Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 134.50 ACUITE B+ | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 5.50 - ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 140.00 - -
 
Rating Rationale
Acuité has downgraded the long-term rating from ‘ACUITE B+’ (read as ACUITE B plus) from ‘ACUITE BB-’ (read as ACUITE double B minus) and has reaffirmed the short-term rating of ‘ACUITE A4’ (read as ACUITE A Four) on the Rs. 140.00 crore bank facilities of United Polyfab Gujarat Limited(UPGL). The rating continues to be flagged as “Issuer NotCooperating” and is downgraded and Reaffirmed on account of information risk.­

About the Company
­UPGL, an Ahmedabad-based company incorporated in 2005, was promoted by Mr. Mittal and family. The company is engaged in the manufacturing of grey denim fabric. It undertakes job work for its group company, Vinod Denim Limited. The job work contributes around 22.00 percent with the remaining 78.00 percent derived from manufacturing and trading activities. The company purchases raw material - cotton yarn from the local market and sells its grey fabric to local traders.
 
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 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 endeavoured 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 ratingis based.­
 
About the Rated Entity - Key Financials
The rated entity has not shared the latest financial statement for Acuite comment.
 
Rating Sensitivity
­No information has been shared by the entity/ available for Acuite to comment.
 
Material Covenants
None
 
Liquidity Position
­No information has been shared by the entity/ available for Acuite to comment.
 
Outlook: Not Applicable­
 
Other Factors affecting Rating
­None
 
Status of non-cooperation with previous CRA
­None
 
Any other information
None­
 
Applicable Criteria
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.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
11 May 2022 Term Loan Long Term 14.22 ACUITE BB- (Downgraded and Issuer not co-operating*)
Term Loan Long Term 6.89 ACUITE BB- (Downgraded and Issuer not co-operating*)
Proposed Bank Facility Long Term 27.44 ACUITE BB- (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 6.00 ACUITE BB- (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 2.00 ACUITE BB- (Downgraded and Issuer not co-operating*)
Bank Guarantee Short Term 1.50 ACUITE A4 ( Issuer not co-operating*)
Term Loan Long Term 3.17 ACUITE BB- (Downgraded and Issuer not co-operating*)
Term Loan Long Term 4.66 ACUITE BB- (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 5.00 ACUITE BB- (Downgraded and Issuer not co-operating*)
Term Loan Long Term 23.65 ACUITE BB- (Downgraded and Issuer not co-operating*)
Term Loan Long Term 27.37 ACUITE BB- (Downgraded and Issuer not co-operating*)
Bank Guarantee Short Term 4.00 ACUITE A4 ( Issuer not co-operating*)
Term Loan Long Term 7.10 ACUITE BB- (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 7.00 ACUITE BB- (Downgraded and Issuer not co-operating*)
09 Feb 2021 Cash Credit Long Term 7.00 ACUITE BB (Downgraded and Issuer not co-operating*)
Bank Guarantee Short Term 1.50 ACUITE A4 (Downgraded and Issuer not co-operating*)
Proposed Bank Facility Long Term 27.44 ACUITE BB (Downgraded and Issuer not co-operating*)
Bank Guarantee Short Term 4.00 ACUITE A4 (Downgraded and Issuer not co-operating*)
Term Loan Long Term 23.65 ACUITE BB (Downgraded and Issuer not co-operating*)
Term Loan Long Term 27.37 ACUITE BB (Downgraded and Issuer not co-operating*)
Term Loan Long Term 6.89 ACUITE BB (Downgraded and Issuer not co-operating*)
Term Loan Long Term 4.66 ACUITE BB (Downgraded and Issuer not co-operating*)
Term Loan Long Term 3.17 ACUITE BB (Downgraded and Issuer not co-operating*)
Term Loan Long Term 14.22 ACUITE BB (Downgraded and Issuer not co-operating*)
Term Loan Long Term 7.10 ACUITE BB (Downgraded and Issuer not co-operating*)
Bank Guarantee Short Term 1.50 ACUITE A4 (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 6.00 ACUITE BB (Downgraded and Issuer not co-operating*)
Proposed Bank Facility Long Term 27.44 ACUITE BB (Downgraded and Issuer not co-operating*)
Bank Guarantee Short Term 4.00 ACUITE A4 (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 2.00 ACUITE BB (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 5.00 ACUITE BB (Downgraded and Issuer not co-operating*)
Term Loan Long Term 23.65 ACUITE BB (Downgraded and Issuer not co-operating*)
Term Loan Long Term 27.37 ACUITE BB (Downgraded and Issuer not co-operating*)
Term Loan Long Term 6.89 ACUITE BB (Downgraded and Issuer not co-operating*)
Term Loan Long Term 4.66 ACUITE BB (Downgraded and Issuer not co-operating*)
Term Loan Long Term 3.17 ACUITE BB (Downgraded and Issuer not co-operating*)
Term Loan Long Term 14.22 ACUITE BB (Downgraded and Issuer not co-operating*)
Term Loan Long Term 7.10 ACUITE BB (Downgraded and Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
State Bank of India Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 4.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
Punjab National Bank Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 1.50 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
State Bank of India Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 2.00 Simple ACUITE B+ | Downgraded | Issuer not co-operating*
State Bank of India Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 7.00 Simple ACUITE B+ | Downgraded | Issuer not co-operating*
Punjab National Bank Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 5.00 Simple ACUITE B+ | Downgraded | Issuer not co-operating*
Indian Bank Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 6.00 Simple ACUITE B+ | Downgraded | Issuer not co-operating*
Not Applicable Not Applicable Proposed Long Term Bank Facility Not Applicable Not Applicable Not Applicable 27.44 Simple ACUITE B+ | Downgraded | Issuer not co-operating*
Indian Bank Not Applicable Term Loan Not available Not available Not available 14.22 Simple ACUITE B+ | Downgraded | Issuer not co-operating*
Punjab National Bank Not Applicable Term Loan Not available Not available Not available 6.89 Simple ACUITE B+ | Downgraded | Issuer not co-operating*
Punjab National Bank Not Applicable Term Loan Not available Not available Not available 3.17 Simple ACUITE B+ | Downgraded | Issuer not co-operating*
State Bank of India Not Applicable Term Loan Not available Not available Not available 7.10 Simple ACUITE B+ | Downgraded | Issuer not co-operating*
State Bank of India Not Applicable Term Loan Not available Not available Not available 4.66 Simple ACUITE B+ | Downgraded | Issuer not co-operating*
State Bank of India Not Applicable Term Loan Not available Not available Not available 23.65 Simple ACUITE B+ | Downgraded | Issuer not co-operating*
State Bank of India Not Applicable Term Loan Not available Not available Not available 27.37 Simple ACUITE B+ | Downgraded | Issuer not co-operating*

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