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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 | 4.50 | - | ACUITE A4 | Reaffirmed | Issuer not co-operating* |
Total Outstanding | 11.50 | - | - |
Rating Rationale |
Acuité has downgraded the long-term rating to 'ACUITE B' (read as ACUITE B) from ‘ACUITE B+’ (read as ACUITE B plus) and reaffirmed the short-term rating of ‘ACUITE A4’ (read as ACUITE A four) on the Rs. 11.50 crore bank facilities of Balaji Rice Mill (Andhra Pradesh) on account of information risk. The rating continues to be flagged as “Issuer Not Co-operating” and is based on best available information. |
About the Company |
Established in 1983, as a partnership firm, Balaji Rice Mill (Andhra Pradesh) is engaged in processing of raw and boiled rice. Based in Palakollu (Andhra Pradesh), the entity is promoted by Mr. Jagannadha Raju, Mr. Rama Koti Raju, Mr. Dharma Raju and Mr. Ramachandra Raju. The entity has sortex and milling installed capacity of 150 Tons per Day (TPD). |
About the Group |
The group consists of Sri Satyalakshmi Rice Mill, Sri Jagannadha Surya Lakshmi Rice Mill and Balaji Rice Mill (Andhra Pradesh). Established in 1984, as a partnership firm, Sri Satyalakshmi Rice Mill is engaged in processing of raw and boiled rice. Based in Palakollu (Andhra Pradesh), the entity is promoted by Mr. Jagannadha Raju, Mr. Rama Koti Raju, Mr. Dharma Raju and Mr. Ramachandra Raju. The entity has sortex and milling installed capacity of 6 Tons per hour (TPH). Established in 1981, as a partnership firm, Sri Jagannadha Surya Lakshmi Rice Mill (SJSLRM) is engaged in processing of raw and boiled rice. Based in Palakollu (Andhra Pradesh), the entity is promoted by Mr. Jagannadha Raju, Mr. Rama Koti Raju, Mr. Dharma Raju and Mr. Ramachandra Raju. The entity has sortex and milling installed capacity of 6 Tons per hour (TPH). Established in 1983, as a partnership firm, Balaji Rice Mill (Andhra Pradesh) is engaged in processing of raw and boiled rice. Based in Palakollu (Andhra Pradesh), the entity is promoted by Mr. Jagannadha Raju, Mr. Rama Koti Raju, Mr. Dharma Raju and Mr. Ramachandra Raju. The entity has sortex and milling installed capacity of 150 Tons per Day (TPD). |
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. |
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 19 (Provisional) | FY 18 (Actual) |
Operating Income | Rs. Cr. | 63.46 | 55.99 |
PAT | Rs. Cr. | 0.10 | 0.06 |
PAT Margin | (%) | 0.16 | 0.11 |
Total Debt/Tangible Net Worth | Times | 1.54 | 1.23 |
PBDIT/Interest | Times | 1.14 | 1.12 |
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 • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.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. |
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