Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 12.50 ACUITE BB- | Reaffirmed | Issuer not co-operating* -
Bank Loan Ratings 0.50 - ACUITE A4+ | Reaffirmed | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 13.00 - -
 
Rating Rationale
­Acuité has reaffirmed the long-term rating of ‘ACUITE BB-’ (read as ACUITE dobule B minus) and its short-term rating of ‘ACUITE A4+’ (read as ACUITE A Four Plus) on the Rs.13.00 Crore bank facilities of RKBK Limited. The rating continues to be flagged as “Issuer Not-Cooperating” and is based on best available information.

About the Company
K­olkata based RKBK Limited, incorporated in 1976, is an authorized dealer of IOCL. The company deals in petroleum products through 80 depots and 16 petrol pumps in Utter Pradesh, Bihar and Jharkhand. It is also engaged in blending, packaging and selling of tea, tooth paste, detergent powder under the ‘Dinkar’ brand name. Directors of RKBK Limited are Brijendra Kumar Poddar, Chandra Kumar Kanoria, Krishna Neotia, Yashwardhan Poddar, Ashok Kumar Goel.
 
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.
 
Material Covenants
­Not Applicable
 
Liquidity Position
­No information provided by the issuer / available for Acuite to comment upon
 
Outlook
­Not Applicable
 
Other Factors affecting Rating
­Not Applicable
 

Particulars Unit FY 22 (Actual) FY 21 (Actual)
Operating Income Rs. Cr. 347.80 272.54
PAT Rs. Cr. 4.42 3.43
PAT Margin (%) 1.27 1.26
Total Debt/Tangible Net Worth Times 0.00 0.00
PBDIT/Interest Times 22.33 38.73
Status of non-cooperation with previous CRA
­Not Applicable
 
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
• Trading Entities: https://www.acuite.in/view-rating-criteria-61.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
27 May 2022 Bank Guarantee Short Term 0.50 ACUITE A4+ ( Issuer not co-operating*)
Cash Credit Long Term 12.50 ACUITE BB- (Downgraded and Issuer not co-operating*)
22 Feb 2021 Cash Credit Long Term 12.50 ACUITE BB (Downgraded and Issuer not co-operating*)
Bank Guarantee Short Term 0.50 ACUITE A4+ (Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
State Bank of India Not Applicable Bank Guarantee/Letter of Guarantee Not Applicable Not Applicable Not Applicable 0.50 Simple ACUITE A4+ | Reaffirmed | Issuer not co-operating*
State Bank of India Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 12.50 Simple ACUITE BB- | Reaffirmed | Issuer not co-operating*

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