Press Release

Press Release

May 18, 2026

JAI SHIV SYNCOTEX PRIVATE LIMITED
Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	1.07	ACUITE BB \| Stable \| Assigned	-	RBI
Bank Loan Ratings	0.00	30.00	ACUITE BB \| Stable \| Reaffirmed	-	RBI
Total Outstanding	0.00	31.07	-	-	-
Total Withdrawn	0.00	0.00	-	-	-

Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.

Rating Rationale

Acuite has reaffirmed the long term rating of “ACUITE BB” (read as ACUITE BB) for Rs.30.00 Cr. bank loan facilities of Jai Shiv Syncotex Private Limited. The outlook is "Stable". Further, Acuite has assigned long term rating of “ACUITE BB” (read as ACUITE BB) on the Rs. 1.07 Cr. bank loan facilities of Jai Shiv Syncotex Private Limited. The outlook is “Stable”.

Rationale for rating
The rating factors in the company’s modest scale of operations, marked by an operating revenue of Rs. 112.07 Cr. in FY2025 as against Rs. 92.53 Cr. in FY2024. The EBITDA and PAT margin stood at 4.11% and 0.60%, respectively, in FY2025. Moreover, the revenue of the company is estimated at Rs. 148.85 Cr. in FY2026. The rating further takes into account the adequate liquidity position backed by sufficient net cash accruals against its debt repayment obligations, moderate current ratio, and absence of any major debt-funded capex plans in the near to medium term. The rating also draws comfort from the experienced management and the established track record of operations. However, the aforementioned factors are partly offset by the average financial risk profile of the company as reflected by the gearing ratio at 1.26 times as on 31st March 2025 along with the interest coverage ratio and debt service coverage ratio at 1.63 times and 1.18 times, respectively, as on 31st March 2025. The working capital operations also remained intensive, marked by GCA days, which stood at 224 days as on 31st March 2025. The rating further remains constrained by the competitive nature of the industry and susceptibility of margins to fluctuations in raw material prices.

About the Company

Incorporated in 2009 and based in Bhilwara, Rajasthan, Jai Shiv Syncotex Private Limited is engaged in the manufacturing and trading of synthetic fabrics/ cloths. The company is recognized for its extensive range of shirting and suiting materials. The current directors of company are Mr. Giriraj Ajmera and Mrs. Nirmala Ajmera.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has taken standalone financial and business risk profile of Jai Shiv Syncotex Private Limited to arrive at the rating.

Key Rating Drivers

Strengths

Established track record of operations and Experienced management
The company is managed by the Ajmera family, who have vast experience of more than a decade in the same line of business. The family manages other companies in the same line of business as Vimal Merchant Private Limited, Vimal Royal Fabrics Private Limited, and Shivyansh Texfab Private Limited. This has enabled them to gain a strong understanding of the market and industry dynamics as well as establish healthy relationships with their suppliers and clientele. Acuite believes that the company will continue to derive benefit from the established track record of operations and management’s strong understanding of market dynamics.

Increase in revenue albeit decrease in profitability margin
The operating revenue of the company stood at Rs.112.07 Cr. in FY2025 as against Rs.92.53 Cr. in FY2024, contributed by an increase in the sales volume of fabrics as well as yarn. Furthermore, the revenue of the company is estimated at Rs.148.85 Cr. in FY2026. Additionally, the company has orders of Rs.15.00 Cr. in hand as on April 2026. The EBITDA margin of the company stood at 4.11% in FY2025 against 5.34% in FY2024 on account of increase in raw material procurement prices, processing, and other manufacturing expenses. Despite same, the PAT margin stood at 0.60% in FY2025 against 0.38% in FY2024, supported by income from other sources. Acuite expects the company to sustain its revenue and profitability in the near to medium term on the back of execution of orders. However, the ability of the company to improve its profitability margins while scaling up its operations will remain a key monitorable factor.

