Rating Rationale
June 22, 2022 | Mumbai
Sangam (India) Limited
Rating Withdrawn
 
Rating Action
Rs.100 Crore Fixed DepositsFA/Positive (Withdrawn)
1 crore = 10 million
Refer to Annexure for Details of Instruments & Bank Facilities

Detailed Rationale

CRISIL Ratings has withdrawn its rating on the Fixed Deposit programme of Sangam (India) Limited (SIL; part of Sangam Textiles Group) on the request of the company and confirmation that there are no outstanding fixed deposit obligations. The withdrawal is in line with CRISIL Ratings' policy for withdrawal of ratings.

Analytical Approach

CRISIL Ratings has consolidated business and financial risk profile of SIL with Sangam Ventures Ltd (SVL) together referred to as Sangam Textiles Group. This is because SVL is the wholly owned subsidiary of SIL and SIL is expected to provide corporate guarantee for the debt facilities to be availed in SVL.

 

Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation.

About the Group

Incorporated in 1984, SIL is among the major producers of PV dyed yarn in India with 238,608 spindles. The company has 30 mmpa fabric manufacturing capacity, 72 mmpa fabric processing capacity and 48 mmpa denim fabric manufacturing capacity. Its flagship fabric brands are C9, Sangam Suitings and Sangam Denim. Incorporated in Dec 2021, SVL is a wholly owned subsidiary of SIL and is undertaking a green field project to set up a manufacturing unit.

Key Financial Indicators

Particulars

Unit

2021

2020

Revenue

Rs crore

1369

1790

Profit After Tax (PAT)

Rs crore

4

13

PAT Margin

%

0.3

0.7

Adjusted debt/adjusted networth

Times

0.94

1.24

Adjusted interest coverage

Times

2.67

2.32

Any other information: Not applicable

Note on complexity levels of the rated instrument:
CRISIL Ratings' complexity levels are assigned to various types of financial instruments. The CRISIL Ratings' complexity levels are available on www.crisil.com/complexity-levels. Users are advised to refer to the CRISIL Ratings' complexity levels for instruments that they consider for investment. Users may also call the Customer Service Helpdesk with queries on specific instruments.

Annexure - Details of Instrument(s)

ISIN

Name of instrument

Date of allotment

Coupon rate (%)

Maturity date

Issue size (Rs.Crore)

Complexity Level

Rating assigned with outlook

NA

Fixed Deposits

NA

NA

NA

100

Simple

Withdrawn

Annexure - List of Entities Consolidated

Names of Entities Consolidated

Extent of Consolidation

Rationale for Consolidation

Sangam Ventures Limited

Full

SVL is wholly owned subsidiary of SIL

Sangam (India) Limited

Full

Annexure - Rating History for last 3 Years
  Current 2022 (History) 2021  2020  2019  Start of 2019
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fixed Deposits LT 100.0 Withdrawn 04-02-22 F A/Positive 04-03-21 F A/Stable   --   -- --
All amounts are in Rs.Cr.

  

Criteria Details
Links to related criteria
The Rating Process
Understanding CRISILs Ratings and Rating Scales
CRISILs Approach to Financial Ratios
Rating criteria for manufaturing and service sector companies
CRISILs Bank Loan Ratings - process, scale and default recognition
CRISILs criteria for rating fixed deposit programmes
CRISILs Criteria for Consolidation
Understanding CRISILs Ratings and Rating Scales

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