August 31, 2023

Shell Apparels Private Limited: Continues to remain under issuer non-Cooperating

category
Summary of rating action

Previous Rated Current Rated

Instrument^ Amount Amount Rating Action
(Rs. crore) (Rs. crore)
Long Term- Fund 15.00 15.00 [ICRA]B+ (Stable); ISSUER NOT COOPERATING*; Rating
Based-Cash Credit Continues to remain under issuer not cooperating category
Long Term- Fund 8.14 8.14 [ICRA]B+ (Stable); ISSUER NOT COOPERATING*; Rating
Based-Term Loan Continues to remain under issuer not cooperating category
Long Term-Non Fund 2.01 2.01 [ICRA]B+ (Stable); ISSUER NOT COOPERATING*; Rating
Based Continues to remain under issuer not cooperating category
Total 25.15 25.15
*Issuer did not cooperate; based on best available information.
^Instrument details are provided in Annexure-1

Rationale
ICRA has retained the Long-term ratings of Shell Apparels Private Limited in the ‘Issuer Not Cooperating’ category. The rating
is denoted as “[ICRA]B+ (Stable); ISSUER NOT COOPERATING”.

ICRA has been trying to seek information from the entity so as to monitor its performance, Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee that became due. but despite repeated requests by ICRA, the
entity’s management has remained non-cooperative. The current rating action has been taken by ICRA basis best
available/dated/ limited information on the issuers’ performance. Accordingly, the lenders, investors and other market
participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the
credit risk profile of the entity. The rating action has been taken in accordance with ICRA’s policy in respect of non-cooperation
by a rated entity available at [Link].

Please refer to the following link for the previous detailed rationale that captures the Key rating drivers and their description,
Liquidity position, Rating sensitivities, Key Financial Indicator: Click here. ICRA is unable to provide the latest information
because of non-cooperation by the entity.

Analytical approach

Analytical Approach Comments

Policy in respect of non-cooperation by the rated entity
Applicable Rating Methodologies Corporate Credit Rating Methodology
Rating Methodology-Textiles (Apparels)
Parent/Group Support Not Applicable
Consolidation/Standalone Standalone

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 About the company
Shell Apparels Private Limited (“SAPL” / “the Company”) headquartered in Bangalore is primarily engaged into manufacturing
of knitted garments. Promoted by Mr. Vasuki in the year 1988 as Shell Sands – a proprietorship firm, Shell Sands was initially
engaged into manufacturing of shell moldings catering to industrial and engineering companies like Bharat Heavy Electricals
Ltd. etc for shell mold castings. However, in 1994 with an objective of foraying into garment industry the promoters changed
the name of the firm to Shell Apparels – in line with the nature of business and started stitching on job works basis. As per
management, the Company was one of the first few garment manufacturing units selected by M/s Arvind Mills Limited for
stitching of Denim Jeans for its popular brands Flying Machine and New Port University. With growing experience and track
record with Arvind, the Company added new customers and in turn brought numerous brands like Ruggers, Wranglers,
Excaliber, Arrow, Lee etc (on job work basis) under its portfolio. With increasing volume of orders, a new company Shell
Apparels Private Limited was incorporated in 2003 and the Company started taking complete manufacturing orders (on fob
basis) in order to further enhance credentials as a reliable garment manufacturing company rather than just a convertor (job
worker) aiding its revenue growth over last several years.

Status of non-cooperation with previous CRA:

CRA Status Date of Release

India Rating [IND]BB+/A4+ ISSUER NOT COOPERATING July 13, 2021

Any other information: None

Rating history for past three years

Chronology of Rating History
Current Rating (FY2024)
for the past 3 years
Amount Date & Rating in Date & Rating in Date & Rating in
Instrument Amount Date & Rating in
Rated FY2023 FY2022 FY2020
Type Outstanding
(Rs. 17-June-2022 23-April-2021 28-January-2020
Crore)
(Rs. Crore) 31-August-2023

1 Cash Credit Long 15.00 - [ICRA]B+ (Stable); [ICRA]B+ (Stable); [ICRA]B+ (Stable); [ICRA]B+ (Stable);
Term ISSUER NOT ISSUER NOT ISSUER NOT ISSUER NOT
COOPERATING COOPERATING COOPERATING COOPERATING
2 Term Loan Long 8.14 - [ICRA]B+ (Stable); [ICRA]B+ (Stable); [ICRA]B+ (Stable); [ICRA]B+ (Stable);
Term ISSUER NOT ISSUER NOT ISSUER NOT ISSUER NOT
COOPERATING COOPERATING COOPERATING COOPERATING
3 Non Fund Long 2.01 - [ICRA]B+ (Stable); [ICRA]B+ (Stable); [ICRA]B+ (Stable); [ICRA]B+ (Stable);
Based Term ISSUER NOT ISSUER NOT ISSUER NOT ISSUER NOT
COOPERATING COOPERATING COOPERATING COOPERATING

Complexity level of the rated instrument

Instrument Complexity Indicator

Cash Credit Simple
Term Loan Simple
Non Fund Based Very Simple
The Complexity Indicator refers to the ease with which the returns associated with the rated instrument could be estimated.
It does not indicate the risk related to the timely payments on the instrument, which is rather indicated by the instrument’s
credit rating. It also does not indicate the complexity associated with analysing an entity’s financial, business, industry risks or
complexity related to the structural, transactional, or legal aspects. Details on the complexity levels of the instruments, is
available on ICRA’s website: Click Here

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 Annexure-1: Instrument details
Amount
ISIN Date of Issuance / Coupon Maturity
Instrument Name Rated Current Rating and Outlook
No Sanction Rate Date
(RS Crore)
Cash Credit 15.00 [ICRA]B+ (Stable); ISSUER
NA - - -
NOT COOPERATING
Term Loan 8.14 [ICRA]B+ (Stable); ISSUER
NA - - -
NOT COOPERATING
Non Fund Based 2.01 [ICRA]B+ (Stable); ISSUER
NA - - -
NOT COOPERATING
Source: Shell Apparels Private Limited

Annexure-2: List of entities considered for consolidated analysis: Not Applicable

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 ANALYST CONTACTS
Jayanta Roy Subhechha Banerjee
+91 33-71501100 +91 33 7150 1130
jayanta@[Link] [Link]@[Link]

Susmita Biswas
+91-033 7150 1182
[Link]@[Link]

RELATIONSHIP CONTACT
L. Shivakumar
+022-61693300
shivakumar@[Link]

MEDIA AND PUBLIC RELATIONS CONTACT

Ms. Naznin Prodhani
Tel: +91 124 4545 860
communications@[Link]

Helpline for business queries

+91-9354738909 (open Monday to Friday, from 9:30 am to 6 pm)

info@[Link]

About ICRA Limited:

ICRA Limited was set up in 1991 by leading financial/investment institutions, commercial banks and financial services
companies as an independent and professional investment Information and Credit Rating Agency.

Today, ICRA and its subsidiaries together form the ICRA Group of Companies (Group ICRA). ICRA is a Public Limited Company,
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Moody’s Investors Service is ICRA’s largest shareholder.

For more information, visit [Link]

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