Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 20.73 ACUITE BB+ | Reaffirmed | Issuer not co-operating* -
Total Outstanding Quantum (Rs. Cr) 20.73 - -
 
Rating Rationale
­Acuité has reaffirmed the long-term rating of ‘ACUITE BB+’ (read as ACUITE double B plus) on the Rs. 20.73 Crore bank facilities of Mewar Polytex Limited (MPL). The rating is 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.
 
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 rating is based.
 
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
­Not Applicable
 

Particulars Unit FY 21 (Actual) FY 20 (Actual)
Operating Income Rs. Cr. 680.94 526.78
PAT Rs. Cr. 34.84 19.04
PAT Margin (%) 5.12 3.61
Total Debt/Tangible Net Worth Times 0.71 0.63
PBDIT/Interest Times 17.06 8.11
Status of non-cooperation with previous CRA
­None
 
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
• 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
23 Feb 2022 Term Loan Long Term 0.22 ACUITE BB+ (Downgraded and Issuer not co-operating*)
Term Loan Long Term 0.23 ACUITE BB+ (Downgraded and Issuer not co-operating*)
Term Loan Long Term 2.69 ACUITE BB+ (Downgraded and Issuer not co-operating*)
Term Loan Long Term 0.37 ACUITE BB+ (Downgraded and Issuer not co-operating*)
Proposed Cash Credit Long Term 0.10 ACUITE BB+ (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 17.00 ACUITE BB+ (Downgraded and Issuer not co-operating*)
Term Loan Long Term 0.12 ACUITE BB+ (Downgraded and Issuer not co-operating*)
03 Dec 2020 Proposed Bank Facility Long Term 0.10 ACUITE A- | Stable (Assigned)
Term Loan Long Term 0.22 ACUITE A- | Stable (Assigned)
Term Loan Long Term 0.37 ACUITE A- | Stable (Assigned)
Term Loan Long Term 2.69 ACUITE A- | Stable (Assigned)
Term Loan Long Term 0.23 ACUITE A- | Stable (Assigned)
Term Loan Long Term 0.12 ACUITE A- | Stable (Assigned)
Cash Credit Long Term 17.00 ACUITE A- | Stable (Assigned)
­

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

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