionate and moderate consolidation of L&T group companies. In the case of financial subsidiaries, CRISIL has factored capital allocation method.

CRISIL has fully consolidated 74 subsidiaries because these entities form a core part of L&T's business profile. These include L&T's infrastructure holding companies - L&T Power Developmental Ltd (L&T PDL) and L&T Realty Ltd (L&T Realty) on a standalone basis.
 
CRISIL has also proportionately consolidated 2 JVs to the extent of its shareholding in these entities, to reflect support required to the extent of its interests in these businesses. CRISIL has used the capital allocation method for the 12 finance subsidiaries, wherein the capital required for maintaining the credit profile is factored.
 
CRISIL has fully consolidated the SPV, Nabha Power Ltd (Nabha, rated 'CRISIL A1+'), as L&T has provided a corporate guarantee for debt raised. CRISIL has not fully consolidated the debt in the remaining infrastructure SPVs, as the debt is non-recourse to L&T. However, in line with its moderate consolidation approach, CRISIL has factored in L&T's support to fund the equity component of the investment in these infrastructure and power development SPVs, any cost overruns and, debt servicing support in the initial stage of operations. Post transfer of 100% stake of L&T Metro Rail (Hyderabad) Ltd (LTMRHL) from L&T IDPL to L&T, CRISIL continues to factor in L&T's support to fund the equity component of the investment in this project and any shortfall in the initial stage of operations (in line with its moderate consolidation approach).

Please refer Annexure - Details of Consolidation, which captures the list of entities considered and their analytical treatment of consolidation.

Key Rating Drivers & Detailed Description
Strengths
* Dominant market position in domestic E&C segment with diversified revenue profile: L&T's dominance in the domestic E&C segment is supported by its ability to cater to several sectors, an established track record of more than seven decades, and a strong brand image. The business mix spans a spectrum of projects, ranging from complex turnkey engineering, procurement, and construction (EPC) projects, to relatively simple construction activities. In-house design, engineering, and, importantly, fabrication capabilities for critical equipment and systems give a strong competitive advantage. These strong competencies across segments and sectors, along with a sound track record of completing projects as per specifications, have supported L&T's robust brand image in India and abroad, as indicated by a strong group level order book of Rs 3.06 lakh crore as on December 31, 2019. The company has diversified geographically, with international orders comprising 23% of the total order book as on December 31, 2019. CRISIL believes the company will maintain its dominant position in the E&C market in India by judiciously bidding for projects across segments such as infrastructure (power, roads), urban infrastructure, defence manufacturing, and nuclear. Also, revenue is expected to continue being diversified geographically.
 
* Strong financial flexibility and comfortable capital structure: Strong financial flexibility is driven by the company's demonstrated ability to raise funds at competitive rates, and significant cash balance (standalone cash and equivalents of around Rs 12,294 crore as on March 31, 2019). Healthy cash accrual of around Rs 5,500-7,000 crore over past few years, and periodic divestments have significantly improved the networth and augmented liquidity. While L&T's net worth has improved significantly over the years, on account of the strong cash accruals, its impact on the capital structure has been partly offset by the additional investments in subsidiaries and the higher working capital requirements. Historically, the L&T group has displayed a conservative financial policy, as is evident in gearing of less than 0.5 times as on March 31, 2019.
 
Weaknesses
* High working capital intensity of operations with correction expected over the near to medium term: Gross current assets (GCA) net of dues to customers and cash, though improved, remains high at 285 days as on March 31, 2019 (vs 300 days in the previous fiscal). However the Company has demonstrated ability to manage overall liquidity through customer advances and creditors. Additionally, given the intent of the management to judiciously bid for the projects with lower working capital intensity as well as efforts in reducing outstanding receivables and inventory, CRISIL expects gradual improvements in GCA from the current levels and shall be a key rating monitorable over the medium term.
 
* Subdued returns from significant capital employed notwithstanding moderate levels of debt service indicators: Return on capital employed (RoCE) improved in fiscal 2019, though the overall returns remain constrained due to existing investments in developmental projects such as Nabha and Hyderabad Metro. Highly geared build, operate, transfer projects are fraught with construction risks which may lead to cost overrun in the pre-commercial operations phase, and temporary cash gap funding in the initial years post COD, which constrains significant improvements in RoCE. A stretched working capital cycle and subdued returns from investments in developmental projects and manufacturing companies such as shipbuilding and forgings are the key credit concerns. However, given the past track record and intent of management to judiciously bid for projects as well as focus on improving the operating profitability margin, as evident in fiscal 2019, CRISIL expects further improvement in operating profitability, resulting in a higher RoCE, over the medium term.

