Press Release

Press Release

September 04, 2025

GAYATRISHAKTI PAPER AND BOARDS LIMITED
Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	84.64	ACUITE BB+ \| Downgraded \| Issuer not co-operating*	-
Non Convertible Debentures (NCD)	315.00	ACUITE BB+ \| Downgraded \| Issuer not co-operating*	-
Bank Loan Ratings	60.00	-	ACUITE A4+ \| Downgraded \| Issuer not co-operating*
Total Outstanding	459.64	-	-
Total Withdrawn	0.00	-	-
* The issuer did not co-operate; based on best available information.

Rating Rationale

Acuite has downgraded its long term rating to 'ACUITE BB+ (read as ACUITE double B plus)' from 'ACUITE A- (read as ACUITE A minus)' and the short term rating to 'ACUITE A4+ (read as ACUITE A four plus)' from 'ACUITE A2+ (read as ACUITE A two plus)' on the Rs. 144.64 Cr bank facilities of Gayatrishakti Paper and Boards Limited (GPBL).
Further, Acuite has downgraded its long term rating to 'ACUITE BB+ (read as ACUITE double B plus)' from 'ACUITE A- (read as ACUITE A minus)' on the Rs. 315.00 Cr Non Convertible Debentures (NCD) of Gayatrishakti Paper and Boards Limited (GPBL).
The rating is now flagged as “Issuer Not Cooperating” and is based on the best available information.

Rationale for Downgrade
The rating is downgraded due to non receipt of confirmation, despite multiple follow ups by Acuite with debenture trustee and issuer, on the Non convertible debentures' debt servicing due as on August 31, 2025 issued by Gayatrishakti Paper and Boards Limited.

About the Company

Mumbai based, Gayatrishakti Paper and Boards Limited was founded in 1996 as a public limited company and is promoted by the G.N. Agarwal group. The company manufactures premium coated paper boards (duplex board) & kraft paper. It's duplex unit is located in Gujarat Industrial Development Corporation (GIDC) at Vapi and kraft paper unit at Sarigam. The present directors of the company are Mr. Gajendra Nagin Agarwal, Ms. Meena Gajendra Agrawal, Mr. Mahesh Narottam Jalan, Mr. Nikhar Gajendra Agarwal, Mr. Arun Kumar Lahoti, Mr. Pralhad Mansing Aher, Mr. Vinay Doulat Parashar, Mr. Mahesh Shyamnarayan Dwivedi and Ms. Suman Agarwal.

About the Group

Kherani Paper Mills Private Limited (KPMPL)
Mumbai based Kherani Paper Mills Private Limited (KPMPL) was originally incorporated in 1988 and subsequently takenover by the present management i.e. G.N. Agarwal Group in the year 1992. It is engaged in the manufacturing of duplex board in different grammages ranging from 180 GSM to 550 GSM. Its factory is situated at Vapi, Gujarat with a manufacturing capacity of the plant is 48,000 MTPA. The present directors of the company are Mr. Gajendra Nagin Agarwal, Ms. Meena Gajendra Agrawal and Ms. Tanisha Nikhar Agarwal.

Gayatrishakti Tissue Private Limited (GTPL)
Incorporated in 2022, GTPL is a subsidiary of GPBL, engaged in manufacturing of virgin and non-virgin tissue papers. Situated in Vapi, the plant has a manufacturing capacity of 36,000 MTPA. The company is promoted by Mr. Gajendra Nagin Agarwal and Ms. Meena Gajendra Agrawal.

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

This rating is based on information available from sources other than the issuer / borrower (in the absence of information provided by the issuer / borrower) . Acuite endeavoured to gather information about the entity/industry from the public domain. Any rating with the suffix 'Issuer not cooperating' is assigned without any management interaction with the issuer entity or any data / information from the entity. Sometimes this non co-operation by a rated entity may be due to a result of deterioration in the credit risk profile of the entity. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit rating is based.

