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Aether Industries Limited — Audit Report / Information 2023
Dec 7, 2023
59487_rns_2023-12-07_4bf3c5cf-c01d-44e7-a04c-e5ff9051175b.pdf
Audit Report / Information
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December 7, 2023
Ref. No.: AIL/SE/82/2023-24
To,
BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai-400001, MH. Scrip Code: 543534
National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai-400051, MH.
Symbol: AETHER
Dear Madam / Sir,
Subject: Intimation of credit rating
In accordance with Regulation 30 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, we hereby submit the credit rating assigned by M/s. ICRA Limited, as annexed.
We request you to kindly take the information on your records.
Thank you.
For Aether Industries Limited
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Chitrarth Rajan Parghi
Company Secretary & Compliance Officer Mem. No.: F12563
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Page 1 of 1
Aether Industries Limited
Registered Office: Plot No. 8203, GIDC Sachin, Surat-394230, Gujarat, India. Phone: +91-261-6603000 || Email: [email protected] || Web: www.aether.co.in II CIN: L24100GJ2013PLC073434 Factory: Plot No. 8203, Beside Shakti Distillery, Near Rajkamal Chokdi, Road No. 8, Sachin GIDC, Sachin, Surat-394230, Gujarat, India.
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December 06, 2023
Aether Industries Limited: Placed on rating watch with negative implications
Summary of rating action
| Instrument* | Previous Rated Amount (Rs. crore) |
Current Rated Amount (Rs. crore) |
Rating Action |
|---|---|---|---|
| Long term fund-based – Cash credit |
48.00 | 48.00 | [ICRA]A+; placed on rating watch with negative implications |
| Long term/Short term – Fund- based/Non-fund based – Other |
55.00 | 55.00 | [ICRA]A+; placed on rating watch with negative implication/[ICRA]A1; placed on rating watch with negative implications |
| Short-term non-fund based – Letter of credit |
29.80 | 29.80 | [ICRA]A1; placed on rating watch with negative implications |
| Total | 132.80 | 132.80 |
Rationale
On November 29, 2023, Aether Industries Limited (AIL) informed the stock exchange about a fire incident at one of its facilities at Site 2 in Surat, Gujarat, causing damage to the plant and machinery, inventory and factory premises. The incident also resulted in eight casualties. While the extent of the damage to the plant and machinery and the inventory has not been estimated as of now, ICRA believes that the operations in the other two plants at Site 2 can begin shortly, moderating the impact of disruption. ICRA also notes that the facility was covered under insurance for fixed assets, inventory as well as loss of business.
The company is in the process of raising insurance claims pertaining to the loss. Any significant delay or major disallowance in the payout of the insurance claim will impact the company’s liquidity profile and will remain a key rating sensitivity.
ICRA will continue to closely monitor the developments and will evaluate the impact on the business and financial profile of AIL once more clarity emerges.
Please refer to the following link for the previous detailed rationale that captures the key rating drivers and their description, liquidity position, rating sensitivities, key financial indicators: Click here
Analytical approach
| Analytical Approach | Comments | |
|---|---|---|
| Applicable rating methodologies | Corporate Credit Rating Methodology Rating Methodology for Entities in the Chemical Industry |
|
| Parent/Group support | Not Applicable | |
| Consolidated. For arriving at the ratings, ICRA has combined the business and financial risk | ||
| Consolidation/Standalone | profiles of Aether Industries Limited (AIL) and its wholly-owned subsidiary, Aether Speciality Chemicals Limited, as the entities are owned and managed by the same |
|
| promoters and are involved in related sectors |
www.icra .in
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About the company
Aether Industries Limited is a speciality chemical manufacturer in India focused on producing advanced intermediates and speciality chemicals involving complex and differentiated chemistry and technological core competencies. The business was started in 2013 with a vision to create a niche in the global chemical industry and a creative approach towards chemistry, technology and systems that would lead to sustainable growth. In the first phase of the development through fiscal 2017, the company focused on building the team, infrastructure and the R&D centred around building the core competencies. The company’s revenue generation commenced in the second phase of fiscal 2017. Aether is one of the fastest growing specialty chemical companies in India, growing at a CAGR of nearly 44% between fiscal 2018 and fiscal 2023.
