Super Gold Suitings Pvt. Ltd

Brickwork Ratings reaffirm the long term rating with change in Outlook from Stable to Negative and reaffirm short term ratings for the Bank Loan Facilities of Rs. 93.61 Crs. of Super Gold Suitings Pvt. Ltd

Particulars

Facilities**	Amount (Rs.Crs.)		Tenure	Rating#
	Previous	Present		Previous (23 Jan 2025)	Present
Fund Based	68.69	93.61	Long Term	BWR BBB/Stable Upgrade and Removed from the INC category	BWR BBB /Stable to Negative Reaffirmation
Non Fund Based	(40.00)	(70.00)	Short Term	BWR A3+ Upgrade and Removed from the INC category	BWR A3 + Reaffirmation
	(15.00)	(20.00)
	(7.50)	(7.50)
Grand Total	68.69	93.61	(Rupees Ninety Three Crores and Sixty One 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
*** Cash Credit can be disbursed in the form of WCDL (sub-limit under CC) up to Rs 40 Cr, within the overall sanctioned CC limit.

RATING ACTION / OUTLOOK

Brickwork Ratings has reaffirmed the long-term ratings at BWR BBB and changed the outlook from Stable to Negative, while reaffirming the short-term rating at BWR A3+ for the bank loan facilities of Rs 93.61 Crores of Super Gold Suitings Pvt. Ltd (SGSPL).  

Brickwork Ratings (BWR) has reaffirmed the ratings of Super Gold Suitings Pvt. Ltd. (the company), considering factors such as Extensive experience of the promoters with an integrated nature of operations, Comfortable Financial Risk Profile, Established and Diversified Customer Base, and Debt Protection Metrics.. The ratings are, however, constrained by the Exposure to risks related to implementation of the ongoing project, Susceptibility to Raw Material Price Volatility and Intense Competition, Vulnerability of profitability margins to adverse fluctuations in key raw material prices. 

For assigning the ratings, BWR has relied upon the last three year audited financials till FY25, Projected financials for FY26 and FY27, and publicly available information and clarification provided by the management 

Rating Outlook: Negative

The rating outlook has been revised from Stable to Negative, reflecting profitability below the projected levels and a decline in operating margin and net margin financial performance during FY25.

KEY RATING DRIVERS

Credit Strengths:

• Extensive experience of the promoters with an integrated nature of operations :

  The company is promoted by Mr. Shyam Sunder Chandak (Chairman) and Mr. Manish Chandak (Director), both of whom possess significant industry experience. Mr. Shyam Sunder Chandak began his career in fabric trading and later, in 2001, established Super Gold Suitings Pvt. Ltd. Over the years, he has developed strong domain knowledge and industry relationships, which have supported the company’s steady growth. The promoters are supported by a qualified and experienced management team that oversees the day-to-day operations efficiently. The company benefits from its integrated operations, covering the entire value chain from dyeing and weaving to finishing. This integrated structure provides better control over quality, production timelines, and costs. It also reduces dependency on third parties, thereby supporting operational efficiency and margin stability.

• Comfortable Financial Risk Profile :

  Net worth stood at Rs. 106 crore as on March 31, 2025, supported by steady accretion to reserves. The total debt-to-net worth ratio remained low at 0.33 times as on March 31, 2025, owing to minimal reliance on external borrowings to meet working capital requirements. Debt protection metrics remained healthy, supported by moderate operating profitability and low dependence on external debt. The financial risk profile is expected to remain moderate over the medium term, despite the proposed debt-funded capex in FY2026 towards expansion of spinning, dyeing, and solar capacity. 

• Established and Diversified Customer Base :

  Super Gold Suitings has a well-established and diversified clientele, including both domestic and export customers. This mitigates customer concentration risk and provides revenue stability.

