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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 12.75 | ACUITE B+ | Downgraded | Issuer not co-operating* | - |
| Bank Loan Ratings | 8.75 | - | ACUITE A4 | Downgraded | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 21.50 | - | - |
| Rating Rationale |
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Acuité has downgraded the long-term rating to ‘ACUITE B+’ (read as ACUITE B plus) from ‘ACUITE BB-’ (read as ACUITE double B minus) and the short-term rating to ‘ACUITE A4’ (read as ACUITE A four) from ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs. 21.50 crore bank facilities of Milton Industries Limited (MIL). The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.
Rationale for Rating Downgrade: The rating downgrade considers the decline in financial performance of MIL in H1FY2024. |
| About the Company |
| Based at Ahmedabad, Milton Industries Limited was incorporated in 1985 as an ISO 9001:2008 certified company engaged in manufacturing of Laminates, Artificial Leather Cloth and Glass Fibre Reinforced Epoxy (GFRE) Sheets in the state of Gujarat. MIL has manufacturing facilities located at Mehsana and Sabarkantha district of Gujarat. Initially, the company was engaged in manufacturing of laminates and further diversified into manufacturing and export of Artificial Leather cloth, GFRE Sheets, DGFRP, CCL and NAFTC. The products of the company are primarily used in real estate and artificial leather and polymers in Indian railways and roadways. In addition, the company also has a High-Pressure Hydraulic Press in which it manufactures 12 x 6 size of compact laminate which is mostly in demand in Europe, America, and Australia. Mr. Vikas Jain, Mr. Abhaykumar Mahipalsingh Jain and Mr. Saket Jain are the Wholetime Directors of the company. |
| 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". |
| All 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 23 (Actual) | FY 22 (Actual) |
| Operating Income | Rs. Cr. | 59.95 | 59.05 |
| PAT | Rs. Cr. | 2.87 | 3.25 |
| PAT Margin | (%) | 4.79 | 5.50 |
| Total Debt/Tangible Net Worth | Times | 0.38 | 0.22 |
| PBDIT/Interest | Times | 6.11 | 5.53 |
| Status of non-cooperation with previous CRA |
| Not Applicable |
| Any other information |
| None |
| Applicable Criteria |
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• 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 |
| 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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