Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 54.00 ACUITE B+ | Reaffirmed | Issuer not co-operating* -
Bank Loan Ratings 10.00 - ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 64.00 - -
 
Rating Rationale
­Acuité has reaffirmed the long term rating of ‘ACUITE B+’ (read as ACUITE B plus) and the short-term rating of ‘ACUITE A4’ (read as ACUITE A four) on the Rs. 64.00 crore bank facilities of Birli Spinning Mill Private Limited (BSMPL). The rating continues to be flagged as “Issuer Not-Cooperating” and is based on best available information.

About the Company
­BSMPL was incorporated on 07 April, 2015 by Directors, Mr. Sagayaraj, Mr. Nachimuthu Kandaswami and Mr. Sadasivam Jagadesan. The company is engaged in manufacturing of cotton yarn at Kangeyam in Coimbatore (Tamil Nadu) since July 2016. The manufacturing capacity stands at 2511000 kgs of yarn per annum. The registered office of the company is in Tamil Nadu.
 
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 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.­
 
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 Acuité to comment upon.
 
All Covenants
­Not Applicable
 
Liquidity Position
­No information provided by the issuer / available for Acuité to comment upon.
 
Outlook
­Not Applicable
 
Other Factors affecting Rating
­Not Applicable
 

Particulars Unit FY 22 (Actual) FY 21 (Actual)
Operating Income Rs. Cr. 77.24 47.78
PAT Rs. Cr. 2.46 1.08
PAT Margin (%) 3.18 2.27
Total Debt/Tangible Net Worth Times 1.77 1.24
PBDIT/Interest Times 3.03 2.30
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
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.
 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
09 Aug 2022 Term Loan Long Term 42.00 ACUITE B+ ( Issuer not co-operating*)
Cash Credit Long Term 12.00 ACUITE B+ ( Issuer not co-operating*)
Bank Guarantee Short Term 7.00 ACUITE A4 ( Issuer not co-operating*)
Letter of Credit Short Term 3.00 ACUITE A4 ( Issuer not co-operating*)
11 May 2021 Cash Credit Long Term 12.00 ACUITE B+ (Issuer not co-operating*)
Term Loan Long Term 42.00 ACUITE B+ (Issuer not co-operating*)
Letter of Credit Short Term 3.00 ACUITE A4 (Issuer not co-operating*)
Bank Guarantee Short Term 7.00 ACUITE A4 (Issuer not co-operating*)
25 Feb 2020 Letter of Credit Short Term 3.00 ACUITE A4 (Issuer not co-operating*)
Term Loan Long Term 42.00 ACUITE B+ (Issuer not co-operating*)
Bank Guarantee Short Term 7.00 ACUITE A4 (Issuer not co-operating*)
Cash Credit Long Term 12.00 ACUITE B+ (Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
State Bank of India Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 7.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
State Bank of India Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 12.00 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*
State Bank of India Not Applicable Letter of Credit Not Applicable Not Applicable Not Applicable 3.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
State Bank of India Not Applicable Term Loan Not available Not available Not available 42.00 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*

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