• Debt Protection Metrics :

  DSCR and ISCR of the company stand at 2.27 times and 3.76 times respectively in FY25(Audited) indicating company’s adequacy to meet its debt obligations 

Credit Risks:

• Exposure to risks related to implementation of the ongoing project :

  The company is undertaking a capacity expansion in spinning, dyeing, and solar power. For this purpose, it has been sanctioned term debt of Rs. 61.13 crore, The project is currently under implementation and is expected is expected to commence operations in FY2027. Timely commencement, execution without any cost overruns,  and risks associated with stabilisation of the expanded capacities. However, these risks are partly mitigated by the promoters’ experience in the textile industry and their familiarity with the operational processes. Timely completion of the project and successful stabilisation of operations remain key rating sensitivity factors.

• Susceptibility to Raw Material Price Volatility and Intense Competition :

  The company profitability is vulnerable to fluctuations in cotton and yarn prices, but the company mitigates this risk mainly through its expertise and high-value products. However, it faces intense competition in a fragmented market with many organised and unorganised players, and its ability to innovate, adapt, and execute effective marketing strategies will be crucial to maintaining its competitive edge.

• Vulnerability of profitability margins to adverse fluctuations in key raw material prices :

  The margins of the company are largely affected by the raw material price fluctuation which in turn affects the sales realisations. Also, any adverse movement in the price of key raw materials like cotton yarn could have an adverse impact on the company’s margins, as the company may not be able to pass on the price hike to its customers owing to the competitive nature of the industry.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, Brickwork Ratings has adopted a standalone approach and applied its rating methodology as detailed in the Rating criteria.

RATING SENSITIVITIES

Upward: 

• Timely stabilization of Capex leading to consistent revenue growth and profitability on a sustained basis, with operating margin exceeding 9.90%. 
• Improvement in the capital structure on a sustained basis.

Downward: 

• Deterioration in the scale of operations and leading to any weakening of profitability on sustain basis, with operating margin falling below 5.20%.
• A rising debt burden, with Total Debt/TNW exceeding 1.75x, DSCR below 1.20x indicating a weakening financial risk profile.

LIQUIDITY INDICATORS - Adequate

Liquidity remains adequate, supported by healthy cash accruals and sufficient unutilized bank lines. The company’s average bank limit utilization remained low at around 12% during the 12 months ended February 2026, providing significant headroom to manage working capital requirements. The company is expected to generate annual cash accruals of Rs. 17.74 crore in FY25 and Rs. 28.07 crore in FY26, which are adequate to meet its estimated annual debt obligations of Rs. 4.75 crore in FY25 and Rs. 13.93 crore in FY26. However, cash balances remain modest at Rs. 0.03 crore. its capex planed capital expenditure is modular in nature and is expected to be funded through additional debt of Rs. 61.13 crore, for which sufficient financial flexibility is available. The current ratio remained healthy at 2.46x as of March 31, 2025, further supporting the company’s liquidity position. 

ABOUT THE ENTITY

Super Gold Suiting Private Limited was incorporated on 24.07.2001 and was into trading of different types of fabric like shirting, suiting etc. Later on after 10 years of successfully being settled in the textile world, Later on, the company introduced a Weaving Unit and a Yarn Texturing Unit. SGSPL is the 6th company which has come up with a denim plant in Rajasthan and the 3rd company to set up a textured yarn plant in Rajasthan (India). The Company has three Lines of Manufacturing and an Installed capacity of 363.00 Lakh Meter Fabric PA. The registered office and manufacturing facility is located in Bhilwara, Rajasthan. The company is led by Mr. Shyam Sunder Chandak, who is supported by Mr. Manish Chandak, Mrs. Vijay Laxmi Chandak, and Mrs. Shital Chandak.

ESG Profile

The company demonstrates an evolving ESG profile supported by satisfactory compliance with environmental and labour regulations, and an established operating track record. 

Environmental: Environmental risk is moderate given the water-intensive and energy-intensive nature of textile operations, detailed disclosures on water consumption, renewable energy share and emissions are not available. Overall, environmental practices appear adequate, but disclosure depth remains evolving. 

