Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 46.00 ACUITE BB- | Reaffirmed & Withdrawn | Issuer not co-operating* -
Bank Loan Ratings 0.50 Not Applicable | Withdrawn -
Bank Loan Ratings 7.00 - ACUITE A4 | Reaffirmed & Withdrawn | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 0.00 - -
Total Withdrawn Quantum (Rs. Cr) 53.50 - -
 
Rating Rationale
­­­Acuité has reaffirmed and withdrawn the long-term rating of ‘ACUITE BB-’ (read as ACUITE double B minus) and short-term rating of ‘ACUITE A4’ (read as ACUITE A four) to the Rs.53.00 crore bank facilities and also withdrawn the proposed long term rating on the Rs 0.50 Cr proposed bank facilities of Raghu Exports India Private Limited (REIPL). The rating is being withdrawn on account of request received from the company and no objection certificate (NOC) received from the banker. 
The rating has been withdrawn on Acuite's policy of withdrawal of ratings.
The rating is now an indicative rating , and based on the best available information.
 

About the Company
­Incorporated in 2003, REIPL is a manufacturer and exporter of leather, cotton, polyester goods and accessories such as tool bags, apron, pouches, luxury leather, belts, safety shoes, etc. The company, promoted by Mr. Parveen Kumar has its manufacturing facility located at Jalandhar and has annual installed capacity of 97 lakh sq. ft. of finished leather and 14 lakh to 36 lakh pieces of other leather goods and accessories.
 
Non-cooperation by the issuer/borrower
­Acuité has been requesting for critical information from the rated entity. 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.
 
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.
 
All Covenants
­None
 
Liquidity Position
­No information provided by the issuer / available for Acuite to comment upon.
 
Outlook:Not Applicable
­
 
Other Factors affecting Rating
None
 
Key Financials:
­No information provided by the issuer / available for Acuite to comment upon.
 
Status of non-cooperation with previous CRA
­None
 
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
 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
14 Jul 2022 Term Loan Long Term 2.50 ACUITE BB- | Stable (Reaffirmed)
Letter of Credit Short Term 7.00 ACUITE A4 (Reaffirmed)
Working Capital Term Loan Long Term 7.50 ACUITE BB- | Stable (Reaffirmed)
Proposed Bank Facility Long Term 0.50 ACUITE BB- | Stable (Reaffirmed)
Cash Credit Long Term 36.00 ACUITE BB- | Stable (Reaffirmed)
16 Sep 2021 Term Loan Long Term 0.85 ACUITE BB- | Stable (Assigned)
Letter of Credit Short Term 7.00 ACUITE A4 (Assigned)
Cash Credit Long Term 36.00 ACUITE BB- | Stable (Assigned)
Working Capital Term Loan Long Term 7.50 ACUITE BB- | Stable (Assigned)
Proposed Bank Facility Long Term 2.15 ACUITE BB- | Stable (Assigned)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Central Bank of India Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 36.00 Simple ACUITE BB- | Reaffirmed & Withdrawn | Issuer not co-operating*
Central Bank of India Not Applicable Letter of Credit Not Applicable Not Applicable Not Applicable 7.00 Simple ACUITE A4 | Reaffirmed & Withdrawn | Issuer not co-operating*
Not Applicable Not Applicable Proposed Long Term Bank Facility Not Applicable Not Applicable Not Applicable 0.50 Simple Not Applicable|Withdrawn
Central Bank of India Not Applicable Term Loan Not available Not available Not available 2.50 Simple ACUITE BB- | Reaffirmed & Withdrawn | Issuer not co-operating*
Central Bank of India Not Applicable Working Capital Term Loan Not available Not available Not available 7.50 Simple ACUITE BB- | Reaffirmed & Withdrawn | Issuer not co-operating*
­

Contacts




About Acuité Ratings & Research
Acuité Ratings & Research Limitedwww.acuite.in