Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 130.11 ACUITE BB+ | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 7.00 - ACUITE A4+ | Downgraded | Issuer not co-operating*
Total Outstanding 137.11 - -
 
Rating Rationale

­Acuité has downgraded the long-term rating to ‘ACUITE BB+’ (read as ACUITE double B plus) from ‘ACUITE BBB+’ (read as ACUITE triple B plus)  and short-term rating to 'ACUITE A4+' (read as ACUITE A four plus) from 'ACUITE A2' (read as ACUITE A two) on the Rs.137.11 Cr. bank facilities of OASIS COMMERCIAL PRIVATE LIMITED(OCPL). The rating is now flagged as “Issuer Not-Cooperating” and is downgraded on account of information risk.

About the Company
­OCPL was incorporated in 2006. In May 2013, the company acquired a new distillation unit with an installed capacity of 120 KLPD of Extra Neutral Alcohol (ENA) from Chaddha group. The unit is located in Ambala (Haryana). The company has a 9 MW biomass based power plant which is partly used for its own power requirements and for balance 5 MW OCPL has power purchase agreement (PPA) with Haryana Power Purchase Centre. The unit is further added with Ethanol Manufacturing facilities in Dec. 18 and now this unit is capable of producing Either ENA or Ethanol both as per requirements.
 
About the Group
­Oasis Group (OG) is promoted by the Malhotra Family and has an operational track record of over five decades in the liquor industry. The Group currently owns five distillation units and 3 Bottling Plants situated in Punjab, Haryana, Madhya Pradesh, Rajasthan and Chandigarh,with a collective grain spirit production of more than 22.10 Crore liters per annum. The Group is also engaged in the retail trading business of liquor through Government contract route, by submitting tenders in the State of Punjab, Haryana and U.T. Chandigarh. At present, it owns about 600 retail vends in Punjab. The group’s core business strength lies in the business of alcohol production, manufacturing and marketing of grain based IMFL. It is one of the largest retailers of liquor in the state of Punjab. Three plants owned by the group have their in-house power generation units and the group also markets DDGS (Dried Distilled Grain Soluble) for the cattle industry and harnesses Carbon-di-Oxide for industrial uses. DDGS and Carbon-di-Oxide are byproducts of the ENA manufacturing and distillation process. The Oasis group commenced its operations in 1980`s under the lead of Mr. Deep Malhotra and his family and thus the group boasts a long track record of operations of four decades in the Alcohol manufacturing and trading industry. Currently, the day-to-day operations of the group are managed by Mr. Gautam Malhotra, Miss Dimpy Malhotra and Mr. Gaurav Malhotra.
 
Unsupported Rating
­Not applicable.
 
Non-cooperation by the issuer/borrower
Acuité has been requesting for No Default Statements (NDS); however, despite multiple requests; the Company’s management has remained non-cooperative and not submitted the NDS. Acuité believes that information risk is a critical component in such ratings, and noncooperation by the issuer along with unwillingness to provide information could be a sign of potential deterioration in its overall credit quality. This rating is, therefore, being flagged as “Issuer not-cooperating”, in line with prevailing SEBI regulations and Acuité’s policies.
 
Limitation regarding information availability
­The rating is based on information available from sources other than the issuer/borrower (in the absence of information provided by the issuer/borrower). Acuité endeavored to gather information about the entity/industry from the public domain. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit rating is based.
 
Rating Sensitivities
­No information provided by the issuer / available for Acuite to comment upon.
 
Liquidity Position
­No information provided by the issuer / available for Acuite to comment upon.
 
Outlook
­Not applicable.
 
Other Factors affecting Rating
­None.
 

Particulars Unit FY 22 (Actual) FY 21 (Actual)
Operating Income Rs. Cr. 2134.97 1763.77
PAT Rs. Cr. 81.92 56.17
PAT Margin (%) 3.84 3.18
Total Debt/Tangible Net Worth Times 1.07 0.88
PBDIT/Interest Times 5.17 3.74
Status of non-cooperation with previous CRA
­Not Applicable
 
Any other information
­None.
 
