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Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
Bank Loan Ratings | 6.50 | ACUITE B | Downgraded | Issuer not co-operating* | - |
Total Outstanding | 6.50 | - | - |
Rating Rationale |
Acuité has downgraded the long-term rating to 'ACUITE B' (read as ACUITE B) from ‘ACUITE B+’ (read as ACUITE B plus) on the Rs. 6.50 crore bank facilities of Alfa Textiles (AT). The rating continues to be flagged as “Issuer Not-Cooperating” and is downgraded on account of information risk. |
About the Company |
Alfa Textiles (AT) incorporated in 2003, is a Mumbai-based manufacturing firm promoted by Mr. Ratilal Shah, Mr. Bhagwanji Shah and Mr. Zaverchand Shah. The firm is engaged in the manufacturing of cotton grey cloth and fabrics used in shirting. |
About the Group |
Alfa textiles is a part of Alfa Group. Mumbai-based Alfa Group was incorporated in the year 2003 and the group comprises of Alfa Textile, Mahavir Textile, Raj Fabrics and Viva Fab. The Alfa group is owned and promoted by Shah family Brothers; Mr. Jitendra Somchand Shah, Mr. Jigar Z. Shah, Mr. Rinkal Bhagwanji Shah, Mr. Bhagwanji Somchand Shah. Alfa Textile, Mahavir Textiles and Raj Fabrics are engaged in manufacturing of various types of cotton grey cloth/fabrics which find their major end usage in shirting amongst others. Viva Fab is engaged in providing yarn dyeing services majorly to group companies and also to other entities. |
Unsupported Rating |
Not Applicable |
Non-cooperation by the issuer/borrower: |
Acuité has 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 is a critical component in such ratings, and noncooperation by the issuer along with an unwillingness to provide information could be a sign of potential deterioration in its overall credit quality. |
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 endeavored 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 Sensitivity |
"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 |
Other Factors affecting Rating |
None |
Particulars | Unit | FY 16 (Actual) | FY 15 (Actual) |
Operating Income | Rs. Cr. | 45.94 | 46.69 |
PAT | Rs. Cr. | 0.61 | 0.69 |
PAT Margin | (%) | 1.34 | 1.49 |
Total Debt/Tangible Net Worth | Times | 1.12 | 1.10 |
PBDIT/Interest | Times | 1.93 | 2.03 |
Status of non-cooperation with previous CRA |
Not Applicable |
Any other information |
None |
Applicable Criteria |
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • 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 |
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. |
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