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BEML Ltd Capital/Financing Update 2021
60811_rns_2021-12-02_a329fc5f-a681-4fa6-8207-a15a10e5ce1d.pdf
Capital/Financing Update
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| Ref: CS/SEs/163 | 02.12.2021 |
|---|---|
| National Stock Exchange of India Ltd | The BSE Limited |
| Listing Compliance Department | Listing Compliance Department |
| Exchange Plaza, Bandra - Kurla Complex, P.J. Towers, | 26th Floor, Dalal Street, |
| SI.No. | Instruments | Revised / Fresh Rating | PreviousRating | |
|---|---|---|---|---|
| 01. | Non convertible Debentures(NCDs) | BWR AA/Stable reaffirmed | BWRAA/Stablereaffirmed | |
| 02. | Bank loan facilitiesFund based: Cash Credit /EPC/ | Long Term | BWR AA/ | |
| PCFC / FBD / EBRProposed CC / EPC / STC | StableAssigned | |||
| based:FundCommercialPaper (Sublimit to CC)Non Fund based:Letter of Credit /BankGuarantee Proposed LC/BG | Short Term | BWR A1+Assigned | -- |
BWR/NCD/HO/CRC/SAK/0348/2021-22 01 Dec 2021
Mr. A. K. Srivastav Director (Defence business/Finance) BEML Limited 23/1, 4th Main Road, SR Nagar, Bengaluru-560027
Dear Sir,
Sub: Review of the rating for the outstanding NCDs of Rs.100.00 Crs (Rupees One Hundred Crores only) of BEML Limited
Ref: BWR Rating Letter No : BWR/NCD/HO/CRC/VS/0138/2021-22 dt 15 Jul 2021
On review of BEML Limited's performance based on the information and clarifications provided by you, and as available in public sources, we wish to inform you that the rating of BEML Limited's outstanding NCDs has been reviewed as follows:
| Rating | ||||
|---|---|---|---|---|
| Instrument | Amount(Rs. Crs) | Tenure | Previous(15 July 2021) | Present^ |
| NCD | 100.00 | Long Term | BWR AA/StableReaffirmed | BWR AA/ StableReaffirmed |
| Total | 100.00 | Rupees One Hundred Crores Only |
Please refer to BWR website www.brickworkratings.com/ for definition of the ratings; Details of NCDs are provided in Annexure-I
^Instruments with this rating are considered to have an adequate degree of safety regarding the timely servicing of financial obligations. Such instruments carry low credit risk.
The rating is valid for one year from the date of this letter subject to terms and conditions that were agreed in your mandate dated 11 Oct 2021 and other correspondence, if any and BWR's standard disclaimer appended at the end of this letter. BWR would conduct surveillance every year till maturity/redemption of the instrument.
BWR/NCD/HO/CRC/SAK/0348/2021-22 01 Dec 2021
You are also required to keep us informed of any information/development that may affect your Company's finances/performance without any delay. You are also requested to submit No Default Statement on a monthly basis.
We are also enclosing the Rating Rationale. Kindly acknowledge.
Best Regards,
Saakshi Kanwar Senior Manager - Ratings Brickwork Ratings India Pvt Ltd
Note: Rating Rationale of all accepted Ratings are published on Brickwork Ratings website. All non-accepted ratings are also published on Brickwork Ratings web-site . Interested persons are well advised to refer to our website www.brickworkratings.com, If they are unable to view the rationale, they are requested to inform us on [email protected].
DISCLAIMER : Brickwork Ratings India Pvt. Ltd. (BWR), a Securities and Exchange Board of India [SEBI] registere Credit Rating Agency and accredited by the Reserve Bank of India [RBI], offers credit ratings of Bank Loan facilities, Non convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Pape perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced deb instruments, Security Receipts, Securitisation Products, Municipal Bonds, etc. [hereafter referred to as "Instruments"]. BW also rates NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipa Corporations.
BWR wishes to inform all persons who may come across Rating Rationales and Rating Reports provided by BWR that th ratings assigned by BWR are based on information obtained from the issuer of the instrument and other reliable source which in BWR's best judgement are considered reliable. The Rating Rationale / Rating Report & other rating communication are intended for the jurisdiction of India only. The reports should not be the sole or primary basis for any investment decisio within the meaning of any law or regulation (including the laws and regulations applicable in Europe and also the USA BWR also wishes to inform that access or use of the said documents does not create a client relationship between the user an BWR.
