Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 48.40 ACUITE C | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 2.60 ACUITE D | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 142.00 - ACUITE A4 | Downgraded | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 193.00 - -
 
Rating Rationale
Acuité has downgraded the long-term rating to ‘ACUITE D’ (read as ACUITE D) from ‘ACUITE BB+’ (read as ACUITE double B plus) for the facilities of Rs.2.60 Cr. and also downgraded the facilites of Rs. 48.40 Cr. to ‘ACUITE C’ (read as ACUITE C) from ‘ACUITE BB+’ (read as ACUITE double B plus) and also downgraded the short-term rating to 'ACUITE A4' (read as ACUITE A four) from 'ACUITE A4+' (read as ACUITE A four plus) for the facilieties of Rs.142.00 Cr. of Royal Classic Mills Private Limited (RCMPL). The rating is flagged as “Issuer Not-Cooperating” and is a based on best available information.
The rating is downgraded on the basis that the team has received feedback from the banker stating that there are delays in ongoing payments from the company.­

About the Company
Incorporated in 1991, RCMPL is a Tamil Nadu-based company promoted by first-generation entrepreneurs, Mr. R Gopalakrishnan (Chairman) and Mr. Sivaram (ED). The company is engaged in manufacturing of ready-made garments such as men's shirts and trousers, men's innerwear, boy’s shirts, children's wear and fashion wear for both the export market and domestic market. The company owns the flagship brand - Classic Polo since 2001, which has become one of the most popular and dynamic mid-premium brands in India.­
 
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 an 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 ratingis based.
 
About the Rated Entity - Key Financials
­The rated entity has not shared the latest financial statements despite repeated requests.
 
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
­None
 
Status of non-cooperation with previous CRA
­None
 
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
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
21 Jun 2022 Secured Overdraft Long Term 5.00 ACUITE BB+ (Downgraded and Issuer not co-operating*)
Packing Credit Short Term 65.00 ACUITE A4+ (Downgraded and Issuer not co-operating*)
Term Loan Long Term 2.60 ACUITE BB+ (Downgraded and Issuer not co-operating*)
Proposed Bank Facility Long Term 11.39 ACUITE BB+ (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 10.00 ACUITE BB+ (Downgraded and Issuer not co-operating*)
Term Loan Long Term 11.00 ACUITE BB+ (Downgraded and Issuer not co-operating*)
Term Loan Long Term 11.00 ACUITE BB+ (Downgraded and Issuer not co-operating*)
Packing Credit Short Term 38.00 ACUITE A4+ (Downgraded and Issuer not co-operating*)
Standby Line of Credit Short Term 8.00 ACUITE A4+ (Downgraded and Issuer not co-operating*)
Letter of Credit Short Term 1.00 ACUITE A4+ (Downgraded and Issuer not co-operating*)
Packing Credit Short Term 30.00 ACUITE A4+ (Downgraded and Issuer not co-operating*)
Term Loan Long Term 0.01 ACUITE BB+ (Downgraded and Issuer not co-operating*)
11 Sep 2020 Term Loan Long Term 3.00 ACUITE BBB+ (Withdrawn)
Packing Credit Short Term 50.75 ACUITE A2 (Withdrawn)
Term Loan Long Term 2.60 ACUITE BBB+ | Stable (Reaffirmed)
Working Capital Demand Loan Long Term 25.00 ACUITE BBB+ (Withdrawn)
Term Loan Long Term 0.01 ACUITE BBB+ | Stable (Reaffirmed)
Term Loan Long Term 11.00 ACUITE BBB+ | Stable (Reaffirmed)
Term Loan Long Term 11.00 ACUITE BBB+ | Stable (Reaffirmed)
Letter of Credit Short Term 1.00 ACUITE A2 (Reaffirmed)
Proposed Bank Facility Long Term 11.39 ACUITE BBB+ | Stable (Reaffirmed)
Packing Credit Short Term 38.00 ACUITE A2 (Reaffirmed)
Secured Overdraft Long Term 5.00 ACUITE BBB+ | Stable (Reaffirmed)
Cash Credit Long Term 10.00 ACUITE BBB+ | Stable (Reaffirmed)
Packing Credit Short Term 65.00 ACUITE A2 (Reaffirmed)
Packing Credit Short Term 30.00 ACUITE A2 (Reaffirmed)
Standby Line of Credit Short Term 8.00 ACUITE A2 (Reaffirmed)
Bank Guarantee Short Term 0.58 ACUITE A2 (Withdrawn)
31 Aug 2020 Term Loan Long Term 0.01 ACUITE BBB+ | Stable (Reaffirmed)
Bank Guarantee Short Term 0.58 ACUITE A2 (Withdrawn)
Packing Credit Short Term 65.00 ACUITE A2 (Reaffirmed)
Term Loan Long Term 2.60 ACUITE BBB+ | Stable (Reaffirmed)
Term Loan Long Term 0.51 ACUITE BBB+ (Withdrawn)
Term Loan Long Term 10.89 ACUITE BBB+ | Stable (Reaffirmed)
Letter of Credit Short Term 1.00 ACUITE A2 (Reaffirmed)
Term Loan Long Term 11.26 ACUITE BBB+ | Stable (Reaffirmed)
Secured Overdraft Long Term 5.00 ACUITE BBB+ | Stable (Reaffirmed)
Standby Line of Credit Short Term 8.00 ACUITE A2 (Reaffirmed)
Packing Credit Short Term 38.00 ACUITE A2 (Reaffirmed)
Packing Credit Short Term 50.75 ACUITE A2 (Withdrawn)
Working Capital Demand Loan Long Term 25.00 ACUITE BBB+ (Withdrawn)
Cash Credit Long Term 10.00 ACUITE BBB+ | Stable (Reaffirmed)
Packing Credit Short Term 30.00 ACUITE A2 (Reaffirmed)
Proposed Bank Facility Long Term 11.40 ACUITE BBB+ | Stable (Reaffirmed)
­