ESG Factors Relevant for Rating

On the environment front, group has restored to clean sources of energy like solar power for running its plants to save power emissions. In its new tissue manufacturing facility, the group has installed a waste to energy boiler, which uses plastic waste to generate steam. Further, the group has an effluent treatment plant system for treatment of water. On the social front, the group has developed healthy employment practices such as insurance benefits, health and safety policies, corporate social responsibility programs for upskilling, vocational training, gender equality and rural development. It also promotes gender diversity and inclusivity.
On the governance front, the group has adopted requirement of corporate governance from provision of Companies Act 2013. The board of directors comprises of professionals having expertise and experience in the industry with one executive director, two non-executive directors and two of independent directors. Further, the group has constituted an audit committee and developed whistleblower policy to ensure a healthy governance mechanism.

Rating Sensitivities

Not Applicable

All Covenants

Issuer to have minimum EBITDA of Rs. 105.00 Cr. at standalone levels and Rs. 160.00 Cr. at consolidated levels from FY2026 onwards.
Gross Debt-EBITDA shall not exceed 4.00 times at standalone level and 4.50 times at consolidated level as on March 2026 and 3.75 times and 4.00 times respectively from March 2027 onwards.
Over all long term debt of the issuer shall not exceed Rs. 315 Cr at standalone level and Rs. 580.00 Cr at consolidated level.
Total debt including working capital and unsecured debt shall not exceed Rs. 800.00 Cr. at a consolidated level at any point of time, excluding debt availed from any member of the promoter group.
Debt Service Coverage Ratio should be greater than 1.10 times at all times until the final settlement date.
Security cover of 2.00 times the value of the outstanding principal plus accrued interest/obligations if any of should be maintained at all times until the redemption of the Senior series debentures.

Liquidity Position

No information provided by the issuer / available for Acuite to comment upon.

Outlook: Not Applicable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Provisional)	FY 24 (Actual)
Operating Income	Rs. Cr.	1152.04	1049.59
PAT	Rs. Cr.	38.14	24.56
PAT Margin	(%)	3.31	2.34
Total Debt/Tangible Net Worth	Times	1.93	1.99
PBDIT/Interest	Times	2.45	2.43

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.

