Sambandam Spinning Mills Limited has notified the Bombay Stock Exchange regarding a credit rating downgrade for its bank loan and fixed deposit facilities. The rating revision was issued by Infomerics Valuation and Ratings Pvt. Ltd., New Delhi, dated February 4, 2026, pursuant to Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The company has now provided additional details regarding the reasons for the downgrade following BSE's request for clarification.

Credit Rating Downgrades

The rating agency has revised the company's credit ratings across multiple facility categories. The downgrades affect both bank facilities and fixed deposit arrangements, with the company maintaining stable outlook ratings despite the reductions.

Rating Agency's Rationale

Infomerics has provided detailed reasons for the rating downgrade in their latest communication. The downgrade takes into account the weak liquidity and debt protection metrics in FY25, despite improvement in operational performance. The rating continues to be constrained due to susceptibility of profitability to volatility in raw material prices, working capital intensive operations, and intense competition prevalent in the industry.

Supporting Factors

Despite the downgrade, the rating continues to derive support from several positive factors. These include the extensive experience of the promoters and management, an established track record of operations in the textile industry, and diversified geographical presence. The stable outlook indicates that while current metrics are weak, the fundamental business structure remains intact.

Regulatory Compliance and Communication

The company has fulfilled its disclosure obligations under SEBI regulations by informing the stock exchange about the credit rating changes. Following BSE's request for additional details regarding the reasons for downgrade, the company provided an addendum to their previous intimation dated February 5, 2026. The latest communication was signed by Company Secretary S. Natarajan on February 7, 2026, ensuring comprehensive compliance with regulatory requirements for listed companies.

Sambandam Spinning Mills Limited has announced that its Board of Directors will convene on February 14, 2026, to review and approve the company's unaudited financial results for the third quarter ended December 31, 2025. The meeting represents a key corporate governance milestone as the textile manufacturer prepares to disclose its quarterly performance.

Board Meeting Details

The board meeting will be conducted through video and other audio-visual means from the company's mill premises located in Kamaraj Nagar Colony, Salem, Tamil Nadu. The meeting has been scheduled in accordance with Regulation 29 and 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulation 2015.

Regulatory Compliance and Trading Window

In line with regulatory requirements, Sambandam Spinning Mills has implemented trading restrictions to ensure compliance with insider trading regulations. The company has announced that the trading window for dealing in its securities will remain closed until 48 hours after the declaration of quarterly results.

This closure applies to all specified persons mentioned in the company's code of conduct, which has been formulated in accordance with SEBI (Prohibition of Insider Trading) Regulations, 2015. The measure ensures that individuals with access to unpublished price-sensitive information cannot trade in the company's securities during the restricted period.

Communication and Transparency

The company has maintained transparency by notifying the Bombay Stock Exchange about the board meeting schedule. Additionally, the notice has been displayed on the company's official website to ensure wider accessibility for stakeholders and investors.

The formal communication was signed by S. Natarajan, Company Secretary, and submitted to the Deputy General Manager Listing at BSE with the company's scrip code 521240. This systematic approach to disclosure demonstrates the company's commitment to maintaining proper corporate governance standards and regulatory compliance.