Rating Rationale
March 31, 2023 | Mumbai
Nilachal Refractories Limited
Issuer not cooperating, based on best-available information; Rating continues to be ‘CRISIL D Issuer not cooperating'
 
Rating Action
Total Bank Loan Facilities RatedRs.46.25 Crore
Long Term RatingCRISIL D (ISSUER NOT COOPERATING*)
Note: None of the Directors on CRISIL Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings.
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 Ratings has been consistently following up with Nilachal Refractories Limited (NRL) for obtaining information through letters and emails dated December 24, 2022 and February 28, 2023 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 Ratings failed to receive any information on either the financial performance or strategic intent of NRL, which restricts CRISIL Ratings’ ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on NRL is consistent with ‘Assessing Information Adequacy Risk’. Based on the last available information, the ratings on bank facilities of NRL continues to be ‘CRISIL D Issuer Not Cooperating’.

About the Company

Incorporated in 1977, NRL manufactures refractory bricks and monolithic such as castables, plastic-based ramming mass, and gunning materials that are used in linings for furnaces, kilns, and reactors. In 2002, the company was referred to the Board for Industrial and Financial Reconstruction (BIFR); it came out of BIFR's purview in November 2010. Manufacturing unit was closed for nearly three years until December 2005. Current management comprising Mr Bhagwati Prasad Jalan, Mr Vimal Prakash, and Mr Vijay Kumar Agarwal took over the company in December 2005 and operations restarted in April 2006. Facilities in Dhenkanal, Orissa, have combined installed production capacity of 28,000 tonne per annum.

Key Financial Indicators

 

Q3 FY23

FY22

Revenue

0.17

1.98

Profit After Tax (PAT)

(0.2)

(1.66)

Operating Profit Margin (OPM)

(117.65)%

(32.32)%

Net Profit Margin (NPM)

(117.65)%

(83)%

Source: BSE

Any other information: Not applicable

Note on complexity levels of the rated instrument:
CRISIL Ratings` 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.

CRISIL Ratings will disclose complexity level for all securities - including those that are yet to be placed - based on available information. The complexity level for instruments may be updated, where required, in the rating rationale published subsequent to the issuance of the instrument when details on such features are available.

For more details on the CRISIL Ratings` complexity levels please visit www.crisilratings.com. Users may also call the Customer Service Helpdesk with queries on specific instruments.

Annexure - Details of Instrument(s)*

ISIN

Name of Instrument

Date of Allotment

Coupon
Rate (%)

Maturity Date

Issue
Size
(Rs. Cr)

Complexity Levels

Rating Assigned with Outlook

NA

Proposed Long Term Bank Loan Facility

NA

NA

NA

46.25

NA

CRISIL D/Issuer Not Cooperating

*Issuer did not cooperate; based on best-available information

Annexure - Rating History for last 3 Years
  Current 2023 (History) 2022  2021  2020  Start of 2020
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund Based Facilities LT 46.25 CRISIL D (Issuer Not Cooperating)*   -- 31-01-22 CRISIL D (Issuer Not Cooperating)*   -- 30-11-20 CRISIL D (Issuer Not Cooperating)* CRISIL D (Issuer Not Cooperating)*
All amounts are in Rs.Cr.
* - Issuer did not cooperate; based on best-available information
 
Annexure - Details of Bank Lenders & Facilities
Facility Amount (Rs.Crore) Rating
Proposed Long Term Bank Loan Facility 46.25 CRISIL D (Issuer Not Cooperating)*
* - Issuer did not cooperate; based on best-available information
Criteria Details
Links to related criteria
CRISILs Approach to Financial Ratios
Rating criteria for manufaturing and service sector companies
CRISILs Bank Loan Ratings - process, scale and default recognition
Assessing Information Adequacy Risk

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