Brickwork Ratings downgrades the ratings to BWR D for the Bank Loan Facilities of Rs. 212.00 Crs. of MAP Refoils India Ltd.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (20 Jul 2021) |
Present | ||
Fund Based | 125.50 | 125.50 | Long Term |
BWR C
|
BWR D
Downgrade |
Non Fund Based | 86.50 | 86.50 | Short Term |
BWR A4
|
BWR D
Downgrade |
Grand Total | 212.00 | 212.00 | (Rupees Two Hundred Twelve Crores Only) |
Ratings: downgraded to BWR D
The revision in rating of the bank loan facilities of the company follows the classification of the account as NPA with one of its lenders. BWR notes that the said lender had classified the accounts with them as NPA w.e.f. 16.06.2021 and had advised the same to Brickwork Rating through email dated 26.07.2021. Thus, based on the information provided by its banker (For the exposure rated by BWR), the bank loan ratings of the company have been downgraded to BWR D in conformity with extant guidelines in this regard.
For other details, please refer past rating rationale dated 20Jul2021 and 27Oct2020
KEY RATING DRIVERSANALYTICAL APPROACH - Standalone
While assigning the ratings, BWR has applied its rating methodology as detailed in the Rating
Criteria (hyperlinks provided at the end of this rationale).
Cash accrual is around 12.72 Crs against annual repayment of 5.97 Crs for FY20 . Cash accruals are expected to be in the range of 12-14 Crs against annual debt repayment of 5.97 for next two years. In the absence of any debt funded capex plan, cash accruals are used to meet working capital requirement over the medium term. However, the reliance on working capital limits is high, leading to high utilisation of its bank limits. Average Working Capital bank limit utilization is more than 90% for last 12 months. The Company has availed the moratorium granted by the lenders as a COVID relief measure (as permitted by the RBI) for its debt obligations. As per the CA certified provisional FY20, current ratio is at 1.62 times and Net Cash Accruals/Total Debt is at 0.08 times.
ABOUT THE ENTITYIncorporated in 2016, MAP Refoils India Limited is engaged in the refining of cotton seed, soya, sunflower, groundnut, corn, mustard and palm oil. It is also
engaged in cotton ginning and production of Vanaspati Ghee/Butter. The Company is a part of the Ahmedabad, Gujarat-based
MAP group, promoted by Mr. Arvindbhai K. Patel, Mr. Mehulbhai A. Patel and Mrs. Khushboo M. Patel. The Company has its registered office in Ahmedabad and its manufacturing unit is located at Kadi, Gujarat with an installed capacity of 180000 MTPA. The products are sold
under the brand name of ‘MAP’. The Company has presence prominently in Gujarat, Rajasthan, MP, Maharashtra, Punjab & UP.
Key Parameters | Units |
FY 18-19 (Audited) |
FY 17-18 (Audited) |
---|---|---|---|
Operating Revenue | Rs.Crs. | 793.46 | 957.04 |
EBITDA | Rs.Crs. | 27.01 | 27.21 |
PAT | Rs.Crs. | 4.03 | 5.93 |
Tangible Net Worth | Rs.Crs. | 70.47 | 66.44 |
Total Debt/Tangible Net Worth | Times | 1.60 | 2.38 |
Current Ratio | Times | 1.42 | 1.33 |
Facilities | Current Rating (2021) | 2021 (History) | 2020 | 2019 | 2018 | ||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating | Date | Rating |
Fund Based | LT | 125.50 |
BWR D
(Downgrade) |
20Jul2021 |
BWR C
() |
27Oct2020 |
BWR BBB-/Stable
() |
31Jul2019 |
BWR BBB-/Stable
() |
NA |
NA
|
Non Fund Based | ST | 86.50 |
BWR D
(Downgrade) |
20Jul2021 |
BWR A4
() |
27Oct2020 |
BWR A3
() |
31Jul2019 |
BWR A3
() |
NA |
NA
|
Grand Total | 212.00 | (Rupees Two Hundred Twelve Crores 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 | |
---|---|
Priya Depala Senior Rating Analyst priya.d@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 | Bank of Baroda | Cash CreditSanctioned | 38.50 | _ | 38.50 |
2 | Bank of Baroda | Term LoanOut-standing | 19.50 | _ | 19.50 |
3 | Bank of Baroda | Letter of CreditSanctioned | _ | 12.00 | 12.00 |
4 | Central Bank of India | Cash CreditSanctioned | 10.00 | _ | 10.00 |
5 | Central Bank of India | Letter of CreditSanctioned | _ | 25.00 | 25.00 |
6 | Punjab National Bank | Cash CreditSanctioned | 13.00 | _ | 13.00 |
7 | Punjab National Bank | Letter of CreditSanctioned | _ | 19.00 | 19.00 |
8 | South Indian Bank | Cash CreditSanctioned | 11.90 | _ | 11.90 |
9 | South Indian Bank | Term LoanOut-standing | 7.00 | _ | 7.00 |
10 | South Indian Bank | Letter of CreditSanctioned | _ | 9.00 | 9.00 |
11 | State Bank Of India (SBI) | Cash CreditSanctioned | 16.60 | _ | 16.60 |
12 | State Bank Of India (SBI) | Term LoanOut-standing | 9.00 | _ | 9.00 |
13 | State Bank Of India (SBI) | Letter of CreditSanctioned | _ | 21.50 | 21.50 |
Total | 125.50 | 86.50 | 212.00 | ||
TOTAL (Rupees Two Hundred Twelve Crores Only) |
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