Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Stock Report

| More

India Ratings Places Shree Renuka Sugars on RWN

Posted On: 2019-08-22 23:03:49

India Ratings and Research (Ind-Ra) has placed Shree Renuka Sugars Limited's (SRSL) Long-Term Issuer Rating of 'IND BBB+' on Rating Watch Negative (RWN).

The RWN reflects the persisting uncertainty over the timeframe of resolution of the issue of reclassification of SRSL's account as a non-performing asset (NPA) by its lenders; although this has not had an immediate impact on the company, it could potentially affect SRSL's financial flexibility if unresolved for a longer period.

The re-classification by some of the banks in March 2019 has not impacted the company's liquidity so far, as it continues to receive support from its parent Wilmar Group (Wilmar), (ultimate holding company: Wilmar International Limited) (FY19: INR9.9 billion), in line with Ind-Ra's expectations. However, if the issue is not resolved, Ind-Ra believes it could eventually impact SRSL's financial flexibility due to the company's impaired ability to tie-up additional external funding, as most of its existing lenders have classified the account as NPA in the past five months. SRSL has been servicing all its debt obligations on due dates since the restructuring was implemented on 31 March 2018 and Ind-Ra derives comfort from the assurance given by Wilmar's management's that SRSL remains a strategically important entity for them, and that they would continue to offer financial and operational support to the company in the future.

According to SRSL's lenders a communication was received from the Reserve Bank of India (RBI) with regard to a change in ownership as considered in the resolution plan, suggesting that the former should give consequential effect of the disqualification of the acquirer, as Wilmar was technically a co-promoter prior to the restructuring.

As per the prudential framework for the resolution of stressed assets released by the RBI in June 2019, a restructured account can be upgraded to standard only after at least 10% of the outstanding principal debt as per the resolution plan has been paid and one year has passed from the commencement of the first payment of interest or principal (whichever is later) on the credit facility with the longest period of moratorium. While discussions are on to resolve the asset classification issue, clarity on the outcome is awaited and remains a key monitorable.

Shares of SHREE RENUKA SUGARS LTD. was last trading in BSE at Rs.6.94 as compared to the previous close of Rs. 6.93. The total number of shares traded during the day was 63186 in over 96 trades.

The stock hit an intraday high of Rs. 7.06 and intraday low of 6.72. The net turnover during the day was Rs. 433421.

Source: Equity Bulls

Click here to send ur comments or to

Other Headlines:

Control Print Ltd board approves interim dividend of Rs.3.5 for 2019-20

TVS Motor Company forays into electric mobility with connected and advanced technology scooter 'TVS iQube Electric'

PSP Projects Limited receives work orders of Rs. 357.90 crores

Prabhat Technologies India Ltd updates on inadvertent trading done in shares of promoter

Control Print Ltd consolidated Q3 net profit higher at Rs. 8.81 crore

Chemcrux Enterprises Limited receives award at 4th IPF Industrial Excellence Awards

Pondy Oxides & Chemicals Ltd reports QoQ jump in PAT

DCB Bank Ltd Q3 net profit climbs to Rs. 96.70 crore

CRISIL updates on rating of Jindal Drilling Industries Ltd

SKP Securities Ltd consolidated net profit at Rs. 0.05 crore in Q3

Muthoot Capital Services Ltd Q3 net profit up QoQ to Rs. 18.95 crore

APL Apollo Tubes Ltd consolidated Q3 FY20 net profit surges to Rs. 74.26 crore

Siyaram Silk Mills Ltd consolidated Q3 net profit slides to Rs. 7.63 crore

Indo Cotspin Ltd Q3 net profit at Rs. 0.0334 crore

ICICI Bank Ltd reports consolidated PAT at Rs. 4670.10 crores

Muller & Phipps India Ltd Q3 net profit at Rs. 0.03 crore

Bhageria Industries Ltd posts PAT of Rs. 17.74 crores in Q3

Maruti Suzuki NEXA rolls out Stylish and Sporty Ciaz S

Cybele Industries Ltd Q3 loss at Rs. 0.90 crore

IndiGo launches direct connection between Delhi and Bangkok

mBAJA & eBAJA Design and Technical Evaluation and Dynamic Events held today for BAJA SAEINDIA 2020

Wendt India Ltd announces Q3, 9MFY20 results

ABM Knowledgeware Ltd Q3 consolidated net profit slips to Rs. 3.08 crore

Prestige Estates Projects Ltd consolidated Q3 net profit climbs to Rs. 161.8 crore

EIH Ltd Q3 net profit higher QoQ, YoY

Bank of Baroda reports loss in Q3 FY2020

Eldeco Housing and Industries Ltd announces Q3, 9MFY20 results

BEML CMD gets Most Admired Leader Award

Siemens Ltd to acquire 99.22% in C&S Electric Ltd for Rs. 2100 crore

VST Tillers Tractors Ltd enters into MOU with Zetor Tractors

NHPC declared successful resolution applicant for Jalpower Corporation Ltd

L&T raises Rs. 1000 crore through 6.72% NCDs

Solapur Tollways Pvt Ltd receives completion certificate for part of NH-9 project

Cipla gets 4 observations from USFDA for API facility at Bommasandra, Bangalore

ALLSEC Technologies Ltd consolidated Q3 FY20 net profit at Rs. 8.55 crore

Wendt India Ltd Q3 consolidated PAT falls to Rs. 2.20 crore

Faze Three Autofab Ltd Q3 net profit at Rs. 0.48 crore

Emkay Global Financial Services Ltd Q3 loss at Rs. 1.41 crore

ION Exchange India Ltd consolidated Q3 PAT higher at Rs. 26.31 crore

Shree Bhavya Fabrics Ltd posts net profit of Rs. 0.77 crore in Q3

Mangalam Drugs & Organics Ltd Q3 PAT jumps to Rs. 1.65 crore

ARO Granite Industries Ltd Q3 net profit at Rs. 0.65 crore

JSW Steel Ltd consolidated Q3 PAT declines to Rs. 211 crores

Udaipur Cement Works Ltd posts PAT of Rs. 0.97 crore in Q3

Strides announces successful completion of US FDA inspection at its Alathur facility with Zero 483 observations

Sonata Software Ltd reports Rs.75.86 crores net profit in Q3 FY20

Oriental Hotels Ltd posts consolidated PAT of Rs. 7.31 crore

Kirloskar Ferrous Industries Ltd Q3 PAT increases QoQ to Rs. 23.33 crore

Indian Bank reports Q3 net profit of Rs. 247.16 crore

Sunil Agro Foods Ltd posts net profit of Rs. 0.14 crore in Q3

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019