Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 22.00 ACUITE BB- | Reaffirmed | Issuer not co-operating* -
Bank Loan Ratings 6.00 - ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 28.00 - -
 
Rating Rationale

Erratum: In the previous PR dated June 1, 2022, Quantum of the BLR, which has already been withdrawn, was still showing the amount, which has now been revised in this version.

­Acuité has reaffirmed the long-term rating of ‘ACUITE BB-’ (read as ACUITE double B minus) and the short-term rating of ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs. 28.00 crore bank facilities of Nirmal Fibres Private Limited(NFPL). The rating continues to be flagged as “Issuer Not-Cooperating” and is based on best available information.


About the Company

­Nirmal Fibres Private Limited (NFPL), incorporated in 1995, is a Delhi-based company engaged in manufacturing of RPSF and PPNF (Polypropylene Non-Woven Fabric). The company has a manufacturing facility in Gajraula, Uttar Pradesh. The overall operations of the company are jointly managed by Mr. Ajit Prasad Jain, Mr. Raj Kumar Jain and Mr. Sanjiv Kumar Jain.

 
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

­Not Applicable

 
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 22 (Actual) FY 21 (Actual)
Operating Income Rs. Cr. 222.58 171.39
PAT Rs. Cr. 1.21 2.57
PAT Margin (%) 0.55 1.50
Total Debt/Tangible Net Worth Times 0.79 0.40
PBDIT/Interest Times 4.77 11.05
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

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
01 Jun 2022 Letter of Credit Short Term 2.00 ACUITE A4+ ( Issuer not co-operating*)
Proposed Letter of Credit Long Term 8.00 ACUITE BB- (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 14.00 ACUITE BB- (Downgraded and Issuer not co-operating*)
Letter of Credit Short Term 5.00 ACUITE A4+ ( Issuer not co-operating*)
Term Loan Long Term 4.00 ACUITE BB- (Downgraded and Issuer not co-operating*)
Packing Credit Short Term 1.00 ACUITE A4+ ( Issuer not co-operating*)
27 Feb 2021 Letter of Credit Short Term 2.00 ACUITE A4+ (Issuer not co-operating*)
Proposed Letter of Credit Short Term 8.00 ACUITE A4+ (Issuer not co-operating*)
Letter of Credit Short Term 5.00 ACUITE A4+ (Issuer not co-operating*)
Term Loan Long Term 4.00 ACUITE BB (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 14.00 ACUITE BB (Downgraded and Issuer not co-operating*)
Packing Credit Short Term 1.00 ACUITE A4+ (Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Indian Overseas Bank Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 14.00 Simple ACUITE BB- | Reaffirmed | Issuer not co-operating*
Indian Overseas Bank Not Applicable Letter of Credit Not Applicable Not Applicable Not Applicable 5.00 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Indian Overseas Bank Not Applicable PC/PCFC Not Applicable Not Applicable Not Applicable 1.00 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Not Applicable Not Applicable Proposed Letter of Credit Not Applicable Not Applicable Not Applicable 8.00 Simple ACUITE BB- | Reaffirmed | Issuer not co-operating*

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