Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 20.73 ACUITE BB | Downgraded | Issuer not co-operating* -
Total Outstanding 20.73 - -
 
Rating Rationale

­Acuité has downgraded the long-term rating to ‘ACUITE BB’ (read as ACUITE double B) from 'ACUITE BB+' (read as ACUITE double B plus) on the Rs. 20.73 Crore bank facilities of Mewar Polytex Limited (MPL) on account of information risk. The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.


About the Company

­Rajasthan based Mewar Polytex Limited (MPL) was incorporated in the year 1979 by Mr. B.H.Bapna. The Company initially incorporated as a private limited company. The company is engaged in the business of manufacturing and export of polypropylene based woven and non-woven fabrics and sack bags with an installed capacity of 6000 MT PP fabric per annum.

 
About the Group

­­Mewar group was established in 1979 by Mr. B.H. Bapna. The group currently consist of 4 companies, namely Harmony Plastics Private Limited, Mewar Polytex Limited, Plasti Weave Industry LLP and Sun Polytex Private Limited. The group is engaged in the business of manufacturing and export of polypropylene based woven and non-woven fabrics and sack bags.

 
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:

­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 ratingis 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."

 
Liquidity Position

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

 
Outlook

­­Not Applicable

 
Other Factors affecting Rating

­None

 
Status of non-cooperation with previous CRA

­­Not Applicable

 
Any other information

­None

 
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
• Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.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.

 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
24 May 2023 Cash Credit Long Term 17.00 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 0.37 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 2.69 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 0.12 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 0.23 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 0.22 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Proposed Cash Credit Long Term 0.10 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
23 Feb 2022 Cash Credit Long Term 17.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE A- | Stable)
Term Loan Long Term 0.37 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE A- | Stable)
Term Loan Long Term 2.69 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE A- | Stable)
Term Loan Long Term 0.12 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE A- | Stable)
Term Loan Long Term 0.23 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE A- | Stable)
Term Loan Long Term 0.22 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE A- | Stable)
Proposed Cash Credit Long Term 0.10 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE A- | Stable)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 17.00 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
Not Applicable Not avl. / Not appl. Proposed Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.10 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
State Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.37 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
State Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.69 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
State Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.12 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
State Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.23 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
State Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.22 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )

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