RATING RATIONALE 30 Sept 2020 Ballavpur Paper Mfg. Ltd

Brickwork Ratings reaffirms the long term and short term ratings for the Bank Loan Facilities aggregating Rs. 42.04 Crs. of Ballavpur Paper Mfg. Ltd (“BPML” or the “Company”) based on best available information, as the issuer did not cooperate. Accordingly the ratings for the said instrument are as under

Amount (Rs.Crs) Rating#

Facilities* Tenure Previous^ Previous Present Sep, 2019 Present

Fund Based: Cash Credit 11.25 11.25 Long Term Loan 17.50 17.50 Term BWR D BWR D, Reaffirmed, Reaffirmed, Non-Fund Based: Issuer Not Cooperating** Bank Guarantee (0.50) (0.50) Short Letter of Credit 12.75 12.75 Term Forward Contract 0.54 0.54

Total 42.04 42.04 INR Forty-Two Crores and Four Lakhs Only # Please refer to the BWR website www.brickworkratings.com/ for the definition of the ratings. ​ ​ * Details of Bank facilities are provided in Annexure-I ^ Ratings migrated to RNR category on 11 Sep 2020. **Issuer​ did not cooperate, based on best available information.

RATING ACTION: Reaffirmation

Brickwork Ratings has reaffirmed the rating of the long term and short term bank loan facilities of ​ ​ Ballavpur Paper Mfg. Ltd aggregating Rs. 42.04 crores at BWR D, along with simultaneous ​ ​ migration of the rating to “Issuer not Cooperating” category, based on best available information ​ as the issuer did not cooperate.

NATURE OF NON-COOPERATION

The rating was due for review in September 2020. BWR took up with the company and its banker over emails and through telephone calls, to provide the required information for a review. Despite the best efforts of BWR to get at least the minimum required information for the review, the entity and its bankers have not provided the same, nor have they shared their latest financials. The company has also not submitted “No Default Statements”(NDS).

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Due to lack of cooperation from the company’s management to provide adequate information about ​ its current performance and on account of non submission of NDS, BWR is unable to assess the ​ company’s financial performance or its ability to service its debt and maintain a valid rating. ​ Accordingly, the rating is placed under “Issuer Not Cooperating” category. The rating ​ reaffirmation is based on the lack of up to date feedback on the company’s operations - either from the company itself, or from its lender. ​ ​

LIMITATIONS OF THE RATING Information availability risk is a key factor in the assessment of credit risk as generally, non cooperation by the rated entities to provide the required information for a review of the assigned rating may also be accompanied by financial stress. Users of the credit rating should therefore take into account the possible deterioration in the credit quality of the rated entity arising from its non- transparency and withholding of the information required for a review of the rating.

KEY FINANCIAL INDICATORS [AS AVAILABLE WITH BWR as on Sep 2019]: ​ ​ Key Financial Indicators Units FY 2018 FY 2017 Result Type Audited Audited Net Sales/Revenues ₹ Cr 141.88 133.85 EBITDA ₹ Cr 6.79 10.87 PAT ₹ Cr (4.26) 3.77 Tangible Net Worth ₹ Cr 42.14 46.41 Total Debt/Tangible Net Worth Times 0.82 0.83 Current Ratio Times 1.00 1.01

COMPANY’s PROFILE (Information as available in Sep 2019) Ballavpur Paper Manufacturing Limited (BPML) was incorporated in August 2006, erstwhile known as Bengal Paper Mill. Company. It is into manufacturing of Kraft paper using waste paper, with an installed capacity of 39600 MT per annum. Kraft paper is primarily used in making corrugated boxes used in industrial packaging. The manufacturing unit is located on 17 acres of land in the outskirts of , . The company has a coal-based captive power plant of 3.5 MW. The directors of the company are Mr. Bikash Mukherjee, Mr. Ujjal Kumar Upadhaya, Mr. Gaurav Bagaria and Mr. Mohammed Feroz.

