December 09, 2013

Mumbai

Mohit Paper Mills Limited

Ratings Suspended

Total Bank Loan Facilities Rated	Rs.130 Million
Long-Term Rating	Suspended
Short-Term Rating	Suspended

(Refer to Annexure 1 for details on facilities)

CRISIL has suspended its ratings on the bank facilities of Mohit Paper Mills Ltd. (MPML). The suspension of ratings is on account of non-cooperation by MPML with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, MPML is yet to provide adequate information to enable CRISIL to assess MPML’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

Incorporated in 1992 by Mr. Surendra Kumar Jain and Mr. Sandeep Jain, MPML manufactures writing and printing paper (WPP), newsprint paper, and soda ash. The products manufactured by the company includes Mohit cameo, super printing, maplitho, white cover, cream wove, offset printing paper and newsprint paper. Its facility in Bijnor (Uttar Pradesh) has capacity to manufacture 14,850 tonnes of paper per annum. In September 2011, the company expanded its existing capacities to 21,450 tonnes of paper per annum, at a total cost of Rs.20 million. MPML also has a 4.5 megawatt co-generation power plant for its in-house consumption. It also sells a part of the power to its associate company, Centurion Castings Pvt Ltd.

Annexure 1 - Details of various bank facilities

Current facilities			Previous facilities
Facility	Amount (Rs. Million)	Rating	Facility	Amount (Rs. Million)	Rating
Bank Guarantee	10	Suspended	Bank Guarantee	10	CRISIL A4+
Cash Credit	60	Suspended	Cash Credit	60	CRISIL BB+/Negative
Foreign Letter of Credit	20	Suspended	Foreign Letter of Credit*	20	CRISIL A4+
Proposed Long-Term Bank Loan Facility	12	Suspended	Proposed Long-Term Bank Loan Facility	12	CRISIL BB+/Negative
Term Loan	28	Suspended	Term Loan	28	CRISIL BB+/Negative
Total	130	--	Total	130	--

* includes Rs.1.0 Million as Inland Letter of Credit.

Media Contacts	Analytical Contacts	Customer Service Helpdesk
Tanuja Abhinandan Communications and Brand Management CRISIL Limited Phone: +91-22- 3342 1818 Email:tanuja.abhinandan@crisil.com Jyoti Parmar Communications and Brand Management CRISIL Limited Phone: +91-22- 3342 1835 E-mail: jyoti.parmar@crisil.com	Mohit Makhija Director - CRISIL Ratings Phone: +91-124-672 2000 Email: mohit.makhija@crisil.com	Timings: 10.00 am to 7.00 pm Toll free number: 1800 267 1301 Email:CRISILratingdesk@crisil.com

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Last updated: May, 2013

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December 09, 2013	http://www.crisil.com