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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 115.40 | ACUITE D | Downgraded | Issuer not co-operating* | - |
| Total Outstanding Quantum (Rs. Cr) | 115.40 | - | - |
| Rating Rationale |
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Acuite has downgraded its long-term rating to ‘ACUITE D' (read as ACUITE D) from Acuite BBB- (read as Acuite triple B minus) on the Rs. 115.40 Cr bank facilities of Pallishree Limited. The downgrade is on account of the feedback received from the banker that the account has been classified as NPA (Non Perfoming Asset).Furthermore, The rating is now flagged as “Issuer Not-Cooperating” as Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups, and based on the best available information.
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| About the Company |
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Pallishree Limited (PL) was founded in 1948 by late Balai Krishna Roy in Arambagh, West Bengal. Initially, the company traded in paddy and indigenous organic fertilizers in West Bengal and surrounding areas. In 1985, PL diversified into the business of research, production, and selling of high yielding variety (HYV) of hybrid pollinated seeds of various cereals (paddy, maize, wheat) and vegetables (potato, spinach etc). The company's Nursery and Horticulture division, established in the late 1980s, is engaged in facilitating the growth of quality medicinal and aromatic plants for landscaping and greening purposes. PL owns two nurseries in Arambagh and one in Bankura, all located in West Bengal. The company also has a small animal husbandry division that supplies dairy products. The company has a strong presence in the agriculture sector in Eastern India, with a focus on sustainable farming practices, research and development, and the production and marketing of quality seeds and organic products.
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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.
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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 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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| 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 |
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None
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| Key Financials: |
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The rated entity has not shared the latest financial statements despite repeated requests.
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| Status of non-cooperation with previous CRA |
| Care vide its press release dated 18th May 2023, had downgraded the company to CARE BB/Stable/A4; Issuer Not Cooperating. |
| 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 |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Complexity Level Of Financial Instruments: https://www.acuite.in/view-rating-criteria-55.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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