Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 2.00 - ACUITE A4 | Reaffirmed | Issuer not co-operating*
Bank Loan Ratings 29.00 ACUITE B | Reaffirmed | Issuer not co-operating* -
Total Outstanding Quantum (Rs. Cr) 31.00 - -
Total Withdrawn Quantum (Rs. Cr) 0.00 - -
 
Rating Rationale

­Acuité has reaffirmed the long-term rating of ‘ACUITE B’ (read as ACUITE B) and short-term rating of ‘ACUITE A4’ (read as ACUITE A four) on the Rs.31.00 Cr bank facilities of Prakash Corrugated Products (PCP). The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.


About the Company

The Goa-based, Prakash Corrugated Products (PCP) was incorporated in the year 2001. It is a proprietorship concern managed by Mr. Rakesh Agarwal which is associated with various large companies for manufacturing sturdy and economical packing material viz. Corrugated fiber CFB Boxes, and other material for packaging their products. The manufacturing facility of PCP with an 88” Corrugating Machine gives the capability of manufacturing large size boxes along with the 72” 5 Ply Automatic Corrugation Machine.

 
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.

 
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."

 
Material Covenants

None

 
Liquidity Position

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

 
Outlook

­Not Applicable

 
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
10 Aug 2021 Term Loan Long Term 13.00 ACUITE B ( Issuer not co-operating*)
Proposed Bank Facility Short Term 2.00 ACUITE A4 ( Issuer not co-operating*)
Cash Credit Long Term 16.00 ACUITE B ( Issuer not co-operating*)
12 May 2020 Term Loan Long Term 13.00 ACUITE B (Issuer not co-operating*)
Proposed Bank Facility Short Term 2.00 ACUITE A4 (Issuer not co-operating*)
Cash Credit Long Term 16.00 ACUITE B (Issuer not co-operating*)
01 Mar 2019 Cash Credit Long Term 16.00 ACUITE B | Stable (Assigned)
Term Loan Long Term 13.00 ACUITE B | Stable (Assigned)
Proposed Short Term Loan Short Term 2.00 ACUITE A4 (Assigned)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Union Bank of India Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 16.00 Simple ACUITE B | Reaffirmed | Issuer not co-operating*
Not Applicable Not Applicable Proposed Short Term Bank Facility Not Applicable Not Applicable Not Applicable 2.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
Union Bank of India Not Applicable Term Loan Not available Not available Not available 13.00 Simple ACUITE B | Reaffirmed | Issuer not co-operating*

Contacts
Analytical Rating Desk
About Acuité Ratings & Research

Acuité Ratings & Research Limitedwww.acuite.in