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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 7.15 | ACUITE B+ | Downgraded | Issuer not co-operating* | - |
| Total Outstanding Quantum (Rs. Cr) | 7.15 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 0.00 | - | - |
| Rating Rationale |
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Acuité has downgraded the long-term rating to ‘ACUITE B+’ (read as ACUITE single B Plus) from ‘ACUITE BB-’ (read as ACUITE double B minus) on the 7.15 crore bank facilities of Durrung Tea Estate Limited (erstwhile known as SPBP Tea (India) Limited).The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information. The rating is downgraded on the account of information risk.
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| About the Company |
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Incorporated in 1981, in the Darrang district of Assam, Durrung Tea Estate Limited (DTEL) is engaged in tea manufacturing and processing business. The company is part of the Jalan Industries Private Limited. The company mainly cultivates and manufactures orthodox tea (loose tea leaf) and curl tea (CTC), under the brand name ‘Durrung’. Durrung Tea estate spreads across 571 hectares of garden area with 390 hectares of plantation area.The Directors of Durrung Tea Estate Limited are Mr Dwija Das Chatterjee, Mr Mrityunjay Jalan, Mr Vadakkillam Satheesan Nayar and Ms Avantika Jalan.
Jalan group has many tea companies owned and operated by the Jalan family for four consecutive generations. Founded in 1939 by Mr. Murleidhor Jalan and presently they manage five tea estates in Upper Assam |
| Non-cooperation by the issuer/borrower: |
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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 noncooperation by the issuer along with an 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: |
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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.
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| About the Rated Entity - Key Financials |
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The rated entity has not shared the latest financial statements despite repeated requests.
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| Rating Sensitivity |
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"No information provided by the issuer / available for Acuite to comment upon."
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| Material Covenants |
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None
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| Liquidity Position |
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No information provided by the issuer / available for Acuité to comment upon.
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| Outlook |
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Not Applicable
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| Status of non-cooperation with previous CRA |
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None
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| Any other information |
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Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups.
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| Applicable Criteria |
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• 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 |
| https://www.acuite.in/view-rating-criteria-55.htm |
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