Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 17.35 ACUITE D | Reaffirmed | Issuer not co-operating* -
Bank Loan Ratings 3.65 - ACUITE D | Reaffirmed | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 21.00 - -
Total Withdrawn Quantum (Rs. Cr) 0.00 - -
 
Rating Rationale
­Acuité has reaffirmed the long-term rating of ‘ACUITE D’ (read as ACUITE D) and the short-term rating of ‘ACUITE D’ (read as ACUITE D) on the Rs.21.00 crore bank facilities of Guhan Textile Mills Private Limited (GTMPL). The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.

About the Company
­Tamil Nadu based Guhan Textiles Mills Private Limited, incorporated in 1992, is managed by Mr. Karuppusamy and his family members. It is engaged in manufacturing of cotton hosiery combed and slub yarns ranging from 25 to 66s counts. GTMPL has its manufacturing unit at Vedasandur in Dindigul district (Tamil Nadu). The company has an installed capacity of 40944 spindles and production capacity of 9000 kgs per day. The company is utilising 90-95 percent of its production facilities.
 
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."
 
Material Covenants
­None
 
Liquidity Position
­"No information provided by the issuer / available for Acuite to comment upon."
 
Outlook
­Not Applicable. 
 
Other Factors affecting Rating
­Not Applicable. 
 

Particulars Unit FY 22 (Actual) FY 21 (Actual)
Operating Income Rs. Cr. 160.60 126.69
PAT Rs. Cr. 2.31 0.66
PAT Margin (%) 1.44 0.52
Total Debt/Tangible Net Worth Times 6.15 10.03
PBDIT/Interest Times 2.41 1.52
Status of non-cooperation with previous CRA
­None
 
Any other information
­Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups.
 
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
29 Oct 2021 Proposed Bank Facility Long Term 0.80 ACUITE D ( Issuer not co-operating*)
Letter of Credit Short Term 3.00 ACUITE D ( Issuer not co-operating*)
Term Loan Long Term 2.55 ACUITE D ( Issuer not co-operating*)
Cash Credit Long Term 14.00 ACUITE D ( Issuer not co-operating*)
Buyers Credit Short Term 0.65 ACUITE D ( Issuer not co-operating*)
04 Aug 2020 Buyers Credit Short Term 0.65 ACUITE D (Issuer not co-operating*)
Letter of Credit Short Term 3.00 ACUITE D (Issuer not co-operating*)
Proposed Bank Facility Long Term 0.80 ACUITE D (Issuer not co-operating*)
Term Loan Long Term 2.55 ACUITE D (Issuer not co-operating*)
Cash Credit Long Term 14.00 ACUITE D (Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
DBS Bank Ltd Not Applicable Buyers Credit Not Applicable Not Applicable Not Applicable 0.65 Simple ACUITE D | Reaffirmed | Issuer not co-operating*
DBS Bank Ltd Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 14.00 Simple ACUITE D | Reaffirmed | Issuer not co-operating*
DBS Bank Ltd Not Applicable Letter of Credit Not Applicable Not Applicable Not Applicable 3.00 Simple ACUITE D | Reaffirmed | Issuer not co-operating*
Not Applicable Not Applicable Proposed Long Term Bank Facility Not Applicable Not Applicable Not Applicable 0.80 Simple ACUITE D | Reaffirmed | Issuer not co-operating*
DBS Bank Ltd Not Applicable Term Loan Not available Not available Not available 2.55 Simple ACUITE D | Reaffirmed | Issuer not co-operating*

Contacts
Analytical Rating Desk
About Acuité Ratings & Research
Acuité Ratings & Research Limitedwww.acuite.in