April 27, 2015
Mumbai
Sonal Adhesives Limited
 
Ratings Suspended
 
Total Bank Loan Facilities Rated Rs.222 Million
Long Term Rating Suspended
Short Term Rating Suspended
(Refer to Annexure 1 for Facility-wise details)

CRISIL has suspended its ratings on the bank facilities of Sonal Adhesives Limited (SAL). The suspension of ratings is on account of non-cooperation by SAL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SAL is yet to provide adequate information to enable CRISIL to assess SAL'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

Promoted by Mr. Mohan Arora in 1981, the Mumbai-based SAL became a public company in 1994. SAL manufactures self-adhesive tapes, acrylic adhesives, and synthetic ropes.

Annexure 1 - Details of various bank facilities
Current facilities Previous facilities
Facility Amount (Rs.Million) Rating Facility Amount (Rs.Million) Rating
Cash Credit^ 110 Suspended Cash Credit^ 110 CRISIL BB-/Negative
Letter of Credit 112 Suspended Letter of Credit 112 CRISIL A4
Total 222 -- Total 222 --
^Interchangeable with Export Packing Credit/Packing Credit in foreign currency upto Rs. 58.0 million.
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April 27, 2015

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