September 26, 2013

Mumbai

Sarla Performance Fibers Limited

Ratings Suspended

Total Bank Loan Facilities Rated	Rs.1089.9 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 Sarla Performance Fibers Ltd (SPFL). The suspension of ratings is on account of non-cooperation by SPFL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SPFL is yet to provide adequate information to enable CRISIL to assess SPFL’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 1993, SPFL manufactures polyamide texturised yarn, conventional lycra, and spandex covered yarn, which are used in manufacturing innerwear, narrow fabrics, hosiery, sportswear, and high-tenacity industrial yarns. SPFL is promoted and managed by Mr. Madhusudhan Jhunjhunwala and Mr. Krishna Jhunjhunwala. The company is based in Mumbai (Maharashtra), and has its facilities in Silvassa (Union Territory of Dadra and Nagar Haveli) and Vapi (Gujarat)

Annexure 1 - Details of various bank facilities

Current facilities			Previous facilities
Facility	Amount (Rs. Million)	Rating	Facility	Amount (Rs. Million)	Rating
Bank Guarantee	25	Suspended	Bank Guarantee	25	CRISIL A2
Cash Credit	10	Suspended	Cash Credit	10	CRISIL BBB+/Stable
Letter of Credit^	564	Suspended	Letter of Credit^	564	CRISIL A2
Post Shipment Credit	85	Suspended	Post Shipment Credit	85	CRISIL A2
Pre Shipment Facility *	405.9	Suspended	Pre Shipment Facility *	405.9	CRISIL A2
Total	1089.9	--	Total	1089.9	--

* Interchangeable with Post Shipment Credit, Letter of Credit, Bank Gaurantee and Buyers Credit

upto the extent of Rs. 130.0 Million.

^Interchangeable with Pre Shipment Facility upto the extent of Rs. 190.0 Million

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Tanuja Abhinandan Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1818 Mobile: +91- 98192 48980 Email:tanuja.abhinandan@crisil.com Jyoti Parmar Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1835 E-mail: jyoti.parmar@crisil.com	Arvind L Rao Director – CRISIL Ratings Tel: +91-22-4097 8278 Email: arvind.rao@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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September 26, 2013	http://www.crisil.com