RATING RATIONALE
09Nov2023

Himachal Fibres Ltd

Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 21.20 Crs. of Himachal Fibres Ltd based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(02 Nov 2022)
Present
Fund Based 16.20 16.20 Long Term BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Non Fund Based 5.00 5.00 Short Term BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Grand Total 21.20 21.20 (Rupees Twenty One Crores and Twenty lakhs 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

The rating is due for a review in Nov 2023 and BWR took up with the client to provide the required information over emails and through telephone calls. Despite the best efforts of BWR to get at least the minimum required information for a review, the entity has not provided the same. In the absence of adequate information/monthly submission of NDS (No Default Statements) by the Company, BWR is unable to assess the Company’s performance and its ability to service its debt and maintain a valid rating.

Hence, on account of inadequate information and lack of management cooperation, Brickwork Ratings has reaffirmed the long-term and short-term ratings at BWR D and continues the ratings under “Issuer Not Cooperating” category.

The lenders/investors may note to exercise due caution while using the above rating which mentions "Issuer Not Cooperating" since the rating lack any projections or forward looking component as it is arrived at based on the best available information without any management/banker's interaction.

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 the 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 the information required for a review of the rating.

ABOUT THE ENTITY
Macro Economic Indicator Sector Industry Basic Industry
Consumer Discretionary Textiles Textiles & Apparels Other Textile Products

Himachal Fibres Limited was incorporated on 20th February 1980. The Company was Promoted by Mr B.K. Garodia a technocrat in financial collaboration with Himachal Pradesh Mineral & Ind. Development Corp. Ltd. The company manufactures cotton and synthetic blended yarn. The Company belongs to the then Birlas (Yash) Group. In 1984, the first time the company came out as a Public Company. Himachal Fibres Limited was exporting more than 80% of its production to overseas markets like Europe and Mauritius. HFL is engaged in manufacturing of grey/dyed cotton/Synthetics yarns with different blends and having its registered office at Industrial Area Barotiwala, Himachal Pradesh. The Company is currently managed by Mr Gian Chand Thakur, Mr Manoj Kumar and Mr Surjit Singh and other directors.

(Information received as on 14 July 2020)

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. View Previous Document

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

CARE Ratings migrated the company's ratings to the ISSUER NOT COOPERATING* category w.e.f. 08th March 2018 as the issuer did not provide the information to conduct the rating exercise.

ANY OTHER INFORMATION

The latest financial information has been sourced from Publicly available information (BSE / NSE website).

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2023) 2022 2021 2020
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 16.20
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
02Nov2022
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
11Oct2021
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
14Jul2020
BWR D
(Reaffirmation)
Non Fund Based ST 5.00
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
02Nov2022
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
11Oct2021
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
14Jul2020
BWR D
(Reaffirmation)
Grand Total 21.20 (Rupees Twenty One Crores and Twenty lakhs Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - Simple

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.

Hyperlink/Reference to applicable Criteria
Analytical Contacts

Gokul D

Rating Analyst gokul.d@brickworkratings.com

Suryanarayan N

Chief Manager - Ratings suryanarayan.n@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Himachal Fibres 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 State Bank Of India (SBI) Working Capital Term LoanSanctioned 3.20 _ 3.20
2 State Bank Of India (SBI) Cash CreditSanctioned 13.00 _ 13.00
3 State Bank Of India (SBI) Letter of CreditSanctioned _ 5.00 5.00
Total 16.20 5.00 21.20
TOTAL (Rupees Twenty One Crores and Twenty lakhs Only)
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