RATING RATIONALE
12Jan2024

Shree Bhavya Fabrics Ltd

Brickwork Ratings downgrades the long term ratings and reaffirms the short term ratings and continued the ratings in the "Issuer not cooperating" category for the Bank Loan Facilities of Rs. 40.50 Crs. of Shree Bhavya Fabrics Ltd based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(13 Oct 2022)
Present
Fund Based 34.00 34.00 Long Term BWR BB/Negative
ISSUER NOT COOPERATING*/Downgraded
BWR B + /Stable
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
Non Fund Based 6.50 6.50 Short Term BWR A4
ISSUER NOT COOPERATING*/Reaffirmed
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Grand Total 40.50 40.50 (Rupees Forty Crores and Fifty lakhs 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

BWR has downgraded the long term rating to BWR B+/Stable and reaffirmed the short term rating of BWR A4 for the bank loan facilities of Shree Bhavya Fabrics Ltd and continued to be placed under the "Issuer Not Cooperating" category based on the available information as the issuer did not cooperate.

BWR had initially assigned a rating of BWR BB/Stable/ BWR A4 for the bank loan facilities as on 16 Mar 2016. The rating was due for renew in Mar, 2017. On 28 Mar 2018, the long term ratings were downgraded at BWR BB-/Stable and the short term ratings were reaffirmed at BWR A4 and the ratings were migrated under the "Issuer Not Cooperating" category. On 15 May, 2018, the long term ratings were upgraded at BWR BB/Stable and the short term ratings were reaffirmed at BWR A4 and the ratings were removed from the "Issuer Not Cooperating" category. On 06 Jan 2020, the long term ratings were upgraded at BWR BB+/Stable and the short term ratings were reaffirmed at BWR A4. On 08 Jul, 2021, the long term ratings were reaffirmed at BWR BB+/Negative and the short term ratings were reaffirmed at BWR A4. The ratings were due for renew in Jul 2022. On 13 Oct 2022, the long term ratings were downgraded at BWR BB/Stable and the short term ratings were reaffirmed at BWR A4 and the ratings were migrated under the "Issuer Not Cooperating" category.

Going forward, BWR tried to consistently contact the issuer to provide the required information over emails but no response has been received from the client. We were unable to reach the banker through mails, the banker feedback regarding the conduct of the account is not available. Despite the best efforts of BWR to get at least the minimum required information for the review, the entity has not provided the same. In the  absence of adequate information from the firm, BWR is unable to assess the firm's financial performance and its ability to service its debt and maintain a valid rating.

The lenders/investors may note to exercise due caution while using the above rating which mentions "Issuer Not Cooperating" since the rating lack any projections or forward looking component as it is arrived at based on the best available information without any management/banker's interaction.

LIMITATIONS OF THE RATING

Information availability risk is a key factor in the assessment of credit risk as generally, noncooperation by the rated entities to provide the required information for a review of the assigned rating may also be accompanied by financial stress. Users of the credit ratings should therefore take into account the possible deterioration in the credit quality of the rated entity arising from its non-transparency and withholding of information required for a review of the rating.

ABOUT THE ENTITY
Macro Economic Indicator Sector Industry Basic Industry
Consumer Discretionary Textiles Textiles & Apparels Other Textile Products

Shree Bhavya Fabrics Limited', formerly known as ‘Anjani Dham Industries Ltd.’ and ‘Anjani Fabrics Ltd.’, is BSE listed textile company. The company was incorporated in 1988 and made a public issue in February 1994. The manufacturing facility is based in Pirana Road, Piplaj, Ahmedabad. The Company manufactures textiles, fabricated and home textiles for the international market.

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

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not rated under Issuer not cooperating category with other CRAs.

ANY OTHER INFORMATION

Rated CRISIL B+/Stable/CRISIL A4 as on 13 Apr 2023.

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2024) 2023 2022 2021
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 34.00
BWR B+/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
NA
NA
13Oct2022
BWR BBNegative
(ISSUER NOT COOPERATING*/Downgraded)
08Jul2021
BWR BB+ Negative
(Reaffirmation)
Non Fund Based ST 6.50
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
NA
NA
13Oct2022
BWR A4
(ISSUER NOT COOPERATING*/Reaffirmed)
08Jul2021
BWR A4
(Reaffirmation)
Grand Total 40.50 (Rupees Forty Crores and Fifty lakhs 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

Vaishali Khandelwal

Rating Analyst vaishali.k@brickworkratings.com

V.K.Kukreja

Associate Director - Ratings Board : +91 11 2341 2232 kukreja.vk@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Shree Bhavya Fabrics Ltd
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 Bank of Baroda Cash CreditSanctioned 18.50 _ 18.50
2 Bank of Baroda ILC/FLCSanctioned _ 6.50 6.50
3 Bank of India Cash CreditSanctioned 15.50 _ 15.50
Total 34.00 6.50 40.50
TOTAL (Rupees Forty Crores and Fifty lakhs Only)
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