Leverage levels as reflected in Debt/EBITDA has is steady at around 2.0 times as on March 31, 2019 on account of divestments and improved profitability. Going forward, L&T is expected to raise funds by divesting the stake in businesses such as electrical and automation business (transaction is already approved by Competition Commission of India in April 2019), and developmental projects over the medium term. Most of these proceeds is expected to be returned to shareholders in the form of dividends/buybacks and new investments in higher ROCE projects. Borrowing levels in absolute terms may increase in the interim to meet business requirements, but debt/EBITDA ratio is expected to remain around 2.0 times in the medium term.
Liquidity Superior

L&T (as per CRISIL consolidation) has healthy liquidity driven by expected cash accruals of more than Rs 8,500 crore per annum in fiscal 2019 and 2020 as well as significant cash balance. L&T also has access to fund based limits of Rs 10,000 crore which has moderate utilization levels (including commercial paper). CRISIL believes the company has sufficient accruals and cash and cash equivalents to meet its repayment obligations and partly finance its capex requirements and investment requirements in various subsidiaries and JVs. With a gearing of less than 0.5 times as on March 31, 2019, L&T has sufficient gearing headroom, to raise additional debt for its capex. Its unutilized bank lines are more than adequate to meet its incremental working capital needs over the next one year.

Outlook: Stable

CRISIL believes L&T will maintain leadership in the E&C segment in India, and is positioned to benefit from the large infrastructure spending in India, over the medium term. Moreover, the company is likely to maintain its healthy cash accrual despite the challenging market conditions for the E&C segment. Besides, it is expected to continue with its divestment strategy and its capital investments are expected to remain restricted to those required for existing projects over this period. Management's focus on deleveraging and on improving the RoCE, is expected to lead to a better financial risk profile.
 
Rating Sensitivity factors
Downward factors:
* Sustained increase in working capital cycle from current levels
* Higher-than-expected support provided to projects/subsidiaries, resulting in a sustained increase in debt to EBITDA ratio from 2.0 times

About the Company

Set up in 1938 by Mr. H H Larsen and Mr. S K Toubro, L&T was incorporated in 1946, and was reconstituted as a public limited company in 1950. L&T is one of Asia's largest vertically integrated E&C conglomerates, with a strong market position across segments such as infrastructure, power, hydrocarbons, heavy engineering, defense engineering, electrical and automation, information technology, technology services, metallurgical and material handling, and machinery and industrial products. L&T undertakes its infrastructure developmental projects (roads, metro rail, power and transmission lines) largely through SPVs L&T IDPL, L&T PDL and LTMRHL.
 
In fiscal 2019, on a standalone basis, net profit was Rs 6,678 crore on revenue of Rs 86,988 crore, against net profit of Rs 5,387 crore on revenue of Rs 74,621 crore, in the corresponding period of the previous year.

Key Financial Indicators - L&T Standalone (Reported)
Particulars Unit 2019 2018
Revenue Rs cr 86,988 74,612
Profit After Tax Rs cr 6,678 5,387
PAT margin % 7.68 7.23
Adjusted debt/Adjusted networth Times 0.19 0.22
Interest coverage Times 6.98 6.50

