July 25, 2014
Mumbai
Star Paper Mills Ltd.
 
Ratings Suspended
 
Total Bank Loan Facilities Rated Rs.190 Million
Long Term Rating Suspended
(Refer to Annexure 1 for Facility-wise details)

CRISIL has suspended its ratings on the bank facilities of Star Paper Mills Ltd (SPML). The suspension of ratings is on account of non-cooperation by SPML with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SPML is yet to provide adequate information to enable CRISIL to assess SPML'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 in 1936, SPML is an integrated pulp and paper manufacturer. The company manufactures a wide range of paper products, but mainly produces kraft paper. SPML is part of the Duncan Goenka group, headed by Mr. G P Goenka. The company's mill at Saharanpur (Uttar Pradesh) has four paper machines, with aggregate capacity of 75,000 tonnes per annum (tpa). 

Annexure 1 - Details of various bank facilities
Current facilities Previous facilities
Facility Amount (Rs.Million) Rating Facility Amount (Rs.Million) Rating
Cash Credit 190 Suspended Cash Credit 190 CRISIL B/Negative
Total 190 -- Total 190 --
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July 25, 2014

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