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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 16.19 | ACUITE B+ | Downgraded | Issuer not co-operating* | - |
| Total Outstanding Quantum (Rs. Cr) | 16.19 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 0.00 | - | - |
| Rating Rationale |
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Acuité has downgraded its long-term rating from ‘ACUITE BB-’ (read as ACUITE Double B minus) to 'ACUITE B+' (read as ACUITE B Plus) on the Rs.16.19 Cr bank facilities of Mother India Agrofoods Private Limited (MIAPL). This rating is now an indicative rating and is based on best available information. Rating has been downgraded on account of information risk.
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| About the Company |
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Incorporated in 2013, MIAPL is a Patna based company promoted by Mr. Chandra Sen Singh and Mr. Ramjee Singh. The Company is engaged in milling and processing of non-basmati rice and its commercial operations began in 2016. MIAPL sells rice locally as well in states of West Bengal, Assam and Uttar Pradesh under its own brand- ‘Mother India’. The Company`s rice mill is set up in Patna, Bihar with an installed capacity of 8 Tons per hour and operates with around 160 employees.
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| Non-cooperation by the issuer/borrower |
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Acuité has been requesting for No Default Statement and other information critical for rating exercise from the rated entity. However, the issuer / borrower failed to submit such information before 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.
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| 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 endeavoured 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: |
| Not Applicable |
| Other Factors affecting Rating |
| None |
| Key Financials: |
| The rated entity has not shared the latest financial statements despite repeated attempts. |
| Status of non-cooperation with previous CRA |
| CRISIL Ratings vide its press release dated December 18, 2020 had denoted the rating of Mother India Agrofoods Private Limited as ‘CRISIL B+/Stable; ISSUER NOT COOPERATING’ |
| Any other information |
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The entity has not shared the latest No Default Statement despite repeated requests and followups.
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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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