November 18, 2013

Mumbai

Dynamic Industries Limited

Ratings Suspended

Total Bank Loan Facilities Rated
Rs.219 Million
Long-Term Rating
Suspended
Short-Term Rating
Suspended

(Refer to Annexure 1 for details on facilities)

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

DIL was incorporated in 1989 by Mr. Harin D Mamlatdarna and Mr. Deepak N Choksi. The company manufactures direct and acid dyes which are used in the leather, textiles, and paper industry. It has two manufacturing facilities in Vatva (Gujarat) with total capacity of 3200 tonnes per annum, with utilisation of 75 per cent. DIL also trades in colour dyes that are not manufactured at its own plant. Exports account for around 60 per cent of the company’s total revenues.

Annexure 1 - Details of various bank facilities

Current facilities
Previous facilities
Facility
Amount
(Rs. Million)
Rating
Facility
Amount
(Rs. Million)
Rating
Bank Guarantee
3
Suspended
Bank Guarantee
3
CRISIL A4+
Bill Discounting
14.5
Suspended
Bill Discounting
14.5
CRISIL A4+
Cash Credit
10
Suspended
Cash Credit
10
CRISIL BB/Stable
Export Packing Credit
105
Suspended
Export Packing Credit
105
CRISIL A4+
Letter of Credit^
65
Suspended
Letter of Credit^
65
CRISIL A4+
Proposed Long-Term Bank Loan Facility
5
Suspended
Proposed Long-Term Bank Loan Facility
5
CRISIL BB/Stable
Rupee Term Loan
16.5
Suspended
Rupee Term Loan
16.5
CRISIL BB/Stable
Total
219
--
Total
219
--

^Includes sub-limit of Rs.20.0 million of Buyers credit.

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Communications and Brand Management
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Jyoti Parmar
Communications and Brand Management
CRISIL Limited
Tel: +91-22- 3342 1835
E-mail: jyoti.parmar@crisil.com
Vasudevan R
Director - CRISIL Ratings
Tel: +91-44-6656 3100
Email:vasudevan.r@crisil.com

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Last updated: May, 2013

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November 18, 2013

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