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Press Release
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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
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| Bank Loan Ratings | 20.00 | ACUITE B+ | Reaffirmed | Issuer not co-operating* | - |
| Total Outstanding Quantum (Rs. Cr) | 20.00 | - | - |
Rating Rationale |
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Acuité has reaffirmed the long-term rating of ‘ACUITE B+’ (read as ACUITE B plus) on the Rs. 20.00 crore bank facilities of Shri Ram Sarup Garg Cotton Mills (SRSGCM). The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.
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About the Company |
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Shri Ram Sarup Garg Cotton Mills (SRSGCM) is a partnership firm, established in 1996, by Mr. Satish Kumar Garg, Mr. Vinod Kumar Garg, Mr. Satpal Garg and Mrs. Madhu Garg. SRSG, is a Punjab based ginning firm operating from its three ginning units located at Malout, Muktsar and Gidderbaha.
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| About the Group |
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Suryalaxmi Cottex Private Limited (SCPL) incorporated in 1997, engaged in the business of ginning and pressing of cotton. The operations of the company are managed by Garg family. SLC has setup its manufacturing facility in Abhor (Punjab) with an installed capacity of 165 cotton bales per day and 560 quintals of cotton seeds.Shri Ram Sarup Garg Cotton Mill (SRSGCM) and Suryalaxmi Cottex Private Limited (SCPL)together referred to as the Shri Ram Sarup group.
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| 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.
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: |
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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.
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| About the Rated Entity - Key Financials |
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The rated entity has not shared the latest financial statements despite repeated requests.
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| Rating Sensitivity |
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"No information provided by the issuer / available for Acuite to comment upon."
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| All Covenants |
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Not Applicable
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Liquidity Position |
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"No information provided by the issuer / available for Acuite to comment upon."
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Outlook |
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Not Applicable
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Other Factors affecting Rating |
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Not Applicable
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| Status of non-cooperation with previous CRA |
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None
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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.
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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 |
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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