RATING RATIONALE
17Feb2023

Euro Leder Fashion Limited

Brickwork Ratings downgrades the ratings for the Bank Loan Facilities of Rs. 18.00 Crs. of Euro Leder Fashion Limited based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(30 Sep 2022)
Present
Fund Based 18.00 18.00 Short Term BWR A4+
removal from ISSUER NOT COOPERATING* category/Upgraded
BWR A4
ISSUER NOT COOPERATING* /Downgrade
(10.00) (10.00)
Grand Total 18.00 18.00 (Rupees Eighteen Crores Only)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure
*Issuer did not cooperate; based on best available information.


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

Brickwork Ratings have downgraded the company's rating to BWR A4 and migrated to the Issuer Not Cooperating category for the bank loan facilities. The ratings are constrained by weak operating performance and exposure to intense competition, low liquidity level and delay in exports. The migration to Issuer Not Cooperating category is due to Non submission of NDS for three months.

LIMITATIONS OF THE RATING

Information availability risk is a key factor in the assessment of credit risk as generally, non-cooperation by the rated entities to provide required information for a review of the assigned rating may also be accompanied by financial stress. The current rating action has been taken on the basis of the limited information on the issuer’s performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as it may not adequately reflect the credit risk profile of the society despite a downgrade.

ABOUT THE ENTITY

Euro Leder Fashion Limited, located in Chennai, was incorporated in 1992 as a private limited company and later reconstituted as a public listed company in 1994. The Company is an export-oriented unit and is engaged in the manufacturing of leather garments and finished leathers. With three manufacturing units located in Chennai, the Company has an installed capacity of manufacturing 2,00,000/- leather garments. The Company’s equity shares are listed on BSE. They are vendors for many International Reputed brands, Boutiques and Designers across Italy, Germany, USA, UK, Canada, Poland, Australia, France & Spain.

KEY FINANCIAL INDICATORS

Please refer to the following link for the previous detailed rationale that captures the Key Financials Drivers and their Description, Liquidity Position. Rating Sensitivities, Key Financial Indicators. View Previous Document

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

No

ANY OTHER INFORMATION

No

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2023) 2022 2021 2020
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based ST 18.00
BWR A4
(ISSUER NOT COOPERATING* /Downgrade)
06May2022
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
17Mar2021
BWR A4
(Reaffirmation)
14Apr2020
BWR A4
(Downgrade)
0.00
NA
30Sep2022
BWR A4+
(removal from ISSUER NOT COOPERATING* category/Upgraded)
NA
NA
NA
NA
FB SubLimit ST (10.00)
BWR A4
(ISSUER NOT COOPERATING* /Downgrade)
NA
NA
NA
NA
NA
NA
Grand Total 18.00 (Rupees Eighteen Crores Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - Simple

BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.

Hyperlink/Reference to applicable Criteria
Analytical Contacts

Anithu Joseph

Rating Analyst anithu.j@brickworkratings.com

RamaKrishna

Director-Ratings ramakrishna@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Euro Leder Fashion Limited
ANNEXURE-I
Details of Bank Facilities rated by BWR
SL.No. Name of the Bank/Lender Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 Canara Bank PC/FDB/FBESanctioned _ 18.00 18.00
Total 0.00 18.00 18.00
TOTAL (Rupees Eighteen Crores Only)
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About Brickwork Ratings

Brickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. BWR has rated over 12,000 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partner. BWR has its corporate office in Bengaluru and a country-wide presence with its offices in Ahmedabad, Chandigarh, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi along with representatives in 150+ locations.

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