Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 257.71 ACUITE BB+ | Reaffirmed & Withdrawn | Issuer not co-operating* -
Bank Loan Ratings 1.29 Not Applicable | Withdrawn -
Bank Loan Ratings 1.00 - ACUITE A4+ | Reaffirmed & Withdrawn | Issuer not co-operating*
Total Outstanding 0.00 - -
Total Withdrawn 260.00 - -
 
Rating Rationale

­Acuité has reaffirmed and withdrawn the long-term rating to ‘ACUITE BB+’ (read as ACUITE Double B plus) and the short-term rating to ‘ACUITE A4+’ (read as ACUITE A four plus) on Rs. 258.71 crore bank facilities of Rajaguru Spinning Mills Private Limited and withdrawn the proposed long-term facilites of Rs. 1.29 crore without assigning any rating of Rajaguru Spinning Mills Private Limited. The rating continues to be flagged as “Issuer Not Cooperating” and is based on the best available information.
The rating has been withdrawn as per Acuite's policy of withdrawal of ratings as applicable to the respective instrument/facility. The rating has been withdrawn on account of the request received from the company and the NOC(No Objection Certificate) received from the banker.


About the Company

­Established in 1993 as a private limited company, Rajaguru Spinning Mills Private Limited (RSMPL) is engaged in manufacturing of 100% Viscose Knitting and weaving yarn with counts ranging from 10s to 40s. RSMPL has three spinning units in Pallipalayam, Erode, Tamil-Nadu with total spinning capacity of 1,26,696 spindles and 480 air jet spinning Units. RSMPL also has windmills with total capacity of 28MW in Tamil-Nadu. The present directors of the company are Mr. Balu Kalyani, Mr. Sellappan Balu, Mr. Balu Sivakumar, Mr. Balu Vinothkumar.

 
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 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 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 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
 

Particulars Unit FY 23 (Actual) FY 22 (Actual)
Operating Income Rs. Cr. 743.86 673.77
PAT Rs. Cr. 3.13 14.49
PAT Margin (%) 0.42 2.15
Total Debt/Tangible Net Worth Times 1.93 1.90
PBDIT/Interest Times 2.87 5.20
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
15 May 2024 Cash Credit Long Term 30.00 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 11.00 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 10.00 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Letter of Credit Short Term 1.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
Proposed Long Term Bank Facility Long Term 1.29 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 58.68 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 5.90 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 5.90 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 21.26 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 15.80 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 8.46 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 6.70 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 30.00 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 1.23 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 22.80 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 29.98 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
15 Feb 2023 Cash Credit Long Term 30.00 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 11.00 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 10.00 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Letter of Credit Short Term 1.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
Proposed Long Term Bank Facility Long Term 1.29 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 58.68 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 5.90 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 5.90 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 21.26 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 15.80 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 8.46 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 6.70 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 30.00 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 1.23 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 22.80 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 29.98 ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
18 Nov 2021 Cash Credit Long Term 30.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable)
Cash Credit Long Term 10.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable)
Cash Credit Long Term 11.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable)
Letter of Credit Short Term 1.00 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A2)
Proposed Long Term Bank Facility Long Term 1.29 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable)
Term Loan Long Term 5.90 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable)
Term Loan Long Term 5.90 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable)
Term Loan Long Term 58.68 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable)
Term Loan Long Term 29.98 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable)
Term Loan Long Term 22.80 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable)
Term Loan Long Term 1.23 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable)
Term Loan Long Term 30.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable)
Term Loan Long Term 6.70 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable)
Term Loan Long Term 8.46 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable)
Term Loan Long Term 15.80 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable)
Term Loan Long Term 21.26 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 30.00 Simple ACUITE BB+ | Reaffirmed & Withdrawn | Issuer not co-operating*
Axis Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 11.00 Simple ACUITE BB+ | Reaffirmed & Withdrawn | Issuer not co-operating*
HDFC Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE BB+ | Reaffirmed & Withdrawn | Issuer not co-operating*
State Bank of India Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.00 Simple ACUITE A4+ | Reaffirmed & Withdrawn | Issuer not co-operating*
Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.29 Simple Not Applicable|Withdrawn
HDFC Bank Ltd Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 58.68 Simple ACUITE BB+ | Reaffirmed & Withdrawn | Issuer not co-operating*
HDFC Bank Ltd Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.90 Simple ACUITE BB+ | Reaffirmed & Withdrawn | Issuer not co-operating*
HDFC Bank Ltd Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.90 Simple ACUITE BB+ | Reaffirmed & Withdrawn | Issuer not co-operating*
Axis Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 21.26 Simple ACUITE BB+ | Reaffirmed & Withdrawn | Issuer not co-operating*
Axis Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.80 Simple ACUITE BB+ | Reaffirmed & Withdrawn | Issuer not co-operating*
Axis Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 8.46 Simple ACUITE BB+ | Reaffirmed & Withdrawn | Issuer not co-operating*
Axis Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 6.70 Simple ACUITE BB+ | Reaffirmed & Withdrawn | Issuer not co-operating*
Axis Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 30.00 Simple ACUITE BB+ | Reaffirmed & Withdrawn | Issuer not co-operating*
State Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.23 Simple ACUITE BB+ | Reaffirmed & Withdrawn | Issuer not co-operating*
State Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 22.80 Simple ACUITE BB+ | Reaffirmed & Withdrawn | Issuer not co-operating*
State Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 29.98 Simple ACUITE BB+ | Reaffirmed & Withdrawn | Issuer not co-operating*

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