India Ratings & Research (Ind-Ra) has assigned Umadutt Industries Limited (UIL) a Long-Term Issuer rating of 'IND D'.
UIL´s bank loan ratings have also been assigned as follows:
- Long-term loans INR62.4m: ´IND D'
- Fund-based limits INR71.5m: ´IND D'
Key Rating Drivers
The ratings are constrained by UIL's regular over-utilisation of cash credit account and delays in debt servicing for the 12 months ended February 2013.
Positive: Timely payment of principal and interest of term loans and regularisation of cash credit account over two consecutive quarters may lead to a rating upgrade.
Incorporated in 2001, Umadutt has its office in Guwahati (Assam) and a manufacturing plant of woven sacks with an installed capacity of 2,520 metric tonne per year in Meghalaya.
Total adjusted debt at FYE12 was INR159.7m, with INR73.1m of fund-based limits, INR74.2m of term loans and remaining as unsecured loans.
Cash flow from operation was INR15.8m in FY12, and is likely to be negative with the company's increasing working capital requirements.