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 10.00 Simple ACUITE C | Downgraded | Issuer not co-operating*
Union Bank of India Not Applicable Letter of Credit Not Applicable Not Applicable Not Applicable 1.00 Simple ACUITE A4 | Downgraded | Issuer not co-operating*
Canara Bank Not Applicable PC/PCFC Not Applicable Not Applicable Not Applicable 30.00 Simple ACUITE A4 | Downgraded | Issuer not co-operating*
Union Bank of India Not Applicable PC/PCFC Not Applicable Not Applicable Not Applicable 65.00 Simple ACUITE A4 | Downgraded | Issuer not co-operating*
South Indian Bank Not Applicable PC/PCFC Not Applicable Not Applicable Not Applicable 38.00 Simple ACUITE A4 | Downgraded | Issuer not co-operating*
Not Applicable Not Applicable Proposed Long Term Bank Facility Not Applicable Not Applicable Not Applicable 11.39 Simple ACUITE C | Downgraded | Issuer not co-operating*
Federal Bank Not Applicable Secured Overdraft Not Applicable Not Applicable Not Applicable 5.00 Simple ACUITE C | Downgraded | Issuer not co-operating*
Canara Bank Not Applicable Stand By Line of Credit Not Applicable Not Applicable Not Applicable 8.00 Simple ACUITE A4 | Downgraded | Issuer not co-operating*
Canara Bank Not Applicable Term Loan Not available Not available Not available 2.60 Simple ACUITE D | Downgraded | Issuer not co-operating*
Union Bank of India Not Applicable Term Loan Not available Not available Not available 11.00 Simple ACUITE C | Downgraded | Issuer not co-operating*
South Indian Bank Not Applicable Term Loan Not available Not available Not available 0.01 Simple ACUITE C | Downgraded | Issuer not co-operating*
Punjab National Bank Not Applicable Term Loan Not available Not available Not available 11.00 Simple ACUITE C | Downgraded | Issuer not co-operating*

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