Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 405.03 Crs. of Morarjee Textiles Limited based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (16 Aug 2021) |
Present | ||
Fund Based | 381.03 | 381.03 | 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 | 24.00 | 24.00 | 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 | 405.03 | 405.03 | (Rupees Four Hundred Five Crores and Three lakhs Only) |
Rating action
Brickwork Ratings has reaffirmed the rating on the bank facilities of Morarjee Textile Ltd (MTL or the ‘Company’) at BWR D, Issuer not Cooperating.
Nature of Non-cooperation
BWR took up with the issuer to provide required information/NDS over emails and through telephone calls. Despite the best efforts of BWR to get the required information, the entity has not provided the same. In absence of adequate information from the Company, BWR is unable to assess the Company’s financial performance and its ability to service its debt and maintain a valid rating.
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, noncooperation by the rated entities to provide required information for a review of the assigned rating may also be accompanied by financial stress. The current rating action has been taken on the basis of the limited information on the issuer’s performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as it may not adequately reflect the credit risk profile of the society, despite the downgrade.
ABOUT THE ENTITYMorarjee Textiles Limited (MTL) was incorporated in 1995. The company has an integrated manufacturing plant with spinning(31,568 Spindles), weaving(284 Looms), printing, processing(183 lakh meters) and packing facilities in Nagpur. MTL’s fabric segment has two divisions in Nagpur —the shirting division and the printed fabric division (for voile, satin, poplin and other high-end products). MTL is a listed company and is listed both on BSE & NSE stock exchanges in India.
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
Facilities | Current Rating (2022) | 2021 | 2020 | 2019 | |||||
---|---|---|---|---|---|---|---|---|---|
Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
Fund Based | LT | 381.03 |
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
07Jan2021 |
BWR BWR D
(Reaffirmation/ISSUER NOT COOPERATING*) |
18Nov2020 |
BWR BWR D
(Update to committee) |
06Jun2019 |
BWR BWR BBB/Stable
(Update to committee) |
0.00 |
NA
|
16Aug2021 |
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
04Jan2020 |
BWR BWR D
(Downgrade) |
19Feb2019 |
BWR BWR BBB/Stable
(Downgrade) |
||
Non Fund Based | ST | 24.00 |
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
07Jan2021 |
BWR BWR D
(Reaffirmation/SSUER NOT COOPERATING) |
18Nov2020 |
BWR BWR D
(Update to committee) |
06Jun2019 |
BWR BWR A3
(Update to committee) |
0.00 |
NA
|
16Aug2021 |
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
04Jan2020 |
BWR BWR D
(Downgrade) |
19Feb2019 |
BWR BWR A3
(Downgrade) |
||
Grand Total | 405.03 | (Rupees Four Hundred Five Crores and Three lakhs Only) |
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 CriteriaAnalytical Contacts | |
---|---|
Shah Niraj Ratings Analyst nirajshah@brickworkratings.com |
Vidya Shankar Principal Director - Ratings Board : +91 80 4040 9940 vidyashankar@brickworkratings.com |
1-860-425-2742 | media@brickworkratings.com |
SL.No. | Name of the Bank/Lender | Type Of Facilities | Long Term(Rs.Crs.) | Short Term(Rs.Crs.) | Total(Rs.Crs.) | |
---|---|---|---|---|---|---|
1 | Indian Bank | Term LoanSanctioned | 104.22 | _ | 104.22 | |
2 | Indian Bank | Cash CreditSanctioned | 32.00 | _ | 32.00 | |
3 | Indian Bank | Letter of CreditSanctioned | _ | 20.00 | 20.00 | |
4 | Axis Bank Ltd. | Term LoanSanctioned | 134.87 | _ | 134.87 | |
5 | ICICI Bank | Cash CreditSanctioned | 25.00 | _ | 25.00 | |
6 | IDBI Bank | Cash CreditSanctioned | 8.00 | _ | 8.00 | |
7 | IDBI Bank | Letter of CreditSanctioned | _ | 4.00 | 4.00 | |
8 | Kotak Mahindra Bank | Cash CreditSanctioned | 3.00 | _ | 3.00 | |
9 | Kotak Mahindra Bank | Packing Credit (PC)Sanctioned | 27.00 | _ | 27.00 | |
10 | Saraswat Bank | Cash CreditSanctioned | 19.00 | _ | 19.00 | |
11 | TATA Capital Financial Services Limited | Term LoanSanctioned | 27.94 | _ | 27.94 | |
Total | 381.03 | 24.00 | 405.03 | |||
TOTAL (Rupees Four Hundred Five Crores and Three lakhs Only) |
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About Brickwork RatingsBrickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. BWR has rated over 12,000 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partner. BWR has its corporate office in Bengaluru and a country-wide presence with its offices in Ahmedabad, Chandigarh, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi along with representatives in 150+ locations.
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