November 11, 2013

Mumbai

Stylam Industries Limited

Ratings Suspended

Total Bank Loan Facilities Rated
Rs.250 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 Stylam Industries Limited (SIL). The suspension of ratings is on account of non-cooperation by SIL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SIL is yet to provide adequate information to enable CRISIL to assess SIL’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 Group

CRISIL has combined the financial risk profiles of SIL and Golden Chemtech Ltd (GCL). This is because the two entities together referred to herein as the Stylam group, have the same management team and financial fungibility.

For 2011-12, Stylam reported a profit after tax (PAT) of Rs.33.9 million on net sales of Rs.1067.1 million, against a PAT of Rs.22.6 million on net sales of Rs.888.9 million for 2010-11.

Annexure 1 - Details of various bank facilities

Current facilities
Previous facilities
Facility
Amount
(Rs. Million)
Rating
Facility
Amount
(Rs. Million)
Rating
Bank Guarantee
1
Suspended
Bank Guarantee
1
CRISIL A3
Cash Credit
40
Suspended
Cash Credit
40
CRISIL BBB-/Negative
Corporate Loan
15
Suspended
Corporate Loan
15
CRISIL BBB-/Negative
Packing Credit
112.7
Suspended
Packing Credit
112.7
CRISIL A3
Term Loan
81.3
Suspended
Term Loan
81.3
CRISIL BBB-/Negative
Total
250
--
Total
250
--

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CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services. We are India's leading ratings agency. We are also the foremost provider of high-end research to the world's largest banks and leading corporations.

About CRISIL Ratings
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Last updated: May, 2013

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November 11, 2013

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