Rating Rationale
November 11, 2019 | Mumbai
Sicagen India Limited
Issuer not cooperating, based on best-available information; Ratings continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'; Ratings withdrawn
 
Rating Action
Total Bank Loan Facilities Rated Rs.90 Crore
Long Term Rating CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Withdrawn)*
Short Term Rating CRISIL A4 (ISSUER NOT COOPERATING; Rating Withdrawn)*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 Sicagen India Limited (SIL; part of the Sicagen group) for obtaining information through letters and emails dated July 09, 2019, September 23, 2019 and September 27, 2019, 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as they are arrived at without any management interaction and are based on best available or limited or dated information on the company'.

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 SIL. This restricts CRISIL's ability to take a forward SIL is consistent with 'Scenario 4' outlined in the 'Framework for Assessing Consistency of Information. Based on the last available information, the rating on bank facilities of SIL continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'.

CRISIL has withdrawn its ratings on the bank facilities of SIL on the request of the company and receipt of a no objection certificate from its bank. The rating action is in line with CRISIL's policy on withdrawal of its ratings on bank loans.

Analytical Approach

For arriving at its ratings, CRISIL has combined the business and financial risk profiles of SIL and its wholly-owned subsidiaries, WCPL, Danish Steel Cluster Pvt Ltd (DSCPL) and South India House Estates and Properties Ltd. This is because all these entities, collectively referred to as the Sicagen group, have high management, operational and financial integration.

Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation.

About the Group

SIL was incorporated in June 2004 and demerged from Sical Logistics Ltd with effect from October 2006. The Chennai-based company trades in building material and governing instruments, and also manufactures drums, cables, boats, and specialty chemicals. It is part of the MA Chidambaram group, a large business conglomerate. The company is listed on the Bombay Stock Exchange and National Stock Exchange.
 
Wilson Cables Pvt Ltd (WCPL) is a Singapore-based manufacturer of cables used in construction and industrial applications.
 
DSCPL is a Bengaluru-based manufacturer of specialty steel parts and assemblies.

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 Name of Instrument Date of Allotment Coupon
Rate (%)
Maturity Date Issue
Size
(Rs.Cr)
Rating Assigned with Outlook
NA Bank Guarantee NA NA NA 8 Withdrawn/Issuer Not Cooperating
NA Cash Credit NA NA NA 37 Withdrawn/Issuer Not Cooperating
NA Channel Financing NA NA NA 32 Withdrawn/Issuer Not Cooperating
NA Proposed Long Term Bank Loan Facility NA NA NA 13 Withdrawn/Issuer Not Cooperating
*Issuer did not cooperate; based on best-available information
 
Annexure - List of Entities Consolidated
Names of Entities Consolidated Extent of Consolidation Rationale for Consolidation
Wilson Cables Pvt Ltd Full All of them have high management, operational and financial integration
Danish Steel Cluster Pvt Ltd (DSCPL) Full All of them have high management, operational and financial integration
South India House Estates and Properties Ltd. Full All of them have high management, operational and financial integration
Annexure - Rating History for last 3 Years
  Current 2019 (History) 2018  2017  2016  Start of 2016
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund-based Bank Facilities  LT/ST  82.00  Withdrawn/ Withdrawn (Issuer Not Cooperating)*  24-10-19  CRISIL B+/Stable/ CRISIL A4 (Issuer Not Cooperating)*  31-07-18  CRISIL BB/Stable/ CRISIL A4+  14-07-17  CRISIL BBB-/Stable/ CRISIL A3  29-11-16  CRISIL BBB/Negative/ CRISIL A3+  CRISIL BBB/Stable/ CRISIL A3+ 
                    23-06-16  CRISIL BBB/Negative/ CRISIL A3+   
Non Fund-based Bank Facilities  LT/ST  8.00  Withdrawn (Issuer Not Cooperating)*  24-10-19  CRISIL A4 (Issuer Not Cooperating)*  31-07-18  CRISIL A4+  14-07-17  CRISIL A3  29-11-16  CRISIL A3+  CRISIL A3+ 
                    23-06-16  CRISIL A3+   
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
Bank Guarantee 8 Withdrawn/Issuer Not Cooperating Bank Guarantee 8 CRISIL A4/Issuer Not Cooperating
Cash Credit 37 Withdrawn/Issuer Not Cooperating Cash Credit 37 CRISIL B+/Stable/Issuer Not Cooperating
Channel Financing 32 Withdrawn/Issuer Not Cooperating Channel Financing 32 CRISIL A4/Issuer Not Cooperating
Proposed Long Term Bank Loan Facility 13 Withdrawn/Issuer Not Cooperating Proposed Long Term Bank Loan Facility 13 CRISIL B+/Stable/Issuer Not Cooperating
Total 90 -- Total 90 --
Links to related criteria
CRISILs Approach to Financial Ratios
CRISILs Bank Loan Ratings - process, scale and default recognition
Framework for Assessing Information Adequacy Risk
Rating criteria for manufaturing and service sector companies
Rating Criteria for Retailing Industry
CRISILs Criteria for Consolidation
CRISILs Criteria for rating short term debt

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