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
05 Jun 2025	Cash Credit	Long Term	18.64	ACUITE A- \| Stable (Reaffirmed)
	Cash Credit	Long Term	30.00	ACUITE A- \| Stable (Reaffirmed)
	Non-Covertible Debentures (NCD)	Long Term	215.00	ACUITE A- \| Stable (Assigned)
	Non-Covertible Debentures (NCD)	Long Term	100.00	ACUITE A- \| Stable (Assigned)
	Cash Credit	Long Term	36.00	ACUITE A- \| Stable (Reaffirmed)
	Letter of Credit	Short Term	14.75	ACUITE A2+ (Reaffirmed)
	Letter of Credit	Short Term	25.20	ACUITE A2+ (Reaffirmed)
	Letter of Credit	Short Term	20.05	ACUITE A2+ (Reaffirmed)
	Term Loan	Long Term	51.25	ACUITE Not Applicable (Withdrawn)
	Working Capital Demand Loan (WCDL)	Long Term	24.00	ACUITE Not Applicable (Withdrawn)
	Term Loan	Long Term	73.43	ACUITE Not Applicable (Withdrawn)
	Working Capital Demand Loan (WCDL)	Long Term	16.00	ACUITE Not Applicable (Withdrawn)
	Term Loan	Long Term	19.37	ACUITE Not Applicable (Withdrawn)
	Term Loan	Long Term	28.18	ACUITE Not Applicable (Withdrawn)
	Term Loan	Long Term	7.60	ACUITE Not Applicable (Withdrawn)
	Proposed Long Term Bank Facility	Long Term	47.78	ACUITE Not Applicable (Withdrawn)
	Working Capital Demand Loan (WCDL)	Long Term	15.00	ACUITE Not Applicable (Withdrawn)
	Term Loan	Long Term	10.00	ACUITE Not Applicable (Withdrawn)
05 Jul 2024	Cash Credit	Long Term	36.00	ACUITE A- \| Stable (Reaffirmed)
	Cash Credit	Long Term	30.00	ACUITE A- \| Stable (Reaffirmed)
	Cash Credit	Long Term	18.64	ACUITE A- \| Stable (Reaffirmed)
	Term Loan	Long Term	51.25	ACUITE A- \| Stable (Reaffirmed)
	Term Loan	Long Term	19.37	ACUITE A- \| Stable (Reaffirmed)
	Term Loan	Long Term	73.43	ACUITE A- \| Stable (Reaffirmed)
	Term Loan	Long Term	28.18	ACUITE A- \| Stable (Reaffirmed)
	Working Capital Demand Loan (WCDL)	Long Term	24.00	ACUITE A- \| Stable (Reaffirmed)
	Working Capital Demand Loan (WCDL)	Long Term	16.00	ACUITE A- \| Stable (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	47.78	ACUITE A- \| Stable (Reaffirmed)
	Working Capital Demand Loan (WCDL)	Long Term	15.00	ACUITE A- \| Stable (Reaffirmed)
	Term Loan	Long Term	10.00	ACUITE A- \| Stable (Reaffirmed)
	Term Loan	Long Term	7.60	ACUITE A- \| Stable (Reaffirmed)
	Letter of Credit	Short Term	14.75	ACUITE A2+ (Reaffirmed)
	Letter of Credit	Short Term	25.20	ACUITE A2+ (Reaffirmed)
	Letter of Credit	Short Term	20.05	ACUITE A2+ (Reaffirmed)
02 Jun 2023	Cash Credit	Long Term	36.00	ACUITE A- \| Stable (Reaffirmed)
	Cash Credit	Long Term	30.00	ACUITE A- \| Stable (Reaffirmed)
	Cash Credit	Long Term	18.64	ACUITE A- \| Stable (Reaffirmed)
	Term Loan	Long Term	66.25	ACUITE A- \| Stable (Reaffirmed)
	Term Loan	Long Term	25.00	ACUITE A- \| Stable (Reaffirmed)
	Term Loan	Long Term	93.64	ACUITE A- \| Stable (Reaffirmed)
	Term Loan	Long Term	36.44	ACUITE A- \| Stable (Reaffirmed)
	Working Capital Demand Loan (WCDL)	Long Term	24.00	ACUITE A- \| Stable (Reaffirmed)
	Working Capital Demand Loan (WCDL)	Long Term	16.00	ACUITE A- \| Stable (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	31.28	ACUITE A- \| Stable (Reaffirmed)
	Letter of Credit	Short Term	14.75	ACUITE A2+ (Reaffirmed)
	Letter of Credit	Short Term	25.20	ACUITE A2+ (Reaffirmed)
	Letter of Credit	Short Term	20.05	ACUITE A2+ (Reaffirmed)
28 Sep 2022	Cash Credit	Long Term	36.00	ACUITE A- \| Stable (Upgraded from ACUITE BBB+ \| Stable)
	Cash Credit	Long Term	30.00	ACUITE A- \| Stable (Upgraded from ACUITE BBB+ \| Stable)
	Cash Credit	Long Term	18.64	ACUITE A- \| Stable (Upgraded from ACUITE BBB+ \| Stable)
	Term Loan	Long Term	77.50	ACUITE A- \| Stable (Upgraded from ACUITE BBB+ \| Stable)
