Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 42.42 ACUITE B+ | Upgraded & Withdrawn -
Bank Loan Ratings 7.58 Not Applicable | Withdrawn -
Bank Loan Ratings 5.00 - ACUITE A4 | Reaffirmed & Withdrawn
Total Outstanding 0.00 - -
Total Withdrawn 55.00 - -
 
Rating Rationale

­Acuite has upgraded and withdrawn its long term rating to 'ACUITE B+' (read as ACUITE B Plus) from 'ACUITE C' (read as ACUITE C) and reaffirmed and withdrawn its short term rating of 'ACUITE A4' (read as ACUITE A Four) on the Rs.47.42 Cr. bank facilities of Ajit Singh Om Parkash Private Limited (ASOPL).
The rating is being withdrawn on account of request received from the company, and NOC (No Objection Certificate) received from the banker.

Further, Acuité has also withdrawn its rating on the proposed long-term facilities of Rs.7.58 Cr. of Ajit Singh Om Parkash Private Limited without assigning any rating as it is a proposed facility. The rating has been withdrawn on account of the request received from the company.

The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective facility / instrument.

Rationale for Upgrade
The rating upgrade and migration from 'Issuer non cooperating’ takes into account the company meeting the curing period criteria post the reported delay in debt servicing as per the Credit Bureau Information Report (CRIF). Further, the rating factors in its moderate financial risk profile along with its established track record of operations and extensive experience of its promoters. The rating, however, is constrained on account of stagnant operating revenues, working capital intensive nature of operations and susceptibility of profitability to fluctuations in raw material prices.

About the Company

Ajit Singh Om Parkash Private Limited was incorporated on 31 March 1989 as a private limited company. However, before that they have started with a small shop back in 1958. The company is engaged in grading and trading of pulses, edible oils, dry fruits and nuts and other grocery items. The company sells its products under various brand names, like Pulses, Rice, Edible oils and many other grocery items are sold in the Brand name of A Plus, Century and Angan whereas dry fruits and nuts are sold in the brand name of Nuts About You. The main promoters of the company are Mr. Gurcharan Dass and Mr. Rahul Arora.
 
Unsupported Rating

­Not Applicable
 
Analytical Approach

­Acuité has considered the standalone business and financial risk profile of Ajit Singh Om Parkash Private Limited to arrive at this rating.
 
Key Rating Drivers

Strengths

Established track record of operations and extensive experience of the promoters
Incorporated in 1989, Ajit Singh Om Parkash Private Limited (ASOPL) has an established track record of operations of more than three decades in the industry. The company provides a range of products sold under different brand names through various supermarket stores and e-commerce like Metro, Walmart, Amazon and Flipkart. The promoters of the company have an experience of more than 50 years in this line of business. The established track record of ASOPL and extensive experience of the promoters aid the company to maintain a strong and long relation with its customers and suppliers.

Moderate financial risk profile
The company's financial risk profile stood moderate marked by low networth, high gearing and moderate debt protection metrics. The net worth of the company stood at Rs. 21.07 Cr. as on March 31st, 2024, as against Rs. 18.82 Cr. as on March 31st, 2023, due to accretion of profits to reserve. The total debt of the company stood at Rs. 71.34 Cr. as on March 31, 2024, as against Rs. 70.87 Cr. as on March 31, 2023. The debt profile of the company comprises of Rs. 6.13 Cr. of long-term debt, Rs. 47.35 Cr. of short-term debt, Rs.13.26 Cr. of unsecured loans from promoters and Rs. 4.60 Cr. of current portion of long-term debt. The gearing of the company stood at 3.39 times as on March 31, 2024, as compared to 3.77 times as on March 31, 2023. The TOL/TNW of the company stood at 4.09 times as on March 31, 2024, as against 4.52 times as on March 31,2023. Further, the debt protection metrics of the company stood moderate reflected by debt service coverage ratio of 1.03 times for FY2024 as against 1.09 times for FY2023. Further, the interest coverage ratio stood at 1.79 times for FY24 as against 1.98 times for FY23. 


Weaknesses

Stagnant scale of operations and moderation in profitability
The company's revenue remained stagnant and stood at Rs.272.31 Cr. in FY2024, compared to Rs.275.66 Cr. in FY2023, due to unchanged installed capacity leading to stagnant sales volume. In FY25(E), the company has achieved a revenue of Rs.274.30 Cr. However, the operating profit margin marginally increased to 3.90 percent in FY2024 as compared to 3.42 percent in FY2023. The PAT margin stood at 0.83 percent in FY2024 compared against 0.79 percent in FY2023.

­Intensive nature of working capital operations:
The working capital operations of the ASOPL are intensive marked by high GCA (Gross Current Assets) of 124 days in FY2024 as against 117 days in FY2023. The high GCA days are primarily on account of high inventory levels. The inventory days stood at 95 days in FY2024 as against 92 days in FY2023. The debtor days stood at 30 days in FY2024 compared to 25 days in FY2023. The creditor days of the company stood at 20 days in FY24 compared against 19 days in FY23. Furthermore, the consolidated average utilization for fund-based limits remained on higher side, averaging around ~98.72% over the last five months ending Mar 2025.

