RATING RATIONALE
13Jun2022

Yash Pakka Ltd.

Brickwork Ratings revises the ratings for the Bank Loan Facilities of Rs. 330.00 Crs. of Yash Pakka Ltd. based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(09 Mar 2021)
Present
Fund Based 306.59 306.59 Long Term BWR BBB /Stable
Assignment
BWR BBB - /Stable
Downgrade/ISSUER NOT COOPERATING*
Non Fund Based 23.41 23.41 Short Term BWR A3+
Assignment
BWR A3
Downgrade/ISSUER NOT COOPERATING*
Grand Total 330.00 330.00 (Rupees Three Hundred Thirty Crores 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

Brickwork Ratings has revised the ratings assigned to the bank facilities of Rs.330 Crs. of Yash Pakka Ltd to BWR BBB- (Stable)/ A3, while simultaneously placing the ratings under “Issuer Not Cooperating” category, based on the best available information, as the issuer did not cooperate. The revision in the rating is owing to the delay in timely sharing of the requisite information despite regular follow-ups. Brickwork Ratings (BWR) has consistently taken up with the company through emails and telephone calls to provide the requisite information for the review of the ratings. The Company has provided us with partial information and showed interest in reviewing the rating, but was not able to provide the complete information within the stipulated timeline. Therefore, in-line with the SEBI guidelines, BWR has migrated the ratings to the INC category. BWR will carry out the review of the rating as soon as the company provides all the information which is necessary for the rating process.

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 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 information required for a review of the rating.

ABOUT THE ENTITY

Promoted by Shri K. K. Jhunjhunwala and his family members YPL was incorporated on 5 May 1981. After his demise in the year 2005, his son, Mr. Ved Krishna took over the charge. The company is into manufacture of paper for packaging and compostable tableware products for replacing styrofoam and plastic. The company launched an innovative range of compostable tableware products under the brand name ‘CHUK’.

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 21-22
(Audited)
FY 20-21
(Audited)
Operating Revenue Rs.Crs. 291.09 191.91
EBITDA Rs.Crs. 65.14 40.64
PAT Rs.Crs. 38.20 16.72
Tangible Net Worth Rs.Crs. 162.75 129.70
Total Debt/Tangible Net Worth Times 0.64 0.72
Current Ratio Times 1.15 1.10
RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2022) 2022 (History) 2021 2020 2019
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating Date Rating
Fund Based LT 306.59
BWR BBB-/Stable
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
09Mar2021
BWR BBB Stable
(Assignment)
NA
NA
NA
NA
Non Fund Based ST 23.41
BWR A3
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
09Mar2021
BWR A3+
(Assignment)
NA
NA
NA
NA
Grand Total 330.00 (Rupees Three Hundred Thirty Crores Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - NA

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.

Analytical Contacts

Aditya Singh

Ratings Analyst adityasingh@brickworkratings.com

Sudeep Sanwal

Associate Director - Ratings sudeep.s@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Yash Pakka 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 Punjab National Bank Term LoanSanctioned 26.15 _ 26.15
2 Punjab National Bank Cash CreditSanctioned 8.56 _ 8.56
3 Punjab National Bank Letter of CreditSanctioned _ 0.99 0.99
4 State Bank Of India (SBI) Cash CreditSanctioned 41.24 _ 41.24
5 State Bank Of India (SBI) Letter of CreditSanctioned _ 9.69 9.69
6 State Bank Of India (SBI) CECLSanctioned 4.12 _ 4.12
7 State Bank Of India (SBI) Standby Line of Credit - EPCSanctioned 4.00 _ 4.00
8 State Bank Of India (SBI) Bank GuaranteeSanctioned _ 2.00 2.00
9 State Bank Of India (SBI) Term LoanSanctioned 4.29 _ 4.29
10 UCO Bank Term LoanSanctioned 16.10 _ 16.10
11 UCO Bank Bank GuaranteeSanctioned _ 6.41 6.41
12 UCO Bank Cash CreditSanctioned 4.85 _ 4.85
13 UCO Bank Letter of CreditSanctioned _ 1.11 1.11
14 Un tied portion Term LoanProposed 187.82 _ 187.82
15 Union Bank of India Term LoanSanctioned 3.38 _ 3.38
16 Union Bank of India Cash CreditSanctioned 6.08 _ 6.08
17 Union Bank of India Letter of CreditSanctioned _ 3.21 3.21
Total 306.59 23.41 330.00
TOTAL (Rupees Three Hundred Thirty Crores Only)
Print and Digital Media

