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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 90.00 | ACUITE BB | Downgraded | Issuer not co-operating* | - |
| Bank Loan Ratings | 10.00 | - | ACUITE A4+ | Reaffirmed | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 100.00 | - | - |
| Rating Rationale |
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Acuité has downgraded its long term rating to 'ACUITE BB' (read as ACUITE Double B) from 'ACUITE BB+' (read as ACUITE Double B plus) and reaffirmed its short term rating at 'ACUITE A4+' (read as ACUITE A four plus) on Rs. 100.00 Cr bank facilities of Valency Agro Private Limited (erstwhile Nikhil Mercantile Private Limited). The rating is now flagged as “Issuer Not-Cooperating” as Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups, and based on the best available information.
The rating has been downgraded on account of information risk. |
| About the Company |
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Incorporated in 2007, Valency Agro Private Limited (erstwhile Nikhil Mercantile Private Limited) is based in Udupi, Karnataka and is engaged in the processing of cashew nuts along with the trading of raw cashew nuts (RCN), soy beans and other agro products. The company has an installed capacity of 40 metric tonne per day. NMPL is headed by Mr. Sumit Jain, Mr. Basba Nand Balodi and Mr. Nitesh Patwari. The company has been taken over by Valency International Pte Ltd. (VIPL) with 100 per cent holding in February 2018.
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| Non-cooperation by the issuer/borrower |
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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 not-cooperating”, in line with prevailing SEBI regulations and Acuité’s policies.
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| Limitation regarding information availability |
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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.
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| Rating Sensitivities |
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No information provided by the issuer / available for Acuité to comment upon.
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| All Covenants |
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None
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| Liquidity Position |
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No information provided by the issuer / available for Acuité to comment upon.
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| Outlook |
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Not Applicable
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| Other Factors affecting Rating |
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None
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| Particulars | Unit | FY 22 (Actual) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 302.21 | 198.21 |
| PAT | Rs. Cr. | 4.42 | 2.28 |
| PAT Margin | (%) | 1.46 | 1.15 |
| Total Debt/Tangible Net Worth | Times | 0.69 | 0.33 |
| PBDIT/Interest | Times | 5.32 | 11.05 |
| Status of non-cooperation with previous CRA |
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Not Applicable
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| Any other information |
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None
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| Applicable Criteria |
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• 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 |
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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
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