NON-COOPERATION WITH PREVIOUS RATING AGENCY IF ANY: CRISIL has ​ downgraded the rating at CRISIL D, and continues in “Issuer not cooperating” category for facility amounting to Rs. 33.00 Crs on 21 January 2020.

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RATING HISTORY FOR THE PREVIOUS THREE YEARS [including withdrawal and suspended] S Name of Current Rating- Sep 2020 Chronology of Rating History for the past 3 years along . Instrumen with outlook/watch, if applicable N t o

Type(L Amoun Rating Date(s) & Date(s) & Date(s) & rating(s) ong t rating(s) rating(s) assigned assigned in year term/ Outstan assigned in year in year 2018 2017# Short ding 2019^ Term) (Rs. in Crs.)

1 Bank Loan Long 28.75 10.09.19 03.09.18 20.03.17 . Facility Term BWR D, FB 28. BW FB 28. BW FB 40. BWR Reaffirmed 75 R D, 75 R D, 48 BB+/ Issuer Not Reaf Dow Stable Cooperating N 13. firm NF 13. ngra Assig Short 13.29 * FB 29 ed B 29 ded ned Term with To 42. redu NF 12. BWR tal 04 ction B 75 A4+ in Assig amo ned unt Tot 53. To 42. al 23 tal 04

Total 42.04 INR Forty Two Crores and Four Lakhs Only *Issuer did not cooperate, based on best available information. ^Migrated to Rating not Reviewed on 15 June 2020. ​ #Migrated to Rating not Reviewed on 07 Aug 2018.

COMPLEXITY LEVELS OF THE INSTRUMENTS

For more information, visit www.brickworkratings.com/download/ComplexityLevels.pdf ​

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Hyperlink/Reference to applicable Criteria ● General Criteria ● Approach to Financial Ratios ● Short Term Debt ● What constitutes Non-Cooperation Analytical Contacts Investor and Media Relations

Protusha Bera Analyst 9073918941 [email protected] Liena Thakur Assistant Vice President - Corporate Communications Anuradha Gupta +91 84339 94686 Director - Ratings [email protected] B: +91 9073918943 [email protected] ANNEXURE I- Ballavpur Paper Mfg. Ltd Details of Bank Loan Facilities rated by BWR

Sl.N Name of the Type of Facilities Long Term[Rs. Crs] Short Term Total o. Bank [Rs. Crs] [Rs. Crs]

1 State Bank Cash Credit 4.00 - 4.00 of Term Loan 2.11 - 2.11 Letter of Credit - 8.00 8.00 Forward Contract - 0.24 0.24

Axis Bank Cash Credit 7.25 - 7.25 2 Letter of Credit - 4.75 4.75 Bank - (0.50) (0.50) Guarantee(Sublimit of - 0.30 0.30 Cash Credit) Forward Contract

3 ICICI Bank Term Loan 15.39 - 15.39

TOTAL INR Forty-Two Crores and Four Lakhs Only 42.04

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About Brickwork Ratings : Brickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered ​ Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitisation Products, Municipal Bonds, etc. BWR has rated over 11,400 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partners. BWR has its corporate office in Bengaluru and a country-wide presence with its offices in Ahmedabad, Chandigarh, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi along with representatives in 150+ locations.

DISCLAIMER Brickwork Ratings (BWR) has assigned the rating based on the information obtained from the issuer and other reliable sources, which are deemed to be accurate. BWR has taken considerable steps to avoid any data distortion; however, it does not examine the precision or completeness of the information obtained. And hence, the information in this report is presented “as is” without any express or implied warranty of any kind. BWR does not make any representation in respect to the truth or accuracy of any such information. The rating assigned by BWR should be treated as an opinion rather than a recommendation to buy, sell or hold the rated instrument and BWR shall not be liable for any losses incurred by users from any use of this report or its contents. BWR has the right to change, suspend or withdraw the ratings at any time for any reasons.

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