Weaknesses

Average Financial Risk Profile
The financial risk profile of the company is marked by average net worth, gearing, and debt protection metrics. The tangible net worth stood at Rs. 25.92 Cr. as on 31st March 2025 as against Rs. 21.08 Cr. as on 31st March 2024. The increase in net worth is on account of the accretion of profits into reserves and treatment of unsecured loans as quasi equity. The capital structure of the company is marked by gearing ratio at 1.26 times as on 31st March 2025 against 1.49 times as on 31st March 2024. Further, coverage indicators are reflected by the interest coverage ratio and debt service coverage ratio, which stood at 1.63 times and 1.18 times, respectively, as on 31st March 2025 against 1.60 times and 0.96 times as on 31st March 2024. The TOL/TNW ratio of the company stood at 1.96 times as on 31st March 2025 against 2.03 times as on 31st March 2024 and the DEBT-EBITDA stood at 5.92 times as on 31st March 2025 against 6.70 times as on 31st March 2024. Acuité expects the financial risk profile of the company to remain in a similar range, backed by steady accruals and no major debt-funded capex plans in the near to medium term.

Intensive Working Capital Operations
The working capital operations of the company are intensive, marked by GCA days, which stood at 224 days as on 31st March 2025 as against 225 days as on 31st March 2024. The high GCA days are on account of a high outstanding balance in the form of debtors and inventory. The inventory days stood at 98 days as on 31st March 2025 against 109 days as on 31st March 2024 as the company is required to maintain adequate inventory as and when required for order execution. Further, the debtor days of the company stood at 120 days as on 31st March 2025 against 102 days as on 31st March 2024 and the creditor days stood at 64 days as on 31st March 2025 against 48 days as on 31st March 2024. Acuite expects the working capital operations of the company to remain in a similar range in the near to medium term owing to the nature of operations.

Competitive nature of the industry and Susceptibility of margins to fluctuations in raw material prices
The company remains exposed to the inherent challenges of operating in a highly competitive textile industry, where the presence of numerous organized and unorganized players limits pricing power and often compresses operating margins. In this environment, sustaining differentiation becomes difficult, especially as customer preferences are price-sensitive and market cycles can shift quickly. Further, the company’s profitability is susceptible to volatility in the prices of key raw materials. In case of any sharp raw material cost fluctuations, the ability of the company to pass on such adverse impact to its customers and sustain its operating profitability will be a key rating monitorable factor.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:

Consistent growth in operating income by more than 40%, supported by healthy order accretion.
Significant improvement in the operating profitability position.
Improvement in the capital structure and debt protection metrics.

Potential triggers (individual or collective) for a downward rating action:

Decline in revenue y-o-y and/or operating profitability margins below 2%.
Stretch in the working capital cycle.
Deterioration in the financial risk profile owing to any large debt-funded capex.

Liquidity Position

Adequate

The liquidity profile of the company is adequate, marked by net cash accruals of Rs.1.72 crore as on 31st March 2025 against the debt repayment obligations of Rs.0.96 crore in the same period. In addition, the cash and bank balance with the company stood at Rs.0.08 Cr. as on 31st March 2025. The current ratio of the company stood at 1.46 times as on 31st March 2025. Further, the average fund based bank limit utilization stood at 94.01% in the last six months ending April 2026. Acuite expects the liquidity profile of the company to remain adequate in the near to medium term, supported by sufficient net cash accruals against debt repayment obligations, a moderate current ratio, and the absence of any major debt-funded capex plans in the near to medium term.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	112.07	92.53
PAT	Rs. Cr.	0.68	0.36
PAT Margin	(%)	0.60	0.38
Total Debt/Tangible Net Worth	Times	1.26	1.49
PBDIT/Interest	Times	1.63	1.60

Status of non-cooperation with previous CRA (if applicable)

