Dollar Industries Receives Credit Rating Reaffirmation from Acuite on Dec 18

Dollar Industries Limited , a prominent player in the Indian textile industry, has received formal reaffirmation of its credit ratings from Acuite Ratings Research Limited. The company disclosed this development to stock exchanges on December 18, pursuant to Regulation 30 of SEBI listing regulations.

Updated Credit Rating Details

Acuite Ratings has reaffirmed Dollar Industries' strong financial position across its bank facilities. The rating action covers an increased facility amount compared to previous assessments:

Instrument Type:	Amount (Rs. Crores)	Current Rating	Previous Rating	Action
Long-term instruments:	383.94	ACUITE AA- (Stable)	ACUITE AA- (Stable)	Reaffirmed
Short-term instruments:	0.73	ACUITE A1+	ACUITE A1+	Reaffirmed
Total Facilities:	384.67	-	-	-

Bank-wise Facility Breakdown

The reaffirmed ratings cover Dollar Industries' diversified banking relationships across major financial institutions:

Lender:	Facility Type	Amount (Rs. Crores)	Rating
State Bank of India:	Cash Credit	103.00	ACUITE AA- (Stable)
Qatar National Bank:	Cash Credit	55.00	ACUITE AA- (Stable)
HDFC Bank Limited:	Cash Credit	52.00	ACUITE AA- (Stable)
YES Bank Limited:	Cash Credit	45.00	ACUITE AA- (Stable)
HDFC Bank Limited:	Term Loan	33.94	ACUITE AA- (Stable)
Proposed Long Term:	Loan	24.00	ACUITE AA- (Stable)
ICICI Bank Limited:	Cash Credit	20.00	ACUITE AA- (Stable)

Financial Strength and Implications

The ACUITE AA- rating for long-term instruments indicates a high degree of safety regarding timely servicing of financial obligations, carrying very low credit risk. The ACUITE A1+ rating for short-term instruments suggests a very strong degree of safety and lowest credit risk.

The rating letter, issued on December 17 and valid until November 1, 2026, confirms the company's robust financial health. The stable outlook indicates that Dollar Industries is well-positioned to maintain its financial performance in the near to medium term.

Regulatory Compliance

Company Secretary Abhishek Mishra communicated the rating reaffirmation to both NSE and BSE, ensuring full compliance with disclosure requirements. The rating action reinforces Dollar Industries' strong market position in the textile industry and provides confidence to investors and lenders about the company's creditworthiness.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.69%	-3.86%	+1.72%	-6.42%	-25.47%	+47.84%

Dollar Industries , a prominent player in the Indian textile industry, has received a demand order from the Commercial Tax Officer in Tiruppur, Tamil Nadu. The order, which pertains to Input Tax Credit (ITC) availed and discrepancies claimed by the GST authority, amounts to Rs 10.95 lakhs, including GST, interest, and penalty.

Financial Impact and Company's Response

Despite the demand order, Dollar Industries has stated that there is no material impact on its financials or operations. The company plans to contest the order by filing an appeal under the GST Act before the Commissioner Appeals-GST Appellate Authority.

Key Details of the GST Demand Order

Aspect	Details
Issuing Authority	Commercial Tax Officer, Tiruppur, Tamil Nadu
Nature of Demand	ITC availed and discrepancies claimed
Financial Year	2021-22
Total Demand Amount	Rs 10.95 lakhs
Components	GST, Interest, and Penalty

Company's Financial Position

To put this demand in perspective, let's look at Dollar Industries' recent financial position:

Financial Metric	FY 2025 (in Rs crore)	YoY Change
Total Assets	1,476.10	9.62%
Current Assets	1,182.20	11.14%
Total Equity	859.80	9.70%
Current Liabilities	564.70	10.27%

Given these figures, the GST demand of Rs 10.95 lakhs (approximately Rs 0.11 crore) appears relatively small compared to the company's overall financial position. This aligns with the company's statement that the demand does not have a material impact on its financials or operations.

Conclusion

While Dollar Industries faces this GST demand, the company's strong financial position and its decision to appeal suggest that this development is unlikely to significantly affect its operations or market standing. Investors and stakeholders may want to monitor the appeal process and any potential outcomes, but the immediate financial impact appears limited based on the available information.

It's advisable for investors to consider such regulatory developments alongside broader financial metrics and industry trends when evaluating their investment decisions.