Chemical industry

Chem-SpltySlide 2M/Sm

Chem-Pente
/Forma

Chem-OrgMed/Sml

Chem-OrgLarge

ChemPlasticizer

chem-SpltyLarge

Not
rated

Approached credit rating agencies

Chem-SpltyM/Sm
. Aarti
Industries Ltd
Alkyl Amines
Chemicals
Ltd
Excel
Industries Ltd
Godrej
Industries Ltd
Gwalior
Chemical
Industries Ltd
Hikal Ltd
Navin
Fluorine
International
Limited
Pidilite
Industries Ltd
Punjab
Chemicals &
Crop
Protection Ltd

chem-SpltyLarge

Chem-OrgMed/Sml

Chem-OrgLarge

Citurgia
Biochemicals
Ltd

Andhra
Petrochemica
ls Ltd

Akzo Nobel
Chemicals
Ltd

Dujodwala
Products Ltd

Ganesh
Benzoplast
Ltd

Avon
Organics Ltd

Elantas Beck
India Ltd

Gulshan
Polyols Ltd

Chem-Pente
/Forma
Ciba India Ltd
Clariant
Chemicals
(India) Ltd
Jayant Agro
Organics Ltd
NOCIL Ltd

J F Laboratories
Ltd
Resonance
Specialities Ltd

ChemPlasticizer

Instrument issued by chemical

sector
Debt
Programme

Fixed
Deposit

Short Term
Debt

NonConvertible
Debentures

Foreign currency
debt

Long Term
Debt
Term Deposit
Debentures

Commercial
Paper

Partly
Convertible
Debentures

Certificate
Of
Deposits

listed companies in
chemical industry

The below given information is related to 5 chemical industry sectors they are:
Chem-Org-Large, Chem-Org-Med/Sml, Chem-Plasticizer, Chem-Pente/Forma,
Chem-Splty-Large, Chem-Splty-M/Sml

23 companies have gone for credit rating out of 58 companies in the following sectors. Chem-OrgLarge, Chem-Org-Med/Sml, Chem-Plasticizer, Chem-Pente/Forma, Chem-Splty-Large, ChemSplty-M/Sml

The above chart depicts that most of the companies have gone to CRISIL for
rating that is 50% , followed by CARE, ICRA, non of the companies are rated
with FITCH India. 18% are rated on care as well as CRISIL.

Chem-Org-Large, Chem-Org-Med/Sml, Chem-Plasticizer, ChemPente/Forma, Chem-Splty-Large, Chem-Splty-M/Sml

Instruments highly
rated in cARE (year
1997 to 2009

Instruments highly rated in crisil

1997-2009

Instruments least rated in cris

Year 1997-2009

Instrument highly rated in

year 1997-2009

Instrument least rated in

icra
Year 1997-2009

Instrument least rated in

icra
Year 1997-2009

Grading for instruments in Chemic

NUMBER OF INSRUMENTS RAISED

BY CHEMICAL SECTOR year 19972009

NUMBER OF INSRUMENTS RAISED

BY CHEMICAL SECTOR

year 1997-2009

NUMBER OF INSRUMENTS
RAISED BY CHEMICAL SECTOR
year 1997-2009

NUMBER OF INSRUMENTS RAISED BY

CHEMICAL SECTOR year 1997-2009

NUMBER OF INSRUMENTS RAISED BY

CHEMICAL SECTOR year 1997-2009

Total number of instruments issued and total amount raised

in chemical industry year 1997-2009

Instruments upgraded
downgraded and stable

REASONS

upgrade

stable
downgrade

Reasons for Stable Instruments

by CRISIL

abrasive capital structure, and its highly working capital-intensive

operations that have result in a moderate liquidity position for the
company

strong market position and operating efficiency

easons for downgrading Instruments

by CRISIL

The companys very weak capital structure

cash accruals to be under pressure because of weaker

demand from end-user industries

Reasons for stable Instruments

by ICRA

established market position and diversified revenue profile

aggressive capital structure, and its highly working

capital-intensive operations that have resulted in a
moderate liquidity position for the company.

Reasons for Downgrading Instruments

by ICRA
financial risk profile following larger than expected
debt funded capital expenditure (capex) , and lower
profitability
the companys capital structure deteriorates, and
slowdown in cash accruals, thereby weakening its
debt protection measures.
cash accruals to be under pressure because of weaker
demand from end-user industries

Reasons for Downgrading Instruments

by CARE
Low proportion of long term contracts.
Competition from other players.

High level of Financial Risk

Reasons for stable Instruments

by CARE

the strength of the payment structure and credit quality

the experience of promoters