| The India Cements Limited | ||||||
| Issuer not cooperating, based on best-available information; Ratings Revised to ‘CRISIL BB/Stable/CRISIL A4+ Issuer not cooperating'; Ratings Withdrawn | ||||||
| Rating Action | ||||||
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| 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 press release did not provide the requisite information needed to conduct the rating exercise and is therefore classified as 'non cooperative'. |
Non cooperation by Issuer CRISIL Ratings has been consistently following up with The India Cements Ltd (ICL) for obtaining information through letters and emails dated January 3, February 3, 2023, February 17, 2023 and February 23, 2023; among others, apart from telephonic communication. However, the issuer has remained non-cooperative.
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 entity. Such non-cooperation by a rated entity may deteriorate its credit risk profile. Ratings with the 'Issuer Not Cooperating' suffix lack a forward-looking component |
Detailed Rationale Despite repeated attempts to engage with the management of ICL, CRISIL Ratings has not received requisite information on either the financial performance or strategic intent of the company, which restricts the ability of CRISIL Ratings to take a forward looking view on the credit quality of the entity. CRISIL Ratings believes the rating action on ICL is consistent with 'Assessing Information Adequacy Risk'.
Therefore, based on best-available information, the ratings have been migrated to 'CRISIL BB/Stable/CRISIL A4+ Issuer Not Cooperating' from ‘CRISIL BBB/Negative/CRISIL A3+ Issuer Not Cooperating’.
Subsequently, CRISIL Ratings has withdrawn its ratings on the bank facilities of ICL at the request of the company and on receipt of no-objection certificates/ no dues certificates from its banks. The rating action is in line with the CRISIL Ratings policy on withdrawal of ratings on bank loans. |
Analytical Approach CRISIL Ratings has considered the consolidated business and financial risk profiles of ICL and its subsidiaries. CRISIL Ratings has also combined the financials of Coromandel Sugar Ltd (associate company of ICL) due to common promoters and financial linkages in the form of loans, advances and corporate guarantee extended by ICL and Sri Saradha Logistics Pvt Ltd (SSLPL) due to significant loans and advances extended by ICL and linkages in the form of SSLPL holding stakes in several ICL group companies, including ICL. Collectively, these entities are referred to as the ICL group.
The ICL’s networth has been adjusted for intangible assets, Ind-AS reserves, revaluation reserve and also for circular investment (investment in ICL by subsidiaries).
Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation. |
About the Company Established in 1946 and currently headed by Mr N Srinivasan (managing director and CEO), ICL is one of the leading cement manufacturers in South India with established presence in all five states in the region. Its first cement plant in Sankarnagar, Tamil Nadu, was commissioned in 1949. Since then, it has grown in size, mostly through the inorganic route by acquiring cement plants of Coromandel Cement Ltd and Cement Corporation of India in Andhra Pradesh. ICL also acquired other cement companies -- Raasi Cement Ltd and Visaka Cement Industry Ltd – that it were subsequently merged with the company. ICL has capacity spread across 10 different manufacturing units (including two split grinding units) in Tamil Nadu, Andhra Pradesh, Telangana, Maharashtra and Rajasthan. It manufactures cement (Ordinary Portland Cement and Portland Pozzolana Cement in 37:67 mix) under the Coromandel, Sankar and Raasi brands. The company has several captive power sources totalling 195 megawatt. |
Any other information: Not applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)*
*Issuer did not cooperate; based on best-available information |
Annexure – List of entities consolidated
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| Annexure - Rating History for last 3 Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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* - Issuer did not cooperate; based on best-available information
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| Annexure - Details of Bank Lenders & Facilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Criteria Details
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