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Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
Bank Loan Ratings | 100.00 | ACUITE C | Downgraded | Issuer not co-operating* | - |
Total Outstanding | 100.00 | - | - |
Total Withdrawn | 0.00 | - | - |
* The issuer did not co-operate; based on best available information. |
Rating Rationale |
Acuité has downgraded long-term rating to 'ACUITE C' (read as ACUITE C) from 'ACUITE BB+' (read as ACUITE Double B plus) on the Rs. 100.00 Crore bank facilities of Gajavelli Spinning Mills Private Limited (GSMPL). The downgraded is on account of information risk. The rating is now flagged as “Issuer Not-Cooperating” on account of information risk and is based on the best available information.
Rationale for downgrade As per the reporting in Credit Beaureau Report, there are several accounts in SMA 0 category. On the basis of information avaiable in public domain, rating is being downgraded. |
About the Company |
Gajavelli Spinning Mills Private Limited (GSMPL) was incorporated on 25th April 2006 with a registered office at Guntur, Andhra Pradesh. Mr. G. Venkateswara Rao and Mr. G. Poornachandra Rao are the founder directors of the company. The company is engaged in the processing of cotton bales to cotton yarn at its manufacturing unit at Chebrolu, Guntur district, Andhra Pradesh. The company is equipped with automated yarn manufacturing machines with 35,184 spindles to manufacture yarn counts ranging from 20s to 60s both in Carded and Combed yarns. GSMPL is directed by Mr. Gajavelli Venkateswararao, Mr. Gajavelli Nageswara Rao and others.
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Unsupported Rating |
Not Applicable
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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 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.
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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 rating is based.
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Rating Sensitivities |
No information provided by the issuer / available for Acuité to comment upon.
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Liquidity Position |
No information provided by the issuer / available for Acuité to comment upon.
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Outlook: Not Applicable |
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Other Factors affecting Rating |
None |
Particulars | Unit | FY 23 (Actual) | FY 22 (Actual) |
Operating Income | Rs. Cr. | 183.03 | 642.29 |
PAT | Rs. Cr. | 5.07 | 23.75 |
PAT Margin | (%) | 2.77 | 3.70 |
Total Debt/Tangible Net Worth | Times | 0.95 | 1.09 |
PBDIT/Interest | Times | 3.20 | 6.86 |
Status of non-cooperation with previous CRA |
Not Applicable
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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 • Trading Entitie: https://www.acuite.in/view-rating-criteria-61.htm |
Note on complexity levels of the rated instrument |
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* The issuer did not co-operate; based on best available information. |
Contacts |
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