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 Type of instrument Date of allotment Coupon 
Rate (%)
Maturity
date
Issue Size (Rs cr) Rating Assigned
with Outlook
INE018A08AS1 NCDs 22-May-19 9.02% 22-May-22 2000 CRISIL AAA/Stable
INE018A08AT9 NCDs 20-Aug-19 6.77% 20-Aug-20 1400 CRISIL AAA/Stable
INE018A08AU7 NCDs 24-Jan-20 6.72% 24-April-23 1000 CRISIL AAA/Stable
NA NCDs^ NA NA NA 9000 CRISIL AAA/Stable
INE018A08AR3 NCDs 18-Apr-19 7.87% 18-Apr-22 1500 CRISIL AAA/Stable
INE018A08AG6 NCDs 11-May-10 9.15% 11-May-20 300 CRISIL AAA/Stable
INE018A08AH4 NCDs 26-May-10 8.95% 26-May-20 300 CRISIL AAA/Stable
INE018A08AJ0 NCDs 10-Apr-12 9.75% 11-Apr-22 250 CRISIL AAA/Stable
INE018A08AQ5 NCDs 24-Sep-15 8.40% 24-Sep-20 1,000 CRISIL AAA/Stable
INE018A08AK8 Inflation-linked Capital-indexed  NCD 23-May-13 1.65% p.a. payable on inflation adjusted principal 23-May-23 100 CRISIL AAA/Stable
NA Commercial Paper NA NA 7-365 days 16,000 CRISIL A1+
NA Working Capital Facility NA NA NA 85,000 CRISIL AAA/Stable
NA Fund Based Facilities NA NA NA 10,000 CRISIL AAA/Stable
NA Fixed Deposits NA NA NA 0 FAAA/Stable
NA Non-Fund Based Facilities NA NA NA 15,000 CRISIL AAA/Stable
*Yet to be issued
 
Annexure - Details of Rating Withdrawn
ISIN Type of instrument Date of allotment Coupon 
Rate (%)
Maturity
date
Issue Size (Rs cr)
INE018A08AD3 NCD 13-Apr-10 8.80% 13-Apr-20 200
 