Rating Sensitivities

­Not Applicable
 
Liquidity Position
Stretched

The company’s cash accruals remained tightly matched with its repayment obligations in FY2024 with net cash accruals of Rs. 4.23 Cr. as against its maturing debt repayment obligations of Rs.3.97 Cr. during the same period. The cash and bank balances stood at Rs. 0.35 Cr. as on March 31, 2024. The current ratio stood at 1.39 times as on March 31, 2024, as against 1.44 times as on March 31, 2023.
Further, the working capital management of the company is intensive in nature marked by high Gross Current Assets (GCA) of 124 days in FY2024, with high reliance on working capital limits with consolidated average fund-based limit utilisation of ~98.72 percent in the last five months ended Mar 2025.
 
Outlook: Not Applicable
­
 
Other Factors affecting Rating
­None
 

Particulars Unit FY 24 (Actual) FY 23 (Actual)
Operating Income Rs. Cr. 272.31 275.66
PAT Rs. Cr. 2.25 2.19
PAT Margin (%) 0.83 0.79
Total Debt/Tangible Net Worth Times 3.39 3.77
PBDIT/Interest Times 1.79 1.98
Status of non-cooperation with previous CRA (if applicable)
­Not Applicable
 
Interaction with Audit Committee anytime in the last 12 months (applicable for rated-listed / proposed to be listed debt securities being reviewed by Acuite)
Not applicable
Any other information
None­
 
Applicable Criteria
• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Trading Entities: https://www.acuite.in/view-rating-criteria-61.htm
Note on complexity levels of the rated instrument

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
01 Apr 2025 Letter of Credit Short Term 5.00 ACUITE A4 (Downgraded & Issuer not co-operating* from ACUITE A4+)
Cash Credit Long Term 10.70 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BB)
Term Loan Long Term 4.72 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BB)
Cash Credit Long Term 12.00 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BB)
Bills Discounting Long Term 5.00 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BB)
Term Loan Long Term 2.00 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BB)
Cash Credit Long Term 15.00 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BB)
Proposed Term Loan Long Term 0.58 ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BB)
10 Jul 2024 Letter of Credit Short Term 5.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 12.00 ACUITE BB (Downgraded & Issuer not co-operating* from ACUITE BB+)
Bills Discounting Long Term 5.00 ACUITE BB (Downgraded & Issuer not co-operating* from ACUITE BB+)
Term Loan Long Term 2.00 ACUITE BB (Downgraded & Issuer not co-operating* from ACUITE BB+)
Cash Credit Long Term 15.00 ACUITE BB (Downgraded & Issuer not co-operating* from ACUITE BB+)
Cash Credit Long Term 10.70 ACUITE BB (Downgraded & Issuer not co-operating* from ACUITE BB+)
Term Loan Long Term 4.72 ACUITE BB (Downgraded & Issuer not co-operating* from ACUITE BB+)
Proposed Term Loan Long Term 0.58 ACUITE BB (Downgraded & Issuer not co-operating* from ACUITE BB+)
14 Apr 2023 Letter of Credit Short Term 5.00 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3)
Cash Credit Long Term 12.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable)
Bills Discounting Long Term 5.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable)
Term Loan Long Term 2.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable)
Cash Credit Long Term 15.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable)
Cash Credit Long Term 10.70 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable)
Term Loan Long Term 4.72 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable)
Proposed Term Loan Long Term 0.58 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable)
03 Feb 2022 Letter of Credit Short Term 5.00 ACUITE A3 (Assigned)
Cash Credit Long Term 12.00 ACUITE BBB- | Stable (Assigned)
Bills Discounting Long Term 5.00 ACUITE BBB- | Stable (Assigned)
Term Loan Long Term 2.00 ACUITE BBB- | Stable (Assigned)
Cash Credit Long Term 15.00 ACUITE BBB- | Stable (Assigned)
Cash Credit Long Term 10.70 ACUITE BBB- | Stable (Assigned)
Term Loan Long Term 4.72 ACUITE BBB- | Stable (Assigned)
Proposed Long Term Loan Long Term 0.58 ACUITE BBB- | Stable (Assigned)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)		 Complexity Level Rating
Axis Bank Not avl. / Not appl. Bills Discounting Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE B+ | Upgraded & Withdrawn ( from ACUITE C )
Punjab National Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE B+ | Upgraded & Withdrawn ( from ACUITE C )
HDFC Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.70 Simple ACUITE B+ | Upgraded & Withdrawn ( from ACUITE C )
Axis Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE B+ | Upgraded & Withdrawn ( from ACUITE C )
HDFC Bank Ltd Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE A4 | Reaffirmed & Withdrawn
Not Applicable Not avl. / Not appl. Proposed Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 7.58 Simple Not Applicable|Withdrawn
HDFC Bank Ltd Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 15 Feb 2025 4.72 Simple ACUITE B+ | Upgraded & Withdrawn ( from ACUITE C )
Axis Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 28 Jan 2026 2.00 Simple ACUITE B+ | Upgraded & Withdrawn ( from ACUITE C )

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