September 17, 2012

Mumbai

Laffans Petrochemicals Limited

Ratings Suspended

Total Bank Loan Facilities Rated	Rs.700 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 Laffans Petrochemicals Ltd. (Laffans). The suspension of ratings is on account of non-cooperation by Laffans with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Laffans is yet to provide adequate information to enable CRISIL to assess Laffans’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

Set up in 1991 by the Seth family, Laffans manufactures ethylene oxide derivatives (ethoxylates, glycol ethers, and amines) at its plant in Ankleshwar. The derivatives are specialty intermediate chemicals that are used in a variety of industries, including paints, textiles, detergents, agrochemicals, pharmaceuticals, and personal care.

Annexure 1 - Details of various bank facilities

Current facilities			Previous facilities
Facility	Amount (Rs. Million)	Rating	Facility	Amount (Rs. Million)	Rating
Cash Credit*	300	Suspended	Cash Credit*	300	CRISIL BBB+ (Continues to be on ‘Rating Watch with Developing Implications’)
Letter of credit & Bank Guarantee	250	Suspended	Letter of credit & Bank Guarantee	250	CRISIL A2 (Continues to be on ‘Rating Watch with Developing Implications’)
Proposed Long-Term Bank Loan Facility	140	Suspended	Proposed Long-Term Bank Loan Facility	140	CRISIL BBB+ (Continues to be on ‘Rating Watch with Developing Implications’)
Proposed Short-Term Bank Loan Facility	10	Suspended	Proposed Short-Term Bank Loan Facility	10	CRISIL A2 (Continues to be on ‘Rating Watch with Developing Implications’)
Total	700	--	Total	700	--

*Fully Interchangeable with Packing Credit

Media Contacts	Analytical Contacts	CRISIL Rating Desk
Shweta Ramchandani Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1886 E-mail: shweta.ramchandani@crisil.com Tanuja Abhinandan Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1818 Email: tanuja.abhinandan@crisil.com	Subodh K Rai Senior Director - CRISIL Ratings Tel: +91-0124-672 2000 Email: subodh.rai@crisil.com	Tel: +91-22-3342 3047/3342 3064 Email:CRISILratingdesk@crisil.com

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Last updated: April 30, 2012

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