Brickwork Ratings downgrades the long-term rating and reaffirms the short-term rating for the Bank Loan Facilities of Rs. 95.00 Crs. of Swaraj Suiting Ltd. based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (10 Aug 2023) |
Present | ||
Fund Based | 94.51 | 94.51 | Long Term |
BWR BB/Stable
ISSUER NOT COOPERATING* /Downgrade |
BWR BB -
/Stable Continues to be in ISSUER NOT COOPERATING* category/Downgraded |
Non Fund Based | 0.49 | 0.49 | Short Term |
BWR A4
ISSUER NOT COOPERATING* /Downgrade |
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
Grand Total | 95.00 | 95.00 | (Rupees Ninety Five Crores Only) |
Brickwork Ratings (BWR) has last rated the bank loan facilities of "Swaraj Suiting Ltd." on 10Aug2023 by downgrading the long-term rating to "BWR BB/Stable" and short-term rating to "BWR A4" and migrated to ISSUER NOT COOPERATING*. BWR has consistently taken up with the company through emails and telephone calls to provide the requisite information for the review of the ratings. Despite the best efforts of BWR to get at least the minimum required information for a review, the company has not been submitting the monthly “No Default Statement” (NDS) as required by regulatory guidelines and remains to be non-cooperative.
In the absence of adequate information, BWR is unable to assess the company’s financial performance and its ability to service its debt and maintain a valid rating. Hence, owing to lack of management cooperation, Brickwork Ratings downgrades reaffirms the long-term rating to "BWR BB-/Stable" from "BWR BB/Stable" and reaffirms the short-term rating at "BWR A4" and continues the rating under ISSUER NOT COOPERATING* category.
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, non-cooperation by the rated entities to provide 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 possible deterioration in the credit quality of the rated entity arising from its non-transparency withholding of information required for a review of the rating.
ABOUT THE ENTITYMacro Economic Indicator | Sector | Industry | Basic Industry |
---|---|---|---|
Consumer Discretionary | Textiles | Textiles & Apparels | Garments & Apparels |
Swaraj Suiting Limited was originally incorporated as “Swaraj Suiting Private Limited” in 09Jun2003 and is promoted by Mr. Mohammad Sabir Khan. The constitution was changed as public limited on 15Mar2022. The Company was initially engaged in the manufacture of cotton/synthetic fabrics but later shifted to trading in synthetic fabrics in 2009 by selling off its Sulzer weaving looms to an associate concern. The Company re-entered into manufacturing of Cotton and Synthetic fabrics in 2011 and commenced commercial operations in January 2013. The company is presently, primarily engaged in the Manufacturing of Grey Fabric involving Cotton and Synthetic, Trading of Yarn, Grey fabric and Finished fabric and Weaving on Job work basis. The company has installed Integrate Dying of yarn used for weaving and Finishing of fabric which will be forward integration of its existing business. The directors of the company are Prakash Chandra Jain, Rahul Kumar Verma, Mohammed Sabir Khan, Samar Khan, Ramesh Agarwal, Nasir Khan, Annie Zuberi and Amreen Sheikh.
(As per last information available on the company website).
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
Not Applicable
ANY OTHER INFORMATIONNIL
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 | 94.51 |
BWR BB-/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded) |
10Aug2023 |
BWR BBStable
(ISSUER NOT COOPERATING* /Downgrade) |
18May2022 |
BWR BBB- Stable
(Reaffirmation) |
14Sep2021 |
BWR BBB- Stable
(Assignment) |
Non Fund Based | ST | 0.49 |
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
10Aug2023 |
BWR A4
(ISSUER NOT COOPERATING* /Downgrade) |
18May2022 |
BWR A3
(Reaffirmation) |
14Sep2021 |
BWR A3
(Assignment) |
Grand Total | 95.00 | (Rupees Ninety Five Crores Only) |
Analytical Contacts | |
---|---|
Sneha S Khapare Rating Analyst sneha.k@brickworkratings.com |
V Ramachandra Director - Ratings ramachandra.v@brickworkratings.com |
1-860-425-2742 | media@brickworkratings.com |
SL.No. | Name of the Bank/Lender | Type Of Facilities | Long Term(Rs.Crs.) | Short Term(Rs.Crs.) | Total(Rs.Crs.) | Complexity of the Instrument |
---|---|---|---|---|---|---|
1 | Bank of Baroda | Term LoanSanctioned | 31.93 | _ | 31.93 | Simple## |
2 | Bank of Baroda | Cash CreditSanctioned | 4.00 | _ | 4.00 | Simple## |
3 | Bank of Baroda | Bank GuaranteeSanctioned | _ | 0.49 | 0.49 | Simple## |
4 | State Bank Of India (SBI) | Term LoanSanctioned | 18.63 | _ | 18.63 | Simple## |
5 | State Bank Of India (SBI) | Cash CreditSanctioned | 11.00 | _ | 11.00 | Simple## |
6 | Un tied portion | Cash CreditProposed | 3.95 | _ | 3.95 | Simple## |
7 | Union Bank of India | Cash CreditSanctioned | 10.00 | _ | 10.00 | Simple## |
8 | Union Bank of India | Term LoanSanctioned | 15.00 | _ | 15.00 | Simple## |
Total | 94.51 | 0.49 | 95.00 | |||
TOTAL (Rupees Ninety Five Crores Only) |
##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.
Instrument | Issue Date | Amount (Rs.Crs) | Coupon Rate (%) | Maturity Date | ISIN Particulars | Complexity of the Instrument |
---|---|---|---|---|---|---|
Nil | Nil | Nil | Nil | Nil | Nil | Nil |
Name of Entity | % Ownership | Extent of consolidation | Rationale for consolidation |
---|---|---|---|
Nil | Nil | Nil | Nil |
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