Status of non-cooperation with previous CRA: Not applicable
Any other information: None
Rating history for past three years
| Instrument | Current rating (FY2024) Chronology of rating history for thepast 3years |
Current rating (FY2024) Chronology of rating history for thepast 3years |
|---|---|---|
| Type Amount rated (Rs. crore) Amount outstanding (Rs. crore) |
Date & rating in FY2024 Date & rating in FY2023 Date & rating in FY2022 Date & rating in FY2021 |
|
| Dec 06, 2023 Oct 04, 2023 - - - |
||
| 1 Cash credit |
Long term 48.00 - |
[ICRA]A+; rating watch with negative implications [ICRA]A+ (Stable) - - - |
| 2 Fund based/ Non-fund based |
Long term and short term 55.00 - |
[ICRA]A+; rating watch with Negative Implications /[ICRA]A1; rating watch with negative implications [ICRA]A+ (Stable) /[ICRA]A1 - - - |
| 3 Letter of credit |
Short term 29.80 - |
[ICRA]A1; rating watch with negative implications [ICRA]A1 - - - |
Complexity level of the rated instrument
| Instrument | Complexity Indicator |
|---|---|
| Long-term fund-based – Cash credit | Simple |
| Long term/Short term – Fund-based/Non-fund based – Other | Simple |
| Short-term non-fund based – Letter of credit | Very Simple |
The Complexity Indicator refers to the ease with which the returns associated with the rated instrument could be estimated. It does not indicate the risk related to the timely payments on the instrument, which is rather indicated by the instrument's credit rating. It also does not indicate the complexity associated with analysing an entity's financial, business, industry risks or complexity related to the structural, transactional or legal aspects. Details on the complexity levels of the instruments are available on ICRA’s website: Click Here
www.icra .in
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Annexure-I: Instrument details
| ISIN Instrument Name Date of Issuance / Sanction Coupon Rate Maturity Amount Rated (Rs. crore) Current Rating and Outlook |
ISIN Instrument Name Date of Issuance / Sanction Coupon Rate Maturity Amount Rated (Rs. crore) Current Rating and Outlook |
|---|---|
| NA Cash credit NA NA NA 48.00 [ICRA]A+; Rating watch with Negative Implications |
|
| NA Fund-based/Non-fund based NA NA NA 55.00 [ICRA]A+; Rating watch with Negative Implications / [ICRA]A1; Rating watch with Negative Implications |
|
| NA Letter of credit NA NA |
NA 29.80 [ICRA]A1; Rating watch with Negative Implications |
| Source: Company Please click here to view details of lender-wise facilities rated by ICRA |
|
Annexure-II: List of entities considered for consolidated analysis
| Company Name | Ownership | Consolidation Approach |
|---|---|---|
| Aether Speciality Chemicals Limited | 100% | Full Consolidation |
www.icra .in
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ANALYST CONTACTS
Sabyasachi Majumdar +91 145 4545 304 [email protected]
Prashant Vasisht +91 124 4545 322 [email protected]
Ankit Jain Himani Sanghvi +91 124 4545 865 +91 79 4027 1547 [email protected] [email protected]
RELATIONSHIP CONTACT
L. Shivakumar
+91 22 6114 3406 [email protected]
MEDIA AND PUBLIC RELATIONS CONTACT
Ms. Naznin Prodhani
Tel: +91 124 4545 860 [email protected]
Helpline for business queries
+91-9354738909 (open Monday to Friday, from 9:30 am to 6 pm)
About ICRA Limited:
ICRA Limited was set up in 1991 by leading financial/investment institutions, commercial banks and financial services companies as an independent and professional investment Information and Credit Rating Agency.
Today, ICRA and its subsidiaries together form the ICRA Group of Companies (Group ICRA). ICRA is a Public Limited Company, with its shares listed on the Bombay Stock Exchange and the National Stock Exchange. The international Credit Rating Agency Moody’s Investors Service is ICRA’s largest shareholder.
For more information, visit www.icra.in
www.icra .in
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ICRA Limited
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Registered Office
B-710, Statesman House, 148, Barakhamba Road, New Delhi-110001 Tel: +91 11 23357940-45
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Branches
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© Copyright, 2023 ICRA Limited. All Rights Reserved.
Contents may be used freely with due acknowledgement to ICRA.
ICRA ratings should not be treated as recommendation to buy, sell or hold the rated debt instruments. ICRA ratings are subject to a process of surveillance, which may lead to revision in ratings. An ICRA rating is a symbolic indicator of ICRA’s current opinion on the relative capability of the issuer concerned to timely service debts and obligations, with reference to the instrument rated. Please visit our website www.icra.in or contact any ICRA office for the latest information on ICRA ratings outstanding. All information contained herein has been obtained by ICRA from sources believed by it to be accurate and reliable, including the rated issuer. ICRA however has not conducted any audit of the rated issuer or of the information provided by it. While reasonable care has been taken to ensure that the information herein is true, such information is provided ‘as is’ without any warranty of any kind, and ICRA in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness or completeness of any such information. Also, ICRA or any of its group companies may have provided services other than rating to the issuer rated. All information contained herein must be construed solely as statements of opinion, and ICRA shall not be liable for any losses incurred by users from any use of this publication or its contents.
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