RATING RATIONALE
02Apr2024

Sumeet Industries Ltd.

Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 525.39 Crs. of Sumeet Industries Ltd. based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(09 Jan 2023)
Present
Fund Based 222.39 222.39 Long Term BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Non Fund Based 303.00 303.00 Short Term BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Grand Total 525.39 525.39 (Rupees Five Hundred Twenty Five Crores and Thirty Nine 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

The rating is due for the review in January 2024. BWR took up with the issuer to provide the required information over emails and telephone calls. Despite the best efforts of BWR to get at least the minimum required information for a review, the entity has not provided the same.  The company has also been irregular with respect to the submission of the monthly No Default Statement. In the absence of adequate information from the issuer, BWR is unable to assess the issuer’s financial performance and its ability to service its debt and maintain a valid rating. 

The lenders may note to exercise due caution while using the above ratings, which mention “ISSUER NOT COOPERATING” since the ratings lack any projections of a forward looking component as it is arrived based on the best available information on the company without any management/ banker’s interaction.

In view of the non-availability of the information, non-submission of monthly 'No Default Statement' as per regulatory requirements and lack of management cooperation from the company, Brickwork Ratings has reaffirmed the long term and short term rating at "BWR D" and continued in the 'Issuer Not Cooperating' category.

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 the required information for a review of the assigned rating may also be accompanied by financial stress. Users of the credit rating should, therefore, take into account the possible deterioration in the credit quality of the rated entity arising from its non - transparency and withholding of the 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

Sumeet Industries Limited was initially incorporated as Sumeet Synthetics Private Limited in Surat,Gujarat and later was converted into a public limited company in the year 1993.The Company is promoted​ by Shri S.L. Somani and his family.It is engaged in manufacturing and exporting Polyester Yarn (POY and FDY), Polyester Chips, Texturising Yarn and Carpet Yarn. The Company has set up a plant to manufacture Polypropylene Multifilament Yarn (PPMFY) with present installed capacity of 3,900 metric tonnes per annum (MTPA); texturising and twisting unit with installed capacity of 7,200 MTPA and 2000 MTPA respectively; Polyester Spinning with installed capacity of 1,00,000 MTPA; woven fabric with installed capacity of 3.5 million meters per annum;carpet yarn with installed capacity of 12.5 metric tonne per day.The Company has also set-up waste recycling plant with capacity of 5400 tonnes per annum and Genset captive power plant of 17.10 MW capacity. As part of the backward integration plan,SIL has set up a C.P.Plant(Continuous Polymerization Plant) of 1,00,000 tonnes per annum capacity. The Company has 100% wholly owned subsidiary named “Sumeet Global Pte Limited” based in Singapore.

*As per the information available in March 2019.

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

No outstanding rating with other CRAs.

ANY OTHER INFORMATION

Not Applicable

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 222.39
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
09Jan2023
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
NA
NA
14Jul2021
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
Non Fund Based ST 303.00
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
09Jan2023
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
NA
NA
14Jul2021
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
Grand Total 525.39 (Rupees Five Hundred Twenty Five Crores and Thirty Nine 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

Vijayalakshmi R

Senior Rating Analyst Board : +91 044 24663326 vijayalakshmi.r@brickworkratings.com

RamaKrishna

Director - Ratings ramakrishna@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Sumeet Industries 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 Term LoanSanctioned 13.95 _ 13.95
2 Bank of Baroda Cash CreditSanctioned 42.45 _ 42.45
3 Bank of Baroda Cash CreditSanctioned 1.50 _ 1.50
4 Bank of Baroda External Commercial BorrowingsSanctioned 27.85 _ 27.85
5 Bank of Baroda Letter of CreditSanctioned _ 150.20 150.20
6 Bank of Baroda Letter of CreditSanctioned _ 16.60 16.60
7 Canara Bank Letter of CreditSanctioned _ 15.00 15.00
8 Canara Bank Term LoanSanctioned 2.21 _ 2.21
9 Central Bank of India Cash CreditSanctioned 1.00 _ 1.00
10 Central Bank of India Letter of CreditSanctioned _ 24.00 24.00
11 IDBI Bank Bank GuaranteeSanctioned _ 8.00 8.00
12 IDBI Bank Letter of CreditSanctioned _ 68.80 68.80
13 IDBI Bank Corporate LoanSanctioned 18.05 _ 18.05
14 IDBI Bank Cash CreditSanctioned 33.40 _ 33.40
15 KBC Bank, Deutschland A/G External Commercial BorrowingsSanctioned 47.33 _ 47.33
16 State Bank Of India (SBI) Cash CreditSanctioned 29.00 _ 29.00
17 Union Bank of India Cash CreditSanctioned 5.65 _ 5.65
18 Union Bank of India Letter of CreditSanctioned _ 20.40 20.40
Total 222.39 303.00 525.39
TOTAL (Rupees Five Hundred Twenty Five Crores and Thirty Nine lakhs Only)
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