November 15, 2013

Mumbai

Satia Industries Limited

Ratings Suspended

Total Bank Loan Facilities Rated
Rs.918.5 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 Satia Industries Limited (SIL). The suspension of ratings is on account of non-cooperation by SIL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SIL is yet to provide adequate information to enable CRISIL to assess SIL’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

Set up by Dr. Ajay Satia in 1980, SIL (formerly, Satia Paper Mills Ltd) manufactures writing and printing paper; the company’s only production facility, in Muktsar (Punjab), has capacity of 40,000 tonnes per annum. The company has a fully integrated paper mill, with a pulping facility based on agricultural residue and a chemical recovery plant. SIL sells 60 per cent of its products to state textbook boards through open tenders or rate contracts, and the rest through dealers.

Annexure 1 - Details of various bank facilities

Current facilities
Previous facilities
Facility
Amount
(Rs. Million)
Rating
Facility
Amount
(Rs. Million)
Rating
Bank Guarantee
60
Suspended
Bank Guarantee
60
CRISIL D
Cash Credit
190
Suspended
Cash Credit
190
CRISIL D
Letter of Credit
60
Suspended
Letter of Credit
60
CRISIL D
Packing Credit
47
Suspended
Packing Credit
47
CRISIL D
Proposed Long-Term Bank Loan Facility
107.9
Suspended
Proposed Long-Term Bank Loan Facility
107.9
CRISIL D
Term Loan
453.6
Suspended
Term Loan
453.6
CRISIL D
Total
918.5
--
Total
918.5
--

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Jyoti Parmar
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Vasudevan R
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Email:vasudevan.r@crisil.com

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About CRISIL LIMITED
CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services. We are India's leading ratings agency. We are also the foremost provider of high-end research to the world's largest banks and leading corporations.

About CRISIL Ratings
CRISIL Ratings is India's leading rating agency. We pioneered the concept of credit rating in India in 1987. With a tradition of independence, analytical rigour and innovation, we have a leadership position. We have rated over 60,000 entities, by far the largest number in India. We are a full-service rating agency. We rate the entire range of debt instruments: bank loans, certificates of deposit, commercial paper, non-convertible debentures, bank hybrid capital instruments, asset-backed securities, mortgage-backed securities, perpetual bonds, and partial guarantees. CRISIL sets the standards in every aspect of the credit rating business. We have instituted several innovations in India including rating municipal bonds, partially guaranteed instruments and microfinance institutions. We pioneered a globally unique and affordable rating service for Small and Medium Enterprises (SMEs).This has significantly expanded the market for ratings and is improving SMEs' access to affordable finance. We have an active outreach programme with issuers, investors and regulators to maintain a high level of transparency regarding our rating criteria and to disseminate our analytical insights and knowledge.

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Last updated: May, 2013

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November 15, 2013

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