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Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
Bank Loan Ratings | 9.50 | ACUITE B | Downgraded | Issuer not co-operating* | - |
Total Outstanding | 9.50 | - | - |
Rating Rationale |
Acuité has downgraded the long-term rating to 'ACUITE B' (read as ACUITE B) from ‘ACUITE B+’ (read as ACUITE B plus) on the Rs. 9.50 crore bank facilities of Sri Mahavir Crimpers (SMC). The rating continues to be flagged as “Issuer Not-Cooperating” and is downgraded on account of information risk. |
About the Company |
The Surat-based Sri Mahavir Crimpers (SMC), established in 1987, as a proprietorship firm is engaged in the manufacturing of polyester texturised yarn. The firm is promoted by Mr. Kailashchand Mundra and Mr. Mahavir Prasad Mundhra. |
About the Group |
Acuite has consolidated the business and financial risk profiles of Sri Mahavir Crimpers and Sri Gita Texturisers.The Surat-based Sri Mahavir Crimpers (SMC), established in 1987 as a proprietorship firm is engaged in the manufacturing of polyester texturised yarn. The firm is promoted by Mr. Kailashchand Mundra and Mr. Mahavir Prasad Mundhra. The Surat-based Sri Gita Texturisers (SMC), established in 2009 is a proprietorship firm, engaged in the manufacturing of polyester texturised and roto yarn. The firm is managed by Mr. Kailashchand Mundra and Mr. Mahavir Prasad Mundhra. During FY16-17, the firm reported turnover of Rs.35.45crore. |
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 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. |
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 17 (Actual) | FY 16 (Actual) |
Operating Income | Rs. Cr. | 95.28 | 98.50 |
PAT | Rs. Cr. | 1.04 | 0.90 |
PAT Margin | (%) | 1.09 | 0.92 |
Total Debt/Tangible Net Worth | Times | 1.33 | 1.64 |
PBDIT/Interest | Times | 1.75 | 1.79 |
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. |
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