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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 55.00 | Not Applicable | Withdrawn | - |
| Total Outstanding Quantum (Rs. Cr) | 0.00 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 55.00 | - | - |
| Rating Rationale |
| Acuite has withdrawn its long-term rating on Rs. 55 Cr bank facilities of Manjeet Fibers Private Limited (MFPL). The rating withdrawal is in accordance with Acuite’s policy on withdrawal of rating. The rating is being withdrawn on account of request received from the Company and No Dues Certificate received from the banker. |
| About Company |
| Rajasthan based MFPL was incorporated in 2012 by Mr. Rajendra Singh Rajpal and Mr. Manjeet Singh Chawla. The company is engaged in ginning, pressing and export of Cotton to countries including Bangladesh, Pakistan and China. MFPL has 3 units located in Rajasthan, Maharashtra and Telangana with a combined installed capacity of 1152000 Quintals, which is ~ 60 per cent utilised. The company is also engaged in oil extraction with extraction capacity of 160000 Quintals. |
| About the Group |
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The Manjeet Group (MG) belongs to the Rajpal family of Sendhwa , Madhya Pradesh promoted by Mr. Bhupendra Rajpal, Mr. Rajendra Rajpal and Mr. Sanchit Rajpal. It is engaged into cotton trading, ginning, pressing and other allied activities. The Manjeet Group of companies includes companies such as Manjeet Fibers Private Limited, Keshav Ginning and Pressing Factory and Man Cott Private Limited. Further, Manjeet Cotton Private Limited (MCPL) is the flagship company of the Manjeet Group which is involved in the cotton trading and ginning business. The company was incorporated in 2005 as a private limited company for trading and export operations, and to consolidate the operations of other group companies which were operational since 1982. MCPL is involved in the cotton trading business. The company also has interests in varied businesses like cotton ginning and oil extraction and also has wind mills.
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Analytical Approach
| Extent of Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Not Applicable |
Key Rating Drivers
| Strengths |
| Not Applicable |
| Weaknesses |
| Not Applicable |
| Rating Sensitivities |
| Not Applicable |
| All Covenants |
| Not Applicable. |
| Liquidity Position |
| Not Applicable |
| Outlook: Not Applicable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 23 (Provisional) | FY 22 (Actual) |
| Operating Income | Rs. Cr. | 439.15 | 542.96 |
| PAT | Rs. Cr. | 3.58 | 11.56 |
| PAT Margin | (%) | 0.81 | 2.13 |
| Total Debt/Tangible Net Worth | Times | 1.17 | 1.66 |
| PBDIT/Interest | Times | 2.00 | 2.68 |
| Status of non-cooperation with previous CRA (if applicable) |
| India Ratings vide its press release dated 15th May 2023, had rated the company to IND-RA BB+/A4 Issuer Not Cooperating. |
| Any Other Information |
| None |
| Applicable Criteria |
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• 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 |
| Note on Complexity Levels of the Rated Instrument |
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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.
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