November 16, 2013
Himachal Fibres Limited
(Refer to Annexure 1 for details on facilities)
CRISIL has suspended its ratings on the bank facilities of Himachal Fibres Limited (HFL). The suspension of ratings is on account of non-cooperation by HFL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, HFL is yet to provide adequate information to enable CRISIL to assess HFL’s ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria ‘Information Availability Risk in Credit Ratings’
About the Company
HFL, set up in 1980, was promoted by Mr. B K Garodia in collaboration with Himachal Pradesh Minerals & Industrial Development Corporation Ltd. It was acquired by the present management, headed by Mr. Rajesh Gupta, in 2005-06 (refers to financial year, April 1 to March 31). The company’s manufacturing facility in Himachal Pradesh has a capacity of 20,344 spindles. In 2001, HFL was declared a sick unit under the Board for Industrial & Financial Reconstruction (BIFR) and became non-operational from 2003-04. The plant restarted operations in 2007-08, with cotton yarn; however, as demand for cotton yarn was decreasing, the company started the production of polyester yarn, acrylic yarn, and knitted cloth after June 2008. In October 2010, the company was discharged from the purview of BIFR, after its net worth turned positive.
Annexure 1 - Details of various bank facilities
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