Rating Rationale
February 27, 2021 | Mumbai
Suryavanshi Spinning Mills Limited
Issuer not cooperating, based on best-available information; Ratings continues to be ‘CRISIL D/CRISIL D Issuer not cooperating'
 
Rating Action
Total Bank Loan Facilities RatedRs.40 Crore
Long Term RatingCRISIL D (ISSUER NOT COOPERATING*)
Short Term RatingCRISIL D (ISSUER NOT COOPERATING*)
1 crore = 10 million
Refer to Annexure for Details of Instruments & Bank Facilities
*Issuer did not cooperate; based on best-available information
 
Please note that the rating(s) are based on best available information with the credit rating agency: the entity whose debt is being published via this press release did not provide the requisite information needed to conduct the rating exercise and is therefore classified as 'non cooperative'.

Non cooperation by Issuer

CRISIL Ratings has been consistently following up with Suryavanshi Spinning Mills Limited (SSML) for obtaining information through letters and emails dated February 09, 2021 and February 15, 2021 among others, apart from telephonic communication. However, the issuer has remained non cooperative.

 

‘The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.’

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of SSML, which restricts CRISIL Ratings’ ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SSML is consistent with ‘Assessing Information Adequacy Risk’. Based on the last available information, the ratings on bank facilities of SSML continues to be ‘CRISIL D/CRISIL D Issuer not cooperating’.

About the Company

SSML was established in 1978 and had been engaged in the production of yarn and garments and has installed capacity of 1,11,584 spindles and 21 lakh pieces of garments annually spread at three facilities ' Bhongir (Telangana), Aliabad (Telangana) and Rajna (Madhya Pradesh). The company is listed on the Bombay Stock Exchange.

Key Financial Indicators

Particulars

Unit

2020

2019

Revenue

Rs crore

25.87

20.34

Reported profit after tax

Rs crore

-0.87

-3.4

PAT margin

%

-3.36

-16.72

Adjusted debt/Adjusted networth

Times

-2.99

-3.73

Adjusted interest coverage

Times

1.34

-1.85

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. Cr)

Complexity Levels

Rating Assigned with Outlook

NA

Bank Guarantee

NA

NA

NA

0.66

NA

CRISIL D/Issuer Not Cooperating

NA

Cash Credit

NA

NA

NA

14.33

NA

CRISIL D/Issuer Not Cooperating

NA

Corporate Loan

NA

NA

NA

10.43

NA

CRISIL D/Issuer Not Cooperating

NA

Long Term Loan

NA

NA

Not Available

9.75

NA

CRISIL D/Issuer Not Cooperating

NA

Proposed Long Term Bank Loan Facility

NA

NA

NA

4.83

NA

CRISIL D/Issuer Not Cooperating

*Issuer did not cooperate; based on best-available information

Annexure - Rating History for last 3 Years
  Current 2021 (History) 2020  2019  2018  Start of 2018
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund Based Facilities LT 39.34 CRISIL D (Issuer Not Cooperating)*   --   -- 28-11-19 CRISIL D (Issuer Not Cooperating)* 30-08-18 CRISIL D (Issuer Not Cooperating)* CRISIL D
Non-Fund Based Facilities ST 0.66 CRISIL D (Issuer Not Cooperating)*   --   -- 28-11-19 CRISIL D (Issuer Not Cooperating)* 30-08-18 CRISIL D (Issuer Not Cooperating)* CRISIL D
All amounts are in Rs.Cr.
* - Issuer did not cooperate; based on best-available information
 
Annexure - Details of various bank facilities
Current facilities Previous facilities
Facility Amount (Rs.Crore) Rating Facility Amount (Rs.Crore) Rating
Bank Guarantee 0.66 CRISIL D (Issuer Not Cooperating)* Bank Guarantee 0.66 CRISIL D (Issuer Not Cooperating)*
Cash Credit 14.33 CRISIL D (Issuer Not Cooperating)* Cash Credit 14.33 CRISIL D (Issuer Not Cooperating)*
Corporate Loan 10.43 CRISIL D (Issuer Not Cooperating)* Corporate Loan 10.43 CRISIL D (Issuer Not Cooperating)*
Long Term Loan 9.75 CRISIL D (Issuer Not Cooperating)* Long Term Loan 9.75 CRISIL D (Issuer Not Cooperating)*
Proposed Long Term Bank Loan Facility 4.83 CRISIL D (Issuer Not Cooperating)* Proposed Long Term Bank Loan Facility 4.83 CRISIL D (Issuer Not Cooperating)*
Total 40 - Total 40 -
* - Issuer did not cooperate; based on best-available information
Criteria Details
Links to related criteria
CRISILs Approach to Financial Ratios
Rating criteria for manufaturing and service sector companies
CRISILs Bank Loan Ratings - process, scale and default recognition
Assessing Information Adequacy Risk
CRISILs Approach to Recognising Default
CRISILs Bank Loan Ratings

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