The ratings assigned by BWR are only an expression of BWR's opinion on the entity / instrument and should not in an manner be construed as being a recommendation to either purchase, hold or sell the instrument. BWR also wishes t abundantly clarify that these ratings are not to be considered as an investment advice in any jurisdiction nor are they to b used as a basis for or as an alternative to independent financial advice and judgement obtained from the user's financia advisors. BWR shall not be liable to any losses incurred by the users of these Rating Rationales, Rating Reports or i contents. BWR reserves the right to vary, modify, suspend or withdraw the ratings at any time without assigning reasons fo the same.
BWR's ratings reflect BWR's opinion on the day the ratings are published and are not reflective of factual circumstances tha may have arisen on a later date. BWR is not obliged to update its opinion based on any public notification, in any form o format although BWR may disseminate its opinion and analysis when deemed fit. Neither BWR nor its affiliates, third part providers, as well as the directors, officers, shareholders, employees or agents (collectively, "BWR Party") guarantee th
BWR/NCD/HO/CRC/SAK/0348/2021-22 01 Dec 2021
accuracy, completeness or adequacy of the Ratings, and no BWR Party shall have any liability for any errors, omissions, o interruptions therein, regardless of the cause, or for the results obtained from the use of any part of the Rating Rationales o Rating Reports. Each BWR Party disclaims all express or implied warranties, including, but not limited to, any warranties o merchantability, suitability or fitness for a particular purpose or use. In no event shall any BWR Party be liable to any one fo any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, lega fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use o any part of the Rating Rationales and/or Rating Reports even if advised of the possibility of such damages. However, BWR o its associates may have other commercial transactions with the company/entity. BWR and its affiliates do not act as fiduciary.
BWR keeps certain activities of its business units separate from each other in order to preserve the independence an objectivity of the respective activity. As a result, certain business units of BWR may have information that is not available t other BWR business units. BWR has established policies and procedures to maintain the confidentiality of certain non-publi information received in connection with each analytical process. BWR clarifies that it may have been paid a fee by the issuer or underwriters of the instruments, facilities, securities etc., or from obligors. BWR's public ratings and analysis are mad available on its web site, www.brickworkratings.com. More detailed information may be provided for a fee. BWR's ratin criteria are also generally made available without charge on BWR's website.
This disclaimer forms an integral part of the Ratings Rationales / Rating Reports or other press releases, advisorie communications issued by BWR and circulation of the ratings without this disclaimer is prohibited. BWR is bound by th Code of Conduct for Credit Rating Agencies issued by the Securities and Exchange Board of India and is governed by th applicable regulations issued by the Securities and Exchange Board of India as amended from time to time.
| Instrument | ISIN | Date of Issue | Amount(Rs. Crs) | Coupon# | MaturityDate |
|---|---|---|---|---|---|
| NCD | INE258A07039 | 18-May-2012 | 100.00 | 9.24% | 18-May- 2022 |
| Total | 100.00 | Rupees One HundredCrores Only |
BEML Limited ANNEXURE- I : INSTRUMENT DETAILS
#Payable Semi Annually on 18/05 & 18/11
BWR/BLR/HO/CRC/SAK/6268/2021-22 01 Dec 2021
Mr. A. K. Srivastav Director (Defence business/Finance) BEML Limited 23/1, 4th Main Road, SR Nagar, Bengaluru-560027
Dear Sir,
Sub: Initial Rating of the Bank Loan Facilities of BEML Limited amounting to Rs.5500.00 Crs (Rupees Five Thousand and Five Hundred Crores only)
Thank you for giving us an opportunity to undertake the initial rating of the bank loan facilities of your entity. Based on the information and clarifications provided by you as well as information available in the public domain, we wish to inform you that BEML Limited's bank loan facilities have been assigned the ratings as follows:
| Facilities | Amount(RsCrs) | Tenure | Rating | |
|---|---|---|---|---|
| Fundbased:CashCredit/EPC/PCFC/FBD/EBRProposedCC/EPC/STC | 1350.00150.00 | Longterm | BWRAA/StableAssigned | |
| FundbasedCommercialPaper(SublimittoCC) | (400.00) | BWRA1+ | ||
| NonFundbased:LetterofCredit/BankGuaranteeProposedLC/BG | 3300.00700.00 | Shortterm | Assigned | |
| Total | 5500.00 | RupeesFiveThousandandFiveHundredCroresOnly |
Please refer to BWR website www.brickworkratings.com/ for the definition of the ratings; Annexure II shows details of bank loan facilities.
