CARE has assigned ‘BB’ and ‘A4’ ratings to Super Spinning Mills’ Rs 36.95 crore long-term and Rs 66 crore worth short term bank facilities, respectively. Further, the credit rating agency has assigned ‘BB/ A4’ rating for company’s long/short-term bank facilities, aggregating to the worth of Rs 110.36 crore.
The ratings assigned are constrained by the stressed financial risk profile of Super Spinning Mills (SSML) characterized by high leverage and weak debt protection metrics, evidencing the highly working capital intensive nature of operations, SSML’s tight liquidity position borne out of significant losses in FY12 (refers to the period April 1, 2011 and March 31, 2012) and the vulnerability of operating margins to volatility in cotton yarn prices.
SSML has presence across various industries including textiles, building products, compressors and textile machinery. The company is engaged in cotton yarn spinning with an installed capacity of 1, 65,984 spindles and 1,200 rotors as on March 31, 2012. SSML manufactures cotton yarn in the range of 24s to 120’s counts. SSML also has marginal presence in knitting and weaving segments. The company owns 7 windmills, with an aggregate capacity of 3.70 megawatt (MW) as on March 31, 2012.