July 11, 2012

Mumbai

Uniroyal Industries Limited

Ratings suspended

Total Bank Loan Facilities Rated	Rs. 99.9 Million
Long-Term Rating	Suspended
Short-Term Rating	Suspended

(Refer to Annexure 1 for details on facilities)

CRISIL has suspended its rating on the bank facilities of Uniroyal Industries Limited (UIL). The suspension of ratings is on account of non-cooperation by UIL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, UIL is yet to provide adequate information to enable CRISIL to assess UIL’s ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key credit factor in its rating process and views 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 Group

UIL (formerly, Uniroyal Textile Industries Ltd [UTL]) was incorporated in 1993 by Mr. Arvind Mahajan. It manufactures woven labels, which are used in the garments segment, and home furnishings, footwear, and furniture industries. UIL’s plant in Panchkula (Haryana), has capacity of 0.6 million square metres of labels per annum.

In 2006-07 (refers to financial year, April 1 to March 31), the other group companies Siddhartha Textile Mills Ltd (trading in synthetic yarn) and Uniroyal Pharmaceutical Ltd (pharmaceutical business) were amalgamated with UTL and renamed UIL. The pharmaceutical division was subsequently closed down because of losses. UIL is also a del credere agent of Reliance Industries Ltd (RIL) for synthetic yarn. In 2008-09 (refers to financial year, April 1 to March 31), UIL transferred its trading operations to AMT, a 100 per cent subsidiary of UIL.

UIL has 50 per cent stake in Uniroyal Builders and Developers (UBD) and 25 per cent stake in Uniroyal Builders and Promoters (UBP). UBD is currently undertaking residential project at Baddi (Haryana), which is almost completed and was mainly funded through customer advances. UBP is not functional as on June 30, 2010. UIL received share in profit of around Rs.10 million from UBD in 2009-10.

Annexure 1 - Details of various bank facilities

Current facilities			Previous facilities
Facility	Amount (Mln)	Rating	Facility	Amount (Mln)	Rating
Bank Guarantee	5	Suspended	Bank Guarantee	5	CRISIL A3
Long-Term Loan	64.9	Suspended	Long-Term Loan	64.9	CRISIL BBB-/Stable
Cash Credit	30	Suspended	Cash Credit	30	CRISIL BBB-/Stable

Media Contacts	Analytical Contacts	CRISIL Rating Desk
Mitu Samar Director, Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1838 E-mail: mitu.samar@crisil.com Tanuja Abhinandan Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1818 Email: tanuja.abhinandan@crisil.com	Subodh K Rai Senior Director - CRISIL Ratings Tel: +91-0124-672 2000 Email: subodh.rai@crisil.com Mohit Makhija Director - CRISIL Ratings Tel: +91-0124-672 2000 Email: mohit.makhija@crisil.com	Tel: +91-22-3342 3047/3342 3064 Email:CRISILratingdesk@crisil.com

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Last updated: April 30, 2012

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