Press Release

Press Release

November 03, 2025

EXIM KNITS PRIVATE LIMITED
Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	43.03	ACUITE BB \| Stable \| Reaffirmed	-
Bank Loan Ratings	1.97	-	ACUITE A4+ \| Reaffirmed
Total Outstanding	45.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has reaffirmed its long-term rating of ‘ACUITE BB’ (read as ACUITE double B) and short term rating of 'ACUITE A4+' (read as ACUITE A four plus) on the Rs. 45.00 Cr. of Bank loan facilities of Exim Knits Private Limited (EKPL). The outlook is 'Stable'.

Rationale for rating
The rating reflects the company’s established track record in the fabric and garments manufacturing industry, longstanding relationship with prominent clients like Aditya Birla Fashion, Page Industries, and Modenik Lifestyle which has supported for improvement in operating performance. However, the rating is constrained by below-average financial risk profile, working capital-intensive nature of operations, and vulnerability of profitability to raw material price fluctuations.

About the Company

Incorporated in 1999, Tamil Nadu based Exim Knits Private Limited is engaged in the manufacturing, trading and processing of readymade garments and other textile products. The present directors of the company are Mr. Palaniappan Kumarasamy, Mr. Palaniappan Padmanabhan and Mr. Palaniappa Mudaliar Thangavelu.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has considered the standalone business and financial risk profile of Exim Knits Private Limited (EKPL) to arrive at the rating.

Key Rating Drivers

Strengths

Established track record of operations
The company has more than three decades of experience in fabric and garment manufacturing. EKPL is currently managed by Mr. Palaniappan Padmanabhan, Mr. Palaniappan Kumaraswamy and Mr. Palaniappa Mudaliar Thangavelu who have an experience of over two decades in the business. The extensive experience of promotors has helped the company establish long-term relationships with reputed players like Aditya Birla fashion and Retail, Page Industries Ltd and Modenik Lifestyle Pvt Ltd. EKPL also exports to its products to USA, Europe, UAE, Sri Lanka and Bangladesh.

Improving operating performance
EKPL revenues improved to Rs.116.64 Cr in FY2025 (Prov.) from Rs.98.27 Cr in FY2024. The growth in topline is primarily attributable to an increase in the sales volume during the year and also support by rise in price realisations. The operating profit margin also improved to 10.87% in FY2025 (Prov.) from 9.39% in FY2024 driven by better absorption of costs. Further, the company reported a PAT margin of 2.91% in FY2025 (Prov.) against 0.78% recorded in FY2024. Further, the 5MFY2026 revenue stood at Rs.52.90 Cr.

Acuite believes that continued growth in scale of operations at stable margins shall be a key rating monitorable.

Weaknesses

Below average financial risk profile
The net worth of the company stood low at Rs.16.30 Cr as on 31 March 2025 (Prov.) (Rs.14.91 Cr. as on 31 March 2024). The marginal improvement in the net worth is primarily on account of accretion of profits into reserves. The gearing remains high at 3.25 times as on March 31, 2025 (Prov.). Further, debt coverage ratios remains moderate with interest coverage ratio and debt service coverage ratio stood at 1.92 times and 1.13 times respectively in FY2025 (Prov.).

Acuite believes that company's financial risk profile is expected to remain below average over the medium term.

Working capital intensive nature of operations
EKPLs working capital operations are intensive in nature marked by gross current asset days of 190 days in FY2025 (Prov.) (203 days in FY2024). This is primarily on account of high inventory days which stood at 130 days in FY2025 (Prov.) (137 days in FY2024) owing to stocking of multiple products. Further, the company usually receives payment from customers in 30-45 days. Therefore, the average bank limit utilization stood moderately high at ~86.21% for the past 12 months ending August 2025.

Acuite believes that working capital operations of the company will continue to remain intensive in medium term.

Susceptible to volatility in raw material prices
EKPL’s profitable margins are susceptible to fluctuations in the prices of major raw materials such as yarn and cotton. Further, cotton being an agricultural commodity by nature, its availability and price is highly dependent on agro-climatic conditions. Despite the prevalence of Minimum Support Price (MSP), the purchase price depends on the prevailing demand-supply situation, which limits bargaining power with the suppliers as well. As a result, the business is exposed to fluctuations in the commodities prices.

