Brickwork Ratings downgraded the long term rating and reaffirmed the short term rating and simultaneously withdrawn ratings for the Bank Loan Facilities of Rs. 33.69 Crs. of Mohit Paper Mills Ltd.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (13 Sep 2023) |
Present | ||
Fund Based | 31.19 | 31.19 | Long Term |
BWR BB+/Stable
Downgrade/ISSUER NOT COOPERATING* |
BWR BB
/Stable Continues to be in ISSUER NOT COOPERATING* category/Downgraded and withdrawn |
Non Fund Based | 2.50 | 2.50 | Short Term |
BWR A4
Downgrade/ISSUER NOT COOPERATING* |
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed and withdrawn |
Grand Total | 33.69 | 33.69 | (Rupees Thirty Three Crores and Sixty Nine lakhs Only) |
Brickwork Ratings has downgraded the long term/ reaffirmed the short term rating at “BWR BB+ (Stable)/BWR A4" Continues to be in ISSUER NOT COOPERATING* category and simultaneously withdrawn the ratings to the bank loan facilities of “Mohit Paper Mills Ltd.”, at the request of the company, to their Bank Loan facilities amounting Rs.33.69 Crores. The request letter from the company to this effect, as well as the ‘No Objection’ certificate from the banker of the company for withdrawal of the rating, are held on record.
The downgrade in rating factors decline in the overall financial performance of the company in Q2FY24 as compared Q1FY24, decline in the operating income during H1FY24 vs H1FY23 and limited available information for review at the time of withdrawal of rating. OPM has declined to 5.40% in FY23 from 5.80% in FY22 and gearing of the company has marginally deteriorated to 1.17 times in FY23 from 1.11 times in FY22 due to additional external borrowings.
The withdrawal of ratings is in line with BWR's policy on the withdrawal of its ratings on bank loan facilities, and the relevant documents are held on record.
Macro Economic Indicator | Sector | Industry | Basic Industry |
---|---|---|---|
Commodities | Forest Materials | Paper, Forest & Jute Products | Paper & Paper Products |
Mohit Paper Mills Limited (MPML) was incorporated as a public limited company in 1992. The company manufactures printing and writing paper, newsprint, soda ash and tissue papers at its 3 manufacturing plants with an aggregated installed capacity of 42900 MTPA and captive plant of 7.5 MW. The company is listed on the Bombay Stock Exchange. MMPL sells its products under the brand names - Sapphire Plus, Crystal Bright, and Sunshine with a distribution network in PAN India. The company is promoted by Mr. Sandeep Jain and his family.
Note: As per the information available in June 2022.
STATUS OF NON-COOPERATION WITH PREVIOUS CRA
No outstanding rating with other CRAs
RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)Facilities | Current Rating (2023) | 2023 (History) | 2022 | 2021 | 2020 | ||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating | Date | Rating |
Fund Based | LT | 31.19 |
BWR BB/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded and withdrawn) |
13Sep2023 |
BWR BB+Stable
(Downgrade/ISSUER NOT COOPERATING*) |
12Apr2022 |
BWR BB+Stable
(Reaffirmation) |
22Jan2021 |
BWR BB+Stable
(Downgrade) |
NA |
NA
|
0.00 |
NA
|
NA |
NA
|
13Jun2022 |
BWR BBB-Stable
(Upgrade) |
NA |
NA
|
NA |
NA
|
||
Non Fund Based | ST | 2.50 |
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed and withdrawn) |
13Sep2023 |
BWR A4
(Downgrade/ISSUER NOT COOPERATING*) |
12Apr2022 |
BWR A4+
(Reaffirmation) |
22Jan2021 |
BWR A4+
(Downgrade) |
NA |
NA
|
0.00 |
NA
|
NA |
NA
|
13Jun2022 |
BWR A3
(Upgrade) |
NA |
NA
|
NA |
NA
|
||
Grand Total | 33.69 | (Rupees Thirty Three Crores and Sixty Nine 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 | |
---|---|
Vijayalakshmi R Senior Rating Analyst Board : +91 044 24663326 vijayalakshmi.r@brickworkratings.com |
RamaKrishna Director - Ratings ramakrishna@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 | Union Bank of India | Term Loan | 3.29 | _ | 3.29 | |
2 | Union Bank of India | Cash Credit | 21.00 | _ | 21.00 | |
3 | Union Bank of India | Bank Guarantee | _ | 0.25 | 0.25 | |
4 | Union Bank of India | Foreign Letter of Credit (FLC) | _ | 2.25 | 2.25 | |
5 | Union Bank of India | CECL | 0.23 | _ | 0.23 | |
6 | Union Bank of India | Covid Term Loan | 6.67 | _ | 6.67 | |
Total | 31.19 | 2.50 | 33.69 | |||
TOTAL (Rupees Thirty Three Crores and Sixty Nine 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 11,560 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.
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