Rating Rationale
December 18, 2018 | Mumbai
20 Microns Limited
Ratings migrated to 'CRISIL BB+/Stable/CRISIL A4+' ; Ratings Withdrawn
 
Rating Action
Total Bank Loan Facilities Rated Rs.175 Crore
Long Term Rating CRISIL BB+/Stable (Migrated from 'CRISIL BB+/Stable ISSUER NOT COOPERATING'*; Rating Withdrawn)
Short Term Rating CRISIL A4+ (Migrated from 'CRISIL A4+ ISSUER NOT COOPERATING'*; Rating Withdrawn)
1 crore = 10 million
Refer to annexure for Details of Instruments & Bank Facilities
*Issuer did not cooperate; based on best-available information
Detailed Rationale

Due to inadequate information, CRISIL, in line with Security and Exchange Board of India guidelines, had migrated its ratings on the bank facilities of 20 Microns Limited (20 Microns) to 'CRISIL BB+/Stable/CRISIL A4+ Issuer not cooperating'. However, the company has subsequently provided the necessary information and has requested for withdrawal of ratings on its bank facilities. The company has also provided a no-objection certificate from its bankers.Consequently, CRISIL has migrated its ratings on 20 Microns's bank facilities to 'CRISIL BB+/Stable/CRISIL A4+' from 'CRISIL BB+/Stable/CRISIL A4+ Issuer not cooperating' and has withdrawn the ratings. The rating action is in line with CRISIL's policy on withdrawal of bank loan ratings.

About the Company

Incorporated in 1987 and promoted by Mr Chandresh Parikh, 20 Microns manufactures micronised minerals that are used as functional fillers and extenders in diverse industries such as paints, plastics, paper, adhesives, and ceramics. Product profile includes calcium carbonate, feldspar, China clay, talc, and speciality chemicals. The company is listed on the Bombay Stock Exchange and the National Stock Exchange.
 
20 Microns Nano Ltd, a subsidiary of 20 Microns, was incorporated in 1994 and manufactures highly specialised minerals.

Key Financial Indicators
Particulars Unit 2018 2017
Revenue Rs crore 389 360
Profit after tax (PAT) Rs crore 15.9 12.7
PAT margin % 4.1 3.5
Adjusted debt/adjusted networth Times 0.83 1.52
Interest coverage Times 2.37 2.26

Any other information: Not applicable

Note on complexity levels of the rated instrument:
CRISIL complexity levels are assigned to various types of financial instruments. The CRISIL complexity levels are available on www.crisil.com/complexity-levels. Users are advised to refer to the CRISIL complexity levels for instruments that they consider for investment. Users may also call the Customer Service Helpdesk with queries on specific instruments.
Annexure - Details of Instrument(s)
ISIN Name of Instrument Date of Allotment Coupon
Rate (%)
Maturity Date Issue
Size
(Rs. Cr)
Rating Assigned  with Outlook
NA Funded Interest Term Loan NA NA Mar-2021 12.79 Withdrawn
NA Long Term Loan NA NA Sep-2022 12.7 Withdrawn
NA Long Term Loan NA NA Feb-2023 21.08 Withdrawn
NA Corporate Loan NA NA Jul-2021 11.31 Withdrawn
NA Long Term Loan NA NA Aug-2022 1.98 Withdrawn
NA Corporate Loan NA NA Jul-2021 2.82 Withdrawn
NA Long Term Loan NA NA Feb-2023 18.31 Withdrawn
NA Proposed Long Term Bank Loan Facility NA NA NA 1.93 Withdrawn
NA Cash Credit NA NA NA 61.0 Withdrawn
NA Bank Guarantee NA NA NA 2.0 Withdrawn
NA Inland/Import Letter of Credit NA NA NA 27.0 Withdrawn
NA Foreign Exchange Forward NA NA NA 2.08 Withdrawn
Annexure - Rating History for last 3 Years
  Current 2018 (History) 2017  2016  2015  Start of 2015
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund-based Bank Facilities  LT/ST  146.00  Withdrawn 04-09-18  CRISIL BB+/Stable/ CRISIL A4+ (Issuer Not Cooperating)*  16-08-17  CRISIL BB+/Stable/ CRISIL A4+      27-11-15  CRISIL BB-/Stable/ CRISIL A4+  -- 
            22-02-17  CRISIL BB/Stable/ CRISIL A4+           
Non Fund-based Bank Facilities  LT/ST  29.00  Withdrawn 04-09-18  CRISIL A4+ (Issuer Not Cooperating)*  16-08-17  CRISIL A4+      27-11-15  CRISIL A4+  -- 
            22-02-17  CRISIL A4+           
All amounts are in Rs.Cr.
*Issuer did not cooperate; based on best-available information
Annexure - Details of various bank facilities
Current facilities Previous facilities
Facility Amount (Rs.Crore) Rating Facility Amount (Rs.Crore) Rating
Bank Guarantee 2 Withdrawn Bank Guarantee 2 CRISIL A4+/Issuer Not Cooperating
Cash Credit 61 Withdrawn Cash Credit 61 CRISIL BB+/Stable/Issuer Not Cooperating
Corporate Loan 14.13 Withdrawn Corporate Loan 14.13 CRISIL BB+/Stable/Issuer Not Cooperating
Foreign Exchange Forward 2.08 Withdrawn Foreign Exchange Forward 2.08 CRISIL A4+/Issuer Not Cooperating
Funded Interest Term Loan 12.79 Withdrawn Funded Interest Term Loan 12.79 CRISIL BB+/Stable/Issuer Not Cooperating
Inland/Import Letter of Credit 27 Withdrawn Inland/Import Letter of Credit 27 CRISIL A4+/Issuer Not Cooperating
Long Term Loan 54.07 Withdrawn Long Term Loan 54.07 CRISIL BB+/Stable/Issuer Not Cooperating
Proposed Long Term Bank Loan Facility 1.93 Withdrawn Proposed Long Term Bank Loan Facility 1.93 CRISIL BB+/Stable/Issuer Not Cooperating
Total 175 -- Total 175 --
Links to related criteria
CRISILs Approach to Financial Ratios
CRISILs Bank Loan Ratings - process, scale and default recognition
Framework for Assessing Information Adequacy Risk
CRISILs Approach to Recognising Default
CRISILs Bank Loan Ratings
CRISILs Criteria for rating short term debt
The Rating Process
Understanding CRISILs Ratings and Rating Scales

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