­The Punjab-based LSREPL, established in 2008 by Directors, Mr. Sanjay Kumar Goel, Mr. Jeevan Kumar, Mr. Sunil Goel and others is engaged in the milling and processing of paddy to basmati rice. The company procures paddy rice from local farmers and mandis in Punjab. The manufacturing unit is located at Patiala and has a production capacity of 8 tonnes per hour.

­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.

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

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.