Annexure - List of entities consolidated
Name of the Company Type of Consolidation
Nabha Power Limited Full consolidation
L&T Technology Services Limited Full consolidation
Larsen & Toubro Infotech Limited Full consolidation
L&T Thales Technology Services Private Limited Full consolidation
L&T Technology Services LLC Full consolidation
Esencia Technologies Inc Full consolidation
Esencia Technologies India Private Limited Full consolidation
Larsen & Toubro LLC Full consolidation
Larsen & Toubro Infotech Gmbh Full consolidation
L&T Power Development Limited Full consolidation
Larsen & Toubro Infotech Canada Limited Full consolidation
Larsen & Toubro Infotech LLC Full consolidation
MindTree Limited Full consolidation
L&T Infotech Financial Services Technologies Inc Full consolidation
Larsen & Toubro Infotech South Africa (Pty) Limited Full consolidation
L&T Information Technology Services (Shanghai) Co. Ltd Full consolidation
Larsen & Toubro Infotech Austria Gmbh Full consolidation
L&T Information Technology Spain S.L Full consolidation
L&T Infotech  S. De R.L. De C.V Full consolidation
Syncordis Software Service India Private Ltd Full consolidation
Syncordis S.A Full consolidation
Syncordis Support Services S.A Full consolidation
Syncordis Limited Full consolidation
Syncordis France SARL Full consolidation
L&T Realty Limited Full consolidation
Larsen & Toubro (Oman) LLC Full consolidation
Larsen & Toubro Saudi Arabia LLC Full consolidation
L&T Infrastructure Engineering Limited Full consolidation
Hi-Tech Rock Products & Aggregates Limited Full consolidation
Larsen & Toubro (T&D) SA (Proprietary) Limited Full consolidation
L&T Sapura Offshore Private Limited Full consolidation
L&T Overseas Projects Nigeria Limited Full consolidation
Larsen & Toubro Kuwait Construction General Contracting Company WLL Full consolidation
Larsen & Toubro Atco Saudia Company LLC Full consolidation
Larsen & Toubro Hydrocarbon International Limited LLC Full consolidation
Larsen Toubro Arabia LLC Full consolidation
L&T Hydrocarbon Engineering Limited Full consolidation
L&T Modular Fabrication Yard LLC Full consolidation
L&T-Gulf Private Limited Full consolidation
L&T Sapura Shipping Private Limited Full consolidation
Larsen & Toubro Electromech LLC Full consolidation
Henikwon Corporation SDN.BHD Full consolidation
L&T Electrical & Automation FZE Full consolidation
Tamco Electrical Industries Australia Pty Limited Full consolidation
Servowatch Systems Limited Full consolidation
Thalest Limited Full consolidation
PT Tamco Indonesia Full consolidation
Kana Controls General Trading & Contracting Company WLL Full consolidation
L&T Electricals & Automation Saudi Arabia Company Limited LLC Full consolidation
Tamco Switchgear (Malaysia) SDN.BHD Full consolidation
L&T Shipbuilding Limited Full consolidation
Marine Infrastructure Developer Private Limited Full consolidation
L&T MBDA Missile Systems Limited Full consolidation
LTH Milcom Private Limited Full consolidation
L&T Special Steels And Heavy Forgings Private Limited Full consolidation
L&T Heavy Engineering LLC Full consolidation
L&T - Sargent & Lundy Limited Full consolidation
L&T Howden Private Limited Full consolidation
L&T Construction Equipment Limited Full consolidation
L&T Valves Limited Full consolidation
L&T Global Holdings Limited Full consolidation
Larsen & Toubro International FZE Full consolidation
L&T Aviation Services Private Limited Full consolidation
L&T Power Limited Full consolidation
Raykal Aluminium Company Private Limited Full consolidation
Sahibganj Ganges Bridge Company Private Limited Full consolidation
Bhilai Power Supply Company Limited Full consolidation
Kesun Iron & Steel Company Limited Full consolidation
L&T Capital Company Limited Full consolidation
L&T Electrical & Automation Limited Full consolidation
L&T Infra Contractors Private Limited Full consolidation
Larsen & Toubro (East Asia) SDN.BHD Full consolidation
L&T Geostructure LLP Full consolidation
Larsen & Toubro (Saudi Arabia) LLC Full consolidation
L&T-MHPS Boilers Private Limited Proportionate consolidation
L&T-MHPS Turbine Generators Private Limited Proportionate consolidation
L&T Arunachal Hydropower Limited Moderate consolidation
L&T Himachal Hydropower Limited Moderate consolidation
L&T Uttaranchal Hydropower Limited Moderate consolidation
L&T Metro Rail (Hyderabad) Limited Moderate consolidation
L&T Seawoods Limited Moderate consolidation
L&T Realty FZE Moderate consolidation
Chennai Vision Developers Private Limited Moderate consolidation
L&T Vision Ventures Limited Moderate consolidation
L&T Finance Holdings Limited Capital Allocation
L&T Finance Limited Capital Allocation
L&T Infrastructure Finance Company Limited Capital Allocation
L&T Housing Finance Limited Capital Allocation
L&T Infra Debt Fund Limited Capital Allocation
L&T Infra Investment Partners Advisory Private Limited Capital Allocation
L&T Infra Investment Partners Trustee Private Limited Capital Allocation
L&T Investment Management Limited Capital Allocation
L&T Mutual Fund Trustee Limited Capital Allocation
L&T Capital Markets Limited Capital Allocation
L&T Financial Consultants Limited Capital Allocation
Mudit Cement Limited Capital Allocation
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
Commercial Paper  ST  16000.00  CRISIL A1+  20-01-20  CRISIL A1+  24-09-19  CRISIL A1+  24-08-18  CRISIL A1+  07-12-17  CRISIL A1+  -- 
            13-08-19  CRISIL A1+           
            17-05-19  CRISIL A1+           
            12-04-19  CRISIL A1+           
            20-03-19  CRISIL A1+           
            25-01-19  CRISIL A1+           
Fixed Deposits  FD  0.00  FAAA/Stable  20-01-20  FAAA/Stable  24-09-19  FAAA/Stable  24-08-18  FAAA/Stable  07-12-17  FAAA/Stable  FAAA/Stable 
            13-08-19  FAAA/Stable      24-10-17  FAAA/Stable   
            17-05-19  FAAA/Stable           
            12-04-19  FAAA/Stable           
            20-03-19  FAAA/Stable           
            25-01-19  FAAA/Stable           
Inflation-linked Capital-indexed Non-Convertible Debenture  LT  100.00
15-04-20 
CRISIL AAA/Stable  20-01-20  CRISIL AAA/Stable  24-09-19  CRISIL AAA/Stable  24-08-18  CRISIL AAA/Stable  07-12-17  CRISIL AAA/Stable  CRISIL AAA/Stable 
            13-08-19  CRISIL AAA/Stable      24-10-17  CRISIL AAA/Stable   
            17-05-19  CRISIL AAA/Stable           
            12-04-19  CRISIL AAA/Stable           
            20-03-19  CRISIL AAA/Stable           
            25-01-19  CRISIL AAA/Stable           
Non Convertible Debentures  LT  7750.00
15-04-20 
CRISIL AAA/Stable  20-01-20  CRISIL AAA/Stable  24-09-19  CRISIL AAA/Stable  24-08-18  CRISIL AAA/Stable  07-12-17  CRISIL AAA/Stable  CRISIL AAA/Stable 
            13-08-19  CRISIL AAA/Stable      24-10-17  CRISIL AAA/Stable   
            17-05-19  CRISIL AAA/Stable           
            12-04-19  CRISIL AAA/Stable           
            20-03-19  CRISIL AAA/Stable           
            25-01-19  CRISIL AAA/Stable           
Short Term Debt  ST                  24-10-17  CRISIL A1+  CRISIL A1+ 
Fund-based Bank Facilities  LT/ST  95000.00  CRISIL AAA/Stable  20-01-20  CRISIL AAA/Stable  24-09-19  CRISIL AAA/Stable  24-08-18  CRISIL AAA/Stable  07-12-17  CRISIL AAA/Stable  CRISIL AAA/Stable 
            13-08-19  CRISIL AAA/Stable      24-10-17  CRISIL AAA/Stable   
            17-05-19  CRISIL AAA/Stable           
            12-04-19  CRISIL AAA/Stable           
            20-03-19  CRISIL AAA/Stable           
            25-01-19  CRISIL AAA/Stable           
Non Fund-based Bank Facilities  LT/ST  15000.00  CRISIL AAA/Stable  20-01-20  CRISIL AAA/Stable  24-09-19  CRISIL AAA/Stable    --    --  -- 
All amounts are in Rs.Cr.
Annexure - Details of various bank facilities
Current facilities Previous facilities
Facility Amount (Rs.Crore) Rating Facility Amount (Rs.Crore) Rating
Fund-Based Facilities 10000 CRISIL AAA/Stable Fund-Based Facilities 10000 CRISIL AAA/Stable
Non-Fund Based Limit 15000 CRISIL AAA/Stable Non-Fund Based Limit 15000 CRISIL AAA/Stable
Working Capital Facility 85000 CRISIL AAA/Stable Working Capital Facility 85000 CRISIL AAA/Stable
Total 110000 -- Total 110000 --
Links to related criteria
CRISILs Approach to Financial Ratios
CRISILs Bank Loan Ratings - process, scale and default recognition
Rating criteria for manufaturing and service sector companies
Rating Criteria for Construction Industry
Rating Criteria for Engineering Sector
CRISILs Criteria for Consolidation
CRISILs Criteria for rating short term debt

