PR

Press Release
GOPALA POLYPLAST LIMITED
September 29, 2022
Rating Reaffirmed & Withdrawn and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	12.30	-	ACUITE D \| Reaffirmed & Withdrawn \| Issuer not co-operating*
Bank Loan Ratings	71.70	ACUITE D \| Reaffirmed & Withdrawn \| Issuer not co-operating*	-
Total Outstanding Quantum (Rs. Cr)	0.00	-	-
Total Withdrawn Quantum (Rs. Cr)	84.00	-	-

Rating Rationale

Acuité has reaffirmed & withdrawn the long-term rating of ‘ACUITE D’ (read as ACUITE D) for the Long term and ACUITE D for the short term (read as ACUITE D)on the Rs. 84.00 crore bank facilities of Gopala Polyplast Limited (GPPL). The rating withdrawal is in accordance with Acuité’s policy on withdrawal of rating. The rating is flagged as “Issuer NotCooperating”. The rating is being withdrawn on account of request received from the company and NOC received from the banker.

About the Company

GPPL, established in 1984, is based at Ahmedabad (Gujarat). The company manufactures polypropylene/high-density polyester woven sacks, which are used in cement packaging and is also engaged in manufacturing of woven labels, which are fitted onto readymade garments. GPPL has two finishing units located at Abu Road (Rajasthan) and Silvassa (Dadra). The company has an installed capacity of 18210 MTPA in its woven sacks division and 14 weaving looms in its label division. The company also has a 1.024 MW natural gas-based captive power plants. The Directors of the company are Mr. Manoj Somani, Mr. Manish Somani, Mr. Mahendra Somani and Mr. Kishorilal Sonthalia among others.

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 noncooperation by the issuer along with an 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.

About the Rated Entity - Key Financials

The rated entity has not shared the latest financial statements despite repeated requests.

Rating Sensitivity

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

Material Covenants

None.

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 22 (Actual)	FY 21 (Actual)
Operating Income	Rs. Cr.	49.49	16.08
PAT	Rs. Cr.	(3.68)	63.62
PAT Margin	(%)	(7.43)	395.60
Total Debt/Tangible Net Worth	Times	1.72	1.44
PBDIT/Interest	Times	0.93	39.27

Status of non-cooperation with previous CRA

India Ratings, vide its press release dated July 28, 2022 had reaffirmed the rating of GOPALA POLYPLAST LIMITED to 'IND D/D; ISSUER NOT COOPERATING’.
CRISIL, vide its press release dated November 30, 2021 had reaffirmed the rating of GOPALA POLYPLAST LIMITED to 'CRISIL D/D; ISSUER NOT COOPERATING’.

Any other information

Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups.

Applicable Criteria

• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm

Note on Complexity Levels of the Rated Instrument

https://www.acuite.in/view-rating-criteria-55.htm

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
28 Oct 2021	Term Loan	Long Term	17.70	ACUITE D ( Issuer not co-operating*)
	Cash Credit	Long Term	54.00	ACUITE D ( Issuer not co-operating*)
	Bank Guarantee	Short Term	1.50	ACUITE D ( Issuer not co-operating*)
	Proposed Bank Facility	Long Term	4.80	ACUITE D ( Issuer not co-operating*)
	Letter of Credit	Short Term	6.00	ACUITE D ( Issuer not co-operating*)
27 Jul 2020	Bank Guarantee	Short Term	1.50	ACUITE D (Issuer not co-operating*)
	Term Loan	Long Term	17.70	ACUITE D (Issuer not co-operating*)
	Cash Credit	Long Term	54.00	ACUITE D (Issuer not co-operating*)
	Proposed Bank Facility	Long Term	4.80	ACUITE D (Issuer not co-operating*)
	Letter of Credit	Short Term	6.00	ACUITE D (Issuer not co-operating*)
10 May 2019	Cash Credit	Long Term	54.00	ACUITE D (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	17.70	ACUITE D (Downgraded from ACUITE BB \| Stable)
	Proposed Bank Facility	Short Term	4.80	ACUITE D (Downgraded from ACUITE A4+)
	Letter of Credit	Short Term	6.00	ACUITE D (Downgraded from ACUITE A4+)
	Bank Guarantee	Short Term	1.50	ACUITE D (Downgraded from ACUITE A4+)
04 Dec 2018	Cash Credit	Long Term	54.00	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	17.70	ACUITE BB \| Stable (Assigned)
	Bank Guarantee	Short Term	6.00	ACUITE A4+ (Assigned)
	Bank Guarantee	Short Term	1.50	ACUITE A4+ (Assigned)
	Proposed Bank Facility	Short Term	4.80	ACUITE A4+ (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Rating
Bank of Baroda	Not Applicable	Bank Guarantee/Letter of Guarantee	Not Applicable	Not Applicable	Not Applicable	1.50	ACUITE D \| Reaffirmed & Withdrawn \| Issuer not co-operating*
Bank of Baroda	Not Applicable	Cash Credit	Not Applicable	Not Applicable	Not Applicable	54.00	ACUITE D \| Reaffirmed & Withdrawn \| Issuer not co-operating*
Bank of Baroda	Not Applicable	Letter of Credit	Not Applicable	Not Applicable	Not Applicable	6.00	ACUITE D \| Reaffirmed & Withdrawn \| Issuer not co-operating*
Not Applicable	Not Applicable	Proposed Short Term Bank Facility	Not Applicable	Not Applicable	Not Applicable	4.80	ACUITE D \| Reaffirmed & Withdrawn \| Issuer not co-operating*
Bank of Baroda	Not Applicable	Term Loan	Not available	Not available	Not available	17.70	ACUITE D \| Reaffirmed & Withdrawn \| Issuer not co-operating*

Contacts

Analytical	Rating Desk
Pooja Ghosh Vice President-Rating Operations Tel: 022-49294041 pooja.ghosh@acuite.in Abhishek Singh Analyst-Rating Operations Tel: 022-49294065 abhishek.s@acuite.in	Varsha Bist Senior Manager-Rating Operations Tel: 022-49294011 rating.desk@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.