Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 76.00 ACUITE C | Downgraded -
Total Outstanding 76.00 - -
 
Rating Rationale

­­Acuité has downgraded its long-term rating to ‘ACUITE C’ (read as ACUITE C) from 'Acuite B+' (read as Acuite B plus) on the Rs.76.00 Cr bank facilities of TIRUPUR TEXTILES PRIVATE LIMITED (TTPL).
 
Rationale for rating downgrade
The rating downgarde takes cognizance of delays in servicing debt obligations as understood from credit bureau information report of the company. 

About the Company
­Based in Tamil Nadu, Tirupur Textiles Private Limited was incorporated in 1956 with registered office at Anupparpalayam, Tirupur. The company is engaged in the manufacturing of Cotton Hosiery Yarn. It is managed by Mr. Kasthuriswamynaidu Chelladurai, Mr. Sivasubramaniam Vijaykrishna, Mr. Krishnaswamy Devarajan and Mr. Narayanasamy. The installed capacity is 59,712 spindle. The Company’s installed capacity is to produce 16,435 Kg of cotton per day. The company manufactures 40’s, 60’s and 70's cotton count range. Out of 59,712 spindles, 12,000 spindles are compact and remaining being combed yarn.
 
Unsupported Rating
­Not Applicable
 
Analytical Approach
­Acuité has considered the standalone business and financial risk profiles of the TTPL to arrive at this rating.
 
Key Rating Drivers

Strengths
­Promoter’s extensive industry experience and established track record of the company
TTPL is a family-owned business with existence of more than 7 decades in the cotton spinning industry. The company was established in 1956 registered office at Anupparpalayam, Tirupur. Mr.S.Vijaykrishna, Managing Director, having an industry experience of 40 years. The extensive experience of the promoters is reflected through the established relationship with its customers and suppliers for over 3 decades. With promoter's extensive industry experience and established existence, TTPL has been able to establish long-standing relationship with its suppliers and customers. The key customers of the company include names like Lux Industries Limited, Pingalaksha Agencies Private Limited, Crystal Knitters Private Limited amongst others

Weaknesses
­­Instance of delay and irregularities account conduct:
As per the delays reflected in Credit Bureau Information Report of the company. 
Rating Sensitivities
­Timely servicing of  debt obligations
 
Liquidity Position: Poor
­Liquidity position of the company is poor as there are delays in servicing of debt obligations.
 
Outlook: Not Applicable
­
 
Other Factors affecting Rating
­None
 

Particulars Unit FY 23 (Provisional) FY 22 (Actual)
Operating Income Rs. Cr. 109.96 142.03
PAT Rs. Cr. 1.59 25.46
PAT Margin (%) 1.45 17.93
Total Debt/Tangible Net Worth Times 1.24 0.86
PBDIT/Interest Times 1.57 5.68
Status of non-cooperation with previous CRA (if applicable)
­Not Applicable
 
Any other information
­None
 
Applicable Criteria
• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• 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
­­­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
 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
07 Sep 2023 Cash Credit Long Term 23.00 ACUITE B+ | Stable (Reaffirmed)
Covid Emergency Line. Long Term 8.65 ACUITE B+ | Stable (Reaffirmed)
Proposed Long Term Bank Facility Long Term 11.35 ACUITE B+ | Stable (Reaffirmed)
Term Loan Long Term 20.00 ACUITE B+ | Stable (Reaffirmed)
Term Loan Long Term 2.00 ACUITE B+ | Stable (Reaffirmed)
Term Loan Long Term 11.00 ACUITE B+ | Stable (Assigned)
05 Jan 2023 Bank Guarantee (BLR) Short Term 0.25 ACUITE A4 (Assigned)
Cash Credit Long Term 15.00 ACUITE B+ | Stable (Assigned)
Letter of Credit Short Term 10.10 ACUITE A4 (Assigned)
Proposed Long Term Bank Facility Long Term 25.80 ACUITE B+ | Stable (Assigned)
Term Loan Long Term 3.52 ACUITE B+ | Stable (Assigned)
Working Capital Term Loan Long Term 10.33 ACUITE B+ | Stable (Assigned)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)		 Complexity Level Rating
Federal Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 23.00 Simple ACUITE C | Downgraded ( from ACUITE B+ )
Federal Bank Not avl. / Not appl. Covid Emergency Line. Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 8.65 Simple ACUITE C | Downgraded ( from ACUITE B+ )
Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 11.35 Simple ACUITE C | Downgraded ( from ACUITE B+ )
State Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 20.00 Simple ACUITE C | Downgraded ( from ACUITE B+ )
HDFC Bank Ltd Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.00 Simple ACUITE C | Downgraded ( from ACUITE B+ )
HDFC Bank Ltd Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 11.00 Simple ACUITE C | Downgraded ( from ACUITE B+ )

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