Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 7.50 ACUITE B+ | Reaffirmed | Issuer not co-operating* -
Total Outstanding 7.50 - -
 
Rating Rationale

­Acuité has reaffirmed the long-term rating of ‘ACUITE B+’ (read as ACUITE B plus) on the Rs. 7.50 crore bank facilities of Nikunj Industries (NI). The rating continues to be flagged as “Issuer Not Cooperating” based on account of information risk.


About the Company

­Nikunj Industries is an Ankleshwar-based proprietorship concern established in 1998 by Mrs. Anju Dharmendra Phatnani and operations are managed by Mr. Dharmendra Phatnani. The firm manufactures synthetic filament textured yarn in the range of 20 denier and 30 den ier used to manufacture hosiery items and readymade garments. The manufacturing facility is located at Ankleshwar (Gujarat). The firm imports around 35 percent of its total raw material requirement (synthetic yarn) from South Korea with the remaining procured from the local market.

 
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.

 
About the Rated Entity - Key Financials
The rated entity has not shared the latest financial statement for Acuite to comment.
 
Rating Sensitivity

­"No information provided by the issuer / available for Acuite to comment upon."

 
All Covenants (Applicable only for CE & SO Ratings)

­Not Applicable

 
Liquidity Position

­"No information provided by the issuer / available for Acuite to comment upon."

 
Outlook

­Not Applicable

 
Other Factors affecting Rating

­Not Applicable

 
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 Oct 2022 Term Loan Long Term 0.01 ACUITE B+ ( Issuer not co-operating*)
Term Loan Long Term 1.14 ACUITE B+ ( Issuer not co-operating*)
Term Loan Long Term 0.12 ACUITE B+ ( Issuer not co-operating*)
Cash Credit Long Term 2.00 ACUITE B+ ( Issuer not co-operating*)
Term Loan Long Term 0.96 ACUITE B+ ( Issuer not co-operating*)
Term Loan Long Term 0.01 ACUITE B+ ( Issuer not co-operating*)
Term Loan Long Term 0.30 ACUITE B+ ( Issuer not co-operating*)
Term Loan Long Term 2.34 ACUITE B+ ( Issuer not co-operating*)
Term Loan Long Term 0.62 ACUITE B+ ( Issuer not co-operating*)
13 Jul 2021 Term Loan Long Term 1.14 ACUITE B+ (Downgraded and Issuer not co-operating*)
Term Loan Long Term 2.34 ACUITE B+ (Downgraded and Issuer not co-operating*)
Term Loan Long Term 0.30 ACUITE B+ (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 2.00 ACUITE B+ (Downgraded and Issuer not co-operating*)
Term Loan Long Term 0.01 ACUITE B+ (Downgraded and Issuer not co-operating*)
Term Loan Long Term 0.01 ACUITE B+ (Downgraded and Issuer not co-operating*)
Term Loan Long Term 0.12 ACUITE B+ (Downgraded and Issuer not co-operating*)
Term Loan Long Term 0.62 ACUITE B+ (Downgraded and Issuer not co-operating*)
Term Loan Long Term 0.96 ACUITE B+ (Downgraded and Issuer not co-operating*)
15 Apr 2020 Term Loan Long Term 0.96 ACUITE BB- (Issuer not co-operating*)
Term Loan Long Term 2.34 ACUITE BB- (Issuer not co-operating*)
Term Loan Long Term 0.12 ACUITE BB- (Issuer not co-operating*)
Term Loan Long Term 0.01 ACUITE BB- (Issuer not co-operating*)
Term Loan Long Term 0.30 ACUITE BB- (Issuer not co-operating*)
Term Loan Long Term 0.01 ACUITE BB- (Issuer not co-operating*)
Cash Credit Long Term 2.00 ACUITE BB- (Issuer not co-operating*)
Term Loan Long Term 1.14 ACUITE BB- (Issuer not co-operating*)
Term Loan Long Term 0.62 ACUITE BB- (Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
Bank of Baroda Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 2.00 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*
Bank of Baroda Not Applicable Term Loan Not available Not available Not available 0.12 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*
Bank of Baroda Not Applicable Term Loan Not available Not available Not available 0.01 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*
Bank of Baroda Not Applicable Term Loan Not available Not available Not available 0.30 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*
Bank of Baroda Not Applicable Term Loan Not available Not available Not available 0.01 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*
Bank of Baroda Not Applicable Term Loan Not available Not available Not available 0.62 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*
Bank of Baroda Not Applicable Term Loan Not available Not available Not available 0.96 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*
Bank of Baroda Not Applicable Term Loan Not available Not available Not available 1.14 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*
Bank of Baroda Not Applicable Term Loan Not available Not available Not available 2.34 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*
­

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