PR

Press Release
NAXALBARI FLOUR AND RICE MILL PRIVATE LIMITED
April 08, 2022
Rating Reaffirmed and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	0.60	-	ACUITE A4 \| Reaffirmed \| Issuer not co-operating*
Bank Loan Ratings	11.00	ACUITE B+ \| Reaffirmed \| Issuer not co-operating*	-
Total Outstanding Quantum (Rs. Cr)	11.60	-	-
Total Withdrawn Quantum (Rs. Cr)	0.00	-	-

# Refer Annexure for details

* The issuer did not co-operate; Based on best available information.

Rating Rationale

Acuité has reaffirmed the long-term rating of ‘ACUITE B+’ (read as ACUITE B plus) and the short term rating of ‘ACUITE A4’ (read as ACUITE A four) on the Rs. 11.60 crore bank facilities of Naxalbari Flour & Rice Mill Private Limited (NFRMPL). The rating continues to be flagged as “Issuer Not-Cooperating” and is based on best available information.

About the Company

Naxalbari Flour and Rice Mill Private Limited was incorporated in 2012 as a West Bengal-based company. However, it started its commercial operations in June 2014. The company is engaged in processing of nonbasmati parboiled rice and has a manufacturing facility at Naxalbari, Darjeeling (West Bengal) with a processing capacity of 13 tonnes per hour. The day-to-day operations of the company is managed by Mr. Manish Rungta.

Non-cooperation by the issuer/borrower:

Acuité has been requesting for data, information and undertakings from the rated entity for conducting surveillance & review of the rating. However, the issuer / borrower failed to submit such information before the due date.
Acuité believes that information risk is a critical component in such ratings, and non-cooperation by the issuer along with an unwillingness to provide information could be a sign of potential deterioration in its overall credit quality.
This rating is therefore being flagged as “Issuer not-cooperating”, in line with prevailing SEBI regulations and Acuité’s policies.

Limitation regarding information availability:

The rating is based on information available from sources other than the issuer/borrower (in the absence of information provided by the issuer/borrower). Acuité endeavored to gather information about the entity/industry from the public domain. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit rating is based.

About the Rated Entity - Key Financials

The rated entity has not shared the latest financial statements despite repeated requests.

Rating Sensitivity

No information provided by the issuer / available for Acuite to comment upon.

Material Covenants

Not Applicable

Liquidity Indicators

No information provided by the issuer / available for Acuite to comment upon.

Outlook

Not Applicable

Status of non-cooperation with previous CRA

Not Applicable

Any other information

Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups.

Applicable Criteria

• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm

Rating History

Date	Name of Istruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
05 Jan 2021	Proposed Bank Facility	Long Term	1.21	ACUITE B+ (Downgraded and Issuer not co-operating*)
	Cash Credit	Long Term	6.00	ACUITE B+ (Downgraded and Issuer not co-operating*)
	Term Loan	Long Term	3.79	ACUITE B+ (Downgraded and Issuer not co-operating*)
	Bank Guarantee	Short Term	0.60	ACUITE A4 (Downgraded and Issuer not co-operating*)
11 Oct 2019	Term Loan	Long Term	3.79	ACUITE BB- (Issuer not co-operating*)
	Bank Guarantee	Short Term	0.60	ACUITE A4+ (Issuer not co-operating*)
	Cash Credit	Long Term	6.00	ACUITE BB- (Issuer not co-operating*)
	Proposed Bank Facility	Long Term	1.21	ACUITE BB- (Issuer not co-operating*)
02 Aug 2018	Cash Credit	Long Term	6.00	ACUITE BB- \| Stable (Reaffirmed)
	Term Loan	Long Term	3.79	ACUITE BB- \| Stable (Reaffirmed)
	Proposed Bank Facility	Long Term	1.21	ACUITE BB- \| Stable (Reaffirmed)
	Bank Guarantee	Short Term	0.60	ACUITE A4+ (Reaffirmed)
29 May 2017	Cash Credit	Long Term	4.00	ACUITE BB- \| Stable (Assigned)
	Term Loan	Long Term	5.35	ACUITE BB- \| Stable (Assigned)
	Proposed Long Term Loan	Long Term	1.65	ACUITE BB- \| Stable (Assigned)
	Bank Guarantee	Short Term	0.60	ACUITE A4+ (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Rating
Union Bank of India	Not Applicable	Bank Guarantee (BLR)	Not Applicable	Not Applicable	Not Applicable	0.60	ACUITE A4 \| Reaffirmed \| Issuer not co-operating*
Union Bank of India	Not Applicable	Cash Credit	Not Applicable	Not Applicable	Not Applicable	6.00	ACUITE B+ \| Reaffirmed \| Issuer not co-operating*
Not Applicable	Not Applicable	Proposed Long Term Bank Facility	Not Applicable	Not Applicable	Not Applicable	1.21	ACUITE B+ \| Reaffirmed \| Issuer not co-operating*
Union Bank of India	Not Applicable	Term Loan	Not available	Not available	Not available	3.79	ACUITE B+ \| Reaffirmed \| Issuer not co-operating*

About Acuité Ratings & Research

Acuité Ratings & Research Limited is a full-service Credit Rating Agency registered with the Securities and Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI), for Bank Loan Ratings under BASEL-II norms in the year 2012. Since then, it has assigned more than 8,850 credit ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Acuité ratings are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind arising from the use of its ratings. Acuité ratings are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in)for the latest information on any instrument ratedby Acuité.