Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 11.00 ACUITE B+ | Reaffirmed | Issuer not co-operating* -
Bank Loan Ratings 0.50 - ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 11.50 - -
 
Rating Rationale
­Acuité has reaffirmed the long-term rating of ‘ACUITE B+’ (read as ACUITE B Plus) and the short-term rating of ‘ACUITE A4’ (read as ACUITE A Four) on the Rs. 11.50 crore bank facilities Laxmi Narayan Kraft Industries (LNKI). The rating continues to be flagged as “Issuer Not Cooperating” and is based on the best available information.

About the Company
­Laxmi Narayan Kraft Industries (LNKI) is a Guwahati (Assam) based partnership concern promoted by Mr.Vivek Aggarwal, Mr.Basant Aggarwal and Mrs.Nisha Agarwal. The firm manufactures corrugated boxes from craft paper. The company has an installed capacity of 1600 tonnes per annum of corrugated paper. The company procures paper from local manufactures as well as from Uttar Pradesh. The credit period extended for the same is 30 days. Laxmi Narayan Industries Private Limited is a Private incorporated on 19 November 2013.  Apart from paper, the company requires glue which is manufactured in-house. The company primarily sells to FMCG, pharmaceutical companies such as ITC, Godrej, Dabur and HUL. The company enjoys location advantage- being located is Assam. FMCG companies in Assam enjoy 10 year tax soaps. 
 
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 noncooperation 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."
 
All Covenants
­Not Applicable
 
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 18 (Actual) FY 17 (Actual)
Operating Income Rs. Cr. 25.36 21.01
PAT Rs. Cr. 0.36 0.16
PAT Margin (%) 1.44 0.76
Total Debt/Tangible Net Worth Times 1.02 0.70
PBDIT/Interest Times 2.76 2.77
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
• Complexity Level Of Financial Instruments: https://www.acuite.in/view-rating-criteria-55.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
07 Jul 2022 Cash Credit Long Term 5.00 ACUITE B+ ( Issuer not co-operating*)
Bank Guarantee Short Term 0.50 ACUITE A4 ( Issuer not co-operating*)
Term Loan Long Term 1.00 ACUITE B+ ( Issuer not co-operating*)
Proposed Cash Credit Long Term 5.00 ACUITE B+ ( Issuer not co-operating*)
08 Apr 2021 Proposed Cash Credit Long Term 5.00 ACUITE B+ (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 5.00 ACUITE B+ (Downgraded and Issuer not co-operating*)
Bank Guarantee Short Term 0.50 ACUITE A4 (Downgraded and Issuer not co-operating*)
Term Loan Long Term 1.00 ACUITE B+ (Downgraded and Issuer not co-operating*)
09 Jan 2020 Proposed Cash Credit Long Term 5.00 ACUITE BB- ( Issuer not co-operating* & downgraded)
Term Loan Long Term 1.00 ACUITE BB- ( Issuer not co-operating* & downgraded)
Cash Credit Long Term 5.00 ACUITE BB- ( Issuer not co-operating* & downgraded)
Bank Guarantee Short Term 0.50 ACUITE A4+ (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 Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 0.50 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
Indian Bank Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 5.00 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*
Not Applicable Not Applicable Proposed Cash Credit Not Applicable Not Applicable Not Applicable 5.00 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*
Indian Bank Not Applicable Term Loan Not available Not available Not available 1.00 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*

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