Press Release October 14, 2025 KPS AGRO PRODUCTS Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	24.00	ACUITE BB | Stable | Assigned	-
Bank Loan Ratings	4.00	-	ACUITE A4+ | Assigned
Total Outstanding	28.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­­­Acuite has assigned long term rating of 'ACUITE BB' (read as ACUITE double B) on the Rs. 24 Cr and short-term rating of 'ACUITE A4+' (read as ACUITE A four plus) on the Rs. 4 Cr bank facilities of KPS Agro Products. The outlook is 'stable'. Rationale for Rating: The rating takes into cognizance benefits derived by the business from the management, increasing revenues and operating profitability, moderate working capital and adequate liquidity. However, these strengths are partly offset by thin profitability margins and average financial risk profile.

About the Company

­­­West Bengal based, KPS Agro Products was established in 2020. The firm’s manufacturing unit is located at Tarkeshwar, West Bengal and has an installed capacity of 60,000 MTPA for processing wheat into maida, chakki atta, rawa and Suji among others. The partners of the firm are Mr. Surojit Saha, Mr. Sourendranath Saha, Mrs. Sonali Saha, Mrs. Bithika Saha and Mrs. Gauri Saha  The firm has started its commercial production from April 2023.

Unsupported Rating

­Not Applicable

Analytical Approach

­­­Acuite has taken standalone view of business and financial risk profile of KPS Agro Products.

Key Rating Drivers

Strengths

­­­Benefits derived from the management and clinetele base The operations of the firm are managed by Mr. Surojit Saha, Mr. Sourendranath Saha, Mrs. Sonali Saha, Mrs. Bithika Saha and Mrs. Gauri Saha. The customers of the firm are mostly through dealers and distributors but also includes institutional sales to Britannia Industries Limited and ITC Limited among others. Acuite believes that the experienced management and customer base will benefit the firm going forward. Steady Revenues and operating profitability The revenues have increased to Rs. 97.19 Cr as on March 31, 2025(Prov.) as compared to Rs. 63.41 Cr. as on March 31, 2024 on account of slightly better capacity utilization leading to higher quantity sold. The operating profitability has increased to 4.17 percent as on March 31, 2025(Prov.) as compared to 3.57 percent as on March 31, 2024 due to economies of scale. Acuite believes that the scale of operations of the firm are expected to remain steady over the medium term. Moderate Working Capital Cycle The operations of the firm have a moderate working capital requirement as reflected from Gross Current Assets of 86 days as on March 31, 2025(Prov.) as compared to 81 days as on March 31, 2024. The inventory days stood at 68 days as on March 31, 2025(Prov.) as compared to 45 days as on March 31,2024.  The debtor days stood at 18 days as on March 31, 2025 (Prov.) and March 31, 2024.  The creditor days stands at 8 days as on March 31, 2025(Prov.) as compared to 9 days as on March 31, 2024. Acuite believes that working capital requirements are expected to improve over the near to medium term on account of better inventory management.

Weaknesses

­­Average Financial Risk Profile The financial risk profile of the firm is average marked by low net worth, moderate gearing and comfortable debt protection metrics. The adjusted tangible net worth stood at Rs. 18.36 Cr as on March 31, 2025(Prov.) as compared to Rs. 16.89 Cr as on March 31,2024 due to infusion of capital and small accretion of profits. Acuite has considered unsecured loans of Rs. 7.57 Cr as quasi equity as on FY 2025(Prov.), as the same has been subordinated to bank loans. Adjusted Gearing stood at 1.26 times as on March 31, 2025(Prov.) compared to 1.12 times as on March 31,2024. The interest coverage ratio stood at 2.34 times as on March 31, 2025(Prov.) compared to 1.81 times as on March 31, 2024. The debt service coverage ratio stood stable at 1.33 times as on March 31, 2025(Prov.) as compared to 1.81 times as on March 31, 2024. The TOL/TNW stood at 1.39 times as on March 31, 2025(Prov.) as compared to 1.21 times as on March 31, 2024. Acuite believes that the firm’s financial risk profile will remain average in the near to medium term backed by steady cash accruals and absence of major debt funded capex plans Presence in a fragmented and highly competitive milling industry The nature of the product makes the industry highly fragmented, with numerous players operating in the unorganized sector with very less product differentiation. Furthermore, the concentration of millers around the growing regions makes the business intensely competitive.

Rating Sensitivities

­­­Movement in revenues and operating profitability Working Capital Cycle

Liquidity Position

Adequate

­­The liquidity is adequate marked by steady net cash accruals of Rs. 2.62 Cr as on March 31, 2025(Prov.) as against long term debt repayment of Rs. 1.49 Cr over the same period. The cash and bank balances stood at Rs. 0.38 Cr as on March 31,2025(Prov.) as compared to Rs. 2.62 Cr as on March 31, 2024.  The current ratio stood at 1.20 times as on March 31,2025(Prov.) as compared to 1.13 times as on March 31, 2024. The average bank limit utilization for twelve months ended, July 2025 is 85 percent.  Further, the promoters have demonstrated flexibility to infuse unsecured loan in the past as and when needed to support the growth in the business. Acuité believes that going forward the liquidity position of the firm will remain adequate in the near to medium term.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Provisional)	FY 24 (Actual)
Operating Income	Rs. Cr.	97.19	63.41
PAT	Rs. Cr.	0.05	(1.58)
PAT Margin	(%)	0.05	(2.49)
Total Debt/Tangible Net Worth	Times	1.26	1.12
PBDIT/Interest	Times	2.34	1.81

Status of non-cooperation with previous CRA (if applicable)

­None

Any other information

­None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm

Note on complexity levels of the rated instrument

­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History:Not Applicable

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Union Bank of India Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 4.00 Simple ACUITE A4+ | Assigned Union Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE BB | Stable | Assigned Not Applicable Not avl. / Not appl. Proposed Long Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.87 Simple ACUITE BB | Stable | Assigned Union Bank of India Not avl. / Not appl. Term Loan 27 Nov 2020 Not avl. / Not appl. 31 Dec 2028 6.06 Simple ACUITE BB | Stable | Assigned Union Bank of India Not avl. / Not appl. Term Loan 21 Mar 2023 Not avl. / Not appl. 31 Mar 2030 1.31 Simple ACUITE BB | Stable | Assigned Union Bank of India Not avl. / Not appl. Term Loan 27 Jul 2023 Not avl. / Not appl. 31 Mar 2030 0.76 Simple ACUITE BB | Stable | Assigned

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Vedika Lahoti Associate Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & 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. Acuité has assigned 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. Ratings assigned by Acuité 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. Ratings assigned by Acuité 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 rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating. Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.