Rating Sensitivities

Sustainable improvement in revenue and profitability
Any increase in debt levels thereby impacting the financial risk profile
Any deterioration in working capital cycle leading to stretch in liquidity

Liquidity Position

Adequate

EKPL has an adequate liquidity position marked by cash accruals of Rs.6.00 Cr in FY2025 (Prov.) against repayment obligation of Rs.0.39 Cr during the same period. Going forward, cash accruals are expected to remain in the range of Rs.6.85 – 7.54 Crs as against repayments of Rs. 4.50-5.70 Cr over FY26 and FY27. However, the reliance on working capital limits stood moderately high at ~86.21% for the last 12 months ending August 2025. The company had low unencumbered cash and bank balance of Rs.0.17 Cr as on March 31, 2025 (Prov.). The current ratio also stood moderate at 1.05 times as on March 31, 2025 (Prov.).

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Provisional)	FY 24 (Actual)
Operating Income	Rs. Cr.	116.64	98.27
PAT	Rs. Cr.	3.39	0.76
PAT Margin	(%)	2.91	0.78
Total Debt/Tangible Net Worth	Times	3.25	3.33
PBDIT/Interest	Times	1.92	1.61

Status of non-cooperation with previous CRA (if applicable)

Not Applicable

Any other information

None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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.

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
05 Aug 2024	FBN/FBP/FBD/PSFC/FBE	Short Term	5.00	ACUITE A4+ (Assigned)
	Term Loan	Long Term	3.72	ACUITE BB \| Stable (Assigned)
	Cash Credit	Long Term	15.50	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	1.54	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	4.23	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	2.04	ACUITE BB \| Stable (Assigned)
	Covid Emergency Line.	Long Term	3.85	ACUITE BB \| Stable (Assigned)
	Covid Emergency Line.	Long Term	2.91	ACUITE BB \| Stable (Assigned)
	Cash Credit	Long Term	6.00	ACUITE BB \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	0.21	ACUITE BB \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
THE KARUR VYSYA BANK LIMITED	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	20.54	Simple	ACUITE BB \| Stable \| Reaffirmed
Indian Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	8.55	Simple	ACUITE BB \| Stable \| Reaffirmed
THE KARUR VYSYA BANK LIMITED	Not avl. / Not appl.	Covid Emergency Line.	14 Sep 2020	Not avl. / Not appl.	05 Nov 2025	1.61	Simple	ACUITE BB \| Stable \| Reaffirmed
THE KARUR VYSYA BANK LIMITED	Not avl. / Not appl.	Covid Emergency Line.	29 Sep 2021	Not avl. / Not appl.	29 Sep 2026	1.74	Simple	ACUITE BB \| Stable \| Reaffirmed
THE KARUR VYSYA BANK LIMITED	Not avl. / Not appl.	FBN/FBP/FBD/PSFC/FBE	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.97	Simple	ACUITE A4+ \| Reaffirmed
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.53	Simple	ACUITE BB \| Stable \| Reaffirmed
THE KARUR VYSYA BANK LIMITED	Not avl. / Not appl.	Term Loan	19 Feb 2018	Not avl. / Not appl.	19 Dec 2028	2.94	Simple	ACUITE BB \| Stable \| Reaffirmed
THE KARUR VYSYA BANK LIMITED	Not avl. / Not appl.	Term Loan	19 Feb 2018	Not avl. / Not appl.	10 Jan 2029	1.22	Simple	ACUITE BB \| Stable \| Reaffirmed
THE KARUR VYSYA BANK LIMITED	Not avl. / Not appl.	Term Loan	19 Feb 2018	Not avl. / Not appl.	19 Dec 2028	3.34	Simple	ACUITE BB \| Stable \| Reaffirmed
THE KARUR VYSYA BANK LIMITED	Not avl. / Not appl.	Term Loan	19 Feb 2018	Not avl. / Not appl.	07 Jun 2028	1.56	Simple	ACUITE BB \| Stable \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Sanidhya Jain
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.

Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.