RATING RATIONALE
18Jan2023

Gimatex Industries Pvt. Ltd.

Brickwork Ratings downgrades the ratings for the Bank Loan Facilities of Rs. 700.00 Crs. of Gimatex Industries Pvt. Ltd. based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(18 Oct 2021)
Present
Fund Based 598.00 598.00 Long Term BWR A-/Stable
Reaffirmation
BWR BBB /Stable
ISSUER NOT COOPERATING* /Downgrade
Non Fund Based 102.00 102.00 Short Term BWR A2+
Reaffirmation
BWR A3 +
ISSUER NOT COOPERATING* /Downgrade
Grand Total 700.00 700.00 (Rupees Seven Hundred 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
*Issuer did not cooperate; based on best available information.


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

Despite the best efforts of BWR to get at least the minimum required information for a review, the company has not provided the same. In the absence of adequate information from the company, BWR is unable to assess the company's current performance and its ability to service its debt and maintain a valid rating.

The rating is on account of non-cooperation by the client and is therefore downgraded to BWR BBB Stable for the long-term facility and BWR A3+ for the short-term facility and migrated to the “Issuer Not cooperating'' category for the bank loan facilities amounting to Rs 700 Crs.

Outlook: Stable

The outlook continues to remain Stable as the Company will continue to benefit from the extensive experience of its promoters in the textile industry and the improved financial performance of FY 22.

 

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. The current rating action has been taken on the basis of the limited information on the issuer’s performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as it may not adequately reflect the credit risk profile of the society despite a downgrade.

ABOUT THE ENTITY

Gimatex Industries Private Limited (GIPL or “the company”) was initially incorporated in 1994 as Vibha Synthetics Private Limited with a registered office located in Mumbai, Maharashtra by the Mohota family, originally from Rajasthan. The Mohota family has been engaged in business for the last six generations and has several decades of experience in the textile industry. However, after realignment of family ownership structure in 2005, the Wani unit (belonging to Rai Saheb Rekhchand Mohota Spinning and Weaving Mills Limited) was merged into sister concern Vibha Synthetics Limited (VSL) and the new entity was renamed Gimatex Industries Private Limited. GIPL is a composite textile unit with a presence in different verticals of the textile industry, including ginning and pressing, spinning, weaving and processing of fabrics. The company is also engaged in forward integration of its ginning unit's by-product and is thereby involved in producing and marketing cottonseed refined oil and de-oiled cake. The company has five manufacturing units of which four are located at Hinganghat, Yerala, Wani and Bela near Nagpur respectively while the fifth unit (processing unit) is located at Dhokla, Ahmedabad.

 

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

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

ANY OTHER INFORMATION

Not Applicable

 

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2023) 2022 2021 2020
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 598.00
BWR BBB/Stable
(ISSUER NOT COOPERATING* /Downgrade)
NA
NA
18Oct2021
BWR A-Stable
(Reaffirmation)
06Aug2020
BWR A-Stable
(Reaffirmation and change in Outlook)
Fund Based ST 0.00
NA
NA
NA
NA
NA
06Aug2020
BWR A2+
(Reaffirmation)
Non Fund Based ST 102.00
BWR A3+
(ISSUER NOT COOPERATING* /Downgrade)
NA
NA
18Oct2021
BWR A2+
(Reaffirmation)
06Aug2020
BWR A2+
(Reaffirmation)
Grand Total 700.00 (Rupees Seven Hundred 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

Anithu Joseph

Ratings Analyst anithu.j@brickworkratings.com

Vidya Shankar

Principal Director - Ratings Board : +91 80 4040 9940 vidyashankar@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Gimatex Industries 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 Axis Bank Ltd. Term LoanOut-standing 60.27 _ 60.27
2 Axis Bank Ltd. Cash CreditSanctioned 4.00 _ 4.00
3 Axis Bank Ltd. Cash CreditProposed _ _ 0.00
4 Axis Bank Ltd. Letter of CreditSanctioned _ 10.00 10.00
5 Axis Bank Ltd. Letter of CreditProposed _ _ 0.00
6 Axis Bank Ltd. Working Capital Demand LoanSanctioned 6.00 _ 6.00
7 Axis Bank Ltd. Emergency Credit Line Guarantee Scheme (ECLGS)Out-standing 12.20 _ 12.20
8 Bank of Baroda Emergency Credit Line Guarantee Scheme (ECLGS)Out-standing 22.85 _ 22.85
9 Bank of Baroda Letter of CreditSanctioned _ 52.00 52.00
10 Bank of Baroda Term LoanSanctioned 123.79 _ 123.79
11 Bank of Baroda Cash CreditSanctioned 61.60 _ 61.60
12 Bank of India Term LoanOut-standing 29.77 _ 29.77
13 Bank of India Cash CreditSanctioned 33.40 _ 33.40
14 Bank of India Letter of CreditSanctioned _ 7.00 7.00
15 Bank of India Bank GuaranteeSanctioned _ 2.00 2.00
16 Bank of India Emergency Credit Line Guarantee Scheme (ECLGS)Out-standing 15.73 _ 15.73
17 HDFC Bank Emergency Credit Line Guarantee Scheme (ECLGS)Out-standing 10.81 _ 10.81
18 HDFC Bank Emergency Credit Line Guarantee Scheme (ECLGS)Sanctioned 2.22 _ 2.22
19 HDFC Bank Term LoanSanctioned 13.07 _ 13.07
20 HDFC Bank Cash CreditSanctioned 30.00 _ 30.00
21 HDFC Bank Cash CreditProposed _ _ 0.00
22 HDFC Bank Term LoanOut-standing 29.43 _ 29.43
23 ICICI Bank Cash CreditSanctioned 15.00 _ 15.00
24 ICICI Bank Letter of CreditSanctioned _ 10.00 10.00
25 IDBI Bank Bank GuaranteeSanctioned _ 8.00 8.00
26 IDBI Bank Letter of CreditSanctioned _ 8.00 8.00
27 IDBI Bank Emergency Credit Line Guarantee Scheme (ECLGS)Sanctioned 7.33 _ 7.33
28 IDBI Bank Cash CreditSanctioned 20.00 _ 20.00
29 IDBI Bank Term LoanOut-standing 12.32 _ 12.32
30 IDFC First Bank Limited Cash CreditSanctioned 5.00 _ 5.00
31 IDFC First Bank Limited Letter of CreditSanctioned _ 5.00 5.00
32 IndusInd Bank Term LoanProposed 9.81 _ 9.81
33 IndusInd Bank Term LoanSanctioned 30.19 _ 30.19
34 State Bank Of India (SBI) Cash CreditSanctioned 35.00 _ 35.00
35 State Bank Of India (SBI) Emergency Credit Line Guarantee Scheme (ECLGS)Sanctioned 8.21 _ 8.21
Total 598.00 102.00 700.00
TOTAL (Rupees Seven Hundred Crores Only)
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