Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 15.06 ACUITE B- | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 1.00 - ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding 16.06 - -
 
Rating Rationale

­Acuité has downgraded the long-term rating to ‘ACUITE B-’ (read as ACUITE B minus) from ‘ACUITE B’ (read as ACUITE  B) and reaffirmed the short-term rating of ‘ACUITE A4’ (read as ACUITE A four)  on the Rs.16.06 Cr. bank facilities of B R Elastics India Private Limited (BRPL). 

This rating is now flagged as issuer not cooperating on account of information risk and is based on best available information.

The rating has been downgraded on account of information risk.

About the Company
­B R Elastics India Private Limited (BRPL) was incorporated in 1995 as a family concern and was registered as a private limited company in 2008. It is a Tamil-Nadu based company promoted by Mr. Nachi Muthu Mudaliar Balasubramaniam, Mr. Balasubramaniam Viswanathan, Mr. Balasubramaniam Nadanasabapathy, Mr. Balasubramaniam Bharath, Mr. Krishnakumar Balasubramaniam and Mr. Balasubramaniam Rathinavelu. The promoters have an experience of over a decade in the said line of business. The company is engaged in manufacturing of knitted, woven (with and without stripes) and jacquard designs (with prints) elastics made of polyster, lycra (spandex), nylon, rubber, cotton yarn amongst others.
 
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 non-cooperation by the issuer along with an 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 has 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.
 
Rating Sensitivities
­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 23 (Actual) FY 22 (Actual)
Operating Income Rs. Cr. 39.42 42.27
PAT Rs. Cr. 0.15 0.04
PAT Margin (%) 0.38 0.09
Total Debt/Tangible Net Worth Times 1.43 2.10
PBDIT/Interest Times 1.47 1.55
Status of non-cooperation with previous CRA
­Not applicable
 
Any other information
­None
 
Applicable Criteria
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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
22 Mar 2023 Cash Credit Long Term 11.00 ACUITE B | Stable (Reaffirmed)
Proposed Short Term Bank Facility Short Term 1.00 ACUITE A4 (Reaffirmed)
Dropline Overdraft Long Term 2.30 ACUITE B | Stable (Reaffirmed)
Proposed Long Term Bank Facility Long Term 1.76 ACUITE B | Stable (Reaffirmed)
14 Jan 2022 Cash Credit Long Term 11.00 ACUITE B | Stable (Reaffirmed)
Dropline Overdraft Long Term 2.30 ACUITE B | Stable (Reaffirmed)
Proposed Long Term Bank Facility Long Term 1.76 ACUITE B | Stable (Reaffirmed)
Proposed Short Term Bank Facility Short Term 1.00 ACUITE A4 (Reaffirmed)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)		 Complexity Level Rating
ICICI Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 11.00 Simple ACUITE B- | Downgraded | Issuer not co-operating* ( from ACUITE B )
ICICI Bank Ltd Not avl. / Not appl. Dropline Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.30 Simple ACUITE B- | Downgraded | Issuer not co-operating* ( from ACUITE B )
Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.76 Simple ACUITE B- | Downgraded | Issuer not co-operating* ( from ACUITE B )
Not Applicable Not avl. / Not appl. Proposed Short Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*

Contacts




About Acuité Ratings & Research
© Acuité Ratings & Research Limited. All Rights Reserved.www.acuite.in