For further information contact:
Media Relations
Analytical Contacts
Customer Service Helpdesk
Saman Khan
Media Relations
CRISIL Limited
D: +91 22 3342 3895
B: +91 22 3342 3000
saman.khan@crisil.com

Naireen Ahmed
Media Relations
CRISIL Limited
D: +91 22 3342 1818
B: +91 22 3342 3000
naireen.ahmed@crisil.com

Manish Kumar Gupta
Senior Director - CRISIL Ratings
CRISIL Limited
B:+91 124 672 2000
manish.gupta@crisil.com


Ankit Hakhu
Director - CRISIL Ratings
CRISIL Limited
D:+91 124 672 2107
ankit.hakhu@crisil.com


Vignesh Srinivasan
Rating Analyst - CRISIL Ratings
CRISIL Limited
B:+91 22 3342 3000
Vignesh.Srinivasan@crisil.com
Timings: 10.00 am to 7.00 pm
Toll free Number:1800 267 1301

For a copy of Rationales / Rating Reports:
CRISILratingdesk@crisil.com
 
For Analytical queries:
ratingsinvestordesk@crisil.com


 

Note for Media:
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 (whether directly or indirectly) of its rationales for consideration or otherwise through any media including websites, portals etc.


About CRISIL Limited

CRISIL is a leading agile and innovative, global analytics company driven by its mission of making markets function better. We are India’s foremost provider of ratings, data, research, analytics and solutions. A strong track record of growth, culture of innovation and global footprint sets us apart. We have delivered independent opinions, actionable insights, and efficient solutions to over 1,00,000 customers.
 
We are majority owned by S&P Global Inc., a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide.
 
