Press Release

Press Release

April 18, 2025

SWARAJ SUITING LIMITED
Rating Downgraded, Withdrawn and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	229.40	ACUITE BB+ \| Downgraded & Withdrawn \| Issuer not co-operating*	-
Bank Loan Ratings	50.00	ACUITE BB+ \| Downgraded \| Issuer not co-operating*	-
Bank Loan Ratings	0.60	Not Applicable \| Withdrawn	-
Total Outstanding	50.00	-	-
Total Withdrawn	230.00	-	-
* The issuer did not co-operate; based on best available information.

Rating Rationale

Acuité has downgraded the long-term rating to ‘ACUITE BB+’ (read as ACUITE Double B Plus) from ‘ACUITE BBB-’ (read as ACUITE Triple B Minus) on the bank facilities of Rs. 50.00 Cr. of Swaraj Suiting Limited (SSL).
Acuité has downgraded and withdrawn the long-term rating to ‘ACUITE BB+’ (read as ACUITE Double B Plus) from ‘ACUITE BBB-’ (read as ACUITE Triple B Minus) on the bank facilities of Rs. 229.40 Cr. of Swaraj Suiting Limited (SSL). The rating has been withdrawn on account of the request received from the company, and the NOC(No Objection Certificate) received from the bankers.
Acuité has withdrawn the long -term rating on Rs. 0.60 Cr. facility without assigning any rating as it is a proposed facility of Swaraj Suiting Limited (SSL). The rating has been withdrawn on account of the request received from the company.
The rating has been withdrawn on Acuité's policy of withdrawal of ratings as applicable to the respective instrument/facility. The rating is now flagged as “Issuer Not-Cooperating” and is based on the best available information. The rating is downgraded on account of information risk.

About the Company

Rajasthan-based, Swaraj Suiting Limited (SSL) was incorporated in 2003 as a private limited company by Mr. Mohammad Sabir Khan and Mr. Nasir Khan. The company is engaged in manufacturing of denim fabric for domestic market as well as exports the same. In March 2022, the company has listed its equity share on SME platform of NSE. Further, the company also raised funds amounting to Rs. 10.68 crore through IPO and Rs.12.13 crore through right issue. SSL was primarily engaged in manufacturing grey/unfurnished denim fabric at its Bhilwara manufacturing plant with an installed capacity of 18 lac meter per annum. In FY21, the company planned for backward and forward integration and established another manufacturing plant at Neemuch (M.P.) with an installed capacity of approx. 22 million meters of denim fabric per annum for dyeing the undyed yarn and converting grey fabrics into finished goods. The present directors of the firm are Mr. Mohammed Sabir Khan, Mr. Samar Khan, Mr. Nasir Khan, Mr. Amreen Sheikh, Mr. Annie Zuberi and Mr. Ramesh Agarwal.

About the Group

Incorporated in 2003, SSL manufactures cotton and denim fabrics. Modway Suiting Private Limited (Formerly known as Cyan Textile Private Limited), incorporated in 2018, manufactures synthetic fabrics. Both these companies are promoted by Mr Mohammad Sabir and Mr Nasir Product Khan and is based out of Bhilwara, Rajasthan. SSL is coming with new facility of dyeing, processing & finishing of denim fabric and is expected to commence operations from April 2022.

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 non-cooperation 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

This rating is based on information available from sources other than the issuer / borrower (in the absence of information provided by the issuer / borrower) . Acuite endeavoured to gather information about the entity/industry from the public domain. Any rating with the suffix 'Issuer not cooperating' is assigned without any management interaction with the issuer entity or any data / information from the entity. Sometimes this non co-operation by a rated entity may be due to a result of deterioration in the credit risk profile of the entity. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit rating is based.

Rating Sensitivities

"No information provided by the issuer/borrower available for Acuite to comment upon."

Liquidity Position

"No information provided by the issuer/borrower available for Acuite to comment upon."

Outlook: Not Applicable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 24 (Actual)	FY 23 (Actual)
Operating Income	Rs. Cr.	325.24	219.69
PAT	Rs. Cr.	18.20	5.54
PAT Margin	(%)	5.59	2.52
Total Debt/Tangible Net Worth	Times	1.65	1.39
PBDIT/Interest	Times	3.45	2.80

Status of non-cooperation with previous CRA

Not Applicable

Interaction with Audit Committee anytime in the last 12 months (applicable for rated-listed / proposed to be listed debt securities being reviewed by Acuite)

Not applicable

Any other information

None

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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.

