PR

Press Release
PRATIBHA SYNTEX LIMITED
August 04, 2023
Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	366.02	ACUITE BB+ \| Downgraded \| Issuer not co-operating*	-
Bank Loan Ratings	139.79	-	ACUITE A4+ \| Downgraded \| Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr)	505.81	-	-

Rating Rationale

Acuité has downgraded its long term rating to ‘ACUITE BB+' (read as ACUITE double B plus)’ from Acuite BBB (Read as Acuite Triple B) & short term rating to ACUITE A4+ ‘(read as ACUITE A four plus)’ from Acuite A3+ (Read as Acuite A Three Plus) on the Rs. 505.81 crore bank facilities of Pratibha Syntex Limited. This rating is now an indicative rating and is based on best available information
The rating has been downgraded on account of information risk .

About the Company

Pratibha Syntex Limited (PSL) was incorporated in 1982. The company promoted by Mr. Shiv Kumar Chaudhary and Mr. Shreyaskar Chaudhary is engaged in Manufacture & Export of Yarn (Cotton, Melange & Blended), Knitted Fabric (Grey & Dyed) and Knitted Garments (Casual & Inner Wear). PSL has its registered office in Mumbai and manufacturing facilities located at Pithampur (Madhya Pradesh).

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 noncooperation 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 policie

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.

Rating Sensitivities

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

Material Covenants

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

Key Financials

Particulars	Unit	FY 22 (Actual)	FY 21 (Actual)
Operating Income	Rs. Cr.	813.46	531.72
PAT	Rs. Cr.	36.61	25.59
PAT Margin	(%)	4.50	4.81
Total Debt/Tangible Net Worth	Times	1.14	1.16
PBDIT/Interest	Times	3.63	3.05

Status of non-cooperation with previous CRA

India Ratings vide its press release dated 5 October 2021, has mentioned the rating of Pratibha Syntex Limited to ‘[IND] BB/A4+’ Issuer Not Cooperating as on 5 October 2021.

