* The issuer did not co-operate; based on best available information.
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
Rating Rationale
Acuité has downgraded the long-term rating to ‘ACUITE B+’ (read as ACUITE B plus) from ‘ACUITE BB’ (read as ACUITE double B) on the Rs.295.00 crore bank facilities and the short-term rating to ‘ACUITE A4’ (read as ACUITE A four) from ‘ACUITEA4+’ (read as ACUITE A four plus) on the Rs.15.00 crore bank facilities of Oasis Ethanol Industries Private Limited on account of information risk. The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.
About the Company
Oasis Ethanol Industries Private Limited was incorporated in 2018. The company has set up a grain-based Ethanol manufacturing plant with an installed capacity of 320 KLPD and a steam turbine-based power plant of 14 MW for captive power consumption at Khasra No. 126/24, Village: Jatwar, Tehsil: Naraingarh, District: Ambala, Haryana. The proposed Ethanol production matches the market trends and demand in domestic markets for end uses as Biofuel for blending with petrol under Ethanol Blending Program (EBP) of Government of India. The directors of the company are Mrs. Jaya Lakhe, Mrs. Dimpy Malhotra and Atam Ullas Singh.
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 data, information and undertakings from the rated entity for conducting surveillance & review of the rating. However, the issuer/borrower failed to submit such information before the due date.
Acuité believes that information risk is a critical component in such ratings, and non-cooperation 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
Rating Sensitivity
Potential triggers (individual or collective) for an upward rating action:
Not Applicable
Potential triggers (individual or collective) for a downward rating action:
Not Applicable
Liquidity Position
"No information provided by the issuer / available for Acuite to comment upon."
ACUITE A4+
(Reaffirmed & Issuer not co-operating*)
Term Loan
Long Term
250.00
ACUITE BB
(Downgraded & Issuer not co-operating* from ACUITE BB+)
Cash Credit
Long Term
45.00
ACUITE BB
(Downgraded & Issuer not co-operating* from ACUITE BB+)
06 Apr 2024
Bank Guarantee (BLR)
Short Term
15.00
ACUITE A4+
(Downgraded & Issuer not co-operating* from ACUITE A2)
Term Loan
Long Term
250.00
ACUITE BB+
(Downgraded & Issuer not co-operating* from ACUITE BBB+ | Stable)
Cash Credit
Long Term
45.00
ACUITE BB+
(Downgraded & Issuer not co-operating* from ACUITE BBB+ | Stable)
26 Apr 2023
Bank Guarantee (BLR)
Short Term
15.00
ACUITE A2
(Assigned)
Term Loan
Long Term
250.00
ACUITE BBB+ | Stable
(Reaffirmed)
Cash Credit
Long Term
45.00
ACUITE BBB+ | Stable
(Assigned)
* The issuer did not co-operate; based on best available information.
Lender’s Name
ISIN
Facilities
Listing Status
Regulated By
Date Of Issuance
Coupon Rate
Maturity Date
Quantum (Rs. Cr.)
Complexity Level
Rating
State Bank of India
Not avl. / Not appl.
Bank Guarantee (BLR)
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
15.00
Simple
ACUITE A4 | Downgraded | Issuer not co-operating* ( from ACUITE A4+ )
State Bank of India
Not avl. / Not appl.
Cash Credit
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
45.00
Simple
ACUITE B+ | Downgraded | Issuer not co-operating* ( from ACUITE BB )
State Bank of India
Not avl. / Not appl.
Term Loan
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
250.00
Simple
ACUITE B+ | Downgraded | Issuer not co-operating* ( from ACUITE BB )
* The issuer did not co-operate; based on best available information.
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
