Rating Rationale

June 17, 2014

Mumbai

Gangotri Textiles Ltd.

Rating Suspended

Total Bank Loan Facilities Rated	Rs.2950.2 Million
Long Term Rating	Suspended

(Refer to Annexure 1 for Facility-wise details)

CRISIL has suspended its ratings on the bank facilities of Gangotri Textiles Ltd (GTL). The suspension of ratings is on account of non-cooperation by GTL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, GTL is yet to provide adequate information to enable CRISIL to assess GTL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'

About the Company

GTL was set up by Mr. Manoj Kumar Tibrewal in 1989. It spins open-ended and ring-spun yarn, besides manufacturing fabric and garments for the domestic market under the brand name, Tibre.

Annexure 1 - Details of various bank facilities

Current facilities			Previous facilities
Facility	Amount (Rs.Million)	Rating	Facility	Amount (Rs.Million)	Rating
Cash Credit	176	Suspended	Cash Credit	176	CRISIL D
Long Term Loan	2237.9	Suspended	Long Term Loan	2237.9	CRISIL D
Working Capital Term Loan	536.3	Suspended	Working Capital Term Loan	536.3	CRISIL D
Total	2950.2	--	Total	2950.2	--

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Last updated: May, 2013

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June 17, 2014	http://www.crisil.com