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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 19.21 | Not Applicable | Withdrawn | - |
| Bank Loan Ratings | 0.79 | - | Not Applicable | Withdrawn |
| Total Outstanding Quantum (Rs. Cr) | 0.00 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 20.00 | - | - |
| Rating Rationale |
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Acuité has withdrawn the short term and the long rating on the Rs.20.00 crore bank facilities of Amartex Industries Limited (AIL).
The rating has been withdrawn on Acuite's policy of withdrawal of ratings. The rating has been withdrawn on account of the request received from the company, and the NDC received from the banker. Since the loan availed by the company has been repaid, the rating has been withdrawn. |
| About the Company |
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Chandigarh based, Amartex Industries Limited was incorporated on 27 January 1988. It is involved in manufacturing of wearing apparel, except fur apparel. Directors of Amartex Industries Limited are Varun Grover, Suresh Singh, Shivam Grover, Arun Grover. Company is engaged in manufacturing and retail segment. Company operates weaving, dying and a processing unit for manufacturing retail garments. At present the company operates a chain of 17 retail stores in the name of Amartex Family Mart in Himachal Pradesh, Haryana, Punjab and Chandigarh. Company sells readymade garments under the brand names of “Grovanio – Italy” (Casual fashion), “Lil Saint”, “Rajwadas” (Ethnic wear), “Meera” (Women Fashion) through its retail stores and “Amartex Uniform Fabrics” through channel sales.
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| Analytical Approach |
| Not Applicable |
Key Rating Drivers
| Strengths |
| Not Applicable |
| Weaknesses |
| Not Applicable |
| Rating Sensitivities |
| Not Applicable |
| Material covenants |
| Not Applicable |
| Liquidity Position |
| Not Applicable |
| Outlook: Not Applicable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 22 (Actual) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 73.26 | 55.23 |
| PAT | Rs. Cr. | 4.45 | 4.03 |
| PAT Margin | (%) | 6.08 | 7.29 |
| Total Debt/Tangible Net Worth | Times | 0.32 | 0.39 |
| PBDIT/Interest | Times | 4.35 | 3.14 |
| Status of non-cooperation with previous CRA (if applicable) |
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Brickworks vide its press release dated 17th Nov 2022, had downgraded the company to BWR BB/Stable/A4; Issuer Not Cooperating. Infomerics vide its press release dated 27th March 2023, had downgraded the company to BB/Negative; Issuer Not Cooperating. |
| Any other information |
| None |
| Applicable Criteria |
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• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Trading Entitie: https://www.acuite.in/view-rating-criteria-61.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.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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