RATING RATIONALE
02Dec2022

Katyayini Paper Mills Pvt Ltd

Brickwork Ratings removes from the Issuer Not-Cooperating category and downgrades the ratings for the Bank Loan Facilities of Rs. 50.84 Crs. of Katyayini Paper Mills Pvt Ltd.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(15 Feb 2022)
Present
Fund Based 50.50 45.40 Long Term BWR BB- /Stable
Downgrade/ISSUER NOT COOPERATING*
BWR D
removal from ISSUER NOT COOPERATING* category/Downgraded
Non Fund Based 10.00 5.44 Short Term BWR A4
Reaffirmation/ISSUER NOT COOPERATING*
BWR D
removal from ISSUER NOT COOPERATING* category/Downgraded
Grand Total 60.50 50.84 (Rupees Fifty Crores and Eighty Four 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
Note: This rating pertains to an existing assignment received prior to October 6, 2022.


RATING ACTION / OUTLOOK

The ratings of bank loans of Katyayini Paper Mills Pvt Ltd (KPML or the Company) were downgraded and migrated to Issuer Not Cooperating (INC) category in February 2021 owing to the non-receipt of surveillance mandate and necessary information/data to enable BWR to carry out a surveillance review. The ratings continued to remain under the Issuer Not Cooperating category since then and were reviewed under the INC category in Feb 2022. The ratings are now removed from the INC category based on the review carried out by BWR and downgraded based on the lender's feedback indicating irregularities and delays in the conduct of the bank loan accounts rated by BWR.

KEY RATING DRIVERS

Credit Strengths:


Credit Risks:

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has applied its rating methodology on a standalone basis as detailed in the Rating Criteria detailed below

RATING SENSITIVITIES

Upward: BWR may revise the ratings upward, in case of significant improvement in the liquidity position, debt coverage indicators, and satisfactory conduct of the bank account for a continuous period.
 

LIQUIDITY INDICATORS - Poor

Liquidity in the company is poor as indicated by cash accruals, cash and bank balances, and WC utilization. During FY22, the company generated cash accruals of around Rs. 8.54 crores against the annual fixed debt obligation of around Rs. 16.18 crores with cash and cash equivalents of Rs.1.09 crores during FY22. The fund-based working capital utilization is approx. 98% during April 2022 - October 2022 as confirmed by the lender. The current ratio is moderate at 1.24 times as on March 31, 2022. However, the company is expecting to generate net cash accruals of Rs. 16.25 crore and Rs. 19 crores in FY23 and FY24 respectively.

ABOUT THE ENTITY

Katyayini Paper Mills Private Limited (KPML) was incorporated in the year 2006 as a manufacturer of Printing and Writing Paper from Indian waste paper and pulp. Mr. Rajesh Aggarwal (Managing director) and Mrs. Veena Agarwal( Director) look after the day-to-day activities of the company. Its manufacturing unit is located at Kashipur, Uttarakhand, and its registered office is at Rajendra Place, Delhi.

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 21-22
(Audited)
FY 20-21
(Audited)
Operating Revenue Rs.Crs. 129.85 122.02
EBITDA Rs.Crs. 15.00 -0.37
PAT Rs.Crs. 1.84 -11.50
Tangible Net Worth Rs.Crs. 23.88 22.05
Total Debt/TNW Times 2.56 3.29
Current Ratio Times 1.24 0.88

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

NA

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 45.40
BWR D
(removal from ISSUER NOT COOPERATING* category/Downgraded)
15Feb2022
BWR BB- Stable
(Downgrade/ISSUER NOT COOPERATING*)
12Feb2021
BWR BB Stable
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
05Dec2019
BWR BBB Stable
(Reaffirmation)
Non Fund Based ST 5.44
BWR D
(removal from ISSUER NOT COOPERATING* category/Downgraded)
15Feb2022
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
12Feb2021
BWR A4
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
05Dec2019
BWR A3
(Reaffirmation)
Grand Total 50.84 (Rupees Fifty Crores and Eighty Four 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

Pallav Kumar Goel

Ratings Analyst pallavkumar.g@brickworkratings.com

Saurabh Agarwal

Manager - Ratings saurabh.a@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Katyayini Paper Mills Pvt 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 1.34 _ 1.34
2 Punjab National Bank Cash CreditSanctioned 35.50 _ 35.50
3 Yes Bank Cash CreditSanctioned 8.56 _ 8.56
4 Yes Bank Letter of Credit (Inland/Import) / Buyers CreditSanctioned _ 5.44 5.44
Total 45.40 5.44 50.84
TOTAL (Rupees Fifty Crores and Eighty Four lakhs Only)
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