For more information, visit www.crisil.com 


Connect with us: TWITTER | LINKEDIN | YOUTUBE | FACEBOOK

About CRISIL Ratings
CRISIL Ratings is part of CRISIL Limited (“CRISIL”). We pioneered the concept of credit rating in India in 1987. CRISIL is registered in India as a credit rating agency with the Securities and Exchange Board of India (“SEBI”). With a tradition of independence, analytical rigour and innovation, CRISIL sets the standards in the credit rating business. We rate the entire range of debt instruments, such as, bank loans, certificates of deposit, commercial paper, non-convertible / convertible / partially convertible bonds and debentures, perpetual bonds, bank hybrid capital instruments, asset-backed and mortgage-backed securities, partial guarantees and other structured debt instruments. We have rated over 24,500 large and mid-scale corporates and financial institutions. CRISIL has also instituted several innovations in India in the rating business, including rating municipal bonds, partially guaranteed instruments and microfinance institutions. We also pioneered a globally unique rating service for Micro, Small and Medium Enterprises (MSMEs) and significantly extended the accessibility to rating services to a wider market. Over 1,10,000 MSMEs have been rated by us.


CRISIL PRIVACY
 
CRISIL respects your privacy. We may use your contact information, such as your name, address, and email id to fulfil your request and service your account and to provide you with additional information from CRISIL.For further information on CRISIL’s privacy policy please visit www.crisil.com.


DISCLAIMER

This disclaimer forms part of and applies to each credit rating report and/or credit rating rationale that we provide (each a “Report”). For the avoidance of doubt, the term “Report” includes the information, ratings and other content forming part of the Report. The Report is intended for the jurisdiction of India only. This Report does not constitute an offer of services. Without limiting the generality of the foregoing, nothing in the Report is to be construed as CRISIL providing or intending to provide any services in jurisdictions where CRISIL does not have the necessary licenses and/or registration to carry out its business activities referred to above. Access or use of this Report does not create a client relationship between CRISIL and the user.

We are not aware that any user intends to rely on the Report or of the manner in which a user intends to use the Report. In preparing our Report we have not taken into consideration the objectives or particular needs of any particular user. It is made abundantly clear that the Report is not intended to and does not constitute an investment advice. The Report is not an offer to sell or an offer to purchase or subscribe for any investment in any securities, instruments, facilities or solicitation of any kind or otherwise enter into any deal or transaction with the entity to which the Report pertains. The Report should not be the sole or primary basis for any investment decision within the meaning of any law or regulation (including the laws and regulations applicable in the US).

Ratings from CRISIL Rating are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell any securities / instruments or to make any investment decisions. Any opinions expressed here are in good faith, are subject to change without notice, and are only current as of the stated date of their issue. CRISIL assumes no obligation to update its opinions following publication in any form or format although CRISIL may disseminate its opinions and analysis. CRISIL rating contained in the Report is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment or other business decisions. The recipients of the Report should rely on their own judgment and take their own professional advice before acting on the Report in any way.CRISIL or its associates may have other commercial transactions with the company/entity.

Neither CRISIL nor its affiliates, third party providers, as well as their directors, officers, shareholders, employees or agents (collectively, “CRISIL Parties”) guarantee the accuracy, completeness or adequacy of the Report, and no CRISIL Party shall have any liability for any errors, omissions, or interruptions therein, regardless of the cause, or for the results obtained from the use of any part of the Report. EACH CRISIL PARTY DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall any CRISIL Party be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of any part of the Report even if advised of the possibility of such damages.

CRISIL Ratings may receive compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of the instruments, facilities, securities or from obligors. CRISIL’s public ratings and analysis as are required to be disclosed under the regulations of the Securities and Exchange Board of India (and other applicable regulations, if any) are made available on its web sites, www.crisil.com (free of charge). Reports with more detail and additional information may be available for subscription at a fee – more details about CRISIL ratings are available here: www.crisilratings.com.

CRISIL and its affiliates do not act as a fiduciary. While CRISIL has obtained information from sources it believes to be reliable, CRISIL does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives and / or relies in its Reports. CRISIL keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of the respective activity. As a result, certain business units of CRISIL may have information that is not available to other CRISIL business units. CRISIL has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process. CRISIL has in place a ratings code of conduct and policies for analytical firewalls and for managing conflict of interest. For details please refer to: https://www.crisil.com/en/home/our-businesses/ratings/regulatory-disclosures/highlighted-policies.html

CRISIL’s rating criteria are generally available without charge to the public on the CRISIL public web site, www.crisil.com. For latest rating information on any instrument of any company rated by CRISIL you may contact CRISIL RATING DESK at CRISILratingdesk@crisil.com, or at (0091) 1800 267 1301.

This Report should not be reproduced or redistributed to any other person or in any form without a prior written consent of CRISIL.

All rights reserved @ CRISIL