Misleading Press Release By CARE Ratings (CARE) On Their Website Concerning FD Rating Of The Company

The CARE's Press Release is totally misleading, wrong/ false and doesn't indicate the true financial position of the company, specifically in view of the factual position attached herewith:

9 days ago

PRESS RELEASE

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Sentiments detected

Positive 20
  • A (FD); Stable; ISSUER NOT COOPERATING to CARE BB+; Stabl e; ISSUER NOT COOPERATING.

  • I CRISIL A/Positive (Mig rated from 'FA+/Posltive')

  • CRISIL Ratings has migrated its rating on the fixed deposit programme of The Sukhjit Starch and Chemicals Limited to 'CRISIL

  • A/Positive' from 'FA+/Positive'.

  • A Positive I I CR/SIL

  • A 1 assigned ' to Bank Debt; 'F A+

  • The ratlngs reflect the strong market position of SSCL as leading a manufacturer of starch and its derivatives in the domestic maize industry.

  • The financial risk profile remains healthy due to strong debt protection metrics.

  • These strengths are partially offset by susceptibility of the operating margin to volatility of raw material prices and regulatory changes.

  • The positive outlook reflects the expectation of healthy ramp-up of operations over the medium term supported by better utilisation of the recently commissioned capacity.

  • With limited capital expenditu r e (capex) plan for the medium term, the rising will accrual help improve financial risk the with profile continuous reduction in debt

  • Strong market position in domestic maize processing Industry

  • The company was established in 1943 and ha a strong track record of operations.

  • Installed capacity was enhanced by 600 TPD in November 2020 in SMFP.

  • While utilisation dropped to around 74% in fiscal 2021 due to the pandemic, business volume has increased this fiscal and should result in better capacity utilisation.

  • The promoters' experience of several decades in the starch industry, their strong understanding of market dynamics, and healthy relationships with customers and s. uppliers will continue to support the strong business risk profile.

  • However, the operating margin improved to 9.2% in fiscal 2021 from 7 .1 in % the previous fiscal due to moderation in raw material prices.

  • The revenue increased 73% on-year in the first nine months of fiscal 2022 due to incremental sales from the maize 600 grinding TPD capacity commissioned in November 202 .0 supported .by: .hea)thy

  • The economies of scale and increasing presence in the value-added products supported the improvement in the operating margin to 12.9% in the first nine months of fiscal 2022 from 8.73% in the corresponding period of the previous fiscal.

  • (J u will kindly appreciate that the NOCs from all depositors (i.e. for Rs. 70,32,53,000/- ) (Rs.

Negative 2
  • We are exploring legal action against the CRA for damaging the reputation of the Company by their totally unethical & unfair actions since our request for withdrawal of rating.

  • The revenue declined 12.4% in fiscal 2021 as operations impacted in were the first quarter due to the nationwide lockdown to curb the spread of Covid-19.

Mentioned Phrases & Organizations

Important keywords detected (20+)

rating (35)
ratings (24)
crisil (18)
care (15)
fixed (13)
deposits (9)
starch (9)
term (9)
positive (8)
debt (7)
financial (7)
risk (7)
sukhjit (7)
withdrawal (7)
nocs (7)
capacity (7)
crisil ratings (7)
cooperating (6)
the (6)
position (6)

Organizations identified (10+)

CRISIL (12)
SSCL (6)
SUKHJIT (3)
CRISIL Ratings (3)
SARAI (2)
PHAGWARA (2)
KAPURTHALA (2)
CRA (2)
AMAN (2)
SSC (1)

Tables extracted (1)

Total Bank Loan Facilities RatedRs.380 Crore
Long Term RatingCRISIL A!Posltive
Short Term RatingCRISILA1

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