Press Release

Press Release

December 28, 2024

GIRIRAJ COTEX GINNING AND PRESSING
Rating Downgraded,Reaffirmed and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	6.60	ACUITE B- \| Downgraded \| Issuer not co-operating*	-
Bank Loan Ratings	1.40	-	ACUITE A4 \| Reaffirmed \| Issuer not co-operating*
Total Outstanding	8.00	-	-
Total Withdrawn	0.00	-	-
* The issuer did not co-operate; based on best available information.

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. 8.00 crore bank facilities of Giriraj Cotex Ginning and Pressing (GCGP) on account of information risk. The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.

About the Company

Established in 2014, Giriraj Cotex Ginning and Pressing (GCGP) is a partnership firm promoted by Mr. Rajesh M Vyas and family, based out of Wardha, Maharashtra. The firm is engaged in manufacturing of cotton bales and cotton seeds. It launched commercial operations in October, 2015. The factory unit is located in proximity of cotton growing areas in Wardha and has the capacity to manufacture 240 cotton bales per day. The present partners of the firm are Mr. Vinod Kumar M Vyas, Mr. Gaurav R Vyas, Mr. Madhav R Vyas, Mr. Rajesh M Vyas and Mr. Shubham V Vyas.

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 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 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

Key Financials

Particulars	Unit	FY 16 (Provisional)	FY 15 (Actual)
Operating Income	Rs. Cr.	12.34	0.00
PAT	Rs. Cr.	0.14	0.00
PAT Margin	(%)	1.12	0.00
Total Debt/Tangible Net Worth	Times	1.80	1.45
PBDIT/Interest	Times	2.15	0.00

Status of non-cooperation with previous CRA

Not Applicable

Any other information

None

Applicable Criteria

• Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.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.

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
30 Sep 2023	Proposed Working Capital Demand Loan	Short Term	1.40	ACUITE A4 (Reaffirmed & Issuer not co-operating*)
	Proposed Cash Credit	Long Term	1.50	ACUITE B (Reaffirmed & Issuer not co-operating*)
	Cash Credit	Long Term	1.50	ACUITE B (Reaffirmed & Issuer not co-operating*)
	Term Loan	Long Term	3.60	ACUITE B (Reaffirmed & Issuer not co-operating*)
04 Jul 2022	Proposed Working Capital Demand Loan	Short Term	1.40	ACUITE A4 (Reaffirmed & Issuer not co-operating*)
	Proposed Cash Credit	Long Term	1.50	ACUITE B (Reaffirmed & Issuer not co-operating*)
	Cash Credit	Long Term	1.50	ACUITE B (Reaffirmed & Issuer not co-operating*)
	Term Loan	Long Term	3.60	ACUITE B (Reaffirmed & Issuer not co-operating*)
05 Apr 2021	Proposed Short Term Bank Facility	Short Term	1.40	ACUITE A4 (Reaffirmed & Issuer not co-operating*)
	Cash Credit	Long Term	1.50	ACUITE B (Reaffirmed & Issuer not co-operating*)
	Proposed Cash Credit	Long Term	1.50	ACUITE B (Reaffirmed & Issuer not co-operating*)
	Term Loan	Long Term	3.60	ACUITE B (Reaffirmed & Issuer not co-operating*)
* The issuer did not co-operate; based on best available information.

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Bank of Baroda	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.50	Simple	ACUITE B- \| Downgraded \| Issuer not co-operating* ( from ACUITE B )
Not Applicable	Not avl. / Not appl.	Proposed Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.50	Simple	ACUITE B- \| Downgraded \| Issuer not co-operating* ( from ACUITE B )
Not Applicable	Not avl. / Not appl.	Proposed Working Capital Demand Loan	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.40	Simple	ACUITE A4 \| Reaffirmed \| Issuer not co-operating*
Bank of Baroda	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	3.60	Simple	ACUITE B- \| Downgraded \| Issuer not co-operating* ( from ACUITE B )

* The issuer did not co-operate; based on best available information.

Contacts

Mohit Jain
Senior Vice President - Rating Operations

Sahil Sawant
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.

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