Press Release

Press Release

August 30, 2024

MANJEET COTTON PRIVATE LIMITED
Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	571.55	ACUITE BB+ \| Downgraded \| Issuer not co-operating*	-
Bank Loan Ratings	72.00	-	ACUITE A4+ \| Downgraded \| Issuer not co-operating*
Total Outstanding	643.55	-	-

Rating Rationale

Acuité has downgraded its long-term rating to ‘ACUITE BB+’ (read as ACUITE Double B plus) from ‘ACUITE A’ (read as ACUITE A) and the short-term rating to 'ACUITE A4+' (read as ACUITE A four Plus) from 'ACUITE A1' (read as ACUITE A one) on Rs. 643.55 crore bank facilities of Manjeet Cotton Private Limited. The downgraded is on account of information risk. The rating is now flagged as “Issuer Not-Cooperating” on account of information risk and is based on the best available information.

Rationale for Downgrade
The team had sent repeated reminders to the Company for latest information; however, despite multiple requests; the Company’s management has not sent the required documents and are yet to submit the final latest documents for assigning the rating.

About the Company

Maharashtra-based Manjeet Cotton Private Limited (MCPL) was incorporated in 2005 as a private limited company to consolidate the existing businesses of other group companies that had been operational since 1982. MCPL is engaged in cotton ginning, trading, exporting, and extracting cotton oil seeds, cotton seeded linting, spinning, and weaving. It is promoted by Mr. Bhupendra Rajpal, Mr. Rajendra Rajpal, and Mr. Sanchit Rajpal. It has manufacturing units in 18 cities located in the states of Madhya Pradesh, Maharashtra, Karnataka, Telangana, Odisha, and Rajasthan.

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 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 endeavoured 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 Acuité to comment upon.

Liquidity Position

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

Outlook

Not Applicable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 23 (Actual)	FY 22 (Actual)
Operating Income	Rs. Cr.	3134.56	7000.54
PAT	Rs. Cr.	70.44	124.49
PAT Margin	(%)	2.25	1.78
Total Debt/Tangible Net Worth	Times	1.00	1.34
PBDIT/Interest	Times	5.54	4.75

