Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 5.00 ACUITE D | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 5.00 - ACUITE D | Downgraded | Issuer not co-operating*
Total Outstanding 10.00 - -
 
Rating Rationale

­Acuité has downgraded the long-term rating to ‘ACUITE D' (read as ACUITE D) from ‘ACUITE B’ (read as ACUITE B) and also downgraded the short term rating to ‘ACUITE D' (read as ACUITE D) from ‘ACUITE A4’ (read as ACUITE A four) on the Rs. 10.00 crore bank facilities of Cliff India Corporation. The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.
The downgrade is on the basis of ongoing delays in their repayments and other publicly available information.

About the Company
­­Cliff India Corporation (CIC), established in 2014 by Mr. F.N Durai (Proprietor), commenced its commercial operations in January 2016 in manufacturing and exporting of garments (T-shirts, innerwear, sportswear). The Tirupur-based entity has an installed capacity of 5000 pieces per day and exports its products to USA-based firms, Silly Souls LLC and Signature Apparels. The firm procures yarn and fabrics from Indus Clothing Corporation, a group firm, as well as from local players.
 
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 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 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 ratingis 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. 7.53 0.00
PAT Rs. Cr. 0.16 0.00
PAT Margin (%) 2.18 0.00
Total Debt/Tangible Net Worth Times 4.47 0.00
PBDIT/Interest Times 2.70 0.00
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
11 May 2023 Term Loan Long Term 0.25 ACUITE B | Not Applicable (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 4.75 ACUITE B | Not Applicable (Reaffirmed & Issuer not co-operating*)
PC/PCFC Short Term 5.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
10 Feb 2022 PC/PCFC Short Term 5.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 0.25 ACUITE B | Not Applicable (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 4.75 ACUITE B | Not Applicable (Reaffirmed & Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)		 Complexity Level Rating
Punjab National Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 4.75 Simple ACUITE D | Downgraded | Issuer not co-operating* ( from ACUITE B )
Punjab National Bank Not avl. / Not appl. PC/PCFC Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE D | Downgraded | Issuer not co-operating* ( from ACUITE A4 )
Punjab National Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.25 Simple ACUITE D | Downgraded | Issuer not co-operating* ( from ACUITE B )

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