Applicable Criteria
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm

Note on Complexity Levels of the Rated Instrument
­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’ s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in
 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
26 Apr 2023 Proposed Long Term Bank Facility Long Term 10.11 ACUITE BBB+ | Stable (Reaffirmed)
Cash Credit Long Term 15.00 ACUITE BBB+ | Stable (Reaffirmed)
Term Loan Long Term 70.00 ACUITE BBB+ | Stable (Reaffirmed)
Term Loan Long Term 5.00 ACUITE BBB+ | Stable (Reaffirmed)
Cash Credit Long Term 30.00 ACUITE BBB+ | Stable (Reaffirmed)
Bank Guarantee/Letter of Guarantee Short Term 7.00 ACUITE A2 (Reaffirmed)
21 Jul 2022 Proposed Long Term Bank Facility Long Term 10.11 ACUITE BBB+ | Positive (Reaffirmed)
Cash Credit Long Term 15.00 ACUITE BBB+ | Positive (Reaffirmed)
Term Loan Long Term 70.00 ACUITE BBB+ | Positive (Reaffirmed)
Term Loan Long Term 5.00 ACUITE BBB+ | Positive (Reaffirmed)
Cash Credit Long Term 30.00 ACUITE BBB+ | Positive (Reaffirmed)
Bank Guarantee/Letter of Guarantee Short Term 7.00 ACUITE A2 (Reaffirmed)
14 Feb 2022 Term Loan Long Term 70.00 ACUITE BBB+ | Stable (Reaffirmed)
Cash Credit Long Term 20.00 ACUITE BBB+ | Stable (Reaffirmed)
Cash Credit Long Term 15.00 ACUITE BBB+ | Stable (Reaffirmed)
Proposed Long Term Bank Facility Long Term 1.03 ACUITE BBB+ | Stable (Reaffirmed)
Term Loan Long Term 3.86 ACUITE BBB+ | Stable (Reaffirmed)
Term Loan Long Term 6.22 ACUITE BBB+ | Stable (Reaffirmed)
PC/PCFC Short Term 10.00 ACUITE A2 (Reaffirmed)
Bank Guarantee/Letter of Guarantee Short Term 10.00 ACUITE A2 (Reaffirmed)
Letter of Credit Short Term 1.00 ACUITE A2 (Reaffirmed)
24 Sep 2021 Term Loan Long Term 70.00 ACUITE BBB+ | Stable (Reaffirmed)
Cash Credit Long Term 20.00 ACUITE BBB+ | Stable (Reaffirmed)
Cash Credit Long Term 15.00 ACUITE BBB+ | Stable (Reaffirmed)
PC/PCFC Short Term 10.00 ACUITE BBB+ (Reaffirmed)
Proposed Long Term Loan Long Term 1.03 ACUITE BBB+ | Stable (Reaffirmed)
Term Loan Long Term 3.86 ACUITE BBB+ | Stable (Reaffirmed)
Term Loan Long Term 6.22 ACUITE BBB+ | Stable (Reaffirmed)
Bank Guarantee/Letter of Guarantee Short Term 10.00 ACUITE A2 (Reaffirmed)
Letter of Credit Short Term 1.00 ACUITE A2 (Reaffirmed)
06 Sep 2021 Letter of Credit Short Term 1.00 ACUITE A2 (Upgraded from ACUITE A3+)
Bank Guarantee/Letter of Guarantee Short Term 10.00 ACUITE A2 (Upgraded from ACUITE A3+)
Term Loan Long Term 0.03 ACUITE BBB+ (Upgraded & Withdrawn)
Term Loan Long Term 6.22 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable)
Term Loan Long Term 3.86 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable)
Proposed Long Term Loan Long Term 1.03 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable)
PC/PCFC Short Term 10.00 ACUITE BBB+ (Upgraded from ACUITE A3+)
Cash Credit Long Term 15.00 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable)
Cash Credit Long Term 20.00 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable)
Term Loan Long Term 70.00 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
SVC Co-Op Bank Limited Not avl. / Not appl. Bank Guarantee/Letter of Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 7.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating* ( from ACUITE A2 )
Indusind Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ )
SVC Co-Op Bank Limited Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 30.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ )
Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.11 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ )
Indusind Bank Ltd Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 70.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ )
SVC Co-Op Bank Limited Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ )
*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)
  • Oasis Distilleries Limited (ODL)
  • Malbros International Private Limited (MIPL)
  • Oasis Commercial Private Limited (OCPL)
  • Oasis Overseas Exports Private Limited (OOEPL)
  • Vijeta Beverages Private Limited (VBPL)
  • Om Sons Marketing Private Limited (OSMPL) 
  • Oasis Ethanol Industries Private Limited (OEIPL)
 

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