Not Applicable

Any other information

None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.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
17 Feb 2025	Cash Credit	Long Term	26.00	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	2.04	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	0.41	ACUITE BB \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	1.55	ACUITE BB \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Listing Status	Regulated By	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Union Bank of India	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	28.93	Simple	ACUITE BB \| Stable \| Reaffirmed
Union Bank of India	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.07	Simple	ACUITE BB \| Stable \| Assigned
Union Bank of India	Not avl. / Not appl.	Term Loan	Unlisted	RBI	17 Aug 2022	Not avl. / Not appl.	31 Jul 2027	0.83	Simple	ACUITE BB \| Stable \| Reaffirmed
Union Bank of India	Not avl. / Not appl.	Term Loan	Unlisted	RBI	11 Feb 2022	Not avl. / Not appl.	31 Oct 2028	0.24	Simple	ACUITE BB \| Stable \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Archita Sharma
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

List of instruments and names of regulators of the instruments

As required by SEBI Circular (SEBI/HO/DDHS/DDHS-PoD-2/I/4685/2026) dated February 10, 2026, a list of activities or instruments falling under the purview of various Financial Sector Regulators (FSRs), along with the names of respective FSRs, is being disclosed below:
A. Rating Activity:

Sr. No.	Instrument / activity Name	Regulator of the instrument
1	Listed/Proposed to be listed Bonds/Debentures/Preference Shares (all securities)	SEBI
2	Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities)	MCA
3	Listed PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	SEBI
4	Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI)¹	SEBI
5	Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	RBI
6	Listed Commercial Paper and NCDs with original maturity less than 1 year	RBI
7	Unlisted Commercial Paper and NCDs with original maturity less than 1 year	RBI
8	Loan Facilities (Fund/Non-Fund Based) from Bank / NBFCs/ NHB/ FIs ²	RBI
9	External Commercial Borrowings and other similar borrowings	RBI
10	Certificates of Deposit	RBI
11	Fixed Deposits raised by NBFCs, Banks, HFCs, FIs	RBI
12	Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, FIs	MCA
13	Inter Corporate Deposits/Loans extended by Corporates	MCA
14	Borrowing programme ³	-
15	Issuer Ratings ⁴	-
16	Credit Ratings for Capital Protection Oriented Schemes (by Mutal Funds and AIFs)	SEBI
17	Credit quality ratings (CQRs) for Mutual Fund Schemes and Schemes of AIFs	SEBI
18	Listed Security Receipts	SEBI
19	Unlisted Security Receipts	RBI
20	Independent Credit Evaluation (ICE)	RBI
21	Expected Loss Ratings (For Loan Facilities [Fund/Non-Fund based] from Banks/NBFCs/NHB/FIs)	RBI
22	Expected Loss Ratings (Listed / Proposed to be listed Bonds / Debentures / Preference Shares (all securities))	SEBI
23	Expected Loss Ratings (Unlisted / Proposed to be unlisted Bonds/ Debentures / Preference Shares (all securities))	MCA
24	Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) ¹	Investor-side Regulator such as IRDAI, PFRDA ⁵

¹Includes securitisation transactions involving assignee payout, acquirer's payout.

² Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions.
³The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In Press Release(s) subsequent to issuance(s), Acuite shall separately capture the rated quantum details along with names of respective regulators.
⁴ There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs.
⁵ These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026 and accordingly, investor side regulators have been included.

B. Other activities:

Sr. No.	Activity Name	Regulator of the activity
1	Monitoring Agency	SEBI
2	Research activities, incidental to rating, such as research for Economy, Industries and Companies ⁶	Not applicable

⁶ permitted by SEBI vide SEBI Master Circular for CRAs.

Disclosure on instruments / activities and names of regulators:

A list of products/activities or ratings of instruments falling under the purview of various financial sector regulators (FSRs) along with the names of respective FSRs has also been duly disclosed by Acuite on its website. A link to the same has been provided below for ready reference:

https://acuite.in/Activities-and-Regulators.html

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.

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