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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 150.70 | ACUITE BB+ | Downgraded | Issuer not co-operating* | - |
| Bank Loan Ratings | 3.00 | - | ACUITE A4+ | Downgraded | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 153.70 | - | - |
| Rating Rationale |
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Acuité has downgraded the long-term rating rating from 'ACUITE BBB-' (read as ACUITE triple B minus) to ‘ ACUITE BB+’ (read as ACUITE double B plus) and short-term rating from 'ACUITE A3' (read as ACUITE A three) to ‘ACUITE A4+’ (read as ACUITE A four plus) on Rs.153.70 crore bank facilities of Aglon Industries Private Limited. This rating is now an indicative rating and is based on best available information. Rating has been downgraded on account of information risk as the issuer did not cooperate.
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| About the Company |
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Aglon Industries Private Limited (AIPL), is a Surat based company. The company was incorporated in 2015 and is jointly owned by Goenka Group promoted by Mr. Vishnu Goenka and Agarwal Group promoted by Mr. Lokpriya Agarwal. The company is engaged in manufacturing of nylon yarn. The manufacturing facility was set up in 2015, however, the production commenced in December2016.The product profile of the company comprises of variety of nylon yarn such as fully drawn yarn, mother yarn, partially oriented yarn and air- textured yarn, among others.
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| About the Group |
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Agarwal Group and Goenka Group are in wholesale yarn trading since past 3-4 decades. While Agarwal Group started its business in 1975 with establishment of Agarwal Fabtex Pvt. Ltd. (AFPL), Sansar Texturises Pvt. Ltd. was the first yarn trading company of Goenka Group established in 1994. In 2015, both these groups jointly started AIPL to produce nylon yarn,which is a backward integration for their nylon yarn trading businesses. In 2018, the groups established one moretrading companynamedAglon Impex Pvt. Ltd. (Aglon Impex), whichis majorly into nylontrading.
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| Standalone (Unsupported) Rating |
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ACUITE BB+/A4+
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| Non-cooperation by the issuer/borrower |
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Acuité has been requesting for the key informations for the rating purpose from the rated entity. However, the issuer / borrower failed to submit such information before due date. Acuité believes that information risk is a critical component in such ratings, and non - cooperation 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.
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| Limitation regarding information availability |
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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 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.
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| Rating Sensitivities |
| No information provided by the issuer / available for Acuite to comment upon. |
| Material Covenants |
| None |
| Liquidity Position |
| No information provided by the issuer / available for Acuite to comment upon. |
| Outlook |
| Not Applicable |
| Key Financials: |
| The rated entity has not shared the latest financial statement for Acuite to comment. |
| Status of non-cooperation with previous CRA |
| None |
| Any other information |
| Acuite is yet to receive the latest No Default Statement from the rated company despite repeated requests and followups. |
| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Complexity Level Of Financial Instruments: https://www.acuite.in/view-rating-criteria-55.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Trading Entitie: https://www.acuite.in/view-rating-criteria-61.htm |
| Note on Complexity Levels of the Rated Instrument |
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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
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