Social: The company is compliant with statutory labour norms and maintains standard worker safety practices, with no major adverse incidents reported. CSR activities including hunger and poverty alleviation, tree plantation, healthcare support, education and workforce diversity and formal human capital disclosures are limited, though basic training and safety measures are in place. The social risk profile is assessed as adequate for the current scale. 

Governance: Governance is supported by a Board-level CSR Committee (minimum three directors) overseeing CSR strategy and compliance and audit filings under Indian corporate regulations, though detailed disclosures on board independence, committees, and formal risk-management frameworks are limited. 

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)	FY 25 - 26 (Unaudited - Midterm-H1)
Operating Revenue	Rs.Crs.	287.39	356.89	166.86
EBITDA	Rs.Crs.	26.08	18.03	7.19
PAT	Rs.Crs.	9.58	9.88	5.71
Tangible Net Worth	Rs.Crs.	96.18	106.53	112.24
Total Debt / Tangible Net Worth	Times	0.89	0.33	Not Available
Current Ratio	Times	1.61	2.46	Not Available

KEY COVENANTS OF THE FACILITY RATED

The terms of sanction include standard covenants normally stipulated for Bank loan facilities.

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 (2026)			2025		2024		2023
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	93.61	BWR BBB/Stable to Negative (Reaffirmation)	23Jan2025	BWR BBBStable (Upgrade and Removed from the INC category)	11Apr2024	BWR BB Stable (Continues to be in ISSUER NOT COOPERATING* category/Downgraded)	24Jan2023	BWR BB+ Stable (Downgrade/ISSUER NOT COOPERATING*)
NFB SubLimit	ST	(70.00)	BWR A3+ (Reaffirmation)	23Jan2025	BWR A3+ (Upgrade and Removed from the INC category)	11Apr2024	BWR A4 (Continues to be in ISSUER NOT COOPERATING* category/Downgraded)	24Jan2023	BWR A4+ (Downgrade/ISSUER NOT COOPERATING*)
NFB SubLimit	ST	(20.00)	BWR A3+ (Reaffirmation)	NA	NA	NA	NA	NA	NA
NFB SubLimit	ST	(7.50)	BWR A3+ (Reaffirmation)	NA	NA	NA	NA	NA	NA
Grand Total		93.61	(Rupees Ninety Three Crores and Sixty One lakhs Only)

*** Cash Credit can be disbursed in the form of WCDL (sub-limit under CC) up to Rs 40 Cr, within the overall sanctioned CC limit. Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Short Term Debt
• Manufacturing Company

Analytical Contacts
Md Saif Ali Khan Rating Analyst saifali.k@brickworkratings.com	Ravi Rashmi Dhar Director - Ratings ravi.d@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com	Customer Support | CustSupport@brickwrokratings.com

SL.No.	Name of the Bank/Lender	Type Of Facilities	Long Term(Rs.Crs.)	Short Term(Rs.Crs.)	Total(Rs.Crs.)	Complexity of the Instrument
1	HDFC Bank	Term Loan - Out-standing	4.79	_	4.79	Simple##
2	HDFC Bank	Term Loan - Out-standing	18.82	_	18.82	Simple##
3	HDFC Bank	Cash Credit - Sanctioned	70.00	_	70.00	Simple##
	Sub-Limit (Bank Guarantee (Sublimit of CC)) - Sanctioned		(7.50)
	Sub-Limit (Cash Credit EPC/PSC/) - Sanctioned		(70.00)
	Sub-Limit (Letter of Credit (Sublimit of CC)) - Sanctioned		(20.00)
Total			93.61	0.00	93.61
TOTAL (Rupees Ninety Three Crores and Sixty One lakhs Only)

* Cash Credit can be disbursed in the form of WCDL (sub-limit under CC) up to Rs 40 Cr, within the overall sanctioned CC limit.

## 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.