The rating is valid for one year from the date of this letter subject to terms and conditions that were agreed in your mandate dated 11 Oct 2021 and other correspondence, if any and BWR's standard disclaimer appended at the end of this letter.
BWR/BLR/HO/CRC/SAK/6268/2021-22 01 Dec 2021
The rated Bank Loan facilities would be under surveillance / review during the said period. You are required to submit information periodically as per Annexure - II for the purpose of surveillance / review. You are also required to keep us informed of any information / development that may affect your company's finances / performance without any delay. You are also requested to submit the No Default Statement on a monthly basis.
We are also enclosing the Rating Rationale. Kindly acknowledge.
Best Regards,
Saakshi Kanwar Senior Manager - Ratings Brickwork Ratings India Pvt Ltd
Note: Rating Rationale of all accepted Ratings are published on Brickwork Ratings website. All non-accepted ratings are also published on Brickwork Ratings web-site . Interested persons are well advised to refer to our website www.brickworkratings.com, If they are unable to view the rationale, they are requested to inform us on [email protected].
DISCLAIMER : Brickwork Ratings India Pvt. Ltd. (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by the Reserve Bank of India [RBI], offers credit ratings of Bank Loan facilities, Nonconvertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitisation Products, Municipal Bonds, etc. [hereafter referred to as "Instruments"]. BWR also rates NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations.
BWR wishes to inform all persons who may come across Rating Rationales and Rating Reports provided by BWR that the ratings assigned by BWR are based on information obtained from the issuer of the instrument and other reliable sources, which in BWR's best judgement are considered reliable. The Rating Rationale / Rating Report & other rating communications are intended for the jurisdiction of India only. The reports should not be the sole or primary basis for any investment decision within the meaning of any law or regulation (including the laws and regulations applicable in Europe and also the USA). BWR also wishes to inform that access or use of the said documents does not create a client relationship between the user and BWR.
The ratings assigned by BWR are only an expression of BWR's opinion on the entity / instrument and should not in any manner be construed as being a recommendation to either purchase, hold or sell the instrument. BWR also wishes to abundantly clarify that these ratings are not to be considered as an investment advice in any jurisdiction nor are they to be used as a basis for or as an alternative to independent financial advice and judgement obtained from the user's financial advisors. BWR shall not be liable to any losses incurred by the users of these Rating Rationales, Rating Reports or its contents. BWR reserves the right to vary, modify, suspend or withdraw the ratings at any time without assigning reasons for the same.
BWR's ratings reflect BWR's opinion on the day the ratings are published and are not reflective of factual circumstances that may have arisen on a later date. BWR is not obliged to update its opinion based on any public notification, in any form
BWR/BLR/HO/CRC/SAK/6268/2021-22 01 Dec 2021
or format although BWR may disseminate its opinion and analysis when deemed fit. Neither BWR nor its affiliates, third party providers, as well as the directors, officers, shareholders, employees or agents (collectively, "BWR Party") guarantee the accuracy, completeness or adequacy of the Ratings, and no BWR Party shall have any liability for any errors, omissions, or interruptions therein, regardless of the cause, or for the results obtained from the use of any part of the Rating Rationales or Rating Reports. Each BWR Party disclaims all express or implied warranties, including, but not limited to, any warranties of merchantability, suitability or fitness for a particular purpose or use. In no event shall any BWR Party be liable to any one for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of any part of the Rating Rationales and/or Rating Reports even if advised of the possibility of such damages. However, BWR or its associates may have other commercial transactions with the company/entity. BWR and its affiliates do not act as a fiduciary.
BWR keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of the respective activity. As a result, certain business units of BWR may have information that is not available to other BWR business units. BWR has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process. BWR clarifies that it may have been paid a fee by the issuers or underwriters of the instruments, facilities, securities etc., or from obligors. BWR's public ratings and analysis are made available on its web site, www.brickworkratings.com. More detailed information may be provided for a fee. BWR's rating criteria are also generally made available without charge on BWR's website.
