Brickwork Ratings India Pvt Ltd. : 23 January 2014 Brickwork Ratings assigns ‘BWR B’ for the Bank Loan Facilities aggregating Rs. 12.18 Cr of Shreyas Cottons Ginning & Pressing Factory

Rating Rationale

Brickwork Ratings assigns 'BWR B' for the Bank Loan Facilities aggregating ₹ 12.18 Cr of Shreyas Cottons Ginning & Pressing Factory

Brickwork Ratings has assigned the following Rating1 for the Long-Term Bank Loan
Facilities of Shreyas Cottons Ginning & Pressing Factory (SCGPF).

Facility	Limits (` Cr)	Tenure	Rating
Fund Based: Cash Credit (CC) Term Loan (TL)	9.00 3.18	Long Term	BWR B (Outlook: Stable)
Total	12.18	(INR Twelve Crores Eighteen Lakhs only)

BWR has relied upon the projected financials up to FY15 of SCGPF, publicly available information and the information/clarifications provided by the Company.
The rating, inter alia, factors the strong business track record of Geeta group in cotton ginning industry and vast experience of promoters of this group, where SCGPF is an associate firm. The ratings, however, are constrained due to very limited operating track record of the firm, relatively low net worth of the firm and moderate net worth of the group, high gearing levels of the group, and low profit margins.

Company Background and Operations

Shreyas Cottons Ginning & Pressing Factory (SCGPF) is a part of Geeta group. It is a newly established firm where operations started in December 2013. It has installed the cotton ginning & pressing facility of 5oo Bales per day.

Management Profile

The firm is a family run business and is headed by Mr. Akash Patel (age 23), MBA from Pune University. He has a share of 90% in the firm. His father Mr. Nagnath Patel is in the business of cotton ginning since last 30 years. Mr. Nagnath Patel established Geeta
Cotton Company (flagship firm of Geeta group) in the year 1983 and is presently called

1 Please refer to www.brickworkratings.comfor definition of the Ratings

www.brickworkratings.com 1 23 Jan 2014

as Geeta Cotton Company Pvt Ltd. Mrs. Shashikala Patil (relative of Mr. Akash Patel)
holds rest of the 10% in the firm.

Financial Performance

The firm is has only 2 months of operating track record and financial performance is not available.

Analyst Contact	Relationship Contact
[e-mail]	[e-mail]
Phone	Media Contact
1-860-425-2742	[e-mail]

Disclaimer: Brickwork Ratings (BWR) has assigned the rating based on the information obtained from the issuer and other reliable sources, which are deemed to be accurate. BWR has taken considerable steps to avoid any data distortion; however, it does not examine the precision or completeness of the information obtained. And hence, the information in this report is presented "as is" wit hout any express or implied warranty of any kind. BWR does not make any representation in respect to the truth or accuracy of any such information. The rating assigned by BWR should be treated as an opinion rather than a recommendation to buy, sell or hold the rated instrument and BWR shall not be liable for any losses incurred by users from any use of this report or its contents. BWR has the right to change, suspend or withdraw the ratings at any time for any reasons.

www.brickworkratings.com 2 23 Jan 2014