ICRA Reaffirms Short-Term Rating for Sudarshan North America, Inc.

ICRA, a rating agency, has reaffirmed the short-term rating of ICRA A1(SO) for the fund-based facilities of Sudarshan North America, Inc. (SNA), aggregating to USD 1.5 million. The rating is credit-enhanced by an unconditional and irrevocable corporate guarantee issued by Sudarshan Chemical Industries Limited (SCIL). SNA's operations have been scaling up in recent periods, driven by SCIL's aim to increase its global presence in the Pigments business.

Key Takeaways:

• ICRA has reaffirmed the short-term rating of ICRA A1(SO) for SNA's fund-based facilities aggregating to USD 1.5 million.
• The rating is credit-enhanced by an unconditional and irrevocable corporate guarantee issued by SCIL.
• SNA's operations have been scaling up in recent periods, driven by SCIL's aim to increase its global presence in the Pigments business.
• SNA was incorporated on 29th April 2009 in USA and is a wholly-owned subsidiary of Sudarshan Europe B.V. and a step-down subsidiary of SCIL.
• As of FY 2013, SNA reported net losses of Rs. 1.39 crore on an operating income of Rs. 41.05 crore.
• SCIL has a production capacity of about 24,660 MTPA for Pigments and 3,520 MTPA for Agro Chemicals.
• SCIL has reported Profit after Tax (PAT) of Rs. 21.06 crore on an operating income of Rs. 785.25 crore for FY 2013.

Statistics:

• USD 1.5 million: the total amount of SNA's fund-based facilities rated by ICRA.
• ICRA A1(SO): the short-term rating assigned to SNA's fund-based facilities.
• Rs. 1.39 crore: the net losses reported by SNA as of FY 2013.
• Rs. 41.05 crore: the operating income reported by SNA as of FY 2013.
• 24,660 MTPA: the production capacity of SCIL for Pigments.
• 3,520 MTPA: the production capacity of SCIL for Agro Chemicals.

Sources:

• ICRA Ratings for Sudarshan North America, Inc.
• Sudarshan Chemical Industries Limited Annual Report for FY 2013.