The Rating Rationale is sent to you for the sole purpose of dissemination through your print, digital or electronic media. While it may be used by you acknowledging credit to BWR, please do not change the wordings in the rationale to avoid conveying a meaning different from what was intended by BWR. BWR alone has the sole right of sharing (both direct and indirect) its rationales for consideration or otherwise through any print or electronic or digital media.

About Brickwork Ratings

Brickwork 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 11,541 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.

Disclaimer

Brickwork Ratings India Pvt. Ltd. (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by the Reserve Bank of India [RBI], offers credit ratings of Bank Loan facilities, 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. [ hereafter referred to as "Instruments"]. BWR also rates NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations.

BWR wishes to inform all persons who may come across Rating Rationales and Rating Reports provided by BWR that the ratings assigned by BWR are based on information obtained from the issuer of the instrument and other reliable sources, which in BWR's best judgment are considered reliable. The Rating Rationale / Rating Report & other rating communications are intended for the jurisdiction of India only. The reports should not be the sole or primary basis for any investment decision within the meaning of any law or regulation (including the laws and regulations applicable in Europe and also the USA).

BWR also wishes to inform that access or use of the said documents does not create a client relationship between the user and BWR.

The ratings assigned by BWR are only an expression of BWR's opinion on the entity / instrument and should not in any manner be construed as being a recommendation to either, purchase, hold or sell the instrument.

BWR also wishes to abundantly clarify that these ratings are not to be considered as an investment advice in any jurisdiction nor are they to be used as a basis for or as an alternative to independent financial advice and judgment obtained from the user's financial advisors. BWR shall not be liable to any losses incurred by the users of these Rating Rationales, Rating Reports or its contents. BWR reserves the right to vary, modify, suspend or withdraw the ratings at any time without assigning reasons for the same.

BWR's ratings reflect BWR's opinion on the day the ratings are published and are not reflective of factual circumstances that may have arisen on a later date. BWR is not obliged to update its opinion based on any public notification, in any form or format although BWR may disseminate its opinion and analysis when deemed fit.

Neither BWR nor its affiliates, third party providers, as well as the directors, officers, shareholders, employees or agents (collectively, "BWR Party") guarantee the accuracy, completeness or adequacy of the Ratings, and no BWR Party shall have any liability for any errors, omissions, or interruptions therein, regardless of the cause, or for the results obtained from the use of any part of the Rating Rationales or Rating Reports. Each BWR Party disclaims all express or implied warranties, including, but not limited to, any warranties of merchantability, suitability or fitness for a particular purpose or use. In no event shall any BWR Party be liable to any one for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of any part of the Rating Rationales and/or Rating Reports even if advised of the possibility of such damages. However, BWR or its associates may have other commercial transactions with the company/entity. BWR and its affiliates do not act as a fiduciary.

BWR keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of the respective activity. As a result, certain business units of BWR may have information that is not available to other BWR business units. BWR has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.

BWR clarifies that it may have been paid a fee by the issuers or underwriters of the instruments, facilities, securities etc., or from obligors. BWR's public ratings and analysis are made available on its web site, www.brickworkratings.com. More detailed information may be provided for a fee. BWR's rating criteria are also generally made available without charge on BWR's website.

This disclaimer forms an integral part of the Ratings Rationales / Rating Reports or other press releases, advisories, communications issued by BWR and circulation of the ratings without this disclaimer is prohibited.

BWR is bound by the Code of Conduct for Credit Rating Agencies issued by the Securities and Exchange Board of India and is governed by the applicable regulations issued by the Securities and Exchange Board of India as amended from time to time.