January 28, 2013

Mumbai

Gupta Synthetics Limited

Ratings Suspended

Total Bank Loan Facilities Rated
Rs.1450 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 Gupta Synthetics Ltd (GSL). The suspension of ratings is on account of non-cooperation by GSL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, GSL is yet to provide adequate information to enable CRISIL to assess GSL’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 August 1984 as a private limited company, GSL was reconstituted as a public limited company in October 1988. The company manufactures partially-oriented yarn, fully-drawn yarn, texturised yarn, and drawn-twisted yarn.

Annexure 1 - Details of various bank facilities

Current facilities
Previous facilities
Facility
Amount
(Mln)
Rating
Facility
Amount (Mln)
Rating
Bank Guarantee
34.5
Suspended
Bank Guarantee
34.5
CRISIL D
Cash Credit
560.5
Suspended
Cash Credit
560.5
CRISIL D
Letter of Credit
405
Suspended
Letter of Credit
405
CRISIL D
Term Loan
450
Suspended
Term Loan
450
CRISIL D
Total
1450
--
Total
1450
--

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CRISIL Limited
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Subodh K Rai
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Email: subodh.rai@crisil.com


Manish Kumar Gupta
Director - CRISIL Ratings
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Email:manish.gupta@crisil.com

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January 28, 2013

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