RATING RATIONALE
13Jun2022

Yash Pakka Ltd.

Brickwork Ratings revises the ratings for the Bank Loan Facilities of Rs. 330.00 Crs. of Yash Pakka Ltd. based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(09 Mar 2021)
Present
Fund Based 306.59 306.59 Long Term BWR BBB /Stable
Assignment
BWR BBB - /Stable
Downgrade/ISSUER NOT COOPERATING*
Non Fund Based 23.41 23.41 Short Term BWR A3+
Assignment
BWR A3
Downgrade/ISSUER NOT COOPERATING*
Grand Total 330.00 330.00 (Rupees Three Hundred Thirty Crores Only)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure
*Issuer did not cooperate; based on best available information.


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

Brickwork Ratings has revised the ratings assigned to the bank facilities of Rs.330 Crs. of Yash Pakka Ltd to BWR BBB- (Stable)/ A3, while simultaneously placing the ratings under “Issuer Not Cooperating” category, based on the best available information, as the issuer did not cooperate. The revision in the rating is owing to the delay in timely sharing of the requisite information despite regular follow-ups. Brickwork Ratings (BWR) has consistently taken up with the company through emails and telephone calls to provide the requisite information for the review of the ratings. The Company has provided us with partial information and showed interest in reviewing the rating, but was not able to provide the complete information within the stipulated timeline. Therefore, in-line with the SEBI guidelines, BWR has migrated the ratings to the INC category. BWR will carry out the review of the rating as soon as the company provides all the information which is necessary for the rating process.

LIMITATIONS OF THE RATING

Information availability risk is a key factor in the assessment of credit risk as generally non-cooperation by the rated entities to provide required information for a review of the assigned rating may also be accompanied by financial stress. Users of the credit rating should therefore take into account the possible deterioration in the credit quality of the rated entity arising from its non-transparency and withholding of information required for a review of the rating.

ABOUT THE ENTITY

Promoted by Shri K. K. Jhunjhunwala and his family members YPL was incorporated on 5 May 1981. After his demise in the year 2005, his son, Mr. Ved Krishna took over the charge. The company is into manufacture of paper for packaging and compostable tableware products for replacing styrofoam and plastic. The company launched an innovative range of compostable tableware products under the brand name ‘CHUK’.

KEY FINANCIAL INDICATORS

Please refer to the following link for the previous detailed rationale that captures the Key Financials Drivers and their Description, Liquidity Position. Rating Sensitivities, Key Financial Indicators.

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2022) 2022 (History) 2021 2020 2019
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating Date Rating
Fund Based LT 306.59
BWR BBB-/Stable
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
09Mar2021
BWR BBB Stable
(Assignment)
NA
NA
NA
NA
Non Fund Based ST 23.41
BWR A3
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
09Mar2021
BWR A3+
(Assignment)
NA
NA
NA
NA
Grand Total 330.00 (Rupees Three Hundred Thirty Crores Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - NA

BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.

Analytical Contacts

Aditya Singh

Ratings Analyst adityasingh@brickworkratings.com

Sudeep Sanwal

Associate Director - Ratings sudeep.s@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Yash Pakka Ltd.
ANNEXURE-I
Details of Bank Facilities rated by BWR
SL.No. Name of the Bank/Lender Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 Punjab National Bank Term LoanSanctioned 26.15 _ 26.15
2 Punjab National Bank Cash CreditSanctioned 8.56 _ 8.56
3 Punjab National Bank Letter of CreditSanctioned _ 0.99 0.99
4 State Bank Of India (SBI) Cash CreditSanctioned 41.24 _ 41.24
5 State Bank Of India (SBI) Letter of CreditSanctioned _ 9.69 9.69
6 State Bank Of India (SBI) CECLSanctioned 4.12 _ 4.12
7 State Bank Of India (SBI) Standby Line of Credit - EPCSanctioned 4.00 _ 4.00
8 State Bank Of India (SBI) Bank GuaranteeSanctioned _ 2.00 2.00
9 State Bank Of India (SBI) Term LoanSanctioned 4.29 _ 4.29
10 UCO Bank Term LoanSanctioned 16.10 _ 16.10
11 UCO Bank Bank GuaranteeSanctioned _ 6.41 6.41
12 UCO Bank Cash CreditSanctioned 4.85 _ 4.85
13 UCO Bank Letter of CreditSanctioned _ 1.11 1.11
14 Un tied portion Term LoanProposed 187.82 _ 187.82
15 Union Bank of India Term LoanSanctioned 3.38 _ 3.38
16 Union Bank of India Cash CreditSanctioned 6.08 _ 6.08
17 Union Bank of India Letter of CreditSanctioned _ 3.21 3.21
Total 306.59 23.41 330.00
TOTAL (Rupees Three Hundred Thirty Crores Only)
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