Press Release RNP MARKETING AND CARGO PRIVATE LIMITED April 11, 2023 Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	70.00	ACUITE D | Downgraded | Issuer not co-operating*	-
Total Outstanding Quantum (Rs. Cr)	70.00	-	-

Rating Rationale

Acuité has downgraded the long term rating to 'ACUITE D'  (read as ACUITE D) from ‘ACUITE BB- (read as ACUITE double B minus) on the Rs.70.00 Cr bank facilities of RNP Marketing and Cargo Private Limited (RNP).  ­The rating is downgraded is on account of information risk required for review of ratings and on basis of publicly available information regarding delay in their repayments. An NCLT order was issued mentioning a petition filed by CFM Asset Reconstruction Private Limited (Financial Creditor) on account of non payment of dues. The rating continues to be an indicative rating and is based on the best available information.

About the Company

Mumbai based RNP was established in 2003 as a proprietorship concern with the business of logistic and transport services. Subsequently, its constitution changed into Private Limited in 2008. In FY 2013-2014, RNP started trading of food grains by virtue of its access and proximity to ports and warehouses in 2013-2014. Currently, RNP derives more than 90 percent of the revenue from trading business and rest is from logistic segment. The trading activities of the company encompass several products in food grains such as Tur dal, Wheat, Desi Bajra, Moong Dal and Chana Dal and Basmati Paddy Rice among others. RNP has also started new processing unit for cleaning sorting and grading of groundnuts in November 2018. The company is led by Mr. Piyush Joshi and Mr. Ramesh Gami.­

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 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 notcooperating”, 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.­

About the Rated Entity - Key Financials

The entity has not shared the latest financial statement despite repeated requests and followups.­

Rating Sensitivity

­­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

Other Factors affecting Rating

Not Applicable­

Status of non-cooperation with previous CRA

­Brtickworks vide its press release dated 6.4.2023, had downgraded the company to BWR D; INC

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

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.­

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 06 Sep 2022 Proposed Cash Credit Long Term 39.00 ACUITE BB- (Downgraded and Issuer not co-operating*) Cash Credit Long Term 31.00 ACUITE BB- (Downgraded and Issuer not co-operating*) 14 Jun 2021 Cash Credit Long Term 31.00 ACUITE BB (Downgraded and Issuer not co-operating*) Proposed Cash Credit Long Term 39.00 ACUITE BB (Downgraded and Issuer not co-operating*) 16 Mar 2020 Proposed Cash Credit Long Term 39.00 ACUITE BB+ (Downgraded and Issuer not co-operating*) Cash Credit Long Term 31.00 ACUITE BB+ (Downgraded and Issuer not co-operating*)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Federal Bank Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 31.00 Simple ACUITE D | Downgraded | Issuer not co-operating* Not Applicable Not Applicable Proposed Cash Credit Not Applicable Not Applicable Not Applicable 39.00 Simple ACUITE D | Downgraded | Issuer not co-operating*

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Contacts

Analytical	Rating Desk
Aditya Gupta Vice President-Rating Operations Tel: 022-49294041 aditya.gupta@acuite.in Abhishek Singh Analyst-Rating Operations Tel: 022-49294065 abhishek.s@acuite.in	Varsha Bist Senior Manager-Rating Operations Tel: 022-49294011 rating.desk@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai. Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité.