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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 6.00 | ACUITE BB- | Reaffirmed | Issuer not co-operating* | - |
| Total Outstanding Quantum (Rs. Cr) | 6.00 | - | - |
| Rating Rationale |
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Acuité has reaffirmed the long-term rating of ‘ACUITE BB-’ (read as ACUITE double B minus) on the Rs. 6.00 Crore bank facilities of Vicky Spinning Mills (VSM). The rating continues to be flagged as “Issuer Not Cooperating” and is based on the best available information. |
| About the Company |
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Vicky Spinning Mills (VSM) was established in the year 1995 as a proprietorship concern in Haryana. However, on 1st April 2014, the constitution was changed into a partnership concern. The firm is promoted by Mr. Rajiv Garg and Mrs. Reena Garg. The firm is engaged in the manufacturing of cotton yarn. |
| About the Group |
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The GSM group, established in 1994 at Panipat is engaged in the manufacture of cotton yarn. The group consists of eight companies namely Garg Spinning Mills (GSM), Shiv Cotex India Private Limited (SCIPL), Gupta Spinning Mills (GSM), Gupta Spinning and Weaving Mills (GSWM), Gupta Spuntex (GS), Vicky Spinning Mills (VSM), RD Spinning Mills (RDSM), and Shiv Trading Co (STC). The firms are promoted by Mr. Rajiv Garg and Mr. Chirag Garg. |
| 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. |
| 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 |
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The rated entity has not shared the latest financial statements despite repeated requests. |
| Rating Sensitivity |
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"No information provided by the issuer / available for Acuite to comment upon." |
| All Covenants |
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Not Applicable |
| Liquidity Position |
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"No information provided by the issuer / available for Acuite to comment upon." |
| Outlook |
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Not Applicable |
| Other Factors affecting Rating |
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Not Applicable |
| Status of non-cooperation with previous CRA |
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None |
| 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 • 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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