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
19 Jan 2024	Term Loan	Long Term	22.99	ACUITE BBB- \| Stable (Reaffirmed)
	Covid Emergency Line.	Long Term	1.56	ACUITE BBB- \| Stable (Reaffirmed)
	Covid Emergency Line.	Long Term	0.92	ACUITE BBB- \| Stable (Reaffirmed)
	Term Loan	Long Term	35.00	ACUITE BBB- \| Stable (Reaffirmed)
	Term Loan	Long Term	40.00	ACUITE BBB- \| Stable (Reaffirmed)
	Term Loan	Long Term	10.56	ACUITE BBB- \| Stable (Reaffirmed)
	Covid Emergency Line.	Long Term	3.12	ACUITE BBB- \| Stable (Reaffirmed)
	Cash Credit	Long Term	11.00	ACUITE BBB- \| Stable (Reaffirmed)
	Term Loan	Long Term	13.64	ACUITE BBB- \| Stable (Reaffirmed)
	Term Loan	Long Term	41.61	ACUITE BBB- \| Stable (Reaffirmed)
	Term Loan	Long Term	30.00	ACUITE BBB- \| Stable (Reaffirmed)
	Cash Credit	Long Term	20.00	ACUITE BBB- \| Stable (Reaffirmed)
	Cash Credit	Long Term	10.00	ACUITE BBB- \| Stable (Assigned)
	Cash Credit	Long Term	19.00	ACUITE BBB- \| Stable (Reaffirmed)
	Cash Credit	Long Term	10.00	ACUITE BBB- \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	0.60	ACUITE BBB- \| Stable (Reaffirmed)
	Cash Credit	Long Term	10.00	ACUITE BBB- \| Stable (Assigned)
07 Nov 2023	Term Loan	Long Term	22.99	ACUITE BBB- \| Stable (Assigned)
	Covid Emergency Line.	Long Term	0.92	ACUITE BBB- \| Stable (Assigned)
	Term Loan	Long Term	35.00	ACUITE BBB- \| Stable (Assigned)
	Term Loan	Long Term	40.00	ACUITE BBB- \| Stable (Assigned)
	Working Capital Term Loan	Long Term	11.00	ACUITE BBB- \| Stable (Assigned)
	Term Loan	Long Term	13.64	ACUITE BBB- \| Stable (Assigned)
	Term Loan	Long Term	41.61	ACUITE BBB- \| Stable (Assigned)
	Term Loan	Long Term	30.00	ACUITE BBB- \| Stable (Assigned)
	Working Capital Term Loan	Long Term	20.00	ACUITE BBB- \| Stable (Assigned)
	Working Capital Term Loan	Long Term	19.00	ACUITE BBB- \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	0.60	ACUITE BBB- \| Stable (Assigned)
	Term Loan	Long Term	10.56	ACUITE BBB- \| Stable (Assigned)
	Covid Emergency Line.	Long Term	1.56	ACUITE BBB- \| Stable (Assigned)
	Covid Emergency Line.	Long Term	3.12	ACUITE BBB- \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Indian Overseas Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating* ( from ACUITE BBB- )
Bank of Baroda	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	30.00	Simple	ACUITE BB+ \| Downgraded & Withdrawn \| Issuer not co-operating* ( from ACUITE BBB- )
Union Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	29.00	Simple	ACUITE BB+ \| Downgraded & Withdrawn \| Issuer not co-operating* ( from ACUITE BBB- )
State Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	11.00	Simple	ACUITE BB+ \| Downgraded & Withdrawn \| Issuer not co-operating* ( from ACUITE BBB- )
Bank of Baroda	Not avl. / Not appl.	Covid Emergency Line.	Not avl. / Not appl.	Not avl. / Not appl.	30 Nov 2027	1.56	Simple	ACUITE BB+ \| Downgraded & Withdrawn \| Issuer not co-operating* ( from ACUITE BBB- )
Bank of Baroda	Not avl. / Not appl.	Covid Emergency Line.	Not avl. / Not appl.	Not avl. / Not appl.	31 Jan 2024	0.92	Simple	ACUITE BB+ \| Downgraded & Withdrawn \| Issuer not co-operating* ( from ACUITE BBB- )
State Bank of India	Not avl. / Not appl.	Covid Emergency Line.	Not avl. / Not appl.	Not avl. / Not appl.	30 Nov 2027	3.12	Simple	ACUITE BB+ \| Downgraded & Withdrawn \| Issuer not co-operating* ( from ACUITE BBB- )
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.60	Simple	Not Applicable\|Withdrawn
Indian Overseas Bank	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	31 Dec 2032	40.00	Simple	ACUITE BB+ \| Downgraded \| Issuer not co-operating* ( from ACUITE BBB- )
State Bank of India	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	31 Dec 2029	10.56	Simple	ACUITE BB+ \| Downgraded & Withdrawn \| Issuer not co-operating* ( from ACUITE BBB- )
Canara Bank	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	31 Dec 2032	35.00	Simple	ACUITE BB+ \| Downgraded & Withdrawn \| Issuer not co-operating* ( from ACUITE BBB- )
Union Bank of India	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	31 Dec 2029	13.64	Simple	ACUITE BB+ \| Downgraded & Withdrawn \| Issuer not co-operating* ( from ACUITE BBB- )
Union Bank of India	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	31 Dec 2032	41.61	Simple	ACUITE BB+ \| Downgraded & Withdrawn \| Issuer not co-operating* ( from ACUITE BBB- )
Bank of Baroda	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	31 Dec 2033	30.00	Simple	ACUITE BB+ \| Downgraded & Withdrawn \| Issuer not co-operating* ( from ACUITE BBB- )
Bank of Baroda	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	31 Mar 2029	22.99	Simple	ACUITE BB+ \| Downgraded & Withdrawn \| Issuer not co-operating* ( from ACUITE BBB- )

* The issuer did not co-operate; based on best available information.

*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

Sr. No.	Company name
1	Modway Suiting Private Limited (Formerly known as Cyan Textile Private Limited).
2	Swaraj Suiting Limited

Contacts

Mohit Jain
Senior Vice President - Rating Operations

Shubham Jain
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.

Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.