Press Release January 07, 2025 ELKAYPEE SPINNERS PRIVATE LIMITED Rating Reaffirmed and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	17.22	ACUITE BB | Reaffirmed | Issuer not co-operating*	-
Bank Loan Ratings	3.78	-	ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Total Outstanding	21.00	-	-
Total Withdrawn	0.00	-	-
* The issuer did not co-operate; based on best available information.

Rating Rationale

­Acuité has reaffirmed its long-term rating of 'ACUITE BB' (read as ACUITE Double B) and it's short-term rating of 'ACUITE A4+' (read as ACUITE A four plus)  on the Rs.21.00 Cr. bank facilities of Elkaypee Spinners Private Limited (ESPL). This rating is now an indicative rating as client has not submitted No Default Statement (NDS) for the past 3 months. This rating is now flagged as Issuer not cooperating on account of information risk and is based on best available information.

About the Company

­Elkaypee Spinners Private Limited (ESPL) was incorporated as a private limited company in 1993. The manufacturing facility is located in Dindigul (Tamil Nadu) with installed capacity of 38000 spindles, manufacturing Polyester yarn blend. The same is supplied to textiles located in Chennai and Kolkata. The directors of the company are Mr. Lakshmi Govindasamy Ponuswamy Gounder, Mr. Govindaswamy Ponnuswamy gounder, Mr. Kandaswamy Govindasamy Senthilkumar.

About the Group

­Chenduran Cotspin India Private Limited (CCIPL) was incorporated as a private limited company in 1991 by Mr. P. Govindasamy who is having an experience of over three decades in the textile industry. The company is managed by his sons K. G. Senthil Kumar P. G. Ramesh and Mr. P. G. Balaji joined the business. The company is Chennai based and has manufacturing facility located in Tiruppur district with installed capacity of 34000 spindles, manufacturing cotton yarn and polyester yarn blend. The client profile of the company is located in Mumbai, Chennai and Kolkata.

Unsupported Rating

­Not applicable

Non-cooperation by the issuer/borrower

­­Acuité has been requesting for No Default Statements (NDS); however, despite multiple requests; the Company’s management has remained non-cooperative and not submitted the NDS for the preceding 03 consecutive months. Acuité has also been requesting for data, information and undertakings from the rated entity for conducting surveillance & review of the rating. However, the issuer/borrower failed to submit such information before the due date. Acuité believes that information risk a critical component in such ratings, and noncooperation by the issuer along with unwillingness to provide information could be a sign of potential deterioration in its overall credit quality. This rating is therefore being flagged as “Issuer not cooperating”, in line with prevailing SEBI regulations and Acuité’s policies.

Limitation regarding information availability

­The rating is based on information available from sources other than the issuer/borrower (in the absence of information provided by the issuer/borrower). Acuité has endeavoured to gather information about the entity/industry from the public domain. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit rating is based.

Rating Sensitivities

­No information provided by the issuer / available for Acuite to comment upon.

Liquidity Position

­No information provided by the issuer / available for Acuite to comment upon.

Outlook: Not applicable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 23 (Actual)	FY 22 (Actual)
Operating Income	Rs. Cr.	135.79	189.75
PAT	Rs. Cr.	0.52	1.55
PAT Margin	(%)	0.39	0.82
Total Debt/Tangible Net Worth	Times	2.65	0.84
PBDIT/Interest	Times	2.09	2.91

