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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 19.50 | ACUITE B+ | Downgraded | Issuer not co-operating* | - |
| Bank Loan Ratings | 0.50 | - | ACUITE A4 | Reaffirmed | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 20.00 | - | - |
| Rating Rationale |
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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. 20.00 crore bank facilities of United Polyfab Private Limited (UPPL). The rating is on account of the best available information and is flagged as Issuer not cooperating.
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| About the Company |
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UPPL, 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.
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| Non-cooperation by the issuer/borrower: |
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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.
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| Limitation regarding information availability: |
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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 to comment. |
| Rating Sensitivity |
| No information has been shared by the entity/ available for Acuite to comment. |
| Material Covenants |
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None |
| Liquidity Position |
| No information has been shared by the entity/ available for Acuite to comment. |
| Outlook: Not Applicable |
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| Other Factors affecting Rating |
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None |
| Status of non-cooperation with previous CRA |
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None |
| Any other information |
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Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups. |
| 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 |
| Note on Complexity Levels of the Rated Instrument |
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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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