Press Release SHINGHAL AGRI INDUSTRIES PRIVATE LIMITED May 05, 2023 Rating Withdrawn

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	13.26	Not Applicable | Withdrawn	-
Total Outstanding Quantum (Rs. Cr)	0.00	-	-
Total Withdrawn Quantum (Rs. Cr)	13.26	-	-

Rating Rationale

Acuité has withdrawn the rating on the Rs.13.26 Cr bank facilities of Shinghal Agri Industries Private Limited (SAIPL). The rating has been withdrawn as per Acuite's policy of withdrawal of ratings. The withdrawal is on account of the request received from the company. The rating will be 'Not Applicable' for the withdrawn proposed limit.

About the Company

­Incorporated in 2013, Shinghal Agri Industries Private Limited (SAIPL) is based in Odisha and is engaged in the custom and open milling of paddy and processing of parboiled rice. The company is managed by Mr. Mukesh Kumar Dhandhania. SAIPL also trades the by-products of rice especially rice bran, non-edible rice and rice husk briquettes to various customers. The company is ISO 22000:2005 certified and is registered with Export Inspection Agency (EIA) and Food Safety Standard Authority of India (FSSAI).

Analytical Approach

Not Applicable

Key Rating Drivers

Strengths

Not Applicable

Weaknesses

Not Applicable

Rating Sensitivities

Not Applicable

Material covenants

­None

Liquidity Position

Not Applicable

Outlook

Not Applicable

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 22 (Actual)	FY 21 (Actual)
Operating Income	Rs. Cr.	14.40	14.32
PAT	Rs. Cr.	0.52	0.28
PAT Margin	(%)	3.63	1.97
Total Debt/Tangible Net Worth	Times	2.63	2.79
PBDIT/Interest	Times	2.38	1.81

Status of non-cooperation with previous CRA (if applicable)

­CARE, vide its press release dated 21/09/2022 had denoted the rating of Shinghal Agri Industries Private Limited as 'CARE B-/Stable/A4; ISSUER NOT COOPERATING’.

Any other information

­Not Applicable

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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.

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 01 Mar 2023 Proposed Bank Facility Long Term 13.26 ACUITE B+ | Stable (Reaffirmed) 18 Oct 2022 Cash Credit Long Term 1.50 ACUITE B+ ( Issuer not co-operating*) Working Capital Term Loan Long Term 0.56 ACUITE B+ ( Issuer not co-operating*) Term Loan Long Term 3.60 ACUITE B+ ( Issuer not co-operating*) Bank Guarantee Short Term 2.00 ACUITE A4 ( Issuer not co-operating*) Proposed Bank Guarantee Short Term 4.00 ACUITE A4 ( Issuer not co-operating*) Proposed Bank Facility Long Term 1.60 ACUITE B+ ( Issuer not co-operating*) 02 Aug 2021 Bank Guarantee Short Term 2.00 ACUITE A4 (Reaffirmed) Term Loan Long Term 0.66 ACUITE B+ (Withdrawn) Term Loan Long Term 3.60 ACUITE B+ | Stable (Upgraded from ACUITE B | Stable) Proposed Bank Guarantee Short Term 4.00 ACUITE A4 (Assigned) Working Capital Term Loan Long Term 0.56 ACUITE B+ | Stable (Upgraded from ACUITE B | Stable) Cash Credit Long Term 1.50 ACUITE B+ | Stable (Upgraded from ACUITE B | Stable) Proposed Bank Facility Long Term 1.60 ACUITE B+ | Stable (Assigned) 22 May 2020 Cash Credit Long Term 1.00 ACUITE B | Stable (Upgraded from ACUITE B- | Stable) Term Loan Long Term 0.66 ACUITE B | Stable (Upgraded from ACUITE B- | Stable) Term Loan Long Term 7.80 ACUITE B | Stable (Upgraded from ACUITE B- | Stable) Working Capital Term Loan Long Term 2.80 ACUITE B | Stable (Upgraded from ACUITE B- | Stable) Bank Guarantee Short Term 1.00 ACUITE A4 (Reaffirmed)

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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 Not Applicable Not Applicable Proposed Long Term Bank Facility Not Applicable Not Applicable Not Applicable 13.26 Simple Not Applicable|Withdrawn

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Contacts

Analytical	Rating Desk
Aditya Gupta Vice President-Rating Operations Tel: 022-49294041 aditya.gupta@acuite.in Geeta Karira Analyst-Rating Operations Tel: 022-49294065 geeta.karira@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.