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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 60.50 | ACUITE BB+ | Reaffirmed & Withdrawn | Issuer not co-operating* | - |
| Bank Loan Ratings | 0.20 | Not Applicable | Withdrawn | - |
| Bank Loan Ratings | 5.30 | - | ACUITE A4+ | Reaffirmed & Withdrawn | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 0.00 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 66.00 | - | - |
| Rating Rationale |
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Acuite has reaffirmed and withdrawn the long term rating of 'ACUITE BB+' (read as ACUITE double B plus) on the Rs 60.50 Cr bank facilities and short term rating of 'ACUITE A4+' (read as ACUITE A four plus) on the Rs 5.30 Cr bank facilities and withdrawn the rating for the proposed facilty on the Rs.0.20 Cr bank facilities of The Rajaratna Mills Private Limited (RMPL). The rating continues to be an indicative rating, based on best available information. The rating has been withdrawn on Acuite's policy of withdrawal of ratings. The rating has been withdrawn on account of the request received from the company, and the NOC received from the banker. |
| About the Company |
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RMPL was incorporated in 1979 with 12,000 spindles and progressively expanded to its current capacity of 39,856 spindles and 7,040 rotors. The company is closely held by the promoters and its family members, who have close to over six decades of experience in the industry. RMPL is engaged in the production of cotton yarn in the medium and finer counts range of 6’s-30’s 60’s and 90’s. It has two manufacturing facilities in Palani (Tamilnadu). RMPL had installed windmill capacity of 1.50 MW for captive use. At present, the company’s operations are actively managed by Mr J. Thulasidharan, Managing Director, and his daughter, Ms. Nikenant
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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 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.
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| 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. |
| About the Rated Entity - Key Financials |
| The rated entity has not shared the latest financial statement for Acuite to comment. |
| Rating Sensitivity |
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"No information provided by the issuer / available for Acuite to comment upon." |
| Material Covenants |
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None |
| Liquidity Position |
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"No information provided by the issuer / available for Acuite to comment upon." |
| Outlook: Not Applicable |
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| Other Factors affecting Rating |
| None |
| Status of non-cooperation with previous CRA |
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Care vide its press release dated 24.01.2023, had rated the company to CARE B+/Stable/A4; Issuer Not Cooperating. India Ratings vide its press release dated 20.03.2023 had rated the company to INDRA BB/A4+; Issuer Not Cooperating. |
| 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 • 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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