Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 17.00 ACUITE B | Downgraded | Issuer not co-operating* -
Total Outstanding 17.00 - -
 
Rating Rationale

­­Acuité has downgraded the long-term rating to ‘ACUITE B’ (read as ACUITE B) from 'ACUITE B+' (read as ACUITE B plus) on the Rs. 17.00 Crore bank facilities of KISAN AGRO PRODUCT INDUSTRIES (KAPI) 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

­Gujarat based Kisan Agro Product Industries (KAPI) was established in 1995 by Mr. Manu bhai Patel and is engaged in trading of various grades of Castor Oil and Caster seed Extraction. Procurement is done from its group company- Kisan Oleochem and Derivatives Private Limited and exports majorly to USA. Firm is being promoted by Mr. Manu bhai Patel, Mr. Shankar bhai Patel, Mr. Raman bhai Patel and Mrs. Hema ben Patel.

 
About the Group

­Kisan Agro group (KAG), based out of Gujarat, is engaged in extraction, refining and exporting of castor oil. Also, it is engaged in extracting solvent extraction from rapeseed. The castor oil is exported to foreign countries, including china, Iran, Iraq, Japan and many more. It is used in various industries to manufacture cosmetic products, paints, plastic products. The rapeseed de-oiled cakes are majorly used as feed in poultry. The raw material such as castor seeds and rapeseed cake are procured from APMC of Gujarat and local suppliers in Rajasthan, Madhya Pradesh and Haryana. The installed capacity for castor oil is around 350 MT per day utilized to the tune of around 250 MT per day. For rapeseed cake, the installed capacity is 250 MT per day and utilization is around 150 MT 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.

 
About the Rated Entity - Key Financials

­The rated entity has not shared the latest financial statements despite repeated requests.

 
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

 
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
• 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
• 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.

 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
19 Jun 2023 Cash Credit Long Term 5.00 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 2.00 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 10.00 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
08 Apr 2022 Cash Credit Long Term 5.00 ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB-)
Cash Credit Long Term 2.00 ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB-)
Cash Credit Long Term 10.00 ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB-)
06 Jan 2021 Cash Credit Long Term 5.00 ACUITE BB- (Downgraded & Issuer not co-operating* from ACUITE BB | Stable)
Cash Credit Long Term 2.00 ACUITE BB- (Downgraded & Issuer not co-operating* from ACUITE BB | Stable)
Cash Credit Long Term 10.00 ACUITE BB- (Downgraded & Issuer not co-operating* from ACUITE BB | Stable)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
Bank of Baroda Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE B+ )
Bank of Baroda Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.00 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE B+ )
The Mehsana Urban Cooperative Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE B | Downgraded | Issuer not co-operating* ( from ACUITE B+ )

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