RATING RATIONALE
08Mar2022

A K Soni Hosiery Mills Pvt. Ltd

Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 20.47 Crs. of A K Soni Hosiery Mills Pvt. Ltd based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(08 Dec 2020)
Present
Fund Based 20.47 20.47 Long Term BWR D
Reaffirmation/ISSUER NOT COOPERATING*
BWR D
Reaffirmation/ISSUER NOT COOPERATING*
Grand Total 20.47 20.47 (Rupees Twenty Crores and Forty Seven 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 of the Bank Loan Facilities of the company has been reaffirmed the long term to BWR D, Issuer Not Cooperating on account of non-receipt of any information for ascertaining the financial risk profile/performance of the company. We have therefore continued the rating under the “Issuer Not Cooperating” category. The rating was due for surveillance in December  2020. The company was being regularly followed up for the surveillance, vide email and calls dated 11.02.2022,15.02.2022, 07.03.2022 and 08.03.2022,  for obtaining the relevant and latest information for the review of the rating. The company did not cooperate in undertaking the rating process in spite of following up several times. In the absence of adequate information from the entity, BWR is unable to assess the entity’s financial performance and its ability to service its debt and maintain a valid rating. Hence, on account of inadequate information and lack of management cooperation, BWR recommends to continue the rating under Issuer Non Cooperating category and has reaffirm  the long term rating of the Bank Loan Facilities of the company to BWR D, “Issuer Not Cooperating”.

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

Ludhiana based A.K. Soni Hosiery Mills private Limited (ASH) was incorporated in 2004 by Mr. Anand Kumar Soni, Mr. Sanjeev Soni, Mr. Rajeev Soni and Mrs. Raj Rani, however Mr. Rajeev Soni, one of the Directors, resigned from the company in 2012. The company is engaged in manufacturing of woolen knitted fabric. Prior to ASH the promoters, directors were carrying out operations through a proprietorship firm "A.K. Soni Hosiery Mills' ' (Operational since 1971) engaged in similar business.ASH has two manufacturing units located at Gowshala Road, Ludhiana and Focal Point at Ludhiana-Chandigarh Road. The plants have a combined capacity of manufacturing 2675 tonnes per annum of knitted fabric.

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

NA

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2022) 2021 2020 2019
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 20.47
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
08Dec2020
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
09Oct2019
BWR D
(Reaffirmation/ISSUER NOT COOPERATING*)
Grand Total 20.47 (Rupees Twenty Crores and Forty Seven lakhs Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - NA

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

Akansha R. Mudgil

Ratings Analyst akansha.rm@brickworkratings.com

Sushil Kumar Chitkara

Director - Ratings Board : +91 22 2831 1426, +91 22 2831 1439 sushilkumar.c@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
A K Soni Hosiery Mills Pvt. 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 Union Bank of India Term Loan 1.97 _ 1.97
2 Union Bank of India OCC/ODBD 18.50 _ 18.50
Total 20.47 0.00 20.47
TOTAL (Rupees Twenty Crores and Forty Seven lakhs Only)
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About Brickwork Ratings

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