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

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
24 May 2022	Cash Credit	Long Term	3.46	ACUITE BBB \| Stable (Upgraded from ACUITE BB )
	Cash Credit	Long Term	50.00	ACUITE BBB \| Stable (Upgraded from ACUITE BB )
	Term Loan	Long Term	9.79	ACUITE BBB \| Stable (Upgraded from ACUITE BB )
	Letter of Credit	Short Term	8.50	ACUITE A3+ (Upgraded from ACUITE A4+)
	Cash Credit	Long Term	2.30	ACUITE BBB \| Stable (Upgraded from ACUITE BB )
	Term Loan	Long Term	22.94	ACUITE BBB \| Stable (Upgraded from ACUITE BB )
	Term Loan	Long Term	31.87	ACUITE BBB \| Stable (Upgraded from ACUITE BB )
	Term Loan	Long Term	30.31	ACUITE BBB \| Stable (Upgraded from ACUITE BB )
	Packing Credit	Short Term	19.64	ACUITE A3+ (Upgraded from ACUITE A4+)
	Term Loan	Long Term	9.27	ACUITE BBB (Withdrawn)
	Packing Credit	Short Term	54.71	ACUITE A3+ (Upgraded from ACUITE A4+)
	Term Loan	Long Term	18.45	ACUITE BBB \| Stable (Upgraded from ACUITE BB )
	Term Loan	Long Term	13.76	ACUITE BBB (Withdrawn)
	Proposed Bank Facility	Long Term	133.85	ACUITE BBB \| Stable (Upgraded from ACUITE BB )
	Cash Credit	Long Term	53.00	ACUITE BBB \| Stable (Upgraded from ACUITE BB )
	Cash Credit	Long Term	10.05	ACUITE BBB \| Stable (Upgraded from ACUITE BB )
	Packing Credit	Short Term	56.94	ACUITE A3+ (Upgraded from ACUITE A4+)
14 Apr 2021	Term Loan	Long Term	47.75	ACUITE BB (Downgraded and Issuer not co-operating*)
	Packing Credit	Short Term	56.94	ACUITE A4+ (Issuer not co-operating*)
	Bills Discounting	Short Term	2.50	ACUITE A4+ (Issuer not co-operating*)
	Packing Credit	Short Term	20.21	ACUITE A4+ (Issuer not co-operating*)
	Term Loan	Long Term	67.73	ACUITE BB (Downgraded and Issuer not co-operating*)
	Cash Credit	Long Term	58.00	ACUITE BB (Downgraded and Issuer not co-operating*)
	Cash Credit	Long Term	3.46	ACUITE BB (Downgraded and Issuer not co-operating*)
	Term Loan	Long Term	27.35	ACUITE BB (Downgraded and Issuer not co-operating*)
	Working Capital Demand Loan	Long Term	0.50	ACUITE BB (Downgraded and Issuer not co-operating*)
	Term Loan	Long Term	3.96	ACUITE BB (Downgraded and Issuer not co-operating*)
	Term Loan	Long Term	16.37	ACUITE BB (Downgraded and Issuer not co-operating*)
	Bills Discounting	Short Term	8.00	ACUITE A4+ (Issuer not co-operating*)
	Letter of Credit	Short Term	10.00	ACUITE A4+ (Issuer not co-operating*)
	Cash Credit	Long Term	21.50	ACUITE BB (Downgraded and Issuer not co-operating*)
	Term Loan	Long Term	9.27	ACUITE BB (Downgraded and Issuer not co-operating*)
	Term Loan	Long Term	13.76	ACUITE BB (Downgraded and Issuer not co-operating*)
	Term Loan	Long Term	40.34	ACUITE BB (Downgraded and Issuer not co-operating*)
	Cash Credit	Long Term	53.18	ACUITE BB (Downgraded and Issuer not co-operating*)
	Packing Credit	Short Term	19.64	ACUITE A4+ (Issuer not co-operating*)
	Cash Credit	Long Term	2.30	ACUITE BB (Downgraded and Issuer not co-operating*)
	Packing Credit	Short Term	13.00	ACUITE A4+ (Issuer not co-operating*)
	Cash Credit	Long Term	10.05	ACUITE BB (Downgraded and Issuer not co-operating*)
13 Jan 2020	Cash Credit	Long Term	21.50	ACUITE BB (Issuer not co-operating*)
	Term Loan	Long Term	9.27	ACUITE BB (Issuer not co-operating*)
	Term Loan	Long Term	13.76	ACUITE BB (Issuer not co-operating*)
	Term Loan	Long Term	40.34	ACUITE BB (Issuer not co-operating*)
	Cash Credit	Long Term	53.18	ACUITE BB (Issuer not co-operating*)
	Packing Credit	Short Term	19.64	ACUITE A4+ (Issuer not co-operating*)
	Cash Credit	Long Term	2.30	ACUITE BB (Issuer not co-operating*)
	Packing Credit	Short Term	13.00	ACUITE A4+ (Issuer not co-operating*)
	Cash Credit	Long Term	10.05	ACUITE BB (Issuer not co-operating*)
	Term Loan	Long Term	47.75	ACUITE BB (Issuer not co-operating*)
	Packing Credit	Short Term	56.94	ACUITE A4+ (Issuer not co-operating*)
	Bills Discounting	Short Term	2.50	ACUITE A4+ (Issuer not co-operating*)
	Packing Credit	Short Term	20.21	ACUITE A4+ (Issuer not co-operating*)
	Term Loan	Long Term	67.73	ACUITE BB (Issuer not co-operating*)
	Cash Credit	Long Term	58.00	ACUITE BB (Issuer not co-operating*)
	Cash Credit	Long Term	3.46	ACUITE BB (Issuer not co-operating*)
	Term Loan	Long Term	27.35	ACUITE BB (Issuer not co-operating*)
	Working Capital Demand Loan	Long Term	0.50	ACUITE BB (Issuer not co-operating*)
	Term Loan	Long Term	3.96	ACUITE BB (Issuer not co-operating*)
	Term Loan	Long Term	16.37	ACUITE BB (Issuer not co-operating*)
	Bills Discounting	Short Term	8.00	ACUITE A4+ (Issuer not co-operating*)
	Letter of Credit	Short Term	10.00	ACUITE A4+ (Issuer not co-operating*)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Canara Bank	Not Applicable	Cash Credit	Not Applicable	Not Applicable	Not Applicable	10.05	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating*
Central Bank of India	Not Applicable	Cash Credit	Not Applicable	Not Applicable	Not Applicable	3.46	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating*
Bank of Baroda	Not Applicable	Cash Credit	Not Applicable	Not Applicable	Not Applicable	2.30	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating*
State Bank of India	Not Applicable	Cash Credit	Not Applicable	Not Applicable	Not Applicable	53.00	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating*
Axis Bank	Not Applicable	Cash Credit	Not Applicable	Not Applicable	Not Applicable	50.00	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating*
Canara Bank	Not Applicable	Letter of Credit	Not Applicable	Not Applicable	Not Applicable	8.50	Simple	ACUITE A4+ \| Downgraded \| Issuer not co-operating*
Bank of Baroda	Not Applicable	PC/PCFC	Not Applicable	Not Applicable	Not Applicable	54.71	Simple	ACUITE A4+ \| Downgraded \| Issuer not co-operating*
Central Bank of India	Not Applicable	PC/PCFC	Not Applicable	Not Applicable	Not Applicable	19.64	Simple	ACUITE A4+ \| Downgraded \| Issuer not co-operating*
Canara Bank	Not Applicable	PC/PCFC	Not Applicable	Not Applicable	Not Applicable	56.94	Simple	ACUITE A4+ \| Downgraded \| Issuer not co-operating*
Not Applicable	Not Applicable	Proposed Long Term Bank Facility	Not Applicable	Not Applicable	Not Applicable	133.85	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating*
Axis Bank	Not Applicable	Term Loan	Not available	Not available	Not available	9.79	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating*
State Bank of India	Not Applicable	Term Loan	Not available	Not available	Not available	22.94	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating*
Central Bank of India	Not Applicable	Term Loan	Not available	Not available	Not available	30.31	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating*
Canara Bank	Not Applicable	Term Loan	Not available	Not available	Not available	31.87	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating*
Bank of Baroda	Not Applicable	Term Loan	Not available	Not available	Not available	18.45	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating*

Contacts

Analytical	Rating Desk
Aditya Gupta Vice President-Rating Operations Tel: 022-49294041 aditya.gupta@acuite.in Khushi Shah Analyst-Rating Operations Tel: 022-49294065 khushi.shah@acuite.in	Varsha Bist Senior Manager-Rating Operations Tel: 022-49294011 rating.desk@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.