RATING RATIONALE
26Jul2022

Anjani Spintex Pvt. Ltd.

Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs. 83.00 Crs. of Anjani Spintex Pvt. Ltd.

Particulars
Facilities** Amount(Rs.Crs.) Tenure Rating#
Fund Based 78.00 Long Term BWR BB /Stable
Assignment
(8.00) Short Term BWR A4
Assignment
(3.00)
Non Fund Based 5.00 Short Term BWR A4
Assignment
(20.00)
(0.53)
Grand Total 83.00 (Rupees Eighty Three Crores 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
RATING ACTION / OUTLOOK

BWR has essentially relied upon the provisional financial statements of Anjani Spintex Pvt. Ltd. for FY22, Projected financial statements upto FY25, publicly available information and information/clarifications provided by the entity’s management.

The rating assignment factors the experience of the promoters in the line of textile industry, financial support by promoters and advantage of strategic location. The ratings also considers the project related risks such as timely commissioning and stabilization as per expected schedule and intense competition. Going further, timely implementation of the project set-up, infusion of the funds if required and revenue generation will remain crucial.

BWR believes the Anjani Spintex Pvt. Ltd.’s business risk profile will be maintained over the medium term. The ‘Stable’ outlook indicates a low likelihood of rating change over the medium term

KEY RATING DRIVERS

Credit Strengths:


Credit Risks:

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has considered a standalone financials of the company and applied its rating methodology as detailed in the Rating Criteria: 

RATING SENSITIVITIES

Positive:

Negative:

LIQUIDITY INDICATORS - Adequate

The company's liquidity profile is adequate at present marked by promoters financial support and timely disbursement of term loan. Term loan repayment will start from September 2023 and  the cash flows will begin after the commercial operation of the plant which is expected to start from April 2023. DSRA to be maintained for at least 3 months in form of FDRs and Cash credit limit of Rs. 11 Crs is sanctioned, which will be released at the time of commencement of operation. Going forward, stabilization of operation and positive cash generation will remain crucial for liquidity profile. 

 

ABOUT THE ENTITY

Incorporated on 6 March, 2022,  Anjani Spintex Private Limited (ASPL) proposed to set up a unit for carrying out an activity of cotton spinning at Botad, Bhavnagar, Gujarat. The installed capacity is 27360 spindles  ~23000 Kgs of yarn per day. The envisaged cost of project is Rs. 120.79 Crs and expected to commence the commercial production from April-2023.

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 21-22
(Provisional)
FY 20-21
(Audited)
Operating Revenue Rs.Crs. Not Available Not Available
EBITDA Rs.Crs. Not Available Not Available
PAT Rs.Crs. Not Available Not Available
Tangible Net Worth Rs.Crs. 31.34 Not Available
Total Debt/TNW Times 0.06 Not Available
Current Ratio Times 2.15 Not Available

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

RATING HISTORY FOR LAST 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 78.00
BWR BB/Stable
(Assignment)
NA
NA
NA
NA
NA
NA
FB SubLimit ST (8.00)
BWR A4
(Assignment)
NA
NA
NA
NA
NA
NA
(3.00)
BWR A4
(Assignment)
NA
NA
NA
NA
NA
NA
Non Fund Based ST 5.00
BWR A4
(Assignment)
NA
NA
NA
NA
NA
NA
NFB SubLimit ST (20.00)
BWR A4
(Assignment)
NA
NA
NA
NA
NA
NA
(0.53)
BWR A4
(Assignment)
NA
NA
NA
NA
NA
NA
Grand Total 83.00 (Rupees Eighty Three Crores 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

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
Anjani Spintex 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 Indian Bank Term LoanSanctioned 31.00 _ 31.00
2 Indian Bank Cash CreditSanctioned 3.00 _ 3.00
Sub-Limit (EPC/PCFC/EBR/FBD) Sanctioned (3.00)
3 State Bank Of India (SBI) Bank GuaranteeSanctioned _ 5.00 5.00
4 State Bank Of India (SBI) Cash CreditSanctioned 8.00 _ 8.00
5 State Bank Of India (SBI) Term LoanSanctioned 36.00 _ 36.00
Sub-Limit (Capex LC) Sanctioned (20.00)
Sub-Limit (Credit Exposure Limit) Sanctioned (0.53)
Sub-Limit (EPC/CFC/EBR/FBD) Sanctioned (8.00)
Total 78.00 5.00 83.00
TOTAL (Rupees Eighty Three Crores Only)
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