Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 87.00 ACUITE BB+ | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 17.00 - ACUITE A4+ | Downgraded | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 104.00 - -
 
Rating Rationale
­Acuité has downgraded its long-term rating to ‘ACUITE BB+’ (read as ACUITE Double B 'Plus') from ACUITE BBB- (read as ACUITE triple B 'Minus') and short term rating to ‘ACUITE A4+’ (read as ACUITE A four 'plus') from ACUITE A3 (read as ACUITE A Three) on the Rs. 104.00 Cr bank facilities of PRESSANA FLOUR MILLS PRIVATE LIMITED (PFMPL).

 This rating is now an indicative rating and is based on the best available information. The rating has been downgraded on account of information risk

About the Company
­Incorporated in 2014, Pressana Flour Mills Private Limited (PFMPL) by Mr. Pollachi Srinivasan Senthil Kumar and his family members. The Company manufactures wheat products such as wheat flour (maida), unrefined wheat flour (atta), semolina (suji) and bran. The manufacturing facility is located at Coimbatore (Tamilnadu) with an installed wheat-grinding capacity of 300 MT/day. The company also trades in a large variety of agri produce such as pulses, and wheat-based products, Jaggery and salt, among others.
 
Non-cooperation by the issuer/borrower
­Acuité has been requesting for No Default Statements (NDS); however, despite multiple requests; the Company’s management has remained noncooperative and not submitted the NDS for the preceding 03 consecutive months. Acuité has also 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 has 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.
 
Rating Sensitivities
­No information provided by the issuer / available for Acuite to comment upon
 
Material Covenants
­None
 
Liquidity Position
­No information provided by the issuer / available for Acuite to comment upon
 
Outlook: Not applicable
­
 

Particulars Unit FY 22 (Provisional) FY 21 (Actual)
Operating Income Rs. Cr. 294.05 126.98
PAT Rs. Cr. 10.59 2.66
PAT Margin (%) 3.60 2.10
Total Debt/Tangible Net Worth Times 2.32 1.60
PBDIT/Interest Times 4.02 2.54
Status of non-cooperation with previous CRA
­None
 
Any other information
­Acuité is not in receipt of the “No Default Statement (NDS)" since May 2023
 
Applicable Criteria
• 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
­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 Proposed Bank Facility Long Term 2.77 ACUITE BBB- | Stable (Assigned)
Working Capital Term Loan Long Term 4.83 ACUITE BBB- | Stable (Assigned)
Cash Credit Long Term 30.00 ACUITE BBB- | Stable (Assigned)
Term Loan Long Term 9.40 ACUITE BBB- | Stable (Assigned)
Bank Guarantee Short Term 17.00 ACUITE A3 (Assigned)
Secured Overdraft Long Term 40.00 ACUITE BBB- | Stable (Assigned)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
CSB Bank Limited Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 17.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating*
CSB Bank Limited Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 30.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
CSB Bank Limited Not Applicable Covid Emergency Line. Not Applicable Not Applicable Not Applicable 4.83 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
Not Applicable Not Applicable Proposed Long Term Bank Facility Not Applicable Not Applicable Not Applicable 2.77 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
Standard Chartered Bank Not Applicable Secured Overdraft Not Applicable Not Applicable Not Applicable 40.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*
CSB Bank Limited Not Applicable Term Loan Not available Not available Not available 9.40 Simple ACUITE BB+ | Downgraded | Issuer not co-operating*

Contacts




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