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
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm
• Trading Entitie: https://www.acuite.in/view-rating-criteria-61.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
07 Jun 2023	Stand By Line of Credit	Short Term	8.80	ACUITE A1 (Reaffirmed)
	Stand By Line of Credit	Short Term	13.20	ACUITE A1 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	25.00	ACUITE A1 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	25.00	ACUITE A1 (Reaffirmed)
	Cash Credit	Long Term	91.20	ACUITE A \| Stable (Reaffirmed)
	Cash Credit	Long Term	170.30	ACUITE A \| Stable (Reaffirmed)
	Cash Credit	Long Term	83.50	ACUITE A \| Stable (Reaffirmed)
	Cash Credit	Long Term	50.00	ACUITE A \| Stable (Reaffirmed)
	Term Loan	Long Term	9.46	ACUITE A \| Stable (Reaffirmed)
	Post Shipment Credit	Long Term	55.00	ACUITE A \| Stable (Reaffirmed)
	Term Loan	Long Term	0.63	ACUITE A \| Stable (Reaffirmed)
	Term Loan	Long Term	16.10	ACUITE A \| Stable (Reaffirmed)
	Term Loan	Long Term	12.77	ACUITE A \| Stable (Assigned)
	Cash Credit	Long Term	50.00	ACUITE A \| Stable (Assigned)
	Term Loan	Long Term	31.58	ACUITE A \| Stable (Assigned)
	Term Loan	Long Term	0.33	ACUITE A \| Stable (Reaffirmed)
	Term Loan	Long Term	0.68	ACUITE A \| Stable (Reaffirmed)
08 Dec 2022	Cash Credit	Long Term	91.20	ACUITE A \| Stable (Upgraded from ACUITE BBB+)
	Cash Credit	Long Term	170.30	ACUITE A \| Stable (Upgraded from ACUITE BBB+)
	Cash Credit	Long Term	83.50	ACUITE A \| Stable (Upgraded from ACUITE BBB+)
	Cash Credit	Long Term	50.00	ACUITE A \| Stable (Upgraded from ACUITE BBB+)
	Term Loan	Long Term	14.78	ACUITE A \| Stable (Upgraded from ACUITE BBB+)
	Term Loan	Long Term	0.84	ACUITE A \| Stable (Upgraded from ACUITE BBB+)
	Post Shipment Credit	Long Term	55.00	ACUITE A \| Stable (Upgraded from ACUITE BBB+)
	Term Loan	Long Term	3.62	ACUITE A \| Stable (Upgraded from ACUITE BBB+)
	Proposed Long Term Bank Facility	Long Term	7.96	ACUITE A \| Stable (Upgraded from ACUITE BBB+)
	Stand By Line of Credit	Short Term	8.80	ACUITE A1 (Upgraded from ACUITE A2+)
	Stand By Line of Credit	Short Term	13.20	ACUITE A1 (Upgraded from ACUITE A2+)
	Bank Guarantee (BLR)	Short Term	25.00	ACUITE A1 (Upgraded from ACUITE A2+)
	Bank Guarantee (BLR)	Short Term	25.00	ACUITE A1 (Upgraded from ACUITE A2+)
23 Sep 2022	Cash Credit	Long Term	91.20	ACUITE BBB+ (Downgraded & Issuer not co-operating* from ACUITE A \| Stable)
	Cash Credit	Long Term	170.30	ACUITE BBB+ (Downgraded & Issuer not co-operating* from ACUITE A \| Stable)
	Cash Credit	Long Term	83.50	ACUITE BBB+ (Downgraded & Issuer not co-operating* from ACUITE A \| Stable)
	Cash Credit	Long Term	50.00	ACUITE BBB+ (Downgraded & Issuer not co-operating* from ACUITE A \| Stable)
	Term Loan	Long Term	14.78	ACUITE BBB+ (Downgraded & Issuer not co-operating* from ACUITE A \| Stable)
	Term Loan	Long Term	0.84	ACUITE BBB+ (Downgraded & Issuer not co-operating* from ACUITE A \| Stable)
	Post Shipment Credit	Long Term	55.00	ACUITE BBB+ (Downgraded & Issuer not co-operating* from ACUITE A \| Stable)
	Term Loan	Long Term	3.62	ACUITE BBB+ (Downgraded & Issuer not co-operating* from ACUITE A \| Stable)
	Proposed Long Term Bank Facility	Long Term	7.96	ACUITE BBB+ (Downgraded & Issuer not co-operating* from ACUITE A \| Stable)
	Stand By Line of Credit	Short Term	8.80	ACUITE A2+ (Downgraded & Issuer not co-operating* from ACUITE A1)
	Stand By Line of Credit	Short Term	13.20	ACUITE A2+ (Downgraded & Issuer not co-operating* from ACUITE A1)
	Bank Guarantee (BLR)	Short Term	25.00	ACUITE A2+ (Downgraded & Issuer not co-operating* from ACUITE A1)
	Bank Guarantee (BLR)	Short Term	25.00	ACUITE A2+ (Downgraded & Issuer not co-operating* from ACUITE A1)
02 Jul 2021	Term Loan	Long Term	3.62	ACUITE A \| Stable (Upgraded from ACUITE A- \| Stable)
	Term Loan	Long Term	0.84	ACUITE A \| Stable (Upgraded from ACUITE A- \| Stable)
	Term Loan	Long Term	14.78	ACUITE A \| Stable (Upgraded from ACUITE A- \| Stable)
	Proposed Long Term Bank Facility	Long Term	7.96	ACUITE A \| Stable (Upgraded from ACUITE A- \| Stable)
	Post Shipment Credit	Long Term	55.00	ACUITE A \| Stable (Upgraded from ACUITE A- \| Stable)
	Cash Credit	Long Term	50.00	ACUITE A \| Stable (Upgraded from ACUITE A- \| Stable)
	Cash Credit	Long Term	83.50	ACUITE A \| Stable (Upgraded from ACUITE A- \| Stable)
	Cash Credit	Long Term	170.30	ACUITE A \| Stable (Upgraded from ACUITE A- \| Stable)
	Cash Credit	Long Term	91.20	ACUITE A \| Stable (Upgraded from ACUITE A- \| Stable)
	Stand By Line of Credit	Short Term	13.20	ACUITE A1 (Reaffirmed)
	Stand By Line of Credit	Short Term	8.80	ACUITE A1 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	25.00	ACUITE A1 (Assigned)
	Bank Guarantee (BLR)	Short Term	25.00	ACUITE A1 (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.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	25.00	Simple	ACUITE A4+ \| Downgraded \| Issuer not co-operating* ( from ACUITE A1 )
HDFC Bank Ltd	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	25.00	Simple	ACUITE A4+ \| Downgraded \| Issuer not co-operating* ( from ACUITE A1 )
Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	50.00	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating* ( from ACUITE A )
Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	91.20	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating* ( from ACUITE A )
Bank of Baroda	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	170.30	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.	83.50	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating* ( from ACUITE A )
Union Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	50.00	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating* ( from ACUITE A )
HDFC Bank Ltd	Not avl. / Not appl.	Post Shipment Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	55.00	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating* ( from ACUITE A )
Bank of India	Not avl. / Not appl.	Stand By Line of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	8.80	Simple	ACUITE A4+ \| Downgraded \| Issuer not co-operating* ( from ACUITE A1 )
Bank of Baroda	Not avl. / Not appl.	Stand By Line of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	13.20	Simple	ACUITE A4+ \| Downgraded \| Issuer not co-operating* ( from ACUITE A1 )
HDFC Bank Ltd	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.63	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating* ( from ACUITE A )
Yes Bank Ltd	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	16.10	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating* ( from ACUITE A )
Bank of India	Not avl. / Not appl.	Term Loan	01 Sep 2017	Not avl. / Not appl.	01 Sep 2027	9.46	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating* ( from ACUITE A )
HDFC Bank Ltd	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	31.58	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating* ( from ACUITE A )
HDFC Bank Ltd	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.33	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating* ( from ACUITE A )
HDFC Bank Ltd	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.68	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating* ( from ACUITE A )
Yes Bank Ltd	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	12.77	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating* ( from ACUITE A )

Contacts

Analytical Details	Contact Details
Mohit Jain Senior Vice President - Rating Operations Tel: 022–49294017 mohit.jain@acuite.in Kirti Berlia Associate Analyst - Rating Operations Tel: 022-49294065 kirti.berlia@acuite.in	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in 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. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.