Rating Rationale
July 25, 2024 | Mumbai
Sonam Limited
Issuer not cooperating, based on best-available information; Rating migrated to ‘CRISIL BB+/Stable Issuer not cooperating'
 
Rating Action
Total Bank Loan Facilities RatedRs.27 Crore
Long Term RatingCRISIL BB+ /Stable (ISSUER NOT COOPERATING*; Migrated from ‘CRISIL BBB+/Stable’)
Note: None of the Directors on CRISIL Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings.
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 rating rationale did not provide the requisite information needed to conduct the rating exercise or did not provide the No Default Statements (NDS) for the last three months and is therefore classified as 'non cooperative'.

Non cooperation by Issuer

CRISIL Ratings has been consistently following up with Sonam Limited (SCL) for obtaining information through letter and email dated July 10, 2024 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.’

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of SCL, which restricts CRISIL Ratings’ ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SCL is consistent with ‘Assessing Information Adequacy Risk’. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of SCL to 'CRISIL BB+/Stable Issuer not cooperating' from ‘CRISIL BBB-/Stable’.

About the Company

Incorporated in 2001 by Mr Jayesh Shah and family, SCL manufactures wall clocks, table/alarm clocks, digital clocks and clock movements at its facility in Morbi, Gujarat.

Key Financial Indicators

 Rs in Cr

Mar’24 (Q4FY24)

FY2024

Revenue

22.20

87.28

Profit After Tax (PAT)

1.68

5.52

Operating Profit Margin (OPM)

14.20%

13.84%

Net Profit Margin (NPM)

7.54%

6.29%

Source: NSE

Any other information: Not applicable

Note on complexity levels of the rated instrument:
CRISIL Ratings` complexity levels are assigned to various types of financial instruments and are included (where applicable) in the 'Annexure - Details of Instrument' in this Rating Rationale.

CRISIL Ratings will disclose complexity level for all securities - including those that are yet to be placed - based on available information. The complexity level for instruments may be updated, where required, in the rating rationale published subsequent to the issuance of the instrument when details on such features are available.

For more details on the CRISIL Ratings` complexity levels please visit www.crisilratings.com. 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)

Complexity Levels

Rating Assignedwith Outlook

NA

Cash Credit&

NA

NA

NA

17

NA

CRISIL BB+/Stable/Issuer Not Cooperating

NA

Term Loan

NA

NA

Not

Available

10

NA

CRISIL BB+/Stable/Issuer Not Cooperating

*Issuer did not cooperate; based on best-available information

& - Fully interchangeable with EPC

Annexure - Rating History for last 3 Years
  Current 2024 (History) 2023  2022  2021  Start of 2021
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund Based Facilities LT 27.0 CRISIL BB+ /Stable(Issuer Not Cooperating)*   -- 03-05-23 CRISIL BBB-/Stable 25-05-22 CRISIL BBB-/Stable 18-03-21 CRISIL BBB-/Stable CRISIL BB+ /Stable(Issuer Not Cooperating)*
      --   --   --   -- 05-02-21 Withdrawn (Issuer Not Cooperating)* --
All amounts are in Rs.Cr.
* - Issuer did not cooperate; based on best-available information
 
Annexure - Details of Bank Lenders & Facilities
Facility Amount (Rs.Crore) Name of Lender Rating
Cash Credit& 17 Bank of India CRISIL BB+ /Stable(Issuer Not Cooperating)*
Term Loan 10 Bank of India CRISIL BB+ /Stable(Issuer Not Cooperating)*
* - Issuer did not cooperate; based on best-available information
& - Fully interchangeable with EPC
Criteria Details
Links to related criteria
CRISILs Approach to Financial Ratios
Rating criteria for manufaturing and service sector companies
CRISILs Bank Loan Ratings - process, scale and default recognition
Assessing Information Adequacy Risk
Rating Criteria for Consumer Durable Industry
Understanding CRISILs Ratings and Rating Scales

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