Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 48.00 ACUITE C | Downgraded | Issuer not co-operating* -
Total Outstanding 48.00 - -
 
Rating Rationale

­Acuité has downgraded the long-term rating to ‘ACUITE C’ (read as ACUITE C) from 'ACUITE B+' (read as ACUITE B Plus) on the Rs. 48.00 crore bank facilities of Rainbow Rice Private Limited (RRPL). The rating continues to be flagged as “Issuer Not Co-operating” and is based on the best available information.
The downgrade is based on delays being reflected in the CRIF highmark report and other publicly available information.


About the Company

­Incorporated in 2010, Rainbow Rice Private Limited (RRPL) is a Haryana-based company promoted by Mr. Sunil Kumar and Mr. Surinder Kumar. The company is engaged in the milling of rice and cotton seed crushing at Pehowa, Haryana. Rainbow Rice Private Limited (RRPL) has installed capacity of 12 tons per hour (tph) for rice milling and a sortex plant with capacity of 20 tph. The company has installed capacity for cotton seed crushing is 200 quintals per day.

 
Unsupported Rating

­Not Applicable

 
Non-cooperation by the issuer/borrower:

­­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.

 
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 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.

 
Rating Sensitivity

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

 
Liquidity Position

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

 
Outlook: Not Applicable
­
 
Other Factors affecting Rating
­None
 

Particulars Unit FY 23 (Actual) FY 22 (Actual)
Operating Income Rs. Cr. 0.00 14.23
PAT Rs. Cr. (7.49) (9.17)
PAT Margin (%) (151351.09) (64.44)
Total Debt/Tangible Net Worth Times (2.28) (2.81)
PBDIT/Interest Times 0.00 (1.28)
Status of non-cooperation with previous CRA

­Not Applicable

 
Any other information
­None
 
Applicable Criteria
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.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
01 Mar 2024 Cash Credit Long Term 40.00 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
Proposed Long Term Bank Facility Long Term 6.78 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 0.23 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 0.99 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
15 Dec 2022 Cash Credit Long Term 40.00 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
Proposed Long Term Bank Facility Long Term 6.78 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 0.23 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 0.99 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
21 Sep 2021 Cash Credit Long Term 45.00 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
Proposed Working Capital Demand Loan Long Term 0.45 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 0.59 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 1.96 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
Punjab National Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 40.00 Simple ACUITE C | Downgraded | Issuer not co-operating* ( from ACUITE B+ )
Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 6.78 Simple ACUITE C | Downgraded | Issuer not co-operating* ( from ACUITE B+ )
Punjab National Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.23 Simple ACUITE C | Downgraded | Issuer not co-operating* ( from ACUITE B+ )
Punjab National Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.99 Simple ACUITE C | Downgraded | Issuer not co-operating* ( from ACUITE B+ )

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