Rating Rationale

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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Tanuja Abhinandan Communications and Brand Management CRISIL Limited Phone: +91 22 3342 1818 Email:tanuja.abhinandan@crisil.com Jyoti Parmar Communications and Brand Management CRISIL Limited Phone: +91 22 3342 1835 E-mail: jyoti.parmar@crisil.com	Arvind Rao Director - CRISIL Ratings Phone:+91 22 4097 8278 Email: arvind.rao@crisil.com Aditya Munshi Associate Director - CRISIL Ratings Phone:+91 22 4097 8105 Email: aditya.munshi@crisil.com	Timings: 10.00 am TO 7.00 pm Toll free Number:1800 267 1301 Email: CRISILratingdesk@crisil.com

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Last updated: August, 2014

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April 27, 2015	http://www.crisil.com