Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 50.00 ACUITE BB | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 5.00 - ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Total Outstanding 55.00 - -
 
Rating Rationale

­Acuité has downgraded the long term rating to ‘ACUITE BB’ (read as ACUITE Double B) from ‘ACUITE BB+’ (read as ACUITE double B plus) and reaffirmed the short term rating of ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs. 55.00 crore bank facilities of Ajit Singh Om Parkash Private Limited (ASOPL) on account of information risk. The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.


About the Company

­Ajit Singh Om Prakash Private Limited was incorporated in 31 March 1989 as a private limited company. However, before that they have started with a small shop back in 1958. A family owned company is engaged in grading and trading of pulses, edible oils, dry fruits and nuts and other grocery items. Company is selling its products under different 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. Directors of Ajit Singh Om Parkash Private Limited are Vinod Kumar, Gurcharan Dass, Rajan Arora, Parmod Kumar, Rahul Arora, Manik Arora, Ankit Arora, Shobhit Arora and Om Prakash. The main promoters of the company Mr Gurcharan Dass and Mr Om Prakash have an experience of more than 50 years in this line of business. Company has a grading and processing plants located at Nawanshahr, Punjab with a capacity of 200 Tonne Per Day and at Indore, Madhya Pradesh with a 30 Tonne Per Day.

 
Unsupported Rating

­Not Applicable

 
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 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 ratingis based.

 
Rating Sensitivity

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

 
Liquidity Position

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

 
Outlook

­Not Applicable

 
Other Factors affecting Rating

­None

 

Particulars Unit FY 23 (Actual) FY 22 (Actual)
Operating Income Rs. Cr. 275.60 273.76
PAT Rs. Cr. 2.19 2.43
PAT Margin (%) 0.79 0.89
Total Debt/Tangible Net Worth Times 3.55 3.75
PBDIT/Interest Times 1.98 2.20
Status of non-cooperation with previous CRA

­Not Applicable

 
Any other information

­None

 
Applicable Criteria
• Trading Entities: https://www.acuite.in/view-rating-criteria-61.htm
• 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

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.

 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
14 Apr 2023 Letter of Credit Short Term 5.00 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3)
Proposed Term Loan Long Term 0.58 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)
Term Loan Long Term 2.00 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)
Cash Credit Long Term 12.00 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)
03 Feb 2022 Cash Credit Long Term 12.00 ACUITE BBB- | Stable (Assigned)
Bills Discounting Long Term 5.00 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)
Term Loan Long Term 2.00 ACUITE BBB- | Stable (Assigned)
Letter of Credit Short Term 5.00 ACUITE A3 (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 BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
Punjab National Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
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 BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
Axis Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 12.00 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
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 | Issuer not co-operating*
Not Applicable Not avl. / Not appl. Proposed Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.58 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
HDFC Bank Ltd Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 4.72 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
Axis Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.00 Simple ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )

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