Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 5.00 ACUITE BB | Reaffirmed | Issuer not co-operating* -
Bank Loan Ratings 32.50 - ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 37.50 - -
 
Rating Rationale

­Acuité has reaffirmed the long term rating of ‘ACUITE BB’ (read as ACUITE Double BB ) and reaffirmed the Short term rating of ACUITE A4+’ (read as ACUITE A four Plus) on the Rs. 37.50 crore bank facilities of Balaji Agro Private Limited. The rating continues to be flagged as “Issuer Not Cooperating” and is based on the best available information.


About the Company

­­Incorporated in 2000 by Mr. Nand Kishore Agarwal and Mr. Raju Agarwal, Balaji Agro Private Limited (BAPL), a Kolkata-based company is engaged in the blending and export of tea under the brand names ‘Meri Chai’ and ‘Popular’. The company has two blending units at Maheshtala and Khiderpore (West Bengal) with combined installed capacity of 1 crore kg of tea per annum. Company is also engaged into warehouse rental business as it lease out its warehouses to reputed clients such as Bharti Airtel Ltd, V-guards industries Pvt Ltd, among others.

 
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 (inthe 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."­

 
All Covenants

­None

 
Liquidity Position

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

 
Outlook

­Not Applicable

 
Other Factors affecting Rating

­Not Applicable

 

Particulars Unit FY 22 (Actual) FY 21 (Actual)
Operating Income Rs. Cr. 267.57 268.38
PAT Rs. Cr. 6.33 7.86
PAT Margin (%) 2.37 2.93
Total Debt/Tangible Net Worth Times 1.03 1.50
PBDIT/Interest Times 2.31 2.29
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
• 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
11 Aug 2022 Bills Discounting Short Term 6.00 ACUITE A4+ ( Issuer not co-operating*)
Letter of Credit Short Term 2.00 ACUITE A4+ ( Issuer not co-operating*)
Proposed Bank Facility Short Term 0.50 ACUITE A4+ ( Issuer not co-operating*)
Secured Overdraft Long Term 4.80 ACUITE BB (Downgraded and Issuer not co-operating*)
Proposed Bank Facility Long Term 0.20 ACUITE BB (Downgraded and Issuer not co-operating*)
Packing Credit Short Term 24.00 ACUITE A4+ ( Issuer not co-operating*)
14 May 2021 Packing Credit Short Term 24.00 ACUITE A4+ (Downgraded and Issuer not co-operating*)
Proposed Bank Facility Short Term 0.50 ACUITE A4+ (Downgraded and Issuer not co-operating*)
Bills Discounting Short Term 6.00 ACUITE A4+ (Downgraded and Issuer not co-operating*)
Proposed Bank Facility Long Term 0.20 ACUITE BB+ (Downgraded and Issuer not co-operating*)
Letter of Credit Short Term 2.00 ACUITE A4+ (Downgraded and Issuer not co-operating*)
Secured Overdraft Long Term 4.80 ACUITE BB+ (Downgraded and Issuer not co-operating*)
19 Feb 2020 Proposed Bank Facility Short Term 0.50 ACUITE A3 (Reaffirmed)
Term Loan Long Term 4.80 ACUITE BBB- | Stable (Assigned)
Proposed Bank Facility Long Term 0.20 ACUITE BBB- | Stable (Assigned)
Letter of Credit Short Term 2.00 ACUITE A3 (Reaffirmed)
Packing Credit Short Term 24.00 ACUITE A3 (Reaffirmed)
Bills Discounting Short Term 6.00 ACUITE A3 (Reaffirmed)
02 Jan 2020 Letter of Credit Short Term 2.00 ACUITE A3 (Upgraded from ACUITE A4+)
Proposed Packing Credit Short Term 0.50 ACUITE A3 (Upgraded from ACUITE A4+)
Packing Credit Short Term 24.00 ACUITE A3 (Upgraded from ACUITE A4+)
Bills Discounting Short Term 6.00 ACUITE A3 (Upgraded from ACUITE A4+)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Punjab National Bank Not Applicable Bills Discounting Not Applicable Not Applicable Not Applicable 6.00 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Punjab National Bank Not Applicable Letter of Credit Not Applicable Not Applicable Not Applicable 2.00 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Punjab National Bank Not Applicable PC/PCFC Not Applicable Not Applicable Not Applicable 24.00 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Not Applicable Not Applicable Proposed Long Term Bank Facility Not Applicable Not Applicable Not Applicable 0.20 Simple ACUITE BB | Reaffirmed | Issuer not co-operating*
Not Applicable Not Applicable Proposed Short Term Bank Facility Not Applicable Not Applicable Not Applicable 0.50 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Axis Bank Not Applicable Secured Overdraft Not Applicable Not Applicable Not Applicable 4.80 Simple ACUITE BB | Reaffirmed | Issuer not co-operating*

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