RATING RATIONALE
13Oct2022

Shree Bhavya Fabrics Ltd

Brickwork Ratings downgrades LT rating/reaffirms ST rating 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
(08 Jul 2021)
Present
Fund Based 34.00 34.00 Long Term BWR BB+ /Stable to Negative
Reaffirmation
BWR BB /Negative
Downgrade/ISSUER NOT COOPERATING*
Non Fund Based 6.50 6.50 Short Term BWR A4
Reaffirmation
BWR A4
Reaffirmation/ISSUER NOT COOPERATING*
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

The rating was due for review in  July-2022. The financial information is available with BWR, as the company is listed on BSE. However, other business related information is not available due to management non cooperation. BWR took up with the issuer to provide required information in timely manner over the emails and through 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.  On account of non availability of adequate information, BWR is unable to assess the Company’s overall performance and its ability to service its debt and maintain a valid rating.  Hence on account of inadequate information and lack of management cooperation, Brickworks Ratings downgraded  the long term bank loan rating / reaffirms the short term rating, continues the Negative outlook for bank loan rating to BWR BB/(Negative) A4,  and migrating to '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 withholdings of the information required for a review of the rating.

ABOUT THE ENTITY

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.

(Information available as of September, 2021)

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

CRISIL Ratings has migrated the rating CRISIL B+ (Stable) /A4 to Issuer not cooperating Category due to Due to inadequate information on September 29, 2022.

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 34.00
BWR BB/Negative
(Downgrade/ISSUER NOT COOPERATING*)
08Jul2021
BWR BB+ Stable to Negative
(Reaffirmation)
06Jan2020
BWR BB+ Stable
(Upgrade)
NA
NA
Non Fund Based ST 6.50
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
08Jul2021
BWR A4
(Reaffirmation)
06Jan2020
BWR A4
(Reaffirmation)
NA
NA
Grand Total 40.50 (Rupees Forty Crores and Fifty lakhs Only)
Rating Advisory, as on 12Jul2022
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

Kunjal Dabhi

Rating Analyst Board : +91 79 66174046 / 47 kunjal.r@brickworkratings.com

Dileep Narayan Singh

Director dileep.s@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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