	Term Loan	Long Term	25.00	ACUITE A- \| Stable (Upgraded from ACUITE BBB+ \| Stable)
	Term Loan	Long Term	107.50	ACUITE A- \| Stable (Upgraded from ACUITE BBB+ \| Stable)
	Term Loan	Long Term	42.62	ACUITE A- \| Stable (Upgraded from ACUITE BBB+ \| Stable)
	Working Capital Demand Loan (WCDL)	Long Term	2.38	ACUITE A- \| Stable (Upgraded from ACUITE BBB+ \| Stable)
	Working Capital Demand Loan (WCDL)	Long Term	24.00	ACUITE A- \| Stable (Upgraded from ACUITE BBB+ \| Stable)
	Working Capital Demand Loan (WCDL)	Long Term	13.61	ACUITE A- \| Stable (Upgraded from ACUITE BBB+ \| Stable)
	Letter of Credit	Short Term	14.75	ACUITE A2+ (Reaffirmed)
	Letter of Credit	Short Term	25.20	ACUITE A2+ (Reaffirmed)
	Letter of Credit	Short Term	20.05	ACUITE A2+ (Reaffirmed)
19 Sep 2022	Letter of Credit	Short Term	14.75	ACUITE A2+ (Reaffirmed)
	Letter of Credit	Short Term	25.20	ACUITE A2+ (Reaffirmed)
	Letter of Credit	Short Term	20.05	ACUITE A2+ (Reaffirmed)
	Cash Credit	Long Term	36.00	ACUITE BBB+ \| Stable (Downgraded from ACUITE A- \| Stable)
	Cash Credit	Long Term	30.00	ACUITE BBB+ \| Stable (Downgraded from ACUITE A- \| Stable)
	Cash Credit	Long Term	18.64	ACUITE BBB+ \| Stable (Downgraded from ACUITE A- \| Stable)
	Term Loan	Long Term	77.50	ACUITE BBB+ \| Stable (Downgraded from ACUITE A- \| Stable)
	Term Loan	Long Term	25.00	ACUITE BBB+ \| Stable (Downgraded from ACUITE A- \| Stable)
	Term Loan	Long Term	107.50	ACUITE BBB+ \| Stable (Downgraded from ACUITE A- \| Stable)
	Term Loan	Long Term	42.62	ACUITE BBB+ \| Stable (Downgraded from ACUITE A- \| Stable)
	Working Capital Demand Loan (WCDL)	Long Term	2.38	ACUITE BBB+ \| Stable (Downgraded from ACUITE A- \| Stable)
	Working Capital Demand Loan (WCDL)	Long Term	24.00	ACUITE BBB+ \| Stable (Assigned)
	Working Capital Demand Loan (WCDL)	Long Term	13.61	ACUITE BBB+ \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	36.00	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating* ( from ACUITE A- )
IDBI Bank Ltd.	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 A- )
Punjab National Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	18.64	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating* ( from ACUITE A- )
Bank of India	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	14.75	Simple	ACUITE A4+ \| Downgraded \| Issuer not co-operating* ( from ACUITE A2+ )
IDBI Bank Ltd.	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	25.20	Simple	ACUITE A4+ \| Downgraded \| Issuer not co-operating* ( from ACUITE A2+ )
Punjab National Bank	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	20.05	Simple	ACUITE A4+ \| Downgraded \| Issuer not co-operating* ( from ACUITE A2+ )
Not Applicable	INE612F07028	Non-Convertible Debentures (NCD)	01 Apr 2025	16	01 Apr 2033	215.00	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating* ( from ACUITE A- )
Not Applicable	INE612F07010	Non-Convertible Debentures (NCD)	01 Apr 2025	11.5	01 Apr 2032	100.00	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating* ( from ACUITE A- )

* The issuer did not co-operate; based on best available information.

*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

Sr. No.	Company Name
1	Gayatrishakti Paper and Boards Limited
2	Kherani Paper Mills Private Limited
3	Gayatrishakti Tissue Private Limited

Disclosure of list of non-cooperative issuers

• Listed :- https://www.acuite.in/Non-Cooperative_Issuer_Listed.php
• Unlisted :- https://www.acuite.in/Non-Cooperative_Issuer_Unlisted.php

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Kruti Patel
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.

Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.