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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 38.00 | ACUITE BB+ | Downgraded | Issuer not co-operating* | - |
| Total Outstanding Quantum (Rs. Cr) | 38.00 | - | - |
| Rating Rationale |
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Acuité has downgraded the long term rating to 'ACUITE BB+' (read as ACUITE double B plus) from ‘ACUITE BBB-’ (read as ACUITE triple B minus) on the Rs.38.00 Cr. bank facilities of Moreish Foods Limited (MFL).
The rating is now flagged as “Issuer NotCooperating” and is based on the best available information. The rating has been downgraded on account of information risk. |
| About the Company |
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Incorporated in 1998, Moreish Foods Limited (MFL) is promoted by Mr. Narendra Kumar of Ranchi, Jharkhand. The company is engaged in manufacturing and selling of bakery products such as bread, cakes and cookies under its own brand name Moreish. MFL has five manufacturing units at Ranchi, Patna, Asansol, Howrah and Bhubaneshwar. The company operates in consumer segment through its network of distributors and retailers, besides catering to institutional customers. It has tied up with Big Basket, Easyday, Grofers, Spencers, Reliance Retail, Big Bazar, More and other prominent retail stores across Eastern India besides institutional tie-ups with Hospitals, Corporate Clubs, Indian Railways, etc.
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| 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 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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| Rating Sensitivities |
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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 Acuite to comment upon.
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| Outlook |
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Not Applicable
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 21 (Actual) | FY 20 (Actual) |
| Operating Income | Rs. Cr. | 106.81 | 92.99 |
| PAT | Rs. Cr. | 2.13 | 1.09 |
| PAT Margin | (%) | 1.99 | 1.17 |
| Total Debt/Tangible Net Worth | Times | 0.79 | 1.68 |
| PBDIT/Interest | Times | 3.17 | 2.28 |
| Status of non-cooperation with previous CRA |
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Crisil vide its press release dated 30.03.2023, had reaffirmed the company to CRISIL BB/ Stable; Issuer Not Cooperating
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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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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm |
| Note on Complexity Levels of the Rated Instrument |
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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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