RATING RATIONALE
10Jun2024

A -Tex Home Collection

Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs.15.88 Crs. of A -Tex Home Collection based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(15 May 2023)
Present
Fund Based 3.88 3.88 Long Term BWR C
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
BWR C
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
12.00 12.00 Short Term BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Grand Total 15.88 15.88 (Rupees Fifteen Crores and Eighty Eight 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 May 2024. BWR took up with the issuer to provide the required information over emails and through telephone calls. Despite the best efforts of BWR to get at least the minimum required information for a review, the firm has not provided the same. The firm has also been irregular with respect to the submission of the monthly No Default Statement. In the absence of adequate information from the firm, BWR is unable to assess the firm’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 and lack of cooperation from the issuer, Brickwork Ratings has reaffirmed the long term and short term rating to ‘BWR C / A4,  along with the continuation of the rating 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, noncooperation 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 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

A-Tex Home collections, based in Karur was incorporated in 1968, started by Mr Chandra Gounder. The business was taken over by his son Mr Ganeshan and Mr. Ganeshan's sons Mr. Prithvi, Mr. Pradeep Kumar, and Mr. Prem Kumar in 2002. During 2012, the firm has again undergone reconstitution and since 2012 the business is being carried out by Mr Prithvi and his wife Mrs P.Devi Akilandeswari as partners. The firm is into manufacturing Garment cover, home textiles (Table linen, pillow covers, screens, cushion covers) and chocolate pouches.

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

No outstanding rating with other CRAs.

ANY OTHER INFORMATION

NA

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 3.88
BWR C
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
15May2023
BWR C
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
12May2022
BWR B-Stable
(Downgrade/ISSUER NOT COOPERATING*)
30Apr2021
BWR BStable
(Downgrade/ISSUER NOT COOPERATING*)
Fund Based ST 12.00
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
15May2023
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
12May2022
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
30Apr2021
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
Grand Total 15.88 (Rupees Fifteen Crores and Eighty Eight 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
A -Tex Home Collection
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 Tamilnad Mercantile Bank Limited Term Loan 0.04 _ 0.04
2 Tamilnad Mercantile Bank Limited Term Loan 1.87 _ 1.87
3 Tamilnad Mercantile Bank Limited Term Loan 0.29 _ 0.29
4 Tamilnad Mercantile Bank Limited Term Loan 0.87 _ 0.87
5 Tamilnad Mercantile Bank Limited Cash Credit 0.75 _ 0.75
6 Tamilnad Mercantile Bank Limited Packing Credit in Foreign Currency (PCFC) _ 4.50 4.50
7 Tamilnad Mercantile Bank Limited Foreign Bill Negotiation under Letter of Credit (FBD/FUDBP/FBP/FBDN) _ 7.50 7.50
8 Tamilnad Mercantile Bank Limited Working Capital Demand Loan 0.01 _ 0.01
9 Tamilnad Mercantile Bank Limited Working Capital Demand Loan 0.05 _ 0.05
Total 3.88 12.00 15.88
TOTAL (Rupees Fifteen Crores and Eighty Eight lakhs Only)
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