Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 15.00 ACUITE BB | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 50.56 - ACUITE A4+ | Downgraded | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 65.56 - -
Total Withdrawn Quantum (Rs. Cr) 0.00 - -
 
Rating Rationale

­Acuité has downgraded its long term rating to ‘ACUITE BB’ (read as ACUITE double B) from 'ACUITE BBB-( read as Acuite triple B minus) and short term rating to ‘ACUITE A4+’ (read as ACUITE A four plus) from 'ACUITE A3'(read as ACUITE A three) on the Rs.65.56 crore bank facilities of Pan Tex Nonwoven Private Limited (PTNPL).
This rating is now an indicative rating and is based on the best information available.
The rating has been downgraded on account of information risk.

 


About the Company

­Incorporated in September 2020, Gujarat based PTNWPL proposed to pursue manufacturing and trading of non-woven fabric. The plant would have an installed capacity 12,500 MT p.a. The Company is promoted and managed by Mr. Chirag Pan, Mr. Alpesh Pan and Mr. Amber Patel of Pan Group.

 
Non-cooperation by the issuer/borrower

­Acuité has been requesting for No Default Statements (NDS); however, despite multiple requests; the Company’s management has remained non-cooperative and not submitted the NDS for the preceding 06 consecutive months. Acuité has also 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 noncooperation 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 Sensitivities

­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

­The previous long term rating of 'ACUITE BBB-'  and short term rating of 'ACUITE A3' was on account of the group notchup given to the company on account of support from the Pan Group. However, the standalone unsupported rating of the company stood at 'ACUITE BB+' and 'ACUITE A4+'  respectively. The rating has been downgraded considering the standalone rating of the entity. 

 
Key Financials:

­The rated entity has not shared the latest financial statements despite repeated requests.

 
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
• 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

­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
16 Sep 2021 Letter of Credit Short Term 45.56 ACUITE A3 (Assigned)
Bank Guarantee Short Term 5.00 ACUITE A3 (Assigned)
Cash Credit Long Term 15.00 ACUITE BBB- | Stable (Assigned)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
HDFC Bank Ltd Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 5.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating*
HDFC Bank Ltd Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 15.00 Simple ACUITE BB | Downgraded | Issuer not co-operating*
HDFC Bank Ltd Not Applicable Letter of Credit Not Applicable Not Applicable Not Applicable 45.56 Simple ACUITE A4+ | Downgraded | Issuer not co-operating*

Contacts
Analytical Rating Desk
About Acuité Ratings & Research

Acuité Ratings & Research Limitedwww.acuite.in