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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 7.00 | - | ACUITE A4 | Reaffirmed | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 7.00 | - | - |
| Rating Rationale |
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Acuité has reaffirmed the short-term rating of ‘ACUITE A4’ (read as ACUITE A Four) on the Rs. 7.00 crore bank facilities of R and R Impex Private Limited (RRIPL). This rating continues to be an indicative rating and is based on best available information. |
| About the Company |
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R and R Impex Private Limited, established in 2003, is a Delhi-based company promoted by Mr. Rajender Singh Manchanda and Mr. Baljeet Singh. The company is engaged in the manufacture and export of readymade garments for women with its manufacturing facility in Delhi. The company procures raw materials from the domestic market and also imports from China. The finished products are sold in the local market in Delhi as well as exported to countries such as Canada, USA, China, Italy, etc. |
| Non-cooperation by the issuer/borrower: |
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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. |
| Limitation regarding information availability: |
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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. |
| Rating Sensitivity |
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No information provided by the issuer / available for Acuité to comment upon. |
| Material Covenants |
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Not Applicable |
| Liquidity Position |
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No information provided by the issuer / available for Acuité to comment upon. |
| Outlook |
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Not Applicable |
| Other Factors affecting Rating |
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Not Applicable |
| Particulars | Unit | FY 22 (Actual) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 5.44 | 6.33 |
| PAT | Rs. Cr. | (0.66) | (1.15) |
| PAT Margin | (%) | (12.13) | (18.20) |
| Total Debt/Tangible Net Worth | Times | 0.00 | 6.37 |
| PBDIT/Interest | Times | (0.56) | (0.23) |
| Status of non-cooperation with previous CRA |
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None |
| Any other information |
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Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups. |
| Applicable Criteria |
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• 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 |
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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. |
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