This disclaimer forms an integral part of the Ratings Rationales / Rating Reports or other press releases, advisories, communications issued by BWR and circulation of the ratings without this disclaimer is prohibited. BWR is bound by the Code of Conduct for Credit Rating Agencies issued by the Securities and Exchange Board of India and is governed by the applicable regulations issued by the Securities and Exchange Board of India as amended from time to time.
| Sl. | LongTerm | ShortTerm | Total | ||
|---|---|---|---|---|---|
| No. | NameofBanks | NameofFacilities | (Rs.Crs) | (Rs.Crs) | (Rs.Crs) |
| 1 | StateBankofIndia | CashCredit | 750.00 | - | 750.00 |
| LetterofCredit | - | 465.00 | 465.00 | ||
| BankGuarantee | - | 1400.00 | 1400.00 | ||
| 2 | CanaraBank | CashCredit | 40.00 | - | 40.00 |
| LetterofCredit | - | 160.00 | 160.00 | ||
| BankGuarantee | - | 200.00 | 200.00 | ||
| 3 | AxisBank | CashCredit | 20.00 | - | 20.00 |
| BankGuarantee | - | 230.00 | 230.00 | ||
| 4 | BankofBaroda | CashCredit | 10.00 | - | 10.00 |
| LetterofCredit | - | 75.00 | 75.00 | ||
| BankGuarantee | - | 115.00 | 115.00 | ||
| 5 | BankofIndia | CashCredit | 40.00 | - | 40.00 |
| LetterofCredit | - | 50.00 | 50.00 | ||
| BankGuarantee | - | 280.00 | 280.00 | ||
| 6 | IndianBank | CashCredit | 20.00 | - | 20.00 |
BEML Limited
ANNEXURE- I : Details of the bank loan facilities rated
Page 3 of 4
| BWR/BLR/HO/CRC/SAK/6268/2021-22 | 01 Dec 2021 | ||||
|---|---|---|---|---|---|
| BankGuarantee | - | 20.00 | 20.00 | ||
| 7 | IDBIBank | CashCredit | 95.00 | - | 95.00 |
| LetterofCredit | - | 25.00 | 25.00 | ||
| BankGuarantee | - | 215.00 | 215.00 | ||
| 8 | HDFCBank | CashCredit | 225.00 | - | 225.00 |
| LetterofCredit | - | 25.00 | 25.00 | ||
| 9 | UnionBankofIndia | CashCredit | 100.00 | - | 100.00 |
| BankGuarantee | - | 40.00 | 40.00 | ||
| 10 | DeutscheBank | CashCredit | 50.00 | - | 50.00 |
| 11 | ProposedFacilities | CashCredit | 150.00 | - | 150.00 |
| LetterofCredit | - | 200.00 | 200.00 | ||
| BankGuarantee | - | 500.00 | 500.00 | ||
| Total | -RupeesFiveThousand | andFiveHundred | |||
| Crores | only | 1500.00 | 4000.00 | 5500.00 |
ANNEXURE- II
The following documents/ information should be submitted to BWR:
-
- Confirmation from the Company that all the terms and conditions stipulated in the Debenture Trust Deed and Bank's sanction letter are fully complied with.
-
- Certified copy of periodical book debts/bills receivables statements submitted to the bank.
-
- Confirmation about payment of installment and interest as and when paid.
-
- Certified copy of Quarterly Information Statements (QIS) and Half Yearly Information Statements (HYIS) submitted to the bank.
-
- Certified copy of Quarterly financial Statements (QFS) for the current FY.
-
- Certified copy of Banks' Statements of Accounts on a quarterly basis.
-
- Quarterly / Half yearly financial statements (unaudited or with limited review) and Annual financial statements (provisional as well as audited).
-
- Information on delays/defaults in servicing bank loans, letters of credit, letters of guarantee, NCDs, bonds and other borrowings, if any, by the Company as at the end of March, June, September and December each year.
-
- Information on delays / defaults in servicing of debt obligations of any subsidiary/other group companies, if any, as at the end of March, June, September and December each year.
-
- Any other statement / information sought by BWR from time to time.
-
- All the aforesaid information shall be mailed to [email protected]