RATING RATIONALE
11Dec2023

Pashupati Cotspin Limited

Brickwork Ratings downgrades the long-term ratings, reaffirms the short-term ratings for the Bank Loan Facilities of Rs. 144.50 Crs. of Pashupati Cotspin Limited based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(12 Dec 2022)
Present
Fund Based 139.11 137.00 Long Term BWR B+ /Stable
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
BWR B /Stable
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
Non Fund Based 7.50 7.50 Short Term BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Grand Total 146.61 144.50 (Rupees One Hundred Forty Four Crores and Fifty 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 Dec 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 downgraded the long term rating to BWR B/Stable , reaffirms the short-term ratings at BWR A4 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

Pashupati Cotspin Limited (Erstwhile Pashupati Cotspin LLP) is a Kadi based company initially incorporated as limited liability partnership in 2013; however the same was reconstituted into a public limited company in July 2017. PCL is listed on the SME Platform of National Stock Exchange (NSE). PCL is part of the Pashupati group operating in the textile industry for more than two decades and is promoted by Mr. Saurin Parikh and his family. The Company is engaged in cotton ginning and spinning of cotton yarn. The products sold by the Company includes cotton bales, cotton yarn and black cotton seeds. The manufacturing unit of the Company is located in  Kadi, Gujarat with an installed capacity of 37000 spindles for the spinning unit and 37707 metric tonnes per annum of cotton for the ginning unit.

(Information received as on 13 March 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

No outstanding Non-Cooperation rating with other Credit Rating Agencies.

ANY OTHER INFORMATION

NA

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 137.00
BWR B/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
12Dec2022
BWR B+ Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
07Dec2021
BWR BB Stable
(Downgrade/ISSUER NOT COOPERATING*)
13Mar2020
BWR BBB- Stable
(Reaffirmation and change in Outlook)
Non Fund Based ST 7.50
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
12Dec2022
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
07Dec2021
BWR A4
(Downgrade/ISSUER NOT COOPERATING*)
13Mar2020
BWR A3
(Reaffirmation and change in Outlook)
Grand Total 144.50 (Rupees One Hundred Forty Four Crores and Fifty 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
Pashupati Cotspin Limited
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 LoanOut-standing 49.58 _ 49.58
2 Punjab National Bank Term LoanProposed 14.62 _ 14.62
3 Punjab National Bank Cash CreditSanctioned 50.30 _ 50.30
4 Punjab National Bank Cash CreditSanctioned 22.50 _ 22.50
5 Punjab National Bank Bank GuaranteeSanctioned _ 7.50 7.50
6 Yes Bank Term LoanOut-standing _ _ 0.00
Total 137.00 7.50 144.50
TOTAL (Rupees One Hundred Forty Four Crores and Fifty lakhs Only)
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