Status of non-cooperation with previous CRA

­Not applicable

Any other information

­None

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm

Note on complexity levels of the rated instrument

­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 06 May 2024 Letter of Credit Short Term 3.50 ACUITE A4+ (Downgraded from ACUITE A3) Proposed Short Term Bank Facility Short Term 0.28 ACUITE A4+ (Downgraded from ACUITE A3) Dropline Overdraft Long Term 2.14 ACUITE BB | Stable (Downgraded (Negative to Stable) from ACUITE BBB- | Negative) Proposed Long Term Loan Long Term 4.97 ACUITE BB | Stable (Downgraded (Negative to Stable) from ACUITE BBB- | Negative) Working Capital Term Loan Long Term 1.00 ACUITE BB | Stable (Downgraded (Negative to Stable) from ACUITE BBB- | Negative) Term Loan Long Term 3.28 ACUITE BB | Stable (Downgraded (Negative to Stable) from ACUITE BBB- | Negative) Term Loan Long Term 0.62 ACUITE BB | Stable (Downgraded (Negative to Stable) from ACUITE BBB- | Negative) Term Loan Long Term 0.18 ACUITE BB | Stable (Downgraded (Negative to Stable) from ACUITE BBB- | Negative) Cash Credit Long Term 5.00 ACUITE BB | Stable (Downgraded (Negative to Stable) from ACUITE BBB- | Negative) Term Loan Long Term 0.03 ACUITE BB | Stable (Downgraded (Negative to Stable) from ACUITE BBB- | Negative) 06 Feb 2023 Letter of Credit Short Term 3.50 ACUITE A3 (Reaffirmed) Proposed Short Term Bank Facility Short Term 0.28 ACUITE A3 (Reaffirmed) Cash Credit Long Term 5.00 ACUITE BBB- | Negative (Reaffirmed) Dropline Overdraft Long Term 3.33 ACUITE BBB- | Negative (Reaffirmed) Working Capital Term Loan Long Term 1.89 ACUITE BBB- | Negative (Reaffirmed) Term Loan Long Term 4.37 ACUITE BBB- | Negative (Assigned) Term Loan Long Term 0.93 ACUITE BBB- | Negative (Assigned) Term Loan Long Term 0.49 ACUITE BBB- | Negative (Assigned) Term Loan Long Term 0.44 ACUITE BBB- | Negative (Assigned) Term Loan Long Term 0.24 ACUITE BBB- | Negative (Assigned) Proposed Long Term Loan Long Term 0.53 ACUITE BBB- | Negative (Assigned) 14 Jan 2022 Letter of Credit Short Term 2.90 ACUITE A3 (Upgraded from ACUITE A4+) Letter of Credit Short Term 0.60 ACUITE A3 (Assigned) Proposed Short Term Bank Facility Short Term 0.04 ACUITE A3 (Assigned) Cash Credit Long Term 5.00 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Working Capital Term Loan Long Term 1.46 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Dropline Overdraft Long Term 3.64 ACUITE BBB- | Stable (Upgraded from ACUITE BB+) Dropline Overdraft Long Term 0.36 ACUITE BBB- | Stable (Assigned)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating CSB Bank Limited Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE BB | Reaffirmed | Issuer not co-operating* CSB Bank Limited Not avl. / Not appl. Dropline Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.14 Simple ACUITE BB | Reaffirmed | Issuer not co-operating* CSB Bank Limited Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.50 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating* Not Applicable Not avl. / Not appl. Proposed Long Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 4.97 Simple ACUITE BB | Reaffirmed | Issuer not co-operating* Not Applicable Not avl. / Not appl. Proposed Short Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.28 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating* CSB Bank Limited Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 15 Dec 2027 3.28 Simple ACUITE BB | Reaffirmed | Issuer not co-operating* CSB Bank Limited Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 04 Nov 2026 0.62 Simple ACUITE BB | Reaffirmed | Issuer not co-operating* Small Industries Development Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 10 Feb 2025 0.18 Simple ACUITE BB | Reaffirmed | Issuer not co-operating* Small Industries Development Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 10 May 2024 0.03 Simple ACUITE BB | Reaffirmed | Issuer not co-operating* CSB Bank Limited Not avl. / Not appl. Working Capital Term Loan Not avl. / Not appl. Not avl. / Not appl. 30 Nov 2027 1.00 Simple ACUITE BB | Reaffirmed | Issuer not co-operating*

* The issuer did not co-operate; based on best available information.

*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

Sr. No.  Company name 1 Elkaypee Spinners Private Limited 2 ­Chenduran Cotspin India Private Limited

Contacts

Mohit Jain Senior Vice President - Rating Operations Moparthi Anuradha Devi Senior Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai. Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating. Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.