Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 7.00 ACUITE B+ | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 7.00 - ACUITE A4 | Downgraded | Issuer not co-operating*
Total Outstanding 14.00 - -
 
Rating Rationale

­Acuité has downgraded the long-term rating to 'ACUITE B+' (read as ACUITE B plus) from ‘ACUITE BB-’ (read as ACUITE double B minus) and the short-term rating to 'ACUITE A4' (read as ACUITE A four) from ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs.14.00 crore bank facilities of Baghmari Tea Company Limited (BTCL). The rating continues to be flagged as “Issuer Not-Cooperating” and is downgraded on account of information risk.


About the Company

­Baghmari Tea Company Limited (­BTCL), based at Kolkata, was incorporated in 1918. The business is led by the directors of the company, Mr. Anand Bajoria, Mr. Dhruv Bajoria, Mr. Rajendra Bajoria, Mr. Golam Momen, Mr. Shakti Khaitan and Mrs. Shobha Bajoria. The company is engaged in the manufacturing and blending of tea at its own tea garden spread across 520 hectares in Upper Assam. The installed capacity stands at 16 lakh kg of CTC tea per anum.

 
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 rating is 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. 37.02 27.22
PAT Rs. Cr. 0.18 (1.92)
PAT Margin (%) 0.49 (7.05)
Total Debt/Tangible Net Worth Times (81.99) (44.97)
PBDIT/Interest Times 1.56 0.18
Status of non-cooperation with previous CRA
­Not Applicable
 
Any other information
­None
 
Applicable Criteria
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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
28 Mar 2023 Cash Credit Long Term 7.00 ACUITE BB- (Reaffirmed & Issuer not co-operating*)
PC/PCFC Short Term 7.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
28 Dec 2021 Cash Credit Long Term 7.00 ACUITE BB- (Reaffirmed & Issuer not co-operating*)
PC/PCFC Short Term 7.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
Indian Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 7.00 Simple ACUITE B+ | Downgraded | Issuer not co-operating* ( from ACUITE BB- )
Indian Bank Not avl. / Not appl. PC/PCFC Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 7.00 Simple ACUITE A4 | Downgraded | Issuer not co-operating* ( from ACUITE A4+ )
­

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